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Feb 27, 2022
ConAgra Q3 2022 Earnings Report
Conagra Brands' third quarter results for fiscal year 2022 were reported, showing increased net sales and organic net sales, but decreased operating margin and earnings per share.
Key Takeaways
Conagra Brands reported a 5.1% increase in net sales and a 6.0% increase in organic net sales for the third quarter of fiscal year 2022. However, the operating margin decreased by 387 basis points, and diluted earnings per share decreased by 22.4%. The company is updating its fiscal 2022 guidance to reflect expectations for continued top line strength and higher cost of goods sold inflation.
Net sales increased by 5.1%, with organic net sales up by 6.0%.
Operating margin decreased to 12.3%, while adjusted operating margin decreased to 13.7%.
Diluted earnings per share decreased to $0.45, and adjusted EPS decreased to $0.58.
Fiscal year 2022 guidance was updated to reflect continued top line strength and higher cost of goods sold inflation.
ConAgra
ConAgra
ConAgra Revenue by Segment
Revenue by Segment
International Revenue
CapyFin.comFoodservice Revenue
CapyFin.com Forward Guidance
The company is updating its fiscal 2022 guidance and providing fourth quarter guidance, to reflect expectations for continued top line strength, 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 +7% for Q4 2022.
- Gross inflation is expected to be approximately 16% for Q4 2022.
- Adjusted operating margin is expected to be approximately 15.5% for Q4 2022.
- Adjusted EPS is expected to be approximately $0.64 for Q4 2022.
- Expectations for continued top line strength.
Challenges Ahead
- Higher cost of goods sold inflation.
- Timing effect of additional pricing actions.
- Consumer demand for retail products would remain elevated versus historical levels throughout fiscal 2022.
- The benefits associated with the actions are not expected to fully offset the incremental input cost headwinds within fiscal 2022.
- Ultimate fiscal 2022 performance will be highly dependent on factors including how consumers purchase food as foodservice establishments continue to reopen and people continue to return to in-office work and in-person school.
Revenue & Expenses
Visualization of income flow from segment revenue to net income