US: ConAgra posts increase in Q2 earnings
US food group ConAgra Foods has posted second-quarter diluted earnings per share of US$0.43, up 48% from $0.29 in the corresponding period last year.
However, the company said that excluding items affecting comparability, second-quarter diluted earnings per share were $0.40, up 38% from last year.
"Rapid expansion of our operating margins is helping build a solid foundation for the future," said CEO Gary Rodkin. "Together with earlier than expected completion of key divestitures, this is providing a significant boost to our fiscal 2007 results. Our progress puts us on track for a better EPS performance this year than we originally expected, and is providing the fuel that will allow us to make increased marketing and innovation investments."
Rodkin added that while the company expects productivity gains to be the main driver of solid earnings performance throughout the remainder of fiscal 2007, marketing investment would help deliver future bottom-line improvements through top-line growth in key brands.
For the quarter, sales in ConAgra's Consumer Foods division reached $1.8bn, on a par with last year. Operating profit from the division was $287m, 17% above the $245m reported last year. Improved mix, pricing gains and more effective trade spending contributed to the solid sales performance for key brands, the company said. Sales for the company's priority investment brands, which represented 75% of the segment sales, increased by 2% overall, while sales for the balance of the segment decreased by 6%.
Sales from the Food and Ingredients division were 10% up on last year at $886m, reflecting higher flour prices driven by increased input costs, stronger volumes for potato products, as well as better prices and sales mix across several other product lines. The division's operating profit rose by 28% to $118m.
Meanwhile, sales from ConAgra's Trading and Merchandising division increased by 3% to $297m, with operating profit up 19% at $39m. The company's International Foods division saw sales fall by 1% to $154m, but operating profit from the division rose from $15m to $18m.
Companies: ConAgra Foods
Almost a quarter of US consumers would avoid purchasing any products made by the manufacturer of a recalled product, new research has revealed....
ConAgra Foods has received a welcome boost from its non-food business as it prepares to issue its financial results for the last 12 months. The US company has forecast that its earnings per share will...
Organic Amish food producer Amish Naturals has named former ConAgra IT specialist Troy Treangen as executive vice president and chief operating officer....
A US Congressional hearing has opened to examine the role of regulatory bodies in protecting food safety....
ConAgra Foods has closed another of its plants in the US as it continues to streamline the business....
ConAgra Foods has revealed the measures it will take to reopen the Georgia production plant where its recalled peanut butter products were produced....
US dairy group Dean Foods has appointed Debbie Carosella as senior vice president, innovation....
US packaged foods group ConAgra Foods Inc. has reported third-quarter net income of US$192.6m, compared with a net loss of $25.2m in the same period last year when profitability was hit by restructuri...
- Why personalisation will take-off in US food
- US food next wave on display at Winter Fancy Food
- Comment: Meal kits in US - don't believe the hype
- Column: Kraft Heinz, Unilever and sustainability
- General Mills sales woes continue - analysis
- Unilever 'lining up spreads sale'
- UK own-label firm Park Cakes sold in MBO
- Immigration crackdown "risk" for US dairy industry
- BRF plant suspended amid bribery allegations
- Brazil giants JBS, BRF probed over alleged bribery