Frozen Baked Goods Sales Rise for Lancaster Colony in Q1
Lancaster Colony Corp., whose frozen products include New York Brand Bakery garlic bread and Sister Schubert’s dinner rolls, reported a 2.6% gain in net sales to $298,916,000 during the first quarter of fiscal 2018 that ended on September 23, 2017. Net income, however, fell 12% to $29,386,000 million, relative to the first quarter of fiscal 2017.
Retail net revenues grew 6.2% to $162,144,000, as organic sales advanced 4.0% and sales from Angelic Bakehouse, acquired in November of 2016, added 2.2%. Organic sales growth was led by volume gains from Sister Schubert's and New York Brand Bakery products, as well as Marzetti caramel dips and Olive Garden dressings.
“We were pleased with the sales growth in our retail segment that led to a record level of consolidated net sales,” said David A. Ciesinski, chief executive officer of the Westerville, Ohio-headquartered company. “We will continue to rely upon our strengths in innovation and product development to drive top-line growth.”
Foodservice net sales decreased 1.4%, reflecting continued overall softness in the USA restaurant industry. Sales volumes to national chain restaurant accounts were below the prior-year amount, partially offset by a modest level of inflationary pricing. Sales attributed to limited-time-offer programs with our national chain customers were nearly equal to last year.