Conagra Brands kept profits for the first fiscal quarter of 2022 ahead of pre-pandemic levels, despite inflationary pressures that led it to raise prices.
Net income for the quarter ending Aug. 29 was down 29%, to $235.4 million, compared with the first quarter of 2021, which was in the midst of the pandemic. However, compared to the pre-pandemic first quarter of 2020, income was up 35%.
Sales were down 1.0% for the quarter over last year, to $2.7 billion. The company attributed that mostly to the divestiture of several businesses, including the sale of Peter Pan peanut butter to Post Holdings late last year.
Rising costs for ingredient staples, including meats, grains and edible oils, led Conagra to raise prices on frozen foods by 3.5% and staple meals by 3.3%.
“We continue to experience ongoing inflationary pressure, but expect the sustained elevated consumer demand and the comprehensive actions we have executed and expect to execute in the future, will enable us to successfully deliver our adjusted [earnings] guidance for the year," CEO Sean Connolly said in a statement.
