Lancaster Colony reports Q2 EPS with items $1.78, consensus $1.94

Reports Q2 revenue $509.3M, consensus $495.43M.Net income was $1.78 per diluted share versus $1.87 per diluted share last year. The noncash settlement charge attributed to the termination of the company’s legacy pension plans reduced net income by 39c per diluted share and the incremental SG&A expenditures attributed to the pending sauce and dressing plant acquisition reduced net income by 5c per diluted share.CEO David A. Ciesinski commented, “We were very pleased to complete the quarter with record sales, gross profit and operating income. The 6.3% increase in Retail segment net sales was driven by growth from both our licensing program and our own brands…”Our reported gross profit margin improved to 26.1%, an increase of 110 basis points versus last year, which reflects the higher sales volumes and more favorable sales mix, the positive impacts of our ongoing cost savings initiatives and some modest cost deflation.” “We also look forward to completing the asset purchase transaction for the Atlanta-based sauce and dressing production facility during our fiscal third quarter as an important strategic addition to our manufacturing network.