World Grain - February 2015 - 61

FEATURE

Another year of advances
M
arking the sixth straight year
of advances in the sector, share
prices of grain-based foods
companies were up sharply in 2014. The
Grain-Based Foods Share Index, calculated by Milling & Baking News, sister
publication of World Grain, ended the
year at a record 20342.89, up 17%.
While smaller than the 23% gain
in 2013, grain-based shares in 2014
eclipsed advances of 16% in 2012, 8%
in 2011, 9% in 2010 and 13% in 2009.
From the end of 2008, the Grain-Based
Foods Share Index has added 11,195
points, for a gain of 122%.
A rarity for food stocks in a bull market,
the GBF index outperformed each of the
other major market indices in 2014. The
16.8% gain bested the Standard and Poor's
500 Index - up 11.4%; the Dow Jones average of industrial shares, up 7.5%; and the
Nasdaq composite index, up 13.4%.

Grain-based foods shares up in 2014,
outperforming major market indexes
The Grain-Based Foods Share Index
also outperformed global stock indexes.
The 17% gain compared with an advance of 1.5% in the All Country World
Index (ACWI). The MSCI Emerging
Markets Index in 2014 was down 6%
during the year.
Additionally, grain-based shares were
strong when measured against most sectors of the S&P 500, outperforming consumer discretionary companies, up 8%;
staples, up 13%; energy, down 10%; industrials, up 8%; materials, up 5%; and
telecommunications, down 2%. Grainbased shares lagged the health care sector, up 23%; information technology, up
18%; and utilities, up 24%.
Within the consumer staples sector of

Grain-Based Foods Share Index
performance in 2014

High
ADM
$53.91
Bridgford
$10.63
Bunge
$93.17
Campbell Soup
$46.67
ConAgra
$37.46
Dunkin' Brands
$53.05
Flowers Foods
$22.22
General Mills
$55.64
Hain Celestial
$60.45
Ingredion
$87.20
J&J Snack Food
$112.74
Kellogg
$69.50
Krispy Kreme
$21.30
MGP Ingredients
$17.04
Mondelez International $39.54
Panera Bread Co.
$193.18
PepsiCo
$100.70
Post Holdings
$60.63
Seaboard
$4,246.90
J.M. Smucker
$107.74
Snyder's-Lance
$31.25

Low
$37.92
$7.00
$73.12
$39.60
$28.09
$40.50
$17.46
$46.70
$40.01
$58.28
$84.30
$55.69
$14.82
$5.16
$31.83
$142.41
$77.01
$30.94
$2,350.00
$87.10
$24.67

Close
$52.00
$7.75
$90.91
$44.00
$36.28
$42.65
$19.19
$53.33
$58.29
$84.84
$108.77
$65.44
$19.74
$15.86
$36.33
$174.80
$94.56
$41.89
$4,197.95
$100.98
$30.55

s = stock split during year

www.World-Grain.com / World Grain / February 2015

Change
$8.60
-$1.83
$8.80
$0.72
$2.58
-$5.55
-$2.28
$3.42
$12.90
$16.38
$20.18
$4.37
$0.45
$10.67
$1.03
-$1.89
$11.62
-$7.38
$1,402.98
-$2.64
$1.89

Per cent
change
19.8%
-19.1%
10.7%
1.7%
7.7%
-11.5%
-10.6%
6.9%
28.4%
23.9%
22.8%
7.2%
2.3%
205.6%
2.9%
-1.1%
14.0%
-15.0%
50.2%
-2.5%
6.6%

Year end
Price to
earnings Dividend
ratio
yield
17.87
2.0%
NA
NA
20.81
1.5%
15.83
2.7%
38.6
2.8%
27.52
2.1%
22.06
2.7%
22.22
3.1%
45.19
NA
16.22
2.0%
28.47
1.3%
13.6
3.0%
19.74
NA
NA
NA
18.26
1.6%
25.71
NA
20.92
2.7%
36.5
NA
15.34
NA
18.49
2.5%
11.44
2.1%

the S&P 500, the strongest groups were
brewers, up 20%; distillers and vintners,
up 33%; drug retail, up 34%; and food
retail, up 24%. The Grain-Based Foods
Share Index gain compared with packaged foods and meats companies, overall down 13%; and agricultural products, up 20%.
Of the 21 companies included in the
Grain-Based Foods Share Index, shares
of 16 scored gains in 2014 while 5 lost
ground. Three non-U.S. companies not
in the index but with a large presence in
the U.S. baking market - Grupo Bimbo
S.A.B. de C.V., George Weston Ltd. and
Maple Leaf Foods - all were up in 2014.
MGP Ingredients, Inc., Atchison,
Kansas, U.S., had the widest gain among
companies in the index - up 206%. The
more than trebling in 2014 of the perennially volatile MGPI stock followed a gain
of 52% in 2013 and a decline of 32% in
2012. The 52-week high of $17.04 represented a seven-year high for MGPI
stock. The company weathered a bruising proxy battle through much of 2013,
resulting in a change of management
and in the roster of the company's board
of directors. In July 2014, the company
of the beverage alcohol business, as its
Ranking second in gains among
grain-based shares in 2014 was
Seaboard Corp., Merriam, Kansas,
U.S., surging 50% in value to a close
of $4,197.95. With its appreciation of
more than $1,400 per share, Seaboard
highest priced U.S. stock, lagging only
Berkshire Hathaway, Inc. (which closed
nine months of 2014, Seaboard earnings
61
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World Grain - February 2015

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