CHICAGO, Oct. 1, 2020 /PRNewswire/ -- Today Conagra
Brands, Inc. (NYSE: CAG) reported results for the first quarter of
fiscal year 2021, which ended on August 30,
2020. All comparisons are against the prior-year fiscal
period, unless otherwise noted. Certain terms used in this
release, including "Organic net sales," "EBITDA," "Legacy
Pinnacle," and certain "adjusted" results, are defined under the
section entitled "Definitions." See page 6 for more
information.
Highlights
- First quarter net sales increased 12.1%, and organic net sales
increased 15.0%, with significant growth in each of the Company's
three retail segments on both a reported and an organic basis.
- All four of the Company's segments reported margin expansion in
the quarter. Total Company operating margin increased 800 basis
points to 19.0%, and adjusted operating margin increased 450 basis
points to 20.2%.
- Diluted earnings per share from continuing operations (EPS) for
the first quarter grew 86.1% to $0.67, and adjusted EPS grew 62.8% to
$0.70.
- Subsequent to quarter-end, the Company's board of directors
approved a 29% increase in the quarterly dividend to $0.275 per share, or $1.10 per share on an annualized basis. The
increase was enabled by the Company's de-leveraging progress, which
is ahead of its expected cadence, and reflects management's ongoing
confidence in the long-term strength of the business.
- The Company is providing guidance for the second quarter of
fiscal 2021:
-
- Organic net sales growth is expected in the range of +6% to
+8%
- Adjusted operating margin is expected in the range of 18.0% to
18.5%
- Adjusted EPS is expected in the range of $0.70 to $0.74
- The Company expects to reach its net leverage ratio target of
3.5x to 3.6x by the third quarter of fiscal 2021.
- The Company is reaffirming its fiscal 2022 algorithm.
CEO Perspective
Sean
Connolly, president and chief executive officer of Conagra
Brands, commented, "Fiscal 2021 is off to a strong start. Our
first quarter results demonstrate that our business is healthy, our
products are relevant, and our capabilities are strong. We
exceeded our expectations on net sales, profitability, and
de-leveraging, and continued to make investments to ensure the
physical availability of our products, maintain momentum with
consumers, and build brand health. Now that customers have
begun rebuilding inventories and we have increased production
capacity in certain areas of our business, we are selectively
increasing our marketing support for the businesses where capacity
permits. These investments are intended to help sustain brand
momentum and maximize the long-term value of our consumer
base."
He continued, "Our execution of the Conagra Way for the past
five years has positioned us very well to capture the benefits of
the recent consumer behavior shifts, many of which we believe will
continue well into the future. Our decision to increase the
dividend, coupled with our commitment to continue to invest in the
business, reflects our confidence in Conagra Brands and in our
ability to create long-term value for our shareholders."
Total Company First Quarter Results
In the quarter,
net sales increased 12.1% to $2.7
billion. The growth in reported net sales primarily
reflects:
- a 2.4% net decrease from the divestitures of the Direct Store
Delivery (DSD) snacks business, the Lender's Bagel business, and
the exit of the private label peanut butter business (collectively,
the Sold Businesses);
- a 0.5% net decrease due to foreign exchange; and
- a 15.0% increase in organic net sales.
The 15.0% increase in organic net sales was driven by a 10.9%
increase in volume and a favorable price/mix impact of 4.1%.
The volume increase was primarily driven by consumers increasing
their at-home food consumption as a result of the COVID-19
pandemic, which benefitted the Company's retail segments but
negatively impacted the Foodservice segment. The price/mix
favorability was driven by favorable pricing and sales mix;
approximately 70 bps of the increase in net sales and organic net
sales reflects a change in estimate associated with the prior
quarter's trade expense accrual.
Gross profit increased 21.9% to $810
million in the quarter, and adjusted gross profit increased
21.7% to $823 million. Gross
margin increased 245 basis points to 30.2% in the quarter, and
adjusted gross margin increased 244 basis points to 30.7%.
The net sales increase, together with supply chain realized
productivity, favorable margin mix, cost synergies associated with
the Pinnacle Foods acquisition, and fixed cost leverage combined to
more than offset higher input costs, COVID-19-related expenses, the
impact of foreign exchange, and lost profit from the Sold
Businesses. The previously mentioned change in trade expense
estimate increased adjusted gross margin by approximately 40 basis
points in the quarter.
Selling, general, and administrative expense (SG&A), which
includes advertising and promotional expense (A&P), decreased
25.1% to $300 million in the
quarter. Adjusted SG&A, which excludes A&P, decreased
7.6% to $237 million, primarily as a
result of cost synergies associated with the Pinnacle Foods
acquisition as well as temporarily reduced spending as employees
worked from home and business travel was eliminated. A&P
for the quarter increased 1.5% to $46
million.
Net interest expense was $114
million in the quarter. Compared to the prior-year
period, net interest expense decreased 7.3% to $9 million, driven by lower levels of debt
outstanding.
The Company's 490 million average diluted shares outstanding was
an increase of approximately 2 million shares versus the prior-year
period.
In the quarter, net income attributable to Conagra Brands
increased 89.4% to $329 million, or
$0.67 per diluted share.
Adjusted net income attributable to Conagra Brands increased 64.2%
to $344 million, or $0.70 per diluted share, in the quarter.
The increases were driven primarily by the increase in gross profit
and reduction in SG&A. The increase in adjusted EPS in
the quarter was primarily driven by the increase in adjusted net
income attributable to Conagra Brands, slightly offset by higher
average diluted shares outstanding.
Adjusted EBITDA, which includes equity method investment
earnings and pension and postretirement non-service income,
increased 34.5% to $647 million in
the quarter primarily driven by the previously mentioned increase
in adjusted Gross Profit and decrease in adjusted SG&A.
Grocery & Snacks Segment First Quarter Results
Net
sales for the Grocery & Snacks segment increased 16.0% to
$1.1 billion in the quarter
reflecting:
- a 4.7% decrease from the impact of the Sold Businesses;
and
- a 20.7% increase in organic net sales.
On an organic net sales basis, volume increased 17.2% and
price/mix increased 3.5%. Volume benefited from increased
at-home eating and replenishment of customer inventory
levels. The increase in price/mix was primarily driven by
favorable pricing and mix as well as the previously mentioned
change in trade expense estimate. Many grocery and snack
brands experienced strong double-digit organic sales growth in the
quarter, including Hunts, PAM, Vlasic, Duncan Hines, Wishbone, Slim Jim, Orville Redenbacher's, Act II, Swiss Miss, and
Snack Pack.
Operating profit for the segment increased 86.9% to $284 million in the quarter. Adjusted
operating profit increased 43.0% to $298
million, primarily driven by organic net sales growth,
supply chain realized productivity, and cost synergies associated
with the Pinnacle Foods acquisition. These benefits were
partially offset by input cost inflation, COVID-19-related costs,
and the lost profit from the Sold Businesses.
Refrigerated & Frozen Segment First Quarter
Results
Net sales for the Refrigerated & Frozen segment
increased 17.9% to $1.1 billion in
the quarter reflecting:
- a 1.1% decrease from the impact of the Sold Businesses;
and
- a 19.0% increase in organic net sales.
On an organic net sales basis, volume increased 12.8% and
price/mix increased 6.2%. Volume benefited from increased
at-home eating and replenishment of customer inventory
levels. The price/mix increase was primarily driven by
favorable pricing and mix as well as the previously mentioned
change in trade expense estimate. Many brands, including
Birds Eye, Marie Callender's, Hungry
Man, Healthy Choice, P.F. Chang's Home Menu, Odom's Tennessee
Pride, Gardein, Hebrew National, and Reddi-wip experienced strong
double-digit organic net sales growth in the quarter.
Operating profit for the segment increased 54.3% to $240 million in the quarter. Adjusted
operating profit increased 42.8% to $246
million as the benefits of higher organic net sales, supply
chain realized productivity, and cost synergies associated with the
Pinnacle Foods acquisition more than offset higher input costs,
COVID-19-related costs, and lost profit from the Sold
Businesses.
International Segment First Quarter Results
Net sales
for the International segment increased 7.2% to $219 million in the quarter reflecting:
- a 5.9% decrease from the unfavorable impact of foreign
exchange; and
- a 13.1% increase in organic net sales.
On an organic net sales basis, volume increased 10.5% and
price/mix increased 2.6%. During the quarter, the segment
benefited from elevated demand related to the impacts of the
pandemic, and the segment experienced strong growth in each of its
regions. The segment also benefitted from the previously
mentioned change in trade expense estimate.
Operating profit for the segment increased 55.5% to $39 million in the quarter. Adjusted
operating profit increased 47.7% to $38
million as the increase in organic net sales, together with
the benefits from favorable product mix and supply chain realized
productivity were only partially offset by higher input costs and
the impact of foreign exchange.
Foodservice Segment First Quarter Results
Net sales
for the Foodservice segment decreased 21.8% to $195 million in the quarter reflecting:
- a 1.5% decrease from the impact of the Sold Businesses;
and
- a 20.3% decrease in organic net sales.
On an organic net sales basis, volume decreased 24.2% primarily
driven by lower restaurant traffic as a result of the COVID-19
pandemic. Price/mix was favorable 3.9% in the quarter
primarily driven by favorable mix and increased pricing to offset
higher input costs.
Operating profit for the segment decreased 20.0% to $25 million in the quarter, as the impacts of
lower organic net sales and higher input costs more than offset the
impacts of supply chain realized productivity, lower inventory
write-offs, and cost synergies associated with the Pinnacle Foods
acquisition.
Other First Quarter Items
Corporate expenses decreased
22.5% to $77 million in the quarter,
primarily driven by lower corporate restructuring expense.
Adjusted corporate expense increased 5.6% to $66 million in the quarter, as higher share-based
payment and deferred compensation expense more than offset the
benefit of cost synergies associated with the Pinnacle Foods
acquisition.
Pension and post-retirement non-service income was $14 million in the quarter compared to
$10 million of income in the
prior-year period.
In the quarter, equity method investment earnings were
$6.5 million. On a reported
basis, the 46.8% decrease was primarily driven by a gain on the
sale of an asset in the prior year. On an adjusted basis, the
4.5% decrease was primarily driven by less favorable market
conditions in the Ardent Mills joint venture.
In the quarter, the effective tax rate was 20.8%, and the
adjusted effective tax rate was 22.8%.
In the quarter, the Company paid a dividend of $0.2125 per share.
The Company remains committed to a solid investment grade credit
rating. Since the closing of the Pinnacle Foods acquisition
through the end of the first quarter of fiscal 2021, the Company
has reduced total gross debt by more than $1.9 billion, resulting in total debt of
$9.6 billion and net debt of
$9.2 billion as of the end of the
first quarter of fiscal 2021. In the last four fiscal
quarters ending August 30, 2020, the
Company generated $995 million in Net
income attributable to Conagra Brands. As of the first
quarter of fiscal 2021, the Company's net debt to last twelve month
adjusted EBITDA ratio was 3.7x.
Dividend Increase
Subsequent to quarter-end, the
Company's board of directors approved a quarterly dividend payment
of $0.275 per share of Conagra common
stock to be paid on December 2, 2020
to stockholders of record as of the close of business on
November 2, 2020.
Portfolio Update
On September
28, 2020, the Company entered into a definitive agreement to
sell its H.K. Anderson business to Utz Quality Foods, LLC.
The transaction is subject to customary closing conditions and is
expected to be completed in the second quarter of fiscal
2021. In fiscal 2020, the business generated approximately
$10 million in net sales and was
primarily reported in the Grocery & Snacks segment.
Outlook
The impact of the COVID-19 pandemic on the
Company's full year fiscal 2021 consolidated results is
uncertain. The Company continues to expect demand in retail
to remain elevated and demand in foodservice to remain challenged
versus historical norms. However, the degree and timing of
changes in retail and foodservice demand levels are difficult to
predict with enough certainty to provide a full-year outlook at
this time.
In the second quarter to-date, the Company has continued to see
a significant increase in demand in its retail segments. The
Company has also continued to see reduced demand in its Foodservice
segment when compared to pre-COVID-19 demand levels.
COVID-19-related costs have also continued to impact the
business. Based on these factors, the Company is providing
second quarter fiscal 2021 guidance of:
- Organic net sales growth of +6% to +8%
- Adjusted operating margin of 18.0% to 18.5%
- Adjusted EPS of $0.70 to
$0.74
The Company's second quarter guidance continues to assume that
the end-to-end supply chain operates effectively during this period
of heightened demand.
The Company expects to achieve its leverage ratio target of 3.5x
to 3.6x by the third quarter of fiscal 2021.
The Company is reaffirming its fiscal 2022 algorithm of:
- Organic net sales growth (3-year CAGR ending fiscal 2022) of
+1% to +2%
- Adjusted operating margin of 18% to 19%
- Adjusted EPS of $2.66 to
$2.76
- Free cash flow conversion (percentage of adjusted net income
3-year average) of 95%+
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 $0.67 EPS for the
first 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 $0.04 per diluted
share of net expense related to restructuring plans
- Approximately $0.02 per diluted
share of net benefit related to unusual tax items
- Approximately $0.01 per diluted
share of net expense due to rounding
The following are included in the $0.36 EPS for the first quarter of fiscal 2020
(EPS amounts rounded and after tax). Please see the
reconciliation schedules at the end of this release for additional
details.
- Approximately $0.08 per diluted
share of net expense related to restructuring plans
- Approximately $0.01 per diluted
share of net expense related to corporate hedging activity
- Approximately $0.01 per diluted
share of net benefit related to a gain on an asset sale in the
Ardent Mills joint venture
- Approximately $0.06 per diluted
share of net expense related to an impairment of goodwill
associated with the planned divestiture of the DSD snacks
business
- Approximately $0.03 per diluted
share of net expense related to an impairment of intangible
assets
- Approximately $0.10 per diluted
share of net benefit related to unusual tax items primarily related
to the reorganization of various Legacy Pinnacle legal entities and
state tax planning strategies
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 Legacy Pinnacle refer to either business or income
and expenses that were a part of the acquired Pinnacle Foods
business and exclude any income or expense associated with the
Legacy Conagra business.
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 5016282. 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 October 1,
2021.
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®, Marie Callender's®,
Banquet®, Healthy Choice®, Slim Jim®, Reddi-wip®, and Vlasic®, 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: 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 recent coronavirus (COVID-19) pandemic on our business,
suppliers, consumers, customers and employees; risks related to the
availability and prices of raw materials, including any negative
effects caused by inflation, weather conditions or health
pandemics; disruptions or inefficiencies in our supply chain and/or
operations, including from the recent COVID-19 pandemic; 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; 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 report, which
speak only as of the date of this report. 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, adjusted pension and post-retirement non-service income,
adjusted net interest expense, free cash flow, net debt, adjusted
equity method investment earnings, 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, adjusted EPS, net debt, and net leverage
ratio 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.
For more information, please contact:
MEDIA:
Mike Cummins
312-549-5257
Michael.Cummins@conagra.com
INVESTORS: Brian Kearney
312-549-5002
IR@conagra.com
Conagra Brands,
Inc.
Consolidated
Statements of Earnings
(in
millions)
(unaudited)
|
|
|
|
FIRST
QUARTER
|
|
|
|
Thirteen weeks
ended
|
|
|
Thirteen weeks
ended
|
|
|
|
|
|
|
|
August 30,
2020
|
|
|
August 25,
2019
|
|
|
Percent Change
|
|
Net sales
|
|
$
|
2,678.9
|
|
|
$
|
2,390.7
|
|
|
|
12.1
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
1,868.7
|
|
|
|
1,726.2
|
|
|
|
8.3
|
%
|
Selling, general and
administrative expenses
|
|
|
300.3
|
|
|
|
400.8
|
|
|
|
(25.1)
|
%
|
Pension and
postretirement non-service expense (income)
|
|
|
(13.8)
|
|
|
|
(9.5)
|
|
|
|
45.9
|
%
|
Interest expense,
net
|
|
|
113.7
|
|
|
|
122.7
|
|
|
|
(7.3)
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
410.0
|
|
|
|
150.5
|
|
|
|
172.4
|
%
|
Income tax expense
(benefit)
|
|
|
86.7
|
|
|
|
(11.5)
|
|
|
N/A
|
|
Equity method
investment earnings
|
|
|
6.5
|
|
|
|
12.3
|
|
|
|
(46.8)
|
%
|
Net income
|
|
$
|
329.8
|
|
|
$
|
174.3
|
|
|
|
89.3
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
0.8
|
|
|
|
0.5
|
|
|
|
75.2
|
%
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
329.0
|
|
|
$
|
173.8
|
|
|
|
89.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
0.67
|
|
|
$
|
0.36
|
|
|
|
86.1
|
%
|
Weighted average
shares outstanding
|
|
|
488.2
|
|
|
|
486.8
|
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
0.67
|
|
|
$
|
0.36
|
|
|
|
86.1
|
%
|
Weighted average
share and share equivalents outstanding
|
|
|
489.9
|
|
|
|
487.9
|
|
|
|
0.4
|
%
|
Conagra Brands,
Inc.
Consolidated Balance
Sheets
(in
millions)
(unaudited)
|
|
|
|
August 30,
2020
|
|
|
May 31,
2020
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
438.2
|
|
|
$
|
553.3
|
|
Receivables, less
allowance for doubtful accounts of $2.5 and $2.6
|
|
|
807.8
|
|
|
|
860.8
|
|
Inventories
|
|
|
1,579.6
|
|
|
|
1,376.6
|
|
Prepaid expenses and
other current assets
|
|
|
108.4
|
|
|
|
93.9
|
|
Current assets held
for sale
|
|
|
1.1
|
|
|
|
1.3
|
|
Total current
assets
|
|
|
2,935.1
|
|
|
|
2,885.9
|
|
Property, plant and
equipment, net
|
|
|
2,430.7
|
|
|
|
2,389.6
|
|
Goodwill
|
|
|
11,439.6
|
|
|
|
11,433.9
|
|
Brands, trademarks
and other intangibles, net
|
|
|
4,302.9
|
|
|
|
4,315.5
|
|
Other
assets
|
|
|
1,263.3
|
|
|
|
1,273.4
|
|
Noncurrent assets
held for sale
|
|
|
5.7
|
|
|
|
5.7
|
|
|
|
$
|
22,377.3
|
|
|
$
|
22,304.0
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
0.6
|
|
|
$
|
1.1
|
|
Current installments
of long-term debt
|
|
|
718.6
|
|
|
|
845.5
|
|
Accounts
payable
|
|
|
1,523.3
|
|
|
|
1,525.6
|
|
Accrued
payroll
|
|
|
110.4
|
|
|
|
189.4
|
|
Other accrued
liabilities
|
|
|
749.0
|
|
|
|
725.8
|
|
Total current
liabilities
|
|
|
3,101.9
|
|
|
|
3,287.4
|
|
Senior long-term
debt, excluding current installments
|
|
|
8,897.6
|
|
|
|
8,900.8
|
|
Other noncurrent
liabilities
|
|
|
2,178.8
|
|
|
|
2,165.1
|
|
Total stockholders'
equity
|
|
|
8,199.0
|
|
|
|
7,950.7
|
|
|
|
$
|
22,377.3
|
|
|
$
|
22,304.0
|
|
Conagra Brands, Inc.
and Subsidiaries
Condensed
Consolidated Statements of Cash Flows
(in
millions)
(unaudited)
|
|
|
|
Thirteen weeks
ended
|
|
|
|
August
30,
2020
|
|
|
August
25,
2019
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
329.8
|
|
|
$
|
174.3
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
95.2
|
|
|
|
96.7
|
|
Asset impairment
charges
|
|
|
3.4
|
|
|
|
67.0
|
|
Loss on
divestiture
|
|
|
-
|
|
|
|
1.7
|
|
Distributions in
excess of earnings of affiliates
|
|
|
4.0
|
|
|
|
0.2
|
|
Stock-settled
share-based payments expense
|
|
|
16.5
|
|
|
|
10.2
|
|
Contributions to
pension plans
|
|
|
(5.9)
|
|
|
|
(3.4)
|
|
Pension
benefit
|
|
|
(9.6)
|
|
|
|
(5.7)
|
|
Other items
|
|
|
24.3
|
|
|
|
(2.6)
|
|
Change in operating
assets and liabilities excluding effects of business acquisitions
and dispositions:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
52.4
|
|
|
|
41.7
|
|
Inventories
|
|
|
(202.8)
|
|
|
|
(198.0)
|
|
Deferred income taxes
and income taxes payable, net
|
|
|
15.6
|
|
|
|
(23.9)
|
|
Prepaid expenses and
other current assets
|
|
|
(16.7)
|
|
|
|
(16.1)
|
|
Accounts
payable
|
|
|
20.8
|
|
|
|
94.3
|
|
Accrued
payroll
|
|
|
(79.1)
|
|
|
|
(77.6)
|
|
Other accrued
liabilities
|
|
|
36.6
|
|
|
|
48.2
|
|
Net cash flows from
operating activities
|
|
|
284.5
|
|
|
|
207.0
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(145.5)
|
|
|
|
(106.6)
|
|
Sale of property,
plant and equipment
|
|
|
0.6
|
|
|
|
1.0
|
|
Purchase of marketable
securities
|
|
|
(1.5)
|
|
|
|
(16.9)
|
|
Sale of marketable
securities
|
|
|
3.4
|
|
|
|
18.2
|
|
Other items
|
|
|
0.1
|
|
|
|
(3.2)
|
|
Net cash flows from
investing activities
|
|
|
(142.9)
|
|
|
|
(107.5)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Net short-term
borrowings
|
|
|
(0.5)
|
|
|
|
55.0
|
|
Repayment of long-term
debt
|
|
|
(133.4)
|
|
|
|
(205.8)
|
|
Payment of intangible
asset financing arrangement
|
|
|
(12.9)
|
|
|
|
(13.6)
|
|
Cash dividends
paid
|
|
|
(103.5)
|
|
|
|
(103.3)
|
|
Exercise of stock
options and issuance of other stock awards, including tax
withholdings
|
|
|
(9.3)
|
|
|
|
(3.1)
|
|
Net cash flows from
financing activities
|
|
|
(259.6)
|
|
|
|
(270.8)
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
|
|
2.9
|
|
|
|
(0.6)
|
|
Net change in cash
and cash equivalents and restricted cash
|
|
|
(115.1)
|
|
|
|
(171.9)
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
|
|
554.3
|
|
|
|
237.6
|
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$
|
439.2
|
|
|
$
|
65.7
|
|
Conagra Brands,
Inc.
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
Q1
FY21
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,134.2
|
|
|
$
|
1,130.6
|
|
|
$
|
219.0
|
|
|
$
|
195.1
|
|
|
$
|
2,678.9
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
12.1
|
|
|
|
—
|
|
|
|
12.1
|
|
Organic Net
Sales
|
|
$
|
1,134.2
|
|
|
$
|
1,130.6
|
|
|
$
|
231.1
|
|
|
$
|
195.1
|
|
|
$
|
2,691.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
16.0
|
%
|
|
|
17.9
|
%
|
|
|
7.2
|
%
|
|
|
(21.8)
|
%
|
|
|
12.1
|
%
|
Impact of
foreign exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
5.9
|
|
|
|
—
|
|
|
|
0.5
|
|
Net sales from
divested businesses (pp)
|
|
|
4.7
|
|
|
|
1.1
|
|
|
|
—
|
|
|
|
1.5
|
|
|
|
2.4
|
|
Organic Net
Sales
|
|
|
20.7
|
%
|
|
|
19.0
|
%
|
|
|
13.1
|
%
|
|
|
(20.3)
|
%
|
|
|
15.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
17.2
|
%
|
|
|
12.8
|
%
|
|
|
10.5
|
%
|
|
|
(24.2)
|
%
|
|
|
10.9
|
%
|
Price/Mix
|
|
|
3.5
|
%
|
|
|
6.2
|
%
|
|
|
2.6
|
%
|
|
|
3.9
|
%
|
|
|
4.1
|
%
|
Q1
FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
977.6
|
|
|
$
|
959.1
|
|
|
$
|
204.4
|
|
|
$
|
249.6
|
|
|
$
|
2,390.7
|
|
Net sales from
divested businesses
|
|
|
(37.8)
|
|
|
|
(9.1)
|
|
|
|
—
|
|
|
|
(4.7)
|
|
|
|
(51.6)
|
|
Organic Net
Sales
|
|
$
|
939.8
|
|
|
$
|
950.0
|
|
|
$
|
204.4
|
|
|
$
|
244.9
|
|
|
$
|
2,339.1
|
|
|
|
Q1
FY21
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total Conagra
Brands
|
|
Operating
Profit
|
|
$
|
283.6
|
|
|
$
|
240.1
|
|
|
$
|
38.5
|
|
|
$
|
24.9
|
|
|
$
|
(77.2)
|
|
|
$
|
509.9
|
|
Restructuring
plans
|
|
|
13.9
|
|
|
|
5.7
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
6.4
|
|
|
|
25.9
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.7
|
|
|
|
2.7
|
|
Consulting fees on
tax matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.5
|
|
|
|
1.5
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.5
|
|
|
|
2.5
|
|
Adjusted Operating
Profit
|
|
$
|
297.5
|
|
|
$
|
245.8
|
|
|
$
|
38.4
|
|
|
$
|
24.9
|
|
|
$
|
(66.1)
|
|
|
$
|
540.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
25.0
|
%
|
|
|
21.2
|
%
|
|
|
17.6
|
%
|
|
|
12.8
|
%
|
|
|
|
|
|
|
19.0
|
%
|
Adjusted Operating
Profit Margin
|
|
|
26.2
|
%
|
|
|
21.7
|
%
|
|
|
17.5
|
%
|
|
|
12.8
|
%
|
|
|
|
|
|
|
20.2
|
%
|
Year-over-year %
change - Operating Profit
|
|
|
86.9
|
%
|
|
|
54.3
|
%
|
|
|
55.5
|
%
|
|
|
(20.0)
|
%
|
|
|
(22.5)
|
%
|
|
|
93.4
|
%
|
Year-over year %
change - Adjusted Operating Profit
|
|
|
43.0
|
%
|
|
|
42.8
|
%
|
|
|
47.7
|
%
|
|
|
(20.0)
|
%
|
|
|
5.6
|
%
|
|
|
44.2
|
%
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
495
|
bps
|
|
|
380
|
bps
|
|
|
481
|
bps
|
|
|
28
|
bps
|
|
|
|
|
|
|
450
|
bps
|
Q1
FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total Conagra
Brands
|
|
Operating
Profit
|
|
$
|
151.7
|
|
|
$
|
155.6
|
|
|
$
|
24.8
|
|
|
$
|
31.1
|
|
|
$
|
(99.5)
|
|
|
$
|
263.7
|
|
Restructuring
plans
|
|
|
19.1
|
|
|
|
0.6
|
|
|
|
1.2
|
|
|
|
—
|
|
|
|
28.6
|
|
|
|
49.5
|
|
Acquisitions and
divestitures
|
|
|
0.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.2
|
|
|
|
1.9
|
|
Impairment on
business held for sale
|
|
|
31.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31.4
|
|
Brand impairment
charges
|
|
|
3.5
|
|
|
|
15.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19.3
|
|
Loss on divestiture
of businesses
|
|
|
1.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.7
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.2
|
|
|
|
7.2
|
|
Adjusted Operating
Profit
|
|
$
|
208.1
|
|
|
$
|
172.0
|
|
|
$
|
26.0
|
|
|
$
|
31.1
|
|
|
$
|
(62.5)
|
|
|
$
|
374.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
15.5
|
%
|
|
|
16.2
|
%
|
|
|
12.1
|
%
|
|
|
12.5
|
%
|
|
|
|
|
|
|
11.0
|
%
|
Adjusted Operating
Profit Margin
|
|
|
21.3
|
%
|
|
|
17.9
|
%
|
|
|
12.7
|
%
|
|
|
12.5
|
%
|
|
|
|
|
|
|
15.7
|
%
|
Conagra Brands,
Inc.
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
Q1
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
|
|
$
|
810.2
|
|
|
$
|
300.3
|
|
|
$
|
509.9
|
|
|
$
|
410.0
|
|
|
$
|
86.7
|
|
|
|
20.8
|
%
|
|
$
|
329.0
|
|
|
$
|
0.67
|
|
% of Net
Sales
|
|
|
30.2
|
%
|
|
|
11.2
|
%
|
|
|
19.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
10.4
|
|
|
|
15.5
|
|
|
|
25.9
|
|
|
|
25.9
|
|
|
|
6.4
|
|
|
|
|
|
|
|
19.5
|
|
|
|
0.04
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
2.7
|
|
|
|
2.7
|
|
|
|
2.7
|
|
|
|
0.7
|
|
|
|
|
|
|
|
2.0
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
2.5
|
|
|
|
—
|
|
|
|
2.5
|
|
|
|
2.5
|
|
|
|
0.6
|
|
|
|
|
|
|
|
1.9
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
45.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Consulting fees on
tax matters
|
|
|
—
|
|
|
|
1.5
|
|
|
|
1.5
|
|
|
|
1.5
|
|
|
|
0.4
|
|
|
|
|
|
|
|
1.1
|
|
|
|
—
|
|
Legal
matters
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
(1.5)
|
|
|
|
—
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
|
|
|
|
(7.6)
|
|
|
|
(0.02)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
823.1
|
|
|
$
|
236.7
|
|
|
$
|
540.5
|
|
|
$
|
440.6
|
|
|
$
|
101.9
|
|
|
|
22.8
|
%
|
|
$
|
344.4
|
|
|
$
|
0.70
|
|
% of Net
Sales
|
|
|
30.7
|
%
|
|
|
8.8
|
%
|
|
|
20.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - reported
|
|
|
245
|
bps
|
|
|
(555)
|
bps
|
|
|
800
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - adjusted
|
|
|
244
|
bps
|
|
|
(188)
|
bps
|
|
|
450
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
21.9
|
%
|
|
|
(25.1)
|
%
|
|
|
93.4
|
%
|
|
|
172.4
|
%
|
|
|
N/A
|
|
|
|
|
|
|
|
89.4
|
%
|
|
|
86.1
|
%
|
Year-over-year
change - adjusted
|
|
|
21.7
|
%
|
|
|
(7.6)
|
%
|
|
|
44.2
|
%
|
|
|
68.1
|
%
|
|
|
73.4
|
%
|
|
|
|
|
|
|
64.2
|
%
|
|
|
62.8
|
%
|
|
|
Q1
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
|
|
$
|
664.5
|
|
|
$
|
400.8
|
|
|
$
|
263.7
|
|
|
$
|
150.5
|
|
|
$
|
(11.5)
|
|
|
|
(7.0)
|
%
|
|
$
|
173.8
|
|
|
$
|
0.36
|
|
% of Net
Sales
|
|
|
27.8
|
%
|
|
|
16.8
|
%
|
|
|
11.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
4.5
|
|
|
|
45.0
|
|
|
|
49.5
|
|
|
|
50.1
|
|
|
|
11.5
|
|
|
|
|
|
|
|
38.6
|
|
|
|
0.08
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
1.9
|
|
|
|
1.9
|
|
|
|
1.9
|
|
|
|
0.5
|
|
|
|
|
|
|
|
1.4
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
7.2
|
|
|
|
—
|
|
|
|
7.2
|
|
|
|
7.2
|
|
|
|
1.8
|
|
|
|
|
|
|
|
5.4
|
|
|
|
0.01
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
45.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Gain on Ardent JV
asset sale
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.3)
|
|
|
|
|
|
|
|
(4.1)
|
|
|
|
(0.01)
|
|
Impairment of a
business held for sale
|
|
|
—
|
|
|
|
31.4
|
|
|
|
31.4
|
|
|
|
31.4
|
|
|
|
1.8
|
|
|
|
|
|
|
|
29.6
|
|
|
|
0.06
|
|
Brand impairment
charges
|
|
|
—
|
|
|
|
19.3
|
|
|
|
19.3
|
|
|
|
19.3
|
|
|
|
4.5
|
|
|
|
|
|
|
|
14.8
|
|
|
|
0.03
|
|
Loss on divestiture
of businesses
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
0.4
|
|
|
|
|
|
|
|
1.3
|
|
|
|
—
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
51.0
|
|
|
|
|
|
|
|
(51.0)
|
|
|
|
(0.10)
|
|
Adjusted
|
|
$
|
676.2
|
|
|
$
|
256.2
|
|
|
$
|
374.7
|
|
|
$
|
262.1
|
|
|
$
|
58.7
|
|
|
|
21.8
|
%
|
|
$
|
209.8
|
|
|
$
|
0.43
|
|
% of Net
Sales
|
|
|
28.3
|
%
|
|
|
10.7
|
%
|
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
Conagra Brands,
Inc.
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
|
|
Q1
FY21
|
|
|
Q1
FY20
|
|
|
%
Change
|
|
Equity method
investment earnings
|
|
$
|
6.5
|
|
|
$
|
12.3
|
|
|
|
(46.8)
|
%
|
Gain on Ardent JV
asset sale
|
|
|
—
|
|
|
|
(5.4)
|
|
|
|
|
|
Adjusted equity
method investment earnings
|
|
$
|
6.5
|
|
|
$
|
6.9
|
|
|
|
(4.5)
|
%
|
|
|
|
|
Q1
FY21
|
|
|
Q1
FY20
|
|
|
%
Change
|
|
Pension and
postretirement non-service income
|
|
$
|
(13.8)
|
|
|
$
|
(9.5)
|
|
|
|
45.9
|
%
|
Restructuring
plans
|
|
|
—
|
|
|
|
(0.6)
|
|
|
|
|
|
Adjusted pension
and postretirement non-service income
|
|
$
|
(13.8)
|
|
|
$
|
(10.1)
|
|
|
|
37.1
|
%
|
|
|
|
|
Q2
FY19
|
|
|
Q4
FY19
|
|
Q4
FY20
|
|
Q1
FY21
|
|
Notes
payable
|
|
$
|
0.9
|
|
|
$
|
1.0
|
|
$
|
1.1
|
|
$
|
0.6
|
|
Current installments
of long-term debt
|
|
|
17.2
|
|
|
|
20.6
|
|
|
845.5
|
|
|
718.6
|
|
Senior long-term
debt, excluding current installments
|
|
|
11,349.5
|
|
|
|
10,459.8
|
|
|
8,900.8
|
|
|
8,897.6
|
|
Subordinated
debt
|
|
|
195.9
|
|
|
|
195.9
|
|
|
—
|
|
|
—
|
|
Total
Debt
|
|
$
|
11,563.5
|
|
|
$
|
10,677.3
|
|
$
|
9,747.4
|
|
$
|
9,616.8
|
|
Less: Cash
|
|
|
442.3
|
|
|
|
236.6
|
|
|
553.3
|
|
|
438.2
|
|
Net
Debt
|
|
$
|
11,121.2
|
|
|
$
|
10,440.7
|
|
$
|
9,194.1
|
|
$
|
9,178.6
|
|
|
|
|
|
Q1
FY21
|
|
|
Q1
FY20
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
329.0
|
|
|
$
|
173.8
|
|
|
|
89.4
|
%
|
Add
Back: Income tax
expense
|
|
|
86.7
|
|
|
|
(11.5)
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.3)
|
|
|
|
(0.2)
|
|
|
|
|
|
Interest expense,
net
|
|
|
113.7
|
|
|
|
122.7
|
|
|
|
|
|
Depreciation
|
|
|
80.3
|
|
|
|
81.7
|
|
|
|
|
|
Amortization
|
|
|
14.9
|
|
|
|
15.0
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
624.3
|
|
|
$
|
381.5
|
|
|
|
63.7
|
%
|
Restructuring plans
1
|
|
|
18.3
|
|
|
|
43.8
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
2.7
|
|
|
|
1.9
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
2.5
|
|
|
|
7.2
|
|
|
|
|
|
Consulting fees on
tax matters
|
|
|
1.5
|
|
|
|
—
|
|
|
|
|
|
Brand impairment
charges
|
|
|
—
|
|
|
|
19.3
|
|
|
|
|
|
Loss on divestiture
of businesses
|
|
|
—
|
|
|
|
1.7
|
|
|
|
|
|
Impairment of a
business held for sale
|
|
|
—
|
|
|
|
31.4
|
|
|
|
|
|
Legal
matters
|
|
|
(2.0)
|
|
|
|
—
|
|
|
|
|
|
Gain on Ardent JV
asset sale
|
|
|
—
|
|
|
|
(5.4)
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
647.3
|
|
|
$
|
481.4
|
|
|
|
34.5
|
%
|
|
1 Excludes
comparability items related to depreciation.
|
Conagra Brands,
Inc.
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
(in
millions)
|
|
|
|
Q1 FY21 LTM
2
|
|
Net
Debt
|
|
$
|
9,178.6
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
995.3
|
|
Add
Back: Income
tax expense
|
|
|
299.5
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(1.0)
|
|
Interest expense,
net
|
|
|
478.1
|
|
Depreciation
|
|
|
327.7
|
|
Amortization
|
|
|
59.7
|
|
Earnings before
interest, taxes, depreciation, and amortization
(EBITDA)
|
|
$
|
2,159.3
|
|
Restructuring plans
1
|
|
|
81.0
|
|
Acquisitions and
divestitures
|
|
|
6.1
|
|
Corporate hedging
derivative losses
|
|
|
0.8
|
|
Consulting fees on
tax matters
|
|
|
1.5
|
|
Pension settlement
and valuation adjustment
|
|
|
42.9
|
|
Impairment of a
business held for sale
|
|
|
27.6
|
|
Legal
matters
|
|
|
1.5
|
|
Environmental
matters
|
|
|
6.6
|
|
Contract settlement
gain
|
|
|
(11.9)
|
|
Brand impairment
charges
|
|
|
146.2
|
|
Gain on Ardent JV
asset sale
|
|
|
1.3
|
|
Adjusted
EBITDA
|
|
$
|
2,462.9
|
|
|
|
|
|
|
Net Debt to
Adjusted LTM EBITDA
|
|
|
3.7
|
|
|
1 Excludes
comparability items related to depreciation.
|
|
2 Last
twelve months
|
|
|
August 30,
2020
|
|
|
August 25,
2019
|
|
|
%
Change
|
|
Net cash flows from
operating activities
|
|
$
|
284.5
|
|
|
$
|
207.0
|
|
|
|
37.4
|
%
|
Additions to
property, plant and equipment
|
|
|
(145.5)
|
|
|
|
(106.6)
|
|
|
|
36.5
|
%
|
Free cash
flow
|
|
$
|
139.0
|
|
|
$
|
100.4
|
|
|
|
38.4
|
%
|
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SOURCE Conagra Brands, Inc.