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Conagra reports dip in Q3 net sales, boost in Q4 demand due to COVID-19

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April 1, 2020

Conagra Brands Inc. reported results for the third quarter of fiscal year 2020, which ended on Feb. 23, 2020, according to a press release. For the fourth quarter to date, the company reported a boost in demand which is attributed to the coronavirus pandemic. 

• Third quarter net sales decreased 5.6%; organic net sales decreased 1.7%, in-line with the company's expectations, which were updated in a press release issued on Feb. 17, 2020.
• Diluted earnings per share from continuing operations was $0.42; Adjusted EPS of $0.47 was in line with the company's updated expectations.
• The integration of Pinnacle remained on-track, and each of the "Big 3" brands delivered sequential in-market performance improvement.
• The company reduced debt by $450 million in the quarter and remained on-track with its deleveraging target of 3.6 times to 3.5 times by the end of fiscal 2021.

For the fourth quarter to date, the company has experienced significantly increased demand in its retail businesses, associated with the COVID-19 pandemic; the company has also begun to experience declines in foodservice demand.

The company now expects to exceed prior full-year guidance for total-company sales and profit metrics, assuming the end-to-end supply chain continues to operate effectively.