ConAgra Brands Inc (NYSE:CAG) has reported a decline in second-quarter sales and earnings and guided for a fall in full-year sales, sending its shares lower in Thursday premarket trading.
The consumer packaged goods holding company, which owns brands that include Slim Jim and Birds Eye, posted a 3.2% drop in net sales to $3.2 billion. Volumes in its Grocery & Snacks and Refrigerated & Frozen segments both declined on lower consumption trends.
Adjusted earnings per share (EPS) fell 12.3% to $0.71, above the $0.67 consensus estimate of analysts polled by Zacks Investment Research.
"Despite an ongoing challenging macro environment, we saw several positive signs in Q2,” CEO Sean Connolly commented in a statement.
“In particular, volume trends in our domestic retail business improved substantially, as inflation-driven volume declines were cut in half compared to Q1. Most importantly, our targeted investments in our frozen business generated strong lifts and market share gains. These developments reinforced our confidence in investing to build momentum in the second half and set up a strong FY25."
The company said full-year organic net sales are now likely to be 1% to 2% lower than those reported in 2023, down from its previous forecast for 1% growth. It expects adjusted EPS of between $2.60 and $2.65, down from its previous guidance of $2.70 to $2.75.
Ahead of the opening bell, Conagra’s shares were down 3% at $28.40.