Conagra Brands cuts annual profit forecast on cost pressures By Reuters

Conagra Brands cuts annual profit forecast on cost pressures By Reuters


2/2
© 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 Photo

2/2

(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.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: