Land O’Lakes reports $110 million in quarterly earnings
Dairy Foods, Animal Feed and Crop Inputs segments saw strong performance
Land O’Lakes Inc. reported quarterly net sales of $3.7 billion and net earnings of $110 million in the first quarter ending March 31, 2017, compared with 2016 first quarter net sales of $3.6 billion and net earnings of $104 million.
The strong first quarter earnings come on the heels of a record year in 2016 when the company reported $320 million in net earnings on $13.2 billion in sales.
“Overall first quarter performance for 2017 continues the trend of year-over-year growth for our organization despite increased complexity and headwinds across the marketplace,” said Land O’Lakes President and CEO Chris Policinski.
During the first quarter, Land O’Lakes announced the acquisition of Vermont Creamery to accelerate growth in its important Dairy Foods business with trusted brands and innovative products. The company also announced last month its increasing commitment to achieve meaningful goals in and to shape the future of environmental sustainability across the agricultural value chain. The announcement was made in partnership with other suppliers of Walmart.
First-quarter earnings benefited from strong performance in Dairy Foods, Animal Feed and Crop Inputs. Earnings in Dairy Foods, which includes the company’s Land O Lakes brand, were driven by strong volumes in Foodservice and improved margins in retail-branded products. Increased earnings in Crop Inputs, which includes WinField United, resulted from higher margins driven by vendor rebates. Earnings across the Animal Feed portfolio remained strong due to a continued product mix shift to valued added products.