Conagra Brands Q2 2020 net sales increased 18.3%
Christian Fernsby ▼ | December 20, 2019
Conagra Brands reported results for the second quarter of fiscal year 2020, which ended on November 24, 2019.Article continues below
Topics: CONAGRA BRANDS
Second quarter net sales increased 18.3%; organic net sales increased 1.6%, with positive organic net sales growth in each reporting segment.
Diluted earnings per share from continuing operations (EPS) was $0.53 in the quarter; adjusted EPS was $0.63, with high single-digit growth in adjusted net income.
Conagra Brands's integration of Pinnacle remained on track in the quarter, with approximately $42 million of incremental cost synergies realized in the quarter, bringing total cumulative cost synergy realization to $112 million from the closing of the acquisition through the end of the second quarter.
Conagra Brands is updating its total targeted annual cost synergies for the Pinnacle acquisition from $285 million by the end of fiscal 2022 to $305 million by the end of fiscal 2022.
Conagra Brands expects the additional $20 million of cost synergies to be fully realized in fiscal 2020 and plans to reinvest the additional savings this fiscal year into longer-term sales-driving investments.
During the quarter, Conagra Brands continued to reshape its portfolio by divesting its Direct Store Delivery (DSD) snacks business.
Subsequent to quarter end, Conagra Brands sold a peanut butter manufacturing facility and began the process of exiting the manufacture and sale of private label peanut butter.
Conagra Brands is updating its fiscal 2020 guidance primarily to reflect the impacts of these portfolio initiatives. ■ What to read next
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