Beating Wall Street estimates, Conagra this week issued an upbeat profit forecast and in-line quarterly sales report. In the quarter, ended Nov. 29, net sales increased 6.2% to $3 billion. The maker of Slim Jim is forecasting third-quarter organic sales growth between 6% and 8%.
CHICAGO, Jan. 7, 2021 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) reported results for the second quarter of fiscal year 2021, which ended on Nov. 29, 2020. All comparisons are against the prior-year fiscal period, unless otherwise noted. Certain terms used in this release, including "Organic net sales," "EBITDA," and certain "adjusted" results, are defined under the section entitled "Definitions."
» Second quarter net sales increased 6.2%, and organic net sales increased 8.1%, with significant growth in each of the Company's three retail segments on both a reported and an organic basis.
» Total Company operating margin increased 250 basis points to 17.7%, and adjusted operating margin increased 250 basis points to 19.6%.
» Diluted earnings per share from continuing operations (EPS) for the second quarter grew 45.3% to $0.77, and adjusted EPS grew 28.6% to $0.81.
» From the close of the Pinnacle Foods acquisition through the end of the second quarter, the Company has reduced its gross debt by $2.3 billion; this reduction in debt, together with strong earnings, enabled the Company to achieve its targeted Net Leverage Ratio ahead of schedule.
» The Company is providing guidance for the third quarter of fiscal 2021:
- Organic net sales growth is expected in the range of +6% to +8%
- Adjusted operating margin is expected in the range of 16.0% to 16.5%
- Adjusted EPS is expected in the range of $0.56 to $0.60
» The Company is reaffirming its fiscal 2022 guidance, which does not yet include the impact of the pending sale of the Peter Pan peanut butter business.
Click here to see the company's full second-quarter report and comments from president and chief executive Sean Connolly.