Improved sales and profitability at ConAgra Foods’ consumer foods unit has boosted earnings at the US food giant.
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The maker of Chef Boyardee today (25 March) posted a 19% jump in third-quarter earnings, which rose to US$229.6m in the three months to 28 February, up from $193.2m last year.
While total revenue fell 0.9% to $3.1bn, the company said that its consumer foods business was able to gain market share.
Sales at the consumer-foods unit, ConAgra’s biggest business, rose 2.2%, with strong performances of the Banquet, Chef Boyardee and Hunt’s brands.
Revenues at the commercial-foods segment dropped 6.3%.
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By GlobalDataProfitability was also improved by margin gains, which were helped by lower commodity costs, the company said. Gross margin rose to 25.5% from 23.7% amid the cost cuts, ConAgra revealed.
“Continued momentum in our sales, innovation, marketing, and cost-savings initiatives is generating the second-half results we expected,“ CEO Gary Rodkin said. “We are confident that our strong business foundation has positioned us for sustainable profitable growth.”
ConAgra said that fiscal 2010 diluted EPS from continuing operations, excluding items impacting comparability, remains “on track” to “approach” $1.73.
For ConAgra’s full earnings release click here and click here for the company’s commentary on promotional spending in the US.
