ConAgra Brands, Inc. CAG reported fourth-quarter FY23 sales growth of 2.2% year-on-year to $2.973 billion, marginally missing the consensus of $2.990 billion.
Adjusted EPS decreased 4.6% to $0.62, beating the consensus of $0.59.
The sales increase was driven by a 9.9% improvement in price/mix, which was boosted by the company's inflation-driven pricing actions and favorable brand mix.
Grocery & Snacks segment sales increased 3.6% to $1.2 billion, and Refrigerated & Frozen segment sales decreased 1.1% to $1.2 billion.
Adjusted gross profit increased 11% to $803 million, driven by higher organic net sales and productivity. Adjusted gross margin increased 216 basis points to 27%.
The company exited the quarter with $93.9 million in cash and equivalents.
Dividend: The company's Board of Directors approved an annual dividend increase from $1.32 to $1.40 per share.
The company's new quarterly dividend payment of $0.35 per share will be paid on August 31, 2023, to stockholders of record on July 31, 2023.
Outlook: ConAgra sees FY24 organic net sales growth of 1% and adjusted EPS of $2.70-$2.75 (consensus $2.85).
"Looking ahead, we anticipate transitioning toward a more normalized operating environment in fiscal 2024 - with easing inflationary pressures and improved supply chain operations - and remain committed to our long-term financial algorithm," said Sean Connolly, president and chief executive officer of Conagra Brands.
Price Action: CAG shares traded lower by 0.18% at $32.92 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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