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Feb 23, 2020
ConAgra Q3 2020 Earnings Report
Conagra Brands reported a decrease in net sales and net income, but remained on track with its de-leveraging target.
Key Takeaways
Conagra Brands reported a 5.6% decrease in net sales to $2.6 billion and a 15.6% decrease in net income to $204 million for the third quarter of fiscal year 2020. Adjusted EPS was $0.47, in line with expectations. The company reduced debt by $450 million and expects to exceed full-year sales and profit guidance.
Net sales decreased by 5.6%, with organic net sales down 1.7%.
Diluted EPS was $0.42; Adjusted EPS was $0.47.
The integration of Pinnacle remained on-track.
Company reduced debt by $450 million in the quarter.
ConAgra
ConAgra
ConAgra Revenue by Segment
Revenue by Segment
Grocery & Snacks Revenue
CapyFin.comRefrigerated & Frozen Revenue
CapyFin.comInternational Revenue
CapyFin.comFoodservice Revenue
CapyFin.com Forward Guidance
Conagra Brands now expects to exceed prior full-year guidance for total-company sales and profit metrics, assuming the end-to-end supply chain continues to operate effectively.
Positive Outlook
- Company has seen significantly increased demand in its retail business to-date in the fourth quarter.
- Company expects to exceed prior full-year guidance for total-company sales.
- Company expects to exceed prior full-year guidance for total-company profit metrics.
- Supply chain has executed very well to-date to meet the needs of customers and consumers.
- Company's supply chain has effectively serviced demand to-date.
Challenges Ahead
- The impact that the COVID-19 pandemic will have on the Company’s fiscal 2020 consolidated results of operations is uncertain.
- The dynamic nature of the current situation makes it challenging for management to estimate future performance of the businesses, particularly over the near term.
- Company has also started to see reduced demand for its foodservice products.
- Company expects a 50-60% decline in Foodservice organic net sales in the fourth quarter.
- Ultimate results depend on an effective and uninterrupted supply chain
Revenue & Expenses
Visualization of income flow from segment revenue to net income