Conagra Brands Reports Strong Third Quarter Results

By PRNewswire8 days ago

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CHICAGO, April 8, 2021 /PRNewswire/ --Today Conagra Brands, Inc. (NYSE:CAG) reported results for the third quarter of fiscal year 2021, which ended on February 28, 2021. All comparisons are against the prior-year fiscal period, unless otherwise noted.Certain terms used in this release, including “Organic net sales,“ “EBITDA,“ and certain “adjusted“ results, are defined under the section entitled “Definitions.“ See page 5 for more information.

Highlights

  • Third quarter net sales increased 8.5%; organic net sales increased 9.7%, which is above the Company's guidance range.
  • Operating margin increased 193 basis points to 16.2%; adjusted operating margin increased 31 basis points to 16.0%, which is in-line with the Company's guidance range.
  • Diluted earnings per share from continuing operations (EPS) for the third quarter grew 38.1% to $0.58, and adjusted EPS grew 25.5% to $0.59, which is in-line with the Company's guidance range.
  • During the third quarter, the Company repurchased approximately 8.8 million shares of its common stock for $298 million.
  • The Company is providing guidance for the fourth quarter of fiscal 2021:
    • Organic net sales growth is expected in the range of (10)% to (12)%
    • Adjusted operating margin is expected in the range of 14% to 15%
    • Adjusted EPS is expected in the range of $0.49 to $0.55
  • The Company is reaffirming its fiscal 2022 guidance.

CEO Perspective

Sean Connolly, president and chief executive officer of Conagra Brands, commented, “We have made significant investments in our business over the past five-plus years, modernizing our products to generate consumer demand. Our strong third-quarter results benefited from these investments. We continued to invest in the business during the quarter, with a focus on ensuring our products are available both online and in stores, as we aim to maximize consumer acquisition during this period of heightened demand.“

He continued, “We remain confident that each of our retail domains frozen, snacks, and staples - is well-positioned to sustain the benefits of the eat-at-home habits consumers have developed during the COVID-19 pandemic.Our continued business momentum, coupled with our disciplined approach to investment, reinforce our confidence in the long-term potential of the business and our ability to create sustained value for our shareholders.We further demonstrated this confidence by repurchasing nearly $300 million of our common stock this quarter, which came after we raised our quarterly dividend 29% earlier this fiscal year.“

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