ConAgra Foods saw sales grow in the third quarter in both its commercial and consumer foods divisions, while profits fell 57 percent, largely because of costs related to the acquisition of store-brands food manufacturer Ralcorp.
ConAgra Foods saw sales grow in the third quarter in both its commercial and consumer foods divisions, while profits fell 57 percent, largely because of costs related to the acquisition of store-brand food manufacturer Ralcorp.
The Omaha-based maker of packaged foods, including Marie Callender’s and Healthy Choice brands, reported net income of $120 million, for earnings per share of 29 cents, compared with $280 million, or 68 cents per share, in the third quarter of 2012.
Adjusted for items affecting comparability, ConAgra said earnings per share were 55 cents, compared with 53 cents the year before.
Total sales grew 13 percent to $3.85 billion, including $292 million from Ralcorp.
Chief executive officer Gary Rodkin told analysts that demand for private label food is “here to stay,” and that while there will be some “bumps and bruises” integrating the Ralcorp business, “we’re confident it will serve our shareholders well.”
The Ralcorp acquisition closed in January and ConAgra on Wednesday reaffirmed expectations for full-year adjusted earnings per share of $2.15, including an approximately 5-cent benefit from Ralcorp.
The company will issue a dividend of 25 cents per share on May 31.