Conagra Brands (NYSE:CAG) has disclosed mixed financial results for its first quarter of fiscal 2025, which ended on August 25, 2024.
The food corporation experienced a notable 3.8% decline in net sales, totalling $2.8 billion.
During the same period, Conagra's operating margin suffered a decrease of 247 basis points, falling to 14.4%.
The company also reported a significant drop in gross profit, which went down 10.2% to $739 million, with adjusted gross profit seeing a 9.4% decline to $726 million.
Despite these challenges, net income attributable to Conagra Brands saw an unexpected rise, surging 46% to $467 million, or $0.97 per diluted share, compared to $320 million, or $0.67 per diluted share, in the corresponding quarter of the previous year.
This resulted in a 44.8% increase in reported diluted earnings per share (EPS) to $0.97.
Meanwhile, the company’s adjusted EBITDA decreased by 13.8% to $528 million for the quarter, largely due to a decrease in adjusted operating profit.
Looking forward, Conagra's fiscal 2025 guidance anticipates organic net sales to range from a 1.5% decrease to flat compared to fiscal 2024.