ConAgra Foods has reported results for its fiscal 2014 first quarter. Although total sales were up 27% to $4.201.8m from $3,302.3 vs. the year-ago period, this was entirely contributed by sales from Ralcorp, which ConAgra acquired in January 2013. Operating profit was up by 6.0% to $398m.
Sales for the Commercial Foods segment were $1.26 billion, essentially in line with $1.27 billion a year ago. Segment operating profit was $130 million, 7% below year-ago amounts.
Our first-quarter Consumer Foods volumes were lower than planned due to category and customer challenges,” said Gary Rodkin, ConAgra Foods’ chief executive officer. “We are revising our merchandising and promotion plans to improve our volume, and we have already begun additional SG&A cost management initiatives that should improve EPS performance as the fiscal year progresses. We still expect to post good EPS growth this fiscal year, and we are confident in our long-term EPS growth and cash flow outlook as the sizeable synergies from Ralcorp are achieved over the next few years.”
The company currently expects fiscal 2014 diluted EPS, adjusted for items impacting comparability, to be approximately $2.34-$2.38. This reduction from prior estimates reflects the softer-than-planned first quarter EPS, partially offset by additional SG&A cost management initiatives, a more favourable input cost environment, and the expectation for gradually improving Consumer Foods volumes.
Given the gradual nature of the anticipated recovery from the volume challenges, the company expects its fiscal 2014 second-quarter diluted EPS to be in the range of $0.55, adjusted for items impacting comparability. The company therefore expects the full year’s growth in EPS to occur in the second half of the fiscal year.
Sales for the Commercial Foods segment were $1.26 billion, essentially in line with $1.27 billion a year ago. Segment operating profit was $130 million, 7% below year-ago amounts.
Our first-quarter Consumer Foods volumes were lower than planned due to category and customer challenges,” said Gary Rodkin, ConAgra Foods’ chief executive officer. “We are revising our merchandising and promotion plans to improve our volume, and we have already begun additional SG&A cost management initiatives that should improve EPS performance as the fiscal year progresses. We still expect to post good EPS growth this fiscal year, and we are confident in our long-term EPS growth and cash flow outlook as the sizeable synergies from Ralcorp are achieved over the next few years.”
The company currently expects fiscal 2014 diluted EPS, adjusted for items impacting comparability, to be approximately $2.34-$2.38. This reduction from prior estimates reflects the softer-than-planned first quarter EPS, partially offset by additional SG&A cost management initiatives, a more favourable input cost environment, and the expectation for gradually improving Consumer Foods volumes.
Given the gradual nature of the anticipated recovery from the volume challenges, the company expects its fiscal 2014 second-quarter diluted EPS to be in the range of $0.55, adjusted for items impacting comparability. The company therefore expects the full year’s growth in EPS to occur in the second half of the fiscal year.
