Pinnacle Foods’ quarterly sales are expected to be lower, due to increased competition in the grocery segment, the company said.
The food manufacturer operates national brands such as as Mrs. Paul’s, Van de Camp’s, Birds Eye, Duncan Hines, Earth Balance, Glutino, and Wish-Bone.
In its third quarter 2018 financial report, Pinnacle said its net sales are expected to be in the range of USD 740 million (EUR 644 million) to USD 745 million (EUR 648 million), compared with net sales of USD 749.8 million (EUR 652 million) in the third quarter of 2017.
“The approximate one percent decline in sales is primarily due to intensified competition, specifically in the Grocery segment, partially offset by ongoing growth in the Frozen segment, led by the Birds Eye franchise, which continued to drive the company’s robust innovation program,” the supplier said.
Growth in the company’s frozen foods segment – including among its Mrs. Paul’s, Bird’s Eye, and Van de Camp’s brands – is expected to partially offset the sales loss in the third quarter of 2018, Pinnacle said.
The firm’s third quarter net earnings are estimated to be in the range of USD 67 million (EUR 58 million) to USD 69 million (EUR 60 million), according to Pinnacle’s preliminary report.
“Profitability was driven by strong continued execution of the company’s productivity and cost management programs as well as a favorable tax rate versus the prior year period,” Pinnacle said.
Meanwhile, Pinnacle’s shareholders are scheduled to vote in a special meeting on 23 October regarding Conagra Brands’ acquisition bid. Conagra announced it was buying the frozen foods supplier for USD 10.9 billion (EUR 9.5 billion) in June. Conagra and Pinnacle expect the transaction to close by the end of October, as long as shareholders approve and other conditions are met.
