Foodservice

Conagra lifts Q1 2024 earnings on flat sales

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October 5, 2023

Conagra Brands Inc. lifted its earnings against flat sales for Q1 2024 caused by a slowdown in consumer spending, according to an earnings release. Highlights include:

• Net sales were flat at $2.9 billion in the quarter ending Aug. 27, 2023 against the prior year period, reflecting a 0.3% increase from the favorable impact of foreign exchange and a 0.3% decrease in organic net sales. The 0.3% decrease in organic net sales was driven by a 6.6% decrease in volume largely due to industry-wide slowdown in consumption and recent consumer behavior shifts, partially offset by a 6.3% improvement in price/mix.
• Net income jumped from a $77.5 million loss to $319.7 million in the comparative quarters.
• Basic and diluted EPS both rose from a 16-cent loss to a 67-cent gain.
• Adjusted EPS rose 15.8% to 66 cents.
• Grocery and snacks net sales rose 1.2% to $1.2 billion.
• Refrigerated and frozen net sales fell 4.6% to $1.15 billion.
• Foodservice net sales rose 5.2% to $289.3 million.
• International net sales jumped 11.4% to $260.2 million.

Shares traded today at $26.22 against a 52-week range of $25.76 to $41.30.

The $2.9 billion in quarterly revenue missed analyst expectations by $60 million and the non-GAAP EPS of 66 cents beat expectations by 6 cents, according to Seeking Alpha.

"I am proud of our team for delivering another quarter of strong margin recovery and EPS growth despite facing industry-wide macro dynamics that have affected consumer purchasing behavior and elongated the volume recovery period," Sean Connolly, CEO and president, said in the press release.

Organic net sales growth is expected to be approximately 1% for fiscal 2024 compared to fiscal 2023 while adjusted EPS is expected to be between $2.70 and $2.75.