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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