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Conagra Brands CEO Says Inflation Won’t Go Away Even After Covid omicron Wave Weaves

Conagra Brands CEO Sean Connolly told CNBC Jim Kramer on Thursday that the company is poised for inflationary pressures to continue after the Covid omicron wave dies down.

“It is not so easy. I don’t think that if omicron disappears, it will immediately solve the inflation problem, ”Connolly said in an interview with Mad Money TV. “I think you should have a battle plan for both.”

The high-transmission omicron option affects the workforce across the economy, from teachers to hospital and manufacturing staff. This is the latest reminder of the widespread economic impact of the Covid pandemic, including supply chain bottlenecks that have contributed to upward pressure on prices.

Connolly said Conagra, which makes Slim Jim, Gardein’s vegetable protein brand and Orville Redenbacher’s popcorn, has a strict masking policy and strongly recommends vaccinations as a way to protect workers from Covid.

At the same time, Connolly said the company is relying on the strength of its brands to pay rising costs for consumers without dropping sales. He said it should pay off for Conagra in the future.

“If you have pricing in place, demand will remain high, and if inflation is subsidized, you can tangibly see a rapid rebound in margins,” he said.

Connolly’s appearance in Mad Money comes after the company announced its second quarter results earlier Thursday. Its earnings per share of 64 cents are less than Wall Street’s forecasts by 4 cents, according to Refinitiv. However, quarterly revenues of $ 3.06 billion exceeded expectations of $ 3.02 billion.

Conagra shares ended Thursday’s session 1.8% lower.

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