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Aug 29, 2021
ConAgra Q1 2022 Earnings Report
Reported solid results in the first quarter, navigating a dynamic external environment and reaffirming fiscal 2022 adjusted EPS guidance.
Key Takeaways
Conagra Brands reported a decrease in net sales by 1.0% to $2.7 billion, with organic net sales decreasing by 0.4%. Despite inflationary pressures, the company reaffirmed its fiscal 2022 adjusted EPS guidance of approximately $2.50. The company experienced a decrease in diluted EPS to $0.49, and adjusted EPS to $0.50.
Net sales decreased by 1.0%; organic net sales decreased by 0.4%.
Operating margin decreased to 13.7%; adjusted operating margin decreased to 14.1%.
Diluted earnings per share (EPS) decreased 26.9% to $0.49, and adjusted EPS decreased 28.6% to $0.50.
The company is reaffirming its fiscal 2022 adjusted EPS guidance and updating its expected path to achieving that guidance.
Revenue by Segment
Forward Guidance
The Company is reaffirming its fiscal 2022 adjusted EPS guidance of approximately $2.50 and updating its expected path to achieving that guidance.
Positive Outlook
- Organic net sales growth is expected to be approximately +1% versus prior guidance of approximately flat
- Gross inflation (input cost inflation before the impacts of hedging) is expected to be approximately 11% versus prior guidance of approximately 9%
- Adjusted operating margin is expected to be approximately 16%, representing no change to prior guidance
- Adjusted EPS is expected to be approximately $2.50, representing no change to prior guidance
- Consumer demand for retail products expected to remain elevated.
Challenges Ahead
- Consumer food purchasing habits are dependent on the reopening of foodservice establishments and the return to in-office work and in-person schooling.
- The cost of goods sold inflation the Company experiences.
- Consumers’ response to inflation-justified price increases.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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