Conagra Manufacturers CEO Sean Connolly advised CNBC’s Jim Cramer on Thursday that the corporate is ready for inflationary pressures to stay round nicely after the Covid omicron wave subsides.
“It isn’t fairly that easy. I do not suppose if omicron goes away it instantly solves inflation,” Connolly mentioned in an interview on “Mad Cash.” “I believe you have to have a battleplan for each.”
The extremely transmissible omicron variant is impacting workforces throughout the economic system from lecturers to hospital staff to manufacturing vegetation. It is the most recent reminder of the Covid pandemic’s wide-ranging financial results, together with the supply-chain bottlenecks which have contributed to upward strain on costs.
Connolly mentioned Conagra — which makes Slim Jim, plant-based protein model Gardein and Orville Redenbacher’s popcorn — has strict masking insurance policies and strongly encourages vaccination as methods to guard employees from Covid.
On the identical time, Connolly mentioned the corporate is leaning on the power of its manufacturers to go alongside rising prices to shoppers with out denting gross sales volumes. He mentioned that ought to repay for Conagra down the highway.
“In the event you’ve acquired your pricing in place, demand stays sturdy, when the inflation subsidies you’ll be able to see fast margin restoration in a significant method,” he mentioned.
Connolly’s look on “Mad Cash” comes after the corporate reported second-quarter outcomes earlier Thursday. Its per-share earnings of 64 cents missed Wall Avenue’s forecasts by 4 cents, in accordance with Refinitiv. Nonetheless, quarterly revenues of $3.06 billion topped expectations of $3.02 billion.
Conagra shares completed Thursday’s session down 1.8%.
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