CHICAGO, June 27, 2018 /PRNewswire/ -- Today Conagra Brands, Inc. reported results for the fourth quarter and full fiscal year 2018, which ended on May 27, 2018. All comparisons are against the prior year fiscal period, unless otherwise noted.
Fourth Quarter Highlights
- In the quarter, net sales grew 5.6%, and organic net sales1 grew 2.0%.
- Gross margin expanded 85 basis points to 29.3%; adjusted2 gross margin expanded 12 basis points to 29.2%.
- Every segment showed operating profit growth and operating margin expansion.
- The Refrigerated & Frozen segment continued its strong momentum with 7.9% net sales growth and 5.2% organic net sales growth. This is the segment's fourth consecutive quarter of organic net sales growth.
- Sales trends continue to improve in the Grocery & Snacks segment with 7.1% net sales growth and 1.1% organic net sales growth. The segment has now reported three consecutive quarters of consumption growth.
- Diluted earnings per share (EPS) from continuing operations decreased from $0.36 to $0.18 in the quarter, and adjusted diluted EPS from continuing operations grew 35.1% from $0.37 to $0.50.
Full-Year Highlights
- For the full fiscal year, net sales grew 1.4%, and organic net sales declined 0.2%, near the high end of the full year guidance range.
- Despite higher-than-expected inflation, full year adjusted operating margin was within the original full year guidance range.
- For the full fiscal year, EPS from continuing operations increased 56.0% to $1.95, and adjusted diluted EPS from continuing operations grew 21.3% to $2.11.
CEO Perspective
Sean Connolly, president and chief executive officer of Conagra Brands, commented, "Fiscal 2018 marked another year of tremendous progress in our transformation, despite a challenging inflationary environment. The year was further proof that we are squarely on track to deliver on the long-term commitments we presented at our 2016 investor day. Since then, we have improved our sales performance with innovation, renovation and enhanced marketing capabilities. We've also driven profitability through a focus on executional excellence and we created an externally-focused, results-oriented culture. Clearly, our hard work is paying off with improved and more consistent performance, and I am very proud of the progress we have made over the past three years."
Connolly added, "Looking ahead, our fiscal 2019 guidance anticipates solid growth in our net sales, adjusted gross profit, and adjusted operating profit, consistent with our long-term plan. We are confident we will sustain the progress we've made on our fundamentals, and we are well-positioned to continue to drive meaningful value creation. Our pending acquisition of Pinnacle Foods, which we also announced this morning, will further enhance our progress and we expect it will provide incremental opportunities to capture value for our shareholders."
