ConAgra Foods Inc has reported results for the fiscal 2010 first quarter ended August 30, 2009.
Gary Rodkin, ConAgra Foods’ chief executive officer, said, “We are off to a strong start in fiscal 2010. The Consumer Foods segment posted significantly improved operating profits, along with good sales trends across the consumer branded portfolio, and we expect the balance of the year to show strong profits for this segment due to manageable inflation, good cost savings, sales growth, and favorable mix.”
The Consumer Foods segment posted sales of $1.860 billion and operating profit of $250 million for the quarter. Sales increased 1% as reported. ConAgra intentionally eliminated a number of low-margin SKUs and scaled back on some low-margin customer channels and geographic markets, which negatively impacted sales by approximately 1%, but which improved profit margins. Unfavorable foreign exchange rates negatively impacted sales growth by about 1%.
Operating profit of $250 million was 34% ahead of last year’s $186 million. Excluding $11 million of net benefit in the year-ago period from items impacting comparability, operating profit of $250 million in the current quarter was 43% above the comparable year-ago amount of $175 million.