August 11, 2020

Land O'Lakes, Inc. reports results for second quarter 2020

US agriculture co-op Land O'Lakes, Inc. has reported net sales of US$3.5 billion and net earnings of US$82 million for the second quarter ending June 30, 2020, compared with net sales of US$3.8 billion and net earnings of US$75 million during the second quarter of 2019.

Year-to-date net sales totaled US$7.3 billion with net earnings of US$118 million compared to net sales of US$7.3 billion and net earnings of US$139 million during the same period in the prior year.

"While focusing first on employee and member safety, the team has delivered strong operating performance leaning into fast-moving growth areas tied to consumer demand," said Beth Ford, president and CEO of Land O'Lakes, Inc.  "We are showing agility as we meet increasing demand in the dairy and feed businesses, deliver a complete suite of data-driven ag tech tools and resources and support our members as they plant and produce the nation's food supply."

Earnings were higher for the quarter due to improved performance in dairy foods as strong retail demand more than offset lower volumes in foodservice and commodity market volatility due to impacts of COVID-19. 

Land O' Lakes' animal nutrition segment showed improved operating performance in both sales and product mix driven by its premix, lifestyle feed and milk replacer segments, which was offset by higher administrative costs. Crop inputs' earnings were below prior year levels primarily due to margin compression and unfavorable product mix in crop protection products.

Ending liquidity was US$973 million, up 15% from prior year levels.

- Land O' Lakes