Lancaster Colony Corporation (NASDAQ:LANC) Q1 2020 Earnings Conference Call - Final Transcript

Nov 04, 2019 • 10:00 am ET

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Lancaster Colony Corporation (NASDAQ:LANC) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Sharon, and I will be your conference call facilitator today. At this time, I would like to welcome everyone to the Lancaster Colony Corporation Fiscal Year 2020 First quarter Conference Call. Conducting today's call will be Dave Ciesinski, President and CEO; and Tom Pigott, CFO. [Operator Instructions] Thank you.

And now to begin the conference call, here is Dale Ganobsik, Vice President of Investor Relations and Treasurer for Lancaster Colony Corporation.

Executive
Dale Ganobsik

Thank you, Sharon. Good morning, everyone, and thank you for joining us today for Lancaster Colony's fiscal year 2020 first quarter conference call. Our discussion this morning may include forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, and the company undertakes no obligation to update these statements based upon subsequent events.

A detailed discussion of these risks and uncertainties is contained in the company's filings with the SEC. Also note that the audio replay of this call will be archived and available at our company's website, lancastercolony.com, later this afternoon. For today's call, Dave Ciesinski, our President and CEO, will begin with an update on our strategic initiatives and highlights for the quarter. Tom Pigott, our CFO, will then provide an overview of the financial results. Dave will then share some comments regarding our outlook for the remainder of our fiscal year. After the conclusion of our prepared remarks, we'll be happy to respond to any of your questions. Once again, we appreciate your participation this morning.

I'll now turn the call over to Lancaster Colony's President and CEO, Dave Ciesinski. Dave?

Executive
David A. Ciesinski

Thanks, Dale, and good morning, everyone. It's a pleasure to be here with you today as we review our first quarter results for fiscal year 2020. Roughly three years ago, we launched our Better Food Company growth plan, which consists of three simple pillars: number one, accelerate our base business growth; number two, simplify our supply chain to reduce our cost and grow our margins; and number three, identify and execute complementary M&A to grow our core.

During the last several years, we have focused on strengthening our team, implementing our growth plan and harvesting the results. During this past quarter, we continued to leverage our strategy and grew our base business, organic net sales by 2.6%. Our Retail segment grew organic net sales by 1.5%, while our Foodservice segment grew organic net sales by 3.9%. The increase in Retail organic net sales was fueled by growth of our Marzetti branded produce dressings, veggie dips and caramel dips, a return to growth for New York Bakery frozen garlic bread and continued growth of shelf-stable dressings and sauces sold under license agreements.

We were particularly pleased with the performance of our retail team in Q1, which included relevant new innovation items such as the launch of New York Bakery 3-Cheese Cheese Sticks and Sister