Conagra Brands forecast annual profit at the low end of its guidance range on Wednesday, citing elevated costs in a volatile macroeconomic environment.
Budget-conscious consumers continue to cut back on spending and opt for cheaper brands, dragging down sales of food companies that are already facing the brunt of the change in dietary preferences toward healthier foods due to the rising adoption of weight-loss drugs.
Conagra had previously planned price raises to offset higher costs of ingredients such as cocoa, olive oil, and palm oil, and tariffs on tin-plate steel.
It now expects annual adjusted profit per share of US$1.70, at the low end of its prior forecast of between $1.70 and $1.85.
The company expects annual net sales at the midpoint of its previous forecast of a 1% decline to a one per cent rise.
The company posted third-quarter revenue of $2.79 billion, compared to analysts’ expectations of $2.76 billion, according to data compiled by LSEG.
(Reporting by Sanskriti Shekhar and Neil J Kanatt in Bengaluru; Editing by Devika Syamnath)
