NASDAQ$MZTI

Marzetti Company/The · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Lancaster Colony reported record sales and strong gross margin improvement in the second quarter of 2020.

Lancaster Colony Corporation reported a 1.6% increase in consolidated net sales, reaching a second quarter record of $355.1 million. Gross profit also increased by 9.3% to $99.9 million. However, consolidated operating income declined by $7.1 million to $54.1 million, and net income decreased by $4.5 million to $43.4 million, which was influenced by ERP expenses.

  • Consolidated net sales increased 1.6% to a second quarter record $355.1 million.
  • Consolidated gross profit grew 9.3% to $99.9 million.
  • Foodservice net sales grew 3.4% to $168.9 million.
  • The company’s balance sheet remained debt free with $202.2 million in cash and equivalents.

Headline financials

Total Revenue

$355M

Previous: $350M+1.6%
EPS (adj)

$1.72

Previous: $1.46+17.8%
Capital Expenditures

-$57.7M

Previous: -$27.9M-106.5%
Free Cash Flow

-$14.3M

Previous: $20M-171.5%
Net Income

$43.4M

Previous: $47.9M-9.4%
Operating Income

$54.1M

Previous: $61.2M-11.6%
Gross Profit

$99.9M

Previous: $91.4M+9.3%
Cash & Equivalents

$202M

Previous: $195M+4.0%
Total Assets

$984M

Previous: $875M+12.4%
Stock-Based Comp

$1.42M

Previous: $1.83M-22.3%

Revenue & EPS history

Lancaster Colony · Revenue · Quarterly

$355M

Q2 2020+1.6%vs Q2 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Lancaster Colony · $355M total across 2 segments · Q2 2020

  • Retail
    $186M
  • Foodservice
    $169M

Forward guidance

Looking ahead to the second half of our fiscal year, we will remain focused on our core strategic initiatives to grow our base business and reduce costs throughout our supply chain.

Tailwinds

  • Focusing on core strategic initiatives to grow our base business.
  • Reducing costs throughout our supply chain.
  • Launching new products sold to the retail channel under license agreements with a growing number of our national chain restaurant customers.
  • ERP initiative is progressing as planned.
  • Initial deployment expected to commence in the first half of fiscal 2021.

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 Q2 2020

Historical avgQ2 2020

-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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