Milling & Baking News - May 3, 2011 - 10

Financial Results 

CSM baking unit EBITA up sharply in quarter; organic sales up 2.1%
DIEMEN, THE NETHERLANDS — EBITA of the Bakery Supplies North America division of CSM for the first quarter of fiscal 2011 totaled $30.8 million, up 36% from $22.6 million in the same quarter a year ago. Excluding one-off costs related to the acquisition of Best Brands, EBITA in the division was $36.1 million, up 16% from $31.1 million. Sales for the segment were $537.1 million during the quarter, up 30% from $414.4 million during the same period a year ago. “Organic sales growth at Bakery Supplies North America was slightly positive at 2.1%, driven by our efforts to increase selling prices (6.9%) to compensate for higher costs,” CSM said in an April 27 trading statement. “As we took the lead in driving pricing growth to protect profitability, this came at the expense of volume (-4.8%), which we expect to recover in future periods. The acquisition of Best Brands, although difficult to calculate in the fully integrated company, contributed an additional $112.9 million to the Q1 sales.” Overall, CSM EBITA was €37.9 million ($55.7 million) in the first quarter, down 6% from €40.5 million during the same period a year ago. Excluding one-off

costs, EBITA was €43.8 million ($64.3 million), down 6%. Sales for the first quarter were €759.8 million ($1,115 million), up 18% from €644.1 million during the previous year. “The first quarter has been dominated by our commitment to increase prices in the market to compensate for higher costs,” said Gerard Hoetmer, chief executive officer. “As market leader, we have continued to show leadership, demonstrated by an average 6.4% and 5.2% price increase in Bakery Supplies and Purac, respectively, compared to the first quarter of 2010. Our increase in product pricing, where we have responded to protect our profitability, affected our volume growth, while our sales continued to grow.” MBN

Extending growth streak, Panera proﬁt climbs 27% in ﬁrst quarter
ST. LOUIS — Net income at Panera Bread Co. in the first quarter ended March 29 totaled $32,774,000, equal to $1.10 per share on the common stock, up 27% from $25,845,000, or 83c per share, in the first quarter of fiscal 2010. The year-overyear increase marked the eleventh time in twelve quarters that the company’s income has risen more than 20%. Sales during the first quarter rose 16% to $422,100,000 from $364,210,000 in the same period a year ago. Also during the first quarter, Panera said system-wide comparable bakery cafe sales increased 3.3%, while company-owned comparable bakery cafe sales rose 3.3%. In an April 27 conference call with financial analysts, Bill Moreton, chief executive officer, expanded on the

investments made in the company’s food, including the hot sandwich category, which he said is the “key focus area” for Panera in 2011. “The rollout of our Generation 2 Panini Grill has been an approximately $7

million investment for company bakery cafes,” he said. “We believe that much as our new lettuce program in 2009 was a gateway to building our strong signature salads business, the Generation 2 Panini Grill is the key to our hot sandwich platform. The new grill allows us to make our paninis to order.” Bakery products also have performed well at Panera, Mr. Moreton said. He said the company’s new Easter cookie has driven a 40% sales spike across the company’s entire cookie category since its introduction. “The Easter cookie highlights the skill of our almost 200 certified bakers across the country,” he said. “We are going to continue to utilize our baking skills to develop new innovative bakery products in the coming quarters.” Panera said it is targeting 23% to 25% earnings-per-share growth for the full year 2011, and expects e.p.s. to be $4.47 to $4.51. MBN bar sales, increased $1,223,000, or 3%, in the second quarter to $40,583,000 and increased $2,744,000, or 3%, for the six months, primarily reflecting increased sales to private label customers. Biscuit and dumpling sales increased 4% to $9,390,000 in the second quarter and were up 3% to $19,247,000 for the six months, while fig and fruit bar sales decreased 15% in the second quarter to $6,944,000 and fell 14% in the six months to $13,770,000. Overall, for the six months ended March 26 the company had earnings of $15,753,000, or 85c per share, down 2% from $16,091,000, or 87c per share, during the same period of the previous year. Sales for the six months were $318,363,000, up 4% from $306,463,000 during the same period of the previous year. MBN
bakingbusiness.com / world-grain.com

Higher costs, operating expenses weigh on J&J Snack earnings
PENNSAUKEN, N.J. — Higher ingredient and packaging costs coupled with operating expenses dragged down net income at J&J Snack Foods during the second quarter. For the quarter ended March 26, the company had earnings of $8,659,000, equal to 46c per share on the common stock, down 4% from $9,000,000, or 49c per share, during the same quarter of the previous year. Sales for the quarter were $162,731,000, up 3% from $157,361,000 during the same quarter of the previous year. “Although our overall sales grew modestly, higher input costs and operating expenses impacted our profitability for the period and the six months,” said
10 / May 3, 2011 Milling & Baking News

Gerald B. Shreiber, president and chief executive officer. Operating income in the food service segment totaled $11,777,000 in the second quarter, down 8% from $12,838,000 in the same period a year ago. For the six months ended March 26, operating income was $22,920,000, down from $23,331,000 in the same period a year ago. Sales to food service customers increased $2,468,000, or 2%, in the second quarter, to $107,813,000, and increased $6,170,000, or 3%, for the six months. Soft pretzel sales to the food service segment fell less than 1% to $25,272,000 in the second quarter and decreased less than 1% to $49,656,000 in the six months. Bakery product sales, excluding biscuit and dumpling sales and fruit and fig

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Milling & Baking News - May 3, 2011

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