Omaha, NB - Food processor ConAgra Inc., the maker of brands including Swiss Miss hot chocolate and Peter Pan peanut butter, said its fiscal first quarter earnings slipped but revenues rose on stronger sales of its well-known grocery brands.
ConAgra earned $109.3 million or 23 cents a diluted share in its fiscal first quarter ended August 30. That topped analysts' expectations by a penny, according to research firm First Call, but fell below last year's earnings of $118.3 million or 25 cents a diluted share.
The year-ago earnings figures were restated to reflect several acquisitions.
ConAgra's first quarter sales climbed to $6.48 billion from $6.26 billion a year ago.
"Most ConAgra businesses continued to perform well as indicated by double- digit operating profit growth in our grocery & diversified products and food inputs & ingredients segments," Bruce Rohde, ConAgra's president and chief executive officer, said in a statement.
"Although our third business segment, refrigerated foods, weighed on ConAgra's first quarter results, we see light at the end of the tunnel in fresh meat and poultry where excess industry production has pressured selling prices and margins for many months," he said.
ConAgra said volume sales and operating profits rose in its frozen foods segment while its foodservice division, which includes Lamb-Weston potato products, also posted higher profits. ConAgra grocery products recorded higher operating profit, supported by volume growth in Hunt-Wesson, Golden Valley and GoodMark.
In ConAgra's refrigerated foods business segment, operating profit fell 29% and sales were unchanged. Lower pork and beef raw materials prices were passed through as lower selling prices which constrained segment sales about 4%.
The branded packaged meats business recorded higher first quarter unit volumes and operating profit. A recent acquisition contributed to operating profit growth in the cheese and table spreads business.
Shares of ConAgra were up 50 cents at $28.25 on the New York Stock Exchange.
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