Conagra lowers 2025 earnings outlook yet anticipates growth in seafood and protein

Thanks to a surprising turn of events in 2024, Conagra Brands, a renowned global food supplier based in Chicago, Illinois, is making adjustments to its earnings forecast for the rest of the fiscal year 2025.

In the second fiscal quarter of 2025, outlined in the report released on December 19th, Conagra revealed that their gross profit remained steady at USD 847 million (EUR 811 million), with an adjusted gross profit decrease of 2.3 percent year over year to USD 842 million (EUR 806.6 million). The company cited a mix of productivity gains and increased organic net sales, which were unfortunately overshadowed by rising costs of goods sold and unfavorable operating leverage.

Earnings per share took a hit as reported diluted earnings per share decreased by 1.7 percent to USD 0.59 (EUR 0.57). Adjusted earnings per share also saw a decline of 1.4 percent to USD 0.70 (EUR 0.67) during the period.

The Refrigerated and Frozen segment of Conagra’s operations experienced a significant 53.4 percent decline in operating profit, down to USD 103 million (EUR 98.7 million). Despite this drop, sales remained steady at USD 1.3 billion (EUR 1.2 billion) compared to the same quarter in the 2024 fiscal year.

As a result of this performance, Conagra is revising its guidance for fiscal year 2025, with expectations of organic net sales to either dip around 1.5 percent or remain flat compared to the previous year.

CEO Sean Connolly recognized these challenges, stating, “While momentum remains strong, we expect the business to be impacted by two headwinds in the back half, including higher-than-expected inflation and unfavorable foreign exchange rates, leading us to update our fiscal 2025 outlook.”

Despite these adjustments, Conagra remains optimistic about the growth potential in its seafood brands like Mrs. Paul’s and Van de Kamp’s.