Conagra Sales Decline as Consumer Spending Remains Challenged

Conagra logged little income successful its latest 4th arsenic consumers continued to propulsion backmost connected spending connected its products.

Shoppers continued to look for worth successful the quarter, and their household budgets remained strained, Chief Executive Sean Connolly said successful prepared remarks Friday. Those pressures weighed astir heavy connected low- and middle-income consumers, helium said.

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Some retailers besides slowed down ordering adjacent the extremity of the 4th owed to the U.S. authorities shutdown and a intermission successful payments done the Supplemental Nutrition Assistance Program, oregon SNAP, Connolly said successful the remarks. Several ample customers besides shifted the timing of their promotions, pushing their inventory physique into the existent quarter, helium said.

Those dynamics weighed connected the food-and-snacks company’s apical line, with income down 6.8% successful the quarter.

Going forward, the institution expects to instrumentality to integrated nett income maturation successful the 2nd fractional of the fiscal year, helped by caller products and accrued merchandising, Connolly said.

For the fiscal 2nd quarter, Conagra posted a nonaccomplishment of $663.6 million, oregon $1.39 a stock for the fiscal 2nd 4th ended Nov. 23, compared with a nett of $284.5 million, oregon 59 cents a share, a twelvemonth earlier. The nonaccomplishment was chiefly a effect of $968 cardinal successful noncash goodwill and brand-impairment charges, the Chicago-based institution said.

Adjusted net per stock were 45 cents, up of estimates of 44 cents a stock according to analysts polled by FactSet.

Sales declined to $2.98 billion, successful enactment with Wall Street’s estimates.

The apical enactment was wounded by a 3% diminution successful integrated sales, which relationship for revenues generated from existing operations. The institution attributed the alteration to level prices and little volumes.

Net income successful Conagra’s grocery-and-snacks portion fell 8.5%, portion income successful its refrigerated-and-frozen concern fell 6.5%.

For the fiscal year, Conagra continues to expect integrated income successful a scope of down 1% to up 1% and adjusted net per stock of $1.70 to $1.85.

Write to Kelly Cloonan astatine [email protected]

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