CHICAGO — A challenging consumer environment — particularly in the frozen and refrigerated aisles — weighed on earnings and sales at Conagra Brands, Inc. during fiscal 2024. Net income in the year ended May 26 totaled $347.2 million, equal to 73¢ per share on the common stock, down 49% from $683.6 million, or $1.43 per share, in fiscal 2023. 

The challenges were especially evident in the fourth quarter, when Conagra sustained a loss of $567.3 million. In the same quarter a year ago, Conagra had income of $37.5 million, equal to 8¢ per share.

Net sales also were lower for the full year and fourth quarter. In the 52 weeks ended May 26, sales fell to $12.05 billion, down 1.8% from $12.28 billion in fiscal 2023. Fourth-quarter sales declined 2.3% to $2.91 billion from $2.97 billion.

News of the weaker results sent shares of Conagra lower, falling to $27.46 per share on the New York Stock Exchange on July 11, the stock’s lowest level since March.

Sean Connolly, president and chief executive officer, said in a July 11 earnings call the company is investing in order to “nudge volumes back toward positive territory.”

“It’s a process, and we’ve moved the needle meaningfully, and that will continue to move positive,” he said. “But it’s a transition. It’s not one of these events where sprinkle little money on the consumer and they forget that they ever experienced runaway inflation. It’s a period of adjustment. And for us, that is clearly happening.”

In Conagra’s Grocery & Snacks business unit, net sales totaled $4.96 billion in fiscal 2024, down 0.5% from a year ago. The decline reflected a 3.1% decline in volume that only was partially offset by a 2.6% gain in price/mix.

Conagra said it saw softer consumption patterns in Grocery & Snacks but experienced unit share gains in microwave popcorn and seeds and in staples such as chili and cooking sprays.

Net sales in the company’s Refrigerated & Frozen segment totaled $4.87 billion in fiscal 2024, down 5.6% from fiscal 2023. Results reflected a 41% decline in volume and a 1.5% drop in price/mix.  

In the Foodservice segment, net sales in fiscal 2024 climbed 1% to $1.15 billion from $1.14 billion behind a 6.7% gain in price/mix that offset a 5.7% decline in volume.

International segment net sales were $1.08 billion in fiscal 2024, up 7.6% from a year ago. The increase reflected a 2.9% boost from foreign exchange as well as a 2.6% increase in volume and 2.1% gain in price/mix during the year.

For fiscal 2025, Conagra expects organic net sales of negative 1.5% to flat compared with fiscal 2024 and an adjusted operating margin of between 15.6% and 15.8%. Adjusted operating margin for fiscal 2024 was 16%.

Conagra is continuing to focus on the frozen category, where Connolly said single-serve meals are showing volume growth to the point where “our shares there hit record highs.” He said high-quality displays, materials, merchandising, advertising and innovation all have contributed to the growth and not simply prices.

Connolly described convenience as an advantage when it comes to Conagra’s frozen products since he said consumers don’t really like planning, preparing and cleaning up after meals.