ConAgra Foods quarterly sales fall 2 per cent

ConAgra Foods, which became the biggest US private-label food company with its purchase of Ralcorp in 2012, has reported a drop of 2 percent in its quarterly sales, as per a report in Reuters.

The company, which owns brands like Chef Boyardee and Healthy Choice, fell 1.2 per cent to $36.66 in premarket trading on 17th December.

Meanwhile, the sales in the branded food business dropped by 2 per cent in the second quarter which ended on 23rd November due to weak demand for products such as Hunt's ketchup and Bertolli frozen meals.

ConAgra has not shown sales growth for the last six quarters, in part due to a general shift in consumer tastes towards food perceived as healthier. In its private label business, which makes cereals, pasta, snacks and sauces it has been facing intense competition to win contracts which is presently sold through retailers.

ConAgra said in June it expected a modest recovery in profit and revenue in the private-label business in fiscal 2015 as price concessions come to an end.

"Given recent performance and the current outlook, the company expects year-over-year profit improvement for this segment (private brands) to occur in fiscal 2016 instead of fiscal 2015," the company said in a statement on Thursday.