Conagra Brands, Inc. (CAG) has reported a 28.66 percent rise in profit for the quarter ended May 28, 2017. The company has earned $151.30 million, or $0.36 a share in the quarter, compared with $117.60 million, or $0.27 a share for the same period last year.
Revenue during the quarter dropped 9.32 percent to $1,861.70 million from $2,053 million in the previous year period. Gross margin for the quarter expanded 16 basis points over the previous year period to 28.41 percent. Operating margin for the quarter period stood at positive 5.97 percent as compared to a negative 7.38 percent for the previous year period.
Operating income for the quarter was $111.20 million, compared with an operating loss of $151.50 million in the previous year period.
Sean Connolly, president and chief executive officer of Conagra Brands, commented, "Fiscal 2017 marked our second year of tremendous progress in reshaping our company for success. The aggressive actions we have taken to upgrade the quality of our revenue base, while focusing and modernizing our portfolio, have enabled us to improve our margins and jump-start innovation. Guided by our portfolio management principles outlined at our investor day, we are producing solid results. We are confident in our ability to continue to build on this momentum and drive long-term shareholder value."
For fiscal year 2018, Conagra Brands, Inc. expects adjusted operating income to grow in the range of 15.90 percent to 16.30 percent. It projects diluted earnings per share to be in the range of $1.84 to $1.89 on adjusted basis for the same period.
Operating cash flow declines
Conagra Brands, Inc. has generated cash of $1,175.50 million from operating activities during the year, down 6.65 percent or $83.70 million, when compared with the last year.
The company has spent $189.30 million cash to meet investing activities during the year as against cash inflow of $2,127.40 million in the last year. It has incurred net capital expenditure of $554.60 million on net basis during the year, up 119.90 percent or $302.40 million from year ago.
The company has spent $1,569.10 million cash to carry out financing activities during the year as against cash outgo of $2,733.20 million in the last year period.
Cash and cash equivalents stood at $251.40 million as on May 28, 2017, down 68.50 percent or $546.70 million from $798.10 million on May 29, 2016.
Debt comes down significantly
Conagra Brands, Inc. has recorded a decline in total debt over the last one year. It stood at $2,996.40 million as on May 28, 2017, down 45.07 percent or $2,458.30 million from $5,454.70 million on May 29, 2016.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
