Conagra Brands Inc reported fiscal third-quarter results Wednesday morning, revealing top-line growth and upwardly revised guidance that sent shares higher.
For the three-month period ended February 26, net sales grew 5.9% to $3.1 billion and organic net sales jumped 6.1% year-over-year. Adjusted EPS increased 31% to $0.76. Reported and organic net sales for the grocery and sacks segment increased 3.7% to $1.2 billion in the quarter, while sales for the refrigerated and frozen segment increased 5.6% to $1.3 billion.
"We delivered another quarter of strong results reflecting the ongoing strength of our brands and successful execution of the Conagra Way playbook,” CEO Sean Connolly said in a statement.
“Our top-line posted solid growth as we demonstrated strong pricing execution with modest elasticities. Additionally, our productivity and service level improvement allowed us to continue to make meaningful progress on our adjusted gross margin and adjusted operating margin recovery, despite more impactful supply chain disruptions than anticipated.
Accordingly, Conagra revised upward its fiscal 2023 guidance. The company now projects organic net sales growth of 7% to 7.5% compared to fiscal 2022, an adjusted operating margin between 15.5% and 15.6% and adjusted EPS between $2.70 and $2.75. The latter would represent growth of 14% to 17% compared to fiscal 2022.
Shares of Conagra climbed nearly 2% to $38.21.
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