Conagra Brands Inc beat quarterly sales estimates on Thursday as higher product prices offset waning demand for its snacks and ready-to-eat meals.
Packaged food makers have been increasing prices for their products over the past year to shield profit margins from spiralling costs of freight, labor and ingredients such as wheat, corn and edible oils due to supply chain constraints.
Conagra reported a loss attributable to the company of $77.5 million, or 16 cents per share, in the first quarter, compared with a profit of $235.4 million, or 49 cents per share, a year earlier.
The company's net sales rose to $2.90 billion from $2.65 billion. Analysts had expected sales of $2.85 billion, according to IBES data from Refinitiv.
Sean Connolly, president and chief executive officer of Conagra Brands, commented, "The strength of our brands and continued execution of the Conagra Way playbook resulted in strong sales and adjusted operating profit during the first quarter.
"We continued to deliver improved service and productivity as we navigate ongoing inflationary pressures and industry-wide supply chain challenges. Our strong start to fiscal 2023 reaffirms our confidence in our outlook for the balance of the fiscal year as we remain focused on generating value for our shareholders."
In the grocery and snacks segment, reported and organic net sales increased 10.5% year-on-year to $1.2 billion during the quarter, while the refrigerated and frozen segment reported 9.6% growth to $1.2 billion.