Page 1

CLancaster Colony Lancaster Colony Corporation 380 Polaris Parkway , Suite 400 Westerville , Ohio 43082 ( 614 ) 224-7141 news FOR IMMEDIATE RELEASE February 4 , 2021 SYMBOL : LANC TRADED : Nasdaq LANCASTER COLONY REPORTS SECOND QUARTER SALES AND EARNINGS WESTERVILLE , Ohio , February 4 - Lancaster Colony Corporation ( Nasdaq : LANC ) today reported results for the company's fiscal second quarter ended December 31 , 2020 . Summary • • • • Consolidated net sales increased 5.6 % to a second quarter record $ 375.0 million versus $ 355.1 million last year . Retail net sales grew 19.5 % to $ 222.6 million while Foodservice net sales declined 9.7 % to $ 152.4 million . Excluding all Omni Baking sales attributed to a temporary supply agreement that was terminated effective October 31 , 2020 , consolidated net sales increased 7.3 % . Consolidated gross profit increased 7.0 % to a second quarter record $ 106.8 million . Consolidated operating income grew 8.4 % to $ 58.6 million . Net income was $ 1.62 per diluted share versus $ 1.58 per diluted share last year . CEO David A. Ciesinski commented , “ We were very pleased to report record sales and gross profit for our fiscal second quarter despite all the challenges posed by the impacts of COVID - 19 . I truly appreciate the ongoing contributions and sacrifices of all the Lancaster Colony associates that led to these strong results in the face of very difficult circumstances . The top priorities for our business remain the health , safety and welfare of our employees and continuing to play our part in the country's vital food supply chain . ” " In the fiscal second quarter , growth in our core Retail business was driven by higher demand for at - home food consumption due to the impacts of COVID - 19 along with the success of our licensing program . Olive GardenⓇ dressings , Chick - fil - A® sauces and Buffalo Wild WingsⓇ sauces were noted contributors to the Retail sales gains . In Foodservice , the growth of quick - service restaurant and pizza chain customers in our mix of national chain restaurant accounts remains a source of strength in the current environment . ” " Looking ahead to our fiscal third quarter , we expect net sales to benefit from continued gains in Retail for dressings and sauces sold under exclusive license agreements . We anticipate the impacts of COVID - 19 will remain a headwind for our manufacturing costs while commodities and freight expense are expected to become increasingly inflationary . Our ongoing cost savings programs and net price realization efforts will help to offset these higher costs . Our ERP initiative , Project Ascent , is progressing as planned as we move through the testing phase with implementation on track to commence in early fiscal 2022. " MORE ...