Net sales up 4% as each business unit saw strong results
Land O’Lakes Inc. reported net sales of US$3.9 billion and net earnings of US$136 million for the first quarter ending March 31, compared with net sales of US$3.8 billion and net earnings of US$37 million in 2020. Each business unit delivered strong results and increased net earnings compared to the prior year.
“The operating environment and fundamentals are strong in each business segment,” said Beth Ford, president and CEO of Land O’Lakes. “The ag sector is bolstered with our agronomic leadership in Winfield United, rising grain prices, and farmers investing in their crops in preparation for spring planting, and is well positioned to take advantage of the most favorable market environment since 2014. As businesses continue to re-open in 2021, the marketplace for Dairy Foods Foodservice is rebounding rapidly. Animal Nutrition has also seen continued growth in the lifestyle segment as people continue to invest in their animals.”
Net sales across the company were up 4% compared to the prior year with volume growth in each of the core business segments. Dairy Foods earnings were higher due to continued volume strength in Retail and improved margins in the Global Dairy Ingredients business. Crop Inputs earnings improved due to higher volumes and favorable product mix in Crop Protection Products, in advance of spring planting. Animal Nutrition earnings were also higher for the quarter due to volume growth in Lifestyle and Livestock Feed. Improved performance more than offset the impact of higher supply chain costs across the portfolio. 2021 first quarter performance was the strongest of the past decade for the farmer-owned cooperative.