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Specialty food company Lancaster Colony (NASDAQ:LANC) met Wall Street’s revenue expectations in Q3 CY2024, with sales up 1.1% year on year to $466.6 million. Its GAAP profit of $1.62 per share was 2.7% below analysts’ consensus estimates.
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Lancaster Colony (LANC) Q3 CY2024 Highlights:
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Revenue: $466.6 million vs analyst estimates of $468.4 million (in line)
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EPS: $1.62 vs analyst expectations of $1.67 (2.7% miss)
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Gross Margin (GAAP): 23.8%, in line with the same quarter last year
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Operating Margin: 12%, in line with the same quarter last year
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Sales Volumes were up 1.9% year on year
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Market Capitalization: $5.1 billion
CEO David A. Ciesinski commented, “We were pleased to complete the quarter with record sales of $466.6 million and record gross profit of $110.8 million. In the Retail segment, we saw continued growth from our licensing program driven by the Subway® sauces we launched this past spring and expanding distribution for Texas Roadhouse® dinner rolls following a successful pilot test. Excluding the perimeter-of-the-store bakery product lines that we exited in March, Retail net sales increased 1.4% and Retail sales volume, measured in pounds shipped, increased 1.9%. In the Foodservice segment, despite industry-wide trends of slowing traffic, net sales grew 3.5% driven by increased demand from several of our national chain restaurant customers and volume gains for our branded Foodservice products.”
Company Overview
Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels.
Shelf-Stable Food
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
Sales Growth
Examining a company’s long-term performance can provide clues about its business quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.