Conagra Brands Reports Fourth Quarter Results
Conagra Brands (NYSE: CAG) reported Q4 and full fiscal year 2025 results, showing challenging performance metrics. Q4 reported net sales decreased 4.3% to $2.8 billion, with organic net sales down 3.5%. Q4 adjusted EPS fell 8.2% to $0.56.
For fiscal 2025, the company saw reported net sales decrease 3.6% to $11.6 billion, while adjusted EPS declined 13.9% to $2.30. The company faced headwinds from elevated inflation, foreign exchange challenges, and supply constraints.
Looking ahead to fiscal 2026, Conagra projects organic net sales growth between -1% and +1%, adjusted operating margin of 11.0-11.5%, and adjusted EPS of $1.70-$1.85. The company expects continued cost inflation of approximately 7%, including a 3% impact from tariffs.
Conagra Brands (NYSE: CAG) ha comunicato i risultati del quarto trimestre e dell'intero anno fiscale 2025, evidenziando metriche di performance sfidanti. Le vendite nette riportate nel quarto trimestre sono diminuite del 4,3% a 2,8 miliardi di dollari, con una riduzione organica delle vendite nette del 3,5%. L'EPS rettificato del quarto trimestre è calato dell'8,2%, attestandosi a 0,56 dollari.
Per l'anno fiscale 2025, l'azienda ha registrato una diminuzione delle vendite nette riportate del 3,6% a 11,6 miliardi di dollari, mentre l'EPS rettificato è sceso del 13,9% a 2,30 dollari. La società ha dovuto affrontare difficoltà dovute a un'inflazione elevata, sfide legate ai tassi di cambio e vincoli nella catena di approvvigionamento.
Guardando al 2026 fiscale, Conagra prevede una crescita organica delle vendite nette compresa tra -1% e +1%, un margine operativo rettificato tra l'11,0% e l'11,5% e un EPS rettificato tra 1,70 e 1,85 dollari. L'azienda si aspetta un'inflazione dei costi continua di circa il 7%, inclusa una componente del 3% dovuta ai dazi.
Conagra Brands (NYSE: CAG) informó sus resultados del cuarto trimestre y del año fiscal completo 2025, mostrando métricas de desempeño desafiantes. Las ventas netas reportadas en el cuarto trimestre disminuyeron un 4.3% a 2.8 mil millones de dólares, con una caída orgánica de las ventas netas del 3.5%. Las ganancias ajustadas por acción (EPS) del cuarto trimestre bajaron un 8.2% a 0.56 dólares.
Para el año fiscal 2025, la compañía registró una disminución en las ventas netas reportadas del 3.6% a 11.6 mil millones de dólares, mientras que el EPS ajustado cayó un 13.9% hasta 2.30 dólares. La empresa enfrentó obstáculos debido a una inflación elevada, desafíos en el tipo de cambio y restricciones en la cadena de suministro.
De cara al año fiscal 2026, Conagra proyecta un crecimiento orgánico de las ventas netas entre -1% y +1%, un margen operativo ajustado de 11.0-11.5% y un EPS ajustado de 1.70 a 1.85 dólares. La compañía espera una inflación continua de costos de aproximadamente el 7%, incluyendo un impacto del 3% por aranceles.
Conagra Brands (NYSE: CAG)� 2025 회계연도 4분기 � 전체 연도 실적� 발표하며 어려� 성과 지표를 보였습니�. 4분기 보고� 순매출은 4.3% 감소� 28� 달러였으며, 유기� 순매출은 3.5% 감소했습니다. 4분기 조정 주당순이�(EPS)은 8.2% 하락� 0.56달러� 기록했습니다.
2025 회계연도 전체로는 보고� 순매출이 3.6% 감소� 116� 달러였�, 조정 EPS� 13.9% 감소� 2.30달러였습니�. 회사� 높은 인플레이�, 환율 변� 문제, 공급 제약 � 여러 어려움� 직면했습니다.
2026 회계연도� 전망하며, Conagra� 유기� 순매� 성장률을 -1%에서 +1% 사이� 예상하고 있으�, 조정 영업이익률은 11.0~11.5%, 조정 EPS� 1.70~1.85달러� 전망합니�. 회사� � 7%� 지속적� 비용 인플레이션을 예상하며, � � 3%� 관� 영향입니�.
Conagra Brands (NYSE : CAG) a publié ses résultats du quatrième trimestre et de l'exercice fiscal complet 2025, montrant des indicateurs de performance difficiles. Les ventes nettes déclarées pour le quatrième trimestre ont diminué de 4,3 % à 2,8 milliards de dollars, avec une baisse organique des ventes nettes de 3,5 %. Le BPA ajusté du quatrième trimestre a chuté de 8,2 % pour s'établir à 0,56 $.
Pour l'exercice 2025, la société a vu ses ventes nettes déclarées diminuer de 3,6 % à 11,6 milliards de dollars, tandis que le BPA ajusté a baissé de 13,9 % pour atteindre 2,30 $. L'entreprise a dû faire face à des vents contraires liés à une inflation élevée, des défis liés aux taux de change et des contraintes d'approvisionnement.
Pour l'exercice 2026, Conagra prévoit une croissance organique des ventes nettes comprise entre -1 % et +1 %, une marge opérationnelle ajustée de 11,0 à 11,5 % et un BPA ajusté entre 1,70 $ et 1,85 $. La société s'attend à une inflation continue des coûts d'environ 7 %, dont un impact de 3 % lié aux tarifs douaniers.
Conagra Brands (NYSE: CAG) meldete die Ergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2025 und zeigte herausfordernde Leistungskennzahlen. Der gemeldete Nettoumsatz im vierten Quartal sank um 4,3% auf 2,8 Milliarden US-Dollar, wobei der organische Nettoumsatz um 3,5% zurückging. Das bereinigte Ergebnis je Aktie (EPS) im vierten Quartal fiel um 8,2% auf 0,56 US-Dollar.
Für das Geschäftsjahr 2025 verzeichnete das Unternehmen einen Rückgang des gemeldeten Nettoumsatzes um 3,6% auf 11,6 Milliarden US-Dollar, während das bereinigte EPS um 13,9% auf 2,30 US-Dollar sank. Das Unternehmen sah sich Gegenwinden durch hohe Inflation, Herausforderungen bei Wechselkursen und Lieferengpässe gegenüber.
Mit Blick auf das Geschäftsjahr 2026 prognostiziert Conagra ein organisches Nettoumsatzwachstum zwischen -1% und +1%, eine bereinigte operative Marge von 11,0-11,5% sowie ein bereinigtes EPS von 1,70 bis 1,85 US-Dollar. Das Unternehmen erwartet weiterhin eine Kosteninflation von etwa 7%, davon 3% durch Zölle.
- Net debt reduced by 4.4% to $8.0 billion versus prior year
- Generated strong free cash flow of $1.3 billion in fiscal 2025
- Maintained quarterly dividend of $0.35 per share
- Gained volume share in key categories including frozen desserts and microwave popcorn
- International segment adjusted operating profit increased 22.7% to $35 million
- Q4 organic net sales decreased 3.5% with volume down 2.5%
- Q4 adjusted gross margin decreased 184 basis points to 25.8%
- Fiscal 2026 guidance shows adjusted EPS declining to $1.70-$1.85 from $2.30
- Expects elevated 7% cost inflation in fiscal 2026
- Operating margin expected to decline to 11.0-11.5% in fiscal 2026
Insights
Conagra reports declining sales, profits, and provides weak 2026 guidance amid persistent inflation and supply challenges.
Conagra Brands reported a challenging Q4 with organic net sales declining 3.5% and adjusted EPS falling 8.2% to $0.56. The sales decline resulted from both reduced volume (-2.5%) and negative price/mix (-1.0%), indicating both pricing and demand challenges. The company's adjusted operating margin contracted significantly to 13.8% from 15.6% in the prior year.
For the full fiscal year 2025, performance was even more concerning with organic sales down 2.9% and adjusted EPS declining 13.9% to $2.30. Gross margin compression was substantial, with adjusted gross margin falling 194 basis points to 25.7%, as inflation outpaced productivity improvements.
The most troubling aspect is Conagra's fiscal 2026 guidance, which signals continued deterioration. The company projects organic sales between -1% and +1%, with adjusted operating margin declining sharply to 11.0-11.5% (down from 14.1% in fiscal 2025). Most concerning is the adjusted EPS guidance of $1.70-$1.85, representing a 24-26% decline from fiscal 2025's $2.30.
This substantial profit decline is largely attributed to persistent inflation, with Conagra expecting 7% cost inflation in fiscal 2026 - including 4% core inflation plus 3% from tariff impacts. The company plans mitigating actions through cost savings, sourcing alternatives, and pricing, but clearly expects these measures to fall short of offsetting inflationary pressures.
While Conagra maintained its $1.40 annual dividend (currently yielding about 5%), the projected EPS decline raises questions about dividend sustainability, as the payout ratio would increase to roughly 80% of earnings under the new guidance.
The company did achieve $1.3 billion in free cash flow for fiscal 2025 and reduced net debt by 4.4% to $8 billion, bringing leverage to 3.6x. However, for fiscal 2026, management expects the leverage ratio to deteriorate to approximately 3.85x as earnings decline.
Segment performance was universally weak, with Grocery & Snacks organic sales down 3.3%, Refrigerated & Frozen down 4.4%, and Foodservice down 4.3%. Only the smaller International segment showed slight organic growth of 0.8%.
Highlights
- Fourth quarter:
- Reported net sales decreased
4.3% ; organic net sales decreased3.5% - Reported operating margin was
11.5% ; adjusted operating margin was13.8% - Reported diluted earnings per share for the fourth quarter was
; adjusted earnings per share (EPS) decreased$0.53 8.2% to$0.56
- Reported net sales decreased
- Full year fiscal 2025:
- Reported net sales decreased
3.6% ; organic net sales decreased2.9% - Reported operating margin increased 467 basis points to
11.8% ; adjusted operating margin decreased 188 basis points to14.1% - Reported diluted EPS for fiscal 2025 increased
233.3% to ; adjusted EPS decreased$2.40 13.9% to$2.30
- Reported net sales decreased
- The company is providing fiscal 2026 guidance to reflect:
- Organic net sales growth of (1)% to
1% compared to fiscal 2025 - Adjusted operating margin between ~
11.0% and ~11.5% - Adjusted EPS between
and$1.70 $1.85
- Organic net sales growth of (1)% to
CEO Perspective
Sean Connolly, president and chief executive officer of Conagra Brands, commented, "I'm proud of the Conagra team for their hard work throughout fiscal 2025 as we navigated an environment that proved to be more challenging than we anticipated. We entered the year focused on returning volume to growth and delivered consistent progress through the first half. This resulted in a return to absolute volume growth in domestic retail in the second quarter, best-in-class market share performance, and first half EPS in line with our plan. While the second half was impacted by higher than expected inflation, foreign exchange headwinds, and supply constraints, our long-term value creation strategy remains unchanged."
He continued, "In fiscal 2026, we expect elevated inflation and macroeconomic uncertainty to persist but remain focused on proactively managing the business by investing in our high-potential frozen and snacks domains, prioritizing volume strength, and further enhancing supply chain resiliency while continuing disciplined cost management and focus on cash flow. We believe that these actions will enable Conagra to deliver sustainable growth and stronger margins over time, creating meaningful long-term value for our stakeholders."
Total CompanyFourth Quarter Results
In the quarter, reported net sales decreased
- a
3.5% decrease in organic net sales; - a
0.6% decrease from the unfavorable impact of foreign exchange; and - a
0.2% decrease from the unfavorable impact of M&A.
The
Gross profit decreased
Selling, general, and administrative expense (SG&A), which includes advertising and promotional expense (A&P), decreased
Net interest expense was
The average diluted share count in the quarter was480 million shares.
In the quarter, net income attributable to Conagra Brands was
Adjusted EBITDA, which includes equity method investment earnings and pension and postretirement non-service income, was
Total Company Fiscal 2025Results
For the full fiscal year, net salesdecreased
- a
2.9% decrease in organic net sales; - a
0.4% decrease from the unfavorable impact of foreign exchange; and - a
0.3% decrease from the unfavorable impact of M&A.
For the full fiscal year, gross profitdecreased
For the full fiscal year, EPSincreased
Grocery & Snacks Segment Fourth Quarter Results
Net sales for the Grocery & Snacks segment decreased
- a
3.3% decrease in organic net sales; and - a
1.2% increase from the favorable impact of M&A.
The decrease in organic net sales was driven by a price/mix decrease of
Operating profit for the segmentincreased
Refrigerated & Frozen Segment Fourth Quarter Results
Reported and organic net sales for the Refrigerated & Frozen segmentdecreased
Operating profit for the segment was
International Segment Fourth Quarter Results
Net sales for the International segmentdecreased
- a
7.3% decrease from the unfavorable impact of M&A; - a
7.3% decrease from the unfavorable impact of foreign exchange; and - a
0.8% increase in organic net sales.
On an organic net sales basis, price/mixincreased
Operating profit for the segmentincreased
Foodservice Segment Fourth Quarter Results
Net sales for the Foodservice segment decreased
- a
4.3% decrease in organic net sales; and - a
0.3% increase from the favorable impact of M&A.
The decrease in organic net sales was driven by a price/mix increase of
Operating profit and adjusted operating profitfor the segmentdecreased
Other Fourth Quarter Items
Corporate expensesdecreased
Pension and post-retirement non-service income was
In the quarter, equity method investment earningsincreased
In the quarter, the effective tax rate was
In the quarter, the company paid a dividend of
Cash Flow and Debt Update
For the full fiscal year, the company generated
The company ended the year with net debt of
Dividend Update
The company announced on July 9, 2025 that its Board of Directors had approved a quarterly dividend payment of
Outlook
The company is providing the following guidance for fiscal 2026:
- Organic net sales growth of (1)% to
1% compared to fiscal 2025 - Adjusted operating margin between ~
11.0% and ~11.5% - Adjusted EPS between
and$1.70 $1.85 - Interest expense of approximately
$400M M - Equity earnings contribution of approximately
$200M M - Adjusted effective tax rate of approximately
23% - Pension income of approximately
$25M M - Capital expenditures of approximately
$450M M - Free cash flow conversion of ~
90% - Net leverage ratio of approximately 3.85x
- The 53rd week is expected to add
to adjusted EPS$0.05
The company also expects cost of goods sold inflation to continue at an elevated level into fiscal 2026. Guidance anticipates core inflation to be approximately
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. For the same reasons, the company is unable to address the probable significance of these items, which could be material to future results. Please see the end of this release for more information.
Items Affecting Comparability of EPS
The following are included in the
- Approximately
per diluted share of net expense related to brand impairment charges$0.09 - Approximately
per diluted share of net benefit related to a valuation allowance adjustment$0.06 - Approximately
per diluted share of net benefit related to anticipated legal matter recoveries$0.02 - Approximately
per diluted share of net expense related to restructuring plans$0.02 - Approximately
per diluted share of net benefit related to a pension settlement gain$0.02 - Approximately
per diluted share of net expense related to corporate hedging derivative losses$0.01 - Approximately
per diluted share of net expense related to Ardent Mills restructuring activities$0.01
The following are included in the
- Approximately
per diluted share of net expense related to goodwill and brand impairment charges$1.77 - Approximately
per diluted share of net expense related to restructuring plans$0.06 - Approximately
per diluted share of net benefit related to a pension valuation adjustment$0.02 - Approximately
per diluted share of net benefit related to corporate hedging derivative gains$0.01 - Approximately
per diluted share of net benefit related to fire related insurance recoveries$0.01
Please note that certain prior year amounts have been reclassified to conform with current year presentation.
Discussion of Results and Outlook
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 to discuss the company's results and outlook. The live audio webcast Q&A conference call, pre-recorded remarks, transcript of the pre-recorded remarks, and presentation slides will be available on under Events & Presentations. The Q&A conference call may be accessed by dialing 1-877-883-0383 for participants in the
About Conagra Brands
Conagra Brands, Inc. (NYSE: CAG), is one of
Note on Forward-Looking Statements
The information contained in this document includes forward-looking statements within the meaning of the federal securities laws. Examples of forward-looking statements include statements regarding our expected future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical facts. You can identify forward-looking statements by their use of forward-looking words, such as "may", "will", "anticipate", "expect", "believe", "estimate", "intend", "plan", "should", "seek", or comparable terms.
Readers of this document should understand that these forward-looking statements are not guarantees of performance or results. Forward-looking statements provide our current expectations and beliefs concerning future events and are subject to risks, uncertainties, and factors relating to our business and operations, all of which are difficult to predict and could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements. These risks, uncertainties, and factors include, among other things: risks associated with general economic and industry conditions, including inflation, reduced consumer confidence and spending, declining benefits or increased limitations under government food assistance programs for consumers, rising unemployment, recessions, increased energy costs, supply chain challenges, increased tariffs and taxes, labor shortages, and geopolitical conflicts; risks related to the availability and prices of commodities and other supply chain resources, including raw materials, packaging, energy, and transportation, weather conditions, health pandemics or outbreaks of disease, actual or threatened hostilities or war, or other geopolitical uncertainty; disruptions or inefficiencies in our supply chain and/or operations; risks related to the effectiveness of our hedging activities and ability to respond to volatility in commodities; 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 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 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 respond to changing consumer preferences including health and wellness perceptions 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 contract 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; 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; risks of increased pension, labor or people-related expenses; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; risks 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; the amount and timing of future stock repurchases; and other risks described in our reports filed from time to time with the
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. We believe these non-GAAP financial measures provide useful supplemental information to investors to facilitate year-over-year comparisons by removing non-recurring items and other items impacting comparability such as the impacts of foreign exchange, divested businesses and acquisitions, as well as the impact of any 53rd week, as noted in more detail for each measure below. We also believe the below financial measures are used by investors and analysts 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 to provide a more transparent view of year-over-year comparability. All references to changes in volume and price/mix throughout this release are on an organic net sales basis.
Free cash flow is net cash from operating activities less additions to property, plant and equipment. Free cash flow conversion is free cash flow divided by adjusted net income attributable to Conagra Brands, Inc. We use this non-GAAP financial measure to provide additional information about the amount of cash available for debt repayment, dividend distributions, acquisition opportunities, and share repurchases after all of the company's business needs and obligations are met.
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. We exclude these items that we believe affect comparability of underlying results from period to period and may obscure trends in our underlying profitability.
During the third quarter of fiscal 2025, we revised our calculation methodology for Adjusted SG&A to include advertising and promotional (A&P) expense. Prior-year periods have been recast to reflect this new calculation methodology. Please refer to the tables in this press release for a reconciliation of this non-GAAP financial measures using the updated calculation method to the most directly comparable financial measure calculated in accordance with
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. For adjusted EBITDA, we exclude items resulting from infrequently occurring events or items that we believe significantly affect the year-to-year assessment of the company's operating results.
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). Since our hedging contracts are generally for future periods, this adjustment facilitates year-over-year comparisons of cost of goods sold, matching the derivative gains and losses with the underlying economic exposure being hedged for the period.
Note on Forward-Looking Non-GAAP Financial Measures
Our fiscal 2026 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 Operations | |||||||||
(in millions) | |||||||||
(unaudited) | |||||||||
FOURTH QUARTER | |||||||||
Thirteen Weeks Ended | Thirteen Weeks Ended | ||||||||
May 25, 2025 | May 26, 2024 | Percent Change | |||||||
Net sales | $ | 2,781.8 | $ | 2,905.9 | (4.3)% | ||||
Cost of goods sold | 2,074.6 | 2,101.0 | (1.3)% | ||||||
Gross profit | $ | 707.2 | $ | 804.9 | (12.1)% | ||||
Selling, general and administrative expenses | 333.0 | 402.1 | (17.2)% | ||||||
Goodwill impairment charges | � | 526.5 | (100.0)% | ||||||
Other intangible asset impairment charges | 53.2 | 430.2 | (87.6)% | ||||||
Loss on divestitures | � | 2.2 | (100.0)% | ||||||
Operating profit (loss) | $ | 321.0 | $ | (556.1) | N/A | ||||
Pension and postretirement non-service income | 16.6 | 12.4 | 33.7% | ||||||
Interest expense, net | 101.8 | 104.7 | (2.8)% | ||||||
Equity method investment earnings | 57.4 | 46.6 | 23.4% | ||||||
Income (loss) before income taxes | $ | 293.2 | $ | (601.8) | N/A | ||||
Income tax (benefit) expense | 37.2 | (34.6) | N/A | ||||||
Net income (loss) | $ | 256.0 | $ | (567.2) | N/A | ||||
Less: Net income attributable to noncontrolling interests | � | 0.1 | (100.0)% | ||||||
Net income (loss) attributable to Conagra Brands, Inc. | $ | 256.0 | $ | (567.3) | N/A | ||||
Earnings (loss) per share - basic | |||||||||
Net income (loss) attributable to Conagra Brands, Inc. | $ | 0.54 | $ | (1.18) | N/A | ||||
Weighted average shares outstanding | 478.2 | 478.8 | (0.1)% | ||||||
Earnings (loss) per share - diluted | |||||||||
Net income (loss) attributable to Conagra Brands, Inc. | $ | 0.53 | $ | (1.18) | N/A | ||||
Weighted average share and share equivalents outstanding1 | 479.5 | 478.8 | 0.1% |
1In Q4 FY24, we reported a GAAP net loss. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation, as their inclusion would have an anti-dilutive effect. The weighted average diluted share count was 480 million shares. |
Conagra Brands, Inc. | |||||||||
Consolidated Statements of Earnings | |||||||||
(in millions) | |||||||||
(unaudited) | |||||||||
FISCAL YEAR | |||||||||
Fifty- | Fifty- | ||||||||
May 25, 2025 | May 26, 2024 | Percent Change | |||||||
Net sales | $ | 11,612.8 | $ | 12,050.9 | (3.6)% | ||||
Cost of goods sold | 8,609.3 | 8,717.5 | (1.2)% | ||||||
Gross profit | $ | 3,003.5 | $ | 3,333.4 | (9.9)% | ||||
Selling, general and administrative expenses | 1,537.3 | 1,487.5 | 3.3% | ||||||
Goodwill impairment charges | � | 526.5 | (100.0)% | ||||||
Other intangible asset impairment charges | 72.1 | 430.2 | (83.3)% | ||||||
Loss on divestitures | 29.5 | 36.4 | (18.9)% | ||||||
Operating profit | $ | 1,364.6 | $ | 852.8 | 60.0% | ||||
Pension and postretirement non-service income | 25.9 | 10.3 | 151.1% | ||||||
Interest expense, net | 416.7 | 430.5 | (3.2)% | ||||||
Equity method investment earnings | 182.4 | 177.6 | 2.7% | ||||||
Income before income taxes | $ | 1,156.2 | $ | 610.2 | 89.5% | ||||
Income tax expense | 3.7 | 262.5 | (98.6)% | ||||||
Net income | $ | 1,152.5 | $ | 347.7 | 231.4% | ||||
Less: Net income attributable to noncontrolling interests | 0.1 | 0.5 | (88.5)% | ||||||
Net income attributable to Conagra Brands, Inc. | $ | 1,152.4 | $ | 347.2 | 231.9% | ||||
Earnings per share - basic | |||||||||
Net income attributable to Conagra Brands, Inc. | $ | 2.41 | $ | 0.73 | 230.1% | ||||
Weighted average shares outstanding | 478.3 | 478.6 | (0.1)% | ||||||
Earnings per share - diluted | |||||||||
Net income attributable to Conagra Brands, Inc. | $ | 2.40 | $ | 0.72 | 233.3% | ||||
Weighted average share and share equivalents outstanding | 479.7 | 480.0 | (0.1)% |
Conagra Brands, Inc. | ||||||||||
Consolidated Balance Sheets | ||||||||||
(in millions) | ||||||||||
(unaudited) | ||||||||||
May 25, 2025 | May 26, 2024 | |||||||||
ASSETS | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 68.0 | $ | 77.7 | ||||||
Receivables, less allowance for doubtful accounts of | 770.0 | 871.8 | ||||||||
Inventories | 2,048.3 | 1,981.5 | ||||||||
Prepaids and other current assets | 90.6 | 85.0 | ||||||||
Current assets held for sale | 94.1 | 133.5 | ||||||||
Total current assets | 3,071.0 | 3,149.5 | ||||||||
Property, plant and equipment | 6,574.1 | 6,314.3 | ||||||||
Less: Accumulated depreciation | (3,738.2) | (3,493.3) | ||||||||
Property, plant and equipment, net | 2,835.9 | 2,821.0 | ||||||||
Goodwill | 10,501.9 | 10,325.9 | ||||||||
Brands, trademarks and other intangibles, net | 2,421.1 | 2,484.8 | ||||||||
Other assets | 1,571.0 | 1,430.1 | ||||||||
Noncurrent assets held for sale | 533.0 | 651.0 | ||||||||
$ | 20,933.9 | $ | 20,862.3 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
Current liabilities | ||||||||||
Notes payable | $ | 804.7 | $ | 928.4 | ||||||
Current installments of long-term debt | 1,028.8 | 20.3 | ||||||||
Accounts and other payables | 1,590.1 | 1,493.7 | ||||||||
Accrued payroll | 146.0 | 193.3 | ||||||||
Other accrued liabilities | 744.7 | 588.6 | ||||||||
Current liabilities held for sale | 2.7 | 17.5 | ||||||||
Total current liabilities | 4,317.0 | 3,241.8 | ||||||||
Senior long-term debt, excluding current installments | 6,234.1 | 7,492.6 | ||||||||
Deferred income taxes | 810.3 | 1,024.2 | ||||||||
Other noncurrent liabilities | 639.6 | 587.6 | ||||||||
Noncurrent liabilities held for sale | 0.2 | 4.8 | ||||||||
Total liabilities | 12,001.2 | 12,351.0 | ||||||||
Common stockholders' equity | ||||||||||
Common stock of | 2,921.2 | 2,921.2 | ||||||||
Additional paid-in capital | 2,347.2 | 2,363.2 | ||||||||
Retained earnings | 6,759.1 | 6,276.3 | ||||||||
Accumulated other comprehensive income (loss) | 16.3 | (35.5) | ||||||||
Less treasury stock, at cost, common shares 106,846,304 and 106,050,133 | (3,111.1) | (3,084.8) | ||||||||
Total Conagra Brands common stockholders' equity | 8,932.7 | 8,440.4 | ||||||||
Noncontrolling interests | � | 70.9 | ||||||||
Total stockholders' equity | 8,932.7 | 8,511.3 | ||||||||
$ | 20,933.9 | $ | 20,862.3 |
Conagra Brands, Inc. and Subsidiaries | ||||||
Consolidated Statements of Cash Flows | ||||||
(in millions) | ||||||
(unaudited) | ||||||
Fifty-TwoWeeksEnded | Fifty-TwoWeeksEnded | |||||
May 25, 2025 | May 26, 2024 | |||||
Cash flows from operating activities: | ||||||
Net income | $ | 1,152.5 | $ | 347.7 | ||
Adjustments to reconcile net income to net cash flows from operating activities: | ||||||
Depreciation and amortization | 390.2 | 400.9 | ||||
Asset impairment charges | 177.0 | 1,035.5 | ||||
Equity method investment earnings less than (in excess of) distributions | (22.1) | 74.0 | ||||
Stock-settled share-based payments expense | 41.5 | 30.8 | ||||
Contributions to pension plans | (11.9) | (12.2) | ||||
Pension benefit | (19.6) | (0.6) | ||||
Other items | 7.1 | 16.4 | ||||
Change in operating assets and liabilities excluding effects of business acquisitions | ||||||
Receivables | 173.8 | 77.2 | ||||
Inventories | (35.6) | 131.9 | ||||
Deferred income taxes and income taxes payable, net | (224.0) | (81.1) | ||||
Prepaid expenses and other current assets | (0.9) | (2.2) | ||||
Accounts and other payables | 49.6 | (22.7) | ||||
Accrued payroll | (45.9) | 29.7 | ||||
Other accrued liabilities | (0.9) | (20.0) | ||||
Litigation receivables, net of recoveries | (67.1) | (14.7) | ||||
Litigation accruals, net of payments | 128.2 | 25.0 | ||||
Net cash flows from operating activities | 1,691.9 | 2,015.6 | ||||
Cash flows from investing activities: | ||||||
Additions to property, plant and equipment | (389.3) | (388.1) | ||||
Sale of property, plant and equipment | 3.4 | 0.8 | ||||
Purchase of marketable securities | � | (10.3) | ||||
Sale of marketable securities | � | 10.3 | ||||
Purchase of businesses, net of cash acquired | (230.6) | � | ||||
Proceeds from divestitures, net of cash divested | 76.8 | � | ||||
Proceeds from insurance recoveries | � | 11.9 | ||||
Other items | (2.5) | 0.4 | ||||
Net cash flows from investing activities | (542.2) | (375.0) | ||||
Cash flows from financing activities: | ||||||
Issuances of short-term borrowings, maturities greater than 90 days | 338.0 | 466.6 | ||||
Repayment of short-term borrowings, maturities greater than 90 days | (135.3) | (185.9) | ||||
Net issuance (repayment) of other short-term borrowings, maturities less than or equal to | (328.3) | 9.9 | ||||
Issuance of long-term debt | � | 500.0 | ||||
Repayment of long-term debt | (281.3) | (1,772.6) | ||||
Debt issuance costs | � | (3.3) | ||||
Repurchase of Conagra Brands, Inc. common shares | (64.0) | � | ||||
Cash dividends paid | (669.2) | (659.3) | ||||
Exercise of stock options and issuance of other stock awards, including tax withholdings | (20.6) | (13.8) | ||||
Other items | 2.4 | 1.7 | ||||
Net cash flows from financing activities | (1,158.3) | (1,656.7) | ||||
Effect of exchange rate changes on cash and cash equivalents | (2.4) | 1.2 | ||||
Net change in cash and cash equivalents, including cash balances classified as assets held for | (11.0) | (14.9) | ||||
Less: Net change in cash balances classified as assets held for sale | (1.3) | 0.7 | ||||
Net change in cash and cash equivalents | (9.7) | (15.6) | ||||
Cash and cash equivalents at beginning of period | 77.7 | 93.3 | ||||
Cash and cash equivalents at end of period | $ | 68.0 | $ | 77.7 |
Conagra Brands, Inc. | |||||||||||||||
Reconciliation of Q4 FY25 and FY25 Organic Net Sales by Segment - YOY Change | |||||||||||||||
(in millions) | |||||||||||||||
Refrigerated & | Total Conagra | ||||||||||||||
Q4 FY25 | Grocery & Snacks | Frozen | International | Foodservice | Brands | ||||||||||
Net Sales | $ | 1,150.2 | $ | 1,121.8 | $ | 230.1 | $ | 279.7 | $ | 2,781.8 | |||||
Impact of foreign exchange | � | � | 17.8 | � | 17.8 | ||||||||||
Net sales from acquired businesses | (14.7) | � | � | (0.9) | (15.6) | ||||||||||
Organic Net Sales | $ | 1,135.5 | $ | 1,121.8 | $ | 247.9 | $ | 278.8 | $ | 2,784.0 | |||||
Year-over-year change - Net Sales | (2.1)% | (4.4)% | (13.8)% | (4.0)% | (4.3)% | ||||||||||
Impact of foreign exchange (pp) | � | � | 7.3 | � | 0.6 | ||||||||||
Net sales from acquired businesses (pp) | (1.2) | � | � | (0.3) | (0.5) | ||||||||||
Net sales from divested businesses (pp) | � | � | 7.3 | � | 0.7 | ||||||||||
Organic Net Sales | (3.3)% | (4.4)% | 0.8% | (4.3)% | (3.5)% | ||||||||||
Volume | (1.6)% | (2.1)% | (3.9)% | (7.6)% | (2.5)% | ||||||||||
Price/Mix | (1.7)% | (2.3)% | 4.7% | 3.3% | (1.0)% | ||||||||||
Refrigerated & | Total Conagra | ||||||||||||||
Q4 FY24 | Grocery & Snacks | Frozen | International | Foodservice | Brands | ||||||||||
Net Sales | $ | 1,174.7 | $ | 1,173.0 | $ | 266.8 | $ | 291.4 | $ | 2,905.9 | |||||
Net sales from divested businesses | � | � | (20.8) | � | (20.8) | ||||||||||
Organic Net Sales | $ | 1,174.7 | $ | 1,173.0 | $ | 246.0 | $ | 291.4 | $ | 2,885.1 | |||||
Refrigerated & | Total Conagra | ||||||||||||||
FY25 | Grocery & Snacks | Frozen | International | Foodservice | Brands | ||||||||||
Net Sales | $ | 4,899.3 | $ | 4,662.3 | $ | 956.5 | $ | 1,094.7 | $ | 11,612.8 | |||||
Impact of foreign exchange | � | � | 57.2 | � | 57.2 | ||||||||||
Net sales from acquired businesses | (38.0) | � | � | (2.0) | (40.0) | ||||||||||
Net sales from divested businesses | � | � | (23.6) | � | (23.6) | ||||||||||
Organic Net Sales | $ | 4,861.3 | $ | 4,662.3 | $ | 990.1 | $ | 1,092.7 | $ | 11,606.4 | |||||
Year-over-year change - Net Sales | (1.2)% | (4.2)% | (11.3)% | (4.7)% | (3.6)% | ||||||||||
Impact of foreign exchange (pp) | � | � | 5.7 | � | 0.4 | ||||||||||
Net sales from acquired businesses (pp) | (0.8) | � | � | (0.1) | (0.3) | ||||||||||
Net sales from divested businesses (pp) | � | � | 6.1 | � | 0.6 | ||||||||||
Organic Net Sales | (2.0)% | (4.2)% | 0.5% | (4.8)% | (2.9)% | ||||||||||
Volume | (1.1)% | (0.7)% | (3.4)% | (8.1)% | (1.7)% | ||||||||||
Price/Mix | (0.9)% | (3.5)% | 3.9% | 3.3% | (1.2)% | ||||||||||
Refrigerated & | Total Conagra | ||||||||||||||
FY24 | Grocery & Snacks | Frozen | International | Foodservice | Brands | ||||||||||
Net Sales | $ | 4,958.7 | $ | 4,865.5 | $ | 1,078.3 | $ | 1,148.4 | $ | 12,050.9 | |||||
Net sales from divested businesses | � | � | (93.2) | � | (93.2) | ||||||||||
Organic Net Sales | $ | 4,958.7 | $ | 4,865.5 | $ | 985.1 | $ | 1,148.4 | $ | 11,957.7 |
Conagra Brands, Inc. | |||||||||||||||||||
Reconciliation of Q4 FY25 Adj. Operating Profit by Segment - YOY Change | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Grocery & | Refrigerated & | Corporate | Total Conagra | ||||||||||||||||
Q4 FY25 | Snacks | Frozen | International | Foodservice | Expense | Brands | |||||||||||||
Operating Profit | $ | 209.5 | $ | 126.5 | $ | 35.2 | $ | 31.5 | $ | (81.7) | $ | 321.0 | |||||||
Restructuring plans | 4.9 | 2.0 | 0.1 | � | 4.0 | 11.0 | |||||||||||||
Brand impairment charges | 11.2 | 42.0 | � | � | � | 53.2 | |||||||||||||
Acquisitions and divestitures | � | � | � | � | 0.8 | 0.8 | |||||||||||||
Legal matter recoveries | � | � | � | � | (10.5) | (10.5) | |||||||||||||
Corporate hedging derivative losses (gains) | � | � | � | � | 9.1 | 9.1 | |||||||||||||
Adjusted Operating Profit | $ | 225.6 | $ | 170.5 | $ | 35.3 | $ | 31.5 | $ | (78.3) | $ | 384.6 | |||||||
Operating Profit Margin | 18.2% | 11.3% | 15.3% | 11.3% | 11.5% | ||||||||||||||
Adjusted Operating Profit Margin | 19.6% | 15.2% | 15.4% | 11.3% | 13.8% | ||||||||||||||
Year-over-year % change - Operating | 19.6% | N/A | 35.6% | (20.8)% | (2.2)% | N/A | |||||||||||||
Year-over year % change - Adjusted | (11.7)% | (10.1)% | 22.7% | (20.8)% | (6.7)% | (10.5)% | |||||||||||||
Year-over-year bps change - Operating | 330 bps | N/A | 557 bps | (238) bps | N/A | ||||||||||||||
Year-over-year bps change - Adjusted | (214) bps | (97) bps | 457 bps | (238) bps | (96) bps | ||||||||||||||
Grocery & | Refrigerated & | Corporate | Total Conagra | ||||||||||||||||
Q4 FY24 | Snacks | Frozen | International | Foodservice | Expense | Brands | |||||||||||||
Operating Profit (Loss) | $ | 175.2 | $ | (713.4) | $ | 26.1 | $ | 39.7 | $ | (83.7) | $ | (556.1) | |||||||
Restructuring plans | 2.6 | 30.5 | 0.6 | � | 3.3 | 37.0 | |||||||||||||
Goodwill and brand impairment charges | 77.6 | 879.1 | � | � | � | 956.7 | |||||||||||||
Legal matters, net of recoveries | � | � | � | � | 2.9 | 2.9 | |||||||||||||
Fire related insurance recoveries | � | (6.5) | � | � | � | (6.5) | |||||||||||||
Impairment of business held for sale | � | � | 2.2 | � | � | 2.2 | |||||||||||||
Corporate hedging derivative losses (gains) | � | � | � | � | (6.5) | (6.5) | |||||||||||||
Adjusted Operating Profit | $ | 255.4 | $ | 189.7 | $ | 28.9 | $ | 39.7 | $ | (84.0) | $ | 429.7 | |||||||
Operating Profit Margin | 14.9% | (60.8)% | 9.7% | 13.6% | (19.1)% | ||||||||||||||
Adjusted Operating Profit Margin | 21.8% | 16.2% | 10.8% | 13.6% | 14.8% |
Conagra Brands, Inc. | |||||||||||||||||||
Reconciliation of FY25 Adj. Operating Profit by Segment - YOY Change | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Grocery & | Refrigerated & | Corporate | Total Conagra | ||||||||||||||||
FY25 | Snacks | Frozen | International | Foodservice | Expense | Brands | |||||||||||||
Operating Profit | $ | 989.4 | $ | 500.8 | $ | 142.8 | $ | 131.0 | $ | (399.4) | $ | 1,364.6 | |||||||
Restructuring plans | 15.7 | 80.5 | (1.2) | � | 6.7 | 101.7 | |||||||||||||
Legal matters, net of recoveries | � | � | � | � | 88.7 | 88.7 | |||||||||||||
Fire related insurance recoveries | � | (17.0) | � | � | � | (17.0) | |||||||||||||
Consulting fees on tax matters | � | � | � | � | 2.0 | 2.0 | |||||||||||||
Loss on sale of business | � | � | 2.3 | � | � | 2.3 | |||||||||||||
Brand impairment charges | 11.9 | 60.2 | � | � | � | 72.1 | |||||||||||||
Acquisitions and divestitures | � | � | � | � | 1.1 | 1.1 | |||||||||||||
Impairment of business held for sale | � | 27.2 | � | � | � | 27.2 | |||||||||||||
Corporate hedging derivative losses (gains) | � | � | � | � | (8.2) | (8.2) | |||||||||||||
Adjusted Operating Profit | $ | 1,017.0 | $ | 651.7 | $ | 143.9 | $ | 131.0 | $ | (309.1) | $ | 1,634.5 | |||||||
Operating Profit Margin | 20.2% | 10.7% | 14.9% | 12.0% | 11.8% | ||||||||||||||
Adjusted Operating Profit Margin | 20.8% | 14.0% | 15.1% | 12.0% | 14.1% | ||||||||||||||
Year-over-year % change - Operating | (2.3)% | N/A | 45.9% | (16.7)% | 24.0% | 60.0% | |||||||||||||
Year-over year % change - Adjusted | (7.6)% | (20.1)% | (7.1)% | (13.4)% | 3.1% | (15.0)% | |||||||||||||
Year-over-year bps change - Operating | (22) bps | N/A | 586 bps | (172) bps | 467 bps | ||||||||||||||
Year-over-year bps change - Adjusted | (143) bps | (279) bps | 67 bps | (121) bps | (188) bps | ||||||||||||||
Grocery & | Refrigerated & | Corporate | Total Conagra | ||||||||||||||||
FY24 | Snacks | Frozen | International | Foodservice | Expense | Brands | |||||||||||||
Operating Profit (Loss) | $ | 1,012.4 | $ | (92.5) | $ | 97.9 | $ | 157.2 | $ | (322.2) | $ | 852.8 | |||||||
Restructuring plans | 10.3 | 32.1 | 20.8 | � | 3.4 | 66.6 | |||||||||||||
Impairment of business held for sale | � | � | 36.4 | � | � | 36.4 | |||||||||||||
Acquisitions and divestitures | � | � | � | � | 0.2 | 0.2 | |||||||||||||
Goodwill and brand impairment charges | 77.6 | 879.1 | � | � | � | 956.7 | |||||||||||||
Legal matters, net of recoveries | � | � | � | � | 34.8 | 34.8 | |||||||||||||
Fire related insurance recoveries, net | � | (2.8) | � | (5.9) | � | (8.7) | |||||||||||||
Corporate hedging derivative losses (gains) | � | � | � | � | (16.1) | (16.1) | |||||||||||||
Adjusted Operating Profit | $ | 1,100.3 | $ | 815.9 | $ | 155.1 | $ | 151.3 | $ | (299.9) | $ | 1,922.7 | |||||||
Operating Profit Margin | 20.4% | (1.9)% | 9.1% | 13.7% | 7.1% | ||||||||||||||
Adjusted Operating Profit Margin | 22.2% | 16.8% | 14.4% | 13.2% | 16.0% |
Conagra Brands, Inc. | |||||||||||||||||||||||||
Reconciliation of Q4 FY25 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, and Adj. EPS - YOY | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||
from income | |||||||||||||||||||||||||
attributable to | |||||||||||||||||||||||||
Selling, general | Net income | Conagra | |||||||||||||||||||||||
and | Income | attributable to | Brands, Inc | ||||||||||||||||||||||
administrative | Operating | before income | Income tax | Conagra | common | ||||||||||||||||||||
Q4 FY25 | Gross profit | expenses 1 | profit | taxes | expense | Income tax rate | Brands, Inc. | stockholders | |||||||||||||||||
Reported | $ | 707.2 | $ | 333.0 | $ | 321.0 | $ | 293.2 | $ | 37.2 | $ | 12.7% | $ | 256.0 | $ | 0.53 | |||||||||
% of Net Sales | 25.4% | 12.0% | 11.5% | ||||||||||||||||||||||
Restructuring plans | 1.0 | 10.0 | 11.0 | 11.0 | 2.7 | 8.3 | 0.02 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | 9.1 | � | 9.1 | 9.1 | 2.3 | 6.8 | 0.01 | ||||||||||||||||||
Legal matter recoveries | � | (10.5) | (10.5) | (10.5) | (2.6) | (7.9) | (0.02) | ||||||||||||||||||
Brand impairment charges | � | � | 53.2 | 53.2 | 12.3 | 40.9 | 0.09 | ||||||||||||||||||
Acquisitions and divestitures | � | 0.8 | 0.8 | 0.8 | 0.1 | 0.7 | � | ||||||||||||||||||
Ardent JV restructuring activities | � | � | � | 3.6 | 0.8 | 2.8 | 0.01 | ||||||||||||||||||
Valuation allowance adjustment | � | � | � | � | 27.7 | (27.7) | (0.06) | ||||||||||||||||||
Pension settlement gain | � | � | � | (13.0) | (3.2) | (9.8) | (0.02) | ||||||||||||||||||
Adjusted | $ | 717.3 | $ | 332.7 | $ | 384.6 | $ | 347.4 | $ | 77.3 | 22.3% | $ | 270.1 | $ | 0.56 | ||||||||||
% of Net Sales | 25.8% | 12.0% | 13.8% | ||||||||||||||||||||||
Year-over-year % of net sales change - reported | (228) bps | (186) bps | N/A | ||||||||||||||||||||||
Year-over-year % of net sales change - adjusted | (184) bps | (88) bps | (96) bps | ||||||||||||||||||||||
Year-over-year change - reported | (12.1)% | (17.2)% | (157.7)% | N/A | N/A | N/A | N/A | ||||||||||||||||||
Year-over-year change - adjusted | (10.7)% | (10.8)% | (10.5)% | (6.7)% | (1.8)% | (8.0)% | (8.2)% | ||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||
from income | |||||||||||||||||||||||||
attributable to | |||||||||||||||||||||||||
Selling, general | Net income (loss) | Conagra | |||||||||||||||||||||||
and | Income (loss) | Income tax | attributable to | Brands, Inc | |||||||||||||||||||||
administrative | Operating | before income | expense | Conagra | common | ||||||||||||||||||||
Q4 FY24 | Gross profit | expenses 1 | profit (loss) | taxes | (benefit) | Income tax rate | Brands, Inc. | stockholders 2 | |||||||||||||||||
Reported | $ | 804.9 | $ | 402.1 | $ | (556.1) | $ | (601.8) | $ | (34.6) | $ | 5.8% | $ | (567.3) | $ | (1.18) | |||||||||
% of Net Sales | 27.7% | 13.8% | (19.1)% | ||||||||||||||||||||||
Restructuring plans | 10.9 | 26.1 | 37.0 | 37.0 | 9.1 | 27.9 | 0.06 | ||||||||||||||||||
Goodwill and brand impairment charges | � | � | 956.7 | 956.7 | 109.0 | 847.7 | 1.77 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | (6.5) | � | (6.5) | (6.5) | (1.6) | (4.9) | (0.01) | ||||||||||||||||||
Legal matters, net of recoveries | � | 2.9 | 2.9 | 2.9 | 0.7 | 2.2 | � | ||||||||||||||||||
Fire related insurance recoveries, net | (6.5) | � | (6.5) | (6.5) | (1.6) | (4.9) | (0.01) | ||||||||||||||||||
Impairment of business held for sale | � | � | 2.2 | 2.2 | 0.5 | 1.7 | � | ||||||||||||||||||
Pension valuation adjustment | � | � | � | (11.5) | (2.8) | (8.7) | (0.02) | ||||||||||||||||||
Adjusted | $ | 802.8 | $ | 373.1 | $ | 429.7 | $ | 372.5 | $ | 78.7 | $ | 21.1% | $ | 293.7 | $ | 0.61 | |||||||||
% of Net Sales | 27.6% | 12.8% | 14.8% |
1 Includes advertising and promotion (A&P) expense of |
2In Q4 FY24, we reported a GAAP net loss. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation, as their inclusion would have an anti-dilutive effect. The adjusted diluted earnings per share calculation includes the impact of outstanding stock awards. |
Conagra Brands, Inc. | |||||||||||||||||||||||||
Reconciliation of FY25 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, and Adj. EPS - YOY Change | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
Diluted EPS from | |||||||||||||||||||||||||
income | |||||||||||||||||||||||||
attributable | |||||||||||||||||||||||||
Selling, general | Net income | to Conagra | |||||||||||||||||||||||
and | attributable to | Brands, Inc | |||||||||||||||||||||||
administrative | Operating | Income before | Income tax | Conagra | common | ||||||||||||||||||||
FY25 | Gross profit | expenses 1 | profit | income taxes | expense | Income tax rate | Brands, Inc. | stockholders | |||||||||||||||||
Reported | $ | 3,003.5 | $ | 1,537.3 | $ | 1,364.6 | $ | 1,156.2 | $ | 3.7 | $ | 0.3% | $ | 1,152.4 | $ | 2.40 | |||||||||
% of Net Sales | 25.9% | 13.2% | 11.8% | ||||||||||||||||||||||
Restructuring plans | 10.6 | 91.1 | 101.7 | 101.7 | 24.7 | 77.0 | 0.16 | ||||||||||||||||||
Loss on sale of business | � | � | 2.3 | 2.3 | 0.8 | 1.5 | � | ||||||||||||||||||
Corporate hedging derivative losses (gains) | (8.2) | � | (8.2) | (8.2) | (2.0) | (6.2) | (0.01) | ||||||||||||||||||
Fire related insurance recoveries | (17.0) | � | (17.0) | (17.0) | (4.2) | (12.8) | (0.03) | ||||||||||||||||||
Consulting fees on tax matters | � | 2.0 | 2.0 | 2.0 | 0.5 | 1.5 | � | ||||||||||||||||||
Legal matters, net of recoveries | � | 88.7 | 88.7 | 88.7 | 21.7 | 67.0 | 0.14 | ||||||||||||||||||
Brand impairment charges | � | � | 72.1 | 72.1 | 16.7 | 55.4 | 0.12 | ||||||||||||||||||
Impairment of business held for sale | � | � | 27.2 | 27.2 | 4.3 | 22.9 | 0.05 | ||||||||||||||||||
Acquisitions and divestitures | � | 1.1 | 1.1 | 1.1 | 0.2 | 0.9 | � | ||||||||||||||||||
Ardent JV restructuring activities | � | � | � | 7.2 | 1.7 | 5.5 | 0.01 | ||||||||||||||||||
Valuation allowance adjustment | � | � | � | � | 253.5 | (253.5) | (0.53) | ||||||||||||||||||
Pension settlement gain | � | � | � | (13.0) | (3.2) | (9.8) | (0.02) | ||||||||||||||||||
Rounding | � | � | � | � | � | � | 0.01 | ||||||||||||||||||
Adjusted | $ | 2,988.9 | $ | 1,354.4 | $ | 1,634.5 | $ | 1,420.3 | $ | 318.4 | $ | 22.4% | $ | 1,101.8 | $ | 2.30 | |||||||||
% of Net Sales | 25.7% | 11.7% | 14.1% | ||||||||||||||||||||||
Year-over-year % of net sales change - reported | (180) bps | 89 bps | 467 bps | ||||||||||||||||||||||
Year-over-year % of net sales change - adjusted | (194) bps | (6) bps | (188) bps | ||||||||||||||||||||||
Year-over-year change - reported | (9.9)% | 3.3% | 60.0% | 89.5% | (98.6)% | 231.9% | 233.3% | ||||||||||||||||||
Year-over-year change - adjusted | (10.4)% | (4.2)% | (15.0)% | (14.9)% | (18.0)% | (13.9)% | (13.9)% | ||||||||||||||||||
Diluted EPS from | |||||||||||||||||||||||||
income | |||||||||||||||||||||||||
attributable | |||||||||||||||||||||||||
Selling, general | Net income | toConagra | |||||||||||||||||||||||
and | attributable to | Brands,Inc | |||||||||||||||||||||||
administrative | Operating | Income before | Income tax | Conagra | common | ||||||||||||||||||||
FY24 | Gross profit | expenses 1 | profit | incometaxes | expense | Income tax rate | Brands,Inc. | stockholders | |||||||||||||||||
Reported | $ | 3,333.4 | $ | 1,487.5 | $ | 852.8 | $ | 610.2 | $ | 262.5 | $ | 43.0% | $ | 347.2 | $ | 0.72 | |||||||||
% of Net Sales | 27.7% | 12.3% | 7.1% | ||||||||||||||||||||||
Restructuring plans | 19.1 | 47.5 | 66.6 | 66.6 | 16.7 | 49.9 | 0.10 | ||||||||||||||||||
Acquisitions and divestitures | � | 0.2 | 0.2 | 0.2 | � | 0.2 | � | ||||||||||||||||||
Corporate hedging derivative losses (gains) | (16.1) | � | (16.1) | (16.1) | (4.1) | (12.0) | (0.03) | ||||||||||||||||||
Fire related insurance recoveries, net | (0.6) | (8.1) | (8.7) | (8.7) | (2.1) | (6.6) | (0.01) | ||||||||||||||||||
Pension valuation adjustment | � | � | � | (11.5) | (2.8) | (8.7) | (0.02) | ||||||||||||||||||
Impairment of business held for sale | � | � | 36.4 | 36.4 | 0.4 | 36.0 | 0.08 | ||||||||||||||||||
Goodwill and brand impairment charges | � | � | 956.7 | 956.7 | 109.0 | 847.7 | 1.77 | ||||||||||||||||||
Legal matters, net of recoveries | � | 34.8 | 34.8 | 34.8 | 8.6 | 26.2 | 0.05 | ||||||||||||||||||
Rounding | � | � | � | � | � | � | 0.01 | ||||||||||||||||||
Adjusted | $ | 3,335.8 | $ | 1,413.1 | $ | 1,922.7 | $ | 1,668.6 | $ | 388.2 | $ | 23.3% | $ | 1,279.9 | $ | 2.67 | |||||||||
% of Net Sales | 27.7% | 11.7% | 16.0% |
1 Includes advertising and promotion (A&P) expense of |
Conagra Brands, Inc. | |||||||||
Reconciliation of Q4 FY25 and FY25 Adj. Pension and Postretirement Non-service Income and Adj. Equity Method Investment Earnings | |||||||||
(in millions) | |||||||||
Q4 FY25 | Q4 FY24 | % Change | |||||||
Pension and postretirement non-service income | $ | 16.6 | $ | 12.4 | 33.7% | ||||
Pension settlement gain and valuation adjustment | (13.0) | (11.5) | 13.0% | ||||||
Adjusted pension and postretirement non-service income | $ | 3.6 | $ | 0.9 | 300.0% | ||||
FY25 | FY24 | % Change | |||||||
Pension and postretirement non-service income | $ | 25.9 | $ | 10.3 | 151.1% | ||||
Pension settlement gain and valuation adjustment | (13.0) | (11.5) | 13.0% | ||||||
Adjusted pension and postretirement non-service income (expense) | $ | 12.9 | $ | (1.2) | N/A | ||||
Q4 FY25 |
Q4 FY24 | % Change | |||||||
Equity method investment earnings | $ | 57.4 | $ | 46.6 | 23.4% | ||||
Ardent JV restructuring activities | 3.6 | � | 100.0% | ||||||
Adjusted equity method investment earnings | $ | 61.0 | $ | 46.6 | 30.9% | ||||
FY25 |
FY24 | % Change | |||||||
Equity method investment earnings | $ | 182.4 | $ | 177.6 | 2.7% | ||||
Ardent JV restructuring activities | 7.2 | � | 100.0% | ||||||
Adjusted equity method investment earnings | $ | 189.6 | $ | 177.6 | 6.8% |
Conagra Brands, Inc. | ||||||||
Reconciliation of FY25 Free Cash Flow, Net Debt, and Net Leverage Ratio | ||||||||
(in millions) | ||||||||
FY25 | FY24 | % Change | ||||||
Net cash flows from operating activities | $ | 1,691.9 | $ | 2,015.6 | (16.1)% | |||
Additions to property, plant and equipment | (389.3) | (388.1) | 0.3% | |||||
Free cash flow | $ | 1,302.6 | $ | 1,627.5 | (20.0)% |
May 25, 2025 | May 26, 2024 | |||||
Notes payable | $ | 804.7 | $ | 928.4 | ||
Current installments of long-term debt | 1,028.8 | 20.3 | ||||
Senior long-term debt, excluding current installments | 6,234.1 | 7,492.6 | ||||
Total Debt | $ | 8,067.6 | $ | 8,441.3 | ||
Less: Cash | 68.0 | 77.7 | ||||
Net Debt | $ | 7,999.6 | $ | 8,363.6 |
FY25 | |||
Net Debt 1 | $ | 7,999.6 | |
Net income attributable to Conagra Brands, Inc. | $ | 1,152.4 | |
Add Back: Income tax expense | 3.7 | ||
Income tax expense attributable to noncontrolling interests | � | ||
Interest expense, net | 416.7 | ||
Depreciation | 336.5 | ||
Amortization | 53.7 | ||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) | $ | 1,963.0 | |
Restructuring plans2 | 99.2 | ||
Acquisitions and divestitures | 1.1 | ||
Corporate hedging derivative losses (gains) | (8.2) | ||
Fire related insurance recoveries | (17.0) | ||
Impairment of business held for sale | 27.2 | ||
Legal matters, net of recoveries | 88.7 | ||
Goodwill and brand impairment charges | 72.1 | ||
Pension settlement gain | (13.0) | ||
Ardent JV restructuring activities | 7.2 | ||
Loss on sale of business | 2.3 | ||
Consulting fees on tax matters | 2.0 | ||
Adjusted EBITDA | $ | 2,224.6 | |
Net Debt to Adjusted EBITDA 3 | 3.60 |
1 As of May 25, 2025 |
2Excludes comparability items related to depreciation. |
3The Company defines its net debt leverage ratioas net debt divided byadjusted EBITDA for the trailing twelve month period. |
Conagra Brands, Inc. | |||||||||
Reconciliation of Q4 FY25 and FY25 EBITDA - YOY Change | |||||||||
(in millions) | |||||||||
Q4 FY25 | Q4 FY24 | % Change | |||||||
Net income (loss) attributable to Conagra Brands, Inc. | $ | 256.0 | $ | (567.3) | N/A | ||||
Add Back: Income tax expense (benefit) | 37.2 | (34.6) | |||||||
Income tax expense attributable to noncontrolling interests | � | (0.1) | |||||||
Interest expense, net | 101.8 | 104.7 | |||||||
Depreciation | 82.0 | 95.8 | |||||||
Amortization | 13.3 | 13.4 | |||||||
Earnings (loss) before interest, taxes, depreciation, and amortization | $ | 490.3 | $ | (388.1) | N/A | ||||
Restructuring plans1 | 10.7 | 28.2 | |||||||
Acquisitions and divestitures | 0.8 | � | |||||||
Corporate hedging derivative losses (gains) | 9.1 | (6.5) | |||||||
Fire related insurance recoveries, net | � | (6.5) | |||||||
Pension settlement gain and valuation adjustment | (13.0) | (11.5) | |||||||
Ardent JV restructuring activities | 3.6 | � | |||||||
Impairment of business held for sale | � | 2.2 | |||||||
Legal matters, net of recoveries | (10.5) | 2.9 | |||||||
Goodwill and brand impairment charges | 53.2 | 956.7 | |||||||
Adjusted Earnings before interest, taxes, depreciation, and amortization | $ | 544.2 | $ | 577.4 | (5.7)% | ||||
FY25 | FY24 | % Change | |||||||
Net income attributable to Conagra Brands, Inc. | $ | 1,152.4 | $ | 347.2 | 231.9% | ||||
Add Back: Income tax expense | 3.7 | 262.5 | |||||||
Income tax expense attributable to noncontrolling interests | � | (0.2) | |||||||
Interest expense, net | 416.7 | 430.5 | |||||||
Depreciation | 336.5 | 347.3 | |||||||
Amortization | 53.7 | 53.6 | |||||||
Earnings before interest, taxes, depreciation, and amortization | $ | 1,963.0 | $ | 1,440.9 | 36.2% | ||||
Restructuring plans1 | 99.2 | 51.5 | |||||||
Acquisitions and divestitures | 1.1 | 0.2 | |||||||
Corporate hedging derivative losses (gains) | (8.2) | (16.1) | |||||||
Fire related insurance recoveries, net | (17.0) | (8.7) | |||||||
Impairment of businesses held for sale | 27.2 | 36.4 | |||||||
Legal matters, net of recoveries | 88.7 | 34.8 | |||||||
Goodwill and brand impairment charges | 72.1 | 956.7 | |||||||
Pension settlement gain and valuation adjustment | (13.0) | (11.5) | |||||||
Ardent JV restructuring activities | 7.2 | � | |||||||
Loss on sale of business | 2.3 | � | |||||||
Consulting fees on tax matters | 2.0 | � | |||||||
Adjusted Earnings before interest, taxes, depreciation, and amortization | $ | 2,224.6 | $ | 2,484.2 | (10.5)% |
1 Excludes comparability items related to depreciation. |
For more information, please contact:
MEDIA: Mike Cummins
312-549-5257
[email protected]
INVESTORS: Matthew Neisius
402-240-3226
[email protected]
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SOURCE Conagra Brands, Inc.