Conagra saw positive results for last year, with fourth quarter net sales increasing by 25.8%, while organic net sales increased 21.5%, with double-digit growth in each of the Company’s three retail segments. The growth was supported by strong e-commerce performance, significant consumer trial, and solid repeat sales. For the full fiscal year, net sales increased 15.9% to USD11.1 bn.
Gross profit increased 30.3% to USD923m in the quarter, and adjusted gross profit increased 31.1% to USD929m. The increases were primarily driven by the increased sales volume. For the full fiscal year, gross profit increased 15.7% to USD3.07bn. Adjusted gross profit increased 14.3% to USD3.11bn primarily driven by the inclusion of Pinnacle’s gross profit, organic net sales growth, supply chain realized productivity, cost synergies associated with the Pinnacle Foods acquisition, and the inclusion of the 53rd week. These benefits were partially offset by higher input costs, a reduction in profit associated with the Sold Businesses, pandemic-related costs, and the impact of foreign exchange, according to a company statement.
Net sales for the Refrigerated & Frozen segment increased 23.3% to USD1.4bn in the quarter reflecting a 7.2% increase due to the impact of the 53rd week, an 8.4% decrease from the unfavorable impact of foreign exchange, and a 19.8% increase in organic net sales.
On an organic net sales basis, volume increased 18.0% and price/mix increased 1.8%. During the quarter, the segment benefited from elevated demand related to the impacts of the pandemic. The Company’s Canadian, Mexican, and export businesses saw significant volume increases, which were partially offset by lower volumes in India due to the country-wide closure of manufacturing plants and stores during the quarter. The increase in price/mix was primarily attributable to favorable mix. Operating profit for the segment increased 168.5% to USD27m in the quarter. Adjusted operating profit increased 47.2% to USD36m as the increase in organic net sales, the impact of the 53rd week, supply chain realized productivity, and cost synergies associated with the Pinnacle Foods acquisition were partially offset by higher input costs and the impact of foreign exchange.