Conagra Brands reported results for the fourth quarter and full fiscal year 2021, which ended on May 30, 2021. The numbers show steady growth in both sales and profit.
Net sales increased 1.2% to USD11.2bn, while organic net sales increased 5.1%, benefitting from strong growth in each of Conagra’s three retail reporting segments. On a two-year compounded annualized basis, fiscal 2021 net sales increased 8.3% and organic net sales increased 5.4%. Operating margin increased to 15.9% and adjusted operating margin increased to 17.5%. For the full fiscal year, gross profit increased 3.6% to USD3.2bn. Gross margin increased to 28.4%, and adjusted gross margin increased to 28.6%. The benefits from the organic net sales increase, supply chain realized productivity, favorable margin mix, cost synergies associated with the Pinnacle Foods acquisition, and favorable fixed cost leverage more than offset the impacts from cost of goods sold inflation, increased COVID-19-related expenses, and the lost profit from the Sold Businesses, and last year’s 53rd week.
“I am very proud of how the entire Conagra Brands team responded to fiscal 2021’s dynamic environment. Our strong results – both in the absolute and relative to competition – reflect the team’s dedication to executing the Conagra Way each day. We successfully responded to the heightened consumer demand while continuing to invest in the long-term health of the business. Our business remains very strong, and we believe we are well-positioned to continue to win with consumers,” Sean Connolly, president and chief executive officer of Conagra Brands said.