(Reuters) -Conagra Brands on Thursday cut organic net sales growth and profit forecasts for fiscal 2024 and warned of a slower recovery in demand for its packaged meals and snacks.
Shares of the Slim Jim beef jerky maker, which fell 26% in 2023, were down about 4% in premarket trading, after it also missed net sales expectations for the second quarter.
The Act II popcorn maker has seen volumes drop in its ready-to-eat meals and frozen snacks as cost-conscious consumers turn to cheaper brands in the face of sticky inflation.
The company is also seeing benefits from price hikes, undertaken last year to offset the impact of supply chain snags, starting to fade.
Its operating margin for the quarter ended Nov. 26 fell 261 basis points to 14%.
Conagra now expects annual organic net sales to decrease between 1.0% and 2.0%, compared with its earlier forecast of about 1% growth.
It expects annual adjusted earnings per share to be between $2.60 and $2.65, compared with its earlier forecast range of $2.70 to $2.75.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Shilpi Majumdar)
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