Kraft Foods has announced a first quarter profit increase of 10 per cent as inventory reductions at grocers stagnate and consumers increase demand for cheap, convenient food. Organic net revenue growth of 2.3 per cent was helped by price increases, with profit assisted by higher margins, the company said. “We’ve had a very solid start to the year, and we’re on track to deliver our 2009 commitments,” Irene Rosenfeld, Chairman and CEO, advised. “Our business momentum remains... ...Read more »

South African based supermarket group Pick ‘n Pay has reported a significant turnaround in the operations at their Australian chain – Franklins. The grocer, which operates over 80 stores throughout the state of New South Wales, reaped a trading profit of R23.5 million ($3.7m) before capital profits for the year ended February 28, a marked turnaround from last year’s loss of just under A$5 million in Australia. Turnover grew by around 18% in South African Rand terms and 3.5% in Australian... ...Read more »

Coles boss Ian McLeod has today informed analysts of the rapid change taking place at Coles but remained cautious about the future despite announcing third quarter sales growth of 6 per cent – well above that recorded in the third quarter. Mr McLeod joined with Wesfarmers Chief Executive Richard Goyder to report what is now a prettier picture at Australia’s second largest supermarket chain, but both noted that there remained “a lot more to do”. “We have a business which... ...Read more »

The Coles turnaround continues to gather momentum, with their third quarter food and liquor sales up 7.6% to $5.3b. After an adjustment for the late Easter third quarter sales rose by 8.3%, with comparable store sales up 6.6%. Comparable store sales growth for the company over the first three quarters suggests real progress is being made. In the first they managed just 1.3 per cent, while in the second sales grew by 3.8% – both paling in comparison to the 6.6% Easter adjusted figure. More importantly,... ...Read more »

Woolworths Chief Executive Michael Luscombe, fresh from announcing another strong sales result, has suggested that a change in the trading terms offered to suppliers of Coles could hurt their rival. Coles reportedly increased trading rebates by four per cent earlier this year without offering suppliers any benefits beyond maintaining their shelf space. The chain said the savings would be passed onto their customers but a number of suppliers were agitated by the move, according to reports. “Significant... ...Read more »

Sara Lee Corporation, famous for its Moccona and Sara Lee brands, is contemplating the sale of their International Household & Body Care business after receiving expressions of interest. They advised that consideration was being given to a divestment of the business, which includes grocery brands in Australia such as Ambi-Pur, White King, Radox and Kiwi. Sara Lee began a restructure of their company in 2005, which has already led to divestitures and spin-offs worth US$3.8 billion. “Our... ...Read more »

Coles’ five-year turnaround may not be as difficult as some have suggested, according to Craig Woolford – a retail analyst for Citi Investment Research; with sales potentially receiving a $1.3 billion boost by 2012. Mr Woolford’s review of Coles and Bi-Lo outlets suggested that management had been the primary difference between Coles and Woolworths, validating Wesfarmers’ decision to overhaul the management team after they purchased Coles Group in 2007. “Our findings... ...Read more »

Sara Lee’s multi-year transformation is on track and beginning to reap dividends, Brenda Barnes, Chairman and Chief Executive Officer of Sara Lee, has told analysts at the CAGNY conference in Florida. “Sara Lee’s value proposition and prospects for profitable growth are better than at any other time since I’ve been here,” said Barnes, who joined the company in 2004. “And, I’m excited about the tremendous additional opportunities for improvement that will... ...Read more »

Kraft Foods is bullish about the position it has worked itself into with just one year remaining in its turnaround program and is set to launch a new brand identity to signify the change in their focus. “We’re well-positioned to win going forward,” Kraft CEO, Irene Rosenfeld, suggested. “We have a strong plan. We’re making the right investments. And we’re executing well. The majority of our businesses are now delivering, and all geographies are contributing.” Ms... ...Read more »

Wesfarmers Limited, the owner of Coles supermarkets, today announced a 46.3 per cent lift in net profit after tax to $879 million for the half-year ended 31 December 2008,  which was in the upper range of guidance provided on 14 January 2009, and includes $125 million (post-tax) in write-downs and provisions. The all-important Coles turnaround was gathering pace, Wesfarmers Managing Director, Richard Goyder, advised. “Despite the impact of a tougher consumer environment, the Group’s... ...Read more »