Oct 13 Lamb Weston, the frozen potato business
that ConAgra Foods Inc is spinning off, expects net
sales to rise in the low-single digits in percentage terms in
the year ending May, the company said in its first investor day
conference on Thursday.
The company also forecast adjusted earnings before interest,
tax, depreciation and amortization (EBITDA) to rise in the
high-single digits during the same period.
The business, which will start trading as an independent
company in November, reported net sales of $3 billion and
adjusted EBITDA of $593 million for the year ended May 2016.
ConAgra, the maker of Chef Boyardee pasta and Slim Jim beef
jerky, announced the spinoff of Lamb Weston a year ago as part
of a series of changes to keep pace with the consumers' shifting
preference for less-processed foods.
Lamb Weston, which supplies frozen potato products to
restaurants and sells in stores under its Alexia brand, has more
than 6,000 employees and will be headquartered in Eagle, Idaho.
Lamb Weston expects to start operations as a standalone
company with net debt of about $2.4 billion and give out a
dividend of 75 cents per share in its first year.
(Reporting by Gayathree Ganesan in Bengaluru; Editing by Don