Conagra Brands has reported results for the fourth quarter and full fiscal year 2022, which ended on May 29, 2022.
For the fourth quarter, net sales increased 6.2% and organic net sales increased 6.8%. Operating margin decreased 310 basis points to 7.4%; adjusted operating margin increased 96 basis points to 15.0%.
Regarding full fiscal year results, gross profit decreased 10.7% to USD2.8bn and adjusted gross profit decreased 10.5% to USD2.9bn.
Net sales for the Refrigerated & Frozen segment increased 3.4% to USD1.2bn in the quarter, reflecting a 0.9% decrease from the impact of the sold business, and a 4.3% increase in organic net sales.
On an organic net sales basis, price/mix increased 12.4% and volume decreased 8.1%. Price/mix was primarily driven by favorability in inflation-driven pricing coupled with favorable brand mix. The volume decline was primarily due to the elasticity impact from inflation-driven pricing actions. In the quarter, the company gained share in categories such as frozen single serve meals, frozen meat substitutes, and frozen desserts. Operating profit for the segment decreased 34.4% to USD77m in the quarter. Adjusted operating profit decreased 6.4% to USD185mn as the benefits of higher organic net sales, supply chain realized productivity, lower A&P investment, decreased COVID-19 related expenses, and cost synergies associated with the Pinnacle Foods acquisition were more than offset by cost of goods sold inflation and lost profit from the segment’s sold business.