Updated version 2 - Conagra Brands beats market expectations for the first quarter thanks to strong pricing power

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Reuters, September 30 - Conagra Brands Inc CAG.N reported first-quarter profits and sales on Wednesday that exceeded Wall Street expectations, thanks to more favorable pricing strategies and product mix.

"While there is still much work to do, we remain on track to achieve our full-year performance targets as planned," CEO John Brase said.

In July, Conagra cut its annual dividend in half and said it was reviewing its non-core assets (link). Newly appointed CEO Brase noted that brands that do not play a significant strategic role may be divested, while other brands may be introduced.

In the quarter, net sales in the refrigerated and frozen foods segment fell 2.1% from a year earlier, with volume down 1% and prices down 1.5%.

Conagra said that pricing and product mix contributed 1% to total organic net sales, partially offsetting the impact of volume declines.

According to data compiled by the London Stock Exchange Group (LSEG), the company’s net sales for the quarter totaled $2.6 billion, higher than the $2.59 billion expected.

First-quarter adjusted gross profit was down 3.9% from the same period last year, but a $4 million tariff rebate partially offset the decline.

Quarterly adjusted earnings per share were 41 cents, while analysts had expected 28 cents. Conagra also reiterated its annual sales and profit forecasts.

The company, which produces Hunt's ketchup, saw its shares fall 3% in pre-market trading.

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