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Consolidated gross profit grew 1.9%, or $2.1 million, to a first quarter record $110.8 million. The increase in gross profit was driven by the higher sales volumes and our cost savings programs. As anticipated, our pricing net of commodity costs, or PNOC, was close to neutral.

SG&A expenses increased $3.0 million to $55.0 million in support of the continued growth of our business, including increased investments in personnel and IT, in addition to higher legal expenses.

Consolidated operating income declined $0.9 million to $55.9 million. Net income improved $0.7 million to $44.7 million, or $1.62 per diluted share, versus $44.0 million, or $1.59 per diluted share, last year.

Conference Call on the Web

The company’s first quarter conference call is scheduled for this morning, October 31, at 10:00 a.m. ET. Access to a live webcast of the call is available through a link on the company’s Internet home page at www.lancastercolony.com. A replay of the webcast will also be made available on the company’s website.

About the Company

Lancaster Colony Corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels.

Forward-Looking Statements

We desire to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). This news release contains various "forward-looking statements" within the meaning of the PSLRA and other applicable securities laws. Such statements can be identified by the use of the forward-looking words "anticipate," "estimate," "project," "believe," "intend," "plan," "expect," "hope" or similar words. These statements discuss future expectations; contain projections regarding future developments, operations or financial conditions; or state other forward-looking information. Such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, expected future developments; and other factors we believe to be appropriate. These forward-looking statements involve various important risks, uncertainties and other factors, many of which are beyond our control, which could cause our actual results to differ materially from those expressed in the forward-looking statements. Some of the key factors that could cause actual results to differ materially from those expressed in the forward-looking statements include:

• efficiencies in plant operations and our overall supply chain network;

• price and product competition;

• changes in demand for our products, which may result from changes in consumer behavior or loss of brand reputation or customer goodwill;

• the impact of customer store brands on our branded retail volumes;

• the impact of any regulatory matters affecting our food business, including any additional requirements imposed by the FDA or any state or local government;

• adequate supply of labor for our manufacturing facilities;

• stability of labor relations;

• adverse changes in freight, energy or other costs of producing, distributing or transporting our products;

• the reaction of customers or consumers to pricing actions we take to offset inflationary costs;

• inflationary pressures resulting in higher input costs;

• fluctuations in the cost and availability of ingredients and packaging;

• capacity constraints that may affect our ability to meet demand or may increase our costs;

• dependence on contract manufacturers, distributors and freight transporters, including their operational capacity and financial strength in continuing to support our business;

• dependence on key personnel and changes in key personnel;

• cyber-security incidents, information technology disruptions, and data breaches;

• the potential for loss of larger programs or key customer relationships;

• failure to maintain or renew license agreements;

• geopolitical events that could create unforeseen business disruptions and impact the cost or availability of raw materials and energy;

• the possible occurrence of product recalls or other defective or mislabeled product costs;

• the success and cost of new product development efforts;

• the lack of market acceptance of new products;

• the extent to which good-fitting business acquisitions are identified, acceptably integrated, and achieve operational and financial performance objectives;

• the effect of consolidation of customers within key market channels;

• maintenance of competitive position with respect to other manufacturers;

• the outcome of any litigation or arbitration;

• 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 epidemics, pandemics or similar widespread public health concerns and disease outbreaks;

• changes in estimates in critical accounting judgments;

• the impact of fluctuations in our pension plan asset values on funding levels, contributions required and benefit costs; and

• risks related to other factors described under "Risk Factors" in other reports and statements filed by us with the Securities and Exchange Commission, including without limitation our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q (available at www.sec.gov).

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update such forward-looking statements, except as required by law. Management believes these forward-looking statements to be reasonable; however, you should not place undue reliance on statements that are based on current expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030717409/en/

Contacts

Dale N. Ganobsik
Vice President, Corporate Finance and Investor Relations
Lancaster Colony Corporation
Phone: 614/224-7141
Email: ir@lancastercolony.com