Revenue
Earnings
The consensus estimate for EPS is $0.60, which is higher than the $0.57 reported in the year-ago period. In Q4 2023, adjusted EPS decreased 5% YoY to $0.62.
Points to note
On its Q4 conference call, Conagra said it expected to see a more normalized operating environment in FY2024 with an ease in inflationary pressures and an improvement in supply chain operations. The company expects its productivity initiatives and investments in innovation to drive growth in the upcoming fiscal year, which bodes well for the first quarter too.
At the same time, it appears customers are buying fewer items overall which has led to a lag in volume recovery. This trend is expected to be a headwind in the near term. Volumes may have been impacted by this in the first quarter.
In the fourth quarter, sales growth was driven by a nearly 10% improvement in price/mix, which was partly offset by a nearly 8% decline in volume. Gross profit benefited from higher organic net sales and productivity. Gross margin increased 183 basis points to 26.3% in Q4.
In Q4, Conagra saw sales growth across all its segments, except for Refrigerated & Frozen, which was driven by favorable price/mix. Volumes, however, declined across all segments. The company gained share in categories like snacks, pasta, sauces and multi-serve meals. These trends are likely to continue in the first quarter.