...January 22, 2025 The company's volumes have inflected positively, but we expect cost pressures will weigh on profits in fiscal 2025. Conagra Brands Inc.'s organic volumes inflected modestly positive in the fiscal second-quarter ended Nov. 26, 2024, driven by strength in the company's refrigerated and frozen segment. Notwithstanding the volume improvement, input costs were higher than expected, particularly in proteins, and Conagra is unlikely to pass on these higher costs to customers through price increases. Management has remained focused on driving improved volumes through price and promotional activity in a still-challenging operating environment with consumers continuing to seek value, and will only take targeted price increases in certain categories to retain market share. As a result of the input cost pressures and heightened promotional activity, we have tempered our profit expectations for fiscal 2025 (ending May 25), with EBITDA margins declining more than 100 basis points. For...
