Shares of Conagra Brands (CAG) are under pressure after the company missed first quarter sales estimates, citing weak consumer demand.
Morning Brief Host Brad Smith digs into the earnings report and breaks down some of the headwinds facing the company.
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This post was written by Melanie Riehl
Video Transcript
Also, we wanna take a look at ConAgra this morning.
Ticker symbol.
CAG.
Let’s load up the chart here for ConAgra brands.
Yeah, they missed first quarter sales estimates.
We demand packaged food company taking a hit as consumers look for lower prices here.
Shares down pre market by a little more than 8%.
Reported net sales.
They decreased 3.8%.
Organic net sales decreased 3.5%.
Company.
They did reaffirm its fiscal 2025 guidance, but it’s not great guidance.
Organic net sales are expected to be down 1.5% to flat compared to fiscal 2024.
The CEO perspective that they did provide as well, saying that this was continuing to be a challenging environment.
Domestic retail volume progressed in line with some of their expectations.
Uh, and they did increase some share across the portfolio in advance, their portfolio reshaping initiatives.
So all that considered, uh, it’s just important to think about the the broader kind of backdrop of this that 3.5 decrease in, uh 3.5% decrease in organic net sales, driven by a negative impact from price and mix, and they said that that was also largely driven by some of the strategic investments in the quarter as well, plus a 1.6% decrease in volume Shana.
