Conagra Brands Reports 2.9% Decline in Net Sales for Fiscal Year Ending May 31, 2026

Conagra Brands, Inc. reported a challenging fiscal year ending May 31, 2026, with total net sales of $11.28 billion, a decrease of 2.9% from $11.61 billion in the previous fiscal year. The decline was attributed to lower sales across several segments, particularly in Grocery & Snacks, Refrigerated & Frozen, and International, which outweighed a modest increase in the Foodservice segment. The company experienced a diluted loss per share of $4.00, a significant drop from earnings of $2.40 per share in fiscal 2025, primarily due to substantial impairment charges totaling $2.93 billion related to goodwill and intangible assets.

The fiscal year was marked by significant operational changes, including the divestiture of the Chef Boyardee and frozen fish businesses, which contributed to a net gain of $42.2 million. The company also made strategic acquisitions, including Sweetwood Smoke & Co. and a contract manufacturer, which added $10.6 million in net sales. However, these efforts were overshadowed by the overall decline in organic sales and the impact of inflation on input costs, which pressured gross profit margins.

Conagra's workforce remained stable, with approximately 17,400 employees as of May 31, 2026. The company emphasized its commitment to employee engagement and development, leveraging a performance-driven culture to enhance productivity. However, the company faced challenges in managing costs, particularly in light of rising commodity prices and supply chain disruptions, which affected profitability across all reporting segments. The Grocery & Snacks segment reported an operating profit of $885 million, down 13% from the previous year, while the Refrigerated & Frozen segment saw a 25.5% decline in operating profit to $485.6 million.

Looking ahead, Conagra Brands anticipates continued challenges in fiscal 2027, including weak consumer sentiment and ongoing inflationary pressures. The company plans to focus on innovation to meet evolving consumer preferences, particularly in health and wellness, as well as to implement pricing strategies to mitigate margin impacts. Management expects to increase prices on certain products to offset rising costs, although this may lead to reduced sales volumes. The company remains committed to enhancing operational efficiencies and maintaining a strong capital structure to support its growth objectives.