ConAgra Q1 2023 Earnings Report
Key Takeaways
Conagra Brands reported a 9.5% increase in net sales to $2.9 billion for the first quarter of fiscal year 2023. Organic net sales increased by 9.7%, driven by a 14.3% improvement in price/mix, offsetting a 4.6% decrease in volume. Adjusted EPS was $0.57, while diluted loss per share was $0.16, impacted by non-cash impairment charges.
Net sales increased by 9.5%, with organic net sales up by 9.7%.
Adjusted EPS reached $0.57, while diluted loss per share was $0.16 due to impairment charges.
Gross profit increased by 7.0% to $720 million, and adjusted gross profit increased 7.1% to $723 million.
The company reaffirms its fiscal 2023 guidance, projecting organic net sales growth of 4% to 5% and adjusted EPS growth of 1% to 5%.
ConAgra
ConAgra
ConAgra Revenue by Segment
Forward Guidance
Conagra Brands reaffirms its fiscal year 2023 guidance, anticipating organic net sales growth of 4% to 5%, an adjusted operating margin of approximately 15%, and adjusted diluted EPS growth of 1% to 5%.
Positive Outlook
- Reaffirming fiscal 2023 guidance.
- Organic net sales growth expected to be 4% to 5%.
- Adjusted operating margin expected to be approximately 15%.
- Adjusted diluted EPS growth expected to be 1% to 5%.
- Capital expenditures of approximately $500M.
Challenges Ahead
- Continued supply chain inefficiency tied to the dynamic operating environment.
- Some incremental volume weakness tied to the new inflation-driven pricing.
- Gross inflation is expected to continue but moderate through the remainder of the fiscal year, resulting in low-teen levels.
- Commodity relief is expected to be weighted towards the back half of the fiscal year.
- Not planning for elevated performance from Ardent Mills to continue throughout the remainder of the fiscal year due to the volatile nature of the business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income