CHICAGO, April 4,
2024 /PRNewswire/ -- Today Conagra Brands, Inc.
(NYSE: CAG) reported results for the third quarter of fiscal year
2024, which ended on February 25,
2024. All comparisons are against the prior-year fiscal
period, unless otherwise noted.
Third quarter Highlights
- Net sales decreased 1.7% from the prior year quarter; organic
net sales decreased 2.0%
- Operating margin was 15.5% representing a 33 basis point
decrease over the prior year quarter. Adjusted operating margin was
16.4% representing a 49 basis point decrease over the prior year
quarter.
- Diluted earnings per share (EPS) was $0.64, a 9.9% decrease over the prior year
quarter. Adjusted EPS was $0.69, a
9.2% decrease over the prior year quarter.
- The company is increasing fiscal 2024 adjusted operating margin
guidance and reaffirming organic net sales and adjusted EPS
guidance.
CEO Perspective
Sean
Connolly, president and chief executive officer of Conagra
Brands, commented, "Our Q3 results demonstrate steady progress
stemming from strong execution. Volume trends in our domestic
retail business continued to improve as targeted
investments, particularly in frozen, generated strong lifts
and unit share gains. Outstanding progress on our cost savings
initiatives allowed us to support strategic investments in our
brands while sustaining margin recovery. We also continued to
deliver substantial improvements in free cash flow enabling us to
meaningfully reduce our net leverage ratio over the first three
quarters of 2024. Our long-term focus remains on executing our
strategic priorities and generating value for our
shareholders."
Total Company Third Quarter Results
In the quarter,
net sales were $3.0 billion reflecting:
- a 0.3% increase from the favorable impact of foreign exchange;
and
- a 2.0% decrease in organic net sales.
The 2.0% decrease in organic net sales was driven by
a 0.2% negative impact from price/mix, largely driven by
the company's strategic investments in the quarter, and
a 1.8% decrease in volume, primarily due to continued
lower consumption trends.
Gross profit increased 2.4% to $859 million in the
quarter, and adjusted gross profit increased 0.1% to $870
million. Third quarter gross profit increased as higher
productivity more than offset the negative impacts of
lower organic net sales, cost of goods sold inflation, and
unfavorable operating leverage. Gross margin
increased 114 basis points to 28.3% in the quarter, and
adjusted gross margin increased 52 basis points to
28.7%.
Selling, general, and administrative expense (SG&A), which
includes advertising and promotional expense (A&P), increased
11.0% to $387 million in the quarter
driven primarily by higher incentive compensation compared to the
prior year quarter and a 6.5% increase in A&P. Adjusted
SG&A, which excludes A&P, increased 7.4% to $286 million primarily driven by higher incentive
compensation compared to the prior year quarter.
Net interest expense was $107 million in the quarter.
Compared to the prior-year period, net interest
expense increased 2.2% or $2 million, primarily due
to a higher weighted average interest rate on outstanding
debt.
The average diluted share count in the quarter was 480
million shares.
In the quarter, net income attributable to Conagra Brands
decreased 9.7% to $309 million, or $0.64 per
diluted share compared to $342 million, or $0.71 per
diluted share in the prior year quarter driven primarily by
the increase in A&P and SG&A, as previously discussed.
Adjusted net income attributable to Conagra Brands
decreased 10.1% to $329 million, or $0.69 per
diluted share.
Adjusted EBITDA, which includes equity method investment
earnings and pension and postretirement non-service expense
(income), decreased 5.3% to $634 million in the
quarter, primarily driven by the decrease in adjusted operating
profit.
Grocery & Snacks Segment Third Quarter
Results
Reported and organic net sales for the Grocery &
Snacks segment increased 3.4% to $1.3
billion in the quarter driven by a price/mix increase of
4.2%, partially offset by a volume decrease of 0.8%. The company
gained dollar share in snacking and staples categories including
chili, pudding, microwave popcorn, seeds, and canned meat due to
the wrap of the canned meat recall in the year ago
period.
Operating profit for the segment increased 16.7%
to $299 million in the quarter and adjusted operating
profit increased 16.5% to $300 million as higher
organic net sales, higher productivity, and lower
A&P more than offset the negative impacts of cost of
goods sold inflation, unfavorable operating leverage,
and higher SG&A. In addition, we received a
$7.4 million net benefit related to
insurance proceeds for prior year lost sales from our canned meat
recall.
Refrigerated & Frozen Segment Third Quarter
Results
Reported and organic net sales for the Refrigerated
& Frozen segment decreased 8.1% to $1.2
billion in the quarter as price mix decreased 4.8%,
primarily attributable to an increase in strategic investments, and
volume decreased 3.3%, primarily due to continued lower consumption
trends. The company gained dollar share in select categories such
as frozen sides, frozen single-serve meals, frozen breakfast, and
frozen seafood due to the wrap of the impacts from the plant fire
in the year ago period.
Operating profit for the segment
decreased 23.6% to $202 million in the quarter.
Adjusted operating profit decreased 25.2% to $203
million as higher productivity was more than offset by the negative
impacts of lower organic net sales, cost of goods sold
inflation, unfavorable operating leverage, and higher A&P
and SG&A.
International Segment Third Quarter Results
Net sales
for the International segment increased 4.6% to $272
million in the quarter reflecting:
- a 3.6% increase from the favorable impact of foreign exchange;
and
- a 1.0% increase in organic net sales.
On an organic net sales basis, price/mix decreased 1.7% and
volume increased 2.7% primarily driven by a strong performance in
the company's Mexico business.
Operating profit for the segment increased 13.9%
to $42 million in the quarter. Adjusted operating
profit increased 16.4% to $43 million as the
benefits from higher productivity and higher organic net
sales more than offset the negative impact of cost of
goods sold inflation, and higher SG&A and A&P.
Foodservice Segment Third Quarter Results
Reported and
organic net sales for the Foodservice segment decreased 1.0% to
$273 million in the quarter as volume
declines of 4.8% offset a price/mix increase of 3.8%.
Operating profit for the
segment increased 48.7% to $35
million. Adjusted operating profit increased 40.6%
to $35 million in the quarter as the benefits of higher
productivity, price/mix, and lower SG&A more than offset the
negative impacts of cost of goods sold
inflation and unfavorable operating leverage.
Other Third Quarter Items
Corporate
expenses increased 17.6% to $107 million in the
quarter and adjusted corporate expense increased 21.2%
to $82 million in the quarter driven primarily by higher
incentive compensation compared to the prior year quarter.
We incurred pension and post-retirement non-service expense of
$1.4 million in the quarter compared
to $6 million of income in the
prior-year quarter due primarily to higher interest costs and a
pension settlement loss.
In the quarter, equity method investment
earnings decreased 18.5% to $41 million as
results from the company's joint venture, Ardent Mills,
reflected slightly lower volume trends in the milling
industry.
In the quarter, the effective tax rate was 23.7% compared
to 22.6% in the prior-year quarter. The adjusted effective tax
rate was 23.8% compared to 22.8% in the
prior-year quarter.
In the quarter, the company paid a dividend of $0.35 per share.
Outlook
The company is increasing fiscal
2024 Adjusted Operating Margin guidance to approximately 15.8%
and updating fiscal 2024 guidance for the following:
- Net Leverage Ratio of approximately 3.44x
- Capital expenditures of approximately $425M
- Interest expense of approximately $435M
The company is reaffirming fiscal 2024 guidance for the
following:
- Organic net sales to decrease between 1.0% and 2.0% compared to
fiscal 2023
- Adjusted EPS is expected to be between $2.60 and $2.65
- Adjusted effective tax rate of approximately 24%
- No pension income
- Ardent Mills contribution of approximately $170M
The inability to predict the amount and timing of the impacts of
foreign exchange, acquisitions, divestitures, and other items
impacting comparability makes a detailed reconciliation of
forward-looking non-GAAP financial measures impracticable. Please
see the end of this release for more information.
Items Affecting Comparability of EPS
The following are
included in the $0.64 EPS for the
third quarter of fiscal 2024 (EPS amounts are rounded and after
tax). Please see the reconciliation schedules at the end of this
release for additional details.
- Approximately $0.01 per diluted
share of net expense related to corporate hedging derivative
losses
- Approximately $0.03 per diluted
share of net expense related to legacy legal matters
- Approximately $0.01 per diluted
share of net benefit related to rounding
The following are included in the $0.71 EPS for the third quarter of fiscal 2023
(EPS amounts are rounded and after tax). Please see the
reconciliation schedules at the end of this release for additional
details.
- Approximately $0.01 per diluted
share of net expense due to fire related costs
- Approximately $0.04 per diluted
share of net expense related to corporate hedging derivative
losses
Please note that certain prior year amounts have been
reclassified to conform with current year presentation.
Discussion of Results
Conagra Brands will issue
pre-recorded remarks prior to hosting a live
Q&A conference call and webcast at 9:30 a.m. Eastern time today. The live audio
webcast Q&A conference call, pre-recorded remarks, transcript
of the pre-recorded remarks, and presentation slides will be
available on www.conagrabrands.com/investor-relations under Events
& Presentations. The Q&A conference call may be accessed by
dialing 1-877-883-0383 for participants in the U.S. and
1-412-902-6506 for all other participants and using passcode
6964529. Please dial in 10 to 15 minutes prior to the call start
time. A replay of the Q&A conference call will be
available on www.conagrabrands.com/investor-relations under Events
& Presentations until April 4,
2025.
About Conagra Brands
Conagra Brands, Inc. (NYSE: CAG),
headquartered in Chicago, is one
of North America's leading branded
food companies. Guided by an entrepreneurial spirit, Conagra Brands
combines a rich heritage of making great food with a sharpened
focus on innovation. The company's portfolio is evolving to satisfy
people's changing food preferences. Conagra's iconic brands, such
as Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, Reddi-wip®, and Slim
Jim®, as well as emerging brands, including Angie's®
BOOMCHICKAPOP®, Duke's®, Earth Balance®, Gardein®, and Frontera®,
offer choices for every occasion. For more information, visit
www.conagrabrands.com.
Note on Forward-Looking Statements
This document
contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements are based
on management's current expectations and are subject to uncertainty
and changes in circumstances. Readers of this document should
understand that these statements are not guarantees of performance
or results. Many factors could affect our actual financial results
and cause them to vary materially from the expectations contained
in the forward-looking statements, including those set forth in
this document. These risks, uncertainties, and factors include,
among other things: risks associated with general economic and
industry conditions, including inflation, rising interest rates,
decreased availability of capital, volatility in financial markets,
declining consumer spending rates, recessions, decreased energy
availability, increased energy costs (including fuel surcharges),
supply chain challenges, labor shortages, and geopolitical
conflicts (including the ongoing conflict between Russia and Ukraine); negative impacts caused by public
health crises; risks related to our ability to deleverage on
currently anticipated timelines, and to continue to access capital
on acceptable terms or at all; risks related to the company's
competitive environment, cost structure, and related market
conditions; risks related to our ability to execute operating and
value creation plans and achieve returns on our investments and
targeted operating efficiencies from cost-saving initiatives, and
to benefit from trade optimization programs; risks related to the
availability and prices of commodities and other supply chain
resources, including raw materials, packaging, energy, and
transportation, including any negative effects caused by changes in
levels of inflation and interest rates, weather conditions, health
pandemics or outbreaks of disease, actual or threatened hostilities
or war, or other geopolitical uncertainty; risks related to the
effectiveness of our hedging activities and ability to respond to
volatility in commodities; disruptions or inefficiencies in our
supply chain and/or operations; risks related to the ultimate
impact of, including reputational harm caused by, any product
recalls and product liability or labeling litigation, including
litigation related to lead-based paint and pigment and cooking
spray; risks related to our ability to respond to changing consumer
preferences and the success of our innovation and marketing
investments; risks associated with actions by our customers,
including changes in distribution and purchasing terms; risks
related to the seasonality of our business; risks associated with
our co-manufacturing arrangements and other third-party service
provider dependencies; risks associated with actions of governments
and regulatory bodies that affect our businesses, including the
ultimate impact of new or revised regulations or interpretations
including to address climate change or implement changes to taxes
and tariffs; risks related to the company's ability to execute on
its strategies or achieve expectations related to environmental,
social, and governance matters, including as a result of evolving
legal, regulatory, and other standards, processes, and assumptions,
the pace of scientific and technological developments, increased
costs, the availability of requisite financing, and changes in
carbon pricing or carbon taxes; risks related to a material failure
in or breach of our or our vendors' information technology systems
and other cybersecurity incidents; risks related to our ability to
identify, attract, hire, train, retain and develop qualified
personnel; risk of increased pension, labor or people-related
expenses; risks and uncertainties associated with intangible
assets, including any future goodwill or intangible assets
impairment charges; risk relating to our ability to protect our
intellectual property rights; risks relating to acquisition,
divestiture, joint venture or investment activities; the amount and
timing of future dividends, which remain subject to Board approval
and depend on market and other conditions; and other risks
described in our reports filed from time to time with the
Securities and Exchange Commission.
We caution readers not to place undue reliance on any
forward-looking statements included in this document, which speak
only as of the date of this document. We undertake no
responsibility to update these statements, except as required by
law.
Note on Non-GAAP Financial Measures
This document
includes certain non-GAAP financial measures, including adjusted
EPS, organic net sales, adjusted gross profit, adjusted operating
profit, adjusted SG&A, adjusted corporate expenses, adjusted
gross margin, adjusted operating margin, adjusted effective tax
rate, adjusted net income attributable to Conagra Brands, free cash
flow, net debt, net leverage ratio, and adjusted EBITDA. Management
considers GAAP financial measures as well as such non-GAAP
financial information in its evaluation of the company's financial
statements and believes these non-GAAP financial measures provide
useful supplemental information to assess the company's operating
performance and financial position. These measures should be viewed
in addition to, and not in lieu of, the company's diluted earnings
per share, operating performance and financial measures as
calculated in accordance with GAAP.
Organic net sales excludes, from reported net sales, the impacts
of foreign exchange, divested businesses and acquisitions, as well
as the impact of any 53rd week. All references to
changes in volume and price/mix throughout this release are on an
organic net sales basis.
References to adjusted items throughout this release refer to
measures computed in accordance with GAAP less the impact of items
impacting comparability. Items impacting comparability are income
or expenses (and related tax impacts) that management believes have
had, or are likely to have, a significant impact on the earnings of
the applicable business segment or on the total corporation for the
period in which the item is recognized, and are not indicative of
the company's core operating results. These items thus affect the
comparability of underlying results from period to period.
References to earnings before interest, taxes, depreciation, and
amortization (EBITDA) refer to net income attributable to Conagra
Brands before the impacts of discontinued operations, income tax
expense (benefit), interest expense, depreciation, and
amortization. References to adjusted EBITDA refer to EBITDA before
the impacts of items impacting comparability.
Hedge gains and losses are generally aggregated, and net amounts
are reclassified from unallocated corporate expense to the
operating segments when the underlying commodity or foreign
currency being hedged is expensed in segment cost of goods sold.
The net change in the derivative gains (losses) included in
unallocated corporate expense during the period is reflected as a
comparability item, Corporate hedging derivate gains (losses).
Note on Forward-Looking Non-GAAP Financial
Measures
Our fiscal 2024 guidance includes certain non-GAAP
financial measures (organic net sales growth, adjusted operating
margin, adjusted EPS, net leverage ratio, and adjusted effective
tax rate) that are presented on a forward-looking basis.
Historically, the company has calculated these non-GAAP financial
measures excluding the impact of certain items such as, but not
limited to, foreign exchange, acquisitions, divestitures,
restructuring expenses, the extinguishment of debt, hedging gains
and losses, impairment charges, legacy legal contingencies, and
unusual tax items. Reconciliations of these forward-looking
non-GAAP financial measures to the most directly comparable GAAP
financial measures are not provided because the company is unable
to provide such reconciliations without unreasonable effort, due to
the uncertainty and inherent difficulty of predicting the timing
and financial impact of such items. For the same reasons, the
company is unable to address the probable significance of the
unavailable information, which could be material to future
results.
Conagra Brands,
Inc.
Consolidated Statements
of Earnings
(in
millions)
(unaudited)
|
|
|
|
THIRD
QUARTER
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Thirteen Weeks
Ended
|
|
|
|
|
|
|
|
February 25,
2024
|
|
|
February 26,
2023
|
|
|
Percent
Change
|
|
Net sales
|
|
$
|
3,032.9
|
|
|
$
|
3,086.5
|
|
|
|
(1.7)
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
2,174.1
|
|
|
|
2,247.7
|
|
|
|
(3.3)
|
%
|
Selling, general and
administrative expenses
|
|
|
387.4
|
|
|
|
348.8
|
|
|
|
11.0
|
%
|
Pension and
postretirement non-service expense (income)
|
|
|
1.4
|
|
|
|
(6.0)
|
|
|
|
N/A
|
|
Interest expense,
net
|
|
|
106.5
|
|
|
|
104.2
|
|
|
|
2.2
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
363.5
|
|
|
|
391.8
|
|
|
|
(7.2)
|
%
|
Income tax
expense
|
|
|
95.9
|
|
|
|
100.1
|
|
|
|
(4.2)
|
%
|
Equity method
investment earnings
|
|
|
41.2
|
|
|
|
50.5
|
|
|
|
(18.5)
|
%
|
Net income
|
|
$
|
308.8
|
|
|
$
|
342.2
|
|
|
|
(9.8)
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
(70.9)
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
308.6
|
|
|
$
|
341.7
|
|
|
|
(9.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.64
|
|
|
$
|
0.72
|
|
|
|
(11.1)
|
%
|
Basic weighted average
shares outstanding
|
|
|
478.8
|
|
|
|
477.5
|
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.64
|
|
|
$
|
0.71
|
|
|
|
(9.9)
|
%
|
Diluted weighted
average shares outstanding
|
|
|
480.0
|
|
|
|
479.4
|
|
|
|
0.2
|
%
|
Conagra Brands,
Inc.
Consolidated Statements
of Earnings
(in
millions)
(unaudited)
|
|
|
|
THIRD QUARTER YEAR TO
DATE
|
|
|
|
Thirty-Nine
Weeks Ended
|
|
|
Thirty-Nine
Weeks Ended
|
|
|
|
|
|
|
|
February 25,
2024
|
|
|
February 26,
2023
|
|
|
Percent
Change
|
|
Net sales
|
|
$
|
9,145.0
|
|
|
$
|
9,303.7
|
|
|
|
(1.7)
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
6,616.5
|
|
|
|
6,822.3
|
|
|
|
(3.0)
|
%
|
Selling, general and
administrative expenses
|
|
|
1,119.6
|
|
|
|
1,463.1
|
|
|
|
(23.5)
|
%
|
Pension and
postretirement non-service income
|
|
|
2.1
|
|
|
|
(18.2)
|
|
|
|
N/A
|
|
Interest expense,
net
|
|
|
325.8
|
|
|
|
301.6
|
|
|
|
8.0
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
1,081.0
|
|
|
|
734.9
|
|
|
|
47.1
|
%
|
Income tax
expense
|
|
|
297.1
|
|
|
|
237.0
|
|
|
|
25.4
|
%
|
Equity method
investment earnings
|
|
|
131.0
|
|
|
|
149.0
|
|
|
|
(12.1)
|
%
|
Net income
|
|
$
|
914.9
|
|
|
$
|
646.9
|
|
|
|
41.4
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
0.4
|
|
|
|
0.8
|
|
|
|
(48.1)
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
914.5
|
|
|
$
|
646.1
|
|
|
|
41.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.91
|
|
|
$
|
1.35
|
|
|
|
41.5
|
%
|
Basic weighted average
shares outstanding
|
|
|
478.5
|
|
|
|
479.3
|
|
|
|
(0.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.91
|
|
|
$
|
1.34
|
|
|
|
42.5
|
%
|
Diluted weighted
average shares outstanding
|
|
|
479.9
|
|
|
|
481.0
|
|
|
|
(0.2)
|
%
|
Conagra Brands,
Inc.
Consolidated Balance
Sheets
(in
millions)
(unaudited)
|
|
|
|
February 25,
2024
|
|
|
May 28,
2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
78.5
|
|
|
$
|
93.3
|
|
Receivables, less
allowance for doubtful accounts of $2.8 and $2.7
|
|
|
916.5
|
|
|
|
952.8
|
|
Inventories
|
|
|
2,143.4
|
|
|
|
2,212.2
|
|
Prepaid expenses and
other current assets
|
|
|
117.2
|
|
|
|
92.4
|
|
Current assets held
for sale
|
|
|
30.2
|
|
|
|
34.3
|
|
Total current
assets
|
|
|
3,285.8
|
|
|
|
3,385.0
|
|
Property, plant and
equipment, net
|
|
|
2,876.7
|
|
|
|
2,736.4
|
|
Goodwill
|
|
|
11,109.9
|
|
|
|
11,109.4
|
|
Brands, trademarks and
other intangibles, net
|
|
|
3,152.1
|
|
|
|
3,192.3
|
|
Other assets
|
|
|
1,404.8
|
|
|
|
1,506.2
|
|
Noncurrent assets held
for sale
|
|
|
90.6
|
|
|
|
123.3
|
|
|
|
$
|
21,919.9
|
|
|
$
|
22,052.6
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
166.3
|
|
|
$
|
636.3
|
|
Current installments
of long-term debt
|
|
|
1,019.2
|
|
|
|
1,516.0
|
|
Accounts and other
payables
|
|
|
1,418.0
|
|
|
|
1,525.5
|
|
Accrued
payroll
|
|
|
168.3
|
|
|
|
163.5
|
|
Other accrued
liabilities
|
|
|
686.2
|
|
|
|
583.3
|
|
Current liabilities
held for sale
|
|
|
12.9
|
|
|
|
16.1
|
|
Total current
liabilities
|
|
|
3,470.9
|
|
|
|
4,440.7
|
|
Senior long-term debt,
excluding current installments
|
|
|
7,491.8
|
|
|
|
7,081.3
|
|
Other noncurrent
liabilities
|
|
|
1,729.4
|
|
|
|
1,718.0
|
|
Noncurrent liabilities
held for sale
|
|
|
2.3
|
|
|
|
5.3
|
|
Total stockholders'
equity
|
|
|
9,225.5
|
|
|
|
8,807.3
|
|
|
|
$
|
21,919.9
|
|
|
$
|
22,052.6
|
|
Conagra Brands, Inc.
and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(in
millions)
|
|
(unaudited)
|
|
Thirty-Nine
Weeks Ended
|
|
|
Thirty-Nine
Weeks Ended
|
|
|
|
February 25,
2024
|
|
|
February 26,
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
914.9
|
|
|
$
|
646.9
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
291.7
|
|
|
|
277.0
|
|
Asset impairment
charges
|
|
|
50.9
|
|
|
|
417.7
|
|
Equity method
investment earnings less than (in excess) of
distributions
|
|
|
69.5
|
|
|
|
(69.8)
|
|
Stock-settled
share-based payments expense
|
|
|
18.7
|
|
|
|
68.8
|
|
Contributions to
pension plans
|
|
|
(9.2)
|
|
|
|
(9.6)
|
|
Pension expense
(benefit)
|
|
|
9.3
|
|
|
|
(10.4)
|
|
Other items
|
|
|
13.9
|
|
|
|
(0.9)
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
25.5
|
|
|
|
(96.7)
|
|
Inventories
|
|
|
73.3
|
|
|
|
(340.4)
|
|
Deferred income taxes
and income taxes payable, net
|
|
|
43.1
|
|
|
|
(58.8)
|
|
Prepaid expenses and
other current assets
|
|
|
(31.3)
|
|
|
|
2.4
|
|
Accounts and other
payables
|
|
|
(36.5)
|
|
|
|
(157.9)
|
|
Accrued
payroll
|
|
|
4.6
|
|
|
|
7.4
|
|
Other accrued
liabilities
|
|
|
76.2
|
|
|
|
71.8
|
|
Litigation
accruals
|
|
|
16.7
|
|
|
|
(18.6)
|
|
Deferred employer
payroll taxes
|
|
|
—
|
|
|
|
(25.5)
|
|
Net cash flows from
operating activities
|
|
|
1,531.3
|
|
|
|
703.4
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(309.6)
|
|
|
|
(267.4)
|
|
Sale of property,
plant and equipment
|
|
|
0.6
|
|
|
|
3.1
|
|
Purchase of marketable
securities
|
|
|
(8.2)
|
|
|
|
(3.4)
|
|
Sale of marketable
securities
|
|
|
8.2
|
|
|
|
3.4
|
|
Proceeds from
insurance recoveries
|
|
|
11.9
|
|
|
|
—
|
|
Other items
|
|
|
1.5
|
|
|
|
4.1
|
|
Net cash flows from
investing activities
|
|
|
(295.6)
|
|
|
|
(260.2)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Issuances of
short-term borrowings, maturities greater than 90 days
|
|
|
134.5
|
|
|
|
239.5
|
|
Repayment of
short-term borrowings, maturities greater than 90 days
|
|
|
(146.6)
|
|
|
|
(259.8)
|
|
Net (repayment)
issuance of other short-term borrowings, maturities less than or
equal to
90 days
|
|
|
(461.7)
|
|
|
|
388.2
|
|
Issuance of long-term
debt
|
|
|
500.0
|
|
|
|
500.0
|
|
Repayment of long-term
debt
|
|
|
(766.8)
|
|
|
|
(708.0)
|
|
Debt issuance
costs
|
|
|
(3.3)
|
|
|
|
(4.1)
|
|
Repurchase of Conagra
Brands, Inc. common shares
|
|
|
—
|
|
|
|
(150.0)
|
|
Cash dividends
paid
|
|
|
(492.0)
|
|
|
|
(466.4)
|
|
Exercise of stock
options and issuance of other stock awards, including tax
withholdings
|
|
|
(13.8)
|
|
|
|
0.9
|
|
Other items
|
|
|
(0.6)
|
|
|
|
5.2
|
|
Net cash flows from
financing activities
|
|
|
(1,250.3)
|
|
|
|
(454.5)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
—
|
|
|
|
(0.8)
|
|
Net change in cash and
cash equivalents, including cash balances classified as assets held
for
sale
|
|
|
(14.6)
|
|
|
|
(12.1)
|
|
Less: Net change in
cash balances classified as assets held for sale
|
|
|
0.2
|
|
|
|
—
|
|
Net change in cash and
cash equivalents
|
|
|
(14.8)
|
|
|
|
(12.1)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
93.3
|
|
|
|
82.2
|
|
Cash and cash
equivalents at end of period
|
|
$
|
78.5
|
|
|
$
|
70.1
|
|
Conagra Brands,
Inc.
Reconciliation of Q3
FY24 QTD and YTD Organic Net Sales by Segment - YOY
Change
(in
millions)
|
|
Q3
FY24
|
|
Grocery
& Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,286.0
|
|
|
$
|
1,202.4
|
|
|
$
|
271.7
|
|
|
$
|
272.8
|
|
|
$
|
3,032.9
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.4)
|
|
|
|
—
|
|
|
|
(9.4)
|
|
Organic Net
Sales
|
|
$
|
1,286.0
|
|
|
$
|
1,202.4
|
|
|
$
|
262.3
|
|
|
$
|
272.8
|
|
|
$
|
3,023.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
3.4
|
%
|
|
|
(8.1)
|
%
|
|
|
4.6
|
%
|
|
|
(1.0)
|
%
|
|
|
(1.7)
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.6)
|
|
|
|
—
|
|
|
|
(0.3)
|
|
Organic Net
Sales
|
|
|
3.4
|
%
|
|
|
(8.1)
|
%
|
|
|
1.0
|
%
|
|
|
(1.0)
|
%
|
|
|
(2.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
(0.8)
|
%
|
|
|
(3.3)
|
%
|
|
|
2.7
|
%
|
|
|
(4.8)
|
%
|
|
|
(1.8)
|
%
|
Price/Mix
|
|
|
4.2
|
%
|
|
|
(4.8)
|
%
|
|
|
(1.7)
|
%
|
|
|
3.8
|
%
|
|
|
(0.2)
|
%
|
Q3
FY23
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,243.7
|
|
|
$
|
1,307.7
|
|
|
$
|
259.7
|
|
|
$
|
275.4
|
|
|
$
|
3,086.5
|
|
Net sales from divested
businesses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Organic Net
Sales
|
|
$
|
1,243.7
|
|
|
$
|
1,307.7
|
|
|
$
|
259.7
|
|
|
$
|
275.4
|
|
|
$
|
3,086.5
|
|
Q3 FY24
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra
Brands
|
|
Net
Sales
|
|
$
|
3,784.0
|
|
|
$
|
3,692.5
|
|
|
$
|
811.5
|
|
|
$
|
857.0
|
|
|
$
|
9,145.0
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
(23.3)
|
|
|
|
—
|
|
|
|
(23.3)
|
|
Organic Net
Sales
|
|
$
|
3,784.0
|
|
|
$
|
3,692.5
|
|
|
$
|
788.2
|
|
|
$
|
857.0
|
|
|
$
|
9,121.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
0.1
|
%
|
|
|
(6.2)
|
%
|
|
|
7.9
|
%
|
|
|
2.9
|
%
|
|
|
(1.7)
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.1)
|
|
|
|
—
|
|
|
|
(0.3)
|
|
Organic Net
Sales
|
|
|
0.1
|
%
|
|
|
(6.2)
|
%
|
|
|
4.8
|
%
|
|
|
2.9
|
%
|
|
|
(2.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
(3.0)
|
%
|
|
|
(5.6)
|
%
|
|
|
2.1
|
%
|
|
|
(4.1)
|
%
|
|
|
(3.7)
|
%
|
Price/Mix
|
|
|
3.1
|
%
|
|
|
(0.6)
|
%
|
|
|
2.7
|
%
|
|
|
7.0
|
%
|
|
|
1.7
|
%
|
Q3 FY23
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
3,781.9
|
|
|
$
|
3,936.8
|
|
|
$
|
751.9
|
|
|
$
|
833.1
|
|
|
$
|
9,303.7
|
|
Net sales from divested
businesses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Organic Net
Sales
|
|
$
|
3,781.9
|
|
|
$
|
3,936.8
|
|
|
$
|
751.9
|
|
|
$
|
833.1
|
|
|
$
|
9,303.7
|
|
Conagra Brands,
Inc.
Reconciliation of Q3
FY24 Adj. Operating Profit by Segment - YOY Change
(in
millions)
|
|
Q3
FY24
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total Conagra
Brands
|
|
Operating
Profit
|
|
$
|
299.3
|
|
|
$
|
201.5
|
|
|
$
|
42.2
|
|
|
$
|
35.4
|
|
|
$
|
(107.0)
|
|
|
$
|
471.4
|
|
Restructuring
plans
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
1.1
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
1.7
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17.9
|
|
|
|
17.9
|
|
Fire related
costs
|
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.6
|
|
Corporate hedging
derivative losses
(gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.8
|
|
|
|
6.8
|
|
Adjusted Operating
Profit
|
|
$
|
299.5
|
|
|
$
|
202.6
|
|
|
$
|
43.3
|
|
|
$
|
35.4
|
|
|
$
|
(82.4)
|
|
|
$
|
498.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
23.3
|
%
|
|
|
16.8
|
%
|
|
|
15.6
|
%
|
|
|
13.0
|
%
|
|
|
|
|
|
|
15.5
|
%
|
Adjusted Operating
Profit Margin
|
|
|
23.3
|
%
|
|
|
16.9
|
%
|
|
|
15.9
|
%
|
|
|
13.0
|
%
|
|
|
|
|
|
|
16.4
|
%
|
Year-over-year % change
- Operating
Profit
|
|
|
16.7
|
%
|
|
|
(23.6)
|
%
|
|
|
13.9
|
%
|
|
|
48.7
|
%
|
|
|
17.6
|
%
|
|
|
(3.8)
|
%
|
Year-over year % change
- Adjusted
Operating Profit
|
|
|
16.5
|
%
|
|
|
(25.2)
|
%
|
|
|
16.4
|
%
|
|
|
40.6
|
%
|
|
|
21.2
|
%
|
|
|
(4.6)
|
%
|
Year-over-year bps
change - Operating
Profit
|
|
265 bps
|
|
|
(340) bps
|
|
|
126 bps
|
|
|
434 bps
|
|
|
|
|
|
|
(33) bps
|
|
Year-over-year bps
change - Adjusted
Operating Profit
|
|
261 bps
|
|
|
(385) bps
|
|
|
161 bps
|
|
|
383 bps
|
|
|
|
|
|
|
(49) bps
|
|
Q3
FY23
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
256.4
|
|
|
$
|
263.6
|
|
|
$
|
37.1
|
|
|
$
|
23.8
|
|
|
$
|
(90.9)
|
|
|
$
|
490.0
|
|
Restructuring
plans
|
|
|
0.3
|
|
|
|
1.9
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
2.5
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
Fire related
costs
|
|
|
—
|
|
|
|
5.2
|
|
|
|
—
|
|
|
|
1.4
|
|
|
|
—
|
|
|
|
6.6
|
|
Municipal water break
costs
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.3
|
|
Corporate hedging
derivative losses
(gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22.7
|
|
|
|
22.7
|
|
Adjusted Operating
Profit
|
|
$
|
257.0
|
|
|
$
|
270.7
|
|
|
$
|
37.2
|
|
|
$
|
25.2
|
|
|
$
|
(67.8)
|
|
|
$
|
522.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
20.6
|
%
|
|
|
20.2
|
%
|
|
|
14.3
|
%
|
|
|
8.6
|
%
|
|
|
|
|
|
|
15.9
|
%
|
Adjusted Operating
Profit Margin
|
|
|
20.7
|
%
|
|
|
20.7
|
%
|
|
|
14.3
|
%
|
|
|
9.1
|
%
|
|
|
|
|
|
|
16.9
|
%
|
Conagra Brands,
Inc.
Reconciliation of Q3
FY24 YTD Adj. Operating Profit by Segment - YOY Change
(in
millions)
|
|
Q3 FY24
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
837.2
|
|
|
$
|
620.9
|
|
|
$
|
71.8
|
|
|
$
|
117.5
|
|
|
$
|
(238.5)
|
|
|
$
|
1,408.9
|
|
Restructuring
plans
|
|
|
7.7
|
|
|
|
1.6
|
|
|
|
20.2
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
29.6
|
|
Impairment of business
held for sale
|
|
|
—
|
|
|
|
—
|
|
|
|
34.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34.2
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31.9
|
|
|
|
31.9
|
|
Fire related costs
(benefit)
|
|
|
—
|
|
|
|
3.7
|
|
|
|
—
|
|
|
|
(5.9)
|
|
|
|
—
|
|
|
|
(2.2)
|
|
Corporate hedging
derivative losses
(gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(9.6)
|
|
|
|
(9.6)
|
|
Adjusted Operating
Profit
|
|
$
|
844.9
|
|
|
$
|
626.2
|
|
|
$
|
126.2
|
|
|
$
|
111.6
|
|
|
$
|
(215.9)
|
|
|
$
|
1,493.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
22.1
|
%
|
|
|
16.8
|
%
|
|
|
8.9
|
%
|
|
|
13.7
|
%
|
|
|
|
|
|
|
15.4
|
%
|
Adjusted Operating
Profit Margin
|
|
|
22.3
|
%
|
|
|
17.0
|
%
|
|
|
15.6
|
%
|
|
|
13.0
|
%
|
|
|
|
|
|
|
16.3
|
%
|
Year-over-year % change
- Operating
Profit
|
|
|
(1.2)
|
%
|
|
|
108.6
|
%
|
|
|
(28.8)
|
%
|
|
|
119.6
|
%
|
|
|
(15.1)
|
%
|
|
|
38.4
|
%
|
Year-over year % change
- Adjusted
Operating Profit
|
|
|
(0.8)
|
%
|
|
|
(11.2)
|
%
|
|
|
25.2
|
%
|
|
|
48.0
|
%
|
|
|
(13.7)
|
%
|
|
|
0.7
|
%
|
Year-over-year bps
change - Operating
Profit
|
|
(28) bps
|
|
|
|
926 bps
|
|
|
(457) bps
|
|
|
729 bps
|
|
|
|
|
|
|
|
446 bps
|
|
Year-over-year bps
change - Adjusted
Operating Profit
|
|
(19) bps
|
|
|
(96) bps
|
|
|
214 bps
|
|
|
397 bps
|
|
|
|
|
|
|
38 bps
|
|
Q3 FY23
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
847.2
|
|
|
$
|
297.6
|
|
|
$
|
100.9
|
|
|
$
|
53.5
|
|
|
$
|
(280.9)
|
|
|
$
|
1,018.3
|
|
Restructuring
plans
|
|
|
0.5
|
|
|
|
3.3
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
5.5
|
|
|
|
9.2
|
|
Impairment of
businesses held for sale
|
|
|
0.5
|
|
|
|
5.7
|
|
|
|
—
|
|
|
|
20.5
|
|
|
|
—
|
|
|
|
26.7
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.8
|
|
|
|
0.8
|
|
Goodwill and brand
impairment charges
|
|
|
—
|
|
|
|
385.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
385.7
|
|
Fire related
costs
|
|
|
—
|
|
|
|
13.1
|
|
|
|
—
|
|
|
|
1.4
|
|
|
|
—
|
|
|
|
14.5
|
|
Municipal water break
costs
|
|
|
3.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.5
|
|
Corporate hedging
derivative losses
(gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24.6
|
|
|
|
24.6
|
|
Adjusted Operating
Profit
|
|
$
|
851.7
|
|
|
$
|
705.4
|
|
|
$
|
100.8
|
|
|
$
|
75.4
|
|
|
$
|
(250.0)
|
|
|
$
|
1,483.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
22.4
|
%
|
|
|
7.6
|
%
|
|
|
13.4
|
%
|
|
|
6.4
|
%
|
|
|
|
|
|
|
10.9
|
%
|
Adjusted Operating
Profit Margin
|
|
|
22.5
|
%
|
|
|
17.9
|
%
|
|
|
13.4
|
%
|
|
|
9.1
|
%
|
|
|
|
|
|
|
15.9
|
%
|
Conagra Brands,
Inc.
Reconciliation of Q3
FY24 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net
Income, and Adj. EPS - YOY Change
(in
millions)
|
|
Q3
FY24
|
|
Gross
profit
|
|
|
Selling,
general and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income
before
income
taxes and
equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable
to Conagra
Brands,
Inc.
|
|
|
Diluted EPS
from
income
attributable
to Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
858.8
|
|
|
$
|
387.4
|
|
|
$
|
471.4
|
|
|
$
|
363.5
|
|
|
$
|
95.9
|
|
|
|
23.7
|
%
|
|
$
|
308.6
|
|
|
$
|
0.64
|
|
% of Net
Sales
|
|
|
28.3
|
%
|
|
|
12.8
|
%
|
|
|
15.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
1.1
|
|
|
|
0.6
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
0.5
|
|
|
|
|
|
|
|
1.2
|
|
|
|
—
|
|
Corporate hedging
derivative
losses (gains)
|
|
|
6.8
|
|
|
|
—
|
|
|
|
6.8
|
|
|
|
6.8
|
|
|
|
1.7
|
|
|
|
|
|
|
|
5.1
|
|
|
|
0.01
|
|
Advertising and
promotion
expenses 2
|
|
|
—
|
|
|
|
85.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related cost
(benefit)
|
|
|
2.8
|
|
|
|
(2.2)
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.4
|
|
|
|
—
|
|
Legal
matters
|
|
|
—
|
|
|
|
17.9
|
|
|
|
17.9
|
|
|
|
17.9
|
|
|
|
4.3
|
|
|
|
|
|
|
|
13.6
|
|
|
|
0.03
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
869.5
|
|
|
$
|
285.5
|
|
|
$
|
498.4
|
|
|
$
|
390.5
|
|
|
$
|
102.6
|
|
|
|
23.8
|
%
|
|
$
|
328.9
|
|
|
$
|
0.69
|
|
% of Net
Sales
|
|
|
28.7
|
%
|
|
|
9.4
|
%
|
|
|
16.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales
change - reported
|
|
|
114
bps
|
|
|
|
147
bps
|
|
|
|
(33)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales
change - adjusted
|
|
|
52
bps
|
|
|
|
80
bps
|
|
|
|
(49)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change
-
reported
|
|
|
2.4
|
%
|
|
|
11.0
|
%
|
|
|
(3.8)
|
%
|
|
|
(7.2)
|
%
|
|
|
(4.2)
|
%
|
|
|
|
|
|
|
(9.7)
|
%
|
|
|
(9.9)
|
%
|
Year-over-year
change -
adjusted
|
|
|
0.1
|
%
|
|
|
7.4
|
%
|
|
|
(4.6)
|
%
|
|
|
(7.9)
|
%
|
|
|
(5.1)
|
%
|
|
|
|
|
|
|
(10.1)
|
%
|
|
|
(9.2)
|
%
|
Q3
FY23
|
|
Gross
profit
|
|
|
Selling,
general and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income
before
income
taxes and
equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable
to Conagra
Brands,
Inc.
|
|
|
Diluted EPS
from
income
attributable
to Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
838.8
|
|
|
$
|
348.8
|
|
|
$
|
490.0
|
|
|
$
|
391.8
|
|
|
$
|
100.1
|
|
|
|
22.6
|
%
|
|
$
|
341.7
|
|
|
$
|
0.71
|
|
% of Net
Sales
|
|
|
27.2
|
%
|
|
|
11.3
|
%
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
0.5
|
|
|
|
2.0
|
|
|
|
2.5
|
|
|
|
2.5
|
|
|
|
0.6
|
|
|
|
|
|
|
|
1.9
|
|
|
|
—
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
|
|
|
|
0.1
|
|
|
|
—
|
|
Corporate hedging
derivative
losses (gains)
|
|
|
22.7
|
|
|
|
—
|
|
|
|
22.7
|
|
|
|
22.7
|
|
|
|
5.6
|
|
|
|
|
|
|
|
17.1
|
|
|
|
0.04
|
|
Advertising and
promotion
expenses 2
|
|
|
—
|
|
|
|
80.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related
costs
|
|
|
6.4
|
|
|
|
0.2
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
1.7
|
|
|
|
|
|
|
|
4.9
|
|
|
|
0.01
|
|
Municipal water break
costs
|
|
|
0.3
|
|
|
|
—
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
|
|
|
|
0.3
|
|
|
|
—
|
|
Adjusted
|
|
$
|
868.7
|
|
|
$
|
265.9
|
|
|
$
|
522.3
|
|
|
$
|
424.1
|
|
|
$
|
108.1
|
|
|
|
22.8
|
%
|
|
$
|
366.0
|
|
|
$
|
0.76
|
|
% of Net
Sales
|
|
|
28.1
|
%
|
|
|
8.6
|
%
|
|
|
16.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Operating
profit is derived from taking Income from continuing operations
before income taxes and equity method investment earnings, adding
back Interest expense, net and removing Pension and postretirement
non-service (income) expense.
|
2 Advertising and promotion expense
(A&P) has been removed from adjusted selling, general and
administrative expense because this metric is used in reporting to
management, and management believes this adjusted measure provides
useful supplemental information to assess the company's operating
performance. Please note that A&P is not removed from
adjusted profit measures.
|
Conagra Brands,
Inc.
Reconciliation of Q3
FY24 YTD Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj.
Net Income, and Adj. EPS - YOY Change
(in
millions)
|
|
Q3 FY24
YTD
|
|
Gross
profit
|
|
|
Selling,
general and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income
before
income
taxes and
equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable
to Conagra
Brands,
Inc.
|
|
|
Diluted EPS
from
income
attributable
to Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
2,528.5
|
|
|
$
|
1,119.6
|
|
|
$
|
1,408.9
|
|
|
$
|
1,081.0
|
|
|
$
|
297.1
|
|
|
|
24.5
|
%
|
|
$
|
914.5
|
|
|
$
|
1.91
|
|
% of Net
Sales
|
|
|
27.6
|
%
|
|
|
12.2
|
%
|
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
8.2
|
|
|
|
21.4
|
|
|
|
29.6
|
|
|
|
29.6
|
|
|
|
7.6
|
|
|
|
|
|
|
|
22.0
|
|
|
|
0.05
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
|
|
|
|
0.2
|
|
|
|
—
|
|
Corporate hedging
derivative
losses (gains)
|
|
|
(9.6)
|
|
|
|
—
|
|
|
|
(9.6)
|
|
|
|
(9.6)
|
|
|
|
(2.5)
|
|
|
|
|
|
|
|
(7.1)
|
|
|
|
(0.01)
|
|
Advertising and
promotion
expenses 2
|
|
|
—
|
|
|
|
216.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related costs
(benefit)
|
|
|
5.9
|
|
|
|
(8.1)
|
|
|
|
(2.2)
|
|
|
|
(2.2)
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
(1.7)
|
|
|
|
—
|
|
Impairment of business
held
for sale
|
|
|
—
|
|
|
|
34.2
|
|
|
|
34.2
|
|
|
|
34.2
|
|
|
|
(0.1)
|
|
|
|
|
|
|
|
34.3
|
|
|
|
0.07
|
|
Legal
matters
|
|
|
—
|
|
|
|
31.9
|
|
|
|
31.9
|
|
|
|
31.9
|
|
|
|
7.9
|
|
|
|
|
|
|
|
24.0
|
|
|
|
0.05
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Adjusted
|
|
$
|
2,533.0
|
|
|
$
|
823.2
|
|
|
$
|
1,493.0
|
|
|
$
|
1,165.1
|
|
|
$
|
309.5
|
|
|
|
23.9
|
%
|
|
$
|
986.2
|
|
|
$
|
2.06
|
|
% of Net
Sales
|
|
|
27.7
|
%
|
|
|
9.0
|
%
|
|
|
16.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales
change - reported
|
|
98
bps
|
|
|
(348)
bps
|
|
|
|
446
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales
change - adjusted
|
|
57
bps
|
|
|
19
bps
|
|
|
38
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change
-
reported
|
|
|
1.9
|
%
|
|
|
(23.5)
|
%
|
|
|
38.4
|
%
|
|
|
47.1
|
%
|
|
|
25.4
|
%
|
|
|
|
|
|
|
41.5
|
%
|
|
|
42.5
|
%
|
Year-over-year
change -
adjusted
|
|
|
0.4
|
%
|
|
|
0.4
|
%
|
|
|
0.7
|
%
|
|
|
(2.9)
|
%
|
|
|
(1.9)
|
%
|
|
|
|
|
|
|
(4.5)
|
%
|
|
|
(4.2)
|
%
|
Q3 FY23
YTD
|
|
Gross
profit
|
|
|
Selling,
general and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income
before
income
taxes and
equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable
to Conagra
Brands,
Inc.
|
|
|
Diluted EPS
from
income
attributable
to Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
2,481.4
|
|
|
$
|
1,463.1
|
|
|
$
|
1,018.3
|
|
|
$
|
734.9
|
|
|
$
|
237.0
|
|
|
|
26.8
|
%
|
|
$
|
646.1
|
|
|
$
|
1.34
|
|
% of Net
Sales
|
|
|
26.7
|
%
|
|
|
15.7
|
%
|
|
|
10.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
0.8
|
|
|
|
8.4
|
|
|
|
9.2
|
|
|
|
9.2
|
|
|
|
2.3
|
|
|
|
|
|
|
|
6.9
|
|
|
|
0.01
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.8
|
|
|
|
0.8
|
|
|
|
0.8
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.6
|
|
|
|
—
|
|
Corporate hedging
derivative
losses (gains)
|
|
|
24.6
|
|
|
|
—
|
|
|
|
24.6
|
|
|
|
24.6
|
|
|
|
6.1
|
|
|
|
|
|
|
|
18.5
|
|
|
|
0.04
|
|
Advertising and
promotion
expenses 2
|
|
|
—
|
|
|
|
221.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related
costs
|
|
|
13.8
|
|
|
|
0.7
|
|
|
|
14.5
|
|
|
|
14.5
|
|
|
|
3.6
|
|
|
|
|
|
|
|
10.9
|
|
|
|
0.02
|
|
Municipal water break
costs
|
|
|
3.5
|
|
|
|
—
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
0.8
|
|
|
|
|
|
|
|
2.7
|
|
|
|
0.01
|
|
Impairment of
businesses held
for sale
|
|
|
—
|
|
|
|
26.7
|
|
|
|
26.7
|
|
|
|
26.7
|
|
|
|
6.6
|
|
|
|
|
|
|
|
20.1
|
|
|
|
0.04
|
|
Goodwill and brand
impairment charges
|
|
|
—
|
|
|
|
385.7
|
|
|
|
385.7
|
|
|
|
385.7
|
|
|
|
58.9
|
|
|
|
|
|
|
|
326.8
|
|
|
|
0.68
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
2,524.1
|
|
|
$
|
819.6
|
|
|
$
|
1,483.3
|
|
|
$
|
1,199.9
|
|
|
$
|
315.5
|
|
|
|
23.4
|
%
|
|
$
|
1,032.6
|
|
|
$
|
2.15
|
|
% of Net
Sales
|
|
|
27.1
|
%
|
|
|
8.8
|
%
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Operating
profit is derived from taking Income from continuing operations
before income taxes and equity method investment earnings, adding
back Interest expense, net and removing Pension and postretirement
non-service (income) expense.
|
2 Advertising and promotion expense
(A&P) has been removed from adjusted selling, general and
administrative expense because this metric is used in reporting to
management, and management believes this adjusted measure provides
useful supplemental information to assess the company's operating
performance. Please note that A&P is not removed from adjusted
profit measures.
|
Conagra Brands,
Inc.
Reconciliation of YTD
Free Cash Flow, Net Debt, and Net Leverage Ratio
(in
millions)
|
|
|
|
February 25,
2024
|
|
|
February 26,
2023
|
|
|
%
Change
|
|
Net cash flows from
operating activities
|
|
$
|
1,531.3
|
|
|
$
|
703.4
|
|
|
|
117.7
|
%
|
Additions to property,
plant and equipment
|
|
|
(309.6)
|
|
|
|
(267.4)
|
|
|
|
15.8
|
%
|
Free cash
flow
|
|
$
|
1,221.7
|
|
|
$
|
436.0
|
|
|
|
180.2
|
%
|
|
|
Q3
FY24
|
|
|
Q3
FY23
|
|
Notes
payable
|
|
$
|
166.3
|
|
|
$
|
653.7
|
|
Current installments of
long-term debt
|
|
|
1,019.2
|
|
|
|
516.6
|
|
Senior long-term debt,
excluding current installments
|
|
|
7,491.8
|
|
|
|
8,081.2
|
|
Total
Debt
|
|
$
|
8,677.3
|
|
|
$
|
9,251.5
|
|
Less: Cash
|
|
|
78.5
|
|
|
|
70.1
|
|
Net
Debt
|
|
$
|
8,598.8
|
|
|
$
|
9,181.4
|
|
|
|
Q3
FY24
|
|
Net
Debt1
|
|
$
|
8,598.8
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
952.0
|
|
Add Back: Income tax
expense
|
|
|
278.8
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.3)
|
|
Interest expense,
net
|
|
|
433.8
|
|
Depreciation
|
|
|
330.9
|
|
Amortization
|
|
|
53.7
|
|
Earnings before
interest, taxes, depreciation, and amortization
(EBITDA)
|
|
$
|
2,048.9
|
|
Restructuring
plans2
|
|
|
26.8
|
|
Acquisitions and
divestitures
|
|
|
7.8
|
|
Corporate hedging
derivative losses (gains)
|
|
|
2.9
|
|
Goodwill and brand
impairment charges3
|
|
|
343.6
|
|
Legal
matters
|
|
|
35.7
|
|
Fire related
benefit
|
|
|
(3.3)
|
|
Third-party vendor
cybersecurity incident
|
|
|
4.4
|
|
Impairment of business
held for sale
|
|
|
34.2
|
|
Adjusted
EBITDA
|
|
$
|
2,501.0
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA4
|
|
|
3.44
|
|
1 As of
February 25, 2024.
|
2 Excludes
comparability items related to depreciation.
|
3 Excludes
comparability items attributable to noncontrolling
interests.
|
4 The
company defines its net debt leverage ratio as net debt divided by
adjusted EBITDA for the trailing twelve month period.
|
Conagra Brands,
Inc.
Reconciliation of Q3
FY24 QTD and YTD EBITDA - YOY Change
(in
millions)
|
|
|
|
Q3
FY24
|
|
|
Q3
FY23
|
|
|
%
Change
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
308.6
|
|
|
$
|
341.7
|
|
|
|
(9.7)
|
%
|
Add Back: Income tax
expense
|
|
|
95.9
|
|
|
|
100.1
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
|
|
Interest expense,
net
|
|
|
106.5
|
|
|
|
104.2
|
|
|
|
|
|
Depreciation
|
|
|
82.4
|
|
|
|
77.7
|
|
|
|
|
|
Amortization
|
|
|
13.4
|
|
|
|
13.8
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
606.8
|
|
|
$
|
637.3
|
|
|
|
(4.8)
|
%
|
Restructuring
plans 1
|
|
|
1.5
|
|
|
|
2.1
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.2
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
6.8
|
|
|
|
22.7
|
|
|
|
|
|
Fire related
costs
|
|
|
0.6
|
|
|
|
6.6
|
|
|
|
|
|
Municipal water break
costs
|
|
|
—
|
|
|
|
0.3
|
|
|
|
|
|
Legal
matters
|
|
|
17.9
|
|
|
|
—
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
633.6
|
|
|
$
|
669.2
|
|
|
|
(5.3)
|
%
|
|
|
Q3 FY24
YTD
|
|
|
Q3 FY23
YTD
|
|
|
%
Change
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
914.5
|
|
|
$
|
646.1
|
|
|
|
41.5
|
%
|
Add Back: Income tax
expense
|
|
|
297.1
|
|
|
|
237.0
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.1)
|
|
|
|
(0.3)
|
|
|
|
|
|
Interest expense,
net
|
|
|
325.8
|
|
|
|
301.6
|
|
|
|
|
|
Depreciation
|
|
|
251.5
|
|
|
|
233.7
|
|
|
|
|
|
Amortization
|
|
|
40.2
|
|
|
|
43.3
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
1,829.0
|
|
|
$
|
1,461.4
|
|
|
|
25.2
|
%
|
Restructuring
plans 1
|
|
|
23.3
|
|
|
|
8.8
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
0.2
|
|
|
|
0.8
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(9.6)
|
|
|
|
24.6
|
|
|
|
|
|
Fire related costs
(benefit)
|
|
|
(2.2)
|
|
|
|
14.5
|
|
|
|
|
|
Municipal water break
costs
|
|
|
—
|
|
|
|
3.5
|
|
|
|
|
|
Impairment of
businesses held for sale
|
|
|
34.2
|
|
|
|
26.7
|
|
|
|
|
|
Goodwill and brand
impairment charges
|
|
|
—
|
|
|
|
385.7
|
|
|
|
|
|
Legal
matters
|
|
|
31.9
|
|
|
|
—
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
1,906.8
|
|
|
$
|
1,926.0
|
|
|
|
(1.0)
|
%
|
1 Excludes
comparability items related to depreciation.
|
For more information, please contact:
MEDIA:
Mike Cummins
312-549-5257
Michael.Cummins@conagra.com
INVESTORS: Melissa Napier
312-549-5738
IR@conagra.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/conagra-brands-reports-third-quarter-results-302107743.html
SOURCE Conagra Brands, Inc.