CONAGRA BRANDS INC. SEC 10-Q Report

Conagra Brands Inc., a leading packaged foods company known for its diverse portfolio of brands, has released its 10-Q report for the first quarter of fiscal 2026. The report highlights the company's financial performance and operational activities amidst challenging market conditions, including inflation and changing consumer trends. Financial Highlights Net Sales: $2,632.6 million, reflecting a decrease of 5.8% compared to the first quarter of fiscal 2025, driven by lower consumption trends and divestitures.Gross Profit: $640.6 million, decreased due to lower net sales, input cost inflation, and a reduction in profit from divested businesses.Operating Profit: $347.4 million, impacted by lower segment operating profits in Grocery & Snacks, Refrigerated & Frozen, and Foodservice segments.Net Income: $164.5 million, significantly lower than the previous year due to higher income tax expense and lower operating income.Earnings per share — diluted: $0.34, down from $0.97 in the first quarter of fiscal 2025, reflecting the decrease in net income. Business Highlights Revenue Segments: The Grocery & Snacks segment experienced an 8.7% decrease in net sales, primarily due to lower consumption trends and the divestiture of the Chef Boyardee® business.The Refrigerated & Frozen segment saw a slight decrease of 0.9% in net sales, impacted by input cost inflation and the sale of the frozen fish business.The International segment faced an 18.0% decline in net sales, influenced by lower consumption trends and unfavorable foreign exchange rates.The Foodservice segment's net sales decreased by 0.8%, reflecting soft commercial traffic trends. Geographical Performance: The International segment was negatively impacted by a 1.3% decrease due to unfavorable foreign exchange rates, primarily due to the strength of the US dollar relative to the Mexican Peso.Sales Units: The Grocery & Snacks segment reported a 1.6% decrease in organic volume.The Refrigerated & Frozen segment saw a 0.5% increase in organic volume.The International segment experienced a 5.2% decrease in organic volumes.The Foodservice segment reported a 3.6% decrease in organic volume. New Product Launches: The company completed the acquisition of Sweetwood Smoke & Co., which contributed $10.6 million in inorganic net sales, indicating a strategic expansion in the smoked meat sticks category.Future Outlook: The company anticipates continued challenges from inflation and tariffs impacting costs of goods sold in fiscal 2026. While consumer trends are expected to improve over time, weak consumer sentiment is likely to negatively impact volumes in the near term. The company plans to continue evaluating the macroeconomic environment and take actions to mitigate negative impacts on its business.SEC Filing: CONAGRA BRANDS INC. [ CAG ] - 10-Q - Oct. 01, 2025