NASDAQ$MZTI

Marzetti Company/The · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Lancaster Colony reported record sales and increased profits in the second quarter of 2023.

Lancaster Colony Corporation reported an 11.4% increase in consolidated net sales, reaching a second quarter record of $477.4 million. The company's net income increased to $1.45 per diluted share, driven by growth in both the Retail and Foodservice segments and effective pricing actions to offset inflationary costs.

  • Consolidated net sales increased by 11.4% to a record $477.4 million.
  • Retail net sales grew by 5.6% to $258.8 million, driven by volume gains in frozen garlic bread and licensing programs.
  • Foodservice net sales advanced by 19.2% to $218.6 million, led by higher demand from select quick-service restaurant customers.
  • Consolidated operating income increased by 13.3% to $51.3 million.

Headline financials

Total Revenue

$477M

Previous: $428M+11.4%
EPS (adj)

$1.45

Previous: $1.25+16.0%
Foodservice volume change

-4.6%

No prior period
Capital Expenditures

-$56.5M

Previous: -$66.7M+15.3%
Free Cash Flow

-$16.5M

Previous: -$32.3M+48.9%
Net Income

$40M

Previous: $34.4M+16.3%
Operating Income

$51.3M

Previous: $45.3M+13.3%
Gross Profit

$102M

Previous: $96.6M+5.7%
Cash & Equivalents

$95.5M

Previous: $114M-16.2%
Total Assets

$1.14B

Previous: $1.12B+1.5%
Stock-Based Comp

$2.8M

Previous: $2.59M+8.1%

Revenue & EPS history

Lancaster Colony · Revenue · Quarterly

$477M

Q2 2023+11.4%vs Q2 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 third quarter, we anticipate Retail sales will continue to benefit from our expanding licensing program while, in the Foodservice segment, we expect continued volume growth from select quick-service restaurant customers. Cost inflation will remain a headwind to our financial results, but the pricing actions we have in place along with our cost savings initiatives are expected to offset the increased costs.

Tailwinds

  • Retail sales will benefit from expanding licensing program.
  • Foodservice segment expects continued volume growth.
  • Pricing actions in place.
  • Cost savings initiatives are expected to offset increased costs.
  • Ramp up of dressing and sauce production at Horse Cave plant will continue

Headwinds

  • Cost inflation will remain a headwind.
  • Complexities related to the implementation of our new enterprise resource planning system
  • Dependence on contract manufacturers, distributors and freight transporters, including their operational capacity and financial strength in continuing to support our business
  • Adequate supply of labor for our manufacturing facilities
  • Significant shifts in consumer demand and disruptions to our employees, communities, customers, supply chains, production planning, operations, and production processes resulting from the impacts of COVID-19 and other epidemics, pandemics or similar widespread public health concerns and disease outbreaks

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 2023

Historical avgQ2 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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