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Food & drink

Slim Jim parent Conagra swings to 1Q profit on grocery and snack segment growth

Shares of ConAgra Brands Inc (NYSE:CAG) declined 1% Thursday morning after the company reported mixed fiscal first-quarter results.

The Slim Jim and Birds Eye parent posted revenue of $2.9 billion, flat year-over-year and below Street expectations of $2.95 billion. Adjusted earnings were $0.66 per share, compared to a loss of $0.16 per share a year earlier and above analyst expectations of $0.60 per share.

Sales for the grocery and snacks segment increased 1.2% to $1.2 billion, while the refrigerated and frozen segment decreased 4.6% to $1.2 billion. The International segment rose 11.4% to $260 million.

CEO Sean Connolly said the company achieved a positive quarter despite macro challenges.

"I am proud of our team for delivering another quarter of strong margin recovery and EPS growth despite facing industry-wide macro dynamics that have affected consumer purchasing behavior and elongated the volume recovery period,” Connolly said.

Looking ahead, Conagra reiterated its fiscal 2024 guidance of 1% organic sales growth and adjusted EPS between $2.70 and $2.75.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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