Loading...
•
May 29, 2022
ConAgra Q4 2022 Earnings Report
Reported fiscal year 2022 fourth quarter and full-year results and provided fiscal 2023 guidance.
Key Takeaways
Conagra Brands reported a 6.2% increase in net sales for the fourth quarter, driven by a 6.8% increase in organic net sales, which was offset by declines in volume. The company's adjusted EPS increased by 20.4% to $0.65, driven primarily by an increase in operating profit and a strong performance from the Company's Ardent Mills joint venture.
Net sales increased 6.2% and organic net sales increased 6.8%.
Operating margin decreased 310 basis points to 7.4%; adjusted operating margin increased 96 basis points to 15.0%.
Diluted earnings per share (EPS) declined 48.4% to $0.33 and adjusted EPS increased 20.4% to $0.65.
The Company is providing fiscal 2023 guidance to reflect organic net sales growth of 4% to 5% compared to fiscal 2022.
ConAgra
ConAgra
ConAgra Revenue by Segment
Revenue by Segment
International Revenue
CapyFin.comFoodservice Revenue
CapyFin.com Forward Guidance
The Company expects cost of goods sold inflation to continue into fiscal 2023 and has communicated additional pricing increases that will take effect in the second quarter of FY23. Guidance anticipates gross inflation (input cost inflation before the impacts of hedging and other sourcing benefits) in low-teen levels.
Positive Outlook
- Organic net sales growth of 4% to 5% compared to fiscal 2022
- Adjusted operating margin of approximately 15%
- Adjusted EPS growth of 1% to 5% compared to fiscal 2022
- Additional pricing increases will take effect in the second quarter of FY23
- Guidance anticipates gross inflation in low-teen levels
Challenges Ahead
- Cost of goods sold inflation to continue into fiscal 2023
- Elasticities increase from fiscal 2022 levels but remain below historical levels
- The Company does not expect the elevated performance that its joint venture, Ardent Mills, delivered in the back half of fiscal 2022 to continue throughout fiscal 2023.
- The inability to predict the amount and timing of the impacts of foreign exchange, acquisitions, divestitures, and other items impacting comparability makes a detailed reconciliation of forward-looking non-GAAP financial measures impracticable.
- Volume elasticities increase from fiscal 2022 levels but remain below historical levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income