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Nov 28, 2021
ConAgra Q2 2022 Earnings Report
Reported second quarter results with increased organic net sales guidance and reaffirmed adjusted EPS guidance.
Key Takeaways
Conagra Brands reported a 2.1% increase in net sales to $3.1 billion, driven by a 2.6% increase in organic net sales. However, diluted EPS decreased by 26% to $0.57, and adjusted EPS decreased by 21% to $0.64. The company is reiterating its adjusted EPS guidance for fiscal 2022 and updating its organic net sales and adjusted operating margin guidance.
Net sales increased by 2.1%, with organic net sales up by 2.6%.
Diluted EPS decreased by 26.0% to $0.57, and adjusted EPS decreased 21.0% to $0.64.
Gross profit decreased 15.1% to $755 million, and adjusted gross profit decreased 14.4% to $767 million.
The company is reiterating its adjusted EPS guidance for fiscal 2022 and updating its organic net sales and adjusted operating margin guidance.
ConAgra
ConAgra
ConAgra Revenue by Segment
Revenue by Segment
International Revenue
CapyFin.comFoodservice Revenue
CapyFin.com Forward Guidance
The company is reiterating its adjusted EPS guidance for fiscal 2022 and updating its organic net sales and adjusted operating margin guidance. The outlook reflects expectations for continued top line strength, and higher cost of goods sold inflation, and the timing effect of additional pricing actions.
Positive Outlook
- Organic net sales growth is expected to be approximately +3% versus prior guidance of approximately +1%
- Gross inflation (input cost inflation before the impacts of hedging and other sourcing benefits) is expected to be approximately 14% versus prior guidance of approximately 11%
- Adjusted operating margin is expected to be approximately 15.5% versus prior guidance of approximately 16%
- Adjusted EPS is expected to be approximately $2.50, representing no change to prior guidance.
- Margins are expected to improve in the second half of the fiscal year.
Challenges Ahead
- Consumer demand for retail products would remain elevated versus historical levels throughout fiscal 2022, as consumers have developed new habits during the COVID-19 pandemic.
- The company also continues to experience elevated cost of goods sold inflation, the rate of which was higher than expected during the second quarter of fiscal 2022.
- The company has taken, and plans to continue taking, a variety of actions to counteract the impact of this inflation, including incremental pricing actions and cost savings measures.
- The company continues to expect that the timing of the associated benefits from these margin lever actions will increase as the fiscal year progresses.
- The company's ultimate fiscal 2022 performance will be highly dependent on factors including, without limitation:
Revenue & Expenses
Visualization of income flow from segment revenue to net income