Lancaster Colony Corporation stock identified change of 2.05% away from 52-week low price and recently located move of -27.08% off 52-week high price. It has market worth of $3940.37M and dividend yield of 1.83%. LANC stock has been recorded -5.17% away from 50 day moving average and -8.72% away from 200 day moving average. Moving closer, we can see that shares have been trading -2.31% off 20-day moving average.
Lancaster Colony Corporation (LANC) recently stated results for the fourth quarter and fiscal year ended June 30, 2019.
Fiscal Year Results
- Consolidated net sales increased 6.9% to a fiscal year record $1,308M versus $1,223M last year. Not Including net sales attributed to the acquisitions of Bantam Bagels and Omni Baking, consolidated net sales increased 4.5%.
- Retail net sales increased 1.0% to $656.6M. Not Including the incremental sales from Bantam Bagels, Retail net sales improved 0.5% as influenced by volume gains for shelf-stable dressings and sauces sold under license contracts, improved net price realization and lower coupon expense. Notable offsets to Retail sales growth included volume declines in flatbread wraps and our decision to selectively exit some low-margin private-label business.
- Foodservice net sales advanced 13.7% to $651.2M. Not Including contributions of $7.3M from Bantam Bagels and $19.4M from Omni Baking, Foodservice net sales grew 9.1%. The sales for Omni Baking are attributed to a temporary supply contract that is predictable to end no later than November 2020. Consistent with the fiscal fourth quarter, organic sales growth for the fiscal year period was widespread throughout the section with national chain restaurant accounts, branded products and frozen pasta products all contributing.
- Consolidated gross profit increased $22.7M or 7.5% to $326.2M driven by the increased sales volumes in Foodservice, cost savings from our lean six sigma program and improved net price realization. Gross profit was unfavorably influenced by incremental costs for the Omni Baking operations, investments to support expanding retail distribution of Bantam Bagels and higher warehousing costs.
- SG&A expenses increased $19.9M to $149.8M driven by increased investments in personnel and business initiatives to support future growth, including our ERP initiative, and the impact of our two acquisitions.
- The change in contingent consideration includes the favorable impact of a $17.1M non-cash reduction to the fair value of the acquisition-related contingent consideration for Angelic Bakehouse. The $17.1M adjustment was partially offset by a $0.9M increase in the fair value of the acquisition-related contingent consideration for Bantam Bagels.
- Consolidated operating income increased $19.4M to $190.9M as influenced by the factors referenced above. Retail section operating income increased $8.7M to $135.1M including the favorable impact of the $17.1M non-cash change in contingent consideration for Angelic Bakehouse. Incremental costs for the Omni Baking operations, investments to strengthen the Retail leadership team and spending to support expanding distribution of Bantam Bagels were the notable offsets to the favorable $17.1M fair value adjustment. Foodservice section operating income improved $15.4M to $73.8M with the higher sales volumes, cost savings generated by our lean six sigma program and some inflationary pricing among the notable contributors.
- Net income totaled $150.5M, or $5.46 per diluted share, contrast to the prior-year amount of $135.3M, or $4.92 per diluted share last year. In the current year, the change in contingent consideration for Angelic Bakehouse increased net income by $13.1M or $.48 per diluted share while spend for the ERP initiative reduced net income by $1.4M or $.05 per diluted share and the restructuring and impairment charge reduced net income by $1.3M or $.05 per diluted share. In the previous year, the Tax Cuts and Jobs Act of 2017 resulted in a favorable one-time deferred tax benefit of $9.5M or $0.35 per diluted share.
- The regular quarterly cash dividend was increased for the 56th consecutive year.
- The company’s balance sheet remained strong, with no debt outstanding and over $196M in cash and equivalents as of June 30, 2019.
The Consumer Goods sector company, Lancaster Colony Corporation noticed change of -1.10% to $141.74 along volume of 96294 shares in recent session compared to an average volume of 111.4K. The stock observed return of -2.15% in 5 days trading activity. The stock was at 1.11% over one month performance. LANC’s shares are at -3.72% for the quarter and driving a -5.54% return over the course of the past year and is now at -19.86% since this point in 2018. The average volatility for the week at 3.20% and for month was at 2.39%. There are 27.8M shares outstanding and 19.1M shares are floated in market. Right now the stock beta is 0.3.