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Conagra Brands Releases Q2 FY 2022 Financial Results

07/15/2022

In a July 14th 2022 release, Conagra Brands (CAG) released financial results for the 4th quarter and Fiscal 2022 ending May 29th. The Company can be regarded as representative of the food manufacturing and packaged sector and with competitors including Post holdings and Kraft-Heinz all currently under pressure to reduce prices to the major retail and supermarket chains. In an inflationary environment consumers are turning to less expensive private brands but eat-at-home will benefit Conagra Brands.

 

Sean Connolly, president and CEO of Conagra Brands, commented, “Throughout fiscal 2022 our team took decisive actions to offset inflation and invest in our business. I'm pleased that our brands continued to resonate with consumers, and we continued to grow share." He continued, “I was also pleased to see margin improvement materialize in the fourth quarter in Grocery & Snacks and Foodservice. This represents an important inflection that we expect will extend to our Refrigerated & Frozen and International businesses as fiscal 2023 progresses.”

 

For the fourth quarter of 2022, net income was $159 million on total revenue of $2,910 million with a diluted EPS of $0.33.  Comparable figures for the 4th quarter of Fiscal 2021 ending May 30th 2020 were net income of $310 million on total revenue of $2,739 million with an EPS of $0.64.

 

For Fiscal 2022, net income was $888 million on total revenue of $11,536 million with a diluted EPS of $1.85.  Comparable figures for Fiscal 2021 ending May 30th 2021 were net income of $1,299 million on total revenue of $11,185 million with an EPS of $2.67.

 

The release included results for the four operating segments:-

  • Foodservice: Operating profit of $22 million on revenue of $287 million
  • Refrigerated and Frozen: Operating profit of $77 million on revenue of $1,200 million
  • International: Operating profit of $20 million on revenue of $231 million
  • Groceries and Snacks: Operating profit of $163 million on revenue of $1,200 million

 

Conagra Brands listed assets of $22,435 million, including $15,182 million goodwill and intangibles, against long-term debt and other obligations of $8,088 million. The Company had an intraday market capitalization of $15,910 million on July 15th. CAG trades with a forward P/E of 13.1 and has ranged over a 52-week period from $30.06 to $36.97 with a 50-day moving average of $33.71. Twelve-month trailing operating margin was 15.1 percent and profit margin 9.1 percent.  Return on assets over the past twelve months was 4.8 percent and the return on equity 312.1 percent. At close of trading on June 14th pre-release, CAG was priced at $35.78 but opened closed at $32.84 on July 15th, post-release.