Vending

Conagra Brands lifts Q1 2023 sales, income slides

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October 6, 2022

Conagra Brands Inc. lifted its Q1 2023 sales over the prior year period but suffered an income decline, according to an earnings report. Highlights include:

• Net sales increased 9.5% from $2.65 billion in Q1 2022 to $2.9 billion for the quarter ending Aug. 28, 2022, including a 9.7% increase in organic net sales driven by a 14.3% improvement in price/mix, which was partially offset by a 4.6% decrease in volume.
• Net income fell from $235.7 million to a $77.5 million loss in the comparative quarters.
• Net income on a diluted basis fell from 49 cents to a 16-cent loss.
• Adjusted earnings per share was 57 cents.
• Reported and organic net sales for the grocery and snacks segment increased 10.5% to $1.2 billion.
• Reported and organic net sales for the refrigerated and frozen segment increased 9.6% to $1.2 billion.
• Reported and organic net sales for the foodservice segment increased 14.6% to $275 million.
• Net sales for the international segment decreased 1.3% to $234 million.

Shares traded at $32.65 today against a 52-week range of $30.06-$36.97.

The $2.9 billion in quarterly revenue beat analyst expectations by $60 million, while the non-GAAP EPS of 57 cents beat expectations by 5 cents, according to Seeking Alpha.

"Our strong start to fiscal 2023 reaffirms our confidence in our outlook for the balance of the fiscal year as we remain focused on generating value for our shareholders," Sean Connolly, president and chief executive officer at Conagra, said in the press release.

The company reaffirmed its fiscal 2023 guidance, with organic net sales growth expected to be 4% to 5% and adjusted diluted EPS growth expected to be 1% to 5%.