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    Conagra Brands Reports Solid Second Quarter Results

    Dec. 23, 2019

    Source Conagra Brands, Inc.

    Conagra Brands, Inc.
    Conagra

    CHICAGO, Dec. 19, 2019 /PRNewswire/ -- Today Conagra Brands, Inc. (NYSE: CAG) reported results for the second quarter of fiscal year 2020, which ended on November 24, 2019. All comparisons are against the prior-year fiscal period, unless otherwise noted. Certain terms used in this release, including "Organic net sales," "EBITDA," "Free cash flow," and certain "adjusted" results, are defined under the section entitled "Definitions." See page 6 for more information.

  • Second quarter net sales increased 18.3%; organic net sales increased 1.6%, with positive organic net sales growth in each reporting segment.
  • Diluted earnings per share from continuing operations (EPS) was $0.53 in the quarter; adjusted EPS was $0.63, with high single-digit growth in adjusted net income.
  • The Company's integration of Pinnacle remained on-track in the quarter, with approximately $42 million of incremental cost synergies realized in the quarter, bringing total cumulative cost synergy realization to $112 million from the closing of the acquisition through the end of the second quarter.
  • The Company is updating its total targeted annual cost synergies for the Pinnacle acquisition from $285 million by the end of fiscal 2022 to $305 million by the end of fiscal 2022. The Company expects the additional $20 million of cost synergies to be fully realized in fiscal 2020 and plans to reinvest the additional savings this fiscal year into longer-term sales-driving investments.
  • During the quarter, the Company continued to reshape its portfolio by divesting its Direct Store Delivery (DSD) snacks business. Subsequent to quarter end, the Company sold a peanut butter manufacturing facility and began the process of exiting the manufacture and sale of private label peanut butter. The Company is updating its fiscal 2020 guidance primarily to reflect the impacts of these portfolio initiatives.

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