Milling & Baking News - March 10, 2009 - 12

Financial Results

Grupo Bimbo net climbs 12% in year
MEXICO CITY - Net majority income
of Grupo Bimbo S.A.B. de C.V. in the
year ended Dec. 31, 2008, was NP4,320
million ($285 million), up 12% from
NP3,873 million in fiscal 2007. Sales
also rose 12%, climbing to NP82,317
million ($5,437 million) from NP73,395
million.
For the fourth quarter ended Dec.
31, net majority income was NP1,274
million ($84 million), up 31% from
NP972 million. Sales were NP22,178
million ($1,467 million), up 15% from
NP19,274 million in the same period a
year ago.
Operating profit in the United States
during fiscal 2008 was NP125 million
($8 million), down 39% from NP206
million a year ago. Sales rose 9% to
NP18,049 million ($1,193 million).
Bimbo cited progress in its efforts to
improve profitability but a number of
challenges as well.
"The (profit) margin during the

fourth quarter more than doubled when
compared to the same period
of last year, to 1.5%, due to
the decline in the prices of
certain key raw materials
and the benefit of lower operating expenses," the company said. "However, on a
cumulative basis, these reductions were not enough
to offset the cost escalation
experienced during the
first nine months of the
year, resulting in a margin
decline of 0.5 percentage
points to 0.7."
Sales growth was attributed by pricing actions taken over the past
12 months, growth at national retailers and positive performance of new
product launches in Oroweat, Mrs
Baird's and the Mexican brands.
Pacing the growth was Latin America,

Campbell's Baking and Snacking net falls 22%
CAMDEN, N.J. - Operating earnings within the Baking and Snacking division of the Campbell Soup
Co. fell 22% in the second quarter
ended Feb. 1 to $53 million from
$68 million, driven primarily by a
decline in Pepperidge Farm earnings and the unfavorable impact of
currency, partially offset by growth
in Arnott's.
Sales fell 10% to $440 million,
compared with $491 million in the
same period last year, though Pepperidge sales activity was brisk.
"Sales of Pepperidge Farm products

increased, driven by gains in
the cookies and crackers and
bakery business," the company
said. "In the cookies and crackers business, sales increases were
driven by double-digit gains in
Goldfish snack crackers and in
Milano cookies, as well as the introduction of Baked Naturals, an
adult savory snack cracker.
"The bakery business also delivered solid sales growth behind
whole grain and Swirl breads."
In the company's Arnott's business, sales declined due to the divestiture

Gains from Post Foods purchase drive profit at Ralcorp
ST. LOUIS - Higher prices coupled with
gains associated from the acquisition
of the Post Foods business from Kraft
Foods Inc. helped drive a 55% gain in
first-quarter earnings at Ralcorp Holdings, Inc. Net income in the first quarter
ended Dec. 31 totaled $65,500,000, equal
to $1.17 per share on the common stock,
up from $42,400,000, or $1.66 per share, in
the same period a year ago. Earnings per
share were adversely affected due to 30.5
million shares issued in the Post Foods
acquisition, and as a result of one-time
items related to Ralcorp's investment in
ski resort owner Vail Resorts, Inc.
Net sales for the quarter were
$449,300,000, up from $180,700,000 last
year. Ralcorp said approximately 81% of
12 / March 10, 2009

Milling & Baking News

the sales growth came from Post Foods
(included in the Cereals segment). Excluding Post Foods, sales volume changes were mixed, with increases in Cereals
(8%) and Sauces and Spreads (3%), offset
by declines in Frozen Bakery Products
(8%) and Snacks (6%).
For the first quarter, Cereals had profit
contribution of $74,100,000 on sales of
$449,300,000, up from $20,600,000 and
$180,700,000, respectively, in the same
period a year earlier. Excluding sales
from the Post Foods business, net sales
increased 7%.
"The base business net sales growth
in the Cereals segment is attributable to
both higher volumes and higher prices,"
Ralcorp said in a Feb. 5 filing with the

where operating profit rose 18% to
NP431 million ($28.5 million) behind
a 30% gain in sales to NP11,346 million. Grupo Bimbo said gains were
registered in every country as a
result of the integration of new
operations, double-digit volume growth rates, higher average
product prices and new product
launches. Performance was
strongest in Argentina, Brazil,
Guatemala, Honduras and
Uruguay, the company said.
In the Mexico division, operating profit was NP6,855
million ($453 million) during the year, up 16% from the
same period a year ago. Net
sales rose to NP54,845 million
from NP49,713 million.
Grupo Bimbo said the gains
were driven by higher average product prices and new product launches.
In addition, non-traditional channels
continued to register positive performance. MBN

of certain salty snack food brands in May
and the unfavorable impact of currency.
Excluding those items, sales rose behind
growth in savory crackers, partially offset
by a decline in chocolate biscuits.
For the first six months of fiscal 2009,
operating earnings within the Baking and
Snacking division fell 3% to $136 million
from $140 million. Sales eased 7% to $949
million.
Overall, Campbell Soup Co. posted
earnings of $233 million in the second
quarter, equal to 66c per share on the common stock, down 15% from $274 million,
or 73c per share, in the second quarter of
fiscal 2008. Net sales were $2,122 million,
down 4% from $2,218 million. MBN
Securities and Exchange Commission.
"We continue to increase distribution with
most of our largest retail cereal customers
and have also benefited from a favorable
sales mix, excluding co-manufacturing.
Though co-manufacturing volume is up
overall, a shift from R.-T.-E. to hot cereal
resulted in a $3.8 million decline in comanufacturing dollar sales."
Within the Snacks segment, profit contribution totaled $20,500,000, up from
$13,200,000. Sales rose 9% to $194,500,000
behind selling price improvements and
product mix.
Profit contribution in the Frozen Bakery
Products segment was $15,000,000, down
15% from the same period a year ago. Total
net sales of the Frozen Bakery Products segment were $191,100,000, up 5%. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - March 10, 2009

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