New CEO John Brase targets profitability after adjusted EPS of $0.47 misses prior-year $0.56 on flat sales.
Conagra Brands reported fourth-quarter organic net sales of $2.7 billion, unchanged from the prior year, as a 1.6% price-mix gain offset a 1.6% volume decline. Adjusted gross margin fell to 24.5% from 26.1% a year earlier, while adjusted operating margin narrowed to 11.7% from 13.2%.
Adjusted earnings per share came in at $0.47, down from $0.56 in the same period last year but above the $0.42 recorded in the third quarter. The company reiterated its full-year guidance ranges, citing a “dynamic environment” that requires “bold action” to restore margins.
CEO John Brase, in his first earnings call, outlined plans to simplify operations and increase investment, emphasizing a shift from volume growth to profitability. The stock yields nearly 9% following a 60% decline over the past year.