moment Conagra Brands,Inc.( NYSE CAG) reported results for the alternate quarter of financial time 2024, which ended on November 26, 2023. All comparisons are against the previous- time financial period, unless else noted.
Alternate Quarter Highlights
Net deals dropped3.2 from the previous time quarter; organic net deals dropped3.4
Operating periphery was14.0, representing a 261 base point drop over the previous time quarter. Acclimated operating periphery was15.9, representing a 108 base point drop over the previous time quarter.
Adulterated earnings per share( EPS) was$0.60, a24.1 drop over the previous time quarter. Acclimated EPS was$0.71, a12.3 drop over the previous time quarter.
The company is streamlining its financial 2024 guidance and now expects
Organic net deals to drop between1.0 and2.0 compared to financial 2023
Acclimated operating periphery of roughly15.6
Acclimated EPS between$2.60 and$2.65
CEO Perspective
Sean Connolly, chairman and principal administrative officer of Conagra Brands, reflected,” Despite an ongoing grueling macro terrain, we saw several positive signs in Q2. In particular, volume trends in our domestic retail business bettered mainly, as affectation- driven volume declines were cut in half compared to Q1. Most importantly, our targeted investments in our frozen business generated strong lifts and request share earnings. These developments corroborated our confidence in investing to make instigation in the alternate half and set up a strong FY25.”
Total Company Alternate Quarter Results
In the quarter, net deals were$3.2 billion reflecting
a0.2 increase from the favorable impact of foreign exchange; and
a3.4 drop in organic net deals.
The3.4 drop in organic net deals was driven by a0.5 negative impact from price/ blend, incompletely attributable to an increase in strategic investments, and a2.9 drop in volume, primarily due to continued lower consumption trends.
Gross profit dropped8.2 to$ 847 million in the quarter, and acclimated gross profit dropped7.6 to$ 862 million. Alternate quarter gross profit dropped as advanced productivity was further than neutralize by the negative impacts of cost of goods vended affectation, lower organic net deals, and inimical operating influence. Gross periphery dropped 145 base points to26.4 in the quarter, and acclimated gross periphery dropped 129 base points to26.9.
Selling, general, and executive expenditure( SG&A), which includes advertising and promotional expenditure( A&P), increased6.8 to$ 398 million in the quarter due to an impairment associated with a business being reclassified to held for trade and legal reserve adaptations made in the quarter, incompletely neutralize by a decline in A&P from timing shifts over the previous time quarter. Acclimated SG&A, which excludes A&P, dropped4.1 to$ 279 million primarily driven by lower incitement compensation compared to the previous time quarter.
Net interest expenditure was$ 113 million in the quarter. Compared to the previous- time period, net interest expenditure increased13.0 or$ 13 million, primarily due to a advanced weighted average interest rate on outstanding debt.
The average adulterated share count in the quarter was 480 million shares.
In the quarter, net income attributable to Conagra Brands dropped25.1 to$ 286 million, or$0.60 per adulterated share compared to$ 382 million, or$0.79 per adulterated share in the previous time quarter driven primarily by the drop in gross profit and increase in SG&A, as preliminarily bandied. Acclimated net income attributable to Conagra Brands dropped12.9 to$ 341 million, or$0.71 per adulterated share driven primarily by the drop in gross profit.
Acclimated EBITDA, which includes equity system investment earnings and pension and postretirementnon-service expenditure( income), dropped7.0 to$ 661 million in the quarter, primarily driven by the drop in acclimated gross profit.
Grocery & Snacks Member Alternate Quarter Results
Reported and organic net deals for the Grocery & Snacks member dropped4.1 to$1.3 billion in the quarter driven by a price/ blend drop of0.4, incompletely attributable to an increase in strategic investments, coupled with a volume drop of3.7, primarily due to continued lower consumption trends. The company gained bone
share in snacking and masses orders including microwave oven popcorn and seeds, chili, and hot cocoa.
Operating profit for the member dropped18.0 to$ 279 million in the quarter. Acclimated operating profit dropped17.3 to$ 282 million as productivity was further than neutralize by the negative impacts of cost of goods vended affectation, lower organic net deals, inimical operating influence, and advanced A&P and SG&A.
cooled & firmed Member Alternate Quarter Results
Reported and organic net deals for the Refrigerated & Frozen member dropped5.8 to$1.3 billion in the quarter as price blend dropped2.5, incompletely attributable to an increase in strategic investments, and volume dropped3.3, primarily due to continued lower consumption trends. The company gained bone
share in select orders similar as frozen sides and firmed breakfast and gained unit share in frozen single serve refections.
Operating profit for the member dropped12.0 to$ 220 million in the quarter. Acclimated operating profit dropped14.2 to$ 222 million as productivity and lower A&P were further than neutralize by the negative impacts of inimical operating influence, lower organic net deals, cost of goods vended affectation, and increased SG&A.
transnational Member Alternate Quarter Results
Net deals for the International member increased8.1 to$ 280 million in the quarter reflecting
a2.5 increase from the favorable impact of foreign exchange; and
a5.6 increase in organic net deals.
On an organic net deals base, price/ blend increased2.3 and volume increased3.3 primarily driven by a strong performance in the company’s Mexico business.
Source Link:https://www.conagrabrands.com/
