Conagra sales volumes dip as new CEO Brase grapples with inflation pressures
CAG•Conagra reported first-quarter organic net sales volumes down 2.1% and adjusted gross profit down 3.9% to $619 million. Net sales of $2.60 billion and adjusted earnings of 41 cents per share beat estimates, and the company reaffirmed its fiscal 2027 organic sales decline forecast of 1% to 3%.
1. Quarterly results
Conagra Brands reported a 2.1% decline in first-quarter sales volumes, while pricing and product mix contributed 1% to organic net sales. Total net sales were $2.60 billion, narrowly above estimates of $2.59 billion, and adjusted earnings per share were 41 cents, compared with estimates of 28 cents. Adjusted gross profit fell 3.9% to $619 million, partly offset by $4 million in tariff refunds.
2. Outlook and pressures
The company reaffirmed its fiscal 2027 guidance for an organic net sales decline of 1% to 3%. CFO Dave Marberger said Conagra expects full-year volume declines in the mid-single digits, citing greater-than-historical volume sensitivity, particularly in frozen foods. CEO John Brase said the company remained on track to deliver the year; Conagra is also reviewing non-core assets, and Brase said brands without a strong strategic role could be divested.
