Conagra Manufacturers Inc. (NYSE:CAG) on Wednesday posted first-quarter fiscal 2026 outcomes that topped Wall Avenue expectations however confirmed year-over-year declines.
Conagra Manufacturers has a various portfolio of common meals merchandise, together with frozen meals, snacks, and pantry staples. A few of their most acknowledged manufacturers are Birds Eye, Wholesome Selection, Marie Callender’s, Reddi-wip, Slim Jim, and Hunt’s.
The corporate reported internet gross sales of $2.63 billion, down 5.8% from the prior-year interval, whereas adjusted earnings per share of 39 cents fell 26.4%.
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Wall Avenue analysts had anticipated internet gross sales of $2.62 billion and earnings of 33 cents per share.
The decline in internet gross sales mirrored a 5.1% drag from mergers and acquisitions, a 0.6% drop in natural gross sales, and a minor 0.1% overseas alternate influence.
Inside natural gross sales, a 0.6% value/combine profit, helped by favorable commerce expense timing and product combine, was greater than offset by a 1.2% decline in quantity.
Conagra reported money and money equivalents of $698.1 million on the finish of the primary quarter of fiscal 2026.
Sean Connolly, president and chief government officer of Conagra Manufacturers, commented, “We efficiently delivered on key provide chain aims, absolutely restored service ranges, and superior our portfolio reshaping which enabled us to additional cut back internet debt.”
“Whereas the working surroundings stays dynamic with ongoing inflationary strain and cautious client sentiment, our focus stays on disciplined execution and balanced capital allocation. Immediately, we’re reaffirming our fiscal 2026 steering,” he added.
Section outcomes highlighted broad-based weak point. Grocery & Snacks income fell 8.7% to $1.1 billion, together with a 1.0% decline in natural internet gross sales, as a 0.6% value/combine acquire was greater than offset by a 1.6% drop in quantity.
Refrigerated & Frozen gross sales slipped 0.9% to $1.1 billion. Nonetheless, natural internet gross sales rose 0.2%, reflecting a 0.5% enhance in quantity towards a 0.3% decline in value/combine, helped by simpler comparisons from final yr’s Hebrew Nationwide provide constraints.
Worldwide section income declined 18% to $212 million, with natural internet gross sales down 3.5% as a 1.7% value/combine enhance was offset by a 5.2% quantity drop.
Foodservice gross sales dipped 0.8% to $264 million, whereas natural internet gross sales rose 0.2%, pushed by a 3.8% value/combine acquire that was primarily offset by a 3.6% decline in quantity.
For fiscal 2026, the corporate reaffirmed steering, projecting natural internet gross sales development between -1% and 1%, an adjusted working margin of 11.0%–11.5%, and adjusted EPS of $1.70–$1.85. Curiosity expense is anticipated to succeed in about $390 million, with an adjusted tax charge of roughly 24%.
