Conagra Brands, Inc. reported financial results for the first quarter of fiscal year 2027, which ended on August 30, 2026. The company reported net sales of $2.6 billion for the quarter, a decrease of 1.4% compared to the prior year. Organic net sales decreased by 1.1%, driven by a 2.1% decrease in volume, partially offset by a 1.0% positive impact from price/mix. Reported diluted earnings per share (EPS) were $0.36, a 5.9% increase, while adjusted EPS was $0.41, a 5.1% increase.
On a segment basis, Grocery & Snacks net sales decreased 2.6% to $1.1 billion, while Refrigerated & Frozen net sales decreased 2.1% to $1.1 billion. The International segment saw net sales increase 2.7% to $218 million, and the Foodservice segment saw net sales increase 3.2% to $273 million.
Gross profit for the quarter decreased 3.4% to $619 million. The company noted that higher productivity and approximately $4 million in tariff refunds were more than offset by lower organic net sales, negative cost of goods sold inflation, and unfavorable operating leverage. The effective tax rate for the quarter was 25.2% compared to 43.1% in the prior year period.
Conagra Brands ended the quarter with net debt of $7.4 billion, representing a $193 million reduction versus the prior year period, resulting in a net leverage ratio of 3.99x. The company reaffirmed its fiscal 2027 guidance, which includes organic net sales change of (3)% to (1)% compared to fiscal 2026, adjusted operating margin between 10.0% and 10.5%, and adjusted EPS between $1.40 and $1.50.
