Conagra Brands Inc. (NYSE: CAG) this week reported results for the fourth quarter and full fiscal year 2021, which ended on May 30, 2021.
Fourth quarter:
- Net sales decreased 16.7%, and organic net sales decreased 10.1% driven by lapping the prior year's significant surge in at-home food consumption at the onset of the COVID-19 pandemic. On a two-year compounded annualized basis, fiscal 2021 fourth quarter net sales increased 2.4% and organic net sales increased 4.5%.
- Operating margin decreased 143 basis points to 10.5%; adjusted operating margin decreased 311 basis points to 14%.
- Diluted earnings per share from continuing operations (EPS) for the fourth quarter grew 56.1% to $0.64, and adjusted EPS declined 28.0% to $0.54. On a two-year compounded annualized basis, fourth quarter EPS increased 56.9% and adjusted EPS increased 22.5%.
Full year fiscal 2021:
- Net sales increased 1.2% and organic net sales increased 5.1%. Organic net sales benefited from strong growth in each of the company's three retail reporting segments. On a two-year compounded annualized basis, fiscal 2021 net sales increased 8.3% and organic net sales increased 5.4%.
- Operating margin increased 279 basis points to 15.9%; adjusted operating margin increased 101 basis points to 17.5%.
- EPS for fiscal 2021 grew 54.7% to $2.66; adjusted EPS grew 15.8% to $2.64. On a two-year basis, adjusted EPS grew 14.6%.
CEO Perspective
Sean Connolly, president and chief executive officer of Conagra Brands, commented, "I am very proud of how the entire Conagra Brands team responded to fiscal 2021's dynamic environment. Our strong results – both in the absolute and relative to competition – reflect the team's dedication to executing the Conagra Way each day. We successfully responded to the heightened consumer demand while continuing to invest in the long-term health of the business. Our business remains very strong, and we believe we are well-positioned to continue to win with consumers."
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