The Hillshire Brands Company (NYSE: HSH) today reported fourth quarter and full year fiscal 2012 results from continuing operations and provided guidance for fiscal 2013. Due to matters described below, the company limited its release to operating segment financial results.
In association with the June 28, 2012 spin-off of the company’s international coffee & tea business into an independent public company named D.E MASTER BLENDERS 1753, N.V., Hillshire Brands has classified historical results of the spun-off businesses as discontinued operations. On August 1, 2012, D.E MASTER BLENDERS announced that it had discovered accounting irregularities involving previously reported financial results for its Brazilian operations and will be restating previously issued financial statements. Hillshire Brands also reported that it will restate previously issued financial statements to reflect the impact of these accounting irregularities on discontinued operations. While the restatement will impact the reported results of the discontinued operations of Hillshire Brands, it is not expected to have any meaningful impact on the results of operating segment income from continuing operations. The restatement is not expected to impact Hillshire Brands’ fiscal 2013 results.
Fourth Quarter Highlights (continuing operations)
- 3.3% increase in adjusted 1 net sales to $1.02 billion; reported net sales of $1.02 billion flat to prior year
- Adjusted operating segment income decreased 3.1% to $100 million; reported operating segment income decreased 0.4% to $76 million
- MAP spend up 8.9% for the quarter
Full Year 2012 Highlights (continuing operations)
- 4.0% increase in adjusted net sales to $4.04 billion; 1.9% increase in reported net sales to $4.09 billion
- Adjusted operating segment income decreased 4.7% to $396 million; reported operating segment income decreased 9.0% to $351 million
- MAP spend up 11.1% for the year to 3.4% of net sales