RTTNews | Oct 7, 2021 08:19AM EDT

08:19 Thursday, October 7, 2021 (RTTNews.com) - Conagra Brands, Inc. (CAG) reported that its first-quarter adjusted net income attributable to company decreased 30.2% year-on-year driven primarily by the decrease in gross profit. Gross margin decreased 486 basis points to 25.4% in the quarter, and adjusted gross margin decreased 530 basis points to 25.4%. Organic net sales were down 0.4%, for the quarter. Looking forward, the company reaffirmed fiscal 2022 guidance for adjusted earnings per share, and adjusted operating margin. Organic net sales growth is now expected to be approximately 1%, revised from prior guidance of approximately flat.

For the first quarter, adjusted EPS decreased 28.6% to $0.50 from $0.70, a year ago. On average, 15 analysts polled by Thomson Reuters expected the company to report profit per share of $0.49, for the quarter. Analysts' estimates typically exclude special items. Adjusted operating profit was $375 million, down 30.6%.

Net income attributable to Conagra Brands was $235.4 million compared to $329.0 million, last year. Earnings per share was $0.49 compared to $0.67.

Net sales were $2.65 billion, down 1.0% from previous year. Analysts expected revenue of $2.54 billion, for the quarter. The 0.4% decrease in organic net sales was driven by a 2.0% decrease in volume and a favorable price/mix impact of 1.6%. The company said the volume decrease was primarily a result of lapping the prior year's surge in at-home food demand due to the COVID-19 pandemic.

The company continues to expect fiscal 2022 adjusted EPS to be approximately $2.50. Analysts polled by Thomson Reuters expect the company to report profit per share of $2.46. Adjusted operating margin is projected to be approximately 16% for the full year.

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