US own-label group Ralcorp Holdings, which today (27 November) agreed to a takeover bid from ConAgra Foods, returned to profit in its fiscal 2012 year, boosted by acquisitions made during the year.
In the 12 months to the end of September, Ralcorp recorded earnings of US$73.4m compared to a net loss of $241.2m last year. A year ago, Ralcorp posted a loss amid impairment charges on its former branded cereal business, Post. Ralcorp spun off Post earlier this year.
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The company said its results include the effects of acquisitions including the North American private-brand refrigerated dough business of Sara Lee, Pastificio Annoni, Petri Baking Products, and Gelit.
However, operating profit in the period dropped to $273.1m, a 16.3% decline on the prior-year as a result of restructuring and plant closure costs, it said.
Net sales were driven by acquisitions, primarily Refrigerated Dough and Petri, as well as higher net pricing in response to rising commodity costs, partially offset by lower volumes. Revenues climbed 14% to $4.32bn.
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In the fourth quarter of the financial year, Ralcorp booked a $44.2m loss after a $48.9m loss on its investment in Post. Operating profit on amortisation and impairment charges. Net sales, however, increased.
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By GlobalDataThe results were published as Ralcorp announced it had accepted a takeover bid from ConAgra, a year after rejecting offers from the business.
ConAgra’s $90-a-share offer values Ralcorp at $6.8bn. The transaction is scheduled to be complete in March.
