Conagra reports 100+% increase in EPS for 2Q

5 Jan 2018

Conagra has reported results for the second quarter fiscal year 2018, which saw diluted earnings per share (EPS) from continuing operations grew 107.7% from $0.26 to $0.54 in the quarter.

Conagra reports 100+% increase in EPS for 2Q

Conagra has reported results for the second quarter fiscal year 2018, which ended on November 26, 2017.

Net sales grew 4.1% and organic net sales grew 2.3% in the quarter with growth in each operating segment. The company estimates that the recent hurricanes increased its net sales and organic net sales growth rates by approximately 220 basis points.

Diluted earnings per share (EPS) from continuing operations grew 107.7% from $0.26 to $0.54 in the quarter; adjusted diluted EPS from continuing operations grew 12.2% from $0.49 to $0.55.

The Refrigerated & Frozen segment continued its growth momentum in the second quarter with 4% volume growth.

For fiscal 2018, the company now expects its organic net sales and adjusted EPS to be near the high end of their respective guidance ranges.

Sean Connolly, president and chief executive officer of Conagra Brands, said: "One year after becoming a pure-play, branded food company, Conagra is growing again. Our work to upgrade the quality of our revenue base and rebuild our innovation pipeline is bearing fruit, particularly in our frozen business, where we put much of our year-one focus. Better than expected top-line performance through the second quarter is enabling us to invest more in our U.S. retail business to enhance distribution, merchandising, and consumer trial of our brands – especially where we have new renovation or innovation. Accordingly, we are updating our fiscal 2018 organic net sales and EPS guidance to near the high end of their respective ranges."

"Higher-than-anticipated inflation, hurricane-related costs, and increased investments to drive distribution and consumer trial are pressuring margins in the near term. We expect fiscal 2018 operating margins to be near the low end of our guidance range as a result of these factors, and our transformation plan remains squarely on-track to achieve our fiscal 2020 targets."