Grocery & Snacks segment
Net sales in Conagra Brands’ (CAG) Grocery & Snacks segment fell 7.1% to $0.75 billion, reflecting the divestiture of the Wesson oil business. Meanwhile, organic net sales decreased by 2.5%, owing to the lower volumes and pricing. Volumes declined 1.1% as growth in the snacks business was offset by merchandising changes and declines in the Hunt’s and Chef Boyardee businesses. Meanwhile, investments with retailers further remained a drag.
Refrigerated & Frozen
Refrigerated & Frozen segment’s net sales decreased 0.6% to $0.69 billion. Volumes declined 1.5%, while pricing improved by 0.9%. Innovation-led products supported the segment’s sales. However, lower merchandising in Marie Callender’s, the recall of P.F. Chang’s, and brand building investments remained a drag.
The International segment’s net sales fell 7.4% to $0.19 billion, reflecting divestitures and adverse currency rates. Currency movements negatively impacted sales by 2.8%. Organic sales improved 5.6% driven by 5.2% growth in volumes. Canadian snacks and frozen businesses witnessed healthy growth during the reported quarter. Pricing increased by 0.4%.
Net sales in the Foodservice segment declined 12.6% to $0.23 billion, reflecting a 12% drag on sales growth from divestitures. Organic sales fell 0.6%, reflecting lower volumes. The segment’s organic volumes declined by 5.9% as higher pricing negatively impacted volumes. Pricing increased by 5.3% during the reported quarter.