Lancaster Colony(LANC) - 2026 Q1 - Quarterly Results

Financial Performance - Consolidated first quarter reported net sales increased 5.8% to a record $493.5 million compared to $466.6 million last year[4] - Adjusted Consolidated Net Sales, excluding non-core sales, increased 3.5% to $482.8 million[4] - Retail segment net sales grew 3.5% to $247.8 million, while Foodservice segment net sales increased 8.2% to $245.6 million[4] - Consolidated gross profit rose by $8.0 million or 7.2% to a record $118.8 million, with Adjusted Gross Margin improving 80 basis points to 24.6%[4] - Consolidated operating income increased $3.4 million to a record $59.3 million, with Adjusted Operating Income rising 8.1% to $60.4 million[4] - First quarter net income was $47.2 million, or $1.71 per diluted share, compared to $44.7 million, or $1.62 per diluted share, last year[9] Expenses and Charges - SG&A expenses increased by $3.5 million to $58.4 million, reflecting higher investments in brand growth[4] - Restructuring and impairment charges of $1.1 million were related to the closure of a facility in Milpitas, California[7] - Restructuring and impairment charges related to the closure of the Milpitas facility amounted to $1,143,000 in the reported operating income[25] Future Outlook - The company anticipates continued growth in Retail segment sales driven by its licensing program and brand contributions[5] - The company expects non-core TSA sales from Winland Foods to conclude by March 31, 2026, impacting future sales figures[5] - The company anticipates continued growth in core business performance despite the temporary supply agreement impacts[23] - The company is focused on enhancing operational efficiency and exploring market expansion opportunities[23] Sales Adjustments - Adjusted Consolidated Net Sales for the three months ended September 30, 2025, were $482,781,000, excluding TSA-related sales of $10,691,000[24] - Reported Gross Profit for the same period was $118,819,000, with an Adjusted Gross Margin of 24.6%[24] - Reported Operating Income increased to $59,260,000 in 2025, up by 6.1% from $55,864,000 in 2024[25] - Adjusted Operating Income for the three months ended September 30, 2025, was $60,403,000, reflecting an 8.1% increase from the previous year[25] - Foodservice Net Sales were reported at $245,627,000, with TSA-related sales of $10,691,000, leading to Adjusted Foodservice Net Sales of $234,936,000[24] - The TSA sales commenced in March 2025 and are expected to conclude during the quarter ending March 31, 2026[23] - The gross margin reported was 24.1%, while the adjusted gross margin improved to 24.6%[24]