Conagra Brands has run up an annual loss of $1.9bn on the back of impairment charges.
The US manufacturer said the $2bn non-cash goodwill and brand impairment charges, recorded in its fourth quarter, were mainly due to a “sustained decline” in its share price and market cap.
The charges were recorded against two Conagra divisions: $215m for Grocery & Snacks and $1.75bn for Refrigerated & Frozen.
The charge meant the Hunt’s ketchup maker posted a net loss attributable to the company of $1.92bn for the 53 weeks to 31 May. The year before, it generated a net profit of $1.15bn.
Over the year as a whole, Conagra booked more than $2.9bn in goodwill and other intangible asset impairment charges.
The Banquet meals owner posted an operating loss of $1.63bn, compared to an operating profit of $1.36bn a year earlier.
Net sales declined 2.9% to $11.28bn. Fourth-quarter sales improved 3.6% to $2.88bn. They were flat on an organic basis, Conagra said.
CEO John Brase, who took the helm last month, said: “In fiscal 2026, our team delivered results within our guidance ranges, navigating a dynamic operating environment while demonstrating the resilience of our business and disciplined execution across the organisation.”
The former JM Smucker and Procter & Gamble executive added: “As I immerse myself in the business, I see several near-term opportunities to strengthen the business including stabilising and restoring our margin profile, increasing investment behind our brands and supply chain, driving simplicity and reducing complexity across the organisation, and enhancing our financial flexibility.”
For the fiscal year ahead, Conagra is forecasting its organic net sales will decline 1-3%. Its net sales dipped 0.4% organically in the year just closed.
Conagra, which also lowered its dividend, is forecasting an adjusted operating margin of between 10% and 10.5%, as well as adjusted EPS of between $1.40 and $1.50.
In the year under review, the company’s adjusted operating margin was 11.3% and its adjusted EPS were $1.72.
Shares in Conagra, down more than 18% so far in 2027, had dropped 1.26% to $14.15 at 08:18 GMT today.
