US packaged food giants ConAgra said yesterday that its third-quarter earnings nearly doubled, as a sharp increase in sales overshadowed lower volumes.
The company which is based in Omaha, Nebraska revealed in a trading statement that a 307% rise in the sale of private label brands helped drive revenue for the first nine months of the year to $13.2 billion.
In terms of the Chef Boyardee maker's third quarter figures, ConAgra reported a profit of $234.3 million, or 56 cents a share, compared to $120 million, or 29 cents a share, in the same period a year earlier. This beat analysts earnings view of 60 cents a share.
Revenue grew 15% to $4.39 billion in Q3, and profits rose to $234.3 million from $120 million the year previous. However, gross margin narrowed to 22.2% from 22.7%.
“As we have previously discussed, there are operating challenges that have impacted segment performance and overall EPS growth, but we are encouraged by some pockets of strength,” CEO Gary Rodkin said.
ConAgra's results have been no doubt buoyed by the company's $4.95 billion acquisition of private-label food maker Ralcorp last year.
© 2014 - European Supermarket Magazine by Enda Dowling
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