© Reuters. FILE PHOTO: Cans of Chef Boyardee, a product of ConAgra Foods, are seen on the shelf of a grocery store in the Brooklyn borough of New York December 16, 2015. REUTERS/Darren Ornitz/File Photo/File Photo2/2
(Reuters) -Conagra Brands Inc lowered its full-year profit forecast on Tuesday, as the packaged foods company expects to take a hit from higher commodity prices and shipping logjams.
Margins for packaged foods companies are expected to be pressured in the near term by rising prices of commodities, including sugar, wheat and soy, as well as higher freight and manufacturing costs due to global supply chains disruptions.
Shares of the Slim Jim beef jerky maker fell 3.2% in premarket trade as the company also lowered its annual outlook for adjusted operating margin to about 16%.
The company, which sells frozen vegetables, dinners and gourmet popcorns, said it expects adjusted profit to be about $2.50 per share in fiscal 2022, lower than the average analyst estimate of $2.72 per share, according to Refinitiv IBES data.
Conagra had previously forecast profit for the year to be in the range of $2.63 per share to $2.73 per share.
Net sales decreased 16.7% to $2.74 billion in the fourth quarter, but was slightly above the $2.71 billion estimate analysts had expected.
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