Conagra books FY losses on hefty impairment

Conagra Brands has tally up an yearly nonaccomplishment of $1.9bn connected the backmost of impairment charges.

The US shaper said the $2bn non-cash goodwill and marque impairment charges, recorded successful its 4th quarter, were chiefly owed to a "sustained decline" successful its stock terms and marketplace cap.

The charges were recorded against 2 Conagra divisions: $215m for Grocery & Snacks and $1.75bn for Refrigerated & Frozen.

The complaint meant the Hunt's ketchup shaper posted a nett nonaccomplishment attributable to the institution of $1.92bn for the 53 weeks to 31 May. The twelvemonth before, it generated a nett net of $1.15bn.

Over the twelvemonth arsenic a whole, Conagra booked much than $2.9bn successful goodwill and different intangible plus impairment charges.

The Banquet meals proprietor posted an operating nonaccomplishment of $1.63bn, compared to an operating nett of $1.36bn a twelvemonth earlier.

Net income declined 2.9% to $11.28bn. Fourth-quarter income improved 3.6% to $2.88bn. They were level connected an integrated basis, Conagra said.

CEO John Brase, who took the helm past month, said: "In fiscal 2026, our squad delivered results wrong our guidance ranges, navigating a dynamic operating situation portion demonstrating the resilience of our concern and disciplined execution crossed the organisation."

The erstwhile JM Smucker and Procter & Gamble enforcement added: "As I immerse myself successful the business, I spot respective near-term opportunities to fortify the concern including stabilising and restoring our borderline profile, expanding concern down our brands and proviso chain, driving simplicity and reducing complexity crossed the organisation, and enhancing our fiscal flexibility."

For the fiscal twelvemonth ahead, Conagra is forecasting its integrated nett income volition diminution 1-3%. Its nett income dipped 0.4% organically successful the twelvemonth conscionable closed.

Conagra, which besides lowered its dividend, is forecasting an adjusted operating borderline of betwixt 10% and 10.5%, arsenic good arsenic adjusted EPS of betwixt $1.40 and $1.50.

In the twelvemonth nether review, the company's adjusted operating borderline was 11.3% and its adjusted EPS were $1.72.

Shares successful Conagra, down much than 18% truthful acold successful 2027, had dropped 1.26% to $14.15 astatine 08:18 GMT today.

"Conagra books FY losses connected hefty impairment" was primitively created and published by Just Food, a GlobalData owned brand.