November 10, 2020

 

Land O'Lakes, Inc. delivers strong third quarter results

 

 

Land O'Lakes, Inc. reported last month net sales of US$2.9 billion and net earnings of US$66 million for the third quarter ending September 30, 2020, compared with net sales of US$3.0 billion and net earnings of US$12 million during the third quarter last year. 

 

Every business unit performed better this quarter than in the previous year, the US agricultural cooperative said. 

 

Year-to-date net sales totaled US$10.3 billion with net earnings of US$184 million compared to net sales of US$10.3 billion and net earnings of US$151 million during the same period in the prior year.

 

"I am grateful for the engagement, agility and commitment of the Land O'Lakes team that delivered remarkable performance in the face of the most rapidly changing market dynamics in recent memory," said Beth Ford, president and CEO of Land O'Lakes, Inc.

 

"While the health and safety of our employees and members remains our first priority, strong performance like this enables us to innovate and expand beyond the traditional boundaries of food and ag."

 

Earnings improved by US$54 million in the third quarter due to strong performance across the portfolio. 

 

Land O'Lakes' dairy foods earnings were higher due to continued strength in its retail segment, which more than offset lower volumes in foodservice and commodity market volatility due to impacts of COVID-19.

 

The cooperative's animal nutrition earnings improved due to higher sales and favorable product mix in its lifestyle segment.

 

Land O'Lakes' crop inputs earnings were also higher for the quarter due to its improved seed performance segment, lower working capital resulting in lower debt financing costs and other targeted cost reductions.

 

Ending liquidity was US$847 million, up 70% from prior year levels.

 

- Land O'Lakes