Conagra Reports Rising Demand as Shoppers Buy More Food--Update
March 31 2020 - 8:58AM
Dow Jones News
By Micah Maidenberg
Conagra Brands Inc. said demand for its products has jumped as
consumers race to grocery stores to stock up on food as the
coronavirus keeps restaurants closed and people inside.
Conagra, which makes Healthy Choice meals, Orville Redenbacher's
popcorn and other packaged foods and snacks, has seen significantly
elevated demand in its current fiscal quarter for its business
serving grocers and retailers, Chief Executive Sean Connolly said
in a statement Tuesday.
"On a quarter-to-date basis, shipments and consumption in our
domestic retail business have increased approximately 50%," more
than offsetting falling demand from restaurant buyers, he said.
Shoppers in the U.S. have been filling up their pantries and
refrigerators, purchasing more of everything from pasta and beans
to canned meat and salty snacks, according to research firm
Nielsen. The surge has put pressure on grocers and their
workforces.
Earlier this month, General Mills Inc. said it was running
factories at near capacity to keep up with higher demand from
retailers.
With demand rising from retail customers, Chicago-based Conagra
now expects stronger financial results for its current fiscal
year.
The company said sales for its quarter that ended Feb. 23 fell
to $2.56 billion from $2.71 billion the year earlier. Analysts
polled by FactSet expected Conagra to generate $2.58 billion in
sales for the latest period.
Conagra said earnings dropped to $204.4 million, or 42 cents a
share, from $242 million, or 50 cents a share, the year
earlier.
It earned an adjusted profit of 47 cents a share for the latest
period, 2 cents short of forecasts.
(END) Dow Jones Newswires
March 31, 2020 08:43 ET (12:43 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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