Conagra Brands (CAG) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.97%. A quarter ago, it was expected that this company would post earnings of $0.60 per share when it actually produced earnings of $0.66, delivering a surprise of 10%.Over the last four quarters, the company has su ...

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Conagra Brands Inc.’s stock CAG, -0.85% was down by 2.4% in premarket trading on Thursday after the food giant’s second-quarter revenue and 2024 profit outlook fell short of analyst estimates, despite a better-than-expected quarterly profit. Conagra said its second-quarter net income dipped by 0.1% to $478.7 million, or 60 cents a share, from $479.4 million, or 79 cents a share, in the year-ago quarter. Its adjusted profit of 71 cents a share beat the FactSet consensus estimate of 68 cents a share. Revenue ...

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 Conagra Brands Reports Second Quarter Results Conagra Brands Reports Second Quarter Results Net sales decreased 3.2% from the prior year quarter; organic net sales decreased 3.4% Operating margin was 14.0%, representing a 261 ...

Financial Performance - Net sales for the thirteen weeks ended November 26, 2023, were $3,208.1 million, a decrease of 3.2% compared to $3,312.9 million in the same period last year[5] - Net income attributable to Conagra Brands, Inc. for the twenty-six weeks ended November 26, 2023, was $605.9 million, an increase of 99.0% compared to $304.4 million in the same period last year[5] - Earnings per share (diluted) for the twenty-six weeks ended November 26, 2023, were $1.26, compared to $0.63 in the same period last year, reflecting a 100% increase[5] - Comprehensive income attributable to Conagra Brands, Inc. for the twenty-six weeks ended November 26, 2023, was $611.6 million, compared to $291.0 million in the same period last year, reflecting a 110.2% increase[9] - Net income for the twenty-six weeks ended November 26, 2023, was $606.1 million, compared to $304.7 million in the same period last year[17] - Net income attributable to Conagra Brands, Inc. common stockholders for the thirteen weeks ended November 26, 2023 was $286.2 million, compared to $381.9 million for the same period in 2022[62] - Net income attributable to Conagra Brands, Inc. for the twenty-six weeks ended November 26, 2023 was $286.2 million[87] - Net income attributable to Conagra Brands, Inc. was $381.9 million for the period ending November 27, 2022[89] - Net sales for the 13 weeks ended November 26, 2023, were $3,208.1 million, a decrease from $3,312.9 million in the same period last year[5] - Net income attributable to Conagra Brands, Inc. for the 13 weeks ended November 26, 2023, was $286.2 million, compared to $381.9 million in the same period last year[5] - Earnings per share (diluted) for the 13 weeks ended November 26, 2023, were $0.60, down from $0.79 in the same period last year[5] - Net sales for the 26 weeks ended November 26, 2023, were $6,112.1 million, a decrease from $6,217.2 million in the same period last year[5] - Net income attributable to Conagra Brands, Inc. for the 26 weeks ended November 26, 2023, was $605.9 million, compared to $304.4 million in the same period last year[5] - Earnings per share (diluted) for the 26 weeks ended November 26, 2023, were $1.26, up from $0.63 in the same period last year[5] Costs and Expenses - Cost of goods sold for the twenty-six weeks ended November 26, 2023, was $4,442.4 million, a decrease of 2.9% compared to $4,574.6 million in the same period last year[5] - Selling, general, and administrative expenses for the twenty-six weeks ended November 26, 2023, were $732.2 million, a decrease of 34.3% compared to $1,114.3 million in the same period last year[5] - Cost of goods sold for the 13 weeks ended November 26, 2023, was $2,361.5 million, compared to $2,390.6 million in the same period last year[5] - Selling, general and administrative expenses for the 13 weeks ended November 26, 2023, were $398.1 million, up from $372.7 million in the same period last year[5] - Interest expense, net for the 13 weeks ended November 26, 2023, was $113.3 million, compared to $100.3 million in the same period last year[5] - SG&A expenses for Q2 FY2024 increased by $25.4 million to $398.1 million, including a $34.2 million charge for impairment of a business held for sale[134] - Net interest expense increased to $113.3 million in Q2 FY2024 from $100.3 million in Q2 FY2023, due to a higher weighted average interest rate on outstanding debt[147] - Income tax expense decreased to $102.9 million in Q2 FY2024 from $122.5 million in Q2 FY2023, with an effective tax rate of 26.5% in Q2 FY2024 compared to 24.3% in Q2 FY2023[148] Cash Flow and Liquidity - Cash and cash equivalents decreased from $93.3 million to $61.5 million[13] - Net cash flows from operating activities were $854.6 million, compared to $297.8 million in the same period last year[17] - Additions to property, plant, and equipment were $214.0 million, compared to $188.4 million in the same period last year[17] - Repayment of long-term debt was $760.6 million, compared to $265.8 million in the same period last year[17] - Cash dividends paid were $324.7 million, compared to $308.6 million in the same period last year[17] - Net cash flows from operating activities increased to $854.6 million, up from $297.8 million in the previous year[17] - Cash generated from operating activities totaled $854.6 million in the first half of FY2024, up from $297.8 million in the first half of FY2023, driven by changes in inventory balances and timing of accounts payable payments[164] - Cash used in financing activities totaled $683.4 million in the first half of FY2024, primarily due to repayments of long-term debt of $760.6 million and cash dividends paid of $324.7 million[166] - The company had $55.2 million in cash held by international subsidiaries as of November 26, 2023, with a deferred tax liability provided for certain undistributed foreign earnings[167] Assets and Liabilities - Total current assets increased from $3,385.0 million to $3,469.1 million[13] - Property, plant, and equipment, net increased from $2,736.4 million to $2,876.5 million[13] - Total liabilities decreased from $13,245.3 million to $13,045.8 million[13] - Assets held for sale include current assets of $30.2 million and noncurrent assets of $89.5 million[26] - Total inventories as of November 26, 2023 were $2,277.6 million, up from $2,212.2 million as of May 28, 2023[63] - Total equity as of November 26, 2023 was $9,074.2 million[87] - Total equity decreased from $8,862.2 million at May 29, 2022, to $8,737.7 million at November 27, 2022, primarily due to net loss and share repurchases[89] - Accumulated other comprehensive loss improved from $(44.4) million at May 28, 2023, to $(38.7) million at November 26, 2023, driven by derivative adjustments and pension benefits[90] - Derivative assets decreased from $10.0 million at May 28, 2023, to $4.2 million at November 26, 2023, reflecting changes in market conditions[97][98] - Long-term debt carrying amount decreased from $8.60 billion at May 28, 2023, to $8.51 billion at November 26, 2023, with fair value estimated at $8.11 billion[102] - Deferred compensation liabilities increased from $67.0 million at May 28, 2023, to $71.7 million at November 26, 2023[97][98] Restructuring and Impairment - Conagra's restructuring plan incurred cumulative charges of $180.3 million since inception through November 26, 2023, with $228.8 million approved for various projects, including $69.5 million in cash charges and $159.3 million in non-cash charges[28] - In the first half of fiscal 2024, Conagra recognized $27.4 million in restructuring charges, including $5.7 million in cash outflows and $21.7 million in non-cash charges[30] - The company recognized an impairment charge of $34.2 million related to assets held for sale in the second quarter of fiscal 2024[24] - Total charges related to the Conagra Restructuring Plan amounted to $27.4 million in the first half of fiscal 2024, with $5.7 million resulting in cash outflows and $21.7 million in non-cash charges[29][30] - Impairment charges totaled $34.2 million in the International segment during the second quarter of fiscal 2024[100] - Goodwill impairment charges of $141.7 million were recognized in the Refrigerated & Frozen segment during the first quarter of fiscal 2023[101] - The company experienced a charge of $34.2 million related to the impairment of a business held for sale in Q2 2024[121] Debt and Financing - Conagra repaid $500.0 million of 0.50% senior notes in fiscal 2024 and issued $500.0 million of 5.30% senior notes due October 1, 2026[34] - Conagra prepaid $250.0 million of its $500.0 million term loan in fiscal 2024, with the remaining balance maturing on August 26, 2025[35] - Conagra's revolving credit facility provides for a maximum principal amount of $2.0 billion, with no outstanding borrowings as of November 26, 2023[36] - The company repaid $500.0 million of senior notes in the first quarter of fiscal 2024 and issued new senior notes of the same amount with a 5.30% interest rate due October 1, 2026[34] - The revolving credit facility provides for a maximum aggregate principal amount of $2.0 billion, with no outstanding borrowings as of November 26, 2023[36] - The company has a revolving credit facility of $2.0 billion, with no outstanding borrowings as of November 26, 2023[153] Segment Performance - Net sales for Grocery & Snacks decreased to $1,295.1 million in Q2 2024 from $1,349.9 million in Q2 2023, a decline of 4.1%[106] - Refrigerated & Frozen segment net sales dropped to $1,338.5 million in Q2 2024 from $1,421.5 million in Q2 2023, a decrease of 5.8%[106] - International segment net sales increased to $279.6 million in Q2 2024 from $258.7 million in Q2 2023, a growth of 8.1%[106] - Total net sales for the company decreased to $3,208.1 million in Q2 2024 from $3,312.9 million in Q2 2023, a decline of 3.2%[106] - Operating profit for Grocery & Snacks fell to $279.2 million in Q2 2024 from $340.4 million in Q2 2023, a decrease of 18.0%[106] - Total operating profit decreased to $543.3 million in Q2 2024 from $656.1 million in Q2 2023, a decline of 17.2%[106] - Net income attributable to Conagra Brands dropped to $286.2 million in Q2 2024 from $381.9 million in Q2 2023, a decrease of 25.1%[106] - Net sales for the Grocery & Snacks segment decreased by 4.1% to $1,295.1 million in Q2 FY2024 compared to $1,349.9 million in Q2 FY2023, with a volume decline of 3.7%[128] - Refrigerated & Frozen segment net sales decreased by 5.8% to $1,338.5 million in Q2 FY2024, with a volume decline of 3.3%[129] - International segment net sales increased by 8.1% to $279.6 million in Q2 FY2024, driven by a 3.3% volume increase and favorable foreign exchange rates[130] - Foodservice segment net sales increased by 4.3% to $294.9 million in Q2 FY2024, with price/mix up 6.8% but volumes down 2.5%[133] - Operating profit for the Grocery & Snacks segment decreased by 18.0% to $279.2 million in Q2 FY2024, driven by lower gross profits and higher advertising expenses[138] - Refrigerated & Frozen segment operating profit decreased by 12.0% to $220.2 million in Q2 FY2024, impacted by lower gross profits and input cost inflation[140] - International segment operating profit decreased by 84.0% to $5.9 million in Q2 FY2024, including a $34.2 million impairment charge[142] - Foodservice segment operating profit increased by 33.2% to $38.0 million in Q2 FY2024, driven by higher gross profits and a $2.6 million insurance benefit[144] - Total net sales for the company decreased by 3.2% to $3,208.1 million in Q2 FY2024, with declines in Grocery & Snacks and Refrigerated & Frozen segments partially offset by growth in International and Foodservice[128] Derivatives and Hedging - Unrealized derivative adjustments for the twenty-six weeks ended November 26, 2023, resulted in a gain of $5.5 million, compared to a gain of $5.6 million in the same period last year[9] - Gross derivative losses incurred for the thirteen weeks ended November 26, 2023 were $10.0 million, compared to gains of $5.2 million for the same period in 2022[54] - Net derivative losses recognized in general corporate expenses were $11.2 million for the thirteen weeks ended November 26, 2023, compared to $2.4 million for the same period in 2022[54] - Total gains from derivative instruments not designated as hedging instruments were $9.5 million for the twenty-six weeks ended November 26, 2023, compared to $14.8 million for the same period in 2022[57] - The notional value of open commodity contracts as of November 26, 2023 was $83.6 million, down from $134.6 million as of May 28, 2023[57] - Derivative losses in Q2 2024 were $11.2 million, compared to $2.4 million in Q2 2023[121] Pension and Post-Employment Benefits - Pension and post-employment benefit obligations for the twenty-six weeks ended November 26, 2023, resulted in a net loss of $1.8 million, compared to a net loss of $1.6 million in the same period last year[9] - Total pension cost for the twenty-six weeks ended November 26, 2023 was $10.3 million[80] - Total postretirement cost for the twenty-six weeks ended November 26, 2023 was $(1.8) million[81] - Weighted-average discount rates for pension cost in fiscal 2024 were 5.64% for service cost and 5.44% for interest cost[82] - The company distributed approximately $135 million from pension plan assets in connection with a voluntary lump-sum settlement offer[84] - Pension and postretirement non-service expense was $0.4 million in Q2 FY2024, compared to income of $6.1 million in Q2 FY2023, driven by higher interest costs[146] Litigation and Guarantees - The company has accrued $28.8 million as of November 26, 2023 for litigation matters related to lead-based paint, down from $40.7 million as of May 28, 2023[69] - Litigation accrual totaled $54.5 million as of November 26, 2023, with $26.1 million in other accrued liabilities and $28.4 million in other noncurrent liabilities[73] - Beatrice-related environmental matters accrual was $38.8 million as of November 26, 2023, with $1.5 million in other accrued liabilities and $37.3 million in other noncurrent liabilities[75] - The company guarantees a maximum of $75.0 million for Lamb Weston's sublease agreement obligations[76] - Guaranteed future payments for an exited facility lease arrangement totaled $7.4 million as of November 26, 2023[77] Other Financial Metrics - Stock-based compensation expense for the second quarter of fiscal 2024 was $6.2 million, compared to $36.0 million for the same period in 2023[58] - Total depreciation expense increased to $86.0 million in Q2 2024 from $77.8 million in Q2 2023, a rise of 10.5%[109] - The amount of gross unrecognized tax benefits for uncertain tax positions was $25.2 million as of November 26, 2023, up from $23.7 million as of May 28, 2023[66] - Equity method investment earnings were $54.3 million in Q2 FY2024, up from $49.3 million in Q2 FY2023, driven by improved product margins despite lower volume trends[149] - Diluted earnings per share decreased to $0.60 in Q2 FY2024 from $0.79 in Q2 FY2023, reflecting lower net income[150] - Capital expenditures for FY2024 are estimated at approximately $450 million[162]

Key PointsConAgra is a major manufacturer of packaged and frozen foods selling under iconic brands like Birds Eye, Slim Jim, Vlasic, Reddi-wip, and Orville Redenbacher. It produced its sixth consecutive earnings beat with its fiscal first-quarter 2024 earnings release.ConAgra shares fell 26.19% in 2023 but could see a rebound in consumer consumption as disposable income improves with interest rate cuts in 2024.ConAgra stock trades at 10.7X forward earnings and pays a 4.9% annual yield.5 stocks we like bette ...

Stock and bond markets will be closed on Monday for New Year’s Day, with 2024 trading kicking off on Tuesday. The latest slate of U.S. labor-market data will be the highlight of the holiday-shortened week once investors return. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 27, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-7275 CONAGRA BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 47-0248710 (State or other jurisdictio ...

Conagra Brands, Inc. (NYSE:CAG) Q1 2024 Earnings Call Transcript October 5, 2023 9:30 AM ET Company Participants Melissa Napier - SVP, IR Sean Connolly - CEO Dave Marberger - CFO Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Pamela Kaufman - Morgan Stanley David Palmer - Evercore Max Gumport - BNP Paribas Robert Moskow - TD Cowen Nik Modi - RBC Jason English - Goldman Sachs Steve Powers - Deutsche Bank Alexia Howard - Bernstein Operator Good morning, and welcome to the Conagra ...

CONAGRA • B R A N D S • FY23 Q4 Earnings Presentation July 13, 2023 1 Today's Presenters Melissa Napier Investor Relations Sean Connolly President and Chief Executive Officer Dave Marberger Executive Vice President and Chief Financial Officer 2 Legal Disclosure 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 ...