US-based packaged foods company ConAgra Foods has reported a $1.2bn loss , or $2.88 a share, in the quarter that ended 30 August, compared with profits of $482.3m, or $1.14 a share, in the period last year.
The company is currently seeking to find a buyer for its private-label business, and shifts focus to older brands like Hunt's tomato sauce and Reddi-wip dessert topping.
The Nebraska-based food maker has put up its private-label business for sale for $1.95bn. ConAgra, which acquired the business in 2012 for $5bn, announced its plans to sell the unit in June, after having written down its value to by $2.2bn.
ConAgra Foods CEO Sean Connolly said, "We are off to a strong start in fiscal 2016. While early days, we are making good progress against our plan to drive margin improvement within a more focused portfolio.
"In the near-term, we expect to grow profits modestly in fiscal 2016 across the Consumer Foods and Commercial Foods segments by building on the stronger foundations established last fiscal year, with an emphasis on improving price/mix and implementing relentless cost discipline.
"Our entire organization is focused on delivering long-term top- and bottom-line improvement. Rigorous portfolio segmentation work and improving innovation capabilities should benefit our top line over time, and we are in the midst of developing aggressive cost savings plans to drive improved SG&A, trade spend efficiency, and COGS. We are confident in our ability to unlock long-term value as we execute our plans to become a leaner, more focused company."
