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Tags: Financial Markets | Infrastructure | Money | Conagra | inflation | supply chain

Conagra Misses Profit View as Raw Material, Shipping Costs Surge

Conagra
Conagra, whose brands include Duncan Hines, Slim Jim and Birds Eye, now foresees fiscal 2022 adjusted earnings of about $2.50 per share. (AP)

Thursday, 06 January 2022 08:08 AM

Conagra Brands Inc. missed market estimates for quarterly profit on Thursday, as the Slim Jim jerky maker took a hit from surging prices of raw materials and higher shipping costs.

Margins of packaged food companies have come under pressure in recent months from a spike in prices of commodities such as wheat, sugar and edible oils, while an overburdened supply chain has driven up freight costs.

That has prompted the likes of Conagra -- which owns Birds Eye, Duncan Hines and many other nationally recognizable brands -- to hike prices, which along with sustained at-home cooking trends, helped the company's net sales rise 2.1% in the second quarter.

It also raised its annual core sales forecast to a rise of about 3% from its prior estimate of a 1% growth.

Net income attributable to Conagra declined to $275.5 million, or 57 cents per share, in the quarter ended Nov. 28, from $378.9 million, or 77 cents per share, a year earlier.

Excluding one-time items, Conagra earned 64 cents per share, below estimates of 68 cents per share.

© 2022 Thomson/Reuters. All rights reserved.


StreetTalk
Conagra Brands Inc. missed market estimates for quarterly profit on Thursday, as the Slim Jim jerky maker took a hit from surging prices of raw materials and higher shipping costs.
Conagra, inflation, supply chain
177
2022-08-06
Thursday, 06 January 2022 08:08 AM
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