Conagra Brands reports fourth quarter results amidst a time of inflation and economic uncertainty
Conagra Brands, Inc. reported results for the fourth quarter and full year fiscal year 2025.
For the fourth quarter, Conagra Brands reported net sales decreased 4.3% with organic net sales having decreased 3.5%, and for the full fiscal year 2025 reported net sales decreased 3.6% and organic net sales decreased 2.9%.
Sean Connolly, president and chief executive officer of Conagra Brands, commented upon the release of the results: "I'm proud of the Conagra team for their hard work throughout fiscal 2025 as we navigated an environment that proved to be more challenging than we anticipated. We entered the year focused on returning volume to growth and delivered consistent progress through the first half. This resulted in a return to absolute volume growth in domestic retail in the second quarter, best-in-class market share performance, and first half EPS in line with our plan. While the second half was impacted by higher-than-expected inflation, foreign exchange headwinds, and supply constraints, our long-term value creation strategy remains unchanged."
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"In fiscal 2026, we expect elevated inflation and macroeconomic uncertainty to persist but remain focused on proactively managing the business by investing in our high-potential frozen and snacks domains, prioritizing volume strength, and further enhancing supply chain resiliency while continuing disciplined cost management and focus on cash flow. We believe that these actions will enable Conagra to deliver sustainable growth and stronger margins over time, creating meaningful long-term value for our stakeholders," he added.
The decrease in the fourth quarter in organic net sales was driven by a 1.0% negative impact from price/mix and a 2.5% decrease in volume, primarily due to lower consumption trends. In the quarter, the company gained volume share in categories including frozen desserts, microwave popcorn, refrigerated whipped topping, and pudding.
In the grocery and snack segment, net sales decreased by 2.1% to US$1.2 billion in the quarter, while in the refrigerated and frozen food segment, fourth quarter results showed a decrease of 4.4% to $1.1 billion. In the foodservice segment, Conagra brands reported a decrease of 4.0% to US$280 million.
