On the money
Food companies discuss and dissect their latest results.
Danone's underlying third-quarter sales fell below market expectations amid challenges in China. Regulatory changes in China are weighing on Danone's infant formula business in the country but, broadly, analysts are comfortable about the prospects for that part of the French giant's business and, overall, the group's wider prospects.
ConAgra Foods, the US group set to split in two companies with one focusing on brands, is putting more emphasis "on volume over value" after being "overly reliant on deep discounting", a strategy that had led consumers to associated some of its products with deals, CEO Sean Connolly has said.
Aryzta, the Switzerland-based bakery products supplier, this week reported a drop in annual profits, although it managed to eke out some growth on its top line. The company has faced challenges in North America in recent quarters and the numbers bore that out, with sales boosted by its businesses outside that region. just-food presents the key takeaways from Aryzta's results and looks at how the company's views its prospects for the new financial year.
General Mills booked a 7% drop in first-quarter net sales last week, with sales down 4% on an organic basis. The US company has repeatedly insisted it is taking action to address problem areas in its portfolio, such as yogurt and cereal. But this latest set of numbers underline the challenges the group faces. Here are just-food's key takeaway's from General Mills' first-quarter results.
Campbell Soup Co.'s shares slid in the wake of the release of the US company's annual results, which included lower sales and earnings - but improved profitability on an "adjusted" basis. The numbers revealed issues with the company's Campbell Fresh division, key to its bid to accelerate growth while its flagship business remains sluggish. The announcement also included guidance for the 2016/2017 financial year that disappointed analysts.
Embattled Australian milk processor Murray Goulburn reported its full-year results this week. The company, which part-listed on the Australian stock exchange to raise capital during the period, was rounding off a difficult 12 months, during which it cut payments to its farmer-owners, issued a series of profit warnings and announced the departures of its CEO and CFO. The group's much-anticipated financial update revealed lower sales but the firm managed to hit its revised profit target, which had been lowered earlier in the year. Here are just-food's key takeaways.
Delivering its first-half numbers yesterday (18 August), Nestle reported a stronger operating performance but a sluggish organic growth rate. Here are just-food's five takeaways from the company's results.
Kellogg last week announced mixed second-quarter results, with growth in underlying operating profit above analyst expectations but reported revenue missing forecasts on Wall Street and underlying sales declining. However, the Special K and Pringles maker lifted its forecast for underlying earnings per share for 2016 - and raised its target for underlying operating margin for 2017/18. Its shares closed up on the day. just-food provides the most important talking points from what was a detailed announcement.
Mondelez International yesterday (28 July) reported its second-quarter and half-year numbers, leading to the US snacks giant's shares sliding almost 3% in the New York. The Oreo maker's operating margins and underlying earnings per share beat analyst forecasts - but growth in revenues on organic basis was weak and the company is now less certain about its forecast for annual sales. There was also plenty for Mondelez to discuss beyond the financials, notably its push into chocolate in China and its interest in Hershey.
Unilever CEO Paul Polman left investors with no illusions today (21 July) when he reported the company's second-quarter results: trading is tough and the company expects it to get tougher. As a result, Unilever is "working harder" to drive gains and expand its share. Here is how.
As PepsiCo's leadership team presented the group's results yesterday (7 July) they could have summed up their core message to investors with a blast from the past: "You've got a lot to live, and Pepsi's got a lot to give". That slogan from the early 1970s would be too tame for today's app hungry consumers and investors who demand infinite fizz in terms of products, ideas and healthy dollar returns. But the slogan did sum up the mood as PepsiCo reported second-quarter profit that beat analysts' estimates and the firm boosted its full-year forecast, helped by rising sales of snacks and soft drinks in North America.
General Mills is the owner of US legacy food brands that have been hard hit by sweeping changes to consumption. The company, which has tried break into growth areas such as natural and organic, revealed yesterday (29 June) it will start to prioritise its investment behind the 75% of its portfolio it has identified as "growth businesses". Will this approach prove effective? Katy Askew investigates.
JM Smucker booked higher full-year earnings last week despite a drop in revenue from its food brands. With coffee and pet food outpacing Smucker's packaged food business, can the company lift the performance of its spreads-to-snacks brands?
Hershey's first-quarter results contained a triple whammy yesterday (26 April) as the confectioner reported falling sales and earnings, cuts to forecasts for 2016 and upped its cost savings targets from 2017. The company's results were hit by continued pressure in China and challenges in North America. Hershey, however, announced the acquisition of snacks brand BarkThins and, on a conference call with investors, the Reese's owner appeared confident it was taking the right steps to improve its performance.
Danone insisted this morning (19 April) it is winning "key battles" in its bid to raise its sales and earnings trajectories by 2020. The French food maker flagged higher sales from its US dairy business in the first quarter of this year and predicted ongoing improvements from its European dairy operations. Danone also insisted the fundamentals of its Chinese infant nutrition business are solid despite recent challenges. Katy Askew reports.
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