Conagra Brands, Inc. (CAG) has reported a 12.17 percent fall in profit for the quarter ended Feb. 26, 2017. The company has earned $179.70 million, or $0.41 a share in the quarter, compared with $204.60 million, or $0.46 a share for the same period last year. On an adjusted basis, earnings from continuing operations per share were at $0.48 for the quarter compared with $0.35 in the same period last year.
Revenue during the quarter dropped 9.92 percent to $1,981.20 million from $2,199.30 million in the previous year period. Gross margin for the quarter expanded 316 basis points over the previous year period to 31.34 percent. Total expenses were 86.31 percent of quarterly revenues, down from 92.14 percent for the same period last year. This has led to an improvement of 584 basis points in operating margin to 13.69 percent.
Operating income for the quarter was $271.30 million, compared with $172.80 million in the previous year period.
Sean Connolly, president and chief executive officer of Conagra Brands, commented, "I am pleased with our ongoing progress in reshaping our portfolio, capabilities, and culture. Our disciplined focus on controlling costs and upgrading the quality of our revenue base are delivering the desired impact. We are also excited about our innovation lineup, which we expect to begin hitting stores this summer."
For financial year 2017, Conagra Brands, Inc. forecasts revenue to decline in the range of 4 percent to 5 percent. It forecasts adjusted operating income to grow in the range of 15.30 percent to 15.50 percent. It expects diluted earnings per share to be in the range of $1.65 to $1.70 on adjusted basis for the same period.
Operating cash flow improves
Conagra Brands, Inc. has generated cash of $846.50 million from operating activities during the nine month period, up 14.61 percent or $107.90 million, when compared with the last year period.
Cash flow from investing activities was $111.20 million for the nine month period, down 95.07 percent or $2,145.20 million, when compared with the last year period. It has incurred net capital expenditure of $254.10 million on net basis during the nine month period, up 56.76 percent or $92 million from year ago period.
The company has spent $1,107 million cash to carry out financing activities during the nine month period as against cash outgo of $2,673 million in the last year period.
Cash and cash equivalents stood at $683.60 million as on Feb. 26, 2017, up 46.70 percent or $217.60 million from $466 million on Feb. 28, 2016.
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