Pricing has helped reduce the impact of higher egg costs at Lancaster Colony, which reported increased profits during the first quarter of its financial year.
For the three months ended 30 September, net income rose to US$27.6m, versus $22.7m a year earlier.
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Operating income increased 21% to $41.9m on the growth in net sales, improved operating efficiencies, reduced placement costs for new products and lower coupon expenses.
While pricing helped to reduce the impact of higher egg costs, other ingredient costs were modestly favourable.
Sales increased 13.1% to $294.1m driven by increases in both retail and foodservice channels.
Chairman and CEO John Gerlach, Jr. said: "We were certainly pleased with the record first quarter sales and operating income performance. Looking forward to our fiscal second quarter, we will maintain our focus on innovation efforts to support organic sales growth with Marzetti vineyard dressings and Marzetti veggie drizzle among our new retail products with expanding distribution.
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By GlobalData"High egg costs remain a concern at this point, with pricing actions helping to offset some of that impact. Excluding eggs, commodity costs are expected to remain modestly favourable in the second quarter. We also anticipate an uptick in marketing and promotional costs in support of our retail brands and new product introductions in the coming quarters, with some notable emphasis planned for our Sister Schubert's product line in the fiscal second quarter."
