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EX - 99.1 2 cag - ex991_6.htm EX - 99.1 CONAGRA BRANDS . News Release For more information , please contact : MEDIA : Mike Cummins 312-549-5257 Michael.Cummins@conagra.com INVESTORS : Brian Kearney 312-549-5002 IR@conagra.com FOR IMMEDIATE RELEASE CONAGRA BRANDS REPORTS STRONG SECOND QUARTER RESULTS Exceeded Range for Each Guidance Metric ; Achieved Targeted Net Leverage Ratio Ahead of Schedule CHICAGO , January 7 , 2021— Today Conagra Brands , Inc. ( NYSE : CAG ) reported results for the second quarter of fiscal year 2021 , which ended on November 29 , 2020. All comparisons are against the prior - year fiscal period , unless otherwise noted . Certain terms used in this release , including “ Organic net sales , ” “ EBITDA , " and certain " adjusted " results , are defined under the section entitled “ Definitions . ” See page 5 for more information . Highlights • • • • Second quarter net sales increased 6.2 % , and organic net sales increased 8.1 % , with significant growth in each of the Company's three retail segments on both a reported and an organic basis . • Total Company operating margin increased 250 basis points to 17.7 % , and adjusted operating margin increased 250 basis points to 19.6 % . · Diluted earnings per share from continuing operations ( EPS ) for the second quarter grew 45.3 % to $ 0.77 , and adjusted EPS grew 28.6 % to $ 0.81 . From the close of the Pinnacle Foods acquisition through the end of the second quarter , the Company has reduced its gross debt by $ 2.3 billion ; this reduction in debt , together with strong earnings , enabled the Company to achieve its targeted Net Leverage Ratio ahead of schedule . The Company is providing guidance for the third quarter of fiscal 2021 : ○ Organic net sales growth is expected in the range of + 6 % to + 8 % ○ Adjusted operating margin is expected in the range of 16.0 % to 16.5 % • Adjusted EPS is expected in the range of $ 0.56 to $ 0.60 The Company is reaffirming its fiscal 2022 guidance , which does not yet include the impact of the pending sale of the Peter Pan peanut butter business . CEO Perspective Sean Connolly , president and chief executive officer of Conagra Brands , commented , “ Our second quarter results reflect strong performance across the business and outstanding execution delivered by employees across the company . We exceeded expectations on net sales , profitability , and de - leveraging while continuing to invest in the business . We have continued to selectively invest in production capacity and marketing support to increase the availability and awareness of our products to maximize long - term brand health . ” He continued , " We remain confident that Conagra Brands is well - positioned to capture the benefits of the shifting consumer behavior , many of which we believe will continue well into the future . The continued business momentum , coupled with our disciplined approach to investment , reinforce our confidence in the long - term potential of the business and our ability to create sustained value for our shareholders . "