NASDAQ$MZTI

Marzetti Company/The · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Lancaster Colony reported record sales and higher profits driven by pricing actions and volume growth in both Retail and Foodservice segments.

Lancaster Colony Corporation reported a 15.2% increase in consolidated net sales, reaching a third-quarter record of $464.9 million. The company's net income was $0.89 per diluted share, compared to a net loss of $0.17 per diluted share in the previous year. The Retail segment saw a 16.0% increase in net sales, while the Foodservice segment grew by 14.4%.

  • Consolidated net sales increased 15.2% to a third quarter record of $464.9 million.
  • Retail net sales advanced 16.0% driven by licensed dressings and sauces and frozen garlic bread products.
  • Foodservice net sales grew 14.4% due to inflationary pricing and increased demand from national chain restaurant customers.
  • Consolidated gross profit increased $25.9 million, or 37.9%, to $94.2 million.

Headline financials

Total Revenue

$465M

Previous: $403M+15.2%
EPS (adj)

$0.89

Previous: $0.71+25.4%
Foodservice volume change

0.4%

No prior period
Capital Expenditures

-$78.8M

Previous: -$105M+24.8%
Free Cash Flow

-$54.3M

Previous: -$109M+50.4%
Net Income

$24.6M

Previous: -$4.48M+647.7%
Operating Income

$29.4M

Previous: -$7.62M+486.1%
Gross Profit

$94.2M

Previous: $68.3M+37.9%
Cash & Equivalents

$82.9M

Previous: $67.1M+23.5%
Total Assets

$1.16B

Previous: $1.1B+4.9%
Stock-Based Comp

$1.66M

Previous: $2.52M-34.2%

Revenue & EPS history

Lancaster Colony · Revenue · Quarterly

$465M

Q3 2023+15.2%vs Q3 2022
Beat estimate in 5 of 13 quarters(38%)
ActualEstimate

Revenue by segment

Lancaster Colony · $465M total across 2 segments · Q3 2023

  • Retail
    $247M+16.0%
  • Foodservice
    $218M+14.4%

Forward guidance

Looking ahead to the fiscal fourth quarter, the company anticipates continued benefits from its licensing program in the Retail segment and sustained volume growth from select customers in the Foodservice segment. Cost inflation will remain a headwind, but pricing actions and cost savings initiatives are expected to offset the increased costs.

Tailwinds

  • Retail sales will continue to benefit from the licensing program, including incremental growth from new products, flavors, and sizes.
  • Sustained volume growth is expected from select customers in the Foodservice segment.
  • Pricing actions are expected to offset increased costs.
  • Cost savings initiatives are expected to offset increased costs.
  • Company expects to benefit from pricing actions and cost savings initiatives.

Headwinds

  • Cost inflation will remain a headwind to financial results.
  • Consolidated net sales will compare to last year’s fourth quarter that benefited from an estimated $25 million in incremental net sales attributed to advance customer orders ahead of ERP implementation.
  • Cost inflation will remain a headwind to our financial results.
  • The ERP implementation reduced reported gross profit as production at Horse Cave facility was unfavorably impacted by the system cutover process.
  • Continued cost inflation is expected.

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 Q3 2023

Historical avgQ3 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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