Packaged foods company Conagra Brands (NYSE:CAG) guided fiscal 2025 profit below expectations and reported mixed fourth quarter results, sending its shares down as much as 4.7% on Thursday.
The company said it expects to earn adjusted earnings between $2.60 and $2.65 per share in 2025, below the average analyst estimate of $2.69. Organic net sales are expected to be negative 1.5% to flat compared to 2024, with an adjusted operating margin between 15.6% and 15.8%. It also expects cost of goods sold inflation to continue into next year.
In its grocery and snacks segment, quarterly sales decreased by 2.1% to $1.2B. Refrigerated and frozen unit sales were $1.2B, down 3.8%. Foodservice sales fell 3.9% to $291M, and international sales rose 6.4% to $267M.
“Looking ahead, we expect a gradual waning of the challenging industry trends seen throughout fiscal year 2024 as consumers adapt and establish new reference prices. We will continue to invest wisely to support our brands and facilitate that process,” CEO Sean Connolly said in a statement.
Net loss attributable to the company was $567.3M or $1.18 loss per share, for the period ended May 26, compared with net income of $37.5M or 8 cents profit last year.
Excluding items, the Chicago, Illinois-based company earned $0.61 per share profit, beating estimates by 4 cents. However, revenue fell 2.3% from last year to $2.91B and missed consensus by $20M.
Additionally, the company approved an annualized dividend rate of $1.40 per share, or $0.35 per share on a quarterly basis, in line with its previous distribution.
CAG -2.6% at $28.06 in trading session, shares down 14.8% in the last twelve months.