CHICAGO, July 13,
2023 /PRNewswire/ -- Today Conagra Brands, Inc.
(NYSE: CAG) reported results for the fourth quarter and full year
fiscal year 2023, which ended on May 28,
2023. All comparisons are against the prior-year fiscal
period, unless otherwise noted.
Highlights
- Fourth quarter:
-
- Reported and organic net sales increased 2.2%
- Operating margin decreased 544 basis points in the quarter to
1.9%; adjusted operating margin decreased 39 basis points to
14.6%
- Diluted earnings per share (EPS) for the fourth quarter
decreased 75.8% to $0.08, and
adjusted EPS decreased 4.6% to $0.62
- Full year fiscal 2023:
-
- Net sales increased 6.4%; organic net sales increased 6.6%
- Operating margin decreased 291 basis points to 8.8%; adjusted
operating margin increased 125 basis points to 15.6%
- Diluted EPS for fiscal 2023 decreased 22.8% to $1.42, and adjusted EPS increased 17.4% to
$2.77
- The Company is providing fiscal 2024 guidance to reflect:
-
- Organic net sales growth of approximately 1% compared to fiscal
2023
- Adjusted operating margin between 16% and 16.5%
- Adjusted EPS between $2.70 and
$2.75
- The Board of Directors has authorized a 6% increase to the
Company's annualized dividend rate, beginning with the dividend
payable on August 31, 2023,
reflecting continued confidence in the strength of the
business.
CEO Perspective
Sean Connolly, president and
chief executive officer of Conagra Brands, commented, "Our business
delivered strong results in fiscal 2023, as we successfully
delivered on our priorities to execute inflation-justified pricing,
drive gross margin recovery, and reduce net leverage while
investing to maintain the strength of our brands. These efforts,
and the continued implementation of our playbook, have our brands
well-positioned following the volatility of the past few years.
Looking ahead, we anticipate transitioning toward a more normalized
operating environment in fiscal 2024 - with easing inflationary
pressures and improved supply chain operations - and remain
committed to our long-term financial algorithm."
Total Company Fourth Quarter Results
In the quarter, reported and organic net sales increased 2.2% to
$3.0 billion.
The 2.2% increase was driven by a 9.9% improvement in price/mix,
which was partially offset by a 7.7% decrease in volume. Price/mix
was driven by the company's inflation-driven pricing actions and
favorable brand mix. The volume decrease was primarily driven by
the elasticity impact from inflation-driven pricing actions and
shortages from supply chain disruptions.
Gross profit increased 9.8% to $783
million in the quarter, and adjusted gross profit increased
11.0% to $803 million. Fourth quarter
gross profit benefited from higher organic net sales and
productivity, which more than offset the negative impacts of cost
of goods sold inflation (including unfavorable commodity positions)
and unfavorable operating leverage. Gross margin increased 183
basis points to 26.3% in the quarter, and adjusted gross margin
increased 216 basis points to 27.0%.
Selling, general, and administrative expense (SG&A), which
includes advertising and promotional expense
(A&P), increased 45.5% to $726 million in the
quarter primarily due to $345 million
of brand impairment charges. Adjusted SG&A, which excludes
A&P, increased 24.3% to $301
million driven by incremental supply chain and technology
investments along with increased incentive compensation compared to
the prior year quarter.
A&P for the quarter increased 49.7% to $69 million, driven primarily by increases in
modern marketing and customer investments along with wrapping
strategic reductions in the prior year period.
Net interest expense was $108
million in the quarter. Compared to the prior-year period,
net interest expense increased 12.2% or $12
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 76.4% to $37 million, or $0.08 per diluted
share. Adjusted net income attributable to Conagra
Brands decreased 5.1% to $299 million, or $0.62
per diluted share. The decrease was driven primarily by the
increase in SG&A.
Adjusted EBITDA, which includes equity method investment
earnings and pension and postretirement non-service
income, increased 0.6% to $594 million in the
quarter, primarily driven by the increase in adjusted gross
profit, offset by higher SG&A and lower pension income.
Total Company Fiscal 2023 Results
For the full fiscal year, net sales increased 6.4% to
$12.3 billion. The growth in net
sales primarily reflects:
- a 0.2% decrease from the impact of foreign exchange; and
- a 6.6% increase in organic net sales.
For the full fiscal year, gross profit increased 15.0% to
$3.3 billion and adjusted gross
profit increased 16.1% to $3.3
billion as the benefits from higher organic net sales and
productivity more than offset the negative impacts from cost of
goods sold inflation (including unfavorable commodity positions),
unfavorable operating leverage, and elevated supply chain operating
costs. Gross margin increased 198 basis points to 26.6% and
adjusted gross margin increased 226 basis points to 27.1%.
For the full fiscal year, EPS decreased 22.8% to $1.42 and adjusted EPS increased 17.4% to
$2.77, driven by an increase in
adjusted operating profit.
For the full fiscal year, the Company generated $995 million in net cash flows from operating
activities and $633 million of free
cash flow.
Grocery & Snacks Segment Fourth Quarter
Results
Reported and organic net sales for the Grocery & Snacks
segment increased 3.6% to $1.2
billion in the quarter.
In the quarter, price/mix increased 9.1% and volume decreased
5.5%. Price/mix was driven by favorability in inflation-driven
pricing. The volume decrease was primarily driven by the elasticity
impact from inflation-driven pricing actions and shortages from
supply chain disruptions. In the quarter, the company gained share
in snacking categories including meat snacks and seeds, and some
staples categories including canned pasta and Asian sauces and
marinades.
Operating profit for the segment decreased 4.5%
to $156 million in the quarter. Adjusted operating
profit decreased 8.1% to $235 million as the
negative impacts of cost of goods sold inflation (including
unfavorable commodity positions), unfavorable operating
leverage, and increased A&P and SG&A more than offset the
impacts from higher organic net sales and productivity.
Refrigerated & Frozen Segment Fourth Quarter
Results
Reported and organic net sales for the Refrigerated & Frozen
segment decreased 1.1% to $1.2
billion in the quarter.
In the quarter, price mix increased 10.4% and volume decreased
11.5%. Price/mix was driven by favorability in inflation-driven
pricing. The volume decrease was primarily driven by the elasticity
impact from inflation-driven pricing actions and shortages from
supply chain disruptions due to a third-party supplier shutdown. In
the quarter, the company gained share in categories such as frozen
sides, multi serve meals, and frozen breakfast sausage.
Operating profit for the segment decreased to a $43 million
loss in the quarter as a result of the brand impairment charges
outlined above. Adjusted operating profit increased 17.7%
to $218 million as higher organic net sales and productivity
more than offset the negative impacts of cost of goods sold
inflation (including unfavorable commodity positions),
unfavorable operating leverage, and increased A&P and
SG&A.
International Segment Fourth Quarter Results
Net sales for the International segment increased 8.6%
to $251 million in the quarter reflecting:
- a 0.9% decrease from the unfavorable impact of foreign
exchange; and
- a 9.5% increase in organic net sales.
On an organic net sales basis, price/mix increased 13.8% and
volume decreased 4.3%. Price/mix was driven by inflation-driven
pricing. The volume decrease was primarily a result of the
elasticity impact from inflation-driven pricing actions.
Operating profit for the segment increased 265.0%
to $21 million in the quarter. Adjusted operating
profit increased 70.7% to $34 million as the
benefits from higher organic net sales
and productivity were partially offset by the
negative impact of cost of goods sold inflation (including
unfavorable commodity positions) and increased A&P and
SG&A.
Foodservice Segment Fourth Quarter Results
Reported and organic net sales for the Foodservice segment
increased 5.5% to $303 million in the
quarter.
In the quarter, price/mix increased 9.3% and volume decreased
3.8%. Price/mix was driven by inflation-driven pricing. The volume
decline was primarily a result of the elasticity impact from
inflation-driven pricing actions.
Operating profit for the segment increased 46.7% to $32 million and adjusted operating profit
decreased 2.3% to $28 million in the
quarter as the benefits of higher organic net sales and
productivity were more than offset by the negative impacts of cost
of goods sold inflation (including unfavorable commodity positions)
and unfavorable operating leverage.
Other Fourth Quarter Items
Corporate expenses increased 103.5% to $108 million in the quarter and adjusted
corporate expense increased 50.7% to $82
million in the quarter driven by incremental supply chain
and technology investments along with increased incentive
compensation compared to the prior year quarter.
Pension and post-retirement non-service income was $6 million in the quarter compared to
$19 million of income in the
prior-year period.
In the quarter, equity method investment earnings increased
32.8% to $63 million, driven by
continued favorable market conditions for the Ardent Mills joint
venture, and the venture's effective management through recent
volatility in the wheat markets.
In the quarter, the effective tax rate was (102.0)% compared to
14.4% in the prior-year period due primarily to a valuation
allowance adjustment. The adjusted effective tax rate was 24.3%
compared to 22.3% in the prior-year period.
In the quarter, the company paid a dividend of $0.33 per share.
Dividend Update
Subsequent to quarter-end, the Company's Board of Directors
approved an increase of the annual dividend from $1.32 per share to $1.40 per share. The Company's new quarterly
dividend payment of $0.35 per share
of Conagra common stock will be paid on August 31, 2023 to stockholders of record as of
the close of business on July 31,
2023.
Outlook
The company is providing the following guidance for fiscal
2024:
- Organic net sales growth is expected to be approximately 1%
compared to fiscal 2023
- Adjusted operating margin is expected to be between 16% and
16.5%
- Adjusted EPS is expected to be between $2.70 and $2.75
- Net Leverage Ratio of approximately 3.4x
- Capital expenditures of approximately $500M
- Interest expense of approximately $450M
- Adjusted effective tax rate of approximately 24%
- Contribution from the company's joint venture, Ardent Mills, is
expected to be approximately $150M
- Pension income of approximately $0
The company also expects cost of goods sold inflation to
continue into fiscal 2024. Guidance anticipates net inflation
(input cost inflation including the impacts of hedging and other
sourcing benefits) to be roughly 3%.
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 $0.08 EPS for
the fourth 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 related to restructuring plans
- Approximately $0.55 per diluted
share of net expense related brand impairment charges
- Approximately $0.01 per diluted
share of net expense related to acquisitions and divestitures
- Approximately $0.02 per diluted
share of net expense related to corporate hedging derivative
losses
- Approximately $0.01 per diluted
share of net expense related to legal matters
- Approximately $0.01 per diluted
share of net expense related to a third-party vendor cybersecurity
incident
- Approximately $0.06 per diluted
share of net benefit related to valuation allowance
adjustments
- Approximately $0.01 per diluted
share of net benefit related to rounding
The following are included in the $0.33 EPS for the
fourth quarter of fiscal 2022 (EPS amounts are rounded
and after tax). Please see the reconciliation schedules at
the end of this release for additional details.
- Approximately $0.02 per diluted
share of net expense related to restructuring plans
- Approximately $0.02 per diluted
share of net expense due to fire related costs
- Approximately $0.33 per diluted
share of net expense related to brand impairment charges
- Approximately $0.01 per diluted
share of net benefit related to legal matters
- Approximately $0.01 per diluted
share of net benefit related to environmental matters
- Approximately $0.03 per diluted
share of net benefit related to unusual tax items
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
0327346. 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 July 13,
2024.
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)
|
|
|
FOURTH
QUARTER
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Thirteen Weeks
Ended
|
|
|
|
|
|
|
|
May 28,
2023
|
|
|
May 29,
2022
|
|
|
Percent
Change
|
|
Net sales
|
|
$
|
2,973.3
|
|
|
$
|
2,910.0
|
|
|
|
2.2
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
2,189.9
|
|
|
|
2,196.6
|
|
|
|
(0.3)
|
%
|
Selling, general and
administrative expenses
|
|
|
726.4
|
|
|
|
499.3
|
|
|
|
45.5
|
%
|
Pension and
postretirement non-service income
|
|
|
(6.0)
|
|
|
|
(19.0)
|
|
|
|
(68.3)
|
%
|
Interest expense,
net
|
|
|
108.0
|
|
|
|
96.2
|
|
|
|
12.2
|
%
|
Income (loss) before
income taxes and equity method investment earnings
|
|
|
(45.0)
|
|
|
|
136.9
|
|
|
|
N/A
|
|
Income tax expense
(benefit)
|
|
|
(18.3)
|
|
|
|
26.7
|
|
|
|
N/A
|
|
Equity method
investment earnings
|
|
|
63.0
|
|
|
|
47.5
|
|
|
|
32.8
|
%
|
Net income
|
|
$
|
36.3
|
|
|
$
|
157.7
|
|
|
|
(76.9)
|
%
|
Less: Net loss
attributable to noncontrolling interests
|
|
|
(1.2)
|
|
|
|
(1.2)
|
|
|
|
3.8
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
37.5
|
|
|
$
|
158.9
|
|
|
|
(76.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.08
|
|
|
$
|
0.33
|
|
|
|
(75.8)
|
%
|
Weighted average shares
outstanding
|
|
|
477.7
|
|
|
|
480.4
|
|
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.08
|
|
|
$
|
0.33
|
|
|
|
(75.8)
|
%
|
Weighted average share
and share equivalents outstanding
|
|
|
479.7
|
|
|
|
482.5
|
|
|
|
(0.6)
|
%
|
Conagra Brands,
Inc.
|
Consolidated Statements
of Earnings
|
(in
millions)
|
(unaudited)
|
|
|
FISCAL YEAR
2023
|
|
|
|
Fifty-Two Weeks
Ended
|
|
|
Fifty-Two Weeks
Ended
|
|
|
|
|
|
|
|
May 28,
2023
|
|
|
May 29,
2022
|
|
|
Percent
Change
|
|
Net sales
|
|
$
|
12,277.0
|
|
|
$
|
11,535.9
|
|
|
|
6.4
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
9,012.2
|
|
|
|
8,697.1
|
|
|
|
3.6
|
%
|
Selling, general and
administrative expenses
|
|
|
2,189.5
|
|
|
|
1,492.8
|
|
|
|
46.7
|
%
|
Pension and
postretirement non-service income
|
|
|
(24.2)
|
|
|
|
(67.3)
|
|
|
|
(63.9)
|
%
|
Interest expense,
net
|
|
|
409.6
|
|
|
|
379.9
|
|
|
|
7.8
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
689.9
|
|
|
|
1,033.4
|
|
|
|
(33.2)
|
%
|
Income tax
expense
|
|
|
218.7
|
|
|
|
290.5
|
|
|
|
(24.7)
|
%
|
Equity method
investment earnings
|
|
|
212.0
|
|
|
|
145.3
|
|
|
|
45.9
|
%
|
Net income
|
|
$
|
683.2
|
|
|
$
|
888.2
|
|
|
|
(23.1)
|
%
|
Less: Net loss
attributable to noncontrolling interests
|
|
|
(0.4)
|
|
|
|
—
|
|
|
|
(100.0)
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
683.6
|
|
|
$
|
888.2
|
|
|
|
(23.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.43
|
|
|
$
|
1.85
|
|
|
|
(22.7)
|
%
|
Weighted average shares
outstanding
|
|
|
478.9
|
|
|
|
480.3
|
|
|
|
(0.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.42
|
|
|
$
|
1.84
|
|
|
|
(22.8)
|
%
|
Weighted average share
and share equivalents outstanding
|
|
|
480.7
|
|
|
|
482.2
|
|
|
|
(0.3)
|
%
|
Conagra Brands,
Inc.
|
Consolidated Balance
Sheets
|
(in
millions)
|
(unaudited)
|
|
|
May 28,
2023
|
|
|
May 29,
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
93.9
|
|
|
$
|
83.3
|
|
Receivables, less
allowance for doubtful accounts of $3.8 and $3.9
|
|
|
965.4
|
|
|
|
867.4
|
|
Inventories
|
|
|
2,232.0
|
|
|
|
1,966.7
|
|
Prepaid expenses and
other current assets
|
|
|
93.7
|
|
|
|
116.3
|
|
Total current
assets
|
|
|
3,385.0
|
|
|
|
3,033.7
|
|
Property, plant and
equipment, net
|
|
|
2,773.8
|
|
|
|
2,737.2
|
|
Goodwill
|
|
|
11,178.2
|
|
|
|
11,329.2
|
|
Brands, trademarks and
other intangibles, net
|
|
|
3,205.9
|
|
|
|
3,857.8
|
|
Other assets
|
|
|
1,509.7
|
|
|
|
1,477.2
|
|
|
|
$
|
22,052.6
|
|
|
$
|
22,435.1
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
641.4
|
|
|
$
|
184.3
|
|
Current installments
of long-term debt
|
|
|
1,516.0
|
|
|
|
707.3
|
|
Accounts
payable
|
|
|
1,529.4
|
|
|
|
1,864.6
|
|
Accrued
payroll
|
|
|
164.1
|
|
|
|
151.7
|
|
Other accrued
liabilities
|
|
|
589.8
|
|
|
|
610.9
|
|
Total current
liabilities
|
|
|
4,440.7
|
|
|
|
3,518.8
|
|
Senior long-term debt,
excluding current installments
|
|
|
7,081.3
|
|
|
|
8,088.2
|
|
Other noncurrent
liabilities
|
|
|
1,723.3
|
|
|
|
1,965.9
|
|
Total stockholders'
equity
|
|
|
8,807.3
|
|
|
|
8,862.2
|
|
|
|
$
|
22,052.6
|
|
|
$
|
22,435.1
|
|
Conagra Brands, Inc.
and Subsidiaries
|
Consolidated Statements
of Cash Flows
|
(in
millions)
|
(unaudited)
|
|
|
Fifty-Two
Weeks Ended
|
|
|
Fifty-Two
Weeks Ended
|
|
|
|
May 28,
2023
|
|
|
May 29,
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
683.2
|
|
|
$
|
888.2
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
369.9
|
|
|
|
375.4
|
|
Asset impairment
charges
|
|
|
771.1
|
|
|
|
284.8
|
|
Equity method
investment earnings in excess of distributions
|
|
|
(73.6)
|
|
|
|
(66.3)
|
|
Stock-settled
share-based payments expense
|
|
|
79.2
|
|
|
|
26.1
|
|
Contributions to
pension plans
|
|
|
(12.5)
|
|
|
|
(11.5)
|
|
Pension
benefit
|
|
|
(13.9)
|
|
|
|
(54.4)
|
|
Other items
|
|
|
8.0
|
|
|
|
(46.6)
|
|
Change in operating
assets and liabilities excluding effects of business acquisitions
and dispositions:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
(102.1)
|
|
|
|
(69.5)
|
|
Inventories
|
|
|
(265.3)
|
|
|
|
(232.8)
|
|
Deferred income taxes
and income taxes payable, net
|
|
|
(188.5)
|
|
|
|
(8.7)
|
|
Prepaid expenses and
other current assets
|
|
|
23.5
|
|
|
|
(10.1)
|
|
Accounts
payable
|
|
|
(248.9)
|
|
|
|
223.6
|
|
Accrued
payroll
|
|
|
12.5
|
|
|
|
(23.5)
|
|
Other accrued
liabilities
|
|
|
(21.7)
|
|
|
|
(71.9)
|
|
Deferred employer
payroll taxes
|
|
|
(25.5)
|
|
|
|
(25.5)
|
|
Net cash flows from
operating activities
|
|
|
995.4
|
|
|
|
1,177.3
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(362.2)
|
|
|
|
(464.4)
|
|
Sale of property,
plant and equipment
|
|
|
3.2
|
|
|
|
20.2
|
|
Purchase of marketable
securities
|
|
|
(5.2)
|
|
|
|
(4.5)
|
|
Sale of marketable
securities
|
|
|
5.2
|
|
|
|
10.4
|
|
Proceeds from
divestitures
|
|
|
—
|
|
|
|
0.1
|
|
Other items
|
|
|
4.1
|
|
|
|
3.3
|
|
Net cash flows from
investing activities
|
|
|
(354.9)
|
|
|
|
(434.9)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Issuances of
short-term borrowings, maturities greater than 90 days
|
|
|
286.8
|
|
|
|
392.6
|
|
Repayment of
short-term borrowings, maturities greater than 90 days
|
|
|
(330.0)
|
|
|
|
(392.6)
|
|
Net issuance
(repayment) of other short-term borrowings, maturities less than or
equal to 90 days
|
|
|
394.6
|
|
|
|
(523.1)
|
|
Issuance of long-term
debt
|
|
|
500.0
|
|
|
|
499.1
|
|
Repayment of long-term
debt
|
|
|
(712.4)
|
|
|
|
(48.5)
|
|
Debt issuance
costs
|
|
|
(4.1)
|
|
|
|
(2.5)
|
|
Repurchase of Conagra
Brands, Inc. common shares
|
|
|
(150.0)
|
|
|
|
(50.0)
|
|
Payment of intangible
asset financing arrangement
|
|
|
—
|
|
|
|
(12.6)
|
|
Cash dividends
paid
|
|
|
(623.8)
|
|
|
|
(581.8)
|
|
Exercise of stock
options and issuance of other stock awards, including tax
withholdings
|
|
|
2.3
|
|
|
|
(11.3)
|
|
Other items
|
|
|
5.0
|
|
|
|
(7.3)
|
|
Net cash flows from
financing activities
|
|
|
(631.6)
|
|
|
|
(738.0)
|
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash
|
|
|
1.7
|
|
|
|
(1.3)
|
|
Net change in cash and
cash equivalents and restricted cash
|
|
|
10.6
|
|
|
|
3.1
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
|
|
83.3
|
|
|
|
80.2
|
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$
|
93.9
|
|
|
$
|
83.3
|
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
Q4
FY23
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra Brands
|
|
Net
Sales
|
|
$
|
1,200.0
|
|
|
$
|
1,219.4
|
|
|
$
|
250.6
|
|
|
$
|
303.3
|
|
|
$
|
2,973.3
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
2.2
|
|
|
|
—
|
|
|
|
2.2
|
|
Organic Net
Sales
|
|
$
|
1,200.0
|
|
|
$
|
1,219.4
|
|
|
$
|
252.8
|
|
|
$
|
303.3
|
|
|
$
|
2,975.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
3.6
|
%
|
|
|
(1.1)
|
%
|
|
|
8.6
|
%
|
|
|
5.5
|
%
|
|
|
2.2
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
0.9
|
|
|
|
—
|
|
|
|
—
|
|
Organic Net
Sales
|
|
|
3.6
|
%
|
|
|
(1.1)
|
%
|
|
|
9.5
|
%
|
|
|
5.5
|
%
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
(5.5)
|
%
|
|
|
(11.5)
|
%
|
|
|
(4.3)
|
%
|
|
|
(3.8)
|
%
|
|
|
(7.7)
|
%
|
Price/Mix
|
|
|
9.1
|
%
|
|
|
10.4
|
%
|
|
|
13.8
|
%
|
|
|
9.3
|
%
|
|
|
9.9
|
%
|
Q4
FY22
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra Brands
|
|
Net
Sales
|
|
$
|
1,158.8
|
|
|
$
|
1,233.0
|
|
|
$
|
230.8
|
|
|
$
|
287.4
|
|
|
$
|
2,910.0
|
|
Net sales from divested
businesses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Organic Net
Sales
|
|
$
|
1,158.8
|
|
|
$
|
1,233.0
|
|
|
$
|
230.8
|
|
|
$
|
287.4
|
|
|
$
|
2,910.0
|
|
FY23
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra Brands
|
|
Net
Sales
|
|
$
|
4,981.9
|
|
|
$
|
5,156.2
|
|
|
$
|
1,002.5
|
|
|
$
|
1,136.4
|
|
|
$
|
12,277.0
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
20.9
|
|
|
|
—
|
|
|
|
20.9
|
|
Organic Net
Sales
|
|
$
|
4,981.9
|
|
|
$
|
5,156.2
|
|
|
$
|
1,023.4
|
|
|
$
|
1,136.4
|
|
|
$
|
12,297.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
6.1
|
%
|
|
|
6.1
|
%
|
|
|
3.3
|
%
|
|
|
12.7
|
%
|
|
|
6.4
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
2.1
|
|
|
|
—
|
|
|
|
0.2
|
|
Organic Net
Sales
|
|
|
6.1
|
%
|
|
|
6.1
|
%
|
|
|
5.4
|
%
|
|
|
12.7
|
%
|
|
|
6.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
(8.5)
|
%
|
|
|
(7.3)
|
%
|
|
|
(7.5)
|
%
|
|
|
(3.2)
|
%
|
|
|
(7.5)
|
%
|
Price/Mix
|
|
|
14.6
|
%
|
|
|
13.4
|
%
|
|
|
12.9
|
%
|
|
|
15.9
|
%
|
|
|
14.1
|
%
|
FY22
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra Brands
|
|
Net
Sales
|
|
$
|
4,697.4
|
|
|
$
|
4,859.3
|
|
|
$
|
970.8
|
|
|
$
|
1,008.4
|
|
|
$
|
11,535.9
|
|
Net sales from divested
businesses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Organic Net
Sales
|
|
$
|
4,697.4
|
|
|
$
|
4,859.3
|
|
|
$
|
970.8
|
|
|
$
|
1,008.4
|
|
|
$
|
11,535.9
|
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
Q4
FY23
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra Brands
|
|
Operating Profit
(Loss)
|
|
$
|
155.6
|
|
|
$
|
(42.6)
|
|
|
$
|
20.5
|
|
|
$
|
31.5
|
|
|
$
|
(108.0)
|
|
|
$
|
57.0
|
|
Restructuring
plans
|
|
|
0.1
|
|
|
|
1.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.0
|
|
|
|
3.9
|
|
Brand impairment
charges
|
|
|
78.9
|
|
|
|
252.6
|
|
|
|
13.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
345.2
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
7.6
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.8
|
|
|
|
3.8
|
|
Fire related
costs
|
|
|
—
|
|
|
|
2.2
|
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
—
|
|
|
|
(1.1)
|
|
Third-party vendor
cybersecurity incident
|
|
|
—
|
|
|
|
4.2
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
4.4
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.5
|
|
|
|
12.5
|
|
Adjusted Operating
Profit
|
|
$
|
234.6
|
|
|
$
|
218.2
|
|
|
$
|
34.2
|
|
|
$
|
28.4
|
|
|
$
|
(82.1)
|
|
|
$
|
433.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
13.0
|
%
|
|
|
(3.5)
|
%
|
|
|
8.2
|
%
|
|
|
10.4
|
%
|
|
|
|
|
|
|
1.9
|
%
|
Adjusted Operating
Profit Margin
|
|
|
19.6
|
%
|
|
|
17.9
|
%
|
|
|
13.6
|
%
|
|
|
9.4
|
%
|
|
|
|
|
|
|
14.6
|
%
|
Year-over-year % change
- Operating Profit
|
|
|
(4.5)
|
%
|
|
|
N/A
|
|
|
|
265.0
|
%
|
|
|
46.7
|
%
|
|
|
103.5
|
%
|
|
|
(73.4)
|
%
|
Year-over year % change
- Adjusted Operating Profit
|
|
|
(8.1)
|
%
|
|
|
17.7
|
%
|
|
|
70.7
|
%
|
|
|
(2.3)
|
%
|
|
|
50.7
|
%
|
|
|
(0.5)
|
%
|
Year-over-year bps
change - Operating Profit
|
|
(110) bps
|
|
|
(975) bps
|
|
|
575 bps
|
|
|
292 bps
|
|
|
|
|
|
|
(544) bps
|
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
(248) bps
|
|
|
286 bps
|
|
|
497 bps
|
|
|
(75) bps
|
|
|
|
|
|
|
(39) bps
|
|
Q4
FY22
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra Brands
|
|
Operating
Profit
|
|
$
|
162.9
|
|
|
$
|
77.2
|
|
|
$
|
5.6
|
|
|
$
|
21.5
|
|
|
$
|
(53.1)
|
|
|
$
|
214.1
|
|
Restructuring
plans
|
|
|
0.7
|
|
|
|
1.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.9
|
|
|
|
10.1
|
|
Brand impairment
charges
|
|
|
90.7
|
|
|
|
103.9
|
|
|
|
14.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
209.0
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5.0)
|
|
|
|
(5.0)
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.1
|
|
|
|
1.1
|
|
Fire related
costs
|
|
|
0.9
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
—
|
|
|
|
11.3
|
|
Environmental
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.5)
|
|
|
|
(6.5)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.9
|
|
|
|
0.9
|
|
Adjusted Operating
Profit
|
|
$
|
255.2
|
|
|
$
|
185.4
|
|
|
$
|
20.0
|
|
|
$
|
29.1
|
|
|
$
|
(54.5)
|
|
|
$
|
435.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
14.1
|
%
|
|
|
6.3
|
%
|
|
|
2.4
|
%
|
|
|
7.5
|
%
|
|
|
|
|
|
|
7.4
|
%
|
Adjusted Operating
Profit Margin
|
|
|
22.0
|
%
|
|
|
15.0
|
%
|
|
|
8.7
|
%
|
|
|
10.1
|
%
|
|
|
|
|
|
|
15.0
|
%
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
FY23
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra Brands
|
|
Operating
Profit
|
|
$
|
1,002.8
|
|
|
$
|
255.0
|
|
|
$
|
121.4
|
|
|
$
|
85.0
|
|
|
$
|
(388.9)
|
|
|
$
|
1,075.3
|
|
Restructuring
plans
|
|
|
0.6
|
|
|
|
5.1
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
7.5
|
|
|
|
13.1
|
|
Impairment of
businesses held for sale
|
|
|
0.5
|
|
|
|
5.7
|
|
|
|
—
|
|
|
|
20.5
|
|
|
|
—
|
|
|
|
26.7
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8.4
|
|
|
|
8.4
|
|
Goodwill and brand
impairment charges
|
|
|
78.9
|
|
|
|
638.3
|
|
|
|
13.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
730.9
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.8
|
|
|
|
3.8
|
|
Fire related
costs
|
|
|
—
|
|
|
|
15.3
|
|
|
|
—
|
|
|
|
(1.9)
|
|
|
|
—
|
|
|
|
13.4
|
|
Third-party vendor
cybersecurity incident
|
|
|
—
|
|
|
|
4.2
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
4.4
|
|
Municipal water break
costs
|
|
|
3.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.5
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
37.1
|
|
|
|
37.1
|
|
Adjusted Operating
Profit
|
|
$
|
1,086.3
|
|
|
$
|
923.6
|
|
|
$
|
135.0
|
|
|
$
|
103.8
|
|
|
$
|
(332.1)
|
|
|
$
|
1,916.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
20.1
|
%
|
|
|
4.9
|
%
|
|
|
12.1
|
%
|
|
|
7.5
|
%
|
|
|
|
|
|
|
8.8
|
%
|
Adjusted Operating
Profit Margin
|
|
|
21.8
|
%
|
|
|
17.9
|
%
|
|
|
13.5
|
%
|
|
|
9.1
|
%
|
|
|
|
|
|
|
15.6
|
%
|
Year-over-year % change
- Operating Profit
|
|
|
16.7
|
%
|
|
|
(54.6)
|
%
|
|
|
13.8
|
%
|
|
|
41.0
|
%
|
|
|
61.0
|
%
|
|
|
(20.1)
|
%
|
Year-over year % change
- Adjusted Operating Profit
|
|
|
10.1
|
%
|
|
|
29.6
|
%
|
|
|
11.3
|
%
|
|
|
24.9
|
%
|
|
|
34.4
|
%
|
|
|
15.7
|
%
|
Year-over-year bps
change - Operating Profit
|
|
|
183 bps
|
|
|
|
(660) bps
|
|
|
|
112 bps
|
|
|
|
150 bps
|
|
|
|
|
|
|
|
(291) bps
|
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
80 bps
|
|
|
|
324 bps
|
|
|
|
97 bps
|
|
|
|
89 bps
|
|
|
|
|
|
|
|
125 bps
|
|
FY22
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra Brands
|
|
Operating
Profit
|
|
$
|
859.5
|
|
|
$
|
561.1
|
|
|
$
|
106.7
|
|
|
$
|
60.3
|
|
|
$
|
(241.6)
|
|
|
$
|
1,346.0
|
|
Restructuring
plans
|
|
|
9.4
|
|
|
|
14.5
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
24.6
|
|
|
|
49.0
|
|
Impairment of
businesses held for sale
|
|
|
26.3
|
|
|
|
28.9
|
|
|
|
—
|
|
|
|
14.9
|
|
|
|
—
|
|
|
|
70.1
|
|
Brand impairment
charges
|
|
|
90.7
|
|
|
|
103.9
|
|
|
|
14.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
209.0
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.4
|
|
|
|
2.4
|
|
Proceeds received from
the sale of a legacy investment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(19.6)
|
|
|
|
(19.6)
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
1.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.1
|
|
|
|
2.8
|
|
Fire related
costs
|
|
|
0.9
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
—
|
|
|
|
11.3
|
|
Environmental
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.5)
|
|
|
|
(6.5)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4.4)
|
|
|
|
(4.4)
|
|
Adjusted Operating
Profit
|
|
$
|
986.8
|
|
|
$
|
712.9
|
|
|
$
|
121.3
|
|
|
$
|
83.1
|
|
|
$
|
(247.3)
|
|
|
$
|
1,656.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
18.3
|
%
|
|
|
11.5
|
%
|
|
|
11.0
|
%
|
|
|
6.0
|
%
|
|
|
|
|
|
|
11.7
|
%
|
Adjusted Operating
Profit Margin
|
|
|
21.0
|
%
|
|
|
14.7
|
%
|
|
|
12.5
|
%
|
|
|
8.2
|
%
|
|
|
|
|
|
|
14.4
|
%
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
Q4
FY23
|
|
Gross
profit
|
|
|
Selling,
general
and administrative
expenses
|
|
|
Operating
profit1
|
|
|
Income (loss)
before income taxes
and equity method
investment earnings
|
|
|
Income tax
expense (benefit)
|
|
|
Income tax
rate
|
|
|
Net income
attributable to
Conagra Brands, Inc.
|
|
|
Diluted EPS
from
income attributable to
Conagra Brands, Inc
common stockholders
|
|
Reported
|
|
$
|
783.4
|
|
|
$
|
726.4
|
|
|
$
|
57.0
|
|
|
$
|
(45.0)
|
|
|
$
|
(18.3)
|
|
|
|
(102.0)
|
%
|
|
$
|
37.5
|
|
|
$
|
0.08
|
|
% of Net
Sales
|
|
|
26.3
|
%
|
|
|
24.4
|
%
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
0.6
|
|
|
|
3.3
|
|
|
|
3.9
|
|
|
|
3.9
|
|
|
|
0.9
|
|
|
|
|
|
|
|
3.0
|
|
|
|
0.01
|
|
Brand impairment
charges3
|
|
|
—
|
|
|
|
345.2
|
|
|
|
345.2
|
|
|
|
345.2
|
|
|
|
78.6
|
|
|
|
|
|
|
|
265.4
|
|
|
|
0.55
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
7.6
|
|
|
|
7.6
|
|
|
|
7.6
|
|
|
|
1.5
|
|
|
|
|
|
|
|
6.1
|
|
|
|
0.01
|
|
Corporate hedging
derivative losses (gains)
|
|
|
12.5
|
|
|
|
—
|
|
|
|
12.5
|
|
|
|
12.5
|
|
|
|
3.1
|
|
|
|
|
|
|
|
9.4
|
|
|
|
0.02
|
|
Advertising and
promotion expenses2
|
|
|
—
|
|
|
|
68.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Legal
matters
|
|
|
—
|
|
|
|
3.8
|
|
|
|
3.8
|
|
|
|
3.8
|
|
|
|
1.0
|
|
|
|
|
|
|
|
2.8
|
|
|
|
0.01
|
|
Fire related
costs
|
|
|
2.2
|
|
|
|
(3.3)
|
|
|
|
(1.1)
|
|
|
|
(1.1)
|
|
|
|
(0.3)
|
|
|
|
|
|
|
|
(0.8)
|
|
|
|
—
|
|
Third-party vendor
cybersecurity incident
|
|
|
4.4
|
|
|
|
—
|
|
|
|
4.4
|
|
|
|
4.4
|
|
|
|
1.1
|
|
|
|
|
|
|
|
3.3
|
|
|
|
0.01
|
|
Valuation allowance
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
28.1
|
|
|
|
|
|
|
|
(28.1)
|
|
|
|
(0.06)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Adjusted
|
|
$
|
803.1
|
|
|
$
|
300.9
|
|
|
$
|
433.3
|
|
|
$
|
331.3
|
|
|
$
|
95.7
|
|
|
|
24.3
|
%
|
|
$
|
298.6
|
|
|
$
|
0.62
|
|
% of Net
Sales
|
|
|
27.0
|
%
|
|
|
10.1
|
%
|
|
|
14.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales change - reported
|
|
|
183
bps
|
|
|
|
727
bps
|
|
|
|
(544)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales change - adjusted
|
|
|
216
bps
|
|
|
|
180
bps
|
|
|
|
(39)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
9.8
|
%
|
|
|
45.5
|
%
|
|
|
(73.4)
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
(76.4)
|
%
|
|
|
(75.8)
|
%
|
Year-over-year
change - adjusted
|
|
|
11.0
|
%
|
|
|
24.3
|
%
|
|
|
(0.5)
|
%
|
|
|
(7.5)
|
%
|
|
|
5.6
|
%
|
|
|
|
|
|
|
(5.1)
|
%
|
|
|
(4.6)
|
%
|
Q4
FY22
|
|
Gross
profit
|
|
|
Selling,
general
and administrative
expenses
|
|
|
Operating
profit1
|
|
|
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
|
|
$
|
713.4
|
|
|
$
|
499.3
|
|
|
$
|
214.1
|
|
|
$
|
136.9
|
|
|
$
|
26.7
|
|
|
|
14.4
|
%
|
|
$
|
158.9
|
|
|
$
|
0.33
|
|
% of Net
Sales
|
|
|
24.5
|
%
|
|
|
17.2
|
%
|
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
(0.1)
|
|
|
|
10.2
|
|
|
|
10.1
|
|
|
|
10.1
|
|
|
|
2.6
|
|
|
|
|
|
|
|
7.5
|
|
|
|
0.02
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
|
|
|
|
0.2
|
|
|
|
—
|
|
Corporate hedging
losses (gains)
|
|
|
0.9
|
|
|
|
—
|
|
|
|
0.9
|
|
|
|
0.9
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.7
|
|
|
|
—
|
|
Advertising and
promotion expenses2
|
|
|
—
|
|
|
|
46.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.9
|
|
|
|
—
|
|
Fire related
costs
|
|
|
9.1
|
|
|
|
2.2
|
|
|
|
11.3
|
|
|
|
11.3
|
|
|
|
2.8
|
|
|
|
|
|
|
|
8.5
|
|
|
|
0.02
|
|
Brand impairment
charges3
|
|
|
—
|
|
|
|
209.0
|
|
|
|
209.0
|
|
|
|
209.0
|
|
|
|
48.4
|
|
|
|
|
|
|
|
159.0
|
|
|
|
0.33
|
|
Legal
matters
|
|
|
—
|
|
|
|
(5.0)
|
|
|
|
(5.0)
|
|
|
|
(5.0)
|
|
|
|
(1.2)
|
|
|
|
|
|
|
|
(3.8)
|
|
|
|
(0.01)
|
|
Environmental
matters
|
|
|
—
|
|
|
|
(6.5)
|
|
|
|
(6.5)
|
|
|
|
(6.5)
|
|
|
|
(1.5)
|
|
|
|
|
|
|
|
(5.0)
|
|
|
|
(0.01)
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.5
|
|
|
|
|
|
|
|
(12.5)
|
|
|
|
(0.03)
|
|
Adjusted
|
|
$
|
723.3
|
|
|
$
|
242.0
|
|
|
$
|
435.2
|
|
|
$
|
358.0
|
|
|
$
|
90.7
|
|
|
|
22.3
|
%
|
|
$
|
314.4
|
|
|
$
|
0.65
|
|
% of Net
Sales
|
|
|
24.9
|
%
|
|
|
8.3
|
%
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
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.
|
3 Includes charges related to
consolidated joint ventures. These charges are recorded at 100% for
all line items before Net income attributable to Conagra Brands,
Inc. Net income attributable to Conagra Brands, Inc. excludes Net
income (loss) attributable to noncontrolling interests.
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
FY23
|
|
Gross
profit
|
|
|
Selling,
general
and administrative
expenses
|
|
|
Operating
profit1
|
|
|
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
|
|
$
|
3,264.8
|
|
|
$
|
2,189.5
|
|
|
$
|
1,075.3
|
|
|
$
|
689.9
|
|
|
$
|
218.7
|
|
|
|
24.2
|
%
|
|
$
|
683.6
|
|
|
$
|
1.42
|
|
% of Net
Sales
|
|
|
26.6
|
%
|
|
|
17.8
|
%
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
1.4
|
|
|
|
11.7
|
|
|
|
13.1
|
|
|
|
13.1
|
|
|
|
3.2
|
|
|
|
|
|
|
|
9.9
|
|
|
|
0.02
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
8.4
|
|
|
|
8.4
|
|
|
|
8.4
|
|
|
|
1.7
|
|
|
|
|
|
|
|
6.7
|
|
|
|
0.01
|
|
Corporate hedging
derivative losses (gains)
|
|
|
37.1
|
|
|
|
—
|
|
|
|
37.1
|
|
|
|
37.1
|
|
|
|
9.2
|
|
|
|
|
|
|
|
27.9
|
|
|
|
0.06
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
290.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Fire related
costs
|
|
|
16.0
|
|
|
|
(2.6)
|
|
|
|
13.4
|
|
|
|
13.4
|
|
|
|
3.3
|
|
|
|
|
|
|
|
10.1
|
|
|
|
0.02
|
|
Third-party vendor
cybersecurity incident
|
|
|
4.4
|
|
|
|
—
|
|
|
|
4.4
|
|
|
|
4.4
|
|
|
|
1.1
|
|
|
|
|
|
|
|
3.3
|
|
|
|
0.01
|
|
Municipal water break
costs
|
|
|
3.5
|
|
|
|
—
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
0.8
|
|
|
|
|
|
|
|
2.7
|
|
|
|
0.01
|
|
Impairment of
businesses held for sale
|
|
|
—
|
|
|
|
26.7
|
|
|
|
26.7
|
|
|
|
26.7
|
|
|
|
6.6
|
|
|
|
|
|
|
|
20.1
|
|
|
|
0.04
|
|
Goodwill and brand
impairment charges3
|
|
|
—
|
|
|
|
730.9
|
|
|
|
730.9
|
|
|
|
730.9
|
|
|
|
137.5
|
|
|
|
|
|
|
|
592.2
|
|
|
|
1.23
|
|
Legal
matters
|
|
|
—
|
|
|
|
3.8
|
|
|
|
3.8
|
|
|
|
3.8
|
|
|
|
1.0
|
|
|
|
|
|
|
|
2.8
|
|
|
|
0.01
|
|
Valuation allowance
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
28.1
|
|
|
|
|
|
|
|
(28.1)
|
|
|
|
(0.06)
|
|
Adjusted
|
|
$
|
3,327.2
|
|
|
$
|
1,120.5
|
|
|
$
|
1,916.6
|
|
|
$
|
1,531.2
|
|
|
$
|
411.2
|
|
|
|
23.6
|
%
|
|
$
|
1,331.2
|
|
|
$
|
2.77
|
|
% of Net
Sales
|
|
|
27.1
|
%
|
|
|
9.1
|
%
|
|
|
15.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales change - reported
|
|
198
bps
|
|
|
489
bps
|
|
|
(291)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of
net sales change - adjusted
|
|
226
bps
|
|
|
77
bps
|
|
|
125
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
15.0
|
%
|
|
|
46.7
|
%
|
|
|
(20.1)
|
%
|
|
|
(33.2)
|
%
|
|
|
(24.7)
|
%
|
|
|
|
|
|
|
(23.0)
|
%
|
|
|
(22.8)
|
%
|
Year-over-year
change - adjusted
|
|
|
16.1
|
%
|
|
|
16.3
|
%
|
|
|
15.7
|
%
|
|
|
13.9
|
%
|
|
|
18.2
|
%
|
|
|
|
|
|
|
16.8
|
%
|
|
|
17.4
|
%
|
FY22
|
|
Gross
profit
|
|
|
Selling,
general
and administrative
expenses
|
|
|
Operating
profit1
|
|
|
Income before
income taxes and
equity method
investment earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable to
Conagra Brands, Inc.
|
|
|
Diluted EPS
from
income attributable to
Conagra Brands, Inc
common stockholders
|
|
Reported
|
|
$
|
2,838.8
|
|
|
$
|
1,492.8
|
|
|
$
|
1,346.0
|
|
|
$
|
1,033.4
|
|
|
$
|
290.5
|
|
|
|
24.6
|
%
|
|
$
|
888.2
|
|
|
$
|
1.84
|
|
% of Net
Sales
|
|
|
24.6
|
%
|
|
|
12.9
|
%
|
|
|
11.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
21.8
|
|
|
|
27.2
|
|
|
|
49.0
|
|
|
|
49.0
|
|
|
|
12.1
|
|
|
|
|
|
|
|
36.9
|
|
|
|
0.08
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
2.4
|
|
|
|
2.4
|
|
|
|
2.4
|
|
|
|
0.6
|
|
|
|
|
|
|
|
1.8
|
|
|
|
—
|
|
Corporate hedging
losses (gains)
|
|
|
(4.4)
|
|
|
|
—
|
|
|
|
(4.4)
|
|
|
|
(4.4)
|
|
|
|
(1.1)
|
|
|
|
|
|
|
|
(3.3)
|
|
|
|
(0.01)
|
|
Advertising and
promotion expenses2
|
|
|
—
|
|
|
|
244.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
2.8
|
|
|
|
2.8
|
|
|
|
2.8
|
|
|
|
0.7
|
|
|
|
|
|
|
|
2.1
|
|
|
|
—
|
|
Fire related
costs
|
|
|
9.1
|
|
|
|
2.2
|
|
|
|
11.3
|
|
|
|
11.3
|
|
|
|
2.8
|
|
|
|
|
|
|
|
8.5
|
|
|
|
0.02
|
|
Impairment of
businesses held for sale
|
|
|
—
|
|
|
|
70.1
|
|
|
|
70.1
|
|
|
|
70.1
|
|
|
|
9.7
|
|
|
|
|
|
|
|
60.4
|
|
|
|
0.13
|
|
Proceeds received from
the sale of a legacy investment
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
(2.8)
|
|
|
|
(0.01)
|
|
Brand impairment
charges3
|
|
|
—
|
|
|
|
209.0
|
|
|
|
209.0
|
|
|
|
209.0
|
|
|
|
48.4
|
|
|
|
|
|
|
|
159.0
|
|
|
|
0.33
|
|
Legal
matters
|
|
|
—
|
|
|
|
(19.6)
|
|
|
|
(19.6)
|
|
|
|
(19.6)
|
|
|
|
(4.8)
|
|
|
|
|
|
|
|
(14.8)
|
|
|
|
(0.03)
|
|
Environmental
matters
|
|
|
—
|
|
|
|
(6.5)
|
|
|
|
(6.5)
|
|
|
|
(6.5)
|
|
|
|
(1.5)
|
|
|
|
|
|
|
|
(5.0)
|
|
|
|
(0.01)
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8.9)
|
|
|
|
|
|
|
|
8.9
|
|
|
|
0.02
|
|
Adjusted
|
|
$
|
2,865.3
|
|
|
$
|
963.9
|
|
|
$
|
1,656.8
|
|
|
$
|
1,344.2
|
|
|
$
|
348.0
|
|
|
|
23.4
|
%
|
|
$
|
1,139.9
|
|
|
$
|
2.36
|
|
% of Net
Sales
|
|
|
24.8
|
%
|
|
|
8.4
|
%
|
|
|
14.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
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.
|
3 Includes charges related to
consolidated joint ventures. These charges are recorded at 100% for
all line items before Net income attributable to Conagra Brands,
Inc. Net income attributable to Conagra Brands, Inc. excludes Net
income (loss) attributable to noncontrolling interests.
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
|
FY23
|
|
|
FY22
|
|
|
%
Change
|
|
Net cash flows from
operating activities
|
|
$
|
995.4
|
|
|
$
|
1,177.3
|
|
|
|
(15.5)
|
%
|
Additions to property,
plant and equipment
|
|
|
(362.2)
|
|
|
|
(464.4)
|
|
|
|
(22.0)
|
%
|
Free cash
flow
|
|
$
|
633.2
|
|
|
$
|
712.9
|
|
|
|
(11.2)
|
%
|
|
|
May 28,
2023
|
|
|
May 29,
2022
|
|
Notes
payable
|
|
$
|
641.4
|
|
|
$
|
184.3
|
|
Current installments of
long-term debt
|
|
|
1,516.0
|
|
|
|
707.3
|
|
Senior long-term debt,
excluding current installments
|
|
|
7,081.3
|
|
|
|
8,088.2
|
|
Total
Debt
|
|
$
|
9,238.7
|
|
|
$
|
8,979.8
|
|
Less: Cash
|
|
|
93.9
|
|
|
|
83.3
|
|
Net
Debt
|
|
$
|
9,144.8
|
|
|
$
|
8,896.5
|
|
|
|
FY23
|
|
Net
Debt1
|
|
$
|
9,144.8
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
683.6
|
|
Add Back: Income tax
expense
|
|
|
218.7
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.5)
|
|
Interest expense,
net
|
|
|
409.6
|
|
Depreciation
|
|
|
313.1
|
|
Amortization
|
|
|
56.8
|
|
Earnings before
interest, taxes, depreciation, and amortization
(EBITDA)
|
|
$
|
1,681.3
|
|
Restructuring
plans2
|
|
|
12.3
|
|
Acquisitions and
divestitures
|
|
|
8.4
|
|
Corporate hedging
derivative losses (gains)
|
|
|
37.1
|
|
Fire related
costs
|
|
|
13.4
|
|
Municipal water break
costs
|
|
|
3.5
|
|
Third-party vendor
cybersecurity incident
|
|
|
4.4
|
|
Impairment of
businesses held for sale
|
|
|
26.7
|
|
Legal
matters
|
|
|
3.8
|
|
Goodwill and brand
impairment charges3
|
|
|
729.3
|
|
Adjusted
EBITDA
|
|
$
|
2,520.2
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA4
|
|
|
3.63
|
|
|
1 As of
May 28, 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)
|
|
|
Q4
FY23
|
|
|
Q4
FY22
|
|
|
%
Change
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
37.5
|
|
|
$
|
158.9
|
|
|
|
(76.4)
|
%
|
Add Back: Income tax
expense
|
|
|
(18.3)
|
|
|
|
26.7
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.2)
|
|
|
|
0.4
|
|
|
|
|
|
Interest expense,
net
|
|
|
108.0
|
|
|
|
96.2
|
|
|
|
|
|
Depreciation
|
|
|
79.4
|
|
|
|
75.0
|
|
|
|
|
|
Amortization
|
|
|
13.5
|
|
|
|
14.8
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
219.9
|
|
|
$
|
372.0
|
|
|
|
(40.9)
|
%
|
Restructuring
plans1
|
|
|
3.5
|
|
|
|
9.5
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
7.6
|
|
|
|
0.2
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
12.5
|
|
|
|
0.9
|
|
|
|
|
|
Fire related
costs
|
|
|
(1.1)
|
|
|
|
11.3
|
|
|
|
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
1.1
|
|
|
|
|
|
Third-party vendor
cybersecurity incident
|
|
|
4.4
|
|
|
|
—
|
|
|
|
|
|
Legal
matters
|
|
|
3.8
|
|
|
|
(5.0)
|
|
|
|
|
|
Environmental
matters
|
|
|
—
|
|
|
|
(6.5)
|
|
|
|
|
|
Brand impairment
charges2
|
|
|
343.6
|
|
|
|
207.0
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
594.2
|
|
|
$
|
590.5
|
|
|
|
0.6
|
%
|
|
|
FY23
|
|
|
FY22
|
|
|
%
Change
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
683.6
|
|
|
$
|
888.2
|
|
|
|
(23.0)
|
%
|
Add Back: Income tax
expense
|
|
|
218.7
|
|
|
|
290.5
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.5)
|
|
|
|
—
|
|
|
|
|
|
Interest expense,
net
|
|
|
409.6
|
|
|
|
379.9
|
|
|
|
|
|
Depreciation
|
|
|
313.1
|
|
|
|
316.1
|
|
|
|
|
|
Amortization
|
|
|
56.8
|
|
|
|
59.3
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
1,681.3
|
|
|
$
|
1,934.0
|
|
|
|
(13.1)
|
%
|
Restructuring
plans1
|
|
|
12.3
|
|
|
|
34.8
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
8.4
|
|
|
|
2.4
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
37.1
|
|
|
|
(4.4)
|
|
|
|
|
|
Fire related
costs
|
|
|
13.4
|
|
|
|
11.3
|
|
|
|
|
|
Municipal water break
costs
|
|
|
3.5
|
|
|
|
—
|
|
|
|
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
2.8
|
|
|
|
|
|
Third-party vendor
cybersecurity incident
|
|
|
4.4
|
|
|
|
—
|
|
|
|
|
|
Impairment of
businesses held for sale
|
|
|
26.7
|
|
|
|
70.1
|
|
|
|
|
|
Proceeds from the sale
of a legacy investment
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
|
|
Legal
matters
|
|
|
3.8
|
|
|
|
(19.6)
|
|
|
|
|
|
Environmental
matters
|
|
|
—
|
|
|
|
(6.5)
|
|
|
|
|
|
Goodwill and brand
impairment charges2
|
|
|
729.3
|
|
|
|
207.0
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
2,520.2
|
|
|
$
|
2,228.6
|
|
|
|
13.1
|
%
|
|
1 Excludes comparability items
related to depreciation.
|
2 Excludes comparability items
attributable to noncontrolling interests.
|
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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SOURCE Conagra Brands, Inc.