CHICAGO, ILLINIOIS, US — Ardent Mills LLC is “off to a good start” in fiscal 2024, said David S. Marberger, executive vice president and chief financial officer of Conagra Brands, Inc.

Conagra owns a 44% stake in Denver, Colorado, US-based Ardent Mills.

Equity method investment earnings at Conagra in the first quarter ended Aug. 27, largely reflecting the company’s Ardent Mills investment, were $36 million, down 28% from $49.2 million in the first quarter of fiscal 2023. The lower earnings, which Conagra had telegraphed three months earlier when issuing fiscal 2024 guidance, reflected “slightly lower volume trends in the milling industry,” Conagra said.

The $36 million in equity method earnings represents a significant premium from $22 million in the first quarter of fiscal year 2022.

Marberger commented briefly about Ardent Mills a couple times during an investment analyst call Oct. 6. Responding to a question about what could help Conagra achieve its earnings targets for fiscal 2024 if volumes remain soft, Marberger’s response included, “…And then we obviously have our Ardent Mills joint venture, which continues to do really well. We’re holding to our guidance for the year there, but there’s still really strong momentum in Ardent Mills.” He noted that the investment in Ardent “generates cash for our business.”

Conagra’s guidance for equity method investment earnings for Ardent Mills in fiscal 2024 is $150 million, down from $212 million in fiscal 2023.