ConAgra Brands (CAG) saw its stock price plummet 5% in pre-market trading on Thursday following the release of its fourth-quarter earnings report. The food manufacturing giant, known for brands like Slim Jim and Swiss Miss, reported disappointing results that fell short of market expectations.
The company's Q4 net sales decreased by 4.3% to $2.8 billion, with organic net sales down 3.5%. ConAgra's adjusted earnings per share (EPS) also took a hit, declining 8.2% to $0.56. The EBIT (Earnings Before Interest and Taxes) margin for the quarter stood at 11.5%, reflecting the challenges faced by the company in maintaining profitability.
CEO Sean Connolly acknowledged the challenging environment, citing elevated inflation and macroeconomic uncertainty as ongoing concerns. Despite these headwinds, ConAgra plans to focus on investments in its frozen and snacks segments, enhance supply chain resilience, and maintain disciplined cost management in the coming fiscal year. The company aims to deliver sustainable growth and improved margins over time, but investors appear skeptical in the short term, as reflected in the pre-market stock plunge.
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