The Hillshire Brands Co. reported results for the third quarter and first nine months of fiscal year 2014. Third quarter net sales grew 3.4 percent to $955 million. Adjusted operating income grew 34.8 percent to $97 million; reported operating income grew 18.3 percent to $76 million. Adjusted diluted earnings per share (EPS) grew 31.4 percent to $0.46; reported diluted EPS unchanged at $0.34. Fiscal 2014 sales growth is expected to be in low single digits and adjusted diluted EPS at the high end of the guidance range
In the foodservice/other category, net sales increased 4.0 percent as commodity-driven pricing and favorable mix offset volume declines. Excluding commodity meat sales, net sales increased 5.3 percent. Operating segment income increased 9.6 percent versus the prior year behind increased sales and continued cost management.
Sales in the convenience store channel grew despite weather-related traffic declines. Bakery products, including the Bistro brand and Luxe Layer pies, continued to gain market share through increased distribution. Full report.