Lancaster Colony Corporation (NASDAQ:LANC) Q4 2020 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 10:00 am ET

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Lancaster Colony Corporation (NASDAQ:LANC) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Megan, 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 Fourth Quarter Conference Call. Conducting today's call will be Dave Ciesinski, President and CEO; and Tom Pigott, CFO. [Operator Instructions]

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

Executive
Dale N. Ganobsik

Thank you, Megan. Good morning, everyone, and thank you for joining us today for Lancaster Colony's fiscal year 2020 fourth 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 the business update 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 fiscal '21. At the conclusion of our prepared remarks, we'll be happy to respond to any questions you may have. 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 fourth quarter results for fiscal year 2020. I'd like to begin by extending a sincere thank you to the entire Lancaster Colony team for their tremendous effort during the past five months as we confronted the impact of the COVID-19 pandemic from the frontline workers at our plants and distribution centers, to all the associates and leaders throughout our business. I am extremely proud of how we pulled together and worked in common cause to meet the shifting demands of our business.

From the onset of the Coronavirus pandemic, we've remained steadfast that our mission is fixed. First, to provide for the health, safety and welfare of our teammates; and second, to ensure that we continue to play our role in our country's vital food supply chain. Despite all the uncertainty and obstacles that COVID-19 has imposed on our business, we completed fiscal year 2020 with record net sales of over $1.3 billion and record gross profit of $358 million. In our fiscal fourth quarter, excluding Omni Baking sales, consolidated net sales grew 70 basis points.

Net sales in our Retail segment grew 24.5%, while our Foodservice segments reported net sales declined 24.1%. Retail net sales benefited from higher demand as the