Act II Popcorn Maker Conagra Brands Q3 Profit Falls As Supply Constraints Bite

2 months ago 12

Shares of user packaged goods institution Conagra Brands Inc (NYSE:CAG) traded little successful premarket connected Thursday aft the third-quarter FY25 earnings.

The institution reported a third-quarter income diminution of 6.3% year-on-year to $2.84 billion, missing the expert statement estimation of $2.903 billion.

Organic nett income decreased 5.2%, driven by a 2.1% antagonistic interaction from price/mix and a 3.1% decrease successful volume.

Adjusted EPS of $0.51 missed the statement estimation of $0.53.

Gross nett declined 17.3% to $710 cardinal and the gross borderline contracted 331 ground points to 25%.

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Selling, general, and administrative expense, which includes advertizing and promotional expense, accrued 14.5% to $444 cardinal successful the quarter.

The operating borderline contracted 712 ground points to 8.4%.

The operating currency travel for 9 months totaled $1.3 cardinal with a escaped currency travel of $1 billion. The institution held $49.4 cardinal successful currency and equivalents arsenic of February 23, 2025.

The institution ended the 4th with nett indebtedness of $8.1 billion, representing a 5.9% simplification Y/Y.

“Our 3rd 4th unfolded mostly arsenic expected since our update successful February astatine CAGNY, with beardown depletion trends and stock show reflecting the continued resilience of our brands,” said President and CEO Sean Connolly.

“While shipments lagged depletion mostly owed to the discrete proviso constraints we announced successful February, we are making coagulated advancement successful restoring inventory and improving lawsuit work levels.”

Outlook Reaffirmed: Conagra sees FY25 integrated nett income to diminution 2%. The institution expects adjusted EPS of approximately $2.35, matching the statement estimate.

Price Action: CAG shares traded little by 1.59% astatine $25.96 successful premarket astatine past cheque Thursday.

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