US food group ConAgra Foods has posted a strong rise in full-year profits despite a lacklustre performance from its consumer foods business.
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ConAgra today (27 June) posted a 15.5% increase in operating profit to US$1.7bn for the year to 27 May. The result was driven by strong earnings growth from its food and ingredients and its trading and merchandising divisions. Through its trading and merchandising arm, ConAgra manages a portfolio of agricultural and energy commodities.
Earnings from ConAgra’s consumer foods arm, which includes Reddi-wip and Peter Pan peanut butter and accounts for over half of the company’s profits, inched up 2.4% to $847.9m.
In the last 12 months, ConAgra incurred some $18m in costs linked to the recall of its peanut butter products. Earlier this year, more than 425 people were found to have fallen ill from salmonella poisoning after eating ConAgra’s Peter Pan products.
Revenue rose almost 5% to $12.1bn, largely thanks again to ConAgra’s trading and merchandising arm. Turnover from its consumer goods business dipped 0.3%.
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By GlobalDataCEO Gary Rodkin said increased marketing investment and innovation would boost the business over the next 12 months.
