Land O’Lakes has “strong third quarter 2020”
US-based Land O’Lakes has reported net sales of $2.9 billion (€2.4bn) and net earnings of $66 million (€55.7m) for the third quarter ending 30 September 2020, compared with net sales of $3 billion and net earnings of $12 million during the third quarter of 2019. Every business unit performed better this quarter than in the previous year. Year-to-date net sales totalled $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.
“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. “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 agriculture.”
Earnings improved by $54 million (€45.6m) in the third quarter due to strong performance 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 favourable product mix. 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% from prior year levels.