Tough Year for Conagra; Declines in Sales and Profits

CEO Sean Connolly emphasized investments in brand were yielding results “and drove volume growth in our Domestic Retail Business.” But the bottom lines were unkind as Conagra Brands closed its 2024 fiscal year on May 26. Sales for the year dipped 1.8% to $12.051 billion and net income was nearly halved, to $347 million from last year’s $684 million.

“Looking ahead, we expect a gradual waning of the challenging industry trends seen throughout fiscal 2024 as consumers adapt and establish new reference prices,” he explained.

In the fourth quarter, underperformance was consistent across the operating units. Grocery & Snacks segment dipped 2.1% in the final three months, to $1.2 billion, “driven by a price/mix increase of 1.5% offset by a volume decrease of 3.6%” and lower consumption trends.

In the Refrigerated & Frozen segment, a price/mix decrease of 4.7% apparently helped a volume increase of 0.9%, but net sales still dropped 3.8% to $1.2 billion.

In Foodservice, a price/mix increase of 6.4% helped drive a volume decrease of 10.3%. Segment sales in the final quarter were $291 million.

International sales were a bright spot. Net sales grew 6.4%, after a scant (0.2%) price hike and “a strong performance in the company’s Mexico and global exports business.”

For the 2025 fiscal year just begun, the company predicts sales being flat to down 1.5%.