Conagra Brands Q1 Profit Rises, Sales Down; Confirms FY27 View; Shares Drop

(RTTNews) - Packaged foods major Conagra Brands, Inc. reported Wednesday higher first-quarter profit, despite weak sales mainly in Grocery & Snacks and Refrigerated & Frozen segments. Further, the firm maintained fiscal 2027 outlook.

In the pre-market activity on the NYSE, the shares were trading 2.55 percent lower, at $13.75.

John Brase, president and chief executive officer of Conagra Brands, stated, "We delivered a solid start to fiscal 2027 with top line results largely in line with expectations and profit ahead of expectations amid a challenging operating environment. ... While there is more work to be done, we remain on track to deliver the year and are reaffirming our fiscal 2027 guidance."

Looking ahead for fiscal 2027, the company continues to expect adjusted earnings per share between $1.40 and $1.50 and adjusted operating margin between 10.0 percent and 10.5 percent.

Organic net sales for the year are still expected to be down 3 percent to down 1 percent compared to fiscal 2026.

In the first quarter, earnings totaled $174.3 million, 6 percent higher than $164.5 million last year. Earnings per share grew to $0.36 from $0.34 a year ago.

Adjusted earnings were $197.3 million or $0.41 per share for the period, compared to $189 million or $0.39 per share in the prior year.

Adjusted EBITDA increased 2.4 percent year-over-year to $451 million in the quarter.

The company's net sales for the period fell 1.4 percent to $2.596 billion from $2.633 billion last year.

Organic net sales decreased 1.1 percent, driven by a 1.0 percent positive impact from price/mix and a 2.1 percent volume decrease. In the quarter, the company gained dollar share in categories including frozen vegetables, pudding, chili, frozen breakfast, hot dogs, and frozen desserts.

Grocery & Snacks Segment net sales decreased 2.6 percent to $1.1 billion in the quarter, and net sales for the Refrigerated & Frozen segment fell 2.1 percent to $1.1 billion.

Net sales for the International segment, however, increased 2.7 percent to $218 million, and Foodservice Segment sales grew 3.2 percent to $273 million in the quarter.

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