Conagra CFO Says Puerto Rico Assistance Delays Trimmed Revenue

(Bloomberg) -- Delays in U.S. government assistance to Puerto Rico hurt sales for Conagra Brands Inc. in its most recent quarter, Chief Financial Officer David Marberger said on Thursday.

“There were delays on the assistance people were relying on,” Marberger said in an interview with Bloomberg News, referring specifically to $600 million in food aid that was approved by Congress this summer but was not put into market immediately.

While the international business (which includes Puerto Rico) accounts for less than 10% of company revenue and Puerto Rico’s sales are a small part of that, the impact was enough to merit mention in a mostly positive earnings release. Chef Boyardee is Conagra’s largest brand on the island.

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The maker of Duncan Hines cake mixes and Slim Jim snacks reported “unplanned softness” for sales at its food service and international businesses. Even so, the company maintained that it sees growth strengthening going forward. Conagra shares rose 5.2% to $31.44 at 3:26 p.m. in New York on Thursday.

President Trump has categorized relief efforts for Hurricane Maria, which killed an estimated 3,000 people in 2017, as historic and local leaders as ungrateful for the $91 billion in aid he claimed the island has received. But U.S. government data show $42.9 billion has been allocated, with just $14.1 billion outlayed. Some island officials have blamed unwieldy bureaucracy for the delays.

--With assistance from Jonathan Levin.

To contact the reporter on this story: Deena Shanker in New York at dshanker@bloomberg.net

To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Jonathan Roeder, William Selway

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