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Conagra Brands misses profit view as raw material, shipping costs surge -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: Conagra Brands’ Birds Eye food packs are seen at a New York City store on November 15, 2021. REUTERS/Andrew Kelly/File Photograph

(Reuters) – Conagra Brands Inc failed to meet market forecasts for quarterly profits on Thursday. This was due to the fact that Slim Jim jerky maker suffered from higher shipping and raw material costs.

In recent months, the margins of packaged food businesses have been under severe pressure from an increase in commodity prices such as sugar, wheat and edible oils. Additionally, freight costs have risen due to an overburdened supply network.

Conagra, among others, has raised prices to reflect the sustained popularity of at-home cooking. Conagra saw its net sales increase 2.1% during the second quarter.

Also, it increased its forecast for core annual sales to an increase of around 3% over its earlier estimate of 1%.

Conagra lost $275.5million or 57c/share in its quarter ending Nov. 28. This was down from $378.9million or 77c/share a year prior.

Conagra, excluding one-time items earned 64c/share, which is below expectations of 68c/share.

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