On Thursday, Conagra Brands (CAG.N) reported that numerous price increases and easing cost pressures helped offset sluggish demand for the packaged food maker’s goods. The company also maintained its yearly forecasts.
Conagra, which struggled for months with increasing labor and raw material costs, increased the price of its products numerous times during the past several quarters. Now, some of the costs are beginning to decline from their heights.
While price increases helped gross margins increase 354 basis points to 28.3% in the first quarter, they hurt the company’s volume as consumers became less willing to spend money on pricey branded foods.
Compared to a deficit of $77.5 million, or 16 cents per share, the manufacturer of Slim Jim beef jerky declared a net income of roughly $320 million, or 67 cents per share, a year prior.
According to LSEG statistics, the company’s net sales for the first quarter came in at $2.90 billion, below analysts’ average estimate of $2.95 billion.
Before the bell, shares of the Chicago-based corporation decreased slightly to $26.38. The stock had decreased 31% as of the previous close.
Conagra anticipates 1% yearly organic net sales growth and adjusted EPS in the $2.70 to $2.75 range.
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