ConAgra Q1 2024 Earnings Report
Key Takeaways
Conagra Brands reported flat net sales but experienced a 1,757 basis point increase in operating margin and a 15.8% increase in adjusted EPS. The company reaffirms its fiscal year 2024 guidance.
Net sales were flat; organic net sales decreased by 0.3%.
Operating margin increased by 1,757 basis points, with adjusted operating margin up by 297 basis points.
Diluted EPS was $0.67, compared to a loss of $0.16 in the prior year, and adjusted EPS increased by 15.8% to $0.66.
Fiscal year 2024 guidance reaffirmed, projecting organic net sales growth of approximately 1.0% and adjusted EPS between $2.70 and $2.75.
ConAgra
ConAgra
ConAgra Revenue by Segment
Forward Guidance
Conagra Brands is reiterating its fiscal 2024 outlook, expecting a low-single digit organic net sales decline in Q2 and low-single digit organic net sales growth in the back half of the year.
Positive Outlook
- Organic net sales growth is expected to be approximately 1.0% compared to fiscal 2023
- Adjusted operating margin is expected to be between 16.0% and 16.5%
- Adjusted EPS is expected to be between $2.70 and $2.75
- Capital expenditures of approximately $500M
- Adjusted effective tax rate of approximately 24%
Challenges Ahead
- Expecting a low-single digit organic net sales decline in Q2
- Gross and operating margins to be below the first quarter due to incremental trade and A&P investment
- Margins similar to Q2 as trade and A&P dollars remain elevated in the back half of the year
- Interest expense of approximately $450M
- No pension income
Revenue & Expenses
Visualization of income flow from segment revenue to net income