Conagra Brands beats first-quarter estimates on pricing strength
CAG•Conagra Brands reported first-quarter net sales of $2.60 billion and adjusted earnings of 41 cents per share, beating estimates of $2.59 billion and 28 cents, respectively. The company reaffirmed its annual sales and profit forecasts.
1. Quarterly results
Conagra said pricing and product mix contributed 1% to total organic net sales, partly offsetting lower volumes. Adjusted gross profit fell 3.9% from a year earlier, partly offset by $4 million in tariff refunds.
2. Segment performance
Net sales in the Refrigerated & Frozen segment fell 2.1% year over year, as volumes decreased 1% and prices fell 1.5%.
3. Company plans
CEO John Brase said Conagra remained on track to deliver the year, while noting there was more work to do. The company halved its annual dividend in July and is reviewing non-core assets; Brase said brands without a strong strategic role could be divested and others added.
