Land O’Lakes Q1 Sales, Earnings Up Following Record Year
On the heels of a record earnings year, Land O’Lakes kicked off 2017 with a slight uptick in its sales and earnings year-over-year during the first three months.
The Arden Hills-based food cooperative earned roughly $110 million from $3.67 billion in sales in its first quarter. Its earnings during the year-ago period were about $104 million from $3.62 billion in sales, representing a 5.5 percent and 1.5 percent increase, respectively.
“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,” Land O’Lakes chief executive Chris Policinski said in a statement.
Dairy foods, a $3.8 billion business at Land O’Lakes, performed well in the first quarter, the company said, thanks to improved margins of its retail products, such as its butters and cheeses sold at grocery stores. As it expands into the artisan cheese market through its Vermont Creamery acquisition, which occurred in March, the company expects sales in its dairy foods unit to grow even higher.
Sales within Land O’Lakes animal feed and crop inputs businesses were also strong, the company said. In recent quarters, Land O’Lakes has been something of an anomaly within the food and agriculture industry with its high-flying performance. Many competitors—some local, including fertilizer maker Mosaic and food company General Mills—have regularly reported flat or falling sales and earnings.
“Our growing focus spans our farm-to-fork view of the marketplace,” Policinski said, “as we continue to invest in value-added innovation in all … of our business units.”