Today I’ll be reviewing FY’12 Q1 results as well as some key objectives and projects for Q2. First I’ll open by recapping the markets that impact our input material costs and the forecast for the near future. Key commodities markets as you know are corn, pork bellies, 20/23 hams, as well as pork and beef trimmings.
Corn -> Up 25% from LY, record high $7.35. No relief in sight
20/23 Hams -> Exports up 20% over LY, 10% over forecast.
Pork Trimmings -> Over $100/cwt record highs with no immediate relief
Beef Trimmings -> Steadily rising as buyers seek alternatives to pork.
The good news is that we have over delivered our gross margin plan for the quarter while missing slightly on volume. Management PBT to plan is roughly 102% of plan. The exciting news is that our core customers that make up the top 10 in volume are growing year after year.
With the difficult economic forecast along with increased export demand as a result of the earthquake in Japan we will need to remain vigilant and execute pricing when needed and strategically execute our promotional strategies. I look forward to reviewing a successful Q2 and thank you all.
The comments with tabular format for key products is a good idea, it helps to read the meesage and understand it. I felt that as an employee I understand the message from the CEO and kept me engaged.
ReplyDeleteMay there is a typo error in the first line where you write, FY'12...may be it should be FY'11.
I appreciate the feedback however my company is in their fiscal 2012 year as our fiscal calendar runs from May, 1 through April 31 and we have just entered our second quarter.
ReplyDeleteOur fiscal is on a different schedule as a result of the seasonality of our business cycle.
Hope that helps clear up the confusion.
Your closing does a good job informing employees how management would like them to act in the upcoming quarter. Telling them what they need to do will help them make the proper decisions to achieve the results you look forward to reviewing with them.
ReplyDeleteHey - my fiscal runs from May 1 as well!
ReplyDeleteGood job with setting expectations in the first sentence. Results, key objectives and projects. As an employee, at least one of those subjects has my attention. The next part is the bad news, with no relief in sight and skyrocketing costs. No one likes to be treated condescendingly and as an employee I would appreciate that you trust my intelligence to figure things out from your numbers presented. You know your audience so I will assume they are all able to recognize what you are trying to convey. Good job bringing things back to life with your closing statements.
Steve,
ReplyDeleteYour quarterly results announcement tends to be very unique when compared to our other classmates. I really like how you set up your announcement up in an outline format. By means of the first sentence all employees know what will be included in the body of the message. Furthermore, I thought your message, was clear, concise, and straight to the point. As we had learned earlier in the semester, such attributes are necessary when sending out announcements to the workforce.
You did something different than most here, but it was good. The way you draw attention to key points by using the arrows/bullet points help give the reader a quick update on the key points.
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