Lancaster Colony Corp (LANC) Reports 8.5% Increase in Q1 Sales, Net Income Rises to $1.59 per Share
Consolidated net sales for Q1 increased by 8.5% to a record $461.6 million.
Retail and Foodservice segments both saw an 8.5% and 8.4% increase in net sales respectively.
Net income rose to $1.59 per diluted share, up from $1.36 per diluted share last year.
Consolidated operating income increased by 15.2% to $56.8 million.
On November 2, 2023, Lancaster Colony Corp (NASDAQ:LANC) released its earnings report for the fiscal first quarter ended September 30, 2023. The company reported an 8.5% increase in consolidated net sales, reaching a record $461.6 million. This growth was driven by an 8.5% increase in Retail segment net sales and an 8.4% increase in Foodservice segment net sales.
Financial Highlights
Lancaster Colony Corp (NASDAQ:LANC) reported a consolidated gross profit increase of 9.8% to $108.7 million. The company's consolidated operating income also saw a significant increase, rising by 15.2% to $56.8 million. Net income was reported at $1.59 per diluted share, a notable increase from the $1.36 per diluted share reported last year.
CEO David A. Ciesinski commented on the company's performance, stating,
We were very pleased to complete the quarter with record sales and higher profits."
He attributed the growth in the Retail segment to the strong performance of their licensed dressings and sauces program and the solid quarter for their New York BRAND Bakery frozen garlic bread products.
Looking Ahead
Looking forward to the fiscal second quarter, the company expects Retail sales to continue benefiting from their expanding licensing program, including incremental growth from new products, flavors, and sizes introduced in fiscal 2023. Despite high input costs, the company does not anticipate a significant impact from inflationary costs in the upcoming quarter versus the prior-year period.
Financial Statements Summary
According to the company's condensed consolidated statements of income, net sales for the three months ended September 30, 2023, were $461.6 million, up from $425.5 million in 2022. The cost of sales also increased to $352.8 million from $326.4 million. The company's net income rose to $43.9 million, up from $37.6 million in the same period last year.
The company's balance sheet as of September 30, 2023, showed total assets of $1.13 billion, up from $1.11 billion as of June 30, 2023. Total liabilities and shareholders' equity also increased to $1.13 billion from $1.11 billion.
Overall, Lancaster Colony Corp (NASDAQ:LANC) demonstrated strong financial performance in the first quarter, with record sales and increased profits. The company's strategic investments and successful product lines have contributed to this positive financial growth.
Explore the complete 8-K earnings release (here) from Lancaster Colony Corp for further details.
This article first appeared on GuruFocus.
