US-based ConAgra Foods has reported that its net earnings increased to $192.2m in the fourth quarter of 2013, compared to a loss of $86.2m in the same period a year ago, when the company incurred charges related to a change in accounting methods for its pension plans.
For the quarter ended 26 May 2013, net revenues increased 33.7% to $4.5bn, compared with $3.4bn for the same period the previous year, driven by the acquisition of private label food manufacturer Ralcorp.
Segment-wise, the consumer foods division posted 7% increase in sales to $2.3bn, reflecting 5% contribution from acquisitions, 3% organic volume growth, and -1% unfavorable impact from a combination of price/mix, while operating profit increased 8% to $291m. Brands including Banquet, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM, Peter Pan, Ro*Tel, Rosarita and Wolf achieved sales growth during the quarter.
The commercial foods segment, which sells potato products, seasonings and milled grain products to restaurants and other commercial channels, reported 4% rise in sales to $1.3bn, while operating profit increased 13% to $156m, due to good performance from the flour milling operations.
Ralcorp businesses contributed a total of $962m in sales and operating profit of $108m in the quarter.
For the full-year, ConAgra Foods reported 65.4% rise in net earnings to $773.9m, compared with $467.9m in 2012, while net sales increased 15.9% to $15.4bn, compared with $13.3bn in the previous year.
ConAgra Foods chief executive officer Gary Rodkin said that after the strong fiscal 2013 performance from the Commercial Foods segment, the company will be dealing with some profit headwinds related to the segment in fiscal 2014, and expects to manage through these and post strong EPS growth for the fiscal year.
"As we look to the longer term, given the opportunities ahead of us, we expect to grow comparable EPS by at least 10% per year from fiscal 2015-2017; this is expected to result in five consecutive years of double-digit EPS growth, and EPS in excess of $3.00 per share in fiscal 2017."
For the fiscal 2014, the company expects diluted EPS, adjusted for items impacting comparability, to be approximately $2.4, to grow comparable EPS by at least 10% per year from fiscal 2015-2017.
