Conagra Brands, Inc., announced a quarterly dividend payment of $0.20 per share of CAG common stock to be paid on May 30, 2017, to stockholders of record as of the close of business on April 28, 2017.

On March 23, the company reported reported results for the fiscal 2017 third quarter ended February 26, 2017.

Highlights, with all comparisons against the year ago period, unless otherwise noted:

CEO Perspective
Sean Connolly, president and chief executive officer of Conagra Brands, commented, "I am pleased with our ongoing progress in reshaping our portfolio, capabilities, and culture. Our disciplined focus on controlling costs and upgrading the quality of our revenue base are delivering the desired impact. We are also excited about our innovation lineup, which we expect to begin hitting stores this summer." 

He added, "Now that we have completed the third quarter, we are updating our full year guidance to reflect the beneficial timing of certain costs and the softer near-term macro environment. We expect to deliver adjusted diluted EPS at or slightly above the high-end of our range with net sales (excluding the impacts of divestitures and foreign exchange) at or slightly below the low-end of our range."

Grocery & Snacks Segment
Net sales for the Grocery & Snacks segment decreased 5% to $850 million. Volume declined 5%.

Operating profit for the segment increased 32%, and adjusted operating profit increased 8%, reflecting continued margin expansion in the quarter.

Refrigerated & Frozen Segment
Net sales for the Refrigerated & Frozen segment decreased 6% to $666 million. Volume declined 6%.

Operating profit for the segment increased 10%, and adjusted operating profit increased 5%.

International Segment
Net sales for the International segment decreased 3% to $205 million. A 3% increase in price/mix was more than offset by a 2% decrease in foreign exchange and 4% decrease in volume. 

Operating profit for the segment increased 10%, and adjusted operating profit increased 7% behind higher price/mix and lower SG&A expenses.

Foodservice Segment
Net sales for the Foodservice segment decreased 3% to $260 million. Volume decreased 6% and price/mix increased 3%.

Operating profit for the segment was flat to the prior-year period, reflecting general stability in the business. 

Corporate Expenses
Corporate expenses decreased 31% from $152 million to $105 million, and adjusted corporate expenses decreased 23% to $53 million, reflecting planned benefits from the company's cost savings efforts.

Capital Allocation
In the third quarter, the company paid a quarterly dividend of $0.25 per share to shareholders of record at the close of business on October 31, 2016. During the third quarter, the Board of Directors of Conagra Brands also approved its first dividend since the completion of the spin-off of the Lamb Weston business at the quarterly rate of $0.20 per share.

The company repurchased approximately 11 million shares for $425 million during the quarter. In fiscal 2017 through the end of the third quarter, the company had repurchased approximately 15 million shares for $595 million.

During the third quarter, the company used approximately $504 million of cash to redeem senior debt.

Outlook
With three fiscal quarters complete, the company is updating its fiscal year 2017 outlook. Adjusted diluted EPS is expected to be at or slightly above the high-end of the $1.65 to $1.70 range. Net sales (excluding the impacts of divestitures and foreign exchange) are expected to be at or slightly below the low-end of the range of down 4% to 5%. Adjusted gross margin is expected to be within range of 30.4% to 30.6%. Adjusted operating margin is expected to be slightly above the range of 15.3% to 15.5%.

Source: Conagra Brands