Grocery & Snacks segment sales increased 7.2% Y/Y to $1.2 billion, and Refrigerated & Frozen segment sales increased 3.4% Y/Y to $1.2 billion.
Adjusted EPS of $0.65 beat the consensus of $0.63.
Adjusted gross profit rose 0.3% to $723 million. The gross margin decreased 183 basis points Y/Y to 24.5%, and the adjusted gross margin decreased 147 basis points to 24.9%.
Adjusted operating margin expanded 96 basis points Y/Y to 15%.
The company reported $499.3 million in selling, general, and administrative expenses, a 14.7% increase Y/Y.
Adjusted EBITDA of $591 million increased 13.5% Y/Y.
Cash and equivalents totaled $83.3 million as of May 29, 2022.
Outlook: Conagra sees FY23 organic net sales growth of 4% - 5%.
Conagra expects FY23 adjusted EPS growth of 1% - 5%.
CAG expects cost of goods sold inflation to continue into FY23.
Price Action: CAG shares are trading lower by 2.35% at $34.90 in premarket on the last check Thursday.
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