Land O'Lakes, Inc., reports record annual sales, net earnings
Record year includes 30 percent increase in cash to members
Land O'Lakes, Inc., announced record annual sales of $14.2 billion, up 4.4 percent from the prior year, and record net earnings of almost $306 million, a 27 percent increase over the prior year. The strong 2013 results continue a trend of significant growth during which the farmer-owned, Fortune 200 food and agriculture cooperative has more than doubled annual sales and grown net earnings by more than 330 percent over the last seven years.
"Our strong 2013 performance builds on our success of the last seven years," said Land O'Lakes, Inc., President and CEO Chris Policinski. "The record-setting year in Dairy Foods, combined with the continued strong performance of WinField, exemplify our commitment to delivering the products, programs and services that provide the greatest value for our customers and members alike."
Overall results for 2013 also included a record return of $147 million to members, representing a 30 percent increase in patronage compared with 2012. This is the fifth consecutive year cash to members has exceeded $100 million, bringing the seven-year total to more than $750 million.
Several strong performances across Land O'Lakes' core businesses drove the favorable year-end results including:
Dairy Foods: 101 percent year-over-year growth in pretax earnings
Crop Inputs: Greater than $200 million in pretax earnings for second consecutive year
Feed: 12 percent annual sales growth in Companion Animal and $25 million annual sales increase in Lifestyle Feed compared with 2012.
For the quarter ending December 31, 2013, Land O'Lakes delivered net earnings of $108 million, a 19 percent increase compared with the same period in 2012. Fourth quarter pretax earnings were driven by a 306 percent increase in Feed, and a 421 percent increase in Layers compared with Q4 2012.
"Our strategic direction is clear: Deliver strong financial performance while continuing to enhance our capabilities for future growth," Policinski said. "We will continue to make strategic investments in our core businesses - from agriculture to animal nutrition to the dairy case."