Conagra Brands, Inc. (NYSE: CAG) announced results for the second quarter of fiscal year 2021 that ended November 29th, 2020. The company reported a net sales increase of 6.2% to USD 3 Billion and organic net sales increase of 8.1% due to significant growth in the company’s three retail segments on a reported and organic basis. Total Company operating margin increased 250 basis points to 17.7% and an adjusted operating margin that increased 250 basis points to 19.6%. Diluted earnings per share from continued operations for the second quarter increased 45.3% to USD 0.77 and an adjusted EPS grew 28.6% to USD 0.81.
Conagra provided guidance for the third quarter: organic net sales growth is expected to range from +6% to +8%. Adjusted operating margin is anticipated to range from 16% and 16.5%. Adjusted EPS is predicted to range from USD 0.56 to USD 0.6.
Sean Connolly, president and chief executive officer of Conagra Brands, commented, “Our second quarter results reflect strong performance across the business and outstanding execution delivered by employees across the company. We exceeded expectations on net sales, profitability, and de-leveraging while continuing to invest in the business. We have continued to selectively invest in production capacity and marketing support to increase the availability and awareness of our products to maximize long-term brand health.”
He continued, “We remain confident that Conagra Brands is well-positioned to capture the benefits of the shifting consumer behavior, many of which we believe will continue well into the future. The continued business momentum, coupled with our disciplined approach to investment, reinforce our confidence in the long-term potential of the business and our ability to create sustained value for our shareholders.”