WESTERVILLE, Ohio Lancaster Colony (NASDAQ:) Corporation (NASDAQ:LANC), a manufacturer and marketer of specialty food products, announced a quarterly cash dividend of 95 cents per share. This latest dividend announcement extends the company’s record for raising common cash dividends for 62 consecutive years, a distinction shared by only 11 US companies. The dividend is scheduled to be paid on December 31, 2024, to shareholders of record as of December 5, 2024.
The company’s annual shareholder meeting resulted in the reappointment of three existing directors, including Zena Srivatsa Arnold of Sephora, Michael H. Keown, a consultant to the natural food industry, and retired CEO George F. Knight III.
David A. Ciesinski, CEO of Lancaster Colony, highlighted the company’s strong financial position as the basis for the dividend increase, which will be the 246th consecutive quarterly dividend since September 1963. The annualized payout for the fiscal year ending June 30, 2025, is expected to be to $3.75 per share, up from $3.55 per share in fiscal 2024.
The company also provides forward-looking statements, cautioning that actual future results may differ materially from current expectations due to various risks and uncertainties. These include changes in cash flow or spending on various business activities, as well as other risk factors detailed in filings with the Industry and Trade Commission.
As of the record date of the most recent meeting of stockholders, 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 more than six decades.
This dividend announcement is based on a press release from Lancaster Colony Corporation and reflects the company’s continued commitment to shareholder return through its operational and financial strategies.
In other recent news, Lancaster Colony Corporation saw modest growth in Q1 FY2025 revenue and earnings. The specialty food products maker reported a 1.1% increase in consolidated net sales, to $467 million, and a 1.9% increase in net profit to $111 million. Despite a slight dip in the Retail segment’s net sales, the Foodservice segment saw a 3.5% increase. The company’s diluted earnings per share (EPS) also rose 1.9% to $1.62.
Lancaster Colony remains debt-free, boasting $135.1 million in cash. The company plans to spend $70 million to $80 million for the fiscal year and plans to distribute a quarterly cash dividend of $0.90 per share. This latest development reflects the company’s efforts to focus on core business growth, supply chain simplification, and strategic licensing and M&A.
Analysts noted that despite some headwinds in the food service industry, Lancaster Colony’s unique customer base may outperform the industry average due to new product development. The company is expected to benefit from retail licensing programs and maintain low single-digit growth in Foodservice.
InvestingPro Insights
Lancaster Colony’s commitment to shareholder value is further underscored by the latest data from InvestingPro. It paid a dividend of 1.88 %. This is consistent with InvestingPro’s tip that Lancaster Colony has “Maintained dividend payments for 54 consecutive years,” reinforcing the company’s long-term commitment 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 flow can adequately cover interest payments. This strong financial base supports another InvestingPro Tip that shows Lancaster Colony has “increased its profits for 7 years in a row.”
For investors considering the valuation of Lancaster Colony, it is important to note that the company trades at a P/E ratio of 34.48. While this may seem high, InvestingPro Tip suggests that Lancaster Colony “Trades at a low P/E ratio relative to near-term earnings growth,” which may indicate potential value for long-term investors.
InvestingPro offers 11 additional tips for Lancaster Colony, providing comprehensive analysis for those interested in going deeper into the company’s financial health and market conditions.
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