CHICAGO, Jan. 7, 2021 /PRNewswire/ -- Today Conagra
Brands, Inc. (NYSE: CAG) reported results for the second quarter of
fiscal year 2021, which ended on November
29, 2020. All comparisons are against the prior-year fiscal
period, unless otherwise noted. Certain terms used in this
release, including "Organic net sales," "EBITDA," and certain
"adjusted" results, are defined under the section entitled
"Definitions." See page 5 for more information.
Highlights
- Second quarter net sales increased 6.2%, and organic net sales
increased 8.1%, with significant growth in each of the Company's
three retail segments on both a reported and an organic basis.
- Total Company operating margin increased 250 basis points to
17.7%, and adjusted operating margin increased 250 basis points to
19.6%.
- Diluted earnings per share from continuing operations (EPS) for
the second quarter grew 45.3% to $0.77, and adjusted EPS grew 28.6% to
$0.81.
- From the close of the Pinnacle Foods acquisition through the
end of the second quarter, the Company has reduced its gross debt
by $2.3 billion; this reduction in
debt, together with strong earnings, enabled the Company to achieve
its targeted Net Leverage Ratio ahead of schedule.
- The Company is providing guidance for the third 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 16.0% to
16.5%
- Adjusted EPS is expected in the range of $0.56 to $0.60
- The Company is reaffirming its fiscal 2022 guidance, which does
not yet include the impact of the pending sale of the Peter Pan
peanut butter business.
CEO Perspective
Sean
Connolly, president and chief executive officer of Conagra
Brands, commented, "Our second quarter results reflect strong
performance across the business and outstanding execution delivered
by employees across the company. We exceeded expectations on
net sales, profitability, and de-leveraging while continuing to
invest in the business. We have continued to selectively
invest in production capacity and marketing support to increase the
availability and awareness of our products to maximize long-term
brand health."
He continued, "We remain confident that Conagra Brands is
well-positioned to capture the benefits of the shifting consumer
behavior, many of which we believe will continue well into the
future. The continued business momentum, coupled with our
disciplined approach to investment, reinforce our confidence in the
long-term potential of the business and our ability to create
sustained value for our shareholders."
Total Company Second Quarter Results
In the quarter,
net sales increased 6.2% to $3.0
billion. The growth in reported net sales primarily
reflects:
- a 1.7% net decrease from the divestitures of the Direct Store
Delivery (DSD) snacks business, the Lender's bagel business, the
H.K. Anderson business, and the exit of the private label peanut
butter business (collectively, the Sold Businesses);
- a 0.2% net decrease due to foreign exchange; and
- a 8.1% increase in organic net sales.
The 8.1% increase in organic net sales was driven by a 6.6%
increase in volume and a favorable price/mix impact of 1.5%.
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 primarily driven by favorable sales mix.
Gross profit increased 11.4% to $889
million in the quarter, and adjusted gross profit increased
11.4% to $895 million. Gross
margin increased 139 basis points to 29.7% in the quarter, and
adjusted gross margin increased 139 basis points to 29.9%.
The net sales increase, together with very strong supply chain
realized productivity, favorable margin mix, cost synergies
associated with the Pinnacle Foods acquisition, and fixed cost
leverage combined to more than offset input cost inflation, higher
transportation costs, COVID-19-related expenses, the impact of
foreign exchange, and lost profit from the Sold Businesses.
Selling, general, and administrative expense (SG&A), which
includes advertising and promotional expense (A&P), decreased
3.3% to $358 million in the
quarter. Adjusted SG&A, which excludes A&P, decreased
6.2% to $244 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 reduced. A&P for
the quarter increased 4.7% to $64
million, driven primarily by higher eCommerce
investments.
Net interest expense was $108
million in the quarter. Compared to the prior-year
period, net interest expense decreased 11.3% or $14 million, driven by lower levels of debt
outstanding.
The Company's 491 million average diluted shares
outstanding in the quarter was an increase of 0.5% versus the
prior-year period.
In the quarter, net income attributable to Conagra Brands
increased 45.4% to $379 million, or
$0.77 per diluted share.
Adjusted net income attributable to Conagra Brands increased 29.5%
to $396 million, or $0.81 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 16.7% to $712 million in
the quarter, primarily driven by the previously mentioned increase
in adjusted gross profit and decrease in adjusted SG&A.
Grocery & Snacks Segment Second Quarter
Results
Net sales for the Grocery & Snacks segment
increased 12.5% to $1.3 billion in
the quarter reflecting:
- a 2.8% decrease from the impact of the Sold Businesses;
and
- a 15.3% increase in organic net sales.
On an organic net sales basis, volume increased 13.6% and
price/mix increased 1.7%. Volume benefited from increased
at-home eating as a result of the COVID-19 pandemic and
replenishment of customer inventory levels. The increase in
price/mix was primarily driven by favorable mix. Many grocery
and snack brands experienced strong organic sales growth in the
quarter, including snack brands Orville
Redenbacher's, Act II, Swiss Miss, Snack Pack, and
Duncan Hines and staples brands such
as RO*TEL, Libby's, Chef Boyardee, PAM, Hunt's, and Armour
Star.
Operating profit for the segment increased 19.9% to $316 million in the quarter. Adjusted
operating profit increased 16.8% to $319
million, primarily driven by organic net sales growth, very
strong supply chain realized productivity, and cost synergies
associated with the Pinnacle Foods acquisition. These
benefits were partially offset by the impacts of input cost
inflation, higher transportation costs, COVID-19-related expenses,
and the lost profit from the Sold Businesses.
Refrigerated & Frozen Segment Second Quarter
Results
Net sales for the Refrigerated & Frozen segment
increased 6.8% to $1.2 billion in the
quarter reflecting:
- a 1.0% decrease from the impact of the Sold Businesses;
and
- a 7.8% increase in organic net sales.
On an organic net sales basis, volume increased 6.4% and
price/mix increased 1.4%. Volume benefited from increased
at-home eating as a result of the COVID-19 pandemic. The
price/mix increase was primarily driven by lower promotion
levels. Many brands, including P.F. Chang's Home Menu,
Reddi-wip, Hebrew National, Hungry-Man, Gardein, Marie Callender's, and Birds Eye experienced
strong organic net sales growth in the quarter.
Operating profit for the segment increased 41.1% to $264 million in the quarter. Adjusted
operating profit increased 25.6% to $272
million as the benefits of higher organic net sales, very
strong supply chain realized productivity, and cost synergies
associated with the Pinnacle Foods acquisition more than offset the
impacts of input cost inflation, higher transportation costs,
COVID-19-related expenses, and lost profit from the Sold
Businesses.
International Segment Second Quarter Results
Net sales
for the International segment increased 6.6% to $250 million in the quarter reflecting:
- a 2.5% decrease from the unfavorable impact of foreign
exchange; and
- a 9.1% increase in organic net sales.
On an organic net sales basis, volume increased 6.4% and
price/mix increased 2.7%. During the quarter, the segment
benefited from elevated demand related to the impacts of the
COVID-19 pandemic, and experienced strong growth in both
Canada and Mexico.
Operating profit for the segment increased 49.3% to $40 million in the quarter. Adjusted
operating profit increased 48.4% to $40
million as the increase in organic net sales, together with
the benefits from favorable supply chain realized productivity and
product mix were partially offset by the impacts of higher input
costs and foreign exchange.
Foodservice Segment Second Quarter Results
Net sales
for the Foodservice segment decreased 23.1% to $212 million in the quarter reflecting:
- a 1.7% decrease from the impact of the Sold Businesses;
and
- a 21.4% decrease in organic net sales.
On an organic net sales basis, volume decreased 25.3% primarily
driven by lower restaurant traffic as a result of the COVID-19
pandemic. Price/mix was favorable at 3.9% in the quarter
primarily driven by increased pricing to offset higher input
costs.
Operating profit for the segment decreased 41.6% to $22 million in the quarter, as the impacts of
lower organic net sales and higher input costs more than offset the
impacts of favorable supply chain realized productivity and cost
synergies associated with the Pinnacle Foods acquisition.
Other Second Quarter Items
Corporate expenses
increased 27.0% to $111
million in the quarter, primarily driven by expenses
associated with the early extinguishment of debt. Adjusted
corporate expense decreased 9.2% to $64
million in the quarter, as favorability from synergies and
COVID-related savings, such as less travel expense, more than
offset slightly higher incentive compensation expense.
Pension and post-retirement non-service income was $14 million in the quarter compared to
$11 million of income in the
prior-year period.
In the quarter, equity method investment earnings were
$23 million. The
16.7% decrease on a reported basis and the 18.5% decrease
on an adjusted basis were primarily driven by less favorable market
conditions for the Ardent Mills joint venture.
In the quarter, the effective tax rate was 17.6% compared
to 24.3% in the prior-year period, primarily driven by a release of
our valuation allowance on capital loss carryforwards as a result
of the pending sale of the Peter Pan peanut butter business.
The adjusted effective tax rate was 23.2% compared to 23.4% in
the prior-year period.
In the quarter, the Company paid a dividend of $0.2125 per share. As previously announced,
during the second quarter the Company's Board of Directors approved
an increase in the quarterly dividend to $0.275 per share of common stock, with such
increase effective in the third quarter.
The Company remains committed to a solid investment grade credit
rating. Since the closing of the Pinnacle Foods acquisition
through the end of the second quarter of fiscal 2021, the
Company has reduced total gross debt by more than $2.3 billion, resulting in total debt of
$9.3 billion and net debt of
$9.2 billion as of the end of
the second quarter of fiscal 2021. In the last four
fiscal quarters ended November 29,
2020, the Company generated $1.1 billion in net income attributable to
Conagra Brands and adjusted EBITDA of $2.6
billion. As of the second quarter of fiscal 2021,
the Company's net debt to last twelve month adjusted EBITDA ratio
(Net Leverage Ratio) was 3.6x, achieving the 3.5x to 3.6x Net
Leverage Ratio target ahead of schedule.
Portfolio Update
On December 7,
2020, the Company entered into a definitive agreement to
sell its Peter Pan peanut butter business to Post Holdings,
Inc. The transaction is subject to customary closing
conditions and is expected to be completed in the first calendar
quarter of 2021. The business is currently reflected
primarily within the Grocery & Snacks segment, and to a lesser
extent within the International and Foodservice segments. The
sale is expected to have an annualized impact of reducing net sales
by approximately $110 million and
adjusted EPS by approximately $0.03.
Outlook
The ultimate impact of the COVID-19 pandemic
on the Company's full year fiscal 2021 consolidated results remains
uncertain. The Company continues to expect demand in retail
channels to remain elevated and demand in foodservice channels 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 third quarter to-date, the Company has seen a sustained
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 the following third quarter
fiscal 2021 guidance:
- Organic net sales growth of +6% to +8%
- Adjusted operating margin of 16.0% to 16.5%
- Adjusted EPS of $0.56 to
$0.60
The Company's third quarter guidance does not yet include any
impacts from the pending sale of the Peter Pan peanut butter
business. It also continues to assume that the end-to-end
supply chain operates effectively during this period of heightened
demand.
The Company is reaffirming its fiscal 2022 guidance 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 Company's fiscal 2022 guidance does not yet include the
impact of the pending sale of the Peter Pan peanut butter
business. 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 $0.77 EPS for the
second 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 $0.03 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 $0.01 per diluted
share of net benefit related to the gain on divestiture of a
business
- Approximately $0.07 per diluted
share of net expense related to the early extinguishment of
debt
- Approximately $0.05 per diluted
share of net benefit related to a release of a valuation allowance
on our capital loss carryforward
- Approximately $0.01 per diluted
share of negative impact due to rounding
The following are included in the $0.53 EPS for the second 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 $0.06 per diluted
share of net expense related to restructuring plans
- Approximately $0.05 per diluted
share of net expense related to an impairment of the Lender's bagel
business
- Approximately $0.02 per diluted
share of net benefit related to a contract settlement gain
- Approximately $0.01 per diluted
share of net expense related to environmental matters
- Approximately $0.01 per diluted
share of net benefit related to unusual tax items
- Approximately $0.01 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.
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 6391339. 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 January 7,
2022.
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 and pending acquisitions and divestitures; including the
pending divestiture of the Peter Pan peanut butter business; risks
related to the timing to complete a potential divestiture of the
Peter Pan peanut butter business; risks related to the ability and
timing to obtain required regulatory approvals and satisfy other
closing conditions for the divestiture of the Peter Pan peanut
butter business; 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 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 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, 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, adjusted net income, free
cash flow, 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.
Conagra Brands,
Inc.
Consolidated Statements of Earnings
(in millions)
(unaudited)
|
|
|
|
SECOND
QUARTER
|
|
|
|
Thirteen weeks
ended
|
|
|
Thirteen weeks
ended
|
|
|
|
|
|
|
|
November 29,
2020
|
|
|
November 24,
2019
|
|
|
Percent Change
|
|
Net sales
|
|
$
|
2,995.2
|
|
|
$
|
2,820.8
|
|
|
|
6.2
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
2,106.3
|
|
|
|
2,022.9
|
|
|
|
4.1
|
%
|
Selling, general and
administrative expenses
|
|
|
357.7
|
|
|
|
369.8
|
|
|
|
(3.3)
|
%
|
Pension and
postretirement non-service income
|
|
|
(13.7)
|
|
|
|
(11.3)
|
|
|
|
21.2
|
%
|
Interest expense,
net
|
|
|
107.7
|
|
|
|
121.4
|
|
|
|
(11.3)
|
%
|
Income before income
taxes and equity method investment
earnings
|
|
|
437.2
|
|
|
|
318.0
|
|
|
|
37.5
|
%
|
Income tax
expense
|
|
|
80.7
|
|
|
|
84.1
|
|
|
|
(3.9)
|
%
|
Equity method
investment earnings
|
|
|
23.0
|
|
|
|
27.6
|
|
|
|
(16.7)
|
%
|
Net income
|
|
$
|
379.5
|
|
|
$
|
261.5
|
|
|
|
45.1
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
0.6
|
|
|
|
1.0
|
|
|
|
(43.0)
|
%
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
378.9
|
|
|
$
|
260.5
|
|
|
|
45.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
0.77
|
|
|
$
|
0.53
|
|
|
|
45.3
|
%
|
Weighted average
shares outstanding
|
|
|
489.1
|
|
|
|
487.3
|
|
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
0.77
|
|
|
$
|
0.53
|
|
|
|
45.3
|
%
|
Weighted average
share and share equivalents outstanding
|
|
|
490.9
|
|
|
|
488.3
|
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc.
Consolidated Statements of Earnings
(in millions)
(unaudited)
|
|
|
|
SECOND QUARTER YEAR
TO DATE
|
|
|
|
Twenty-six weeks
ended
|
|
|
Twenty-six weeks
ended
|
|
|
|
|
|
|
|
November 29,
2020
|
|
|
November 24,
2019
|
|
|
Percent Change
|
|
Net sales
|
|
$
|
5,674.1
|
|
|
$
|
5,211.5
|
|
|
|
8.9
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
3,975.0
|
|
|
|
3,749.1
|
|
|
|
6.0
|
%
|
Selling, general and
administrative expenses
|
|
|
658.0
|
|
|
|
770.6
|
|
|
|
(14.6)
|
%
|
Pension and
postretirement non-service income
|
|
|
(27.5)
|
|
|
|
(20.8)
|
|
|
|
32.5
|
%
|
Interest expense,
net
|
|
|
221.4
|
|
|
|
244.1
|
|
|
|
(9.3)
|
%
|
Income before income
taxes and equity method investment
earnings
|
|
|
847.2
|
|
|
|
468.5
|
|
|
|
80.8
|
%
|
Income tax
expense
|
|
|
167.4
|
|
|
|
72.6
|
|
|
|
130.7
|
%
|
Equity method
investment earnings
|
|
|
29.5
|
|
|
|
39.9
|
|
|
|
(25.9)
|
%
|
Net income
|
|
$
|
709.3
|
|
|
$
|
435.8
|
|
|
|
62.8
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
1.4
|
|
|
|
1.5
|
|
|
|
(3.7)
|
%
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
707.9
|
|
|
$
|
434.3
|
|
|
|
63.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
1.45
|
|
|
$
|
0.89
|
|
|
|
62.9
|
%
|
Weighted average
shares outstanding
|
|
|
488.6
|
|
|
|
487.0
|
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
1.44
|
|
|
$
|
0.89
|
|
|
|
61.8
|
%
|
Weighted average
share and share equivalents outstanding
|
|
|
490.3
|
|
|
|
488.1
|
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc.
Consolidated Balance Sheets
(in millions)
(unaudited)
|
|
|
|
November 29,
2020
|
|
|
May 31,
2020
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
68.0
|
|
|
$
|
553.3
|
|
Receivables, less
allowance for doubtful accounts of $2.8 and $2.6
|
|
|
948.5
|
|
|
|
860.8
|
|
Inventories
|
|
|
1,622.8
|
|
|
|
1,367.8
|
|
Prepaid expenses and
other current assets
|
|
|
156.9
|
|
|
|
93.9
|
|
Current assets held
for sale
|
|
|
1.5
|
|
|
|
10.1
|
|
Total current
assets
|
|
|
2,797.7
|
|
|
|
2,885.9
|
|
Property, plant and
equipment, net
|
|
|
2,478.0
|
|
|
|
2,392.7
|
|
Goodwill
|
|
|
11,394.4
|
|
|
|
11,389.0
|
|
Brands, trademarks
and other intangibles, net
|
|
|
4,277.8
|
|
|
|
4,305.1
|
|
Other
assets
|
|
|
1,273.6
|
|
|
|
1,273.4
|
|
Noncurrent assets
held for sale
|
|
|
55.2
|
|
|
|
57.9
|
|
|
|
$
|
22,276.7
|
|
|
$
|
22,304.0
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
368.6
|
|
|
$
|
1.1
|
|
Current installments
of long-term debt
|
|
|
618.4
|
|
|
|
845.5
|
|
Accounts
payable
|
|
|
1,598.1
|
|
|
|
1,520.2
|
|
Accrued
payroll
|
|
|
131.4
|
|
|
|
189.4
|
|
Other accrued
liabilities
|
|
|
629.5
|
|
|
|
725.8
|
|
Current liabilities
held for sale
|
|
|
5.4
|
|
|
|
5.4
|
|
Total current
liabilities
|
|
|
3,351.4
|
|
|
|
3,287.4
|
|
Senior long-term
debt, excluding current installments
|
|
|
8,279.7
|
|
|
|
8,900.8
|
|
Other noncurrent
liabilities
|
|
|
2,176.1
|
|
|
|
2,165.1
|
|
Total stockholders'
equity
|
|
|
8,469.5
|
|
|
|
7,950.7
|
|
|
|
$
|
22,276.7
|
|
|
$
|
22,304.0
|
|
Conagra Brands, Inc.
and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
|
|
|
|
Twenty-six weeks
ended
|
|
|
|
November
29,
2020
|
|
|
November
24,
2019
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
709.3
|
|
|
$
|
435.8
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
193.0
|
|
|
|
193.4
|
|
Asset impairment
charges
|
|
|
3.9
|
|
|
|
105.9
|
|
Loss on extinguishment
of debt
|
|
|
44.3
|
|
|
|
0.3
|
|
Loss (gain) on
divestitures
|
|
|
(5.3)
|
|
|
|
1.5
|
|
Equity method
investment earnings in excess of distributions
|
|
|
(8.4)
|
|
|
|
(14.1)
|
|
Stock-settled
share-based payments expense
|
|
|
30.9
|
|
|
|
21.0
|
|
Contributions to
pension plans
|
|
|
(20.7)
|
|
|
|
(7.4)
|
|
Pension
benefit
|
|
|
(19.1)
|
|
|
|
(13.2)
|
|
Other items
|
|
|
14.2
|
|
|
|
10.6
|
|
Change in operating
assets and liabilities excluding effects of business acquisitions
and
dispositions:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
(88.3)
|
|
|
|
(128.3)
|
|
Inventories
|
|
|
(247.2)
|
|
|
|
(230.0)
|
|
Deferred income taxes
and income taxes payable, net
|
|
|
(39.9)
|
|
|
|
(23.0)
|
|
Prepaid expenses and
other current assets
|
|
|
(39.8)
|
|
|
|
(7.0)
|
|
Accounts
payable
|
|
|
111.2
|
|
|
|
207.3
|
|
Accrued
payroll
|
|
|
(58.0)
|
|
|
|
(41.9)
|
|
Other accrued
liabilities
|
|
|
(67.9)
|
|
|
|
(83.4)
|
|
Deferred employer
payroll taxes
|
|
|
29.2
|
|
|
|
—
|
|
Net cash flows from
operating activities
|
|
|
541.4
|
|
|
|
427.5
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(282.0)
|
|
|
|
(183.7)
|
|
Sale of property,
plant and equipment
|
|
|
1.0
|
|
|
|
5.8
|
|
Purchase of marketable
securities
|
|
|
(4.1)
|
|
|
|
(27.8)
|
|
Sale of marketable
securities
|
|
|
6.0
|
|
|
|
29.9
|
|
Proceeds from
divestitures, net of cash divested
|
|
|
8.6
|
|
|
|
139.0
|
|
Other items
|
|
|
—
|
|
|
|
(3.4)
|
|
Net cash flows from
investing activities
|
|
|
(270.5)
|
|
|
|
(40.2)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Issuances of
commercial paper, maturities greater than 90 days
|
|
|
298.6
|
|
|
|
—
|
|
Net issuances
(repayments) of other short-term borrowings
|
|
|
68.9
|
|
|
|
(0.5)
|
|
Issuance of long-term
debt
|
|
|
988.2
|
|
|
|
—
|
|
Repayment of long-term
debt
|
|
|
(1,881.7)
|
|
|
|
(210.9)
|
|
Debt issuance
costs
|
|
|
(5.4)
|
|
|
|
—
|
|
Payment of intangible
asset financing arrangement
|
|
|
(12.9)
|
|
|
|
(13.6)
|
|
Cash dividends
paid
|
|
|
(207.3)
|
|
|
|
(206.7)
|
|
Exercise of stock
options and issuance of other stock awards, including tax
withholdings
|
|
|
(8.4)
|
|
|
|
(0.7)
|
|
Other items
|
|
|
—
|
|
|
|
0.9
|
|
Net cash flows from
financing activities
|
|
|
(760.0)
|
|
|
|
(431.5)
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
|
|
3.8
|
|
|
|
(0.4)
|
|
Net change in cash
and cash equivalents and restricted cash
|
|
|
(485.3)
|
|
|
|
(44.6)
|
|
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
|
|
$
|
69.0
|
|
|
$
|
193.0
|
|
Conagra Brands,
Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial
Measures
(in millions)
|
|
Q2
FY21
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,285.3
|
|
|
$
|
1,248.0
|
|
|
$
|
249.8
|
|
|
$
|
212.1
|
|
|
$
|
2,995.2
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
6.0
|
|
|
|
—
|
|
|
|
6.0
|
|
Net sales from
divested businesses
|
|
|
(1.6)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.3)
|
|
|
|
(1.9)
|
|
Organic Net
Sales
|
|
$
|
1,283.7
|
|
|
$
|
1,248.0
|
|
|
$
|
255.8
|
|
|
$
|
211.8
|
|
|
$
|
2,999.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
12.5
|
%
|
|
|
6.8
|
%
|
|
|
6.6
|
%
|
|
|
(23.1)
|
%
|
|
|
6.2
|
%
|
Impact of
foreign exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
2.5
|
|
|
|
—
|
|
|
|
0.2
|
|
Net sales from
divested businesses (pp)
|
|
|
2.8
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
Organic Net
Sales
|
|
|
15.3
|
%
|
|
|
7.8
|
%
|
|
|
9.1
|
%
|
|
|
(21.4)
|
%
|
|
|
8.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
13.6
|
%
|
|
|
6.4
|
%
|
|
|
6.4
|
%
|
|
|
(25.3)
|
%
|
|
|
6.6
|
%
|
Price/Mix
|
|
|
1.7
|
%
|
|
|
1.4
|
%
|
|
|
2.7
|
%
|
|
|
3.9
|
%
|
|
|
1.5
|
%
|
Q2
FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,142.5
|
|
|
$
|
1,168.3
|
|
|
$
|
234.3
|
|
|
$
|
275.7
|
|
|
$
|
2,820.8
|
|
Net sales from
divested businesses
|
|
|
(29.0)
|
|
|
|
(10.3)
|
|
|
|
—
|
|
|
|
(6.3)
|
|
|
|
(45.6)
|
|
Organic Net
Sales
|
|
$
|
1,113.5
|
|
|
$
|
1,158.0
|
|
|
$
|
234.3
|
|
|
$
|
269.4
|
|
|
$
|
2,775.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FY21
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
2,419.5
|
|
|
$
|
2,378.6
|
|
|
$
|
468.8
|
|
|
$
|
407.2
|
|
|
$
|
5,674.1
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
18.1
|
|
|
|
—
|
|
|
|
18.1
|
|
Net sales from
divested businesses
|
|
|
(3.6)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.6)
|
|
|
|
(4.2)
|
|
Organic Net
Sales
|
|
$
|
2,415.9
|
|
|
$
|
2,378.6
|
|
|
$
|
486.9
|
|
|
$
|
406.6
|
|
|
$
|
5,688.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
14.1
|
%
|
|
|
11.8
|
%
|
|
|
6.9
|
%
|
|
|
(22.5)
|
%
|
|
|
8.9
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
4.1
|
|
|
|
—
|
|
|
|
0.3
|
|
Net sales from
divested businesses (pp)
|
|
|
3.7
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
1.7
|
|
|
|
2.1
|
|
Organic Net
Sales
|
|
|
17.8
|
%
|
|
|
12.8
|
%
|
|
|
11.0
|
%
|
|
|
(20.8)
|
%
|
|
|
11.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
15.3
|
%
|
|
|
9.2
|
%
|
|
|
8.3
|
%
|
|
|
(24.8)
|
%
|
|
|
8.5
|
%
|
Price/Mix
|
|
|
2.5
|
%
|
|
|
3.6
|
%
|
|
|
2.7
|
%
|
|
|
4.0
|
%
|
|
|
2.8
|
%
|
Q2 FY20
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
&
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
2,120.1
|
|
|
$
|
2,127.4
|
|
|
$
|
438.7
|
|
|
$
|
525.3
|
|
|
$
|
5,211.5
|
|
Net sales from
divested businesses
|
|
|
(68.8)
|
|
|
|
(19.4)
|
|
|
|
—
|
|
|
|
(11.7)
|
|
|
|
(99.9)
|
|
Organic Net
Sales
|
|
$
|
2,051.3
|
|
|
$
|
2,108.0
|
|
|
$
|
438.7
|
|
|
$
|
513.6
|
|
|
$
|
5,111.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial
Measures
(in millions)
|
|
Q2
FY21
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
316.4
|
|
|
$
|
264.3
|
|
|
$
|
39.5
|
|
|
$
|
22.3
|
|
|
$
|
(111.3)
|
|
|
$
|
531.2
|
|
Restructuring
plans
|
|
|
7.8
|
|
|
|
7.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5.7
|
|
|
|
20.7
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.5
|
|
|
|
0.5
|
|
Gain on divestiture
of a business
|
|
|
(5.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5.3)
|
|
Early extinguishment
of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
44.3
|
|
|
|
44.3
|
|
Consulting fees on
tax matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.3)
|
|
|
|
(0.3)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
Adjusted Operating
Profit
|
|
$
|
318.9
|
|
|
$
|
271.5
|
|
|
$
|
39.5
|
|
|
$
|
22.3
|
|
|
$
|
(64.4)
|
|
|
$
|
587.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
24.6
|
%
|
|
|
21.2
|
%
|
|
|
15.8
|
%
|
|
|
10.5
|
%
|
|
|
|
|
|
|
17.7
|
%
|
Adjusted Operating
Profit Margin
|
|
|
24.8
|
%
|
|
|
21.8
|
%
|
|
|
15.8
|
%
|
|
|
10.5
|
%
|
|
|
|
|
|
|
19.6
|
%
|
Year-over-year %
change - Operating Profit
|
|
|
19.9
|
%
|
|
|
41.1
|
%
|
|
|
49.3
|
%
|
|
|
(41.6)
|
%
|
|
|
27.0
|
%
|
|
|
24.1
|
%
|
Year-over year %
change - Adjusted Operating Profit
|
|
|
16.8
|
%
|
|
|
25.6
|
%
|
|
|
48.4
|
%
|
|
|
(41.6)
|
%
|
|
|
(9.2)
|
%
|
|
|
21.7
|
%
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
92
|
bps
|
|
|
325
|
bps
|
|
|
445
|
bps
|
|
|
(335
|
) bps
|
|
|
|
|
|
|
250
|
bps
|
Q2
FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
263.7
|
|
|
$
|
187.4
|
|
|
$
|
26.4
|
|
|
$
|
38.3
|
|
|
$
|
(87.7)
|
|
|
$
|
428.1
|
|
Restructuring
plans
|
|
|
19.2
|
|
|
|
1.2
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
14.6
|
|
|
|
35.2
|
|
Acquisitions and
divestitures
|
|
|
2.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.2)
|
|
|
|
1.1
|
|
Impairment of a
business held for sale
|
|
|
—
|
|
|
|
27.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
27.6
|
|
Gain on divestiture
of businesses
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Contract settlement
gain
|
|
|
(12.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(12.0)
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.5)
|
|
|
|
(1.5)
|
|
Environmental
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.6
|
|
|
|
6.6
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.8)
|
|
|
|
(1.8)
|
|
Adjusted Operating
Profit
|
|
$
|
273.0
|
|
|
$
|
216.2
|
|
|
$
|
26.6
|
|
|
$
|
38.3
|
|
|
$
|
(71.0)
|
|
|
$
|
483.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
23.1
|
%
|
|
|
16.0
|
%
|
|
|
11.3
|
%
|
|
|
13.9
|
%
|
|
|
|
|
|
|
15.2
|
%
|
Adjusted Operating
Profit Margin
|
|
|
23.9
|
%
|
|
|
18.5
|
%
|
|
|
11.3
|
%
|
|
|
13.9
|
%
|
|
|
|
|
|
|
17.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial
Measures
(in millions)
|
|
Q2 FY21
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
600.0
|
|
|
$
|
504.4
|
|
|
$
|
78.0
|
|
|
$
|
47.2
|
|
|
$
|
(188.5)
|
|
|
$
|
1,041.1
|
|
Restructuring
plans
|
|
|
21.7
|
|
|
|
12.9
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
12.1
|
|
|
|
46.6
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.2
|
|
|
|
3.2
|
|
Gain on divestiture
of a business
|
|
|
(5.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5.3)
|
|
Early extinguishment
of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
44.3
|
|
|
|
44.3
|
|
Consulting fees on
tax matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.2
|
|
|
|
1.2
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.8)
|
|
|
|
(0.8)
|
|
Adjusted Operating
Profit
|
|
$
|
616.4
|
|
|
$
|
517.3
|
|
|
$
|
77.9
|
|
|
$
|
47.2
|
|
|
$
|
(130.5)
|
|
|
$
|
1,128.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
24.8
|
%
|
|
|
21.2
|
%
|
|
|
16.6
|
%
|
|
|
11.6
|
%
|
|
|
|
|
|
|
18.3
|
%
|
Adjusted Operating
Profit Margin
|
|
|
25.5
|
%
|
|
|
21.7
|
%
|
|
|
16.6
|
%
|
|
|
11.6
|
%
|
|
|
|
|
|
|
19.9
|
%
|
Year-over-year %
change - Operating Profit
|
|
|
44.4
|
%
|
|
|
47.1
|
%
|
|
|
52.3
|
%
|
|
|
(31.9)
|
%
|
|
|
0.7
|
%
|
|
|
50.5
|
%
|
Year-over year %
change - Adjusted Operating Profit
|
|
|
28.2
|
%
|
|
|
33.2
|
%
|
|
|
48.0
|
%
|
|
|
(31.9)
|
%
|
|
|
(2.2)
|
%
|
|
|
31.5
|
%
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
279
|
bps
|
|
|
349
|
bps
|
|
|
462
|
bps
|
|
|
(161
|
) bps
|
|
|
|
|
|
|
342
|
bps
|
Q2 FY20
YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
415.4
|
|
|
$
|
343.0
|
|
|
$
|
51.2
|
|
|
$
|
69.4
|
|
|
$
|
(187.2)
|
|
|
$
|
691.8
|
|
Restructuring
plans
|
|
|
38.3
|
|
|
|
1.8
|
|
|
|
1.4
|
|
|
|
—
|
|
|
|
43.2
|
|
|
|
84.7
|
|
Acquisitions and
divestitures
|
|
|
3.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.0
|
|
Impairment of
businesses held for sale
|
|
|
31.4
|
|
|
|
27.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
59.0
|
|
Brand impairment
charges
|
|
|
3.5
|
|
|
|
15.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19.3
|
|
Loss on divestiture
of businesses
|
|
|
1.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.5
|
|
Contract settlement
gain
|
|
|
(12.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(12.0)
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.5)
|
|
|
|
(1.5)
|
|
Environmental
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.6
|
|
|
|
6.6
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5.4
|
|
|
|
5.4
|
|
Adjusted Operating
Profit
|
|
$
|
481.1
|
|
|
$
|
388.2
|
|
|
$
|
52.6
|
|
|
$
|
69.4
|
|
|
$
|
(133.5)
|
|
|
$
|
857.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
19.6
|
%
|
|
|
16.1
|
%
|
|
|
11.7
|
%
|
|
|
13.2
|
%
|
|
|
|
|
|
|
13.3
|
%
|
Adjusted Operating
Profit Margin
|
|
|
22.7
|
%
|
|
|
18.3
|
%
|
|
|
12.0
|
%
|
|
|
13.2
|
%
|
|
|
|
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial
Measures
(in millions)
|
|
Q2
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
|
|
$
|
888.9
|
|
|
$
|
357.7
|
|
|
$
|
531.2
|
|
|
$
|
437.2
|
|
|
$
|
80.7
|
|
|
|
17.6
|
%
|
|
$
|
378.9
|
|
|
$
|
0.77
|
|
% of Net
Sales
|
|
|
29.7
|
%
|
|
|
11.9
|
%
|
|
|
17.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
9.5
|
|
|
|
11.2
|
|
|
|
20.7
|
|
|
|
20.7
|
|
|
|
5.3
|
|
|
|
|
|
|
|
15.4
|
|
|
|
0.03
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.5
|
|
|
|
0.5
|
|
|
|
0.5
|
|
|
|
0.1
|
|
|
|
|
|
|
|
0.4
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(3.3)
|
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
|
|
(0.8)
|
|
|
|
|
|
|
|
(2.5)
|
|
|
|
(0.01)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
63.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Gain on divestiture of
a business
|
|
|
—
|
|
|
|
(5.3)
|
|
|
|
(5.3)
|
|
|
|
(5.3)
|
|
|
|
(1.8)
|
|
|
|
|
|
|
|
(3.5)
|
|
|
|
(0.01)
|
|
Early extinguishment
of debt
|
|
|
—
|
|
|
|
44.3
|
|
|
|
44.3
|
|
|
|
44.3
|
|
|
|
11.1
|
|
|
|
|
|
|
|
33.2
|
|
|
|
0.07
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
(0.3)
|
|
|
|
(0.3)
|
|
|
|
(0.3)
|
|
|
|
(0.1)
|
|
|
|
|
|
|
|
(0.2)
|
|
|
|
—
|
|
Capital loss valuation
allowance adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25.3
|
|
|
|
|
|
|
|
(25.3)
|
|
|
|
(0.05)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
895.1
|
|
|
$
|
243.7
|
|
|
$
|
587.8
|
|
|
$
|
493.8
|
|
|
$
|
119.8
|
|
|
|
23.2
|
%
|
|
$
|
396.4
|
|
|
$
|
0.81
|
|
% of Net
Sales
|
|
|
29.9
|
%
|
|
|
8.1
|
%
|
|
|
19.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - reported
|
|
|
139
|
bps
|
|
|
(116
|
)
bps
|
|
|
256
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - adjusted
|
|
|
139
|
bps
|
|
|
(107
|
)
bps
|
|
|
250
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
11.4
|
%
|
|
|
(3.3)
|
%
|
|
|
24.1
|
%
|
|
|
37.5
|
%
|
|
|
(3.9)
|
%
|
|
|
|
|
|
|
45.4
|
%
|
|
|
45.3
|
%
|
Year-over-year
change - adjusted
|
|
|
11.4
|
%
|
|
|
(6.2)
|
%
|
|
|
21.7
|
%
|
|
|
32.4
|
%
|
|
|
27.4
|
%
|
|
|
|
|
|
|
29.5
|
%
|
|
|
28.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
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
|
|
$
|
797.9
|
|
|
$
|
369.8
|
|
|
$
|
428.1
|
|
|
$
|
318.0
|
|
|
$
|
84.1
|
|
|
|
24.3
|
%
|
|
$
|
260.5
|
|
|
$
|
0.53
|
|
% of Net
Sales
|
|
|
28.3
|
%
|
|
|
13.1
|
%
|
|
|
15.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
7.6
|
|
|
|
27.6
|
|
|
|
35.2
|
|
|
|
35.2
|
|
|
|
7.7
|
|
|
|
|
|
|
|
27.5
|
|
|
|
0.06
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
1.1
|
|
|
|
0.3
|
|
|
|
|
|
|
|
0.8
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(1.8)
|
|
|
|
—
|
|
|
|
(1.8)
|
|
|
|
(1.8)
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
(1.3)
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
60.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Adjustment to gain on
Ardent JV asset sale
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.4
|
|
|
|
—
|
|
Impairment of a
business held for sale
|
|
|
—
|
|
|
|
27.6
|
|
|
|
27.6
|
|
|
|
27.6
|
|
|
|
2.2
|
|
|
|
|
|
|
|
25.4
|
|
|
|
0.05
|
|
Contract settlement
gain
|
|
|
—
|
|
|
|
(12.0)
|
|
|
|
(12.0)
|
|
|
|
(12.0)
|
|
|
|
(3.0)
|
|
|
|
|
|
|
|
(9.0)
|
|
|
|
(0.02)
|
|
Legal
matters
|
|
|
—
|
|
|
|
(1.5)
|
|
|
|
(1.5)
|
|
|
|
(1.5)
|
|
|
|
(0.4)
|
|
|
|
|
|
|
|
(1.1)
|
|
|
|
—
|
|
Environmental
matters
|
|
|
—
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
1.6
|
|
|
|
|
|
|
|
5.0
|
|
|
|
0.01
|
|
Loss on divestiture of
businesses
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
(0.7)
|
|
|
|
|
|
|
|
0.5
|
|
|
|
—
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.6
|
|
|
|
|
|
|
|
(2.6)
|
|
|
|
(0.01)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
803.7
|
|
|
$
|
259.9
|
|
|
$
|
483.1
|
|
|
$
|
373.0
|
|
|
$
|
94.1
|
|
|
|
23.4
|
%
|
|
$
|
306.1
|
|
|
$
|
0.63
|
|
% of Net
Sales
|
|
|
28.5
|
%
|
|
|
9.2
|
%
|
|
|
17.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
Q2 FY21
YTD
|
|
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
|
|
$
|
1,699.1
|
|
|
$
|
658.0
|
|
|
$
|
1,041.1
|
|
|
$
|
847.2
|
|
|
$
|
167.4
|
|
|
|
19.1
|
%
|
|
$
|
707.9
|
|
|
$
|
1.44
|
|
% of Net
Sales
|
|
|
29.9
|
%
|
|
|
11.6
|
%
|
|
|
18.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
19.9
|
|
|
|
26.7
|
|
|
|
46.6
|
|
|
|
46.6
|
|
|
|
11.7
|
|
|
|
|
|
|
|
34.9
|
|
|
|
0.07
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
3.2
|
|
|
|
3.2
|
|
|
|
3.2
|
|
|
|
0.8
|
|
|
|
|
|
|
|
2.4
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(0.8)
|
|
|
|
—
|
|
|
|
(0.8)
|
|
|
|
(0.8)
|
|
|
|
(0.2)
|
|
|
|
|
|
|
|
(0.6)
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
109.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Gain on divestiture of
a business
|
|
|
—
|
|
|
|
(5.3)
|
|
|
|
(5.3)
|
|
|
|
(5.3)
|
|
|
|
(1.8)
|
|
|
|
|
|
|
|
(3.5)
|
|
|
|
(0.01)
|
|
Early extinguishment
of debt
|
|
|
—
|
|
|
|
44.3
|
|
|
|
44.3
|
|
|
|
44.3
|
|
|
|
11.1
|
|
|
|
|
|
|
|
33.2
|
|
|
|
0.07
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
1.2
|
|
|
|
1.2
|
|
|
|
1.2
|
|
|
|
0.3
|
|
|
|
|
|
|
|
0.9
|
|
|
|
—
|
|
Legal
matters
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
(1.5)
|
|
|
|
—
|
|
Capital loss valuation
allowance adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
25.3
|
|
|
|
|
|
|
|
(25.3)
|
|
|
|
(0.05)
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
|
|
|
|
(7.6)
|
|
|
|
(0.02)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
1,718.2
|
|
|
$
|
480.4
|
|
|
$
|
1,128.3
|
|
|
$
|
934.4
|
|
|
$
|
221.7
|
|
|
|
23.0
|
%
|
|
$
|
740.8
|
|
|
$
|
1.51
|
|
% of Net
Sales
|
|
|
30.3
|
%
|
|
|
8.5
|
%
|
|
|
19.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - reported
|
|
|
188
|
bps
|
|
|
(319
|
)
bps
|
|
|
507
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - adjusted
|
|
|
188
|
bps
|
|
|
(144
|
)
bps
|
|
|
342
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
16.2
|
%
|
|
|
(14.6)
|
%
|
|
|
50.5
|
%
|
|
|
80.8
|
%
|
|
|
130.7
|
%
|
|
|
|
|
|
|
63.0
|
%
|
|
|
61.8
|
%
|
Year-over-year
change - adjusted
|
|
|
16.1
|
%
|
|
|
(6.9)
|
%
|
|
|
31.5
|
%
|
|
|
47.1
|
%
|
|
|
45.1
|
%
|
|
|
|
|
|
|
43.6
|
%
|
|
|
42.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 FY20
YTD
|
|
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
|
|
$
|
1,462.4
|
|
|
$
|
770.6
|
|
|
$
|
691.8
|
|
|
$
|
468.5
|
|
|
$
|
72.6
|
|
|
|
14.3
|
%
|
|
$
|
434.3
|
|
|
$
|
0.89
|
|
% of Net
Sales
|
|
|
28.1
|
%
|
|
|
14.9
|
%
|
|
|
13.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
12.1
|
|
|
|
72.6
|
|
|
|
84.7
|
|
|
|
85.3
|
|
|
|
19.2
|
|
|
|
|
|
|
|
66.1
|
|
|
|
0.14
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
3.0
|
|
|
|
3.0
|
|
|
|
3.0
|
|
|
|
0.8
|
|
|
|
|
|
|
|
2.2
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
5.4
|
|
|
|
—
|
|
|
|
5.4
|
|
|
|
5.4
|
|
|
|
1.3
|
|
|
|
|
|
|
|
4.1
|
|
|
|
0.01
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
106.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Gain on Ardent JV
asset sale
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.1)
|
|
|
|
|
|
|
|
(3.7)
|
|
|
|
(0.01)
|
|
Impairment of
businesses held for sale
|
|
|
—
|
|
|
|
59.0
|
|
|
|
59.0
|
|
|
|
59.0
|
|
|
|
4.0
|
|
|
|
|
|
|
|
55.0
|
|
|
|
0.11
|
|
Contract settlement
gain
|
|
|
—
|
|
|
|
(12.0)
|
|
|
|
(12.0)
|
|
|
|
(12.0)
|
|
|
|
(3.0)
|
|
|
|
|
|
|
|
(9.0)
|
|
|
|
(0.02)
|
|
Brand impairment
charges
|
|
|
—
|
|
|
|
19.3
|
|
|
|
19.3
|
|
|
|
19.3
|
|
|
|
4.5
|
|
|
|
|
|
|
|
14.8
|
|
|
|
0.03
|
|
Legal
matters
|
|
|
—
|
|
|
|
(1.5)
|
|
|
|
(1.5)
|
|
|
|
(1.5)
|
|
|
|
(0.4)
|
|
|
|
|
|
|
|
(1.1)
|
|
|
|
—
|
|
Environmental
matters
|
|
|
—
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
1.6
|
|
|
|
|
|
|
|
5.0
|
|
|
|
0.01
|
|
Loss on divestiture of
businesses
|
|
|
—
|
|
|
|
1.5
|
|
|
|
1.5
|
|
|
|
1.5
|
|
|
|
(0.3)
|
|
|
|
|
|
|
|
1.8
|
|
|
|
—
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
53.6
|
|
|
|
|
|
|
|
(53.6)
|
|
|
|
(0.11)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
1,479.9
|
|
|
$
|
516.1
|
|
|
$
|
857.8
|
|
|
$
|
635.1
|
|
|
$
|
152.8
|
|
|
|
22.8
|
%
|
|
$
|
515.9
|
|
|
$
|
1.06
|
|
% of Net
Sales
|
|
|
28.4
|
%
|
|
|
9.9
|
%
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
Q2
FY21
|
|
|
Q2
FY20
|
|
|
%
Change
|
|
Equity method
investment earnings
|
|
$
|
23.0
|
|
|
$
|
27.6
|
|
|
|
(16.7)
|
%
|
Adjustment to gain on
Ardent JV asset sale
|
|
|
—
|
|
|
|
0.6
|
|
|
|
|
|
Adjusted equity
method investment earnings
|
|
$
|
23.0
|
|
|
$
|
28.2
|
|
|
|
(18.5)
|
%
|
|
|
Q2 FY21
YTD
|
|
|
Q2 FY20
YTD
|
|
|
%
Change
|
|
Equity method
investment earnings
|
|
$
|
29.5
|
|
|
$
|
39.9
|
|
|
|
(25.9)
|
%
|
Gain on Ardent JV
asset sale
|
|
|
—
|
|
|
|
(4.8)
|
|
|
|
|
|
Adjusted equity
method investment earnings
|
|
$
|
29.5
|
|
|
$
|
35.1
|
|
|
|
(15.7)
|
%
|
|
|
Q2 FY21
YTD
|
|
|
Q2 FY20
YTD
|
|
|
%
Change
|
|
Pension and
postretirement non-service income
|
|
$
|
(27.5)
|
|
|
$
|
(20.8)
|
|
|
|
32.5
|
%
|
Restructuring
plans
|
|
|
—
|
|
|
|
(0.6)
|
|
|
|
|
|
Adjusted pension
and postretirement non-service income
|
|
$
|
(27.5)
|
|
|
$
|
(21.4)
|
|
|
|
28.7
|
%
|
|
|
November 29,
2020
|
|
|
November 24,
2019
|
|
|
%
Change
|
|
Net cash flows from
operating activities
|
|
$
|
541.4
|
|
|
$
|
427.5
|
|
|
|
26.6
|
%
|
Additions to
property, plant and equipment
|
|
|
(282.0)
|
|
|
|
(183.7)
|
|
|
|
53.5
|
%
|
Free cash
flow
|
|
$
|
259.4
|
|
|
$
|
243.8
|
|
|
|
6.4
|
%
|
|
|
Q2
FY19
|
|
|
Q4
FY19
|
|
|
Q4
FY20
|
|
|
Q2
FY21
|
|
Notes
payable
|
|
$
|
0.9
|
|
|
$
|
1.0
|
|
|
$
|
1.1
|
|
|
$
|
368.6
|
|
Current installments
of long-term debt
|
|
|
17.2
|
|
|
|
20.6
|
|
|
|
845.5
|
|
|
|
618.4
|
|
Senior long-term
debt, excluding current installments
|
|
|
11,349.5
|
|
|
|
10,459.8
|
|
|
|
8,900.8
|
|
|
|
8,279.7
|
|
Subordinated
debt
|
|
|
195.9
|
|
|
|
195.9
|
|
|
|
—
|
|
|
|
—
|
|
Total
Debt
|
|
$
|
11,563.5
|
|
|
$
|
10,677.3
|
|
|
$
|
9,747.4
|
|
|
$
|
9,266.7
|
|
Less: Cash
|
|
|
442.3
|
|
|
|
236.6
|
|
|
|
553.3
|
|
|
|
68.0
|
|
Net
Debt
|
|
$
|
11,121.2
|
|
|
$
|
10,440.7
|
|
|
$
|
9,194.1
|
|
|
$
|
9,198.7
|
|
Conagra Brands,
Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial
Measures
(in millions)
|
|
|
|
Q2 FY21 LTM
2
|
|
Net
Debt
|
|
$
|
9,198.7
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
1,113.7
|
|
Add
Back: Income tax expense
|
|
|
296.1
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(1.2)
|
|
Interest expense,
net
|
|
|
464.4
|
|
Depreciation
|
|
|
328.8
|
|
Amortization
|
|
|
59.7
|
|
Earnings before
interest, taxes, depreciation, and amortization
(EBITDA)
|
|
$
|
2,261.5
|
|
Restructuring plans
1
|
|
|
65.2
|
|
Acquisitions and
divestitures
|
|
|
5.5
|
|
Corporate hedging
derivative gains
|
|
|
(0.7)
|
|
Consulting fees on
tax matters
|
|
|
1.2
|
|
Pension settlement
and valuation adjustment
|
|
|
42.9
|
|
Gain on divestiture
of businesses
|
|
|
(5.1)
|
|
Legal
matters
|
|
|
3.0
|
|
Early extinguishment
of debt
|
|
|
44.3
|
|
Adjustment to
contract settlement gain
|
|
|
0.1
|
|
Brand impairment
charges
|
|
|
146.2
|
|
Adjustment to gain on
Ardent JV asset sale
|
|
|
0.7
|
|
Adjusted
EBITDA
|
|
$
|
2,564.8
|
|
|
|
|
|
|
Net Debt to
Adjusted LTM EBITDA
|
|
|
3.6
|
|
|
|
1
|
Excludes
comparability items related to depreciation.
|
2
|
Last twelve
months
|
Conagra Brands,
Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial
Measures
(in millions)
|
|
|
|
Q2
FY21
|
|
|
Q2
FY20
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
378.9
|
|
|
$
|
260.5
|
|
|
|
45.4
|
%
|
Add
Back: Income tax expense
|
|
|
80.7
|
|
|
|
84.1
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.1)
|
|
|
|
0.1
|
|
|
|
|
|
Interest expense,
net
|
|
|
107.7
|
|
|
|
121.4
|
|
|
|
|
|
Depreciation
|
|
|
82.8
|
|
|
|
81.7
|
|
|
|
|
|
Amortization
|
|
|
15.0
|
|
|
|
15.0
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
665.0
|
|
|
$
|
562.8
|
|
|
|
18.1
|
%
|
Restructuring plans
1
|
|
|
11.4
|
|
|
|
27.2
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
0.5
|
|
|
|
1.1
|
|
|
|
|
|
Corporate hedging
derivative gains
|
|
|
(3.3)
|
|
|
|
(1.8)
|
|
|
|
|
|
Early extinguishment
of debt
|
|
|
44.3
|
|
|
|
—
|
|
|
|
|
|
Consulting fees on
tax matters
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
|
|
Contract settlement
gain
|
|
|
—
|
|
|
|
(12.0)
|
|
|
|
|
|
Gain on divestiture
of businesses
|
|
|
(5.3)
|
|
|
|
(0.2)
|
|
|
|
|
|
Impairment of a
business held for sale
|
|
|
—
|
|
|
|
27.6
|
|
|
|
|
|
Legal
matters
|
|
|
—
|
|
|
|
(1.5)
|
|
|
|
|
|
Environmental
matters
|
|
|
—
|
|
|
|
6.6
|
|
|
|
|
|
Adjustment to gain on
Ardent JV asset sale
|
|
|
—
|
|
|
|
0.6
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
712.3
|
|
|
$
|
610.4
|
|
|
|
16.7
|
%
|
|
1 Excludes
comparability items related to depreciation.
|
|
|
Q2 FY21
YTD
|
|
|
Q2 FY20
YTD
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
707.9
|
|
|
$
|
434.3
|
|
|
|
63.0
|
%
|
Add
Back: Income tax expense
|
|
|
167.4
|
|
|
|
72.6
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.4)
|
|
|
|
(0.1)
|
|
|
|
|
|
Interest expense,
net
|
|
|
221.4
|
|
|
|
244.1
|
|
|
|
|
|
Depreciation
|
|
|
163.1
|
|
|
|
163.4
|
|
|
|
|
|
Amortization
|
|
|
29.9
|
|
|
|
30.0
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
1,289.3
|
|
|
$
|
944.3
|
|
|
|
36.5
|
%
|
Restructuring plans
1
|
|
|
29.7
|
|
|
|
71.0
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
3.2
|
|
|
|
3.0
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(0.8)
|
|
|
|
5.4
|
|
|
|
|
|
Early extinguishment
of debt
|
|
|
44.3
|
|
|
|
—
|
|
|
|
|
|
Consulting fees on
tax matters
|
|
|
1.2
|
|
|
|
—
|
|
|
|
|
|
Impairment of
businesses held for sale
|
|
|
—
|
|
|
|
59.0
|
|
|
|
|
|
Loss (gain) on
divestiture of businesses
|
|
|
(5.3)
|
|
|
|
1.5
|
|
|
|
|
|
Legal
matters
|
|
|
(2.0)
|
|
|
|
(1.5)
|
|
|
|
|
|
Environmental
matters
|
|
|
—
|
|
|
|
6.6
|
|
|
|
|
|
Contract settlement
gain
|
|
|
—
|
|
|
|
(12.0)
|
|
|
|
|
|
Brand impairment
charges
|
|
|
—
|
|
|
|
19.3
|
|
|
|
|
|
Gain on Ardent JV
asset sale
|
|
|
—
|
|
|
|
(4.8)
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
1,359.6
|
|
|
$
|
1,091.8
|
|
|
|
24.5
|
%
|
|
1 Excludes
comparability items related to depreciation.
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For more information, please contact:
MEDIA:
Mike Cummins
312-549-5257
Michael.Cummins@conagra.com
INVESTORS: Brian Kearney
312-549-5002
IR@conagra.com
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multimedia:http://www.prnewswire.com/news-releases/conagra-brands-reports-strong-second-quarter-results-301202421.html
SOURCE Conagra Brands, Inc.