ConAgra Brands Inc CAG reported Q1 FY24 sales of $2.90 billion, flat Y/Y, missing the consensus of $2.95 billion.
Organic sales fell 0.3% Y/Y in Q1, led by a 6.6% Y/Y decline in volume on an industry-wide slowdown in consumption and recent consumer behavior shifts.
Grocery & Snacks segment sales increased 1.2% Y/Y to $1.2 billion, and Refrigerated & Frozen segment sales fell 4.6% Y/Y to $1.2 billion.
Adjusted gross profit increased 10.9% to $801 million, driven by inflation-driven pricing implemented in FY23 and productivity. Adjusted gross margin increased 272 basis points to 27.6%.
Adjusted EPS increased 15.8% to $0.66, beating the consensus of $0.60.
The company exited the quarter with $93.3 million in cash and equivalents.
Dividend: The company's Board of Directors approved a quarterly dividend per share of $0.35, payable on November 30, 2023, to stockholders of record as of November 2, 2023.
Outlook: ConAgra reaffirmed FY24 organic net sales growth of 1% and adjusted EPS of $2.70-$2.75 (consensus $2.72).
For Q2, the company expects organic net sales to decrease in low-single digits as volume declines improve as inflation-driven pricing actions are wrapped.
CAG projects Q2 gross and operating margins below Q1 owing to incremental trade and A&P investment.
For H2, the company sees organic net sales growth in low-single digits on higher volumes, with margins similar to Q2 on elevated trade and A&P dollars.
Price Action: CAG shares are trading higher by 0.62% at $26.69 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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