Sara Lee 2008 Annual Report Download - page 3

Sara Lee Corporation 1
Dear fellow stockholders
Fiscal 2008 In a year of unprecedented commodity volatility –
highlighted by record prices for wheat and fuel, among many other
input costs – Sara Lee did what great companies do. We faced the
challenges, dealt with them rationally and made the right decisions at
the right times to ensure our success for the year. We delivered strong
sales growth of more than 10 percent and increased our adjusted
operating margin*by 0.7 percentage points to 8.1 percent. We met
or exceeded many of our forecasts for the year, including adjusted
earnings per share*of $0.83, up from $0.77 per share last year.
We increased marketing support for our brands and gained
share in many major categories and markets in which we compete.
And, to cap off the success, we built our first billion dollar brand in
Sara Lee . Driven by strong fresh bakery sales growth and the success
of new deli meat offerings, combined with the great foundation of
our heritage frozen desserts business, Sara Lee has achieved true
mega-brand status. It is our first, but won’t be our last.
Looking ahead With fiscal 2008 behind us, we look to fiscal 2009
and beyond with great optimism. We have our disciplined approach
to building our businesses: strong marketing behind innovative new
products, entry into new markets and continuous improvement in
everything we do. Our optimism also comes from our ongoing focus
on smart capital allocation with prudent investments to build on our
best opportunities for sustained growth.
People and culture I truly believe that a winning culture based on
shared mission, vision and values is at the heart of our company’s
success. We have always had great people at Sara Lee, but today
we are doing a better job of developing, managing and retaining our
talent. We’ll continue to have a relentless focus on the quality and
development of our employees at all levels and in every area of the
company to enable our long-term success.
Thank you Each year, this letter is a great opportunity to publicly
offer my gratitude to the many people who make Sara Lee what it
is and who give the company their best every day. We could not have
accomplished so much, nor would we have such great confidence
in the future, without the talents and hard work of our employees.
I thank each of them for the significant contributions they have
made thus far. I’d also like to thank our board of directors for their
involvement and insights and our customers for their trust in our
company, brands and products. Let me conclude by thanking you,
our stockholder, for your confidence in our ability to rebuild this great
company. I am pleased that we’ve begun to provide results that
justify your ongoing commitment to Sara Lee Corporation.
Brenda C. Barnes
Chairman and Chief Executive Officer
September 1, 2008
As I look across our company, I can say that I have
never been more proud, excited and optimistic about
Sara Lee – about where we are today and the direction
we are heading. Our incredible perseverance in fiscal
2008 led to solid improvement in our underlying
operating results, while we also built stronger brands
with better market positions. And, we continued to
improve essential capabilities such as innovation,
supply chain management and pricing. We’ve made
a lot of progress since we started our journey, but
we are reaching even higher for the future.
*See page 78 for a reconciliation of reported operating margin to adjusted operating margin
and reported earnings per share to adjusted earnings per share.