- ConAgra Brands Inc CAG reported third-quarter FY23 sales growth of 5.9% year-on-year to $3.087 billion, broadly in line with the consensus of $3.08 billion.
- Grocery & Snacks segment sales rose 3.7% Y/Y to $1.2 billion, and Refrigerated & Frozen segment sales increased 5.6% Y/Y to $1.3 billion.
- Adjusted EPS rose 31.0% Y/Y to $0.76, beating the consensus of $0.64.
- Adjusted gross profit rose 23.9% to $869 million. Gross margin expanded 325 basis points in the quarter to 27.2%, and adjusted gross margin increased 409 basis points to 28.1%.
- Operating margin expanded 355 basis points to 15.9%, and adjusted operating margin increased 321 basis points to 16.9%.
- The company reported an increase of 3.2% Y/Y to $349 million in selling, general, and administrative expenses.
- Adjusted EBITDA was up 21.1% Y/Y to $669 million.
- Cash and equivalents stood at $71 million as of Feb. 26, 2023. Cash flow from operating activities for nine months totaled $703 million.
- "In response to our continued business momentum and ongoing operating dynamics, we are raising our fiscal 2023 EPS guidance and narrowing our ranges for organic net sales growth and adjusted operating margin," said CEO Sean Connolly.
- Outlook: ConAgra sees FY23 organic net sales growth of 7% - 7.5% (prior view 7% - 8%).
- ConAgra expects FY23 adjusted EPS of $2.70 - $2.75 (consensus $2.68; prior view $2.60 - $2.70), representing 14% - 17% growth.
- Price Action: CAG shares traded lower by 0.48% at $37.40 in the premarket on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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