Conagra Brands (CAG) 2021 Q3 Financial Results

Conagra Brands Inc (NYSE:CAG) started operating as a flour-milling company back in 1919. It started producing its own flour in 1940. A couple of years later, it stepped into the livestock feed business. In 1951, the company established a brand of cake mixes in an effort to market more flour. The organic growth of its brands, addition of new categories, as well as acquisitions helped Conagra in transforming into a consumer-packaged goods food giant.

The Chicago, Illinois-based company recently announced better-than-expected financial results for the third quarter. Conagra reported earnings of $281.4 million, or 58 cents per share for the three months ended February 28, up from $204.4 million, or 42 cents per share in the comparable period of 2020.

Excluding certain items, the company reported adjusted earnings of 59 cents per share, just ahead of 58 cents per share estimated by analysts. Revenue for the quarter rose 8.5 percent on a year-over-year basis to $2.77 billion, beating the consensus forecast of $2.72 billion.

If we look at the performance of key businesses, revenue from the refrigerated and frozen segment jumped 11.7 percent to $1.20 billion, while revenue from the grocery and snacks segment increased 10.8 percent to $1.13 billion. However, foodservice revenue fell 17.2 percent to $194 million, mainly due to the negative impact of the pandemic on the segment.

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Speaking on the results, CEO Sean Connolly said in a statement, “We have made significant investments in our business over the past five-plus years, modernizing our products to generate consumer demand. Our strong third-quarter results benefited from these investments. We continued to invest in the business during the quarter, with a focus on ensuring our products are available both online and in stores, as we aim to maximize consumer acquisition during this period of heightened demand.”

Looking forward, Conagra expects adjusted earnings in the range of 49 cents per share to 55 cents per share for the fiscal fourth quarter, in line with the consensus forecast of 51 cents per share.

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