Dec 19 (Reuters) – Conagra Brands maintained its annual sales and profit forecasts on Friday, as pressured consumer spending and stiff competition weigh on demand for its pantry staples such as Slim Jim meat snacks and Act II popcorn.
The Hunt’s ketchup maker also swung to a quarterly loss as it incurred a $968 million non-cash impairment charge following a sustained decline in the company’s share price and market value.
While U.S. consumer sentiment improved in early December, budget-conscious shoppers still cited the burden of high prices and labor market uncertainties as they sought cheaper alternatives for pantry staples.
The company also faces tight competition in the U.S. snacks market as low-priced alternatives and price cuts by peers attract shoppers away from its offerings.
Conagra reported a net loss of $663.6 million in the second quarter ended November 23, compared to a profit of $284.5 million, a year ago.
On an adjusted basis, the company posted earnings per share of 45 cents that beat estimates by 1 cent.
The company on Friday also said it continues to expect annual net sales between a 1% decline to a 1% rise, and sees annual adjusted profit per share between $1.70 and $1.85.
Shares of the company, which also reported second-quarter sales in line with expectations, were up about 1% in premarket trading.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Leroy Leo)
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