10/28/2021 | Press release | Distributed by Public on 10/28/2021 08:54
ARDEN HILLS, Minn. (Oct. 28, 2021) - Land O'Lakes, Inc. today reported year-to-date net sales totaling $11.5 billion with net earnings of $253 million, compared with net sales of $10.3 billion and net earnings of $184 million in 2020. Net Sales increased 12% driven by strong volumes in Crop Inputs and Animal Nutrition and higher pricing across the portfolio to offset input and supply chain cost increases. Net Earnings growth of $69 million was driven by continued strength across all core business segments. For the third quarter ending Sept. 30, 2021, the company reported net sales of $3.5 billion and net earnings of $17 million, compared with net sales of $2.9 billion and net earnings of $65 million in 2020.
"We are confident that our solid performance for the quarter and favorable year-to-date earnings will provide a firm foundation and a strong position going into our historically busiest quarter of the year," said Beth Ford, president and CEO of Land O'Lakes, Inc. "Like all companies, we are working to mitigate challenging supply chain issues."
Earnings for the first nine months were driven by strong performance across the enterprise. In Crop Inputs, earnings improved due to higher volumes and favorable product mix in Crop Protection as well as higher margins in Crop Nutrients. Dairy Foods earnings were also higher due to improved volumes in Foodservice with the reopening of restaurants and schools and higher margins in both cheese and nonfat dry milk due to rising markets. These increases more than offset expected declines in our Retail dairy business as volumes normalized from elevated levels at the start of the pandemic. Animal Nutrition continued to grow its Lifestyle feed business, but overall profitability declined due to higher input and supply chain costs, in addition to timing of ingredient hedge positions.
More information about the company's 2021 performance can be found at www.landolakesinc.com/investors.
Any forward-looking statements represent our current judgment on what the future holds but are subject to risks and uncertainties that could cause actual results to differ materially. Undue reliance should not be placed on these forward-looking statements, which reflect our opinions only as of the date of this presentation. We will not revise or publicly release the results of any revision to any forward-looking statements in light of new information or future events.