Lancaster Colony has booked a drop in first-quarter earnings as higher promotional activity hit operating profit at its speciality food business.
The US candle-to-speciality food group said net earnings fell to US$24.8m in the first three months of the year to 30 September, down from $26.7m in the comparable period of last year. Net sales fell to $285.9m, down from $291m in the year-ago period.
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Speciality food sales were relatively flat at $248.1m, compared to $248.8m last year. The company said food sales benefited from higher branded and foodservice sales, which were offset by lower own label revenues.
However, profitability at the speciality food business was dented by higher trade promotions. Operating income dipped to $39.5m from $42.8m last year.
