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Nov 29, 2020

ConAgra Q2 2021 Earnings Report

Conagra's Q2 2021 performance was strong, exceeding guidance across all metrics and achieving its net leverage ratio target ahead of schedule.

Key Takeaways

Conagra Brands reported strong second-quarter results, exceeding guidance for each metric. Net sales increased by 6.2%, with organic net sales up by 8.1%. The company achieved its targeted Net Leverage Ratio ahead of schedule due to debt reduction and strong earnings.

Net sales increased 6.2%, and organic net sales increased 8.1%.

Total Company operating margin increased 250 basis points to 17.7%, and adjusted operating margin increased 250 basis points to 19.6%.

EPS grew 45.3% to $0.77, and adjusted EPS grew 28.6% to $0.81.

The Company reduced its gross debt by $2.3 billion, achieving its targeted Net Leverage Ratio ahead of schedule.

Total Revenue
$3B
Previous year: $2.82B
+6.2%
EPS
$0.81
Previous year: $0.63
+28.6%
Organic Net Sales Growth
8.1%
Gross Profit
$889M
Previous year: $798M
+11.4%
Cash and Equivalents
$68M
Previous year: $192M
-64.6%
Free Cash Flow
$120M
Previous year: $143M
-16.0%
Total Assets
$22.3B
Previous year: $22.5B
-1.0%

ConAgra

ConAgra

ConAgra Revenue by Segment

Forward Guidance

The Company is providing guidance for the third quarter of fiscal 2021:

Positive Outlook

  • Organic net sales growth is expected in the range of +6% to +8%
  • Adjusted operating margin is expected in the range of 16.0% to 16.5%
  • Adjusted EPS is expected in the range of $0.56 to $0.60

Revenue & Expenses

Visualization of income flow from segment revenue to net income