Marzetti Company/The · Q3 2020 earnings

Briefing

Lancaster Colony's Q3 2020 results reflected the impact of COVID-19, with shifts in demand and inventory write-downs, but the company's financial position remained strong.

Lancaster Colony Corporation reported a 1.1% increase in consolidated net sales to a record $321.4 million for the third quarter ended March 31, 2020. Retail net sales increased by 10.7%, while Foodservice net sales declined by 7.8% due to the impact of COVID-19. Consolidated operating income decreased by $7.3 million to $30.0 million, and net income decreased by $8.2 million to $22.4 million.

• Consolidated net sales increased 1.1% to a third quarter record $321.4 million.
• Retail net sales increased 10.7% due to higher demand from COVID-19 and new product contributions.
• Foodservice net sales declined 7.8% due to the impact of COVID-19.
• Consolidated operating income declined $7.3 million to $30.0 million due to COVID-19 and ERP expenses.

Headline financials

Revenue & EPS history

The influences of COVID-19 will persist into our fiscal fourth quarter and beyond, our financial position remains strong. The fact that our Foodservice segment includes successful quick-serve restaurant and pizza chains is also a positive in the current environment. We will continue to address and adapt to the near-term impacts posed by the pandemic while also maintaining our strategic focus on long-term growth opportunities.