NASDAQ$MZTI

Marzetti Company/The · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Lancaster Colony reported record sales, driven by retail segment growth and inflationary pricing in the foodservice segment, but experienced a decline in operating income due to higher costs.

Lancaster Colony reported a 12.3% increase in consolidated net sales to a record $392.1 million for the first quarter. The retail segment saw a 15.6% sales increase, while the foodservice segment grew by 8.1%. However, consolidated operating income declined by $8.4 million to $40.5 million due to increased costs.

  • Consolidated net sales increased 12.3% to a first quarter record of $392.1 million.
  • Retail segment net sales grew 15.6% to $223.9 million, driven by licensing programs and frozen garlic bread.
  • Foodservice segment net sales advanced 8.1% to $168.2 million, driven by inflationary pricing and volume growth.
  • Consolidated operating income declined $8.4 million to $40.5 million due to higher costs.

Headline financials

Total Revenue

$392M

Previous: $349M+12.3%
EPS (adj)

$1.11

Previous: $1.35-17.8%
Capital Expenditures

-$30.2M

Previous: -$14.4M-109.7%
Free Cash Flow

$428K

Previous: $22.7M-98.1%
Net Income

$30.7M

Previous: $37.1M-17.3%
Operating Income

$40.5M

Previous: $48.9M-17.2%
Gross Profit

$92.4M

Previous: $92.7M-0.3%
Cash & Equivalents

$130M

Previous: $186M-30.1%
Total Assets

$1.12B

Previous: $1.02B+8.9%
Stock-Based Comp

$2.27M

No prior period

Revenue & EPS history

Lancaster Colony · Revenue · Quarterly

$392M

Q1 2022+12.3%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Lancaster Colony · $392M total across 2 segments · Q1 2022

  • Retail
    $224M+15.6%
  • Foodservice
    $168M+8.1%

Forward guidance

Looking ahead to the fiscal second quarter, Lancaster Colony anticipates continued growth in the retail segment from its licensing program and sustained demand in the foodservice segment. The company expects the inflationary environment to persist, with higher commodity, packaging, freight, and labor costs. Pricing actions and cost savings programs are expected to partially offset these unfavorable impacts.

Tailwinds

  • Licensing program to remain an important source of growth for Retail segment sales.
  • Foodservice segment should continue to benefit from higher demand for branded Foodservice products.
  • Growth from select quick-service restaurant and pizza chain customers in our mix of national chain restaurant accounts.
  • Inflationary pricing in both Retail and Foodservice segments will help to partially offset the input cost inflation.
  • Ongoing cost savings programs and other net price realization efforts will also serve to reduce the unfavorable impacts of inflation.

Headwinds

  • Inflationary environment to continue in the coming quarter.
  • Higher commodity costs, particularly for soybean oil.
  • Increased costs for packaging.
  • Increased costs for freight.
  • Increased costs for labor.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.6%

Avg return

Earnings day

-0.1%

Avg return

5 days after

-0.5%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+18.0%

Q4 2022

Best reaction

-15.6%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-6.7%-8.6%-14.0%
Q2 2026-7.7%-11.0%-5.2%
Q1 2026+9.2%+9.0%+4.0%
Q3 2025-15.6%-16.3%-13.2%
Q2 2025+8.7%+13.3%+15.3%
Q1 2025-2.4%+3.4%+0.5%
Q4 2024-12.2%-15.2%-8.0%
Q3 2024+0.0%+1.2%-3.1%
Q2 2024+10.2%+5.2%+12.2%
Q1 2024-0.1%-0.9%-2.3%
Q4 2023-11.5%-9.6%-8.5%
Q3 2023+2.8%+1.7%-4.3%
Q2 2023-3.7%-4.5%-1.7%
Q1 2023+13.9%+18.3%+15.3%
Q4 2022+18.0%+15.4%+8.7%
Q3 2022-11.2%-7.9%-19.9%
Q2 2022-3.6%-1.6%+2.0%
Q1 2022-5.5%-4.4%-11.5%
Q4 2021-1.5%-3.0%-7.8%
Q3 2021-1.1%+0.4%+1.5%
Q2 2021+0.8%+3.6%+0.8%
Q1 2021-4.8%-4.9%-2.9%
Q4 2020+3.2%+4.7%+6.4%
Q3 2020+5.1%+8.4%+15.3%
Q2 2020-2.0%-0.5%-4.3%
Q1 2020+11.4%+11.9%+13.4%
Q4 2019-7.1%-5.3%-8.0%
Q3 2019-4.8%-3.2%-4.9%
Q2 2019+0.3%+0.1%+0.4%
Q1 2019+2.1%+8.3%+13.8%
Q4 2018+6.1%+6.2%+4.8%
Q3 2018-1.1%-1.7%-1.4%
Q2 2018-0.9%-2.4%-7.0%
Q1 2018+9.9%+5.2%+6.1%
Q4 2017-6.4%-5.3%-5.2%
Q3 2017-2.7%-4.7%-3.0%
Q2 2017-13.0%-11.8%-9.9%
Q1 2017-4.0%-4.6%+3.8%
Q4 2016+5.5%+6.1%+3.5%
Q3 2016+6.3%
Q2 2016-12.7%
Q1 2016+9.0%
Q4 2015+2.1%
Q3 2015-3.4%
Q2 2015-4.1%
Q1 2015+1.2%
Q4 2014-5.2%
Q3 2014-8.0%
Q2 2014+2.4%
Q1 2014-4.9%
Q4 2013-3.8%
Q3 2013+0.1%
Q2 2013-1.1%
Q1 2013-0.6%
Q4 2012+5.2%
Q3 2012+0.0%
Q2 2012+0.2%
Q1 2012+2.6%
Q4 2009-2.0%
Q4 2011-2.0%
Q3 2011+1.3%
Q2 2011+0.2%
Q4 2010-0.2%
Q1 2011-0.2%
Q3 2010+2.6%

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