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Feb 26, 2023
ConAgra Q3 2023 Earnings Report
Reported strong results driven by pricing actions and productivity improvements, offset by volume declines due to elasticity and supply chain disruptions.
Key Takeaways
Conagra Brands reported a 5.9% increase in net sales, driven by a 6.1% increase in organic net sales. The company's operating margin increased by 355 basis points to 15.9%, and diluted EPS increased by 57.8% to $0.71. The company is updating its fiscal 2023 guidance to reflect organic net sales growth of 7% to 7.5% and adjusted EPS between $2.70 and $2.75.
Net sales increased 5.9%; organic net sales increased 6.1%.
Operating margin increased 355 basis points to 15.9%; adjusted operating margin increased 321 basis points to 16.9%.
Diluted earnings per share (EPS) increased 57.8% to $0.71, and adjusted EPS increased 31.0% to $0.76.
Fiscal 2023 guidance updated: organic net sales growth of 7% to 7.5%, adjusted operating margin between 15.5% and 15.6%, and adjusted EPS between $2.70 and $2.75.
ConAgra
ConAgra
ConAgra Revenue by Segment
Revenue by Segment
International Revenue
CapyFin.comFoodservice Revenue
CapyFin.com Forward Guidance
The company is raising its full year fiscal 2023 adjusted EPS outlook and narrowing its guidance ranges on organic net sales growth and adjusted operating margin in response to year-to-date trends.
Positive Outlook
- Organic net sales growth is expected to be 7% to 7.5% compared to fiscal 2022.
- Adjusted operating margin is expected to be between 15.5% and 15.6%.
- Adjusted EPS is expected to be between $2.70 and $2.75, representing growth of 14% to 17% compared to fiscal 2022.
- Capital expenditures of approximately $370M.
- Pension income of approximately $25M.
Challenges Ahead
- Interest expense of approximately $410M.
- Adjusted effective tax rate of approximately 24%.
- Uncertainty regarding the impacts of foreign exchange, acquisitions, and divestitures.
- Inability to predict the amount and timing of items impacting comparability.
- Risks related to supply chain resources, including raw materials, packaging, and transportation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income