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May 28, 2023
ConAgra Q4 2023 Earnings Report
Reported a mixed Q4 2023 with sales increase offset by operating margin and EPS decreases.
Key Takeaways
Conagra Brands reported a 2.2% increase in net sales and a decrease in diluted EPS of 75.8% to $0.08 for the fourth quarter of fiscal year 2023. The increase in net sales was driven by a 9.9% improvement in price/mix, which was partially offset by a 7.7% decrease in volume. The company is providing fiscal 2024 guidance that includes organic net sales growth of approximately 1% and adjusted operating margin between 16% and 16.5%.
Reported and organic net sales increased 2.2%.
Operating margin decreased 544 basis points to 1.9%; adjusted operating margin decreased 39 basis points to 14.6%.
Diluted earnings per share (EPS) decreased 75.8% to $0.08, and adjusted EPS decreased 4.6% to $0.62.
The company gained share in snacking categories including meat snacks and seeds, and some staples categories including canned pasta and Asian sauces and marinades.
Revenue by Segment
Forward Guidance
The company is providing the following guidance for fiscal 2024: Organic net sales growth is expected to be approximately 1% compared to fiscal 2023, Adjusted operating margin is expected to be between 16% and 16.5%, Adjusted EPS is expected to be between $2.70 and $2.75.
Positive Outlook
- Organic net sales growth is expected to be approximately 1% compared to fiscal 2023
- Adjusted operating margin is expected to be between 16% and 16.5%
- Adjusted EPS is expected to be between $2.70 and $2.75
- Capital expenditures of approximately $500M
- Adjusted effective tax rate of approximately 24%
Challenges Ahead
- Cost of goods sold inflation to continue into fiscal 2024.
- Net inflation (input cost inflation including the impacts of hedging and other sourcing benefits) to be roughly 3%.
- Inability to predict the amount and timing of the impacts of foreign exchange.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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