Conagra Brands posted the results for the first quarter of fiscal 2026, which ended August 24, as both sales and earnings declined.
Net sales fell 5.8% from a year earlier, while organic net sales slipped 0.6%. Reported operating margin came in at 13.2%, down 118 basis points. On an adjusted basis, operating margin was 11.8%, a drop of 244 basis points.
Diluted earnings per share were USD 0.34, down 64.9%. Adjusted EPS was USD 0.39, representing a 26.4% decline.
Despite the softer results, the packaged food company reaffirmed its full-year fiscal 2026 guidance, projecting organic net sales growth in a range of negative 1% to positive 1% compared with fiscal 2025.
Conagra also expects an adjusted operating margin between 11.0% and 11.5%, and adjusted EPS between USD 1.70 and USD 1.85.
“I am pleased by the solid progress we made in the first quarter with top line improvement and continued strategic execution across our portfolio,” said Sean Connolly, president and chief executive officer.
“We successfully delivered on key supply chain objectives, fully restored service levels, and advanced our portfolio reshaping which enabled us to further reduce net debt. While the operating environment remains dynamic with ongoing inflationary pressure and cautious consumer sentiment, our focus remains on disciplined execution and balanced capital allocation. Today, we are reaffirming our fiscal 2026 guidance.”
For more information, visit https://www.conagrabrands.com