Vending

Conagra Brands reports Q3 2022 loss on higher sales

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April 8, 2022

Conagra Brands Inc. reported mixed results for Q3 2022 from the year-ago period, with earnings falling in double digits on increased sales, according to an earnings report.

• Third quarter net sales increased 5.1% from $2.77 billion to $2.91 billion in the quarter ending Feb. 27, 2022,, reflecting a 0.8% decrease from the divestitures of the Peter Pan peanut butter business and the Egg Beaters business, a 0.1% decrease from the unfavorable impact of foreign exchange and a 6% increase in organic net sales.
• Net income fell 22.3% from $281.7 million to $218.9 million.
• Net sales for the grocery and snacks segment increased 6.2% to $1.2 billion.
• Net sales for the refrigerated and frozen segment increased 2.9% to $1.2 billion.
• Net sales for the foodservice segment increased 18.9% to $235 million.
• Earnings per share on both a basic and diluted basis decreased 22.4% from 58 cents to 45 cents for the comparative quarters and adjusted EPS decreased 1.7% to 58 cents.
• The company is updating its fiscal 2022 guidance and providing fourth quarter guidance to reflect expectations for continued top line strength, higher cost of goods sold, inflation and the timing of additional pricing actions.
• Organic net sales growth is expected to be approximately 4% versus prior guidance of approximately 3%.

Shares traded at $34.43 Thursday against a 52-week range of $30.06-$39.09.

The $2.91 billion in quarterly revenue beat analyst expectations by $70 million, while the non-GAAP EPS of 58 cents was in line with expectations, according to Seeking Alpha.

"Our business delivered another quarter of strong net sales growth as our brands continued to resonate with consumers," Sean Connolly, president and chief executive officer, said in the press release.