(Reuters) - Lamb Weston, the frozen potato business that ConAgra Foods Inc (CAG.N) 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 Sebastian