Lancaster Colony posts H1 profit, sales growth

Lancaster Colony has reported increased sales and profits for the first half of its financial year, helped by acquisitions and pricing.

For the six months ending 31 December, net profit rose to US$62.1m from $55.7m. Operating income increased to $94m from $84.8m.

Sales grew to $618.9m from $563.4m, lifted by the acquisition of flatbread maker Flatout in March last year.

In the second quarter, net income rose to $34.5m from $32.9m and operating profit grew to $52.1m from $50.2m.

Retail sales benefited from pricing actions taken to help counter higher egg costs attributed to the US avian influenza outbreak. Sales for the quarter grew to $324.7m from $303.4m.

Chairman and CEO John Gerlach said: “As we move into our third quarter, assuming no recurrence of a widespread avian influenza outbreak, we anticipate pricing actions taken during the first half of our fiscal year will fully offset higher egg costs with egg prices now trending down from their recent peaks”.