Provides fiscal
2023 guidance
CHICAGO, July 14,
2022 /PRNewswire/ -- Today Conagra Brands, Inc.
(NYSE: CAG) reported results for the fourth quarter and full
fiscal year 2022, which ended on May 29,
2022. All comparisons are against the prior-year fiscal
period, unless otherwise noted. Certain terms used in this release,
including "Organic net sales," "EBITDA," "Two-year compounded
annualized," and certain "adjusted" results, are defined under the
section entitled "Definitions." See page 7 for more
information.
Highlights
|
o
|
Net sales
increased 6.2% and organic net sales
increased 6.8%.
|
|
o
|
Operating margin
decreased 310 basis points to 7.4%; adjusted operating
margin increased 96 basis points to 15.0%.
|
|
o
|
Diluted earnings per
share from continuing operations (EPS) for the fourth
quarter declined 48.4% to $0.33 and adjusted
EPS increased 20.4% to $0.65.
|
|
o
|
Net sales
increased 3.1% and organic net sales increased 3.8%.
On a two-year compounded annualized basis, fiscal 2022 net
sales increased 2.1% and organic net sales
increased 4.4%.
|
|
o
|
Operating margin
decreased 421 basis points to 11.7%; adjusted operating
margin decreased 312 basis points to 14.4%.
|
|
o
|
EPS for fiscal
2022 declined 30.8% to $1.84; adjusted EPS
declined 10.6% to $2.36. On a two-year compounded annualized basis, FY22 EPS
increased 3.5% and adjusted
EPS increased 1.7%.
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●
|
The Company is
providing fiscal 2023 guidance to reflect:
|
|
o
|
Organic net sales
growth of 4% to 5% compared to fiscal 2022
|
|
o
|
Adjusted operating
margin of approximately 15%
|
|
o
|
Adjusted EPS growth of
1% to 5% compared to fiscal 2022
|
CEO Perspective
Sean
Connolly, president and chief executive officer of Conagra
Brands, commented, "Throughout fiscal 2022 our team took decisive
actions to offset inflation and invest in our business. I'm pleased
that our brands continued to resonate with consumers, and we
continued to grow share."
He continued, "I was also pleased to see margin improvement
materialize in the fourth quarter in Grocery & Snacks and
Foodservice. This represents an important inflection that we expect
will extend to our Refrigerated & Frozen and International
businesses as fiscal 2023 progresses."
Total Company Fourth Quarter Results
In the quarter, net sales increased 6.2% to
$2.9 billion. The increase in
net sales primarily reflects:
|
●
|
a
0.5% decrease from the sale of the Egg
Beaters business (the Sold Business);
|
|
●
|
a
0.1% decrease from the impact of foreign
exchange;
|
|
●
|
a
6.8% increase in organic net sales.
|
The 6.8% increase in organic net sales was driven by
a 13.2% improvement in price/mix, which was
partially offset by a 6.4% decrease in volume.
Price/mix was driven by the Company's inflation-driven pricing
actions that were reflected in the marketplace throughout the
quarter and favorable brand mix. The volume decrease was
primarily a result of the elasticity impact from inflation-driven
pricing actions.
Gross profit decreased 1.1% to $713 million in the
quarter and adjusted gross profit increased 0.3% to
$723 million. Gross profit in the quarter benefited from
higher organic net sales, supply chain realized productivity, lower
COVID-19 pandemic-related expenses, and cost synergies
associated with the Pinnacle Foods acquisition. These benefits,
however, were not enough to offset the impacts of cost of goods
sold inflation of 17.3% and the lost profit from the Sold
Business. Gross margin decreased 183 basis points to
24.5% in the quarter and adjusted gross margin
decreased 147 basis points to 24.9%.
Selling, general, and administrative expense (SG&A), which
includes advertising and promotion expense (A&P),
increased 14.7% to $499 million in the quarter
primarily due to brand impairment charges. Adjusted SG&A, which
excludes A&P, decreased 7.8% to $242 million
driven by decreased incentive and deferred compensation.
A&P for the quarter decreased 38.7% to
$46 million, driven primarily by lapping increased investment
in the prior year period.
Net interest expense was $96 million in the quarter,
a decrease of 2.1% or $2 million compared
to the prior-year period.
The average diluted share count was flat compared to the
prior-year period at 482 million shares.
In the quarter, net income attributable to Conagra Brands
decreased 48.6% to $159 million, or $0.33 per diluted share. Adjusted net income
attributable to Conagra Brands increased 20.6% to
$314 million, or $0.65 per
diluted share in the quarter, driven primarily by an increase in
operating profit and a strong performance from the Company's Ardent
Mills joint venture.
Adjusted EBITDA, which includes equity method investment
earnings and pension and postretirement non-service income,
increased 13.5% to $591 million in the quarter,
primarily driven by an increase in adjusted operating profit and
a strong performance from the Company's Ardent Mills joint
venture.
Total Company Fiscal 2022 Results
For the full
fiscal year, net sales increased 3.1% to $11.5 billion. The growth in net sales
primarily reflects:
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●
|
a 0.8% net
decrease from the sale of the H.K.
Anderson business, the Peter Pan peanut butter
business, and the Egg Beaters business (collectively,
the Sold Businesses); and
|
|
●
|
a 0.1% increase
from the favorable impact of foreign exchange
|
|
●
|
a
3.8% increase in organic net sales.
|
For the full fiscal year, gross profit
decreased 10.7% to $2.8 billion and adjusted
gross profit decreased 10.5% to $2.9 billion.
The benefits from supply chain realized productivity, higher
organic net sales, lower COVID-19 pandemic-related expenses, and
cost synergies associated with the Pinnacle Foods acquisition were
not enough to offset the impacts from cost of goods sold
inflation of 16.4%, the lost profit from the Sold Businesses, and
elevated supply chain operating costs. Gross margin
decreased 382 basis points to 24.6% and adjusted
gross margin decreased 378 basis points to 24.8%.
For the full fiscal year, EPS
decreased 30.8% to $1.84 and adjusted EPS
decreased 10.6% to $2.36, driven by a decrease
in adjusted operating profit.
For the full fiscal year, the Company
generated $1.2 billion in net cash flows from
operating activities and $713 million of free cash
flow.
Grocery & Snacks Segment Fourth
Quarter Results
Reported and organic net sales for the
Grocery & Snacks segment increased 7.2% to
$1.2 billion in the quarter.
In the quarter, price/mix increased 14.4% and volume
decreased 7.2%. Price/mix was primarily driven by favorability
in inflation-driven pricing coupled with favorable brand mix. The
volume decline was primarily due to the elasticity impact from
inflation-driven pricing actions. In the quarter, the Company
gained share in staples categories such as syrup and refried beans,
and snacking categories including microwave popcorn and meat
snacks.
Operating profit for the segment decreased 19.9% to
$163 million in the quarter. Adjusted operating profit
increased 17.0% to $255 million, as the negative
impact of cost of goods sold inflation was more than offset
by higher organic net sales, supply chain realized
productivity, lower COVID-19 pandemic related expenses, lower
A&P investment, and cost synergies associated with the Pinnacle
Foods acquisition.
Refrigerated & Frozen Segment Fourth
Quarter Results
Net sales for the Refrigerated &
Frozen segment increased 3.4% to $1.2 billion in the quarter reflecting:
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●
|
a 0.9% decrease
from the impact of the Sold Business; and
|
|
●
|
a 4.3% increase in
organic net sales.
|
On an organic net sales basis, price/mix
increased 12.4% and volume decreased 8.1%. Price/mix
was primarily driven by favorability in inflation-driven pricing
coupled with favorable brand mix. The volume decline was
primarily due to the elasticity impact from inflation-driven
pricing actions. In the quarter, the Company gained share in
categories such as frozen single serve meals, frozen meat
substitutes, and frozen desserts.
Operating profit for the segment decreased 34.4% to
$77 million in the quarter. Adjusted operating
profit decreased 6.4% to $185 million as the
benefits of higher organic net sales, supply chain realized
productivity, lower A&P investment, decreased COVID-19 related
expenses, and cost synergies associated with the Pinnacle Foods
acquisition were more than offset by cost of goods sold inflation
and lost profit from the segment's Sold Business.
Foodservice Segment Fourth Quarter Results
Net
sales for the Foodservice segment increased 21.5% to
$287 million in the quarter reflecting:
|
●
|
a
0.1% decrease from the impact of the Sold Business;
and
|
|
●
|
a
21.6% increase in organic net sales.
|
On an organic net sales basis, volume
increased 4.5% as restaurant traffic continued to improve
from the impacts of the COVID-19 pandemic, partially offset by
the elasticity impact from inflation-driven pricing actions.
Price/mix was favorable 17.1% in the quarter, primarily driven
by inflation-driven pricing and favorable product mix.
Operating profit for the segment increased 13.2% to
$22 million in the quarter. Adjusted operating profit
increased 53.0% to $29 million as the
benefits of higher organic net sales and supply chain realized
productivity more than offset the impact of cost of goods sold
inflation.
International Segment Fourth Quarter Results
Net
sales for the International segment
increased 0.9% to $231 million in the quarter
reflecting:
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●
|
a
1.5% decrease from the unfavorable impact of foreign
exchange; and
|
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●
|
a
2.4% increase in organic net sales.
|
On an organic net sales basis, price/mix
increased 5.6% and volume decreased 3.2%. The
price/mix increase was driven by inflation-justified pricing.
Volume decreased primarily due to the elasticity impact from
inflation-driven pricing actions.
Operating profit for the segment decreased 78.4% to
$6 million in the quarter. Adjusted operating profit
decreased 25.7% to $20 million as the benefits of
higher organic net sales and supply chain realized productivity
were more than offset by cost of goods sold inflation and the
unfavorable impact of foreign exchange.
Other Fourth Quarter Items
Corporate
expenses decreased 33.3% to $53 million in the
quarter and adjusted corporate expense decreased 30.8% to
$55 million in the quarter primarily as a result of lower
incentive compensation expense.
Pension and post-retirement non-service income was
$19 million in the quarter compared to $13 million
of income in the prior-year period.
In the quarter, equity method investment earnings were
$48 million. The 42.1% increase on a reported basis
was primarily driven by 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 14.4% compared
to (32.0)% in the prior-year period. The adjusted effective
tax rate was 22.3% compared to 21.3% in the prior-year
period.
In the quarter, the Company paid a dividend of $0.3125 per share.
Outlook
The Company expects cost of goods sold
inflation to continue into fiscal 2023 and has communicated
additional pricing increases that will take effect in the second
quarter of FY23. Guidance anticipates gross inflation (input cost
inflation before the impacts of hedging and other sourcing
benefits) in low-teen levels. Guidance also assumes volume
elasticities increase from fiscal 2022 levels but remain below
historical levels. The Company does not expect the elevated
performance that its joint venture, Ardent Mills, delivered in
the back half of fiscal 2022 to continue throughout fiscal
2023.
The Company is providing the following guidance for fiscal
2023:
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●
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Organic net sales
growth is expected to be 4% to 5% compared to fiscal
2022
|
|
●
|
Adjusted operating
margin is expected to be approximately 15%
|
|
●
|
Adjusted diluted EPS
growth is expected to be 1% to 5% compared to fiscal
2022
|
|
●
|
Capital expenditures of
approximately $500M
|
|
●
|
Interest expense of
approximately $410M
|
|
●
|
Effective tax rate of
approximately 24%
|
|
●
|
Pension income of
approximately $25M
|
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 $0.33 EPS for
the fourth quarter of fiscal 2022 (EPS amounts rounded
and after tax). Please see the reconciliation schedules at
the end of this release for additional details.
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●
|
Approximately $0.02 per
diluted share of net expense related to restructuring
plans
|
|
●
|
Approximately $0.33 per
diluted share of net expense related to brand impairment charges,
primarily related to Duncan Hines and Gardein
|
|
●
|
Approximately $0.01 per
diluted share of net benefit related to legal matters
|
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●
|
Approximately $0.01 per
diluted share of net benefit related to environmental
matters
|
|
●
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Approximately $0.02 per
diluted share of net expense from fire-related
costs
|
|
●
|
Approximately $0.03 per
diluted share of net benefit related to unusual tax
items
|
The following are included in the $0.64 EPS for the fourth quarter of
fiscal 2021 (EPS amounts 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 $0.01 per
diluted share of net benefit related to corporate hedging
derivative gains
|
|
●
|
Approximately $0.14 per
diluted share of net expense related to brand impairment charges,
primarily related to Udi's
|
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●
|
Approximately $0.24 per
diluted share of net non-cash income tax benefits associated with a
restructuring of the ownership of our interest in the Ardent Mills
joint venture
|
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●
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Approximately $0.03 per
diluted share of net benefit related to a release of a valuation
allowance on our capital loss carryforward primarily related to the
Egg Beaters divestiture
|
|
●
|
Approximately $0.02 per
diluted share of negative impact due to rounding
|
Definitions
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.
References to two-year compounded annualized numbers are
calculated as: ([(1 + current year period's growth rate) * (1 +
prior year period's growth rate)] ^ 0.5) – 1.
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 7662840. 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 14,
2023.
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
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: the risk that the cost savings and any other
synergies from the acquisition of Pinnacle Foods, Inc. (the
"Pinnacle acquisition") may not be fully realized or may take
longer to realize than expected; the risk that the Pinnacle
acquisition may not be accretive within the expected timeframe or
to the extent anticipated; the risks that the Pinnacle
acquisition and related integration will create disruption to the
Company and its management and impede the achievement of business
plans; risks related to our ability to achieve the intended
benefits of other recent acquisitions and divestitures; risks
associated with general economic and industry conditions; risks
associated with our ability to successfully execute our long-term
value creation strategies; 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 our
ability to execute operating and restructuring plans and achieve
targeted operating efficiencies from cost-saving initiatives, and
to benefit from trade optimization programs; risks related to the
effectiveness of our hedging activities and ability to respond to
volatility in commodities; risks related to the Company's
competitive environment and related market conditions; risks
related to our ability to respond to changing consumer preferences
and the success of our innovation and marketing investments; risks
related to the ultimate impact of any product recalls and
litigation, including litigation related to the lead paint and
pigment matters, as well as any securities litigation, including
securities class action lawsuits; risk associated with actions of
governments and regulatory bodies that affect our businesses,
including the ultimate impact of new or revised regulations or
interpretations; risks related to the impact of the COVID-19
pandemic on our business, suppliers, consumers, customers, and
employees; risks related to our forecasts of consumer eat-at-home
habits as the impacts of the COVID-19 pandemic abate; risks related
to the availability and prices of supply chain resources, including
raw materials, packaging, and transportation, including any
negative effects caused by changes in inflation rates, 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, including from the COVID-19 pandemic; risks related to
disruptions in the global economy caused by the ongoing conflict
between Russia and Ukraine; risks associated with actions by our
customers, including changes in distribution and purchasing terms;
risks and uncertainties associated with intangible assets,
including any future goodwill or intangible assets impairment
charges; risks related to a material failure in or breach of our or
our vendors' information technology systems; the amount and timing
of future dividends, which remain subject to Board approval and
depend on market and other conditions; 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 markets; and
other risks described in our reports filed from time to time with
the SEC. 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 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.
Certain of these non-GAAP measures, such as organic net sales,
adjusted operating margin, and adjusted EPS are
forward-looking. Historically, the Company has excluded the impact
of certain items impacting comparability, such as, but not limited
to, restructuring expenses, the impact of the extinguishment of
debt, the impact of foreign exchange, the impact of acquisitions
and divestitures, hedging gains and losses, impairment charges, the
impact of legacy legal contingencies, and the impact of unusual tax
items, from the non-GAAP financial measures it presents.
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 occurrence and the
financial impact of such items impacting comparability and the
periods in which such items may be recognized. For the same
reasons, the Company is unable to address the probable significance
of the unavailable information, which could be material to future
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 Company identifies these amounts as items that impact
comparability within the discussion of unallocated Corporate
results.
Conagra Brands,
Inc.
|
Consolidated Statements
of Earnings
|
(in
millions)
|
|
|
|
FOURTH
QUARTER
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Thirteen Weeks
Ended
|
|
|
|
|
|
|
|
May 29, 2022
|
|
|
May 30, 2021
|
|
|
Percent
Change
|
|
Net sales
|
|
$
|
2,910.0
|
|
|
$
|
2,739.5
|
|
|
|
6.2
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
2,196.6
|
|
|
|
2,017.8
|
|
|
|
8.9
|
%
|
Selling, general and
administrative expenses
|
|
|
499.3
|
|
|
|
435.3
|
|
|
|
14.7
|
%
|
Pension and
postretirement non-service income
|
|
|
(19.0)
|
|
|
|
(13.3)
|
|
|
|
43.9
|
%
|
Interest expense,
net
|
|
|
96.2
|
|
|
|
98.4
|
|
|
|
(2.1)
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
136.9
|
|
|
|
201.3
|
|
|
|
(32.0)
|
%
|
Income tax expense
(benefit)
|
|
|
26.7
|
|
|
|
(75.2)
|
|
|
|
N/A
|
|
Equity method
investment earnings
|
|
|
47.5
|
|
|
|
33.4
|
|
|
|
42.1
|
%
|
Net income
|
|
$
|
157.7
|
|
|
$
|
309.9
|
|
|
|
(49.1)
|
%
|
Less: Net income (loss)
attributable to noncontrolling interests
|
|
|
(1.2)
|
|
|
|
0.4
|
|
|
|
N/A
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
158.9
|
|
|
$
|
309.5
|
|
|
|
(48.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.33
|
|
|
$
|
0.64
|
|
|
|
(48.4)
|
%
|
Weighted average shares
outstanding
|
|
|
480.4
|
|
|
|
480.6
|
|
|
|
(0.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.33
|
|
|
$
|
0.64
|
|
|
|
(48.4)
|
%
|
Weighted average share
and share equivalents outstanding
|
|
|
482.5
|
|
|
|
482.7
|
|
|
|
(0.0)
|
%
|
Conagra Brands,
Inc.
|
Consolidated Statements
of Earnings
|
(in
millions)
|
|
|
|
FOURTH QUARTER YEAR TO
DATE
|
|
|
|
Fifty-Two
Weeks Ended
|
|
|
Fifty-Two
Weeks Ended
|
|
|
|
|
|
|
|
May 29, 2022
|
|
|
May 30, 2021
|
|
|
Percent
Change
|
|
Net sales
|
|
$
|
11,535.9
|
|
|
$
|
11,184.7
|
|
|
|
3.1
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
8,697.1
|
|
|
|
8,005.5
|
|
|
|
8.6
|
%
|
Selling, general and
administrative expenses
|
|
|
1,492.8
|
|
|
|
1,403.0
|
|
|
|
6.4
|
%
|
Pension and
postretirement non-service income
|
|
|
(67.3)
|
|
|
|
(54.5)
|
|
|
|
23.5
|
%
|
Interest expense,
net
|
|
|
379.9
|
|
|
|
420.4
|
|
|
|
(9.6)
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
1,033.4
|
|
|
|
1,410.3
|
|
|
|
(26.7)
|
%
|
Income tax
expense
|
|
|
290.5
|
|
|
|
193.8
|
|
|
|
49.9
|
%
|
Equity method
investment earnings
|
|
|
145.3
|
|
|
|
84.4
|
|
|
|
72.2
|
%
|
Net income
|
|
$
|
888.2
|
|
|
$
|
1,300.9
|
|
|
|
(31.7)
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
—
|
|
|
|
2.1
|
|
|
|
(100.0)
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
888.2
|
|
|
$
|
1,298.8
|
|
|
|
(31.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.85
|
|
|
$
|
2.67
|
|
|
|
(30.7)
|
%
|
Weighted average shares
outstanding
|
|
|
480.3
|
|
|
|
485.8
|
|
|
|
(1.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.84
|
|
|
$
|
2.66
|
|
|
|
(30.8)
|
%
|
Weighted average share
and share equivalents outstanding
|
|
|
482.2
|
|
|
|
487.8
|
|
|
|
(1.1)
|
%
|
Conagra Brands,
Inc.
|
Consolidated Balance
Sheets
|
(in
millions)
|
|
|
|
May 29, 2022
|
|
|
May 30, 2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
83.3
|
|
|
$
|
79.2
|
|
Receivables, less
allowance for doubtful accounts of $3.9 and $3.2
|
|
|
867.4
|
|
|
|
793.9
|
|
Inventories
|
|
|
1,939.7
|
|
|
|
1,709.7
|
|
Prepaid expenses and
other current assets
|
|
|
116.3
|
|
|
|
95.0
|
|
Current assets held
for sale
|
|
|
27.0
|
|
|
|
24.3
|
|
Total current
assets
|
|
|
3,033.7
|
|
|
|
2,702.1
|
|
Property, plant and
equipment, net
|
|
|
2,713.9
|
|
|
|
2,572.0
|
|
Goodwill
|
|
|
11,329.2
|
|
|
|
11,338.9
|
|
Brands, trademarks and
other intangibles, net
|
|
|
3,853.1
|
|
|
|
4,124.6
|
|
Other assets
|
|
|
1,473.3
|
|
|
|
1,344.7
|
|
Noncurrent assets held
for sale
|
|
|
31.9
|
|
|
|
113.3
|
|
|
|
$
|
22,435.1
|
|
|
$
|
22,195.6
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
184.3
|
|
|
$
|
707.4
|
|
Current installments
of long-term debt
|
|
|
707.3
|
|
|
|
23.1
|
|
Accounts
payable
|
|
|
1,864.6
|
|
|
|
1,655.9
|
|
Accrued
payroll
|
|
|
151.7
|
|
|
|
175.2
|
|
Other accrued
liabilities
|
|
|
609.2
|
|
|
|
743.0
|
|
Current liabilities
held for sale
|
|
|
1.7
|
|
|
|
1.6
|
|
Total current
liabilities
|
|
|
3,518.8
|
|
|
|
3,306.2
|
|
Senior long-term debt,
excluding current installments
|
|
|
8,088.2
|
|
|
|
8,275.2
|
|
Other noncurrent
liabilities
|
|
|
1,963.5
|
|
|
|
1,979.6
|
|
Noncurrent liabilities
held for sale
|
|
|
2.4
|
|
|
|
3.2
|
|
Total stockholders'
equity
|
|
|
8,862.2
|
|
|
|
8,631.4
|
|
|
|
$
|
22,435.1
|
|
|
$
|
22,195.6
|
|
Conagra Brands,
Inc. and Subsidiaries
|
Consolidated Statements
of Cash Flows
|
(in
millions)
|
|
|
|
Fifty-Two Weeks
Ended
|
|
|
Fifty-Two Weeks
Ended
|
|
|
|
May 29, 2022
|
|
|
May 30, 2021
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
888.2
|
|
|
$
|
1,300.9
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
375.4
|
|
|
|
387.7
|
|
Asset impairment
charges
|
|
|
284.8
|
|
|
|
95.5
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
68.7
|
|
Gain on
divestitures
|
|
|
—
|
|
|
|
(65.5)
|
|
Equity method
investment earnings in excess of distributions
|
|
|
(66.3)
|
|
|
|
(27.9)
|
|
Stock-settled
share-based payments expense
|
|
|
26.1
|
|
|
|
63.9
|
|
Contributions to
pension plans
|
|
|
(11.5)
|
|
|
|
(27.6)
|
|
Pension
benefit
|
|
|
(54.4)
|
|
|
|
(38.3)
|
|
Other items
|
|
|
(46.6)
|
|
|
|
9.1
|
|
Change in operating
assets and liabilities excluding effects of business acquisitions
and dispositions:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
(69.5)
|
|
|
|
66.1
|
|
Inventories
|
|
|
(232.8)
|
|
|
|
(364.3)
|
|
Deferred income taxes
and income taxes payable, net
|
|
|
(8.7)
|
|
|
|
(92.5)
|
|
Prepaid expenses and
other current assets
|
|
|
(10.1)
|
|
|
|
(8.5)
|
|
Accounts
payable
|
|
|
223.6
|
|
|
|
141.4
|
|
Accrued
payroll
|
|
|
(23.5)
|
|
|
|
(14.3)
|
|
Other accrued
liabilities
|
|
|
(71.9)
|
|
|
|
(60.2)
|
|
Deferred employer
payroll taxes
|
|
|
(25.5)
|
|
|
|
33.9
|
|
Net cash flows from
operating activities
|
|
|
1,177.3
|
|
|
|
1,468.1
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(464.4)
|
|
|
|
(506.4)
|
|
Proceeds from
divestitures, net of cash divested
|
|
|
0.1
|
|
|
|
160.9
|
|
Sale of property,
plant and equipment
|
|
|
20.2
|
|
|
|
2.5
|
|
Purchase of marketable
securities
|
|
|
(4.5)
|
|
|
|
(11.8)
|
|
Sale of marketable
securities
|
|
|
10.4
|
|
|
|
14.5
|
|
Other items
|
|
|
3.3
|
|
|
|
—
|
|
Net cash flows from
investing activities
|
|
|
(434.9)
|
|
|
|
(340.3)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Issuances of
commercial paper, maturities greater than 90 days
|
|
|
392.6
|
|
|
|
298.6
|
|
Repayment of
commercial paper, maturities greater than 90 days
|
|
|
(392.6)
|
|
|
|
(298.6)
|
|
Net issuance
(repayments) of other short-term borrowings
|
|
|
(523.1)
|
|
|
|
706.3
|
|
Issuance of long-term
debt
|
|
|
499.1
|
|
|
|
988.2
|
|
Repayment of long-term
debt
|
|
|
(48.5)
|
|
|
|
(2,514.5)
|
|
Debt issuance
costs
|
|
|
(2.5)
|
|
|
|
(6.2)
|
|
Repurchase of Conagra
Brands, Inc. common shares
|
|
|
(50.0)
|
|
|
|
(298.1)
|
|
Payment of intangible
asset financing arrangement
|
|
|
(12.6)
|
|
|
|
(12.9)
|
|
Cash dividends
paid
|
|
|
(581.8)
|
|
|
|
(474.6)
|
|
Exercise of stock
options and issuance of other stock awards, including tax
withholdings
|
|
|
(11.3)
|
|
|
|
(0.1)
|
|
Other items
|
|
|
(7.3)
|
|
|
|
2.3
|
|
Net cash flows from
financing activities
|
|
|
(738.0)
|
|
|
|
(1,609.6)
|
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash
|
|
|
(1.3)
|
|
|
|
7.7
|
|
Net change in cash and
cash equivalents and restricted cash
|
|
|
3.1
|
|
|
|
(474.1)
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
|
|
80.2
|
|
|
|
554.3
|
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$
|
83.3
|
|
|
$
|
80.2
|
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
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
|
|
Impact of foreign
exchange
|
|
—
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
Organic Net
Sales
|
$
|
1,158.8
|
|
$
|
1,233.0
|
|
$
|
234.3
|
|
$
|
287.4
|
|
$
|
2,913.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
7.2
|
%
|
|
3.4
|
%
|
|
0.9
|
%
|
|
21.5
|
%
|
|
6.2
|
%
|
Impact of foreign
exchange (pp)
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
0.1
|
|
Net sales from divested
businesses (pp)
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
0.1
|
|
|
0.5
|
|
Organic Net
Sales
|
|
7.2
|
%
|
|
4.3
|
%
|
|
2.4
|
%
|
|
21.6
|
%
|
|
6.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
(7.2)
|
%
|
|
(8.1)
|
%
|
|
(3.2)
|
%
|
|
4.5
|
%
|
|
(6.4)
|
%
|
Price/Mix
|
|
14.4
|
%
|
|
12.4
|
%
|
|
5.6
|
%
|
|
17.1
|
%
|
|
13.2
|
%
|
Q4
FY21
|
Grocery
& Snacks
|
Refrigerated
& Frozen
|
|
International
|
|
Foodservice
|
|
Total
Conagra Brands
|
|
Net
Sales
|
$
|
1,081.1
|
$
|
1,192.9
|
|
$
|
228.9
|
|
$
|
236.6
|
|
$
|
2,739.5
|
|
Net sales from divested
businesses
|
|
—
|
|
(10.5)
|
|
|
(0.1)
|
|
|
(0.2)
|
|
|
(10.8)
|
|
Organic Net
Sales
|
$
|
1,081.1
|
$
|
1,182.4
|
|
$
|
228.8
|
|
$
|
236.4
|
|
$
|
2,728.7
|
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
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
|
|
Impact of foreign
exchange
|
|
—
|
|
|
—
|
|
|
(16.2)
|
|
|
—
|
|
|
(16.2)
|
|
Organic Net
Sales
|
$
|
4,697.4
|
|
$
|
4,859.3
|
|
$
|
954.6
|
|
$
|
1,008.4
|
|
$
|
11,519.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
1.6
|
%
|
|
1.8
|
%
|
|
3.4
|
%
|
|
19.1
|
%
|
|
3.1
|
%
|
Impact of foreign
exchange (pp)
|
|
—
|
|
|
—
|
|
|
(1.7)
|
|
|
—
|
|
|
(0.1)
|
|
Net sales from divested
businesses (pp)
|
|
0.9
|
|
|
0.9
|
|
|
0.2
|
|
|
0.3
|
|
|
0.8
|
|
Organic Net
Sales
|
|
2.5
|
%
|
|
2.7
|
%
|
|
1.9
|
%
|
|
19.4
|
%
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
(4.4)
|
%
|
|
(5.3)
|
%
|
|
(5.2)
|
%
|
|
10.7
|
%
|
|
(3.8)
|
%
|
Price/Mix
|
|
6.9
|
%
|
|
8.0
|
%
|
|
7.1
|
%
|
|
8.7
|
%
|
|
7.6
|
%
|
FY21
|
Grocery
& Snacks
|
|
Refrigerated
& Frozen
|
|
International
|
|
Foodservice
|
|
Total Conagra
Brands
|
|
Net
Sales
|
$
|
4,624.7
|
|
$
|
4,774.6
|
|
$
|
938.6
|
|
$
|
846.8
|
|
$
|
11,184.7
|
|
Net sales from divested
businesses
|
|
(38.3)
|
|
|
(40.8)
|
|
|
(1.6)
|
|
|
(2.1)
|
|
|
(82.8)
|
|
Organic Net
Sales
|
$
|
4,586.4
|
|
$
|
4,733.8
|
|
$
|
937.0
|
|
$
|
844.7
|
|
$
|
11,101.9
|
|
FY21
|
|
Grocery
& Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra
Brands
|
|
Net
Sales
|
|
$
|
4,624.7
|
|
|
$
|
4,774.6
|
|
|
$
|
938.6
|
|
|
$
|
846.8
|
|
|
$
|
11,184.7
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
1.4
|
|
|
|
—
|
|
|
|
1.4
|
|
Net sales from divested
businesses 1
|
|
|
(38.3)
|
|
|
|
(40.8)
|
|
|
|
(1.6)
|
|
|
|
(2.1)
|
|
|
|
(82.8)
|
|
Organic Net
Sales
|
|
$
|
4,586.4
|
|
|
$
|
4,733.8
|
|
|
$
|
938.4
|
|
|
$
|
844.7
|
|
|
$
|
11,103.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
0.5
|
%
|
|
|
4.7
|
%
|
|
|
1.4
|
%
|
|
|
(12.6)
|
%
|
|
|
1.2
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
Impact of 53rd week
(pp)
|
|
|
2.0
|
|
|
|
2.1
|
|
|
|
1.8
|
|
|
|
1.2
|
|
|
|
1.9
|
|
Net sales from divested
businesses (pp)
|
|
|
3.7
|
|
|
|
0.7
|
|
|
|
0.4
|
|
|
|
1.4
|
|
|
|
2.0
|
|
Organic Net
Sales
|
|
|
6.2
|
%
|
|
|
7.5
|
%
|
|
|
3.8
|
%
|
|
|
(10.0)
|
%
|
|
|
5.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
3.6
|
%
|
|
|
3.8
|
%
|
|
|
(0.5)
|
%
|
|
|
(13.1)
|
%
|
|
|
2.0
|
%
|
Price/Mix
|
|
|
2.6
|
%
|
|
|
3.7
|
%
|
|
|
4.3
|
%
|
|
|
3.1
|
%
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY20
|
|
Grocery
& Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total
Conagra
Brands
|
|
Net
Sales
|
|
$
|
4,600.6
|
|
|
$
|
4,559.6
|
|
|
$
|
925.3
|
|
|
$
|
968.9
|
|
|
$
|
11,054.4
|
|
Impact of 53rd week
2
|
|
|
(89.4)
|
|
|
|
(90.0)
|
|
|
|
(15.9)
|
|
|
|
(13.0)
|
|
|
|
(208.3)
|
|
Net sales from divested
businesses 1
|
|
|
(191.1)
|
|
|
|
(64.2)
|
|
|
|
(5.6)
|
|
|
|
(17.7)
|
|
|
|
(278.6)
|
|
Organic Net
Sales
|
|
$
|
4,320.1
|
|
|
$
|
4,405.4
|
|
|
$
|
903.8
|
|
|
$
|
938.2
|
|
|
$
|
10,567.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2-year compound
growth
|
|
|
1.0 %
|
|
|
|
3.2 %
|
|
|
|
2.4 %
|
|
|
|
2.0 %
|
|
|
|
2.1 %
|
|
Organic 2-year compound
growth
|
|
|
4.3 %
|
|
|
|
5.1 %
|
|
|
|
2.8 %
|
|
|
|
3.7 %
|
|
|
|
4.4 %
|
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
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
|
|
Acquisitions and
divestitures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
Brand impairment
charges
|
|
90.7
|
|
|
103.9
|
|
|
14.4
|
|
|
—
|
|
|
—
|
|
|
209.0
|
|
Consulting fees on tax
matters
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.1
|
|
|
1.1
|
|
Legal
matters
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.0)
|
|
|
(5.0)
|
|
Environmental
matters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6.5)
|
|
|
(6.5)
|
|
Fire related
costs
|
|
0.9
|
|
|
2.8
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
11.3
|
|
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
|
%
|
Year-over-year % change
- Operating Profit
|
|
(19.9)
|
%
|
|
(34.4)
|
%
|
|
(78.4)
|
%
|
|
13.2
|
%
|
|
(33.3)
|
%
|
|
(25.2)
|
%
|
Year-over year % change
- Adjusted Operating Profit
|
|
17.0
|
%
|
|
(6.4)
|
%
|
|
(25.7)
|
%
|
|
53.0
|
%
|
|
(30.8)
|
%
|
|
13.5
|
%
|
Year-over-year bps
change - Operating Profit
|
|
(476) bps
|
|
|
(360) bps
|
|
|
(892) bps
|
|
|
(55) bps
|
|
|
|
|
|
(310) bps
|
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
184 bps
|
|
|
(156) bps
|
|
|
(310) bps
|
|
|
208 bps
|
|
|
|
|
|
96 bps
|
|
Q4
FY21
|
Grocery
& Snacks
|
|
Refrigerated
& Frozen
|
|
International
|
|
Foodservice
|
|
Corporate
Expense
|
|
Total Conagra
Brands
|
|
Operating
Profit
|
$
|
203.5
|
|
$
|
117.5
|
|
$
|
26.0
|
|
$
|
19.0
|
|
$
|
(79.6)
|
|
$
|
286.4
|
|
Restructuring
plans
|
|
1.9
|
|
|
6.9
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
|
15.9
|
|
Acquisitions and
divestitures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
Net gain on divestiture
of businesses
|
|
(0.1)
|
|
|
(3.3)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.4)
|
|
Brand impairment
charges
|
|
13.0
|
|
|
76.9
|
|
|
1.0
|
|
|
—
|
|
|
—
|
|
|
90.9
|
|
Consulting fees on tax
matters
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.7
|
|
Legal
matters
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
Corporate hedging
derivative losses (gains)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.4)
|
|
|
(8.4)
|
|
Adjusted Operating
Profit
|
$
|
218.3
|
|
$
|
198.0
|
|
$
|
27.0
|
|
$
|
19.0
|
|
$
|
(78.9)
|
|
$
|
383.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
18.8
|
%
|
|
9.9
|
%
|
|
11.4
|
%
|
|
8.0
|
%
|
|
|
|
|
10.5
|
%
|
Adjusted Operating
Profit Margin
|
|
20.2
|
%
|
|
16.6
|
%
|
|
11.8
|
%
|
|
8.0
|
%
|
|
|
|
|
14.0
|
%
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
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
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.4
|
|
|
|
2.4
|
|
Brand impairment
charges
|
|
|
90.7
|
|
|
|
103.9
|
|
|
|
14.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
209.0
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
1.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.1
|
|
|
|
2.8
|
|
Proceeds received from
the sale of a legacy investment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(19.6)
|
|
|
|
(19.6)
|
|
Environmental
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.5)
|
|
|
|
(6.5)
|
|
Fire related
costs
|
|
|
0.9
|
|
|
|
2.8
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
—
|
|
|
|
11.3
|
|
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
|
%
|
Year-over-year % change
- Operating Profit
|
|
|
(21.3)
|
%
|
|
|
(32.9)
|
%
|
|
|
(19.0)
|
%
|
|
|
(24.7)
|
%
|
|
|
(33.8)
|
%
|
|
|
(24.2)
|
%
|
Year-over year % change
- Adjusted Operating Profit
|
|
|
(8.5)
|
%
|
|
|
(23.9)
|
%
|
|
|
(8.6)
|
%
|
|
|
3.8
|
%
|
|
|
(9.3)
|
%
|
|
|
(15.3)
|
%
|
Year-over-year bps
change - Operating Profit
|
|
|
(533) bps
|
|
|
|
(597) bps
|
|
|
|
(305) bps
|
|
|
|
(347) bps
|
|
|
|
|
|
|
|
(421) bps
|
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
(231) bps
|
|
|
|
(495) bps
|
|
|
|
(164) bps
|
|
|
|
(121) bps
|
|
|
|
|
|
|
|
(312) bps
|
|
FY21
|
|
Grocery
& Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
1,092.7
|
|
|
$
|
836.5
|
|
|
$
|
131.8
|
|
|
$
|
80.0
|
|
|
$
|
(364.8)
|
|
|
$
|
1,776.2
|
|
Restructuring
plans
|
|
|
27.8
|
|
|
|
26.8
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
23.4
|
|
|
|
77.9
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5.7
|
|
|
|
5.7
|
|
Net gain on divestiture
of businesses
|
|
|
(55.1)
|
|
|
|
(3.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(58.4)
|
|
Brand impairment
charges
|
|
|
13.0
|
|
|
|
76.9
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
90.9
|
|
Early extinguishment of
debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
68.7
|
|
|
|
68.7
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.2
|
|
|
|
7.2
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.6
|
|
|
|
2.6
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(15.6)
|
|
|
|
(15.6)
|
|
Adjusted Operating
Profit
|
|
$
|
1,078.4
|
|
|
$
|
936.9
|
|
|
$
|
132.7
|
|
|
$
|
80.0
|
|
|
$
|
(272.8)
|
|
|
$
|
1,955.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
23.6
|
%
|
|
|
17.5
|
%
|
|
|
14.0
|
%
|
|
|
9.5
|
%
|
|
|
|
|
|
|
15.9
|
%
|
Adjusted Operating
Profit Margin
|
|
|
23.3
|
%
|
|
|
19.6
|
%
|
|
|
14.1
|
%
|
|
|
9.5
|
%
|
|
|
|
|
|
|
17.5
|
%
|
Conagra Brands,
Inc.
|
Reconciliation
of Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
Q4
FY22
|
|
Gross
profit
|
|
|
Selling, general
and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income before
income taxes
and equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable to
Conagra
Brands, Inc.
|
|
|
Diluted EPS
from income
attributable to
Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
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
derivative losses (gains)
|
|
|
0.9
|
|
|
|
—
|
|
|
|
0.9
|
|
|
|
0.9
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.7
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
46.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Brand impairment
charges 3
|
|
|
—
|
|
|
|
209.0
|
|
|
|
209.0
|
|
|
|
209.0
|
|
|
|
48.4
|
|
|
|
|
|
|
|
159.0
|
|
|
|
0.33
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.9
|
|
|
|
—
|
|
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)
|
|
Fire related
costs
|
|
|
9.1
|
|
|
|
2.2
|
|
|
|
11.3
|
|
|
|
11.3
|
|
|
|
2.8
|
|
|
|
|
|
|
|
8.5
|
|
|
|
0.02
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - reported
|
|
|
(183)
bps
|
|
|
|
127
bps
|
|
|
|
(310)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - adjusted
|
|
|
(147)
bps
|
|
|
|
(127)
bps
|
|
|
|
96
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
(1.1)
|
%
|
|
|
14.7
|
%
|
|
|
(25.2)
|
%
|
|
|
(32.0)
|
%
|
|
|
N/A
|
|
|
|
|
|
|
|
(48.6)
|
%
|
|
|
(48.4)
|
%
|
Year-over-year
change - adjusted
|
|
|
0.3
|
%
|
|
|
(7.8)
|
%
|
|
|
13.5
|
%
|
|
|
20.0
|
%
|
|
|
28.4
|
%
|
|
|
|
|
|
|
20.6
|
%
|
|
|
20.4
|
%
|
Q4
FY21
|
|
Gross
profit
|
|
|
Selling, general
and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income before
income taxes
and equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable to
Conagra
Brands, Inc.
|
|
|
Diluted EPS
from income
attributable to
Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
721.7
|
|
|
$
|
435.3
|
|
|
$
|
286.4
|
|
|
$
|
201.3
|
|
|
$
|
(75.2)
|
|
|
|
(32.0)
|
%
|
|
$
|
309.5
|
|
|
$
|
0.64
|
|
% of Net
Sales
|
|
|
26.3
|
%
|
|
|
15.9
|
%
|
|
|
10.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
8.0
|
|
|
|
7.9
|
|
|
|
15.9
|
|
|
|
15.9
|
|
|
|
4.1
|
|
|
|
—
|
|
|
|
11.8
|
|
|
|
0.02
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
1.0
|
|
|
|
1.0
|
|
|
|
1.0
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
0.7
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(8.4)
|
|
|
|
—
|
|
|
|
(8.4)
|
|
|
|
(8.4)
|
|
|
|
(2.1)
|
|
|
|
—
|
|
|
|
(6.3)
|
|
|
|
(0.01)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
75.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net gain on
divestiture of businesses
|
|
|
—
|
|
|
|
(3.4)
|
|
|
|
(3.4)
|
|
|
|
(3.4)
|
|
|
|
(5.6)
|
|
|
|
—
|
|
|
|
2.2
|
|
|
|
—
|
|
Brand impairment
charges
|
|
|
—
|
|
|
|
90.9
|
|
|
|
90.9
|
|
|
|
90.9
|
|
|
|
21.0
|
|
|
|
—
|
|
|
|
69.9
|
|
|
|
0.14
|
|
Consulting fee on tax
matters
|
|
|
—
|
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
0.7
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.5
|
|
|
|
—
|
|
Legal
matters
|
|
|
—
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.3
|
|
|
|
—
|
|
Tax restructuring of
Ardent Mills ownership interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
115.6
|
|
|
|
|
|
|
|
(115.6)
|
|
|
|
(0.24)
|
|
Capital loss valuation
allowance
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12.2
|
|
|
|
—
|
|
|
|
(12.2)
|
|
|
|
(0.03)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
Adjusted
|
|
$
|
721.3
|
|
|
$
|
262.7
|
|
|
$
|
383.4
|
|
|
$
|
298.3
|
|
|
$
|
70.5
|
|
|
|
21.3
|
%
|
|
$
|
260.8
|
|
|
$
|
0.54
|
|
% of Net
Sales
|
|
|
26.3
|
%
|
|
|
9.6
|
%
|
|
|
14.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
FY22
|
|
Gross
profit
|
|
|
Selling, general
and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income before
income taxes
and equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable to
Conagra
Brands, Inc.
|
|
|
Diluted EPS
from income
attributable to
Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
2,838.8
|
|
|
$
|
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
derivative losses (gains)
|
|
|
(4.4)
|
|
|
|
—
|
|
|
|
(4.4)
|
|
|
|
(4.4)
|
|
|
|
(1.1)
|
|
|
|
|
|
|
|
(3.3)
|
|
|
|
(0.01)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
244.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Brand impairment
charges 3
|
|
|
—
|
|
|
|
209.0
|
|
|
|
209.0
|
|
|
|
209.0
|
|
|
|
48.4
|
|
|
|
|
|
|
|
159.0
|
|
|
|
0.33
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
2.8
|
|
|
|
2.8
|
|
|
|
2.8
|
|
|
|
0.7
|
|
|
|
|
|
|
|
2.1
|
|
|
|
—
|
|
Proceeds received from
the sale of a legacy investment
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
(2.8)
|
|
|
|
(0.01)
|
|
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)
|
|
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
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - reported
|
|
|
(382)
bps
|
|
|
|
40
bps
|
|
|
|
(421)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - adjusted
|
|
|
(378)
bps
|
|
|
|
(47)
bps
|
|
|
|
(312)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
(10.7)
|
%
|
|
|
6.4
|
%
|
|
|
(24.2)
|
%
|
|
|
(26.7)
|
%
|
|
|
49.9
|
%
|
|
|
|
|
|
|
(31.6)
|
%
|
|
|
(30.8)
|
%
|
Year-over-year
change - adjusted
|
|
|
(10.5)
|
%
|
|
|
(2.4)
|
%
|
|
|
(15.3)
|
%
|
|
|
(15.4)
|
%
|
|
|
(9.0)
|
%
|
|
|
|
|
|
|
(11.6)
|
%
|
|
|
(10.6)
|
%
|
FY21
|
|
Gross
profit
|
|
|
Selling, general
and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income before
income taxes
and equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable to
Conagra
Brands, Inc.
|
|
|
Diluted EPS
from income
attributable to
Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
3,179.2
|
|
|
$
|
1,403.0
|
|
|
$
|
1,776.2
|
|
|
$
|
1,410.3
|
|
|
$
|
193.8
|
|
|
|
13.0
|
%
|
|
$
|
1,298.8
|
|
|
$
|
2.66
|
|
% of Net
Sales
|
|
|
28.4
|
%
|
|
|
12.5
|
%
|
|
|
15.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
37.1
|
|
|
|
40.8
|
|
|
|
77.9
|
|
|
|
77.9
|
|
|
|
19.6
|
|
|
|
|
|
|
|
58.3
|
|
|
|
0.12
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
5.7
|
|
|
|
5.7
|
|
|
|
5.7
|
|
|
|
1.4
|
|
|
|
|
|
|
|
4.3
|
|
|
|
0.01
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(15.6)
|
|
|
|
—
|
|
|
|
(15.6)
|
|
|
|
(15.6)
|
|
|
|
(3.9)
|
|
|
|
|
|
|
|
(11.7)
|
|
|
|
(0.02)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
258.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Net gain on
divestiture of businesses
|
|
|
—
|
|
|
|
(58.4)
|
|
|
|
(58.4)
|
|
|
|
(58.4)
|
|
|
|
(29.2)
|
|
|
|
|
|
|
|
(29.2)
|
|
|
|
(0.06)
|
|
Brand impairment
charges
|
|
|
—
|
|
|
|
90.9
|
|
|
|
90.9
|
|
|
|
90.9
|
|
|
|
21.0
|
|
|
|
|
|
|
|
69.9
|
|
|
|
0.14
|
|
Early extinguishment
of debt
|
|
|
—
|
|
|
|
68.7
|
|
|
|
68.7
|
|
|
|
68.7
|
|
|
|
17.2
|
|
|
|
|
|
|
|
51.5
|
|
|
|
0.11
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
7.2
|
|
|
|
7.2
|
|
|
|
7.2
|
|
|
|
1.8
|
|
|
|
|
|
|
|
5.4
|
|
|
|
0.01
|
|
Legal
matters
|
|
|
—
|
|
|
|
2.6
|
|
|
|
2.6
|
|
|
|
2.6
|
|
|
|
0.6
|
|
|
|
|
|
|
|
2.0
|
|
|
|
—
|
|
Tax restructuring of
Ardent Mills ownership interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
115.6
|
|
|
|
|
|
|
|
(115.6)
|
|
|
|
(0.24)
|
|
Capital loss valuation
allowance adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
37.0
|
|
|
|
|
|
|
|
(37.0)
|
|
|
|
(0.08)
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
|
|
|
|
(7.6)
|
|
|
|
(0.02)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
3,200.7
|
|
|
$
|
987.5
|
|
|
$
|
1,955.2
|
|
|
$
|
1,589.3
|
|
|
$
|
382.5
|
|
|
|
22.9
|
%
|
|
$
|
1,289.1
|
|
|
$
|
2.64
|
|
% of Net
Sales
|
|
|
28.6
|
%
|
|
|
8.8
|
%
|
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - reported
|
|
|
66
bps
|
|
|
|
(213)
bps
|
|
|
|
279
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - adjusted
|
|
|
50
bps
|
|
|
|
(73)
bps
|
|
|
|
101
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
3.6
|
%
|
|
|
(13.5)
|
%
|
|
|
22.7
|
%
|
|
|
45.4
|
%
|
|
|
(3.7)
|
%
|
|
|
|
|
|
|
54.6
|
%
|
|
|
54.7
|
%
|
Year-over-year
change - adjusted
|
|
|
3.0
|
%
|
|
|
(6.5)
|
%
|
|
|
7.4
|
%
|
|
|
14.6
|
%
|
|
|
12.7
|
%
|
|
|
|
|
|
|
15.6
|
%
|
|
|
15.8
|
%
|
FY20
|
|
Gross
profit
|
|
|
Selling, general
and
administrative
expenses
|
|
|
Operating
profit 1
|
|
|
Income before
income taxes
and equity
method
investment
earnings
|
|
|
Income tax
expense
|
|
|
Income tax
rate
|
|
|
Net income
attributable to
Conagra
Brands, Inc.
|
|
|
Diluted EPS
from income
attributable to
Conagra
Brands, Inc
common
stockholders
|
|
Reported
|
|
$
|
3,069.6
|
|
|
$
|
1,622.5
|
|
|
$
|
1,447.1
|
|
|
$
|
969.9
|
|
|
$
|
201.3
|
|
|
|
19.3
|
%
|
|
$
|
840.1
|
|
|
$
|
1.72
|
|
% of Net
Sales
|
|
|
27.8
|
%
|
|
|
14.7
|
%
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
33.2
|
|
|
|
105.7
|
|
|
|
138.9
|
|
|
|
139.5
|
|
|
|
32.7
|
|
|
|
|
|
|
|
106.8
|
|
|
|
0.22
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
5.3
|
|
|
|
5.3
|
|
|
|
5.3
|
|
|
|
1.4
|
|
|
|
|
|
|
|
3.9
|
|
|
|
0.01
|
|
Gain on Ardent JV asset
sale
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.0)
|
|
|
|
|
|
|
|
(3.1)
|
|
|
|
(0.01)
|
|
Corporate hedging
losses (gains)
|
|
|
5.5
|
|
|
|
—
|
|
|
|
5.5
|
|
|
|
5.5
|
|
|
|
1.4
|
|
|
|
|
|
|
|
4.1
|
|
|
|
0.01
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
230.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Environmental
matters
|
|
|
—
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
1.6
|
|
|
|
|
|
|
|
5.0
|
|
|
|
0.01
|
|
Pension settlement and
valuation adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
42.9
|
|
|
|
10.8
|
|
|
|
|
|
|
|
32.1
|
|
|
|
0.07
|
|
Impairment of business
held for sale
|
|
|
—
|
|
|
|
59.0
|
|
|
|
59.0
|
|
|
|
59.0
|
|
|
|
4.0
|
|
|
|
|
|
|
|
55.0
|
|
|
|
0.11
|
|
Contract settlement
gain
|
|
|
—
|
|
|
|
(11.9)
|
|
|
|
(11.9)
|
|
|
|
(11.9)
|
|
|
|
(3.0)
|
|
|
|
|
|
|
|
(8.9)
|
|
|
|
(0.02)
|
|
Loss on divestiture of
businesses
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
(0.2)
|
|
|
|
|
|
|
|
1.9
|
|
|
|
—
|
|
Intangible impairment
charges
|
|
|
—
|
|
|
|
165.5
|
|
|
|
165.5
|
|
|
|
165.5
|
|
|
|
38.5
|
|
|
|
|
|
|
|
127.0
|
|
|
|
0.26
|
|
Legal
matters
|
|
|
—
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
0.9
|
|
|
|
|
|
|
|
2.6
|
|
|
|
0.01
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
51.2
|
|
|
|
|
|
|
|
(51.2)
|
|
|
|
(0.10)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Adjusted
|
|
$
|
3,108.3
|
|
|
$
|
1,056.4
|
|
|
$
|
1,821.2
|
|
|
$
|
1,387.5
|
|
|
$
|
339.6
|
|
|
|
23.2
|
%
|
|
$
|
1,115.3
|
|
|
$
|
2.28
|
|
% of Net
Sales
|
|
|
28.1
|
%
|
|
|
9.6
|
%
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2-year compound
growth - reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.5 %
|
|
2-year compound
growth - adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.7 %
|
|
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)
|
|
|
|
May 29,
2022
|
|
|
May 30,
2021
|
|
|
%
Change
|
|
Net cash flows from
operating activities
|
|
$
|
1,177.3
|
|
|
$
|
1,468.1
|
|
|
|
(19.8)
|
%
|
Additions to property,
plant and equipment
|
|
|
(464.4)
|
|
|
|
(506.4)
|
|
|
|
(8.3)
|
%
|
Free cash
flow
|
|
$
|
712.9
|
|
|
$
|
961.7
|
|
|
|
(25.9)
|
%
|
|
|
Q4
FY22
|
|
|
Q4
FY21
|
|
|
Q4
FY20
|
|
Notes
payable
|
|
$
|
184.3
|
|
|
$
|
707.4
|
|
|
$
|
1.1
|
|
Current installments of
long-term debt
|
|
|
707.3
|
|
|
|
23.1
|
|
|
|
845.5
|
|
Senior long-term debt,
excluding current installments
|
|
|
8,088.2
|
|
|
|
8,275.2
|
|
|
|
8,900.8
|
|
Total
Debt
|
|
$
|
8,979.8
|
|
|
$
|
9,005.7
|
|
|
$
|
9,747.4
|
|
Less: Cash
|
|
|
83.3
|
|
|
|
79.2
|
|
|
|
553.3
|
|
Net
Debt
|
|
$
|
8,896.5
|
|
|
$
|
8,926.5
|
|
|
$
|
9,194.1
|
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
|
|
FY22
|
|
Net
Debt
|
|
$
|
8,896.5
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
888.2
|
|
Add Back: Income tax
expense
|
|
|
290.5
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
—
|
|
Interest expense,
net
|
|
|
379.9
|
|
Depreciation
|
|
|
316.1
|
|
Amortization
|
|
|
59.3
|
|
Earnings before
interest, taxes, depreciation, and amortization
(EBITDA)
|
|
$
|
1,934.0
|
|
Restructuring
plans 1
|
|
|
34.8
|
|
Acquisitions and
divestitures
|
|
|
2.4
|
|
Corporate hedging
derivative gains
|
|
|
(4.4)
|
|
Consulting fees on tax
matters
|
|
|
2.8
|
|
Impairment of
businesses held for sale
|
|
|
70.1
|
|
Proceeds received from
the sale of a legacy investment
|
|
|
(3.3)
|
|
Legal
matters
|
|
|
(19.6)
|
|
Environmental
matters
|
|
|
(6.5)
|
|
Fire related
costs
|
|
|
11.3
|
|
Brand impairment
charges 2
|
|
|
207.0
|
|
Adjusted
EBITDA
|
|
$
|
2,228.6
|
|
|
|
|
|
|
Net Debt to Adjusted
EBITDA
|
|
|
4.0
|
|
1 Excludes
comparability items related to depreciation.
|
2 Excludes
comparability items attributable to noncontrolling
interests.
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
|
|
Q4
FY22
|
|
|
Q4
FY21
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
158.9
|
|
|
$
|
309.5
|
|
|
|
(48.6)
|
%
|
Add Back: Income tax
expense (benefit)
|
|
|
26.7
|
|
|
|
(75.2)
|
|
|
|
|
|
Income tax benefit
(expense) attributable to noncontrolling interests
|
|
|
0.4
|
|
|
|
(0.2)
|
|
|
|
|
|
Interest expense,
net
|
|
|
96.2
|
|
|
|
98.4
|
|
|
|
|
|
Depreciation
|
|
|
75.0
|
|
|
|
83.2
|
|
|
|
|
|
Amortization
|
|
|
14.8
|
|
|
|
14.9
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
372.0
|
|
|
$
|
430.6
|
|
|
|
(13.6)
|
%
|
Restructuring
plans 1
|
|
|
9.5
|
|
|
|
8.7
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
0.2
|
|
|
|
1.0
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
0.9
|
|
|
|
(8.4)
|
|
|
|
|
|
Consulting fees on tax
matters
|
|
|
1.1
|
|
|
|
0.7
|
|
|
|
|
|
Net gain on divestiture
of businesses
|
|
|
—
|
|
|
|
(3.4)
|
|
|
|
|
|
Legal
matters
|
|
|
(5.0)
|
|
|
|
0.3
|
|
|
|
|
|
Environmental
matters
|
|
|
(6.5)
|
|
|
|
—
|
|
|
|
|
|
Fire related
costs
|
|
|
11.3
|
|
|
|
—
|
|
|
|
|
|
Brand impairment
charges 2
|
|
|
207.0
|
|
|
|
90.9
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
590.5
|
|
|
$
|
520.4
|
|
|
|
13.5
|
%
|
1 Excludes
comparability items related to depreciation.
|
2 Excludes
comparability items attributable to noncontrolling
interests.
|
|
|
FY22
|
|
|
FY21
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
888.2
|
|
|
$
|
1,298.8
|
|
|
|
(31.6)
|
%
|
Add Back: Income tax
expense
|
|
|
290.5
|
|
|
|
193.8
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
—
|
|
|
|
(0.8)
|
|
|
|
|
|
Interest expense,
net
|
|
|
379.9
|
|
|
|
420.4
|
|
|
|
|
|
Depreciation
|
|
|
316.1
|
|
|
|
328.0
|
|
|
|
|
|
Amortization
|
|
|
59.3
|
|
|
|
59.7
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
1,934.0
|
|
|
$
|
2,299.9
|
|
|
|
(15.9)
|
%
|
Restructuring
plans 1
|
|
|
34.8
|
|
|
|
45.0
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
2.4
|
|
|
|
5.7
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(4.4)
|
|
|
|
(15.6)
|
|
|
|
|
|
Early extinguishment of
debt
|
|
|
—
|
|
|
|
68.7
|
|
|
|
|
|
Consulting fees on tax
matters
|
|
|
2.8
|
|
|
|
7.2
|
|
|
|
|
|
Impairment of
businesses held for sale
|
|
|
70.1
|
|
|
|
—
|
|
|
|
|
|
Proceeds received from
the sale of a legacy investment
|
|
|
(3.3)
|
|
|
|
—
|
|
|
|
|
|
Net gain on divestiture
of businesses
|
|
|
—
|
|
|
|
(58.4)
|
|
|
|
|
|
Legal
matters
|
|
|
(19.6)
|
|
|
|
2.6
|
|
|
|
|
|
Environmental
matters
|
|
|
(6.5)
|
|
|
|
—
|
|
|
|
|
|
Fire related
costs
|
|
|
11.3
|
|
|
|
—
|
|
|
|
|
|
Brand impairment
charges 2
|
|
|
207.0
|
|
|
|
90.9
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
2,228.6
|
|
|
$
|
2,446.0
|
|
|
|
(8.9)
|
%
|
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.