
Conagra Brands reported results for the first quarter of fiscal year 2024, which ended on August 27, 2023.
During the quarter, net sales were USD2.9bn reflectin a 0.3% increase from the favorable impact of foreign exchange and a 0.3% decrease in organic net sales. As such, Q1 net sales were flat to the prior year. Operating margin in the quarter was 16.8% representing a 1,757 basis point increase over the prior year quarter. Adjusted operating margin was 16.7%, representing a 297 basis point increase over the prior year quarter, according to the company.
Gross profit increased 14.3% to USD823m and adjusted gross profit increased 10.9% to USD801m. First quarter gross profit increased primarily as a result of inflation-driven pricing that was implemented in fiscal 2023 and productivity, which more than offset the negative impacts of cost of goods sold inflation, unfavorable operating leverage, and lower organic net sales. Gross margin increased 354 basis points to 28.3% in the quarter, and adjusted gross margin increased 272 basis points to 27.6%.
The company is reaffirming its fiscal 2024 guidance, reflecting organic net sales growth of approximately 1.0% compared to fiscal 2023, adjusted operating margin between 16.0% and 16.5%, and an adjusted EPS between USD2.70 and USD2.75.
“I am proud of our team for delivering another quarter of strong margin recovery and EPS growth despite facing industry-wide macro dynamics that have affected consumer purchasing behavior and elongated the volume recovery period. We will continue to focus on executing our Conagra Way playbook as we make targeted and disciplined investments throughout the remainder of the year to drive the top-line. We are reaffirming our guidance for fiscal 2024, reflecting confidence in our plans, people and agility as we continue to navigate a shifting consumer environment,” said Sean Connolly, president and chief executive officer of Conagra Brands.
Find out more at: https://www.conagra.com