CANADA: Investment forecast to hit Weston Foods 2014 profits
Weston Foods set to see further investment in 2014
Underlying profits at Canadian baker Weston Foods are expected to fall this year as parent George Weston Ltd invests in plants, marketing and innovation.
George Weston, which also owns retailer Loblaw, said Weston Foods was forecast to see "modest sales growth" in 2014.
However, the company warned: "Despite the anticipated growth in sales, adjusted operating income is expected to decline due to continued investments in growth, including plant start-up costs, capabilities, marketing and innovation."
It added: "Results will be more challenged in the first half of the year by the performance of the frozen dough business and higher commodity and other input costs."
In 2013, Weston Foods sales increased from C$1.77bn (US$1.59bn) to C$1.81bn. Operating income rose from C$230m in 2012 to C$238m. However, adjusted operating income, which excludes items like restructuring costs, fell 2.9% to C$267m.
Quarterly sales increased by 3.5% to C$413m, with volumes up 0.1%. However, operating income fell from C$44m to C$40m and adjusted operating income dropped 5.3% to C$54m.
A decline in the performance of the frozen dough business, the cost of investments and higher input costs weighed on the result.
Loblaw issued its results last week.
In 2013, George Weston saw net earnings from continuing operations climb 19.9% to C$849m. Adjusted operating income inched up 0.9% to C$1.58bn. Sales grew 2.6% to C$33.58bn.
Click here for the full statement.
Loblaw Companies Limited - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service...
Loblaw Companies Limited (L) - Strategic SWOT Analysis Review provides a comprehensive insight into the company’s history, corporate strategy, business structure and operations. The report contains a ...
Introduction Food Retail in Canada industry profile provides top-line qualitative and quantitative summary information including: market size (value 2009-13, and forecast to 2018). The prof......
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global savory & deli foods market during May 2014...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global seasonings, dressings & sauces market duri...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global prepared meals market during May 2014. Su...
George Weston Limited (WN) - Financial and Strategic SWOT Analysis Review provides you an in-depth strategic SWOT analysis of the company’s businesses and operations. The profile has been compiled by ...
Synopsis The report provides a review of the mergers and acquisitions (M&As), partnering deals, and agreements entered into by companies active in the global meat market during May 2014. Summary Usin...
- Premier Foods to push on with range revamp
- USDA's GMO move may block mandatory labels
- Why FMCG background key for next Thorntons CEO
- just-food's pick: Products on show at SIAL China
- Focus: Why Dairy Crest needs to offload dairies
- Unilever CFO Jean-Marc Huet stands down
- Kerry adds to Mattessons' adult snacking range
- Premier Foods sees FY profits fall
- Mars launches "healthy" snacks Goodnessknows
- Mondelez to cut jobs at Chicago site
- ALDI 2015: Radically transforming Anglo Saxon grocery markets
- Pizza Delivery & Takeaway in the UK - Industry Market Research Report
- Mars Inc in Packaged Food (World)
- Chocolate Flavors Market by Application & Region - Global Trends & Forecast to 2019
- Global Database of the Top 1000 Chocolate and Confectionery Producers - Company Names, Financial Performance, and Contact Details