Milling & Baking News - April 30, 2013 - 12

Financial Results 

CSM B.S.N.A. proﬁts down narrowly;
divestment process continues
DIEMEN, THE NETHERLANDS —
EBITA of the Bakery Supplies North
America division of CSM n.v. in the first
quarter of fiscal 2013 was $29 million,
down 4% from $30.1 million in the same
period a year ago. Excluding restructuring and integration costs, EBITA in the
division fell 5% to $28.5 million from
$30.1 million. Sales in the division totaled
$538.6 million, down 2% from $548.1 million in the same period a year ago.
Reported in euros, CSM said EBITA
at B.S.N.A. fell 4% and sales decreased
2% in the first quarter of fiscal 2013.
Bakery Supplies Europe EBITA in
the first quarter of fiscal 2013 was €11.3
million ($14.7 million), up sharply from
€1.7 million in the same period a year
ago. Sales were €266.6 million ($345.8
million), down 1% from €270.4 million.
Overall, CSM EBITA was €28.4 million ($36.9 million) in the first quarter
of fiscal 2013, up 4% from €27.3 million in the same period a year ago.
Excluding one-off costs, EBITA in the
most recent quarter was €31.9 million
($41.5 million), up 4% from €30.6 million. Sales were €779.9 million ($1,013
million), down 2% from €798.7 million.
EBITA from continuing operations
was €9.9 million ($12.9 million), down
29% from €14 million in the same period a year ago. Excluding one-off
costs, EBITA from continuing operations was €14.6 million, up from €14.4
million. Net sales from continuing operations fell 6% in the first quarter to
€180.5 million from €191.2 million.
“The intended divestment of our
Bakery Supplies businesses to Rhone

Capital, which we announced on March
25, is an essential step in our strategy
to transform into a bio-based ingredients company,” said Gerard Hoetmer,
chief executive officer of CSM. “Selling

these businesses in one transaction, in
accordance with our original intention,
will lead to minimal disruption for the
divested businesses and the continuing
business. We have found in Rhone Capital a strong partner which supports existing management in its global growth
ambition. Both parties are working
toward a fast finalization and smooth
handover of the operations. We continue to expect completion of the transaction in the third quarter of 2013.”
Rhone Capital L.L.C. in late March
reached an agreement to acquire the
bakery supplies businesses of CSM
n.v. for approximately $1,361 million.
The acquisition includes the European
Bakery Supplies and North American
Bakery Supplies businesses (excluding Caravan Ingredients) as well as the
international bakery supplies activities. Rhone Capital also will acquire
the CSM brand name. The businesses
Rhone will acquire had aggregate
sales of about $3,317 million in 2012.
Mr. Hoetmer said the continuing
bio-based business has had “a challenging start to the year.”

PepsiCo Americas Foods off to solid start in ﬁscal 2013
PURCHASE, N.Y. — Strength in the Frito-Lay North America and Latin America
Foods units offset a decline in Quaker
Foods North America, leading to a 6%
increase within the PepsiCo Americas
Foods unit of PepsiCo, Inc. in the first
quarter ended March 23. At $1,224 million, operating profit for PepsiCo Americas Foods was up from $1,150 million in
the first quarter of fiscal 2012. Net revenue in the division increased 5%, rising to
$5,124 million from $4,868 million.
Frito-Lay North America, the largest
segment within PepsiCo Americas Foods,
posted an operating profit of $828 million
in the first quarter of fiscal 2013, up 6%
from $780 million a year ago. Net revenue
also was higher, climbing 4% to $3,123
million from $3,010 million. The unit’s
12 / April 30, 2013 Milling & Baking News

market share in the United States grew in
the quarter, reflecting 4% volume growth
driven by strategic investments and disciplined execution, PepsiCo said.
First-quarter operating profit at Quaker Foods North America fell to $180 million, down 4% from $187 million a year
ago. Net revenue, meanwhile, increased
2% to $634 million from $623 million.
Latin America Foods operating profit
was $216 million in the first quarter of fiscal 2013, up 18% from $183 million a year
ago. Net sales rose 11% to $1,367 million
from $1,235 million.
Overall, net income at PepsiCo, Inc. in
the first quarter ended March 23 totaled
$1,075 million, equal to 69c per share on
the common stock, down 5% from $1,127
million, or 71c per share, in the same

“We saw no significant changes
in overall market conditions in the
first quarter, and sales was impacted
by a lower number of trading days
compared to Q1 last year,” he said.
“Improving on the trend of previous
quarters Purac volumes on balance
were stable, driven by growth in the
chemicals and pharma segment, with
the food segment showing a slight
decline. Caravan Ingredients was affected by the bankruptcy of major
customer Hostess, whose volumes are
already gradually being picked up by
other industrial bakers (who are also
supplied by Caravan Ingredients).”
Looking ahead, Mr. Hoetmer said
CSM not only will work to complete the
divestment of its Bakery Supplies businesses, but also will work to expand its
markets and generate substantial organic growth at the continuing business.
“First and foremost, this is driven by
the investments in product innovation
we have made in recent years, which
give us today an exciting pipeline of
new products and customer projects,” he
said. “We will continue to increase these
investments in order to access new opportunities which are arising for the continuing bio-based business. A wide range
of projects are well under way at the continuing businesses, including shaping
our combined food strategy, defining the
bio-chemicals products and innovation
portfolio, establishing a new organization structure, rightsizing the head office, and combining the strengths of both
Purac and Caravan so that the organizations can reinforce one another.
“We have also started a rebranding
project in anticipation of the transfer
of the CSM name with the divested
bakery businesses.” MBN
period a year ago. Net revenue was $12,581
million, up 1% from $12,428 million.
Looking ahead to the remainder of
2013, PepsiCo said it expects low-singledigit commodity inflation and productivity savings of approximately $900 million.
The company also expects advertising
and marketing expense to increase at or
above the rate of net revenue growth. Below the operating profit line, the company
expects higher interest expense driven by
increased debt balances and a core effective tax rate of approximately 27%.
The company is targeting over $9 billion in cash flow from operating activities
and more than $7 billion in management
operating cash flow (excluding certain
items) in 2013. Net capital spending is expected to be approximately $3 billion in
2013. MBN
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Milling & Baking News - April 30, 2013

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