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Lancaster Colony Corporation (LANC+7.00%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $509.3 million from $485.9 million in the same quarter the previous year. This growth is attributed to higher sales volumes in both the Retail and Foodservice segments.
Retail segment net sales increased by 6.3% to $280.8 million, driven by growth in licensing programs and brand sales, despite the exit from certain bakery product lines.
Foodservice segment net sales grew by 3.0% to $228.5 million, supported by increased demand from national chain restaurant customers.
Operating income for the quarter was $75.7 million, up from $65.8 million in the previous year, with the increase driven by higher sales volumes and favorable sales mix.
The company incurred a one-time noncash pension settlement charge of $14.0 million due to the termination of its pension plan.
Net income for the quarter was $49.0 million, down from $51.5 million in the previous year, impacted by the pension settlement charge.
Cash provided by operating activities was $127.5 million for the six months ended December 31, 2024, compared to $141.5 million in the prior year.
Lancaster Colony plans to acquire a sauce and dressing production facility in Atlanta, Georgia, for $75 million in cash, with the transaction expected to close in the fiscal third quarter.
Looking ahead, the company anticipates continued growth in Retail sales from licensing programs and innovation, while Foodservice sales are expected to benefit from increased demand from national chain restaurant accounts.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lancaster Colony Corporation quarterly 10-Q report dated February 4, 2025. To report an error, please email earnings@qz.com.