WESTERVILLE, Ohio – Lancaster Colony (NASDAQ:) Corporation (NASDAQ:LANC), a manufacturer and marketer of specialty food products, has announced a quarterly cash dividend of 95 cents per common share. This latest dividend announcement continues the company’s record of increasing regular cash dividends for 62 consecutive years, a distinction shared with only 11 other U.S. companies. The dividend is scheduled to be paid on December 31, 2024, to shareholders who are on record as of December 5, 2024.
The company’s annual shareholder meeting resulted in the reelection of three incumbent directors, including Zena Srivatsa Arnold from Sephora, Michael H. Keown, an adviser in the natural food industry, and retired executive George F. Knight III.
David A. Ciesinski, CEO of Lancaster Colony, highlighted the company’s strong financial position as the basis for the increased dividend, which will be the 246th consecutive quarterly cash dividend since September 1963. The indicated annual payout for the fiscal year ending on June 30, 2025, is projected at $3.75 per share, up from $3.55 per share in fiscal 2024.
The company also provided forward-looking statements, cautioning that actual future results could differ materially from current expectations due to various risks and uncertainties. These include changes in cash flow or the use of cash in various business activities, as well as other risk factors detailed in filings with the Securities and Exchange Commission.
As of the most recent shareholder meeting’s record date, Lancaster Colony had 27,566,647 common shares outstanding. The company, known for its strong tradition of returning value to shareholders, has been paying quarterly cash dividends without interruption for over six decades.
This dividend announcement is based on a press release statement from Lancaster Colony Corporation and reflects the company’s ongoing commitment to shareholder returns amidst its operational and financial strategies.
In other recent news, Lancaster Colony Corporation observed modest growth in its Q1 FY2025 earnings and revenue. The specialty food products manufacturer reported a 1.1% increase in consolidated net sales, reaching $467 million, and a 1.9% rise in gross profit to $111 million. Despite a slight dip in the Retail segment’s net sales, the Foodservice segment saw a 3.5% uptick. The company’s diluted earnings per share (EPS) also increased by 1.9% to $1.62.
Lancaster Colony remains debt-free, boasting a cash reserve of $135.1 million. The company projects a capital expenditure of $70 million to $80 million for the fiscal year and plans to distribute a quarterly cash dividend of $0.90 per share. These recent developments reflect the company’s efforts to focus on core business growth, supply-chain simplification, and strategic licensing and M&A.
Analysts have noted that despite certain headwinds in the foodservice industry, Lancaster Colony’s unique customer base may be performing better than the industry average due to new product developments. The company is also expected to benefit from retail licensing initiatives and maintain low single-digit growth in Foodservice.
InvestingPro Insights
Lancaster Colony’s commitment to shareholder value is further underscored by recent data from InvestingPro. The company’s dividend yield stands at 1.88%, with a notable dividend growth of 5.88% over the last twelve months. This aligns with the InvestingPro Tip that Lancaster Colony “Has maintained dividend payments for 54 consecutive years,” reinforcing the company’s long-standing dedication to returning value to shareholders.
Financial stability is a key factor in Lancaster Colony’s ability to sustain its dividend policy. InvestingPro data shows that the company holds more cash than debt on its balance sheet, and its cash flows can sufficiently cover interest payments. This solid financial footing supports another InvestingPro Tip indicating that Lancaster Colony has “raised its dividend for 7 consecutive years.”
For investors considering Lancaster Colony’s valuation, it’s worth noting that the company is trading at a P/E ratio of 34.48. While this might seem high, an InvestingPro Tip suggests that Lancaster Colony is “Trading at a low P/E ratio relative to near-term earnings growth,” which could indicate potential value for long-term investors.
InvestingPro offers 11 additional tips for Lancaster Colony, providing a more comprehensive analysis for those interested in delving deeper into the company’s financial health and market position.
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