ConAgra Brands, Inc.
ConAgra reported quarterly adjusted earnings per share of 53 cents, missing the analyst consensus of 60 cents. Net sales of $2.79 billion (down 3.8%) missed the street view of $2.84 billion.
The 3.5% drop in organic net sales was driven by a 1.9% negative impact from price/mix, primarily driven by the company's strategic investments and a 1.6% decrease in volume.
Also, the company estimates that results in the quarter were impacted by approximately $27 million due to temporary manufacturing disruptions in the Hebrew National business during the key grilling season.
In the quarter under review, adjusted operating margin was 14.2%, representing a 244 basis point decrease. Adjusted gross profit decreased 9.4% to $726 million.
Net sales for the Grocery & Snacks segment decreased by 1.7% to $1.2 billion in the quarter, the Refrigerated & Frozen segment decreased by 5.7% to $1.1 billion, the Foodservice segment decreased by 7.8% to $267 million, and the International segment decreased by 0.4% to $259 million.
Conagra's quarterly dividend payment of $0.35 per share will be paid on November 27 to stockholders of record as of the close of business on October 31.
Outlook: Conagra Brands is reaffirming its fiscal 2025 guidance, projecting organic net sales to be between a decline of 1.5% and flat compared to fiscal year 2024, and expects adjusted earnings per share (EPS) to be between $2.60 and $2.65, compared to an estimated $2.61.
Price Action: CAG shares are trading lower by 3.18% to $31.68 premarket at last check Wednesday.
