Annual report

2015 sales tumble, pretax earnings rise for dairy co-op Land O’Lakes

Land O’Lakes reported growth in butter, branded cheese, foodservice and refrigerated desserts.

Net sales in Land O’Lakes’ Dairy Foods business segment dropped to $4 billion in 2015, down from $5.1 billion the year before. Pretax earnings totaled $83.1 million in 2015, up from $39.7 million in 2014.

The dairy foods earnings reflect a one-time gain on the sale of Land O'Lakes' 35% interest in Advanced Food Products, LLC. The business saw growth in butter, branded cheese, foodservice and refrigerated desserts and successfully managed the downside in milk powder and overall commodity markets, according to a company statement issued today.

Across all its business segments, the Arden Hills, Minn.-based dairy cooperative reported net sales in 2015 of $13 billion, down from $15 billion in 2014 (which was a record year). Land O'Lakes, Inc. said net earnings were $308 million (a record) and an increase from $266 million in 2014.

Results from the other business segments were:

Crop Inputs reported 2015 net sales of $4.8 billion in 2015, down slightly from 2014.
Feed reported 2015 net sales of $4.2 billion, down from 2014.

In 2015, Land O'Lakes merged United Suppliers Inc. crop protection and seed business with Winfield Solutions, LLC. Land O'Lakes also purchased a majority ownership stake in Villa Crop Protection, a leading crop protection products company based in South Africa, the company's first commercial investment in Africa.

See the complete Land O'Lakes 2015 financial results at www.landolakesinc.com.