US-based ConAgra Foods reported that its net income soared 166.6% to $250.1m in first quarter of fiscal 2013, up from $93.8m in fiscal 2012, driven by acquisitions and increase in marketing investment.
Net sales for the quarter ended 26 August 2012 increased 6.7% to $3.31bn, compared to $3.10bn in the previous year.
Recently, the company completed a number of acquisitions which boosted the company's results - it acquired the Bertolli and PF Chang's Home Menu frozen meals businesses from Unilever in August 2012; Odom's Tennessee Pride and Kangaroo Brands' pita chip business in May 2012; Del Monte Canada in March 2012; and National Pretzel in December 2011.
During the quarter, ConAgra Foods also increased the marketing spend at a double digit percentage rate, in order to build long-term brand strength.
ConAgra Foods chief executive officer Gary Rodkin said the company was able to report a strong earnings even under challenging marketplace conditions due to effective margin management initiatives, contribution from acquisitions, and strong performance of the company's potato operations.
"We have raised our EPS expectations for fiscal 2013 while continuing to make strong levels of marketing investment as part of long-term brand building initiatives," Rodkin added.
In fiscal 2013, the company expects earnings per share in the range of $2.03 to $2.06 - up from its prior forecast of $1.95 to $1.99.
