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Conagra Manufacturers CEO says inflation will not go away even after Covid omicron wave passes

Conagra Brands CEO Sean Connolly instructed CNBC’s Jim Cramer on Thursday that the corporate is ready for inflationary pressures to stay round properly 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 Money.” “I feel you have to have a battleplan for each.”

The extremely transmissible omicron variant is impacting workforces throughout the financial system from academics to hospital staff to manufacturing vegetation. It is the newest reminder of the Covid pandemic’s wide-ranging financial results, together with the supply-chain bottlenecks which have contributed to upward stress 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 staff from Covid.

On the similar time, Connolly mentioned the corporate is leaning on the power of its manufacturers to move alongside rising prices to shoppers with out denting gross sales volumes. He mentioned that ought to repay for Conagra down the street.

“Should you’ve bought your pricing in place, demand stays robust, when the inflation subsidies you may 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 keeping 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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