NASDAQ$MZTI

Marzetti Company/The · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Lancaster Colony reported record sales and higher profits for Q1 2023.

Lancaster Colony's consolidated net sales increased by 8.5% to a record $425.5 million. The company reported net income of $1.36 per diluted share, compared to $1.11 per diluted share in the previous year. Sales growth in the Foodservice segment was driven by inflationary pricing and volume gains from select quick-service restaurant customers.

  • Consolidated net sales increased 8.5% to a first quarter record $425.5 million.
  • Retail segment net sales declined 0.3% to $223.2 million while Foodservice segment net sales advanced 20.3% to $202.3 million.
  • Consolidated gross profit increased 7.2% to $99.1 million.
  • Net income was $1.36 per diluted share versus $1.11 per diluted share last year.

Headline financials

Total Revenue

$426M

Previous: $392M+8.5%
EPS (adj)

$1.62

Previous: $1.11+45.9%
Capital Expenditures

-$24.6M

Previous: -$30.2M+18.7%
Free Cash Flow

$13M

Previous: $428K+2939.0%
Net Income

$37.6M

Previous: $30.7M+22.6%
Operating Income

$49.3M

Previous: $40.5M+21.7%
Gross Profit

$99.1M

Previous: $92.4M+7.2%
Cash & Equivalents

$64.2M

Previous: $130M-50.6%
Total Assets

$1.13B

Previous: $1.12B+1.4%
Stock-Based Comp

$2.47M

Previous: $2.27M+8.4%

Revenue & EPS history

Lancaster Colony · Revenue · Quarterly

$426M

Q1 2023+8.5%vs Q1 2022
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Lancaster Colony · $462M total across 2 segments · Q1 2024

  • Retail
    $242M
  • Foodservice
    $219M

Forward guidance

Looking ahead to our fiscal second quarter, Retail sales will benefit from our expanding licensing program while, in the Foodservice segment, we anticipate continued volume growth from some of our quick-service restaurant chain customers. Cost inflation will remain a headwind to our financial results, but the pricing actions we have implemented along with our cost savings initiatives will help to offset the increased costs. Note that our second quarter results will also reflect some startup costs as we begin producing product in the newly expanded section of our dressing and sauce facility in Horse Cave, Kentucky.

Tailwinds

  • Retail sales will benefit from our expanding licensing program.
  • In the Foodservice segment, we anticipate continued volume growth from some of our quick-service restaurant chain customers.
  • Pricing actions implemented will help to offset the increased costs.
  • Cost savings initiatives will help to offset the increased costs.
  • Second quarter results will reflect production in the newly expanded section of our dressing and sauce facility in Horse Cave, Kentucky.

Headwinds

  • Cost inflation will remain a headwind to our financial results.
  • Retail segment sales volumes, measured in pounds shipped, decreased 15%.
  • Excluding the unfavorable impacts of the advance ordering and the product line rationalizations we have implemented, Retail segment sales volumes declined 7%.
  • Foodservice sales volumes, measured in pounds shipped, declined 7%.
  • Excluding the unfavorable impact of advance customer orders ahead of our ERP go-live, Foodservice segment sales volumes decreased 1%.

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 2023

Historical avgQ1 2023

-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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