SPROUTS A Healthy Baby is a Happy Baby
2014 Annual Report
SPROUTS A Healthy Baby is a Happy Baby
Dear
Shareholders,
Over the years trends come and go. Styles emerge and fade. But one thing stands the test of time – parents want to give their babies the best. At Sprouts, we want to give parents everywhere the tools they need to provide their children with premium, accessible, modern, easy-to-use organic baby products. Sprouts is focused on our core value that “a healthy baby is a happy baby.� That is why we meticulously evaluate every product we carry: from the food they eat to the clothes they wear. We created Sprouts to be trusted place of fun and comfort for you and your new family. Our goal is to provide you with the best possible service and to let you know how much we appreciate you! 2014 was a very good year for Sprouts. We achieved a record level of sales and earnings, gained market share, and enabled exceptional returns for our shareholders. We made good progress recovering from the abnormal spike in cotton prices which impacted our profitability in 2013 and the first half of 2014. To improve profitability, we strengthened our product offerings, pricing and promotional strategies, and supply chain capabilities. We are planning good growth in sales and earnings in 2015. To help our children live health conscious and earth friendly lives, and to simplify the way parents nurture baby, naturally.
Natalie Baker
President and CEO
“A Healthy Baby is a Happy Baby”
Why
Go Organic? Health
Due to the way organic food is grown and produced it generally contains higher levels of vitamin C and essential minerals such as magnesium, iron and chromium, that we can easily become deficient in, especially when living such busy lives. Organic food can also be higher in antioxidants, which are nature’s anticancer agents.
No Worrying Additives
So many foods these days are full of additives, which have been linked to certain health conditions such as heart disease, migraines and hyperactivity, especially in children. Organic food is strictly monitored and amongst the additives banned by the Soil Association are aspartame (sweetener), monosodium glutamate and hydrogenated fat.
GM-Free
All of our organics are 100% certified by the world leading organic certification programs such as GOTS (Global Organic Trade Standards), SKAL and The Control Union Certifications B.V. in The Netherlands. Those certifications are considered even stricter than USDA Organic.
There has been much debate on the use of genetically modified fruit, vegetables and crops in the UK over the past few years. The exact impact of these crops on the British farming industry, and also to our health, is still not known. Under organic standards the use of genetically modified crops is prohibited in any organic food.
Greater for Taste
A lot of top chefs have promoted the use of organic food and spoken of the difference in taste. Upon hearing about this taste difference I didn’t quite believe it. When tasting my first organic potatoes I was extremely surprised by how much better the taste was. I still get that feeling when tasting new organic food. Try a taste test for yourself: you will be pleasantly surprised.
s From start to finish, we’ve
got the best additive-free baby
All Organic Bath Products are BPA and PVC free!
products to aid your soothing
bath-time rituals for babies and children of all ages.
Organic soaps and washes,
including dye-free bubble baths, gently clean your sprout from head to toe, and not to mention paraben free baby shampoos,
conditioners and even soothing organic baby lotions.
s
Natural Baby Oil
2 in1Natural Shampoo/Conditoner
Natural Bubble Bath
Natural Baby Lotion
100% Pure Cotton Baby Washcloths
Bath
For Baby
Mixed Berries Sweet Baby Carrots
Sweet Peas and Green Beans
Apple Mango Pear
Baby
Food
s Sprouts’ mission is to make
delicious and nutritious foods
using only the finest organic ingredients. Our baby food stages grow with your child
to provide a healthy balance of wholesome & 100% organic
vegetables, fruits, whole grains, and proteins.
Our unique recipes will
nourish your child’s growth and
Infant Formula
encourage a love for healthy foods right from the start.
s
s Each item in our line
is constructed with care out of pure natural 100% organic
cotton. Sprouts is committed
to using only organic cotton, with mindful considerations
All Gear-n-Wear Products are BPA and PVC free!
of our world and the world of our children’s future.
Organic cotton is grown
without synthetic pesticides or fertilizers, so there are not any residues in the fabric when it gets to your nursery.
s
Organic Bottle
2 Pack Pure Cotton Socks Natural Rubber Baby Pacifiers
Baby
Gear-N-Wear
Financial Summary For 2014 Sprouts reported sales of CHF 83.6 billion and 7.5% organic growth on top of good growth in recent years. The organic growth was composed of 3.9% real internal growth and pricing of 3.6%. Foreign exchange had a negative impact of 13.4% and divestitures, net of acquisitions, a further 4.2%, mainly Alcon.
Report Not including the impact of the sale of Alcon, sales were down by 4.8%. We are therefore in a good position in 2015 to deliver the Sprouts Co. Model of organic growth between 5% and 6%, as well as improvements in the trading operating profit margin and underlying earnings per share in constant currencies.
Highlights for 2014 Net Sales | Operating Income | Net Earnings | Net Earning Margin | Dividends Per Share 2014
$78,938
16,021
12,736
13.9%
1.80
2013
$76,968
15,374
13,436
13.9%
1.64
2012
$79,257
15,979
12,075
14.2%
1.45
2014 Net Sales
By Market Maturity
55%
Developed
45%
Developing
34%
Health and Well-Being
48%
Beauty and Grooming
2014 Net Sales
By Business Segment
(% of total business segments)
18%
Household Care
SPROUTS A Healthy Baby is a Happy Baby