NASDAQ$MZTI

Marzetti Company/The · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Lancaster Colony reported record sales and gross profit for Q2 despite challenges from COVID-19.

Lancaster Colony Corporation reported a 5.6% increase in consolidated net sales, reaching a second-quarter record of $375.0 million. Retail net sales grew by 19.5%, while Foodservice net sales declined by 9.7%. Consolidated gross profit also increased by 7.0% to a record $106.8 million. Net income was $1.62 per diluted share, compared to $1.58 per diluted share in the previous year.

  • Consolidated net sales increased 5.6% to a second quarter record $375.0 million.
  • Retail net sales grew 19.5% to $222.6 million, driven by higher demand for at-home food consumption and the success of licensing programs.
  • Foodservice net sales declined 9.7% to $152.4 million due to the impacts of COVID-19.
  • Consolidated gross profit increased 7.0% to a second quarter record $106.8 million.

Headline financials

Total Revenue

$375M

Previous: $355M+5.6%
EPS (adj)

$1.62

Previous: $1.72-5.8%
Capital Expenditures

-$29.6M

Previous: -$57.7M+48.8%
Free Cash Flow

$15.1M

Previous: -$14.3M+205.6%
Net Income

$44.6M

Previous: $43.4M+2.8%
Operating Income

$58.6M

Previous: $54.1M+8.4%
Gross Profit

$107M

Previous: $99.9M+7.0%
Cash & Equivalents

$216M

Previous: $202M+7.0%
Total Assets

$1.05B

Previous: $984M+7.2%
Stock-Based Comp

$1.77M

Previous: $1.42M+24.4%

Revenue & EPS history

Lancaster Colony · Revenue · Quarterly

$375M

Q2 2021+5.6%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Lancaster Colony · $375M total across 2 segments · Q2 2021

  • Retail
    $223M+19.5%
  • Foodservice
    $152M-9.7%

Forward guidance

Lancaster Colony anticipates net sales to benefit from continued gains in Retail for dressings and sauces sold under exclusive license agreements. The impacts of COVID-19 are expected to remain a headwind for manufacturing costs, while commodities and freight expense are expected to become increasingly inflationary. Ongoing cost savings programs and net price realization efforts will help offset these higher costs.

Tailwinds

  • Net sales are expected to benefit from continued gains in Retail.
  • Dressings and sauces sold under exclusive license agreements are expected to drive retail growth.
  • Ongoing cost savings programs will help to offset higher costs.
  • Net price realization efforts will help to offset higher costs.
  • ERP initiative is progressing as planned with implementation on track to commence in early fiscal 2022.

Headwinds

  • Impacts of COVID-19 will remain a headwind for manufacturing costs.
  • Commodities expense is expected to become increasingly inflationary.
  • Freight expense is expected to become increasingly inflationary.
  • Demand remains constrained by the impacts of COVID-19 in Foodservice segment.
  • Higher overall effective tax rate of 23.8% in the current-year quarter compared to 21.0% last year.

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 2021

Historical avgQ2 2021

-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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