Conagra Brands Q1 Earnings Top Estimates; Reaffirms FY22 EPS Outlook

  • Conagra Brands Inc CAG reported a first-quarter FY22 sales decline of 1% year-on-year, to $2.65 billion, beating the analyst consensus of $2.54 billion.
  • The 0.4% decrease in organic net sales was driven by a 2.0% drop in volume and a favorable price/mix impact of 1.6%.
  • On a two-year compounded annualized basis, Q1 net sales increased 5.3%, and organic net sales rose 7.0%.
  • Net sales from the Refrigerated & Frozen segment decreased 2.5% Y/Y, Grocery & Snacks segment fell 4.9%, International segment increased 8.1%, and Foodservice segment rose 20.9%.
  • Gross profit decreased 16.9% Y/Y to $673 million, while the gross margin fell 486 basis points to 25.4%.
  • The operating margin was 13.7%, and operating income for the quarter declined 28.7% to $363.3 million.
  • Conagra Brands held $68 million in cash and equivalents as of August 29, 2021.
  • Adjusted EBITDA decreased 22.6% Y/Y to $501 million.
  • Adjusted EPS of $0.50 beat the analyst consensus of $0.49.
  • Outlook: Conagra Brands reaffirmed FY22 EPS guidance of ~$2.50 versus the consensus of $2.46.
  • The company expects organic net sales growth to be +1% versus prior guidance of approximately flat.
  • Price action: CAG shares are trading higher by 0.38% at $34.61 on the last check Thursday.

Posted In: BriefsEarningsNewsGuidance

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