The packaged-food company expects organic sales to grow about 1% for FY22
ConAgra is the latest of food companies to say they are overpaying for ingredients and ingredients, including cooking oil and steel, amid rising costs of materials and fuel and labor. general mills Inc.
Projected higher inflation last month as it grapples with rising labor, transportation and supply-chain costs.
For the quarter ended August 29, Conagra reported net income attributable to the company of $235.4 million, compared to $329 million in the same period last year. Net sales for the fiscal first quarter fell from $2.68 billion to $2.65 billion, ahead of expectations from analysts surveyed by FactSet.
The company said food service net sales rose 20.9% to $240 million as restaurant traffic continued to recover from the effects of the pandemic. However, sales of the grocery and snacks segment fell 4.9% to $1.1 billion.
Overall, the company still expects high consumer demand. It expects organic net sales for fiscal 2022 to grow approximately 1% compared to its prior outlook of nearly flat.
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