Land O'Lakes first-half sales rise but profits impacted by hedging loss - Just Food
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Land O’Lakes first-half sales rise but profits impacted by hedging loss

02 Aug 2017

Land O'Lakes reported growth in revenues for the first half of the year but net earnings dropped, which the US agri-food business attributed to unrealised hedging costs.

Land O’Lakes first-half sales rise but profits impacted by hedging loss

Land O’Lakes reported growth in revenues for the first half of the year but net earnings dropped, which the US agri-food business attributed to unrealised hedging costs.

Sales rose 2.8% to US$7.3bn in the six months to the end of June from a year earlier, while net income declined 6.3% to $223m, the Minnesota-based company said in a statement today (2 August). The hedging loss for the half came in at $4m compared to an unrealised hedging gain of $26m in the first half of 2016.

Earnings from operations, excluding the impact of hedging costs, climbed 8% to $262m.

The company noted strong showings in the crop inputs sector and animal nutrition segment, which were offset by a lower performance in dairy and investments in its Land O’Lakes Sustain unit, which focuses on environmental sustainability.

Commenting on the results, CEO and president Chris Policinski, said: “We are up in volume in most of our key categories. We continue to be in a position to deliver strong full-year performance.”