Conagra Brands Beats Revenue Expectations On Strong Demand
On Wall Street, Conagra Brands outperformed expectations in the quarter. More and more people are buying their staples and frozen meals because they are staying at home to eat.
They make Slim Jim beef jerky and have started cutting prices and creating more products to attract people watching their money.
Food manufacturers are increasingly trying to prevent a decline in sales volumes, driven by higher commodity prices.
People are buying more Conagra sauces, snacks and basic kitchen items because they are trying to save money while dealing with inflation.
Conagra reported sales of $3.03 billion for the quarter, slightly topping expert expectations. For their food and snack segment, sales grew 3.4%, bringing in $1.3 billion. Their profits also rose 16.7%.
However, sales in their refrigerated and frozen food segment fell 8.1% to $1.2 billion.
CEO Sean Connolly said they’re making progress. They sell more in stores because they invest in things like frozen foods.
They also save money, giving them a greater return on investment in their raw materials. They are also doing better financially overall, reducing their costs.