Conagra Brands, which owns mainly US-based brands such as Bertolli, Swiss Miss and Slim Jim, has seen sales drop 9.9% in the third quarter of the year.
Excluding the impact of divestures and foreign exchange impact, net sales were down by 4.8%, with the company, formerly known as Conagra Foods, saying that it is making 'continued progress in building a higher quality revenue base'.
Its Grocery & Snacks segment saw a 5% decrease in sales to $850 million, with volume declining 5% due to a 'reduction in promotional intensity and the planned exit of certain lower-performing products', the company said. However, operating profit in this segment was up 32%.
In its Refrigerated & Frozen segment, net sales were down 6% to $666 million, with volume also declining 6%. Net sales in the International segment decreased 3% to $205 million, with a 2% decrease in foreign exchange impacting its performance.
Reshaped Portfolio
"I am pleased with our ongoing progress in reshaping our portfolio, capabilities, and culture," said Sean Connolly, president and chief executive officer of Conagra Brands.
"Our disciplined focus on controlling costs and upgrading the quality of our revenue base are delivering the desired impact. We are also excited about our innovation lineup, which we expect to begin hitting stores this summer."
Connolly added that now that the group has completed the third quarter of the year, it is updating its full year guidance to "reflect the beneficial timing of certain costs and the softer near-term macro environment. We expect to deliver adjusted diluted EPS at or slightly above the high-end of our range with net sales (excluding the impacts of divestitures and foreign exchange) at or slightly below the low-end of our range."
The group also noted that advertising and promotional expense decreased 3% to $91 million in the quarter, reflecting 'improved efficiency in spend and alignment of investments with the company's portfolio segmentation'.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
