US food and consumer goods giant Sara Lee has confirmed its fiscal 2005 earnings guidance and reviewed each of its five business lines – Branded Apparel, Household Products, Meats, Bakery and Beverage – with financial analysts.
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The company said it expects diluted earnings per share (EPS) for the first quarter of 2005 to fall within a range of 39 to 44 cents and full-year 2005 diluted EPS are expected to be in a range of $1.61 to $1.71.
Speaking about the company’s strengths and future business opportunities, Brenda Barnes, president and chief operating officer, said that with innovative new products, Sara Lee was ensuring its brands not only meet the needs of today’s consumers, but are also positioned to drive future growth.
“The organisational initiatives undertaken over the past few years to consolidate operations and centralise services are showing good results, particularly in the Meats and Bakery businesses,” she added.
On the subject of the core strategies and financial drivers of the company’s Meats business, Robert Kopriva, chief executive officer of Sara Lee Foods, reported on the effect of higher commodity costs and the business’ progress in developing value-added products, such as Hillshire Farm Deli Select Ultra Thin, to lessen dependence on commodity-driven base products.
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By GlobalDataRichard Noll, chief executive officer of Sara Lee Bakery Group (SLBG), discussed brand growth, particularly for Sara Lee worldwide and Bimbo in Europe. He also noted the improved quality of sales in the US fresh business as SLBG continues to successfully shift its business mix away from private label and regional brands and toward more national branded products to drive growth.
Noll said that SLBG is taking advantage of growth in the wheat and whole grain segments with new and established products from Sara Lee and Earth Grains. He also announced plans to expand Sara Lee’s US fresh bakery distribution into Florida.
