Lancaster Colony today (29 October) posted a jump in first-quarter earnings as margin improvements and lower expenses more than offset declining sales.
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The company said that earnings totalled US$28.4m in the three months ended 30 September, up almost threefold from $11m last year.
The company said its results had benefited from an improved gross margin, which totalled 25% of sales, up from 15% last year.
Profitability was also bolstered by lower corporate expenses and reduced restructuring charges, which fell from $1.6m last year to about $800,000 this year.
However, sales at the speciality food maker dropped 4% to $2.54bn.
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By GlobalDataJohn Gerlach Jr., Lancaster Colony CEO, said the company would continue to see the positive impact of improved margins moving into the second quarter.
While consumer demand continues to be challenged by a weak economic environment, particularly in foodservice channels, we are again expecting comparative improvement in the quarter’s operating results,” he concluded.
