Milling & Baking News - November 13, 2012 - (Page 12)

Financial Results  Mondelez earnings down 29% in third quarter, sales fall 2% DEERFIELD, ILL. — Net income at Mondelez International, Inc. in the third quarter ended Sept. 30 totaled $652 million, equal to 37c per share on the common stock, down 29% from $922 million, or 52c per share, in the same period a year ago. Net revenues in the quarter also were lower, falling 2% to $12,909 million from $13,226 million. Operating income totaled $1,652 million in the third quarter, down 3% from $1,698 million in the same period a year ago. The most recent financials include the results of Kraft Foods Group, Inc., which was spun off on Oct. 1. Beginning in the fourth quarter of fiscal 2012, Kraft Foods Group’s historical financial results for the periods prior to Oct. 1, 2012, will be reflected in Mondelez’s financial statements as a discontinued operation. Breaking down the standalone financial results for Mondelez International on an adjusted pro forma continuing operations basis, operating income for the third quarter ended Sept. 30 was $1,091 million, up 2% from $1,068 million in the same period a year ago. Net revenues for Mondelez Oreo, belVita buoy biscuit business at Mondelez DEERFIELD, ILL. — Although the company’s gum and candy business has struggled yearto-date, Mondelez International, Inc. has encountered no such issues within its biscuits business, said Irene Rosenfeld, chairman and chief executive officer. Speaking to analysts on Nov. 7 in connection with the company’s release of thirdquarter financials, Ms. Rosenfeld said biscuit China, Russia, the Middle East and Africa. “Our biscuits’ power brands rose 13% year-to-date with Oreo continuing to grow in the mid-teens,” Ms. Rosenfeld said. “Our belVita innovation platform has been another star, up more than 45% this year as we expand across markets in Europe and the Americas. In fact, belVita is on track to exceed $300 million in revenue this year.” In North America, cookies grew midto high-single digits, with strong growth in Oreo and Chips Ahoy!, while crackers were up mid-single digits with strong growth from Honey Maid, Ritz and Triscuit, said Dave Brearton, executive vicepresident and chief financial officer. “Biscuits’ improved performance and market share gains (in the United States) are a direct result of the realignment of our U.S. sales force in April,” he said. “We’re now realizing the benefits of a direct-store delivery system that’s focused solely on biscuits. For example, we’ve increased feature and display conversion opportunities, with displays up 5% year to date. And we’ve gained additional facings on existing products, as well as drove new products into stores more quickly.” MBN revenue in the first nine months of fiscal 2012 increased 7% behind growth in both developed and developing markets. In North America, biscuits sales increased mid-single digits, and in Europe sales also have been strong. Meanwhile, biscuit sales grew lowdouble digits in developing markets, led by totaled $8,326 million, down 5% from $8,778 million. “As we expected, our top-line growth this quarter was modest,” said Irene Rosenfeld, chairman and chief executive officer. “This reflected the lapping of our exceptional performance in the third quarter last year and a lower contribution from pricing. We also had some short-term executional missteps in a few key countries, but these issues should be largely resolved by the end of the year. Growth in our core categories continues to be robust. And we remain confident in our ability to deliver our 2013 and long-term targets.” Mondelez said strong U.S. biscuit performance drove solid top- and bottom-line growth in North America, where operating income was $293 million, up 14% from $256 million, and sales were $1,768 million, up 2% from $1,735 million. “Biscuits in the U.S. increased midsingle-digits, reflecting the benefits of a more focused direct-store delivery sales force,” Mondelez said. “Gum and candy was flat as double-digit growth in candy and the launch of Stride ID offset weakness in other gum brands. The region’s power brands grew 9%, led by Honey Maid, Ritz, Triscuit and Oreo biscuits and Halls candy.” Mondelez reaffirmed its 2013 net organic revenue growth outlook to be at the low end of the company’s long-term growth target of 5% to 7%, and operating earnings per share to be $1.50 to $1.55. For the nine months ended Sept. 30, net income at Mondelez International (including Kraft Foods Group, Inc.) was $2,494 million, or $1.40 per share, down 8% from $2,697 million, or $1.53 per share, in the same period a year ago. Net sales totaled $39,288 million, down 1% from $39,677 million. As a standalone, Mondelez operating income in the nine months was $3,244 million, up 5% from $3,095 million in the same period a year ago. Net sales were $25,520 million, down 2% from $26,131 million. MBN CSM B.S.N.A. unit performs well in tough market DIEMEN, THE NETHERLANDS — EBITA of the Bakery Supplies North America division of CSM n.v. in the third quarter of fiscal 2012 was $32.5 million, up 37% from $23.7 million in the same period a year ago. Excluding restructuring and integration costs, EBITA in the division rose 36% to $36.1 million from $26.6 million. Sales in the division totaled $562.6 12 / November 13, 2012 Milling & Baking News million, down 2% from $572.3 million in the same period a year ago. During the first nine months of fiscal 2012, EBITA at B.S.N.A. totaled $104.2 million, up 15% from $90.3 million. Excluding one-off costs, EBITA in the first nine months totaled $107.8 million, up 8% from $99.6 million. Net sales were $1,688.9 million, up narrowly from $1,684.7 million. Reported in euros, CSM said EBITA at B.S.N.A. rose 56% and sales increased 11% in the third quarter of fiscal 2012. For the first nine months, EBITA was up 27% while sales increased 10%. Gerard Hoetmer, chief executive officer, said he was “especially pleased” with the development of results within the company’s North American Bakery Supplies businesses. “Bakery Products, Caravan Ingredients /

Table of Contents for the Digital Edition of Milling & Baking News - November 13, 2012

Milling & Baking News - November 13, 2012
Change agent at General Mills, NAMA chairman celebrates ‘noble’ industry
Countering higher input costs, B.B.U. to raise prices in November
Late News - Flat Flowers earnings after one-time charge
Table of Contents
News/Comment - Lack of focus on farm issues likely to change
Editorial - Many milling positives in tough environment
Late News
Data - January-September flour output reaches new record high
Financial Results - Mondelez earnings down 29% in third quarter, sales fall 2%
Oreo, belVita buoy biscuit business at Mondelez
CSM B.S.N.A. unit performs well in tough market
Morning foods wake up at Kellogg
Industry Activities - Millers in ‘deep dive’ exploring possible vitamin D fortification
Meyer elected vice-chair of NAMA; two honorary memberships named
Merchandising - Winners in America’s Best Raisin Bread Contest crowned
Business - Bakers look to resume operations in wake of Hurricane Sandy
Flowers acquiring Bimbo assets in California, Oklahoma
With Wisconsin project, Horizon doubling whole wheat capacity
Baker’s Pride opens new donut plant
Wind farm built to supply power to Bimbo in Mexico begins operating
Strikes may be looming at Hostess Brands baking plants
Mondelez to close Mr. Christie cookie plant in Toronto
Red Star, Lesaffre to raise yeast prices
ADM opens sweetener transfer terminal in Chattanooga
Nutrition and Health - Whole Grain Stamp success spans participating companies of all sizes
Food Ingredient Solutions - Indulge in extras
Milling Technology - ADM Milling expanding Beech Grove flour mill
The Andersons agrees to major grain facility acquisition
Gavilon opens grain facility in South Dakota
POET-DSM buys equipment for cellulose production
Washington - Breaking Washington gridlock
Weather Outlook - In marked change, world weather pattern transitioning to ‘normal
Washington - Elections may bring little change to Senate ag committee
Farm bill fate uncertain in lame duck session of Congress
U.S.D.A. offers assistance to hurricane victims
People - With Cargill c.f.o. resignation, David MacLennan to fill in
Brad Pederson named supply chain manager at Caravan Ingredients
ADM taps two for management positions
Transportation and Distribution - N.G.F.A. seeks easier path to contest ‘unreasonable’ rail rates
Nutrition and Health - Initiative shows gains in nutrition content in children’s cereal
Ingredient Market Trends - U.S.D.A. raises forecasts for U.S. and world 2012-13 wheat ending stocks
Supplier Innovations
Marketplace Business Network
Ad Index

Milling & Baking News - November 13, 2012