Land O'Lakes, Inc. delivers strong 2021 mid-year earnings

Farmer-owned cooperative doubles year-over-year earnings

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Aug 04, 2021, 10:30 ET

ARDEN HILLS, Minn., Aug. 4, 2021 /PRNewswire/ -- Land O'Lakes, Inc. today reported year-to-date net sales totaling $8.0 billion with net earnings of $236 million, a year-over-year increase of 9% in net sales and 99% in net earnings. During the same period of last year, the company reported net sales of $7.3 billion and net earnings of $118 million. For second quarter ending June 30, 2021, the company reported net sales of $4.0 billion and net earnings of $100 million, a 14% year-over-year net sales increase and 22% increase in net earnings.

Net Sales growth reflects strength in Crop Inputs and Animal Nutrition and higher pricing across the portfolio to offset rising input and supply chain costs. Net Sales accelerated in the second quarter as farmers invested in their crops and animals. The company continued to leverage its differentiated brands and reported stronger performance across all business units on a year-to-date basis.

"We are pleased we've been able to maintain the strength and accelerate the momentum of last year's performance. Despite increasing costs, the fundamentals of our industry remain favorable and our differentiated approach has delivered sustained performance in all business segments through the first half of the year," said Beth Ford, president and CEO of Land O'Lakes, Inc. "We also recognize third quarter could be our toughest year-over-year comparison in our historically smallest quarter, as during 2020, COVID-19 drove above normal retail purchasing. I'm proud of the team that continues to lead strong performance, both in sales and in voice, as we advocate for and deliver for our member owners."

Earnings for the quarter were driven by strong performance in Crop Inputs with higher volumes and favorable product mix in Crop Protection and improved margins in Crop Nutrients. Dairy Foods earnings were below the elevated levels experienced in the second quarter of 2020, as consumers increased retail purchases at the start of the pandemic, but overall performance in retail dairy remained solid. Dairy also benefitted from strong performance in Foodservice as restaurants and other institutions continued to reopen across the country. Animal Nutrition earnings were lower for the quarter due to higher input costs, which offset higher formula feed volumes and a favorable mix shift toward the Lifestyle segment.

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.

About Land O'Lakes, Inc.
Land O'Lakes, Inc., one of America's premier agribusiness and food companies, is a member-owned cooperative with industry-leading operations that span the spectrum from agricultural production to consumer foods. With 2020 annual sales of $14 billion, Land O'Lakes is one of the nation's largest cooperatives, ranking 219 on the Fortune 500. Building on a legacy of more than 99 years of operation, Land O'Lakes today operates some of the most respected brands in agribusiness and food production including Land O'Lakes Dairy Foods, Purina Animal Nutrition, WinField United and Truterra. The company does business in all 50 states and more than 60 countries. Land O'Lakes, Inc. corporate headquarters are located in Arden Hills, Minnesota.

SOURCE Land O'Lakes, Inc.