World Grain - February 2014 - 94

FEATURE: StroNg returNS iN 2013

North America: Solid gains for grain-based shares amid extraordinary bull market
Shares of North American grain-based foods companies advanced
widely in 2013, ending the year at a new record high. The GrainBased Foods Share Index, calculated by Milling & Baking News, sister
publication of World Grain, closed the year at 17373.92, up 23% for
the year.
It was the largest single-year gain for the index since the year
2000, when the index jumped 36%. Additionally, 2013 marked the
fifth straight year of advances for the index, coming on the heels of
gains of 16% in 2012, 8% in 2011, 9% in 2010 and 13% in 2009.
Over that five-year period, shares of what is often called a "mature"
grain-based foods industry have nearly doubled from the 9146.77
mark for the index at the end of 2008.
Among companies included in the Grain-Based Foods Share Index,
the widest jump, by far, was posted by Krispy Kreme Doughnuts, Inc.,
Winston-Salem, North Carolina, up 106%. The gain followed a 47%
jump in 2012 when the stock also was the top performer in the
grain-based sector. Krispy Kreme shares slipped 6% in 2011 but
were up 137% in 2010.
Hain Celestial Group, Inc. was a top performer again in 2013.
The company's shares jumped 67%, the second widest gain among

grain-based foods stocks. It was the fourth consecutive year of heady
advances for Melville, New York-based Hain shares, with leaps of
46% in 2012, 36% in 2011 and 59% in 2010. In the company's
most recently reported quarter, ended Sept. 30, net income was up
more than 60% and sales were up 33%.
A 59% surge in shares of Archer Daniels Midland Co. (ADM),
Decatur, Illinois, in 2013 offered considerable solace for the company
in the face of a major corporate initiative that failed to move forward. In late November, the Australian government rejected ADM's
proposed acquisition of GrainCorp Ltd., stating that the transaction
is contrary to the nation's interest. More broadly, the company said it
has achieved a goal of $150 million a year in cost savings and raised
its dividend payout a whopping 26%. The large share price gain in
2013 followed a 3.5% decline in 2012 and a 5% drop in 2011.
MGP Ingredients, Inc., Atchison, Kansas, the fourth-best performing grain-based stock in 2013, experienced another tumultuous year,
gaining 52%. The gain represented a recovery of lost ground following a 32% decline in 2012. The company struggled during the year
with a proxy battle led by the founding Cray family and culminating
(Continued on page 96)

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94

For more information, see Page 122.

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tel: 416-291-5308 fax: 416-291-0305
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February 2014 1-800-263-3393
/ World Grain / www.World-Grain.com

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World Grain - February 2014

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