Conagra Brands Forecasts Flat Sales as Challenges Continue

Dow Jones
Jul 10
 

By Connor Hart

 

Conagra Brands expects organic sales to remain stagnant as elevated inflation and macroeconomic uncertainty continue to challenge operations.

The food and snacking-brands company--maker of Vlasic pickles and Snack Pack pudding cups--guided for organic sales, which account for revenues generated from existing operations, in a range of down 1% to up 1% for fiscal 2026.

Adjusted earnings per-share are projected to come in between $1.70 and $1.85. Analysts polled by FactSet are looking for adjusted earnings of $2.18 a share.

Chief Executive Sean Connolly said the company will look to offset macroeconomic challenges by investing in high-potential frozen and snacks domains, prioritizing volume strength and further enhancing supply chain resiliency.

Shares fell 4.8%, to $19.40, in premarket trading Thursday. Through Wednesday's close, shares have lost more than a quarter of their value in the past year.

Conagra's outlook came as the company logged lower sales in its fiscal fourth quarter, hurt by a business environment that Connolly said was more challenging than anticipated. He noted the company faced higher-than-expected inflation, foreign exchange headwinds and supply constraints.

The Chicago-based company posted a profit of $256 million, or 53 cents a share, for the quarter ended May 25. In the same period a year earlier, it notched a net loss of $567.3 million, or $1.18 a share.

Stripping out one-time items, adjusted earnings were 56 cents a share. Analysts expected 58 cents a share.

Sales fell 4.3% to $2.78 billion, missing analyst projections for $2.83 billion.

The top line was 3.5% lower on an organic basis. The company attributed this decrease to lower prices and volumes, hurt by weaker consumption trends.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

July 10, 2025 08:00 ET (12:00 GMT)

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