ConAgra Foods Inc (NYSE:CAG)announced its first quarter financial results ended August 28, 2016 for the fiscal 2017. Sales decreased while profits rose year-over-year.
ConAgra Foods was a Chicago-based food maker, which was well-known for trademarks like Peter Pan peanut butter, Banquet frozen meals and Slim Jim snacks.
According to the report, net sales dropped 4.6% to $2.68 billion in the first quarter, which was below analysts’ estimate of $2.73 billion. The decline was due to the end of underpricing its products. For a long time, the company relied on discounts, while it currently seeks to transit to a more modern food company that provides more natural and healthy food.
The company also announced profits of $186.2 million, or $0.42 per share in the first quarter, which was above the loss of $1.15 billion, or $2.65 per share in the same period last year. Adjusted earnings per share was $0.61 per share, which was more than expectations of $0.48 per share.
In the report, the company said that Lamb Weston increased 4% in the first quarter, while sales dropped 2%. ConAgra Foods explained that the decrease in revenue was due to other divested businesses. The previous planned spinoff of Lamb Weston frozen-potato line will be concluded later this year, according to the company.
“The consumer today is incredibly smart and discerning and carefully makes product choices based on what’s provocative, contemporary and compelling,” said Sean Connolly, the Chief Executive of ConAgra Foods.
To reach the goal of becoming more focused businesses, the company already took some measures. In February, the company sold its private label business to TreeHouse Foods in a $2.7 billion deal. Earlier this week, the company also announced that it bought Frontera Foods Inc. and Red Fork LLC’s packaged foods businesses.