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May 30, 2021
ConAgra Q4 2021 Earnings Report
Reported strong fourth quarter and full-year results.
Key Takeaways
Conagra Brands reported a decrease in net sales by 16.7% but an increase in EPS by 56.1% for the fourth quarter of fiscal year 2021. The company is revising its Fiscal 2022 guidance to reflect increased inflation.
Net sales decreased 16.7%, and organic net sales decreased 10.1% driven by lapping the prior year’s significant surge in at-home food consumption at the onset of the COVID-19 pandemic.
Operating margin decreased 143 basis points to 10.5%; adjusted operating margin decreased 311 basis points to 14.0%.
Diluted earnings per share from continuing operations (EPS) for the fourth quarter grew 56.1% to $0.64, and adjusted EPS declined 28.0% to $0.54.
The Board of Directors has authorized a 14% increase to the Company’s annualized dividend rate, beginning with the dividend payable on September 2, 2021, reflecting continued confidence in the strength of the business.
ConAgra
ConAgra
ConAgra Revenue by Segment
Revenue by Segment
International Revenue
CapyFin.comFoodservice Revenue
CapyFin.com Forward Guidance
Management expects that consumer demand for its retail products will remain elevated versus historical levels during fiscal 2022, as consumers have developed new habits during the COVID-19 pandemic. The Company is providing the following updated fiscal 2022 guidance: Organic net sales growth is expected to be approximately flat compared to fiscal 2021. Adjusted operating margin is expected to be approximately 16%. Adjusted EPS is expected to be approximately $2.50.
Positive Outlook
- consumer demand for its retail products will remain elevated versus historical levels during fiscal 2022
- Organic net sales growth is expected to be approximately flat compared to fiscal 2021
- Adjusted operating margin is expected to be approximately 16%
- Adjusted EPS is expected to be approximately $2.50
- Adjusted EPS in the second half of the fiscal year is expected to be in-line with what was assumed for the second half of fiscal 2022 in the Company's prior fiscal 2022 guidance.
Challenges Ahead
- the Company has recently experienced elevated cost of goods sold inflation, the rate of which increased during the fourth quarter of fiscal 2021
- the timing of the margin lever benefits is expected to be weighted towards the second half and therefore not expected to fully offset the input cost headwinds within fiscal 2022
- This timing lag is expected to most acute in the first quarter
- how consumers purchase food as foodservice establishments continue to reopen and people return to in-office work and in-person school
- the cost of goods sold inflation the Company experiences
Revenue & Expenses
Visualization of income flow from segment revenue to net income