Chief Executive Officer Marcel Smits added, “I am pleased to report that Meat Co showed continued improvement in volume trends, achieved SG&A reductions and launched new innovation in the third quarter. The Coffee & Tea business performed well in its main markets with underlying margin improvement, and is gearing up for significant innovation. Activity levels in both companies increased during this period as the corporate headquarters operation continued to be scaled down. In addition, both businesses worked through manufacturing inefficiencies that impacted results. Positively, after two years of steep commodity cost increases, we finally see a stabilization and, in the case of coffee, a reversal of raw material trends. For the first time in two years, both businesses recovered their commodity cost increases and will see further benefits in Q4, particularly in coffee. We are confident that we will achieve our guidance, at the low end of the range for sales and operating income, as we continue to build two stand-alone businesses.”
Fiscal 2012 Guidance
|Adjusted EPS||$0.89 - $0.95||Middle of the range|
|Net Sales||$7.9-$8.15B||Low end of the range|
|Adjusted Operating Income (including acquisitions)||$875 - $930M||Low end of the range|
|Net interest expenses||$80M||~$65M|
|Average dollar euro exchange rate||$1.35||$1.35|
|*Updated on March 2, 2012|
Coffee & Tea Co.
|Third Quarter||($ millions)||First Nine Months|
|2012||2011||% Change||Continuing Operations||2012||2011||% Change|
|929||888||4.6||Adjusted Net Sales||2,823||2,567||10.0|
|938||925||1.4||Reported Net Sales||2,858||2,552||12.0|
|120||131||(8.7)||Adjusted Op. Seg. Inc.||385||374||2.9|
|106||134||(20.7)||Reported Op. Seg. Inc.||360||333||8.2|
Overall, Coffee & Tea experienced strong performance in its branded business during the quarter. Excluding green coffee exports, adjusted net sales increased by 8.2%. Including export sales, the business grew by 4.6%. NOTE: Going forward net sales will be reported excluding green coffee export sales.