CHICAGO, Jan. 4, 2024
/PRNewswire/ -- Today Conagra Brands, Inc. (NYSE: CAG) reported
results for the second quarter of fiscal year 2024, which
ended on November 26, 2023. All
comparisons are against the prior-year fiscal period, unless
otherwise noted.
Second Quarter Highlights
- Net sales decreased 3.2% from the prior year
quarter; organic net sales decreased 3.4%
- Operating margin was 14.0%, representing
a 261 basis point decrease over the prior year
quarter. Adjusted operating margin
was 15.9%, representing a 108 basis
point decrease over the prior year quarter.
- Diluted earnings per share (EPS) was $0.60, a 24.1%
decrease over the prior year quarter. Adjusted EPS
was $0.71, a 12.3% decrease over the prior year
quarter.
- The company is updating its fiscal 2024 guidance and now
expects:
- Organic net sales to decrease between 1.0% and 2.0% compared to
fiscal 2023
- Adjusted operating margin of approximately 15.6%
- Adjusted EPS between $2.60 and
$2.65
CEO Perspective
Sean
Connolly, president and chief executive officer of Conagra
Brands, commented, "Despite an ongoing challenging macro
environment, we saw several positive signs in Q2. In particular,
volume trends in our domestic retail business improved
substantially, as inflation-driven volume declines were cut in half
compared to Q1. Most importantly, our targeted investments in our
frozen business generated strong lifts and market share gains.
These developments reinforced our confidence in investing to build
momentum in the second half and set up a strong FY25."
Total Company Second Quarter Results
In the quarter,
net sales were $3.2 billion reflecting:
- a 0.2% increase from the favorable impact of foreign exchange;
and
- a 3.4% decrease in organic net sales.
The 3.4% decrease in organic net sales was driven by a 0.5%
negative impact from price/mix, partially attributable to an
increase in strategic investments, and a 2.9% decrease in volume,
primarily due to continued lower consumption trends.
Gross profit decreased 8.2% to $847
million in the quarter, and adjusted gross profit decreased
7.6% to $862 million. Second quarter
gross profit decreased as higher productivity was more than offset
by the negative impacts of cost of goods sold inflation, lower
organic net sales, and unfavorable operating leverage. Gross margin
decreased 145 basis points to 26.4% in the quarter, and adjusted
gross margin decreased 129 basis points to 26.9%.
Selling, general, and administrative expense (SG&A), which
includes advertising and promotional expense
(A&P), increased 6.8% to $398 million in the
quarter due to an impairment associated with a business being
reclassified to held for sale and legal reserve
adjustments made in the quarter, partially offset by a decline
in A&P from timing shifts over the prior year
quarter. Adjusted SG&A, which excludes A&P, decreased
4.1% to $279 million primarily driven
by lower incentive compensation compared to the prior year
quarter.
Net interest expense was $113
million in the quarter. Compared to the prior-year period,
net interest expense increased 13.0% or $13
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 25.1% to $286 million, or $0.60 per diluted
share compared to $382 million, or $0.79 per diluted
share in the prior year quarter driven primarily by the decrease in
gross profit and increase in SG&A, as previously discussed.
Adjusted net income attributable to Conagra Brands decreased 12.9%
to $341 million, or $0.71 per diluted share driven primarily by the
decrease in gross profit.
Adjusted EBITDA, which includes equity method investment
earnings and pension and postretirement non-service expense
(income), decreased 7.0% to $661
million in the quarter, primarily driven by the decrease in
adjusted gross profit.
Grocery & Snacks Segment Second Quarter
Results
Reported and organic net sales for the Grocery &
Snacks segment decreased 4.1% to $1.3
billion in the quarter driven by a price/mix decrease of
0.4%, partially attributable to an increase in strategic
investments, coupled with a volume decrease of 3.7%, primarily due
to continued lower consumption trends. The company gained dollar
share in snacking and staples categories including microwave
popcorn and seeds, chili, and hot cocoa.
Operating profit for the segment decreased 18.0%
to $279 million in the quarter. Adjusted operating
profit decreased 17.3% to $282 million as
productivity was more than offset by the negative impacts of cost
of goods sold inflation, lower organic net sales, unfavorable
operating leverage, and higher A&P and SG&A.
Refrigerated & Frozen Segment Second Quarter
Results
Reported and organic net sales for the Refrigerated
& Frozen segment decreased 5.8% to $1.3
billion in the quarter as price mix decreased 2.5%,
partially 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 and frozen breakfast and gained unit share in
frozen single serve meals.
Operating profit for the segment
decreased 12.0% to $220 million in the quarter.
Adjusted operating profit decreased 14.2% to $222
million as productivity and lower A&P were more than
offset by the negative impacts of unfavorable operating
leverage, lower organic net sales, cost of goods sold
inflation, and increased SG&A.
International Segment Second Quarter Results
Net sales
for the International segment increased 8.1% to $280
million in the quarter reflecting:
- a 2.5% increase from the favorable impact of foreign
exchange; and
- a 5.6% increase in organic net sales.
On an organic net sales basis, price/mix increased 2.3% and
volume increased 3.3% primarily driven by a strong performance in
the company's Mexico business.
Operating profit for the segment decreased 84.0%
to $6 million in the quarter primarily due to an impairment
associated with a business being reclassified to held for sale.
Adjusted operating profit increased 10.3% to $41
million as the benefits from higher organic net sales
and productivity more than offset the negative
impact of cost of goods sold inflation, and higher
SG&A and A&P.
Foodservice Segment Second Quarter Results
Reported
and organic net sales for the Foodservice segment increased 4.3% to
$295 million in the quarter.
Price/mix increased 6.8%, primarily due to inflation-driven pricing
actions taken in the prior year, and volume decreased 2.5%.
Operating profit for the
segment increased 33.2% to $38
million. Adjusted operating profit increased 24.3%
to $35 million in the quarter as the benefits of higher
organic net sales, productivity, and lower cost of goods sold
inflation more than offset the impacts of unfavorable operating
leverage and increased A&P and SG&A.
Other Second Quarter Items
Corporate expenses
decreased 10.9% to $95 million in the
quarter and adjusted corporate expense decreased 31.9% to
$70 million in the quarter driven
primarily by lower incentive compensation compared to the prior
year quarter.
We incurred pension and post-retirement non-service expense in
the quarter compared to $6 million of
income in the prior-year quarter due primarily to higher interest
costs.
In the quarter, equity method investment earnings increased
10.3% to $54 million reflecting
continued strong product margins from the company's joint venture,
Ardent Mills.
In the quarter, the effective tax rate was 26.5% compared to
24.3% in the prior-year quarter. The adjusted effective tax rate
was 24.3%, unchanged compared to the prior-year quarter.
In the quarter, the company paid a dividend of $0.35 per share.
Outlook
The company is lowering its fiscal 2024
organic net sales growth, operating margin, and adjusted EPS
outlook to reflect year-to-date results, expectations for a slower
volume recovery, and increased brand investments in the second half
of the fiscal year.
The company's fiscal 2024 guidance reflects:
- Organic net sales to decrease between 1.0%
and 2.0% compared to fiscal 2023
- Adjusted operating margin is expected to be approximately
15.6%
- Adjusted EPS is expected to be between $2.60 and $2.65
- Net Leverage Ratio of approximately 3.55x
- Capital expenditures of approximately $450M
- Interest expense of approximately $440M
- 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 $0.60 EPS for the
second 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 restructuring plans
- Approximately $0.02 per
diluted share of net expense related to corporate hedging
derivative losses
- Approximately $0.07 per diluted
share of net expense related to an impairment of a business held
for sale
- Approximately $0.02 per
diluted share of net expense related to legal matters
- Approximately $0.01 per
diluted share of net benefit related to rounding
The following are included in the $0.79 EPS for the second 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 $0.01 per diluted
share of net expense related to rounding
Please note that certain prior year amounts have been
reclassified to conform with current year presentation.
Discussion of Results
Conagra Brands will host a
webcast and conference call at 9:30 a.m.
Eastern time today to discuss the results. The live audio
webcast and presentation slides will be available on
www.conagrabrands.com/investor-relations under Events &
Presentations. The 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 9519988. Please dial in
10 to 15 minutes prior to the call start time. Following the
company's remarks, the conference call will include a
question-and-answer session with the investment community. A replay
of the webcast will be available on
www.conagrabrands.com/investor-relations under Events &
Presentations until January 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)
|
|
|
|
SECOND
QUARTER
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Thirteen Weeks
Ended
|
|
|
|
|
|
|
|
November 26,
2023
|
|
|
November 27,
2022
|
|
|
Percent
Change
|
|
Net sales
|
|
$
|
3,208.1
|
|
|
$
|
3,312.9
|
|
|
|
(3.2)
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
2,361.5
|
|
|
|
2,390.6
|
|
|
|
(1.2)
|
%
|
Selling, general and
administrative expenses
|
|
|
398.1
|
|
|
|
372.7
|
|
|
|
6.8
|
%
|
Pension and
postretirement non-service expense (income)
|
|
|
0.4
|
|
|
|
(6.1)
|
|
|
|
N/A
|
|
Interest expense,
net
|
|
|
113.3
|
|
|
|
100.3
|
|
|
|
13.0
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
334.8
|
|
|
|
455.4
|
|
|
|
(26.5)
|
%
|
Income tax
expense
|
|
|
102.9
|
|
|
|
122.5
|
|
|
|
(16.0)
|
%
|
Equity method
investment earnings
|
|
|
54.3
|
|
|
|
49.3
|
|
|
|
10.3
|
%
|
Net income
|
|
$
|
286.2
|
|
|
$
|
382.2
|
|
|
|
(25.1)
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
—
|
|
|
|
0.3
|
|
|
|
(100.0)
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
286.2
|
|
|
$
|
381.9
|
|
|
|
(25.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.60
|
|
|
$
|
0.80
|
|
|
|
(25.0)
|
%
|
Weighted average shares
outstanding
|
|
|
478.7
|
|
|
|
479.4
|
|
|
|
(0.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.60
|
|
|
$
|
0.79
|
|
|
|
(24.1)
|
%
|
Weighted average share
and share equivalents outstanding
|
|
|
479.8
|
|
|
|
480.9
|
|
|
|
(0.2)
|
%
|
Conagra Brands,
Inc.
Consolidated Statements
of Earnings
(in
millions)
(unaudited)
|
|
|
|
SECOND QUARTER YEAR TO
DATE
|
|
|
|
Twenty-Six
Weeks Ended
|
|
|
Twenty-Six
Weeks Ended
|
|
|
|
|
|
|
|
November 26,
2023
|
|
|
November 27,
2022
|
|
|
Percent
Change
|
|
Net sales
|
|
$
|
6,112.1
|
|
|
$
|
6,217.2
|
|
|
|
(1.7)
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
4,442.4
|
|
|
|
4,574.6
|
|
|
|
(2.9)
|
%
|
Selling, general and
administrative expenses
|
|
|
732.2
|
|
|
|
1,114.3
|
|
|
|
(34.3)
|
%
|
Pension and
postretirement non-service expense (income)
|
|
|
0.7
|
|
|
|
(12.2)
|
|
|
|
N/A
|
|
Interest expense,
net
|
|
|
219.3
|
|
|
|
197.4
|
|
|
|
11.1
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
717.5
|
|
|
|
343.1
|
|
|
|
109.1
|
%
|
Income tax
expense
|
|
|
201.2
|
|
|
|
136.9
|
|
|
|
47.0
|
%
|
Equity method
investment earnings
|
|
|
89.8
|
|
|
|
98.5
|
|
|
|
(8.8)
|
%
|
Net income
|
|
$
|
606.1
|
|
|
$
|
304.7
|
|
|
|
99.0
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
(8.3)
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
605.9
|
|
|
$
|
304.4
|
|
|
|
99.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.27
|
|
|
$
|
0.63
|
|
|
|
101.6
|
%
|
Weighted average shares
outstanding
|
|
|
478.4
|
|
|
|
480.0
|
|
|
|
(0.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.26
|
|
|
$
|
0.63
|
|
|
|
100.0
|
%
|
Weighted average share
and share equivalents outstanding
|
|
|
479.8
|
|
|
|
481.6
|
|
|
|
(0.4)
|
%
|
Conagra Brands,
Inc.
Consolidated Balance
Sheets
(in
millions)
(unaudited)
|
|
|
|
November 26,
2023
|
|
|
May 28, 2023
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
61.5
|
|
|
$
|
93.3
|
|
Receivables, less
allowance for doubtful accounts of $3.0 and $2.7
|
|
|
974.1
|
|
|
|
952.8
|
|
Inventories
|
|
|
2,277.6
|
|
|
|
2,212.2
|
|
Prepaid expenses and
other current assets
|
|
|
125.7
|
|
|
|
92.4
|
|
Current assets held
for sale
|
|
|
30.2
|
|
|
|
34.3
|
|
Total current
assets
|
|
|
3,469.1
|
|
|
|
3,385.0
|
|
Property, plant and
equipment, net
|
|
|
2,876.5
|
|
|
|
2,736.4
|
|
Goodwill
|
|
|
11,109.3
|
|
|
|
11,109.4
|
|
Brands, trademarks and
other intangibles, net
|
|
|
3,165.4
|
|
|
|
3,192.3
|
|
Other assets
|
|
|
1,410.2
|
|
|
|
1,506.2
|
|
Noncurrent assets held
for sale
|
|
|
89.5
|
|
|
|
123.3
|
|
|
|
$
|
22,120.0
|
|
|
$
|
22,052.6
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
559.0
|
|
|
$
|
636.3
|
|
Current installments
of long-term debt
|
|
|
1,017.3
|
|
|
|
1,516.0
|
|
Accounts and other
payables
|
|
|
1,474.6
|
|
|
|
1,525.5
|
|
Accrued
payroll
|
|
|
129.5
|
|
|
|
163.5
|
|
Other accrued
liabilities
|
|
|
639.6
|
|
|
|
583.3
|
|
Current liabilities
held for sale
|
|
|
13.1
|
|
|
|
16.1
|
|
Total current
liabilities
|
|
|
3,833.1
|
|
|
|
4,440.7
|
|
Senior long-term debt,
excluding current installments
|
|
|
7,493.3
|
|
|
|
7,081.3
|
|
Other noncurrent
liabilities
|
|
|
1,717.5
|
|
|
|
1,718.0
|
|
Noncurrent liabilities
held for sale
|
|
|
1.9
|
|
|
|
5.3
|
|
Total stockholders'
equity
|
|
|
9,074.2
|
|
|
|
8,807.3
|
|
|
|
$
|
22,120.0
|
|
|
$
|
22,052.6
|
|
Conagra Brands, Inc.
and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(in
millions)
(unaudited)
|
|
|
|
Twenty-Six
Weeks Ended
|
|
|
Twenty-Six
Weeks Ended
|
|
|
|
November 26,
2023
|
|
|
November 27,
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
606.1
|
|
|
$
|
304.7
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
195.9
|
|
|
|
185.5
|
|
Asset impairment
charges
|
|
|
50.7
|
|
|
|
413.7
|
|
Equity method
investment earnings less than (in excess) of
distributions
|
|
|
76.9
|
|
|
|
(55.6)
|
|
Stock-settled
share-based payments expense
|
|
|
3.5
|
|
|
|
59.0
|
|
Contributions to
pension plans
|
|
|
(6.0)
|
|
|
|
(5.9)
|
|
Pension expense
(benefit)
|
|
|
5.5
|
|
|
|
(6.9)
|
|
Other items
|
|
|
24.0
|
|
|
|
(4.5)
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
(29.8)
|
|
|
|
(46.1)
|
|
Inventories
|
|
|
(61.8)
|
|
|
|
(380.9)
|
|
Deferred income taxes
and income taxes payable, net
|
|
|
24.0
|
|
|
|
(39.4)
|
|
Prepaid expenses and
other current assets
|
|
|
(30.6)
|
|
|
|
(13.8)
|
|
Accounts and other
payables
|
|
|
7.7
|
|
|
|
(109.8)
|
|
Accrued
payroll
|
|
|
(34.1)
|
|
|
|
(32.2)
|
|
Other accrued
liabilities
|
|
|
22.6
|
|
|
|
30.0
|
|
Net cash flows from
operating activities
|
|
|
854.6
|
|
|
|
297.8
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(214.0)
|
|
|
|
(188.4)
|
|
Sale of property,
plant and equipment
|
|
|
0.5
|
|
|
|
2.4
|
|
Purchase of marketable
securities
|
|
|
(5.1)
|
|
|
|
(1.6)
|
|
Sale of marketable
securities
|
|
|
5.1
|
|
|
|
1.6
|
|
Other items
|
|
|
9.6
|
|
|
|
4.1
|
|
Net cash flows from
investing activities
|
|
|
(203.9)
|
|
|
|
(181.9)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Issuances of
short-term borrowings, maturities greater than 90 days
|
|
|
93.9
|
|
|
|
172.2
|
|
Repayment of
short-term borrowings, maturities greater than 90 days
|
|
|
(99.3)
|
|
|
|
(168.8)
|
|
Net (repayment)
issuance of other short-term borrowings, maturities less than or
equal to 90 days
|
|
|
(75.8)
|
|
|
|
72.0
|
|
Issuance of long-term
debt
|
|
|
500.0
|
|
|
|
500.0
|
|
Repayment of long-term
debt
|
|
|
(760.6)
|
|
|
|
(265.8)
|
|
Debt issuance
costs
|
|
|
(3.1)
|
|
|
|
(4.0)
|
|
Repurchase of Conagra
Brands, Inc. common shares
|
|
|
—
|
|
|
|
(150.0)
|
|
Cash dividends
paid
|
|
|
(324.7)
|
|
|
|
(308.6)
|
|
Exercise of stock
options and issuance of other stock awards, including tax
withholdings
|
|
|
(13.3)
|
|
|
|
(5.7)
|
|
Other items
|
|
|
(0.5)
|
|
|
|
1.3
|
|
Net cash flows from
financing activities
|
|
|
(683.4)
|
|
|
|
(157.4)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
1.6
|
|
|
|
(2.1)
|
|
Net change in cash and
cash equivalents, including cash balances classified as assets held
for sale
|
|
|
(31.1)
|
|
|
|
(43.6)
|
|
Less: Net change in
cash balances classified as assets held for sale
|
|
|
0.7
|
|
|
|
(0.4)
|
|
Net change in cash and
cash equivalents
|
|
|
(31.8)
|
|
|
|
(43.2)
|
|
Cash and cash
equivalents at beginning of period
|
|
|
93.3
|
|
|
|
82.2
|
|
Cash and cash
equivalents at end of period
|
|
$
|
61.5
|
|
|
$
|
39.0
|
|
Conagra Brands,
Inc.
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
Q2
FY24
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,295.1
|
|
|
$
|
1,338.5
|
|
|
$
|
279.6
|
|
|
$
|
294.9
|
|
|
$
|
3,208.1
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.5)
|
|
|
|
—
|
|
|
|
(6.5)
|
|
Organic Net
Sales
|
|
$
|
1,295.1
|
|
|
$
|
1,338.5
|
|
|
$
|
273.1
|
|
|
$
|
294.9
|
|
|
$
|
3,201.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
(4.1)
|
%
|
|
|
(5.8)
|
%
|
|
|
8.1
|
%
|
|
|
4.3
|
%
|
|
|
(3.2)
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.5)
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Organic Net
Sales
|
|
|
(4.1)
|
%
|
|
|
(5.8)
|
%
|
|
|
5.6
|
%
|
|
|
4.3
|
%
|
|
|
(3.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
(3.7)
|
%
|
|
|
(3.3)
|
%
|
|
|
3.3
|
%
|
|
|
(2.5)
|
%
|
|
|
(2.9)
|
%
|
Price/Mix
|
|
|
(0.4)
|
%
|
|
|
(2.5)
|
%
|
|
|
2.3
|
%
|
|
|
6.8
|
%
|
|
|
(0.5)
|
%
|
|
|
Q2
FY23
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,349.9
|
|
|
$
|
1,421.5
|
|
|
$
|
258.7
|
|
|
$
|
282.8
|
|
|
$
|
3,312.9
|
|
Net sales from divested
businesses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Organic Net
Sales
|
|
$
|
1,349.9
|
|
|
$
|
1,421.5
|
|
|
$
|
258.7
|
|
|
$
|
282.8
|
|
|
$
|
3,312.9
|
|
|
|
Q2 FY24
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra
Brands
|
|
Net
Sales
|
|
$
|
2,498.0
|
|
|
$
|
2,490.1
|
|
|
$
|
539.8
|
|
|
$
|
584.2
|
|
|
$
|
6,112.1
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
(13.9)
|
|
|
|
—
|
|
|
|
(13.9)
|
|
Organic Net
Sales
|
|
$
|
2,498.0
|
|
|
$
|
2,490.1
|
|
|
$
|
525.9
|
|
|
$
|
584.2
|
|
|
$
|
6,098.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
(1.6)
|
%
|
|
|
(5.3)
|
%
|
|
|
9.7
|
%
|
|
|
4.7
|
%
|
|
|
(1.7)
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.9)
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Organic Net
Sales
|
|
|
(1.6)
|
%
|
|
|
(5.3)
|
%
|
|
|
6.8
|
%
|
|
|
4.7
|
%
|
|
|
(1.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
(4.0)
|
%
|
|
|
(6.7)
|
%
|
|
|
1.9
|
%
|
|
|
(3.8)
|
%
|
|
|
(4.7)
|
%
|
Price/Mix
|
|
|
2.4
|
%
|
|
|
1.4
|
%
|
|
|
4.9
|
%
|
|
|
8.5
|
%
|
|
|
2.8
|
%
|
|
|
Q2 FY23
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra
Brands
|
|
Net
Sales
|
|
$
|
2,538.2
|
|
|
$
|
2,629.1
|
|
|
$
|
492.2
|
|
|
$
|
557.7
|
|
|
$
|
6,217.2
|
|
Net sales from divested
businesses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Organic Net
Sales
|
|
$
|
2,538.2
|
|
|
$
|
2,629.1
|
|
|
$
|
492.2
|
|
|
$
|
557.7
|
|
|
$
|
6,217.2
|
|
Conagra Brands,
Inc.
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
Q2
FY24
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
279.2
|
|
|
$
|
220.2
|
|
|
$
|
5.9
|
|
|
$
|
38.0
|
|
|
$
|
(94.8)
|
|
|
$
|
448.5
|
|
Restructuring
plans
|
|
|
2.7
|
|
|
|
0.5
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
3.5
|
|
Impairment of business
held for sale
|
|
|
—
|
|
|
|
—
|
|
|
|
34.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34.2
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14.0
|
|
|
|
14.0
|
|
Fire related cost
(benefit)
|
|
|
—
|
|
|
|
1.5
|
|
|
|
—
|
|
|
|
(2.6)
|
|
|
|
—
|
|
|
|
(1.1)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11.2
|
|
|
|
11.2
|
|
Adjusted Operating
Profit
|
|
$
|
281.9
|
|
|
$
|
222.2
|
|
|
$
|
40.6
|
|
|
$
|
35.4
|
|
|
$
|
(69.8)
|
|
|
$
|
510.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
21.6
|
%
|
|
|
16.5
|
%
|
|
|
2.1
|
%
|
|
|
12.9
|
%
|
|
|
|
|
|
|
14.0
|
%
|
Adjusted Operating
Profit Margin
|
|
|
21.8
|
%
|
|
|
16.6
|
%
|
|
|
14.5
|
%
|
|
|
12.0
|
%
|
|
|
|
|
|
|
15.9
|
%
|
Year-over-year % change
- Operating Profit
|
|
|
(18.0)
|
%
|
|
|
(12.0)
|
%
|
|
|
(84.0)
|
%
|
|
|
33.2
|
%
|
|
|
(10.9)
|
%
|
|
|
(18.4)
|
%
|
Year-over year % change
- Adjusted Operating Profit
|
|
|
(17.3)
|
%
|
|
|
(14.2)
|
%
|
|
|
10.3
|
%
|
|
|
24.3
|
%
|
|
|
(31.9)
|
%
|
|
|
(9.3)
|
%
|
Year-over-year bps
change - Operating Profit
|
|
(366) bps
|
|
|
(115) bps
|
|
|
(1,214) bps
|
|
|
279 bps
|
|
|
|
|
|
|
(261) bps
|
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
(348) bps
|
|
|
(162) bps
|
|
|
30 bps
|
|
|
193 bps
|
|
|
|
|
|
|
(108) bps
|
|
|
|
Q2
FY23
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
340.4
|
|
|
$
|
250.3
|
|
|
$
|
36.9
|
|
|
$
|
28.5
|
|
|
$
|
(106.5)
|
|
|
$
|
549.6
|
|
Restructuring
plans
|
|
|
(0.1)
|
|
|
|
0.8
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
1.2
|
|
|
|
1.8
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
0.5
|
|
Fire related
costs
|
|
|
—
|
|
|
|
7.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.9
|
|
Municipal water break
costs
|
|
|
0.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.6
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.4
|
|
|
|
2.4
|
|
Adjusted Operating
Profit
|
|
$
|
340.9
|
|
|
$
|
259.0
|
|
|
$
|
36.8
|
|
|
$
|
28.5
|
|
|
$
|
(102.4)
|
|
|
$
|
562.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
25.2
|
%
|
|
|
17.6
|
%
|
|
|
14.3
|
%
|
|
|
10.1
|
%
|
|
|
|
|
|
|
16.6
|
%
|
Adjusted Operating
Profit Margin
|
|
|
25.3
|
%
|
|
|
18.2
|
%
|
|
|
14.2
|
%
|
|
|
10.1
|
%
|
|
|
|
|
|
|
17.0
|
%
|
Conagra Brands,
Inc.
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
Q2 FY24
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
537.9
|
|
|
$
|
419.4
|
|
|
$
|
29.6
|
|
|
$
|
82.1
|
|
|
$
|
(131.5)
|
|
|
$
|
937.5
|
|
Restructuring
plans
|
|
|
7.5
|
|
|
|
1.1
|
|
|
|
19.1
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
27.9
|
|
Impairment of business
held for sale
|
|
|
—
|
|
|
|
—
|
|
|
|
34.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34.2
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14.0
|
|
|
|
14.0
|
|
Fire related cost
(benefit)
|
|
|
—
|
|
|
|
3.1
|
|
|
|
—
|
|
|
|
(5.9)
|
|
|
|
—
|
|
|
|
(2.8)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(16.4)
|
|
|
|
(16.4)
|
|
Adjusted Operating
Profit
|
|
$
|
545.4
|
|
|
$
|
423.6
|
|
|
$
|
82.9
|
|
|
$
|
76.2
|
|
|
$
|
(133.5)
|
|
|
$
|
994.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
21.5
|
%
|
|
|
16.8
|
%
|
|
|
5.5
|
%
|
|
|
14.0
|
%
|
|
|
|
|
|
|
15.3
|
%
|
Adjusted Operating
Profit Margin
|
|
|
21.8
|
%
|
|
|
17.0
|
%
|
|
|
15.4
|
%
|
|
|
13.0
|
%
|
|
|
|
|
|
|
16.3
|
%
|
Year-over-year % change
- Operating Profit
|
|
|
(8.9)
|
%
|
|
|
1,134.6
|
%
|
|
|
(53.6)
|
%
|
|
|
176.5
|
%
|
|
|
(30.8)
|
%
|
|
|
77.5
|
%
|
Year-over year % change
- Adjusted Operating Profit
|
|
|
(8.3)
|
%
|
|
|
(2.6)
|
%
|
|
|
30.4
|
%
|
|
|
51.7
|
%
|
|
|
(26.7)
|
%
|
|
|
3.5
|
%
|
Year-over-year bps
change - Operating Profit
|
|
(174) bps
|
|
|
|
1,555 bps
|
|
|
(748) bps
|
|
|
872 bps
|
|
|
|
|
|
|
|
684 bps
|
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
(159) bps
|
|
|
48 bps
|
|
|
244 bps
|
|
|
403 bps
|
|
|
|
|
|
|
82 bps
|
|
|
|
Q2 FY23
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
590.8
|
|
|
$
|
34.0
|
|
|
$
|
63.8
|
|
|
$
|
29.7
|
|
|
$
|
(190.0)
|
|
|
$
|
528.3
|
|
Restructuring
plans
|
|
|
0.2
|
|
|
|
1.4
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
5.3
|
|
|
|
6.7
|
|
Impairment of
businesses held for sale
|
|
|
0.5
|
|
|
|
5.7
|
|
|
|
—
|
|
|
|
20.5
|
|
|
|
—
|
|
|
|
26.7
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
0.6
|
|
Goodwill and brand
impairment charges
|
|
|
—
|
|
|
|
385.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
385.7
|
|
Fire related
costs
|
|
|
—
|
|
|
|
7.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.9
|
|
Municipal water break
costs
|
|
|
3.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.2
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.9
|
|
|
|
1.9
|
|
Adjusted Operating
Profit
|
|
$
|
594.7
|
|
|
$
|
434.7
|
|
|
$
|
63.6
|
|
|
$
|
50.2
|
|
|
$
|
(182.2)
|
|
|
$
|
961.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
23.3
|
%
|
|
|
1.3
|
%
|
|
|
13.0
|
%
|
|
|
5.3
|
%
|
|
|
|
|
|
|
8.5
|
%
|
Adjusted Operating
Profit Margin
|
|
|
23.4
|
%
|
|
|
16.5
|
%
|
|
|
12.9
|
%
|
|
|
9.0
|
%
|
|
|
|
|
|
|
15.5
|
%
|
Conagra Brands,
Inc.
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
Q2
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
|
|
$
|
846.6
|
|
|
$
|
398.1
|
|
|
$
|
448.5
|
|
|
$
|
334.8
|
|
|
$
|
102.9
|
|
|
|
26.5
|
%
|
|
$
|
286.2
|
|
|
$
|
0.60
|
|
% of Net
Sales
|
|
|
26.4
|
%
|
|
|
12.4
|
%
|
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
2.8
|
|
|
|
0.7
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
0.8
|
|
|
|
|
|
|
|
2.7
|
|
|
|
0.01
|
|
Corporate hedging
derivative losses (gains)
|
|
|
11.2
|
|
|
|
—
|
|
|
|
11.2
|
|
|
|
11.2
|
|
|
|
2.6
|
|
|
|
|
|
|
|
8.6
|
|
|
|
0.02
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
72.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related cost
(benefit)
|
|
|
1.5
|
|
|
|
(2.6)
|
|
|
|
(1.1)
|
|
|
|
(1.1)
|
|
|
|
(0.3)
|
|
|
|
|
|
|
|
(0.8)
|
|
|
|
—
|
|
Impairment of business
held for sale
|
|
|
—
|
|
|
|
34.2
|
|
|
|
34.2
|
|
|
|
34.2
|
|
|
|
(0.1)
|
|
|
|
|
|
|
|
34.3
|
|
|
|
0.07
|
|
Legal
matters
|
|
|
—
|
|
|
|
14.0
|
|
|
|
14.0
|
|
|
|
14.0
|
|
|
|
3.6
|
|
|
|
|
|
|
|
10.4
|
|
|
|
0.02
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Adjusted
|
|
$
|
862.1
|
|
|
$
|
279.3
|
|
|
$
|
510.3
|
|
|
$
|
396.6
|
|
|
$
|
109.5
|
|
|
|
24.3
|
%
|
|
$
|
341.4
|
|
|
$
|
0.71
|
|
% of Net
Sales
|
|
|
26.9
|
%
|
|
|
8.7
|
%
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales change - reported
|
|
|
(145)
bps
|
|
|
|
116
bps
|
|
|
|
(261)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales change - adjusted
|
|
|
(129)
bps
|
|
|
|
(9)
bps
|
|
|
|
(108)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change -
reported
|
|
|
(8.2)
|
%
|
|
|
6.8
|
%
|
|
|
(18.4)
|
%
|
|
|
(26.5)
|
%
|
|
|
(16.0)
|
%
|
|
|
|
|
|
|
(25.1)
|
%
|
|
|
(24.1)
|
%
|
Year-over-year
change - adjusted
|
|
|
(7.6)
|
%
|
|
|
(4.1)
|
%
|
|
|
(9.3)
|
%
|
|
|
(15.3)
|
%
|
|
|
(12.9)
|
%
|
|
|
|
|
|
|
(12.9)
|
%
|
|
|
(12.3)
|
%
|
Q2
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
|
|
$
|
922.3
|
|
|
$
|
372.7
|
|
|
$
|
549.6
|
|
|
$
|
455.4
|
|
|
$
|
122.5
|
|
|
|
24.3
|
%
|
|
$
|
381.9
|
|
|
$
|
0.79
|
|
% of Net
Sales
|
|
|
27.8
|
%
|
|
|
11.3
|
%
|
|
|
16.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
0.1
|
|
|
|
1.7
|
|
|
|
1.8
|
|
|
|
1.8
|
|
|
|
0.5
|
|
|
|
|
|
|
|
1.3
|
|
|
|
—
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.5
|
|
|
|
0.5
|
|
|
|
0.5
|
|
|
|
0.1
|
|
|
|
|
|
|
|
0.4
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
2.4
|
|
|
|
—
|
|
|
|
2.4
|
|
|
|
2.4
|
|
|
|
0.6
|
|
|
|
|
|
|
|
1.8
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
78.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related
costs
|
|
|
7.4
|
|
|
|
0.5
|
|
|
|
7.9
|
|
|
|
7.9
|
|
|
|
1.9
|
|
|
|
|
|
|
|
6.0
|
|
|
|
0.01
|
|
Municipal water break
costs
|
|
|
0.6
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.4
|
|
|
|
—
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
932.8
|
|
|
$
|
291.2
|
|
|
$
|
562.8
|
|
|
$
|
468.6
|
|
|
$
|
125.8
|
|
|
|
24.3
|
%
|
|
$
|
391.8
|
|
|
$
|
0.81
|
|
% of Net
Sales
|
|
|
28.2
|
%
|
|
|
8.8
|
%
|
|
|
17.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
Q2 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
|
|
$
|
1,669.7
|
|
|
$
|
732.2
|
|
|
$
|
937.5
|
|
|
$
|
717.5
|
|
|
$
|
201.2
|
|
|
|
24.9
|
%
|
|
$
|
605.9
|
|
|
$
|
1.26
|
|
% of Net
Sales
|
|
|
27.3
|
%
|
|
|
12.0
|
%
|
|
|
15.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
7.1
|
|
|
|
20.8
|
|
|
|
27.9
|
|
|
|
27.9
|
|
|
|
7.1
|
|
|
|
|
|
|
|
20.8
|
|
|
|
0.04
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
|
|
|
|
0.2
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(16.4)
|
|
|
|
—
|
|
|
|
(16.4)
|
|
|
|
(16.4)
|
|
|
|
(4.2)
|
|
|
|
|
|
|
|
(12.2)
|
|
|
|
(0.03)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
131.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related cost
(benefit)
|
|
|
3.1
|
|
|
|
(5.9)
|
|
|
|
(2.8)
|
|
|
|
(2.8)
|
|
|
|
(0.7)
|
|
|
|
|
|
|
|
(2.1)
|
|
|
|
—
|
|
Impairment of business
held for sale
|
|
|
—
|
|
|
|
34.2
|
|
|
|
34.2
|
|
|
|
34.2
|
|
|
|
(0.1)
|
|
|
|
|
|
|
|
34.3
|
|
|
|
0.07
|
|
Legal
matters
|
|
|
—
|
|
|
|
14.0
|
|
|
|
14.0
|
|
|
|
14.0
|
|
|
|
3.6
|
|
|
|
|
|
|
|
10.4
|
|
|
|
0.02
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
1,663.5
|
|
|
$
|
537.7
|
|
|
$
|
994.6
|
|
|
$
|
774.6
|
|
|
$
|
206.9
|
|
|
|
23.9
|
%
|
|
$
|
657.3
|
|
|
$
|
1.37
|
|
% of Net
Sales
|
|
|
27.2
|
%
|
|
|
8.8
|
%
|
|
|
16.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales change - reported
|
|
90
bps
|
|
|
(594)
bps
|
|
|
|
684
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales change - adjusted
|
|
59
bps
|
|
|
(11)
bps
|
|
|
82
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change -
reported
|
|
|
1.7
|
%
|
|
|
(34.3)
|
%
|
|
|
77.5
|
%
|
|
|
109.1
|
%
|
|
|
47.0
|
%
|
|
|
|
|
|
|
99.1
|
%
|
|
|
100.0
|
%
|
Year-over-year
change - adjusted
|
|
|
0.5
|
%
|
|
|
(2.9)
|
%
|
|
|
3.5
|
%
|
|
|
(0.1)
|
%
|
|
|
(0.2)
|
%
|
|
|
|
|
|
|
(1.4)
|
%
|
|
|
(0.7)
|
%
|
Q2 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
|
|
$
|
1,642.6
|
|
|
$
|
1,114.3
|
|
|
$
|
528.3
|
|
|
$
|
343.1
|
|
|
$
|
136.9
|
|
|
|
31.0
|
%
|
|
$
|
304.4
|
|
|
$
|
0.63
|
|
% of Net
Sales
|
|
|
26.4
|
%
|
|
|
17.9
|
%
|
|
|
8.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
0.3
|
|
|
|
6.4
|
|
|
|
6.7
|
|
|
|
6.7
|
|
|
|
1.7
|
|
|
|
|
|
|
|
5.0
|
|
|
|
0.01
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.1
|
|
|
|
|
|
|
|
0.5
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
1.9
|
|
|
|
—
|
|
|
|
1.9
|
|
|
|
1.9
|
|
|
|
0.5
|
|
|
|
|
|
|
|
1.4
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
140.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related
costs
|
|
|
7.4
|
|
|
|
0.5
|
|
|
|
7.9
|
|
|
|
7.9
|
|
|
|
1.9
|
|
|
|
|
|
|
|
6.0
|
|
|
|
0.01
|
|
Municipal water break
costs
|
|
|
3.2
|
|
|
|
—
|
|
|
|
3.2
|
|
|
|
3.2
|
|
|
|
0.8
|
|
|
|
|
|
|
|
2.4
|
|
|
|
—
|
|
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
|
|
$
|
1,655.4
|
|
|
$
|
553.7
|
|
|
$
|
961.0
|
|
|
$
|
775.8
|
|
|
$
|
207.4
|
|
|
|
23.7
|
%
|
|
$
|
666.6
|
|
|
$
|
1.38
|
|
% of Net
Sales
|
|
|
26.6
|
%
|
|
|
8.9
|
%
|
|
|
15.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
|
|
November 26,
2023
|
|
|
November 27,
2022
|
|
|
%
Change
|
|
Net cash flows from
operating activities
|
|
$
|
854.6
|
|
|
$
|
297.8
|
|
|
|
187.0
|
%
|
Additions to property,
plant and equipment
|
|
|
(214.0)
|
|
|
|
(188.4)
|
|
|
|
13.6
|
%
|
Free cash
flow
|
|
$
|
640.6
|
|
|
$
|
109.4
|
|
|
|
485.6
|
%
|
|
|
Q2
FY24
|
|
|
Q2
FY23
|
|
Notes
payable
|
|
$
|
559.0
|
|
|
$
|
363.1
|
|
Current installments of
long-term debt
|
|
|
1,017.3
|
|
|
|
954.3
|
|
Senior long-term debt,
excluding current installments
|
|
|
7,493.3
|
|
|
|
8,081.8
|
|
Total
Debt
|
|
$
|
9,069.6
|
|
|
$
|
9,399.2
|
|
Less: Cash
|
|
|
61.5
|
|
|
|
39.0
|
|
Net
Debt
|
|
$
|
9,008.1
|
|
|
$
|
9,360.2
|
|
|
|
Q2
FY24
|
|
Net
Debt1
|
|
$
|
9,008.1
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
985.1
|
|
Add Back: Income tax
expense
|
|
|
283.0
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.5)
|
|
Interest expense,
net
|
|
|
431.5
|
|
Depreciation
|
|
|
326.2
|
|
Amortization
|
|
|
54.1
|
|
Earnings before
interest, taxes, depreciation, and amortization
(EBITDA)
|
|
$
|
2,079.4
|
|
Restructuring
plans2
|
|
|
27.4
|
|
Acquisitions and
divestitures
|
|
|
8.0
|
|
Corporate hedging
derivative losses (gains)
|
|
|
18.8
|
|
Goodwill and brand
impairment charges3
|
|
|
343.6
|
|
Legal
matters
|
|
|
17.8
|
|
Fire related
costs
|
|
|
2.7
|
|
Municipal water break
costs
|
|
|
0.3
|
|
Third-party vendor
cybersecurity incident
|
|
|
4.4
|
|
Impairment of business
held for sale
|
|
|
34.2
|
|
Adjusted
EBITDA
|
|
$
|
2,536.6
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA4
|
|
|
3.55
|
|
|
1 As of
November 26, 2023.
|
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
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
|
|
Q2
FY24
|
|
|
Q2
FY23
|
|
|
%
Change
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
286.2
|
|
|
$
|
381.9
|
|
|
|
(25.1)
|
%
|
Add Back: Income tax
expense
|
|
|
102.9
|
|
|
|
122.5
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
|
|
Interest expense,
net
|
|
|
113.3
|
|
|
|
100.3
|
|
|
|
|
|
Depreciation
|
|
|
86.0
|
|
|
|
77.8
|
|
|
|
|
|
Amortization
|
|
|
13.3
|
|
|
|
14.7
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
601.6
|
|
|
$
|
697.1
|
|
|
|
(13.7)
|
%
|
Restructuring plans
1
|
|
|
0.8
|
|
|
|
1.8
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.5
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
11.2
|
|
|
|
2.4
|
|
|
|
|
|
Fire related cost
(benefit)
|
|
|
(1.1)
|
|
|
|
7.9
|
|
|
|
|
|
Municipal water break
costs
|
|
|
—
|
|
|
|
0.6
|
|
|
|
|
|
Impairment of business
held for sale
|
|
|
34.2
|
|
|
|
—
|
|
|
|
|
|
Legal
matters
|
|
|
14.0
|
|
|
|
—
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
660.7
|
|
|
$
|
710.3
|
|
|
|
(7.0)
|
%
|
|
|
|
|
Q2 FY24
YTD
|
|
|
Q2 FY23
YTD
|
|
|
%
Change
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
605.9
|
|
|
$
|
304.4
|
|
|
|
99.1
|
%
|
Add Back: Income tax
expense
|
|
|
201.2
|
|
|
|
136.9
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
|
|
Interest expense,
net
|
|
|
219.3
|
|
|
|
197.4
|
|
|
|
|
|
Depreciation
|
|
|
169.1
|
|
|
|
156.0
|
|
|
|
|
|
Amortization
|
|
|
26.8
|
|
|
|
29.5
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
1,222.2
|
|
|
$
|
824.1
|
|
|
|
48.3
|
%
|
Restructuring plans
1
|
|
|
21.8
|
|
|
|
6.7
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
0.2
|
|
|
|
0.6
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(16.4)
|
|
|
|
1.9
|
|
|
|
|
|
Fire related cost
(benefit)
|
|
|
(2.8)
|
|
|
|
7.9
|
|
|
|
|
|
Municipal water break
costs
|
|
|
—
|
|
|
|
3.2
|
|
|
|
|
|
Impairment of
businesses held for sale
|
|
|
34.2
|
|
|
|
26.7
|
|
|
|
|
|
Goodwill and brand
impairment charges
|
|
|
—
|
|
|
|
385.7
|
|
|
|
|
|
Legal
matters
|
|
|
14.0
|
|
|
|
—
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
1,273.2
|
|
|
$
|
1,256.8
|
|
|
|
1.3
|
%
|
|
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
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multimedia:https://www.prnewswire.com/news-releases/conagra-brands-reports-second-quarter-results-302025807.html
SOURCE Conagra Brands, Inc.