The results for the first quarter of FY2021 posted by Conagra Brands (CAG) on October 1st demonstrate the current dichotomy induced by COVID in the U.S. food industry. With eat-at-home boosting sales in packaged and frozen foods Conagra Brands reported a twenty percent decline in sales to the food service sector.
For the quarter ending August 30th, CAG posted net income of $329 million on revenue of $2.68 billion with earnings per share of $0.67. Comparable figures for Q1 of fiscal 2020 were net income of $174 million on revenue of $2.39 billion with earnings per share of $0.36. Gross margin declined from 73 percent in Q1 of 2020 to 69 percent in Q1 of 2021. For fiscal 2021, guidance included a one percent to two percent increase in sales an operating margin between 18 percent and 19 percent and earnings per share of $2.66 to $2.76.
CAG posted assets of $22.38 billion of which $15.74 billion was represented by the category of Goodwill, Brand Equity and Intangibles. Long-term debt was $11.08 billion.
On October 1st, CAG market capitalization was $17.53 billion. The company share price traded over a 12-month range of $22.83 to $39.34 with a 50-day moving average of $36.54. CAG trades with a forward P/E of 15.1 and closed on Thursday, October 1st at $35.87. The twelve-month trailing return on assets is 5.1 percent and on equity 10.9 percent. Trailing twelve-month operating margin was 16.4 percent and profit margin 7.6 percent.