(RTTNews) - Lancaster Colony Corp. (LANC), a maker of specialty food products, on Thursday reported that its net income for the fourth quarter declined to $30.39 million or $1.10 per share from $33.01 million or $1.20 per share last year.
Consolidated net sales for the quarter decreased 0.9 percent to $320.9 million from $323.7 million last year. Excluding all sales attributed to a temporary supply agreement resulting from the November 16, 2018 acquisition of Omni Baking Company, consolidated net sales increased 0.7 percent.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.96 per share for the quarter on revenues of $298.63 million. Analysts' estimates typically exclude special items.
Looking ahead to fiscal 2021, Lancaster Colony said that retail sales will continue to benefit from the growth in shelf-stable dressings and sauces sold under license agreements. These include sales gains for Chick-fil-A sauces beyond the successful pilot test, expanded distribution of Buffalo Wild Wings sauces in single bottles, and added growth in the dollar and value channels for Olive Garden dressings.
The company also anticipates sales for both its Retail and Foodservice segments will continue to be impacted by the shifts in consumer demand resulting from the COVID-19 pandemic.
Further, Lancaster Colony anticipates a rise in commodity costs for fiscal 2021. However, this is expected to be offset by the cost savings programs currently underway or planned for implementation by the company's supply chain team, in addition to favorable net price realization.
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