Downers Grove, Ill, Nov. 5, 2008 – Sara Lee Corp. today reported net sales for the first quarter of fiscal 2009, ending Sept. 27, 2008, of $3.3 billion, a 9.6% increase over the comparable period
last year.
The strong overall net sales growth was primarily driven by price increases to help offset higher input costs, favorable foreign currency exchange rates and strong unit volumes in the North American retail and fresh bakery segments and in international household and body care. The company’s adjusted net sales¹ – which exclude acquisitions/divestitures and present fiscal 2008 net sales at fiscal 2009 foreign currency exchange rates – increased 5.9% in the first quarter of fiscal 2009 with growth in five of the six business segments.
“During the first quarter, we saw strong performance in our North American business segments, particularly in North American retail and fresh bakery, building on a strong fourth quarter and driven by outstanding execution over the summer,” said Brenda C. Barnes, chairman and chief executive officer of Sara Lee Corp.
“Both businesses achieved increases in unit volumes, net sales and operating income, and experienced market share gains across virtually every major brand in each major category. Our North American foodservice business did a terrific job increasing sales and profits in a very challenging market.
“We made a number of strategic investments in our international businesses in the quarter, aimed at spurring growth both this year and over the long-term. At the same time though, some of our largest European markets are experiencing challenging economic conditions that have offset strength in other markets. However, I continue to be confident that Sara Lee will deliver a strong year based on the early success in North America coupled with anticipated contributions from our investments in the higher-margin international businesses,” Barnes concluded.
Sara Lee reported operating income of $353 million for the first quarter of fiscal 2009, compared to $293 million in the prior year’s period, an increase of 20.5%. Adjusted operating income – which excludes the impact of significant items and acquisitions/divestitures and presents fiscal 2008 results at fiscal 2009 foreign currency exchange rates – decreased 4.1% to $192 million in the first quarter from $200 million in the prior year’s period, primarily due to $35 million in mark-to-market losses on commodity derivative contracts.
Diluted EPS as reported were $.32 per share in the first quarter compared to $.28 per share in the year-ago period.