ConAgra Processing the Future

Aditya is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

ConAgra Foods, Inc. (NYSE: CAG) - operates as a food company primarily in North America. The company operates through two segments, Consumer Foods and Commercial Foods. The Consumer Foods segment provides branded, private label, and customized food products in various categories, such as meals, snacks, desserts, breakfast products etc. The Commercial Foods segment offers commercially branded foods and ingredients that are sold primarily to foodservice, food manufacturing, and industrial customers. As per the recent quarter ended on 25th November 2012 the company has reported net revenue of $13.77 Billion and diluted Earnings per share amounts to $1.59.

 Other Food Companies

 Nestle (NASDAQOTH: NSRGY) provides nutrition, health, and wellness products worldwide. The company also offers baby foods, chocolate and confectionery, coffee products, dairy products, ice cream, sports nutrition products etc. we just need to name any food product Nestle has it under his umbrella. For the third quarter the sales has rose by 2.1% to $12.94 billion from $12.67 Billion, it also booked a internal target growth of 3.4% Nestlé’s results show it outpacing its rivals. Nestlé’s diversified quality in the food business, and its exposure to the pharmaceutical industry, makes it an attractive pick for investors.

 H. J. Heinz Company (NYSE: HNZ) –manufactures and markets food products for consumers and foodservice and institutional customers internationally. Its principal products include ketchup, condiments and sauces, infant nutrition, and other food products. For the most recent quarter ended it has booked a revenue of $ 11.62 Billion and Diluted Earnings per shares of $3.12. The figures are quite disappointing as compares to his rivals in the market. The mass consumer remains muted and price conscious while sales channels are shifting in importance towards the discount stores, but within emerging markets there are good growth prospects.

What next for ConAgra Foods, Inc.

ConAgra Foods to Acquire Ralcorp (NYSE: RAH), the Largest Private Label Food Manufacturer in the U.S, for $90 Per Share in Cash. Ralcorp shareholders will receive $90 per share in cash for each outstanding share of common stock held.  The board of directors approved a dividend payment of $0.25 per common share to be paid on March 5th, 2013. ConAgra Foods, has also introduce Sweet Potato Rolls recently, Alexia's Sweet Potato Rolls can also go conveniently from freezer to table in less than 20 minutes. This will spread in the whole market very soon.

Profitability

ConAgra Foods Reports Strong Second-Quarter EPS Growth raises Fiscal 2013. Diluted EPS from continuing operations were $0.51 in the fiscal second quarter, up by 19% over $0.43 earned in the year-ago period. Excluding $0.06 of net expense in both the current quarter and the year-ago period from items impacting comparability. The Consumer Foods segment posted sales of $2,423 million and operating profit of $286 million for the second quarter. Sales increased 11%, reflecting 11% contribution from acquisitions, 4% favorable price/mix, and a 4% organic volume decline. More over a dividend of $ 0.25 is also declared.

Final Verdict

ConAgra is definitely on a hike as its financial results are above expected. More over the recent announcement of dividend has also built-up a confidence level of investors. As conAgra is diversifying its business by introducing new products every year the brand value associated with is also increasing. Hence I strongly suggest that conAgra should definitely a part of your earning portfolio.


adityamanpuria has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend H.J. Heinz Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

blog comments powered by Disqus