ConAgra Brands’ quarterly performance was impressive and the company delivered an all-around beat. Its portfolio experienced strong net sales growth, primarily due to its inflation-driven pricing decisions and persistent constrained elasticities. The company kept expanding its market share across the board, especially in its targeted Frozen & Snacks areas. They also drove significant profit growth in the quarter. Besides, they witnessed another solid result from Ardent Mills as good management allowed the joint venture to keep profiting from market volatility in the wheat sector. On the other hand, their supply chain’s efficiency seems to have grown with time. However, like many of their competitors, they encountered significant operational difficulties during the quarter, both internal and external. The costs and inefficiencies brought on by these difficulties outweighed the gains from greater efficiency and impacted Conagra’s operations in the quarter. Additionally, on a 1-year and 3-year basis, their snacks domain successfully maintained high sales growth. Overall, the management believes they have an excellent start to fiscal 2023 with high top-line growth brought on by inflation-driven price hikes and low elasticities. We give Conagra a ‘Hold’ rating with a revised target price.
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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