Home cooking and baking took off this year as more consumers stayed home. Land O’Lakes is seeing that rise in its earnings report as the company announced net sales of $2.9 billion and net earnings of $66 million for the third quarter ending September 30, 2020, compared with net sales of $3.0 billion and net earnings of $12 million during the third quarter of 2019.
“I am grateful for the engagement, agility, and commitment of the Land O’Lakes team that delivered [a] 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. “While the health and safety of our employees and members remain our first priority, strong performance like this enables us to innovate and expand beyond the traditional boundaries of food and ag.”
According to the press release, every Land O’Lakes business unit performed better this quarter than in the previous year. Year-to-date net sales totaled $10.3 billion with net earnings of $184 million compared to net sales of $10.3 billion and net earnings of $151 million during the same period in the prior year.
Earnings improved by $54 million in the third quarter due to strong performances across the portfolio. Dairy Foods earnings were higher due to continued strength in retail, which more than offset lower volumes in foodservice and commodity market volatility due to impacts of COVID-19. Animal Nutrition earnings improved due to higher sales and a favorable product mix in the company’s lifestyle segment.
Crop Inputs earnings were also higher for the quarter due to improved seed performance, lower working capital resulting in lower debt financing costs, and other targeted cost reductions. Ending liquidity was $847 million, up 70 percent from prior-year levels.
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