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Conagra Posts GAAP Loss on $968 Million Impairment, Beats on Adjusted EPS and Reaffirms Outlook

Management cited value-seeking consumers and quarter‑end ordering shifts for the sales decline.

Overview

  • Adjusted earnings were $0.45 per share versus a $0.44 consensus, but a $663.6 million net loss reflected noncash goodwill and brand‑impairment charges.
  • Revenue fell 6.8% to $2.98 billion with organic sales down 3.0% as Grocery & Snacks declined 8.5%, Refrigerated & Frozen 6.5%, International 5.4%, and Foodservice 1.3%.
  • Profitability weakened, with adjusted gross margin down 292 basis points to 23.4% and adjusted EBITDA down 25.2% to $478 million.
  • Full‑year guidance was maintained, including adjusted EPS of $1.70 to $1.85, organic net sales from down 1% to flat, and adjusted operating margin of roughly 11.0% to 11.5%.
  • The company warned tariffs could add about 3% to cost of goods sold and projected roughly 7% total COGS inflation for fiscal 2026; shares traded lower intraday following the report.