Milling & Baking News - May 8, 2018 - 16

Financial Results

Frito-Lay, Quaker units of
PepsiCo perform well in quarter

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16 / May 8, 2018
Milling & Baking News

PURCHASE, N.Y. - Operating income in the Frito-Lay North America
(F.L.N.A.) unit of PepsiCo, Inc. was
flat in the first quarter of fiscal 2018,
while profit in the Quaker Foods North
America (Q.F.N.A.) unit slipped 5%.
Operating profit at F.L.N.A. in the
first quarter ended March 24 totaled
$1,050 million, unchanged from the
same period a year ago. Sales in the segment increased 3% to $3,617
million from $3,499 million.
"We had solid performance, with balanced volume growth and net price
utilization and continued
strong market share results,
driven by great market base
execution, innovation and
creative brand marketing,"
Indra K. Nooyi, chief executive officer, said during an
April 26 conference call PEPSICO, INC.
with analysts. "For example, building on the success of our 2017
launch of Lay's Poppables, an entirely
new growth platform for Frito, we extended the Poppables product lineup
with the introduction of new Lay's Poppables Honey BBQ and a new 12-count
multipack of Poppables Sea Salt.
"We continue to drive net revenue
growth through increased trial and

household penetration, which, when
combined with increased purchase
frequency from the expanded product
lineup and year-long media support,
should continue to scale up this promising new brand extension.
"We have also extended the success
of our Simply subline by introducing
new package varieties with the Simply
variety pack and a three-flavor lineup
of single-serve packages for
Simply Lay's, Cheetos and
Doritos offerings."
Meanwhile, operating
profit at Q.F.N.A. fell 5% to
$155 million from $163 million, while sales inched up
narrowly to $601 million
from $598 million.
"Our portfolio of Quaker-branded products had
mid-single-digit retail sales
growth, boosted by the continued success of Overnight
Oats and supported by a new ad campaign highlighting the functional benefits of oatmeal," Ms. Nooyi said.
PepsiCo net income for the quarter
ended March 24 rose 2% to $1,353 million, equal to 94c per share on the common stock, compared with the same
period of the previous year. Sales for the
quarter rose 4% to $12,562 million. MBN

J&J Snack earnings rise 12% in
second quarter; sales up 8%
PENNSAUKEN, N.J. - Net income at
J&J Snack Foods in the second quarter
ended March 31 totaled $17,833,000,
equal to 95c per share on the common
stock, up 12% from $15,987,000, or
85c per share, in the second quarter of
fiscal 2017. Net sales increased 8% to
$266,101,000 from $246,513,000.
Overall, total food service operating
income at J&J Snack Foods decreased
6% in the second quarter to $18,535,000
from $19,636,000 in the same period a
year ago. Within the food service division, sales of bakery products totaled
$90,813,000, up 8% from the same period a year ago, while soft pretzel sales
increased 13% to $48,748,000, and
churros increased 4% to $15,272,000.
"Sales of our food service products
improved this quarter with significant
increased sales of soft pretzels in restaurants and movie theaters, funnel cakes
in schools and handhelds to a handful

of customers," Gerald B. Shreiber, chairman, president and chief executive officer, said during a May 1 conference call
with analysts. "Bakery sales without Hill
& Valley were improved this quarter as
sales to private label business increased.
Sales of our new Brahaus Pretzel have
been very encouraging. Handheld sales
were up strong 15% for the quarter as
we have had increases to a handful of
customers - existing and new. Churro
sales were up 4% even though sales
of ... limited-time-offer churros were
down $1.1 million. This was to a couple
of customers."
In general, Mr. Shreiber said food
service has been "a star" for J&J Snack.
"We went from almost $0 to $50 million in that (fast-food restaurant and
casual dining) segment, and then we
backed off about $10 million as they went
through their new product showing ...
but it's growing again," he said. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - May 8, 2018

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