Conagra delivered net sales of $2.9bn in the first quarter of fiscal 2023, a 9.5% increase over the period one year ago and up just over 24% compared to the same quarter three years ago (ie. pre-pandemic). A 9.7% increase in organic net sales was driven by a 14.3% improvement in price/mix, which was partially offset by a 4.6% decrease in volume.
In the quarter, net loss attributable to Conagra Brands was $78m owing to charges totaling $385.7m ($326.8 million after-tax) related to the goodwill and Birds Eye brand impairments, charges totaling $26.7m ($20.1 million after-tax) related to the impairment of businesses held for sale, and net charges totaling $4.9 million ($3.7 million after-tax) in connection with the company’s restructuring plans, according to the Conagra’s 10-Q SEC filing form.
Performance was strongest in the company’s snacks and frozen divisions which continued to gain market share on a one- and three-year basis.
“Overall, Conagra delivered strong first quarter results. We had robust net sales growth across our portfolio, mainly due to the impact of our inflation-driven pricing actions coupled with ongoing limited elasticities,” said CEO Sean Connolly on the company’s Q1 earnings call.
‘Highly relevant staples drive demand’
Sales of snacks and staples items in increased by 13% year on year in Q1 and were up 36% vs. 2019.
“In particular, we saw significant growth in sales of microwave popcorn, which increased more than 20% compared to the prior year,” said Connolly.
“Our highly relevant staples domain also accelerated sales growth increasing 8% compared to the prior year and 15% versus three years ago. This was driven by strong performance in single-serve dinners and entrees, with toppings, pickles and canned tomatoes.”