Omaha, Neb.-based ConAgra Foods Inc. and Minneapolis-based General Mills Inc. both are banking on earnings growth in the second half of their fiscal years, following muted first-half results with margins down from higher costs and sales volume crimped by rising prices, reports The Wall Street Journal.
On Dec. 20, “the two packaged-food giants posted double-digit percentage declines in fiscal second-quarter earnings. General Mills earnings fell 28 percent, including charges related to acquiring 51 percent of the Yoplait yogurt international business. ConAgra’s earnings fell 14.5 percent, as it experienced hedging losses and restructuring charges,” the Journal says.
But both companies’ backed their earnings view for the year on expectations for strong finishes.
For its quarter, General Mills reported profit fell to $444.8 million from $613.9 million a year ago. Excluding one-time items, per-share earnings were flat year over year. Sales jumped 14 percent to $4.62 billion.
The Journal reports that ConAgra’s profit dropped to $171.8 million from $200.9 million, while revenue increased 8.1 percent to $3.4 billion.