Sara Lee releases second quarter results

Food manufacturer Sara Lee has said that it feels confident about its prospects over the next few months following claims of strong second quarter results.

The company, which also produces household products, reported strong operating income growth and a "significant improvement in operating segment income", particularly in the international beverage segment.

However, compared with the first period of the fiscal quarter 2010, volumes decreased by one per cent and adjusted net sales fell 2.7 per cent.

Initiatives in the growing markets of Russia and Brazil were said to have helped the international beverage sectors grow, spurred on by a "focus on innovation in the single-serve and instant coffee categories". Brands which are part of the Sara Lee range include Douwe Egberts and Bravo.

A number of new products were launched in the range, including Senseo coffee pod varieties in the UK and Pilao Summer in Brazil.

Sara Lee said that strategies implemented within the Spanish market are expected to produce good results in the second half of the year in the international bakery segment.

"Ongoing strong performance in France and Australia, the segment expects to show positive trends in the upcoming quarters and for the full fiscal year," the company explained.

Posted by Lauren Cook.