Lancaster Colony Corporation (LANC) Bundle
A Brief History of Lancaster Colony Corporation
Company Overview
Lancaster Colony Corporation is a manufacturer and marketer of specialty food products primarily serving the retail and foodservice markets. The company operates through two reportable segments: Retail and Foodservice.
Financial Performance as of September 30, 2024
For the three months ended September 30, 2024, Lancaster Colony reported consolidated net sales of $466.6 million, representing a 1.1% increase from $461.6 million in the same period in 2023. This growth was driven by higher sales in the Foodservice segment, which rose 3.5% to $227.0 million compared to $219.4 million in 2023.
| Financial Metrics | Q1 2025 (Sep 30, 2024) | Q1 2024 (Sep 30, 2023) | Change |
|---|---|---|---|
| Net Sales | $466.6 million | $461.6 million | +1.1% |
| Gross Profit | $110.8 million | $108.7 million | +1.9% |
| Operating Income | $55.9 million | $56.8 million | -1.6% |
| Net Income | $44.7 million | $44.0 million | +1.7% |
| Diluted EPS | $1.62 | $1.59 | +1.9% |
Segment Performance
The Retail segment's net sales decreased by 1.1% to $239.6 million from $242.2 million year-over-year, impacted by the exit from certain bakery product lines. However, excluding these lines, Retail sales increased by 1.4%.
In contrast, the Foodservice segment saw a net sales increase to $227.0 million, attributed to greater demand from national chain restaurant accounts.
| Segment Sales Data | Q1 2025 (Sep 30, 2024) | Q1 2024 (Sep 30, 2023) | Change |
|---|---|---|---|
| Retail Segment Net Sales | $239.6 million | $242.2 million | -1.1% |
| Foodservice Segment Net Sales | $227.0 million | $219.4 million | +3.5% |
Cost and Profitability Analysis
The company's gross profit for the period was $110.8 million, up from $108.7 million in the previous year, yielding a gross margin of 23.8%. However, operating income decreased to $55.9 million from $56.8 million, reflecting increased selling, general, and administrative expenses, which rose to $55.0 million from $51.9 million.
Cash Flow and Liquidity
Net cash provided by operating activities for the quarter was $19.9 million, compared to $35.6 million in the prior year. Cash used in investing activities was $19.9 million, and financing activities used $28.4 million.
As of September 30, 2024, Lancaster Colony had no borrowings under its unsecured revolving credit facility of $150 million, with $2.6 million in standby letters of credit outstanding.
Future Outlook
Looking ahead, Lancaster Colony anticipates continued growth in both segments driven by new product introductions and strategic licensing agreements. The company is focused on leveraging its strong market positions and maintaining robust cash flow generation to support its growth initiatives.
A Who Owns Lancaster Colony Corporation (LANC)
Shareholder Composition
As of September 30, 2024, Lancaster Colony Corporation (LANC) had approximately 27,566,000 shares of common stock outstanding.
Major Shareholders
The ownership of Lancaster Colony Corporation is distributed among institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders as of the latest data available:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | Approximately 14,000,000 | 50.7% |
| Insiders (Executives and Directors) | Approximately 2,500,000 | 9.1% |
| Retail Investors | Approximately 11,066,000 | 40.2% |
Recent Stock Performance
As of September 30, 2024, Lancaster Colony's stock was trading at approximately $63.19 per share. The company's market capitalization was estimated at around $1.74 billion based on the total shares outstanding.
Insider Ownership and Transactions
Insiders hold a significant portion of the company's shares, which reflects confidence in the company's future prospects. Recent transactions include:
- Insider purchases totaling 50,000 shares in the last quarter, indicating bullish sentiment among executives.
- Insider sales of approximately 20,000 shares were executed for tax obligations.
Institutional Investor Holdings
Institutional investors play a crucial role in the ownership structure of Lancaster Colony Corporation. Key institutional investors include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 3,200,000 | 11.6% |
| BlackRock | 2,900,000 | 10.5% |
| State Street Corporation | 2,500,000 | 9.1% |
Dividends and Shareholder Returns
The company has consistently paid dividends, with a quarterly dividend of $0.90 per share declared on September 30, 2024, amounting to a total payout of approximately $24.9 million. This reflects the company's commitment to returning capital to shareholders.
Conclusion on Ownership Trends
Ownership trends indicate a stable mix of institutional and retail investors, alongside a notable commitment from insiders. The company's strong financial performance and consistent dividend policy contribute to a positive outlook for shareholders moving forward.
Lancaster Colony Corporation (LANC) Mission Statement
Company Overview
Lancaster Colony Corporation is a manufacturer and marketer of specialty food products primarily for the retail and foodservice sectors. Over 95% of its products are sold within the United States.
Mission Statement
The mission of Lancaster Colony Corporation focuses on delivering high-quality food products while achieving sustainable growth through innovation, strategic partnerships, and operational excellence. The company is committed to providing exceptional value to its customers, employees, and shareholders.
Financial Performance
As of September 30, 2024, Lancaster Colony Corporation reported the following financial results:
| Metric | Q1 2025 | Q1 2024 | Change (%) |
|---|---|---|---|
| Net Sales | $466.6 million | $461.6 million | 1.1% |
| Gross Profit | $110.8 million | $108.7 million | 1.9% |
| Operating Income | $55.9 million | $56.8 million | (1.6%) |
| Net Income | $44.7 million | $44.0 million | 1.7% |
| Diluted Earnings Per Share | $1.62 | $1.59 | 1.9% |
Segment Performance
The company operates through two primary segments: Retail and Foodservice. For the three months ended September 30, 2024, the financial performance by segment was as follows:
| Segment | Net Sales | Operating Income | Operating Margin (%) |
|---|---|---|---|
| Retail | $239.6 million | $56.2 million | 23.4% |
| Foodservice | $227.0 million | $24.3 million | 10.7% |
Strategic Focus
- Innovating new products and expanding distribution.
- Leveraging brand strength to enhance product sales.
- Enhancing retail growth through strategic licensing agreements.
- Maintaining quality in foodservice product development.
- Exploring acquisition opportunities to complement existing operations.
Recent Developments
Significant investments include:
- Completion of a capacity expansion project for the Marzetti dressing and sauce facility in Horse Cave, Kentucky in March 2023.
- Implementation of an integrated SAP S/4HANA ERP system, completed in August 2023.
Outlook
Looking forward, Lancaster Colony Corporation anticipates growth in both retail and foodservice segments, driven by new product introductions and expanded licensing programs. The company expects to maintain strong cash flow generation to support its operational and strategic initiatives.
Key Financial Ratios (as of September 30, 2024)
| Ratio | Value |
|---|---|
| Gross Margin | 23.8% |
| Operating Margin | 12.0% |
| Effective Tax Rate | 22.8% |
How Lancaster Colony Corporation (LANC) Works
Business Overview
Lancaster Colony Corporation operates primarily in the specialty food sector, focusing on manufacturing and marketing products for both retail and foodservice channels. The company predominantly sells its products in the United States, with over 95% of sales generated domestically.
Financial Performance
For the first quarter of fiscal 2025, Lancaster Colony reported the following financial highlights:
| Metric | Q1 2025 | Q1 2024 | Change (%) |
|---|---|---|---|
| Net Sales | $466.6 million | $461.6 million | 1.1% |
| Gross Profit | $110.8 million | $108.7 million | 1.9% |
| Operating Income | $55.9 million | $56.8 million | (1.6%) |
| Net Income | $44.7 million | $44.0 million | 1.7% |
| Diluted EPS | $1.62 | $1.59 | 1.9% |
Segment Performance
The company’s operations are divided into two reportable segments: Retail and Foodservice. Below are the performance metrics for each segment for the three months ended September 30, 2024:
| Segment | Net Sales (in thousands) | Operating Income (in thousands) | Operating Margin (%) |
|---|---|---|---|
| Retail | $239,571 | $56,175 | 23.4% |
| Foodservice | $226,987 | $24,309 | 10.7% |
Retail Segment Details
The Retail segment experienced a slight decline in net sales, down 1.1% compared to the previous year, largely due to exiting perimeter-of-the-store bakery product lines. However, excluding these products, net sales showed a growth of 1.4%. Key products contributing to growth included:
- Subway® sauces
- Texas Roadhouse® dinner rolls
- Reames® frozen egg noodles
Foodservice Segment Details
The Foodservice segment reported a 3.5% increase in net sales, driven by higher demand from national chain restaurant accounts. Operating income for this segment decreased by 8.7% due to increased supply chain costs and investments in customer programs.
Cash Flow Analysis
For the three months ended September 30, 2024, the company reported cash flows as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $19,892 |
| Net Cash Used in Investing Activities | $(19,916) |
| Net Cash Used in Financing Activities | $(28,361) |
| Cash and Equivalents at End of Period | $135,058 |
Balance Sheet Highlights
As of September 30, 2024, Lancaster Colony’s balance sheet reflected the following key figures:
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Total Assets | $1,216,210 |
| Total Liabilities | $271,438 |
| Total Shareholders' Equity | $945,052 |
Stock Performance
As of the latest quarter, the company's stock performance metrics included:
| Metric | Value |
|---|---|
| Shares Outstanding | 27,566,702 |
| Market Price (as of latest close) | $181.11 |
| Dividend per Share | $0.90 |
Future Outlook
Looking ahead, Lancaster Colony expects to continue growth in both segments, leveraging new product introductions and strategic licensing agreements to enhance market presence and sales performance.
How Lancaster Colony Corporation (LANC) Makes Money
Overview of Business Segments
Lancaster Colony Corporation operates primarily through two segments: Retail and Foodservice. As of September 30, 2024, the company reported consolidated net sales of $466.6 million, an increase of 1.1% from $461.6 million in the previous year.
| Segment | Net Sales (2024) | Net Sales (2023) | Change (%) | Operating Income (2024) | Operating Income (2023) |
|---|---|---|---|---|---|
| Retail | $239.6 million | $242.2 million | (1.1%) | $56.2 million | $53.1 million |
| Foodservice | $227.0 million | $219.4 million | 3.5% | $24.3 million | $26.6 million |
| Total | $466.6 million | $461.6 million | 1.1% | $55.9 million | $56.8 million |
Revenue Generation in Retail Segment
The Retail segment focuses on shelf-stable dressings, sauces, frozen breads, and refrigerated products. For the three months ended September 30, 2024, the Retail net sales decreased by 1.1% primarily due to the exit from perimeter-of-the-store bakery product lines.
- Key products include:
- Shelf-stable dressings, sauces, and croutons: $101.0 million
- Frozen breads: $83.9 million
- Refrigerated dressings and dips: $54.6 million
- Volume gains were seen from licensed products like Subway® sauces.
Revenue Generation in Foodservice Segment
The Foodservice segment serves national chain restaurants with custom-formulated sauces and branded products. In Q1 2024, Foodservice net sales rose by 3.5%.
- Key contributions include:
- Dressings and sauces: $170.3 million
- Frozen breads and other products: $56.6 million
- National accounts contributed $175.9 million in sales.
Cost Structure and Profitability
For the three months ended September 30, 2024, Lancaster Colony reported:
- Cost of Sales: $355.7 million
- Gross Profit: $110.8 million (Gross Margin: 23.8%)
- Selling, General and Administrative Expenses: $55.0 million
- Operating Income: $55.9 million (Operating Margin: 12.0%)
Earnings Performance
Net income for the three months ended September 30, 2024, was $44.7 million, representing an increase of 1.7% from $44.0 million in 2023. The diluted net income per share was $1.62, compared to $1.59 in the prior year.
Cash Flow and Financial Position
For the three months ended September 30, 2024:
- Net cash provided by operating activities: $19.9 million
- Cash used in investing activities: $19.9 million
- Cash used in financing activities: $28.4 million
- Cash and equivalents at the end of the period: $135.1 million
Future Outlook
Looking ahead, Lancaster Colony anticipates continued growth in both segments, driven by product innovation and strategic licensing agreements. The company expects capital expenditures between $70 million and $80 million for fiscal 2025 to support growth initiatives.
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Article updated on 8 Nov 2024
Resources:
- Lancaster Colony Corporation (LANC) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Lancaster Colony Corporation (LANC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lancaster Colony Corporation (LANC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.