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Lantmännen reports a decline in its Unibake’s operating revenue for Q2 citing factors such as a drop in sales volumes for frozen bread operations in Germany, the UK and Denmark, coupled with negative currency effects.

Lower sales volumes also reduced the operating income of the Nordic group’s pasta, breakfast cereals, flour and baking mixes division, Lantmännen Cerealia.

But Q2 net sales for the overall food division, which includes chicken production and pet food divisions along with its cereal and bakery units, amounted to MSEK 3,755 from 3,666 in the same period last year, an increase of 2 per cent, said Lantmännen.

Blaming a dip in consumer demand over the past six months, the food, energy and agriculture giant, in the interim report, notes a fall of 10.5 per cent in the Swedish consumer market for flour and mixes as an illustration of such a slowdown.

Unibake’s revenues

The group said that its Unibake division is “experiencing a lag effect in pushing through price increases in pace with rising commodity costs,” which is also affecting the division’s Q2 results outcome.

In addition, reported Lantmännen, results at the Unibake business unit, one of Northern Europe’s largest manufacturer of bakery and frozen bread products, were “adversely affected” by the operational start-up and running-in expenses associated with its recently openned UK bakery site in Bedford.

The closure of the frozen bread bakery in Glostrup in Denmark negatively impacted the food division’s operating income for the first half-year.

Nonetheless, Unibake’s operations in Russia, Poland, Finland and Sweden reported positive sales growth for the second quarter.

Bread trends

Lantmännen notes that despite relatively large downward price adjustments at Europe’s grain exchanges during the past month, grain prices remain at a historically high level, and that it is “much too early to predict what the fall prices will be, as the entire harvest period is ahead of us.”

The Nordic group’s interim report cites whole grains and fresh baked bread ‘on the go’ as the major drivers in the bread market.

Citing recently reporting finds from a European-wide poll – The Bread Barometer Survey – the company said: “Fresh baked bread is at the top of consumers’ wish lists, and the increase in demand has played a major role in the success of bake-off.

With an increased focus on health, whole grains have become a rapidly growing trend.”

And Lantmännen maintains that whole grain hotdog and burger buns, and other products not normally associated with wholegrain are gradually becoming consumer favourites in line with the general health trend sweeping across Europe.

 Source: Bakery and Snacks

Companies frozen bread, Lantmännen Unibake, sales

Net majority income of Grupo Bimbo SAB de CV in the year ended 31 Dec., 2009, was NP5,956 million (US$466 million), up 38% from NP4,320 million in fiscal 2008. Sales rose 42%, climbing to NP116,479 million (US$9,118 million) from NP82,317 million.

For the fourth quarter ended Dec. 31, net majority income was NP1,760 million (US$138 million), up 38% from NP1,274 million in the same period a year ago. Sales were NP30,084 million (US$2,355 million), up 36% from NP22,178 million in the same period a year ago.

“It was an outstanding year for Grupo Bimbo, marked by the successful integration of the largest acquisition in its history that along with a more beneficial commodity environment, helped propel the company’s results,” Grupo Bimbo said.

Operating profit in the United States during fiscal 2009 was NP4,261 million (US$334 million), up sharply from NP125 million a year ago. Sales rose 177% to NP49,977 million (US$3,913 million) from NP18,049 million.

“Net sales more than doubled on a quarterly basis when compared to the same period of 2008,” Grupo Bimbo said. “Growth reflected the incorporation of BBU East and higher volumes in both regions. New products, such as Sandwich Thins, which were pioneered by BBU, as well as promotions, helped drive volume growth in a highly competitive environment. For the full year, sales almost tripled … also as a result of the incorporation of BBU East and healthy volume performance.”

In the Mexico division, operating profit was NP7,500 million (US$587 million), up 9% from NP6,855 million in fiscal 2008. Net sales were up narrowly to NP55,388 million (US$4,338 million) from NP54,845 million.

In Latin America, operating profit fell 30% to NP301 million (US$24 million) from NP431 million despite a 20% gain in sales to NP13,606 million. Grupo Bimbo said the declines reflected significant deterioration in its Venezuela operations. Also in the region, the company said it experienced higher sales and distribution expenses associated with efforts to increase penetration, as well as higher labor costs.

Companies Grupo Bimbo, sales