Food industry results in brief - TreeHouse Foods, Post Holdings, Calbee
Currency, egg prices hit TreeHouse Foods earnings outlook
TreeHouse Foods lowered its full-year earnings guidance despite higher second-quarter sales and earnings.
The US private-label supplier reduced its outlook to a range of US$3.00-$3.15 per share. The company cited higher egg prices – driven up by the avian influenza outbreak in the US. The group said it also expects full-year profits to be hit by currency exchange and coffee prices.
Net sales rose to $759m in the three months, up 20.9% thanks to the contribution of acquired businesses. EBITDA adjusted for the impact of M&A rose to $90.6m, a 3.9% increase compared to the prior year. Net earnings rose to $31.3m from $21.7m.
Post Holdings raises outlook
Post Holdings raised its outlook for full-year earnings, after acquisitions resulted in a jump in third-quarter sales and earnings.
The US company said sales rose 91.4% to US$1.2bn. EBITDA in the period rose $99.7m to $187.5m. The company attributed the gains primarily to the inclusion of acquired businesses.
Post lifted its adjusted EBITDA guidance to between $635-650m, up from a range of $585-610m.
Calbee sees sales and earnings grow in Q1
Among the Japanese food groups reporting first-quarter results this week was Calbee.
The snacks manufacturer saw net income increase 3.1% to JPY3.48bn, operating income grow 3.9% to JPY6.1bn and net sales climb 14.5% to JPY59.83bn.
Sales grew at home and abroad. Calbee lapped a slowdown in domestic sales last year when consumption was hit by the country's fiscal measures.
Calbee pointed to "strong" sales in South Korea and North America. A new plant in North America got up and running in June.
Sales, volume declines hit High Liner H1 bottom line
High Liner Foods has reported lower profits for the first half of the year after a decline in sales and volumes.
Keith Decker, president and CEO of High Liner Foods, said: "Significant price increases due to raw material cost increases in 2014, along with the weaker Canadian dollar and some sales execution and promotion challenges, led to this sales and volume decline."
Adjusted EBITDA for the six-month period ended 28 June fell to $43.4m from $43.9m a year earlier.
Land O'Lakes reports profit, sales fall in H1
Land O'Lakes, the US co-op, saw first-half profits and sales hit by declining commodity markets.
Net profit fell to US$179.8m versus $222.1m for the same period last year. Operating income fell to $194.4m against $235.7m year-on-year.
Sales fell to $7.1bn compared with $8.2bn.
The firm said the dairy foods segment continued to be adversely affected by declining milk powder and cheese prices but performance remained strong in its retail-branded butter products and foodservice business with growth in volume and market share.
Seneca Foods reports lower Q1 sales despite profit increase
Seneca Foods has posted a profit for the first quarter of its financial year, compared with a loss for the same period last year.
The US group reported a net income of US$2.9m for the period to 27 June, compared with a loss of $107,000.
Operating income was up at $5.9m compared with $998,000 a year earlier.
However the firm did report lower sales for the period of $226.3m compared with $240m year-on-year. Seneca said the decrease was due to lower volumes. A major portion of the lower sales was due to a $7.7m reduction in canned vegetable sales.
British Sugar dispute hits Real Good Food FY numbers
Real Good Food Co. has posted an increase in EBITDA and operating profit for its continuing operations in the full year to 31 March - but its reported figures were affected by its recent dispute with Associated British Foods.
Operating profit at the UK group grew to GBP3.2m (US4.9m) from GBP2.7m a year earlier. EBITDA rose to GBP5.3m from GBP4.9m year on year.
Sales, however, fell to GBP104.5m from GBP110.2m.
The results exclude Napier Brown's numbers, a business sold seven weeks before the end of the firm's financial year. Including those results, the firm reported an operating loss to GBP741,000 compared with a profit of GBP669,000. EBITDA fell to GBP1.9m from GBP3.2m. Net revenues decreased to GBP232.8m from GBP272.6m.
"The current year's results...are still dominated by the dispute with British Sugar which affected the "sugar year" October 13 to September 14. The overall reduction in EBITDA from GBP3.3m last year to GBP1.9m this year is driven by the Napier Brown performance where a loss of (GBP3.4m) was incurred, a deterioration of (GBP1.8m) over the previous year, the firm said in a statement.
Fraser and Neave sees "double digit" dairies growth
Fraser and Neave reported higher sales and earnings for the first nine months of the year with growth supported by higher profits at its dairy business.
Group sales rose to S$1.9bn (US$1.37bn), from S$1.8bn last year. Trading profit rose to S$211.3m from S4186.6m.
The company said its profit growth came on the back of a 40% increase in profitability at its dairy unit. F&N said: "PBIT surged 40 per cent to $21 million, bolstered by robust growth from its operations in Thailand and Malaysia. Dairies Thailand, in particular, has excelled as the Group’s best performing region."
Premium Brands Holdings "record" sales and earnings
Canadian speciality food maker Premium Brands Holdings booked "record" second-quarter sales and earnings.
The company said sales in the quarter totalled C$368.1m (US$281.5m), up 14.2%. Adjusted EBITDA, stripping out the impact of M&A, totalled $28.7m versus $21.7m last year. Net earnings totalled $11.3m versus $7.1m, the company reported.
"The continuing improvement in our performance is being driven by a number of factors including strong consumer demand for a broad range of our specialty food products and the realisation of benefits associated with several large capital investments that we have made over the last three years. Furthermore, the growth in our adjusted EBITDA is despite input cost challenges created by the impact the weakening Canadian dollar is having on the cost of certain food commodities," said George Paleologou, president and CEO.
Sales up but profits down at Weston Foods
The Canadian bakery group this week recorded higher sales for the first half of the year but lower profits.
Sales were up 10% at C$968m (US$737.5m) for the 24 weeks to 20 June, helped in part by foreign exchange.
Operating income dropped 25.5% at C$79m, with EBITDA sliding 15.9% to C$116m.
Reflecting on the second quarter, when Weston Foods' EBITDA was down more than 6%, parent company George Weston Ltd said the lower earnings for the 12-week period were "primarily due to a decline in underlying operating performance, partially offset by the favourable year-over-year impacts of restructuring and other charges and the fair value adjustment of commodity derivatives".
Kikkoman Q1 sales and earnings rise
Japanese food group Kikkoman Corp. booked a 48% jump in first-quarter profits on the back of solid sales.
Kikkoman posted net profit of JPY5.61bn (US$451.6m) for the three months to 30 June, up from 47.8% on the year. Operating income grew 47.9% to JPY8.4bn.
Sales increased 15.1% to JPY101.03bn. Kikkoman saw growth from divisions including its domestic and overseas food units.
NH Foods boosted by fresh meats division
Japanese meat group NH Foods saw first-quarter sales and earnings as growth from its fresh meats business offset a decline in sales of processed foods.
Net income increased 30.4% to JPY8.6bn, with operating income 19.7% higher at JPY11.88bn.
Net sales were up 7.6% at JPY305.5bn thanks to a 14% improvement in revenue from its fresh meats business.
M&A contributes to Ajinomoto growth
Ajinomoto, the Japan-based food group, this week reported higher first-quarter sales and earnings thanks in part to recent acquisitions.
The company booked operating income of JPY23.8bn, up 78.8% on the year.
Ajinomoto said there was a "significant increase" in income from its animal nutrition and seasonings business, as well from its international processed food business, along with the consolidation of Ajinomoto General Foods. The company bought out Mondelez International from the coffee, tea and cocoa venture in April.
Sales grew 28.4% to JPY292.2bn, thanks to growth overseas in seasonings and processed foods on a local currency basis; higher revenues from animal nutrition and the impact of the AGF deal, plus Ajinomoto's acquisition of US ethnic foods group Windsor Quality Holdings.?
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