Conagra Brands Post Q2 Results


On January 7th Conagra Brands Inc. (CAG) reported results for the second quarter of fiscal 2021 ending November 29th 2020.  For the quarter, net sales increased by 6.2 percent to $2.995 billion.  Net income increased 45.4 percent to $378.9 million and EPS advanced by a proportional amount to $0.77.  The company paid down $2.3 billion in long-term debt and anticipates adjusted EPS for the third quarter of fiscal 2021 to attain a range of $0.56 to $0.60.


The Grocery and Snacks segment posted a 12.5 percent increase in net sales with an operating profit of $316 million.  For the Refrigerated and Frozen foods segment, net sales increased by 6.8 percent and operating profit increased to $264 million.  The International segment achieved a 6.6 percent increase in sales with an operating profit of $40 million.  Consistent with COVID-19 restrictions the Foodservice segment experienced a net sales decrease of 23.1 percent and operating profit declined to $22 million.


Conagra Brands has a market capitalization of $16.65 billion and has traded over the past fifty-two weeks in a range of $22.83 to $38.34 with a 50-day moving average of $35.81.


The company has generated a twelve-month trailing operating margin of 17.8 percent and a profit margin of 9.7 percent.  CAG achieved a return on assets of 5.7 percent and 13.8 percent on equity.