On the money

On the money

Food companies discuss and dissect their latest results.



Flowers Foods: is it time to reappraise strategy at the US bakery group? 12 Feb 2016

Flowers Foods' share price fell almost 20% yesterday (11 February) after the US bakery group booked fourth-quarter earnings that failed to hit analyst expectations. Sales softness and pending litigation prompted some to question whether the firm is overreaching. The real concern, however, is Flowers is pursuing a fundamentally flawed strategy. Katy Askew reports.


Kellogg seeing progress on US cereal but snacks in doldrums 12 Feb 2016

Kellogg's US business weighed on its results in 2015 but the company insisted its troubled US cereal business was seeing signs of improvement. However, the group's domestic snacks arm is under pressure. Hannah Abdulla reports.


Mondelez International's 2015 results and outlook for 2016 - 7 things to learn 4 Feb 2016

Mondelez International's shares took a tumble yesterday on the back of its 2015 numbers and its forecasts for 2016 - and were down again today. Chairman and CEO Irene Rosenfeld called the last 12 months "a year of very strong results" and, although conceding volumes would again be under pressure, forecast further improvement in profitability. What should we take away from the figures and from its outlook for the months ahead? Dean Best investigates.


How is Unilever preparing for a difficult 2016? 19 Jan 2016

Conditions for global packaged food manufacturers in 2015 were challenging. According to the assessment of Unilever, 2016 looks set to get worse. So how is the ice cream-to-condiments manufacturer preparing? 


Nestle's sales miss - 10 things to learn 16 Oct 2015

Nestle missed analyst expectations for its sales growth today (16 October), when the world's largest food maker reported sales of CHF64.8bn (US$73.8bn) for the nine months to the end of September. The 2% decline was steeper than analysts had expected, with consensus forecasts predicting a sales dip of 0.8%. The closely watched organic growth rate also failed to meet expectations, with analysts predicting a 4.7% gain versus Nestle's organic growth of 4.2%. Here are 10 key points to take away from Nestle's year-to-date performance.


Unilever's sales are up, will margins follow? 15 Oct 2015

Unilever beat market expectations with a stellar third-quarter sales update this morning (15 October). However, with growth driven by its lower margin refreshments unit, could this put pressure on Unilever's group margin? Katy Askew reports. 


Kraft Heinz sales do not wow but earnings outlook bright 17 Aug 2015

Kraft Heinz Co. last week gave some indication of the financial performance of its constituent parts when the newly-formed company published second-quarter numbers for the former Kraft Foods and HJ Heinz, the last periods as independent entities before the merger closed in July. Lacklustre sales trends remain but the group is also positioned to meet its long-term margin potential and could emerge a beneficiary of potential sector consolidation. Katy Askew reports.


On the money: Buoyant WhiteWave Foods has some challenges in US 10 Aug 2015

WhiteWave Foods raised its full-year earnings forecast after reporting growth across the majority of its businesses. However, the outlook for the Earthbound Farm and Silk owner's packaged fresh and premium dairy businesses in the US appears somewhat challenging.


On the money: Hershey stands firm as China woes laid bare 10 Aug 2015

That China is central to Hershey's challenges at the moment was underlined on Friday after the US confectioner booked a second-quarter loss of almost US$100m following an impairment charge on local subsidiary Shanghai Golden Monkey.


On the money: Pricing, productivity pay off for Mondelez 31 Jul 2015

Actions taken on pricing and moves to improve productivity appear to be paying off for Mondelez International.


On the money: Mead Johnson wrestles with "irrational" China market 24 Jul 2015

Mead Johnson's business in China has come under pressure and was a factor in the US infant formula group's profit warning earlier this month. Low dairy costs and downbeat consumer sentiment have sparked fierce competition on price and Mead Johnson is uncertain when conditions will ease. But it insists it is investing for long-term growth in the country.


On the money: Unilever aims to get food growing 24 Jul 2015

Unilever has said it wants to move its food business to a new growth phase by investing in areas that offer the greatest top-line potential in emerging and developed markets.


On the money: Can General Mills improve US sales through innovation? 3 Jul 2015

General Mills has been hit by category softness and changing consumer preferences at its US business. With US retail sales representing the group's largest revenue stream, this has weighed on the group's overall results and addressing these issues is a priority for the Cheerios maker. But are General Mills' product innovation and renovation plans enough to get the top line moving in the US? Katy Askew investigates.


On the money: ConAgra private-label exit is about growth 1 Jul 2015

ConAgra Foods announced that it will sell off its loss-making private label business yesterday (30 June) in a move that, the company said, will help unlock value for its shareholders. But selling off private brands is about more than offloading an asset that is a challenging turnaround story. New CEO Sean Connolly insists it is about putting ConAgra back on the road to growth. Katy Askew reports.


On the money: Why Dairy Crest needs to offload dairies 21 May 2015

Dairy Crest chief executive Mark Allen said today (21 May) he is "confident" the group's disposal of its struggling dairies business to Muller Wiseman Dairies will gain competition approval. The group's full-year results, released earlier this morning, show exactly why this sale is vital to Dairy Crest's performance.


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