NYSE$CAG

ConAgra Foods Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Conagra Brands reported first quarter results, with net sales increasing and adjusted EPS exceeding expectations, despite facing inflationary pressures and supply chain challenges.

Conagra Brands reported a 9.5% increase in net sales to $2.9 billion for the first quarter of fiscal year 2023. Organic net sales increased by 9.7%, driven by a 14.3% improvement in price/mix, offsetting a 4.6% decrease in volume. Adjusted EPS was $0.57, while diluted loss per share was $0.16, impacted by non-cash impairment charges.

  • Net sales increased by 9.5%, with organic net sales up by 9.7%.
  • Adjusted EPS reached $0.57, while diluted loss per share was $0.16 due to impairment charges.
  • Gross profit increased by 7.0% to $720 million, and adjusted gross profit increased 7.1% to $723 million.
  • The company reaffirms its fiscal 2023 guidance, projecting organic net sales growth of 4% to 5% and adjusted EPS growth of 1% to 5%.

Headline financials

Total Revenue

$2.9B

Previous: $2.65B+9.5%
EPS (adj)

$0.57

Previous: $0.50+14.0%
Organic Sales Growth

9.7%

Previous: -0.4%+2525.0%
Adj. Operating Margin

13.7%

Previous: 14.1%-2.8%
Capital Expenditures

-$125M

Previous: -$155M+19.0%
Free Cash Flow

-$203M

Previous: $80.5M-352.0%
Net Income

-$77.5M

Previous: $235M-132.9%
Operating Income

$62.2M

Previous: $428M-85.5%
Gross Profit

$720M

Previous: $673M+7.0%
Cash & Equivalents

$67.4M

Previous: $67M+0.6%
Total Assets

$22.2B

Previous: $22.5B-1.4%
Stock-Based Comp

$23M

Previous: $2.6M+784.6%

Revenue & EPS history

ConAgra · Revenue · Quarterly

$2.9B

Q1 2023+9.5%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

ConAgra · $509M total across 2 segments · Q1 2023

  • Foodservice
    $275M+14.7%
  • International
    $234M-1.1%

Forward guidance

Conagra Brands reaffirms its fiscal year 2023 guidance, anticipating organic net sales growth of 4% to 5%, an adjusted operating margin of approximately 15%, and adjusted diluted EPS growth of 1% to 5%.

Tailwinds

  • Reaffirming fiscal 2023 guidance.
  • Organic net sales growth expected to be 4% to 5%.
  • Adjusted operating margin expected to be approximately 15%.
  • Adjusted diluted EPS growth expected to be 1% to 5%.
  • Capital expenditures of approximately $500M.

Headwinds

  • Continued supply chain inefficiency tied to the dynamic operating environment.
  • Some incremental volume weakness tied to the new inflation-driven pricing.
  • Gross inflation is expected to continue but moderate through the remainder of the fiscal year, resulting in low-teen levels.
  • Commodity relief is expected to be weighted towards the back half of the fiscal year.
  • Not planning for elevated performance from Ardent Mills to continue throughout the remainder of the fiscal year due to the volatile nature of the business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.4%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.0%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+20.7%

Q2 2020

Best reaction

-23.9%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-0.1%-6.2%
Q2 2026-2.6%-4.0%-4.7%
Q1 2026+5.5%+2.2%-6.1%
Q4 2025-1.3%-6.2%-6.8%
Q3 2025+1.5%-5.3%-9.6%
Q2 2025-0.9%+1.0%-5.7%
Q1 2025-10.3%-11.1%-11.5%
Q4 2024-1.6%+0.6%+4.7%
Q3 2024+7.0%+7.6%+5.3%
Q2 2024-3.7%+0.1%+0.6%
Q1 2024-0.5%+3.8%+4.8%
Q4 2023-0.2%-2.4%-5.2%
Q3 2023+2.1%-0.0%+0.6%
Q2 2023+6.0%+4.6%-5.7%
Q1 2023-2.8%+0.3%+6.4%
Q4 2022-5.6%-6.4%-3.8%
Q3 2022+0.5%+2.2%+3.6%
Q2 2022+1.8%-0.5%+1.7%
Q1 2022-2.2%-3.1%-5.5%
Q4 2021-5.7%-3.0%-6.5%
Q3 2021-2.8%-0.1%+1.9%
Q2 2021-4.6%-7.9%-3.1%
Q1 2021+3.3%+3.2%-1.7%
Q4 2020+5.8%+5.1%+10.9%
Q3 2020+5.4%+10.6%+18.5%
Q2 2020+20.7%+17.2%+14.7%
Q1 2020+1.3%-1.4%-10.0%
Q4 2019-8.3%-7.8%+0.8%
Q3 2019+15.5%+18.4%+33.3%
Q2 2019-23.9%-27.9%-25.9%
Q1 2019-5.8%-7.3%-1.8%
Q4 2018-6.3%-8.4%-2.5%
Q3 2018+0.5%+2.7%+3.1%
Q2 2018-0.2%+0.2%-1.0%
Q1 2018+1.2%+0.2%+1.0%
Q4 2017-4.3%-5.0%-8.4%
Q3 2017-0.0%-0.7%+0.4%
Q2 2017+4.7%+4.9%+3.0%
Q1 2017+9.2%+10.1%+11.5%
Q4 2016+1.7%+0.3%-1.8%
Q3 2016+1.6%
Q2 2016+3.5%
Q1 2016-6.8%
Q4 2015+2.7%
Q3 2015+5.2%
Q2 2015-0.6%
Q1 2015+5.0%
Q4 2014+3.1%
Q3 2014+1.6%
Q2 2014+5.5%
Q1 2014-3.3%
Q4 2013+4.7%
Q3 2013-2.5%
Q2 2013-0.6%
Q1 2013+7.3%
Q4 2012+3.0%
Q3 2012+1.1%
Q2 2012-1.2%
Q1 2012-1.4%
Q4 2008+0.6%
Q4 2011+0.6%
Q3 2011-0.1%
Q2 2011+0.3%
Q1 2011+0.3%
Q4 2010+1.1%
Q3 2010-0.1%
Q3 2009-0.1%
Q2 2010+0.1%
Q1 2010-0.5%
Q4 2009-0.5%
Q1 2009-0.5%
Q2 2009-0.5%

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