Pinnacle Foods profit rises despite sales fall

Pinnacle Foods Inc. PF, +0.06% said its second-quarter earnings rose from a year earlier, though sales declined slightly.

The frozen foods company on Thursday reported earnings in the second quarter increased to $56.3 million, or 47 cents per share, from $18.6 million, 16 cents per share, in the year-ago quarter. The company said this performance was almost entirely driven by the favorable impact of items affecting comparability versus the year-ago period.

Adjusted diluted EPS increased to 59 cents, compared with 53 cents a year earlier. Analysts polled by FactSet were expecting adjusted earnings of 56 cents a share.

Sales fell 0.4% to $741.8 million, versus $744.6 million of sales in the year-ago quarter, on declines in the grocery and specialty segments. Analysts were expecting revenue of $750 million.

Conagra Brands Inc. said in June it will buy Pinnacle Foods for about $8.2 billion. The deal, which brings together brands like Healthy Choice frozen meals and Birds Eye frozen vegetables, would create a conglomerate with about $11 billion in annual sales and the second-largest frozen-food business in the U.S. behind Nestle SA, the companies said.

Pinnacle reaffirmed its full-year adjusted EPS guidance of $2.85 to $2.95.

Write to Michael Dabaie at [email protected]

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