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Nov 27, 2022
ConAgra Q2 2023 Earnings Report
Reported second quarter results with increased net sales and EPS.
Key Takeaways
Conagra Brands reported an 8.3% increase in net sales, driven by an 8.6% increase in organic net sales. The company's diluted EPS increased by 38.6% to $0.79, and adjusted EPS increased by 26.6% to $0.81. Conagra is raising its fiscal 2023 guidance to reflect organic net sales growth of 7% to 8% and adjusted EPS between $2.60 and $2.70.
Net sales increased by 8.3%, with organic net sales up by 8.6%.
Operating margin increased by 320 basis points to 16.6%, while adjusted operating margin increased by 237 basis points to 17.0%.
Diluted EPS increased by 38.6% to $0.79, and adjusted EPS increased by 26.6% to $0.81.
Fiscal year 2023 guidance raised for organic net sales growth (7-8%), adjusted operating margin (15.3-15.6%), and adjusted EPS ($2.60-$2.70).
Revenue by Segment
Forward Guidance
The company is raising its full year outlook for fiscal 2023. The company continues to plan for supply chain inefficiencies tied to the dynamic operating environment and also expects both gross inflation and results from its Ardent Mills joint venture to moderate through the remainder of the fiscal year.
Positive Outlook
- Organic net sales growth is expected to be 7% to 8% compared to fiscal 2022
- Adjusted operating margin is expected to be between 15.3% and 15.6%
- Adjusted EPS is expected to be between $2.60 and $2.70, representing growth of 10% to 14% compared to fiscal 2022
- Capital expenditures of approximately $425M
- Pension income of approximately $25M
Challenges Ahead
- Supply chain inefficiencies tied to the dynamic operating environment
- Gross inflation (input cost inflation before the impacts of hedging and other sourcing benefits) to moderate through the remainder of the fiscal year.
- Results from its Ardent Mills joint venture to moderate through the remainder of the fiscal year.
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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