ConAgra Foods Inc. has announced its Q3 2016 financial report, showing estimate-beating profits and confirming that it is still on track to spin off its Lamb Weston frozen potato business later this year. The company had recently sold off its private label business in an effort to turnaround less than stellar profits in previous quarters, something CEO Sean Connolly says has been beneficial to the business.
“With the sale of our private label business completed, we are focused on successfully executing our plans to reduce costs and deliver improved price/mix, while continuing to segment our portfolio to enable more impactful marketing and support investments to drive future innovation and deliver improved margins and shareholder value,” explained Sean Connolly, CEO of ConAgra Foods in a statement. “We are on track to establish two independent segments with excellent operating foundations as we separate into two pure-play companies in the fall.”
For Q3, ConAgra reported a profit of $204.6 million compared with a loss of $954.1 million in Q3 2015, highlighting a growth of 0.6% in sales to reach $2.92 billion.
“Our results for the quarter exceeded our expectations as our actions to drive improved profitability continued to take hold,” Connolly continued. “Our focus on improving price/mix and driving efficiencies is enabling us to enhance our overall fundamentals in both of our segments resulting in solid comparable operating profit growth and expanding operating margins.”
ConAgra’s shares reached a yearlong high of $46.14 following the release of the report, up nearly $10 points over the same time period last year.
Other highlights from the company's report include:
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