Conagra Brands trimmed its annual profit and operating margin forecasts further on Monday, citing supply constraints and foreign exchange rates.
The packaged food company said it has experienced customer service interruptions on frozen meals containing chicken and frozen vegetables.
The company also identified foreign exchange rates as a potential headwind.
Consumers – wary of high grocery prices – have turned to cheaper, private-label brands, hurting sales at packaged food companies including Conagra, Campbell’s Co., Kraft Heinz and JM Smucker.
This has led to higher spending on promotions and price cuts on grocery, snacks and frozen-food products, which will weigh on margins.
Conagra has cut its profit expectations twice in less than two months.
It earlier said that it expected rising cocoa and sugar prices to pressure its margins and said a stronger dollar would hurt international sales in the back half of the year.
The company now expects an annual adjusted profit of $2.35 per share, compared with previous guidance of $2.45 to $2.50.
It also cut its adjusted operating margin expectation to 14.4% from 14.8%/
Shares of the Slim Jim beef jerky maker lost nearly 4% in 2024, and have already declined nearly 9% in 2025.
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