Lancaster Colony Corporation, based in Westerville, Ohio, reported strong second-quarter results for the fiscal year ending December 31, 2024. The company posted record net sales of $509.3 million, a 4.8% increase from the same quarter in the previous year. Retail sales grew 6.3%, driven by successful licensing programs and Marzetti® brand products. The Foodservice segment saw a 3.0% increase in sales, aided by higher demand from national restaurant chain customers. Gross profit for the quarter was $132.8 million, an increase of 9.3%.

However, the company experienced a decline in income before taxes by $3.9 million due to a $14.0 million noncash settlement charge related to the termination of its legacy pension plans. Despite this, Lancaster Colony reported net income of $49.0 million, or $1.78 per diluted share, which was slightly lower than the previous year's $1.87 per diluted share. The settlement charge and incremental SG&A expenditures for a planned acquisition of a sauce and dressing production facility in Atlanta reduced net income by $0.39 and $0.05 per diluted share, respectively.

Looking ahead, the company remains optimistic about the Retail segment's growth, especially with its expanding licensing program and innovations in its own brands. It also anticipates continued success in the Foodservice segment and looks forward to the completion of the acquisition of the Atlanta-based facility, which will bolster its manufacturing capacity and operational efficiency.

For the first six months of the fiscal year, Lancaster Colony reported a 3.0% increase in net sales and a slight decline in net income, from $95.4 million in the prior year to $93.7 million, after accounting for the pension settlement and acquisition-related expenses.