NASDAQ$MZTI

Marzetti Company/The · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Lancaster Colony reported record net sales driven by growth in both Retail and Foodservice segments. Gross profit margin improved due to favorable pricing, cost savings initiatives, and volume growth.

Lancaster Colony Corporation reported a 1.4% increase in consolidated net sales, reaching a record $471.4 million. The company experienced growth in both its Retail and Foodservice segments. Gross profit also increased by 10.9% due to favorable pricing, cost savings initiatives, and volume growth. Net income increased to $1.03 per diluted share.

  • Consolidated net sales increased 1.4% to a third quarter record of $471.4 million.
  • Retail net sales improved 0.3% to $248.1 million, driven by volume gains for the licensing program.
  • Foodservice net sales grew 2.6% to $223.4 million, with sales volume up by 3.9%.
  • Consolidated gross profit increased 10.9% to $104.5 million, reflecting favorable pricing and cost savings initiatives.

Headline financials

Total Revenue

$471M

Previous: $465M+1.4%
EPS

$1.03

Previous: $0.89+15.7%
Gross margin

22.2%

No prior period
Restructuring charges

$12.1M

No prior period
EPS impact

-$0.34

No prior period
Capital Expenditures

-$52M

Previous: -$78.8M+34.0%
Free Cash Flow

-$23.7M

Previous: -$54.3M+56.4%
Net Income

$28.4M

Previous: $24.6M+15.5%
Operating Income

$35.1M

Previous: $29.4M+19.5%
Gross Profit

$104M

Previous: $94.2M+10.9%
Stock-Based Comp

$3.5M

Previous: $1.66M+110.7%

Revenue & EPS history

Lancaster Colony · Revenue · Quarterly

$471M

Q3 2024+1.4%vs Q3 2023
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 the fiscal fourth quarter, Retail sales will continue to benefit from the licensing program, including incremental growth from the recent additions of Subway and Texas Roadhouse sauces. In the Foodservice segment, continued volume growth is expected from select quick-service restaurant customers and branded Foodservice products, while deflationary pricing is projected to remain a headwind to Foodservice segment net sales.

Tailwinds

  • Retail sales will continue to benefit from the licensing program.
  • Incremental growth from Subway sauces is expected.
  • Incremental growth from Texas Roadhouse sauces is expected.
  • Continued volume growth from select quick-service restaurant customers is expected.
  • Branded Foodservice products are expected to contribute to volume growth.

Headwinds

  • Deflationary pricing is projected to remain a headwind to Foodservice segment net sales.
  • Efficiencies in plant operations and our overall supply chain network
  • Price and product competition
  • The impact of customer store brands on our branded retail volumes
  • Adequate supply of labor for our manufacturing facilities

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 2024

Historical avgQ3 2024

-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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