Conagra Brands has announced plans to increase investment in its brands and supply chain after reporting fourth-quarter and full-year fiscal 2026 results, despite posting a net loss driven by significant non-cash impairment charges. The company also lowered its dividend as it looks to strengthen its balance sheet and support long-term growth.
The Chicago-based food manufacturer reported fourth-quarter net sales of $2.88 billion, up 3.6% year on year, while organic net sales were broadly flat. For the full fiscal year ended 31 May 2026, net sales declined 2.9% to $11.28 billion, with organic net sales down 0.4%.
Conagra reported a fourth-quarter net loss of $1.6 billion, equivalent to $3.37 per diluted share, primarily due to approximately $2.0 billion in non-cash goodwill and brand impairment charges. For the full year, the company recorded a net loss of $1.9 billion, or $4.00 per diluted share. On an adjusted basis, however, fourth-quarter earnings per share reached $0.47, while adjusted EPS for the full year was $1.72.
The results come as Conagra continues supplying major supermarket chains across North America through brands including Birds Eye, Healthy Choice, Duncan Hines, Marie Callender’s, Slim Jim, Reddi-wip and Angie’s BOOMCHICKAPOP.
Focus shifts to brands, supply chain and operational improvements
The company said its immediate priorities include restoring profit margins, increasing investment behind its brands, strengthening supply chain operations, simplifying the business and improving financial flexibility. As part of that strategy, Conagra’s Board approved a lower annual dividend of $0.70 per share, with the next quarterly payment set at $0.175 per share.
The impairment charges reflected accounting adjustments rather than day-to-day operating performance, while adjusted operating margin remained 11.7% during the fourth quarter and 11.3% for the full year.
Grocery categories remain resilient
Although overall organic sales were broadly unchanged during the quarter, Conagra reported volume share gains across several supermarket categories, including frozen single-serve meals, frozen multi-serve meals, frozen vegetables, meat snacks, seeds and pudding.
Within its Grocery & Snacks business, organic sales increased 0.5%, while the Foodservice segment recorded 1.8% organic growth. Refrigerated & Frozen organic sales declined 0.5%, and International organic sales fell 2.4%.
The company generated $1.4 billion in operating cash flow during fiscal 2026 and reduced net debt by nearly 12% to $7.05 billion, ending the year with a net leverage ratio of 3.83x.
Outlook points to another challenging year
Looking ahead, Conagra expects fiscal 2027 organic net sales to decline between 1% and 3%, with adjusted operating margins forecast between 10.0% and 10.5%. Adjusted earnings per share are expected to range from $1.40 to $1.50.
The company also plans to increase capital expenditure to around $550 million during fiscal 2027 as it continues investing in manufacturing, operational efficiency and supply chain capabilities.
For supermarket retailers and grocery suppliers, Conagra’s latest strategy suggests the company is prioritising stronger brand support and supply chain resilience while navigating ongoing inflationary pressures and changing consumer demand across packaged food categories.
