CHICAGO,
April 7, 2022
/PRNewswire/ -- Today Conagra Brands, Inc. (NYSE: CAG) reported
results for the third quarter of fiscal year 2022, which ended on
February 27, 2022. All comparisons
are against the prior-year fiscal period, unless otherwise noted.
Certain terms used in this release, including "Organic net sales,"
"EBITDA," "Two-year compounded annualized," and certain "adjusted"
results, are defined under the section entitled "Definitions." See
page 6 for more information.
Highlights
- Third quarter net sales increased 5.1%; organic net sales
increased 6.0%. On a two-year compounded annualized basis, third
quarter net sales increased 6.8% and organic net sales increased
7.8%.
- Operating margin decreased 387 basis points to 12.3%; adjusted
operating margin decreased 230 basis points to 13.7%.
- Diluted earnings per share (EPS) for the third quarter
decreased 22.4% to $0.45, and
adjusted EPS decreased 1.7% to $0.58.
On a two-year compounded annualized basis, third quarter EPS
increased 3.5% and adjusted EPS increased 11.1%.
- The company is updating its fiscal 2022 guidance, and providing
fourth quarter guidance, to reflect expectations for continued top
line strength, higher cost of goods sold inflation, and the timing
of additional pricing actions.
- The company's updated fiscal 2022 guidance is as follows:
-
- Organic net sales growth is expected to be approximately +4%
versus prior guidance of approximately +3%
- Gross inflation (input cost inflation before the impacts of
hedging and other sourcing benefits) is expected to be
approximately 16% versus prior guidance of approximately 14%
- Adjusted operating margin is expected to be approximately 14.5%
versus prior guidance of approximately 15.5%
- Adjusted EPS is expected to be approximately $2.35, versus prior guidance of approximately
$2.50
- Pro Forma FY22 adjusted diluted EPS is estimated at
approximately $2.65, excluding the
impact of the FY22 lag between inflation and in-market pricing
- The company's Fiscal 2022 fourth quarter guidance is as
follows:
-
- Organic net sales growth is expected to be approximately
+7%
- Gross inflation (input cost inflation before the impacts of
hedging and other sourcing benefits) is expected to be
approximately 16%
- Adjusted operating margin is expected to be approximately
15.5%
- Adjusted EPS is expected to be approximately $0.64
CEO Perspective
Sean
Connolly, president and chief executive officer of Conagra
Brands, commented, "Our business delivered another quarter of
strong net sales growth as our brands continued to resonate with
consumers. Our focus on strategic innovation and our intentional
approach to investment helped us capture share across each of our
domains – frozen, snacks, and staples. The team's dedication to
executing our Conagra Way playbook has continued to pay dividends
in the face of a challenging external landscape."
He continued, "We experienced higher-than-expected cost
pressures as the third quarter progressed and expect those
pressures to continue into the fourth quarter, particularly in
certain frozen, refrigerated, and snacks businesses. In response,
we have taken steps to implement additional inflation-driven
pricing actions. We will begin to see the benefits of these actions
in the first quarter of fiscal 2023. Consumer demand has remained
strong in the face of our pricing actions to date, but there will
continue to be a lag between the timing of the incremental
inflation and the benefits of our mitigating actions."
Total Company Third Quarter Results
In the quarter,
net sales increased 5.1% to $2.9
billion. The increase in net sales primarily reflects:
- a 0.8% net decrease from the divestitures of the Peter Pan
peanut butter business and the Egg Beaters business (collectively,
the Sold Businesses);
- a 0.1% decrease from the unfavorable impact of foreign
exchange; and
- a 6.0% increase in organic net sales.
The 6.0% increase in organic net sales was driven by a 8.6%
improvement in price/mix, which was partially offset by a 2.6%
decrease in volume. Price/mix was driven the company's
inflation-driven pricing actions that were reflected in the
marketplace throughout the quarter and favorable brand mix. The
volume decrease was primarily a result of the elasticity impact
from inflation-driven pricing actions; however, the elasticity
impact was favorable to expectations.
Gross profit decreased 8.1% to $697
million in the quarter, and adjusted gross profit decreased
7.9% to $701 million. Third quarter
gross profit benefited from higher organic net sales, supply chain
realized productivity, lower COVID-19 pandemic-related expenses,
and cost synergies associated with the Pinnacle Foods acquisition.
These benefits, however, were not enough to offset the impacts of
cost of goods sold inflation of 15.4%, the lost profit from the
Sold Businesses, and elevated supply chain operating costs. Gross
margin decreased 344 basis points to 23.9% in the quarter, and
adjusted gross margin decreased 342 basis points to 24.1%.
Selling, general, and administrative expense (SG&A), which
includes advertising and promotional expense (A&P), increased
9.2% to $338 million in the quarter
primarily due to an impairment on businesses held for sale.
Adjusted SG&A, which excludes A&P, decreased 3.3% to
$237 million driven by decreased
incentive and deferred compensation.
A&P for the quarter decreased 11.5% to $65 million, driven primarily by reduced
broadcast media investments.
Net interest expense was $95
million in the quarter. Compared to the prior-year period,
net interest expense decreased 6.1% or $6
million, primarily due to a lower weighted average interest
rate on outstanding debt.
The average diluted share count decreased 1.1% compared to the
prior-year period to 482 million shares, driven by the
company's share repurchase activity in prior quarters.
In the quarter, net income attributable to Conagra Brands
decreased 22.4% to $218 million, or
$0.45 per diluted share. Adjusted net
income attributable to Conagra Brands decreased 3.1% to
$279 million, or $0.58 per diluted share, in the quarter. The
decreases were driven primarily by the decrease in gross
profit.
Adjusted EBITDA, which includes equity method investment
earnings and pension and postretirement non-service income,
decreased 2.4% to $553 million in the
quarter, primarily driven by the decrease in adjusted gross profit,
partially offset by a strong performance from the company's Ardent
Mills joint venture.
Grocery & Snacks Segment Third Quarter Results
Net
sales for the Grocery & Snacks segment increased 6.2% to
$1.2 billion in the quarter
reflecting:
- a 0.8% decrease from the impact of the Sold Businesses;
and
- a 7.0% increase in organic net sales.
On an organic net sales basis, price/mix increased 8.8% and
volume decreased 1.8%. Price/mix was primarily driven by
favorability in inflation-driven pricing coupled with favorable
brand mix. The volume decline was primarily due to the elasticity
impact from inflation-driven pricing actions. In the quarter, the
company gained share in staples categories such as beans and syrup,
and in snacking categories, including popcorn and meat snacks.
Operating profit for the segment decreased 20.2% to $232 million in the quarter primarily related to
a prior year gain from the divestiture of the Peter Pan business.
Adjusted operating profit decreased 2.7% to $238 million, primarily driven by cost of goods
inflation, elevated supply chain operating costs, and the lost
profit from the Sold Businesses. These negative impacts were
partially offset by higher organic net sales, supply chain realized
productivity, lower COVID-19 pandemic-related expenses, and cost
synergies associated with the Pinnacle Foods acquisition.
Refrigerated & Frozen Segment Third Quarter
Results
Net sales for the Refrigerated & Frozen segment
increased 2.9% to $1.2 billion in the
quarter reflecting:
- a 1.0% decrease from the impact of the Sold Businesses;
and
- a 3.9% increase in organic net sales.
On an organic net sales basis, price mix increased 8.4% and
volume decreased 4.5%. The price/mix increase was driven by
favorability in inflation-driven pricing and favorable brand mix.
The volume decline was primarily due to the elasticity impact from
inflation-driven pricing actions coupled with supply constraints.
In the quarter, the company gained share in categories such as
frozen single serve meals, frozen multi serve meals, and frozen
desserts.
Operating profit for the segment decreased 26.4% to $158 million in the quarter. Adjusted operating
profit decreased 20.6% to $176
million primarily due to cost of goods sold inflation,
elevated supply chain operating costs, and the lost profit from the
Sold Businesses. These impacts were partially offset by the
benefits of supply chain realized productivity, higher organic net
sales, lower COVID-19 pandemic-related expenses, and cost synergies
associated with the Pinnacle Foods acquisition.
International Segment Third Quarter Results
Net sales
for the International segment increased 0.1% to $241 million in the quarter reflecting:
- a 0.1% decrease from the impact of the Sold Businesses,
- a 0.8% decrease from the unfavorable impact of foreign
exchange; and
- a 1.0% increase in organic net sales.
On an organic net sales basis, price/mix increased 8.0% and
volume decreased 7.0%. The price/mix increase was driven by
inflation-driven pricing and favorable product mix. Volume
decreased primarily due to the elasticity impact from
inflation-driven pricing actions.
Operating profit for the segment increased 7.1% to $30 million in the quarter. Adjusted operating
profit increased 7.7% to $30 million
as the benefits from supply chain realized productivity, higher
organic net sales, and favorable foreign exchange more than offset
the negative impacts of cost of goods sold inflation.
Foodservice Segment Third Quarter Results
Net sales
for the Foodservice segment increased 18.9% to $235 million in the quarter reflecting an 18.9%
increase in organic net sales.
On an organic net sales basis, volume increased 10.5% as
restaurant traffic continued to improve from the impacts of the
COVID-19 pandemic, partially offset by the elasticity impact from
inflation-driven pricing actions. Price/mix was favorable at 8.4%
in the quarter driven by inflation-driven pricing and favorable
product mix.
Operating profit for the segment decreased 63.9% to $5 million and adjusted operating profit
increased 14.8% to $15 million in the
quarter as the benefits of higher organic net sales and favorable
supply chain realized productivity more than offset the impacts of
cost of goods sold inflation and elevated supply chain operating
costs.
Other Third Quarter Items
Corporate expenses decreased
32.9% to $65 million in the
quarter primarily from lapping incremental expenses related to the
extinguishment of debt in the prior year period. Adjusted corporate
expense decreased 6.2% to $60
million in the quarter driven by decreased incentive and
deferred compensation.
Pension and post-retirement non-service income was $16 million in the quarter compared to
$14 million of income in the
prior-year period.
In the quarter, equity method investment earnings were
$48 million. The $27 million increase was primarily driven by
favorable market conditions for the Ardent Mills joint venture, and
the venture's effective management through recent volatility in the
wheat markets.
In the quarter, the effective tax rate was 33.4% compared to
26.5% in the prior-year period. The adjusted effective tax rate was
24.4% compared to 23.9% in the prior-year period.
In the quarter, the company paid a dividend of $0.3125 per share.
Outlook
The company is updating its fiscal 2022
guidance, and providing fourth quarter guidance, to reflect
expectations for continued top line strength, higher cost of goods
sold inflation, and the timing effect of additional pricing
actions.
The company previously shared its expectations that consumer
demand for its retail products would remain elevated versus
historical levels throughout fiscal 2022, as consumers have
developed new habits during the COVID-19 pandemic. Given the trends
to date, including stronger-than-expected consumer demand and
lower-than-anticipated elasticities of demand, as well as
additional planned pricing actions, organic net sales growth is now
expected to be higher than previously anticipated.
The company also continues to experience elevated cost of goods
sold inflation, the rate of which was higher than expected during
the third quarter of fiscal 2022. The company has taken, and plans
to continue taking, a variety of actions to counteract the impact
of this inflation, including incremental pricing actions and cost
savings measures. Due to the nature of the timing lag associated
with announcing and implementing incremental pricing actions, the
benefits associated with the actions are not expected to fully
offset the incremental input cost headwinds within fiscal 2022.
The company's updated fiscal 2022 guidance is as follows:
- Organic net sales growth is expected to be approximately +4%
versus prior guidance of approximately +3%
- Gross inflation (input cost inflation before the impacts of
hedging and other sourcing benefits) is expected to be
approximately 16% versus prior guidance of approximately 14%
- Adjusted operating margin is expected to be approximately 14.5%
versus prior guidance of approximately 15.5%
- Adjusted EPS is expected to be approximately $2.35, versus prior guidance of approximately
$2.50
The company's Fiscal 2022 fourth quarter guidance is as
follows:
- Organic net sales growth is expected to be approximately
+7%
- Gross inflation (input cost inflation before the impacts of
hedging and other sourcing benefits) is expected to be
approximately 16%
- Adjusted operating margin is expected to be approximately
15.5%
- Adjusted EPS is expected to be approximately $0.64
The above guidance is the company's best estimate of its
expected financial performance in fiscal 2022. The company's
ultimate fiscal 2022 performance will be highly dependent on
factors including, without limitation:
- how consumers purchase food as foodservice establishments
continue to reopen and people continue to return to in-office work
and in-person school;
- the cost of goods sold inflation the company experiences;
- consumers' response to inflation-driven price increases;
and
- the ability of the end-to-end supply chain to continue to
operate effectively as the COVID-19 pandemic and world events
continue to evolve.
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 $0.45 EPS for the
third quarter of fiscal 2022 (EPS amounts are rounded and after
tax). Please see the reconciliation schedules at the end of this
release for additional details.
- Approximately $0.02 per diluted
share of net expense related to restructuring plans
- Approximately $0.06 per diluted
share of net expense related to impairment on businesses held for
sale
- Approximately $0.05 per diluted
share of net expense related to unusual tax items
The following are included in the $0.58 EPS for the third quarter of fiscal 2021
(EPS amounts are rounded and after tax). Please see the
reconciliation schedules at the end of this release for additional
details.
- Approximately $0.02 per diluted
share of net expense related to restructuring plans
- Approximately $0.01 per diluted
share of net benefit related to corporate hedging derivative
gains
- Approximately $0.06 per diluted
share of net benefit related to the gain on divestiture of a
business
- Approximately $0.04 per diluted
share of net expense related to the early extinguishment of
debt
- Approximately $0.01 per diluted
share of net expense related to consulting fees on tax matters
- Approximately $0.01 per diluted
share of net expense due to legal matters
Definitions
Organic net sales excludes, from reported
net sales, the impacts of foreign exchange, divested businesses and
acquisitions, as well as the impact of any 53rd week.
All references to changes in volume and price/mix throughout this
release are on an organic net sales basis.
References to adjusted items throughout this release refer to
measures computed in accordance with GAAP less the impact of items
impacting comparability. Items impacting comparability are income
or expenses (and related tax impacts) that management believes have
had, or are likely to have, a significant impact on the earnings of
the applicable business segment or on the total corporation for the
period in which the item is recognized, and are not indicative of
the company's core operating results. These items thus affect the
comparability of underlying results from period to period.
References to earnings before interest, taxes, depreciation, and
amortization (EBITDA) refer to net income attributable to Conagra
Brands before the impacts of discontinued operations, income tax
expense (benefit), interest expense, depreciation, and
amortization. References to adjusted EBITDA refer to EBITDA before
the impacts of items impacting comparability.
References to two-year compounded annualized numbers are
calculated as: ([(1 + current year period's growth rate) * (1 +
prior year period's growth rate)] ^ 0.5) – 1.
Please note that certain prior year amounts have been
reclassified to conform with current year presentation.
Discussion of Results
Conagra Brands will host a
webcast and conference call at 9:30 a.m.
Eastern time today to discuss the results. The live audio
webcast and presentation slides will be available on
www.conagrabrands.com/investor-relations under Events &
Presentations. The conference call may be accessed by dialing
1-877-883-0383 for participants in the U.S. and 1-412-902-6506 for
all other participants and using passcode 6945305. 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 April 7,
2023.
About Conagra Brands
Conagra Brands, Inc. (NYSE: CAG),
headquartered in Chicago, is one
of North America's leading branded
food companies. Guided by an entrepreneurial spirit, Conagra Brands
combines a rich heritage of making great food with a sharpened
focus on innovation. The company's portfolio is evolving to satisfy
people's changing food preferences. Conagra's iconic brands, such
as Birds Eye®, 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 COVID-19 pandemic on our business, suppliers, consumers,
customers and employees; risks related to our forecasts of consumer
eat-at-home habits as the impacts of the COVID-19 pandemic abate;
risks related to the availability and prices of supply chain
resources, including raw materials, packaging, and transportation
including any negative effects caused by changes in inflation
rates, weather conditions, or health pandemics; disruptions or
inefficiencies in our supply chain and/or operations, including
from the COVID-19 pandemic; risks related to disruptions in the
global economy caused by the ongoing conflict between Russia and Ukraine; risks associated with actions by our
customers, including changes in distribution and purchasing terms;
risks and uncertainties associated with intangible assets,
including any future goodwill or intangible assets impairment
charges; risks related to a material failure in or breach of our or
our vendors' information technology systems; the amount and timing
of future dividends, which remain subject to Board approval and
depend on market and other conditions; and other risks described in
our reports filed from time to time with the Securities and
Exchange Commission. We caution readers not to place undue reliance
on any forward-looking statements included in this document, which
speak only as of the date of this document. We undertake no
responsibility to update these statements, except as required by
law.
Note on Non-GAAP Financial Measures
This document
includes certain non-GAAP financial measures, including adjusted
EPS, organic net sales, adjusted gross profit, adjusted operating
profit, adjusted SG&A, adjusted corporate expenses, adjusted
gross margin, adjusted operating margin, adjusted effective tax
rate, adjusted net income attributable to Conagra Brands, two-year
compounded annualized organic net sales, two-year compounded
annualized adjusted EPS, two-year compounded annualized operating
profit, net debt, net leverage ratio, and adjusted EBITDA.
Management considers GAAP financial measures as well as such
non-GAAP financial information in its evaluation of the Company's
financial statements and believes these non-GAAP measures provide
useful supplemental information to assess the Company's operating
performance and financial position. These measures should be viewed
in addition to, and not in lieu of, the Company's diluted earnings
per share, operating performance and financial measures as
calculated in accordance with GAAP.
Certain of these non-GAAP measures, such as organic net sales,
adjusted operating margin, and adjusted EPS, are
forward-looking. Historically, the Company has excluded the
impact of certain items impacting comparability, such as, but not
limited to, restructuring expenses, the impact of the
extinguishment of debt, the impact of foreign exchange, the impact
of acquisitions and divestitures, hedging gains and losses,
impairment charges, the impact of legacy legal contingencies, and
the impact of unusual tax items, from the non-GAAP financial
measures it presents. Reconciliations of these
forward-looking non-GAAP financial measures to the most directly
comparable GAAP financial measures are not provided because the
Company is unable to provide such reconciliations without
unreasonable effort, due to the uncertainty and inherent difficulty
of predicting the occurrence and the financial impact of such items
impacting comparability and the periods in which such items may be
recognized. For the same reasons, the Company is unable to
address the probable significance of the unavailable information,
which could be material to future results.
Hedge gains and losses are generally aggregated, and net amounts
are reclassified from unallocated corporate expense to the
operating segments when the underlying commodity or foreign
currency being hedged is expensed in segment cost of goods sold.
The Company identifies these amounts as items that impact
comparability within the discussion of unallocated Corporate
results.
Conagra Brands,
Inc. Consolidated Statements of
Earnings (in
millions) (unaudited)
|
|
|
THIRD
QUARTER
|
|
|
|
Thirteen Weeks
Ended
|
|
|
Thirteen Weeks
Ended
|
|
|
|
|
|
|
|
February 27,
2022
|
|
|
February 28,
2021
|
|
|
Percent Change
|
|
Net sales
|
|
$
|
2,913.7
|
|
|
$
|
2,771.1
|
|
|
|
5.1
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
2,216.5
|
|
|
|
2,012.7
|
|
|
|
10.1
|
%
|
Selling, general and administrative expenses
|
|
|
338.0
|
|
|
|
309.7
|
|
|
|
9.2
|
%
|
Pension and postretirement non-service income
|
|
|
(16.1)
|
|
|
|
(13.7)
|
|
|
|
17.0
|
%
|
Interest expense, net
|
|
|
94.6
|
|
|
|
100.6
|
|
|
|
(6.1)
|
%
|
Income before income
taxes and equity method
investment earnings
|
|
|
280.7
|
|
|
|
361.8
|
|
|
|
(22.4)
|
%
|
Income tax
expense
|
|
|
109.9
|
|
|
|
101.6
|
|
|
|
8.3
|
%
|
Equity method
investment earnings
|
|
|
48.1
|
|
|
|
21.5
|
|
|
|
124.3
|
%
|
Net income
|
|
$
|
218.9
|
|
|
$
|
281.7
|
|
|
|
(22.3)
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
0.5
|
|
|
|
0.3
|
|
|
|
54.7
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
218.4
|
|
|
$
|
281.4
|
|
|
|
(22.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.45
|
|
|
$
|
0.58
|
|
|
|
(22.4)
|
%
|
Weighted average shares
outstanding
|
|
|
480.3
|
|
|
|
485.7
|
|
|
|
(1.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
0.45
|
|
|
$
|
0.58
|
|
|
|
(22.4)
|
%
|
Weighted average share
and share equivalents outstanding
|
|
|
482.2
|
|
|
|
487.6
|
|
|
|
(1.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc. Consolidated Statements of
Earnings (in
millions) (unaudited)
|
|
|
THIRD QUARTER YEAR TO
DATE
|
|
|
|
Thirty-Nine Weeks
Ended
|
|
|
Thirty-Nine Weeks
Ended
|
|
|
|
|
|
|
|
February 27,
2022
|
|
|
February 28,
2021
|
|
|
Percent Change
|
|
Net sales
|
|
$
|
8,625.9
|
|
|
$
|
8,445.2
|
|
|
|
2.1
|
%
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
6,500.5
|
|
|
|
5,987.7
|
|
|
|
8.6
|
%
|
Selling, general and administrative expenses
|
|
|
993.5
|
|
|
|
967.7
|
|
|
|
2.7
|
%
|
Pension and postretirement non-service income
|
|
|
(48.3)
|
|
|
|
(41.2)
|
|
|
|
17.0
|
%
|
Interest expense, net
|
|
|
283.7
|
|
|
|
322.0
|
|
|
|
(11.9)
|
%
|
Income before income
taxes and equity method
investment earnings
|
|
|
896.5
|
|
|
|
1,209.0
|
|
|
|
(25.9)
|
%
|
Income tax
expense
|
|
|
263.8
|
|
|
|
269.0
|
|
|
|
(1.9)
|
%
|
Equity method
investment earnings
|
|
|
97.8
|
|
|
|
51.0
|
|
|
|
92.0
|
%
|
Net income
|
|
$
|
730.5
|
|
|
$
|
991.0
|
|
|
|
(26.3)
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
1.2
|
|
|
|
1.7
|
|
|
|
(31.8)
|
%
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
729.3
|
|
|
$
|
989.3
|
|
|
|
(26.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.52
|
|
|
$
|
2.03
|
|
|
|
(25.1)
|
%
|
Weighted average shares
outstanding
|
|
|
480.3
|
|
|
|
487.4
|
|
|
|
(1.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Conagra Brands, Inc.
|
|
$
|
1.51
|
|
|
$
|
2.02
|
|
|
|
(25.2)
|
%
|
Weighted average share
and share equivalents outstanding
|
|
|
482.2
|
|
|
|
489.2
|
|
|
|
(1.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc. Consolidated Balance
Sheets (in
millions) (unaudited)
|
|
|
February 27,
2022
|
|
|
May 30, 2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
79.7
|
|
|
$
|
79.2
|
|
Receivables, less allowance for doubtful accounts of $3.4 and
$3.2
|
|
|
914.5
|
|
|
|
793.9
|
|
Inventories
|
|
|
1,766.5
|
|
|
|
1,709.7
|
|
Prepaid expenses and other current assets
|
|
|
129.5
|
|
|
|
95.0
|
|
Current assets held for sale
|
|
|
24.4
|
|
|
|
24.3
|
|
Total current assets
|
|
|
2,914.6
|
|
|
|
2,702.1
|
|
Property, plant and
equipment, net
|
|
|
2,655.5
|
|
|
|
2,572.0
|
|
Goodwill
|
|
|
11,332.4
|
|
|
|
11,338.9
|
|
Brands, trademarks and
other intangibles, net
|
|
|
4,077.6
|
|
|
|
4,124.6
|
|
Other assets
|
|
|
1,487.2
|
|
|
|
1,344.7
|
|
Noncurrent assets held
for sale
|
|
|
32.0
|
|
|
|
113.3
|
|
|
|
$
|
22,499.3
|
|
|
$
|
22,195.6
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Notes payable
|
|
$
|
362.8
|
|
|
$
|
707.4
|
|
Current installments of long-term debt
|
|
|
706.3
|
|
|
|
23.1
|
|
Accounts payable
|
|
|
1,593.9
|
|
|
|
1,655.9
|
|
Accrued payroll
|
|
|
142.8
|
|
|
|
175.2
|
|
Other accrued liabilities
|
|
|
717.1
|
|
|
|
743.0
|
|
Current liabilities held for sale
|
|
|
1.7
|
|
|
|
1.6
|
|
Total current
liabilities
|
|
|
3,524.6
|
|
|
|
3,306.2
|
|
Senior long-term debt,
excluding current installments
|
|
|
8,089.1
|
|
|
|
8,275.2
|
|
Other noncurrent
liabilities
|
|
|
2,029.9
|
|
|
|
1,979.6
|
|
Noncurrent liabilities
held for sale
|
|
|
2.4
|
|
|
|
3.2
|
|
Total stockholders'
equity
|
|
|
8,853.3
|
|
|
|
8,631.4
|
|
|
|
$
|
22,499.3
|
|
|
$
|
22,195.6
|
|
Conagra Brands, Inc.
and Subsidiaries Condensed
Consolidated Statements of Cash Flows (in millions) (unaudited)
|
|
|
|
Thirty-Nine Weeks
Ended
|
|
|
|
February 27,
2022
|
|
|
February 28,
2021
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
730.5
|
|
|
$
|
991.0
|
|
Adjustments to reconcile net income to net cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
285.6
|
|
|
|
289.6
|
|
Asset impairment
charges
|
|
|
72.7
|
|
|
|
4.2
|
|
Loss on extinguishment of
debt
|
|
|
—
|
|
|
|
68.7
|
|
Gain on divestitures
|
|
|
—
|
|
|
|
(55.0)
|
|
Equity method investment
earnings in excess of distributions
|
|
|
(59.7)
|
|
|
|
(19.3)
|
|
Stock-settled share-based
payments expense
|
|
|
26.8
|
|
|
|
41.1
|
|
Contributions to pension
plans
|
|
|
(8.6)
|
|
|
|
(23.7)
|
|
Pension benefit
|
|
|
(38.5)
|
|
|
|
(29.2)
|
|
Other items
|
|
|
(31.6)
|
|
|
|
12.6
|
|
Change in operating assets and
liabilities excluding effects of business acquisitions and
dispositions:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
(120.7)
|
|
|
|
18.5
|
|
Inventories
|
|
|
(57.0)
|
|
|
|
(206.7)
|
|
Deferred income taxes
and income taxes payable, net
|
|
|
38.4
|
|
|
|
15.9
|
|
Prepaid expenses and
other current assets
|
|
|
(34.7)
|
|
|
|
(27.9)
|
|
Accounts
payable
|
|
|
(12.0)
|
|
|
|
(24.1)
|
|
Accrued
payroll
|
|
|
(32.4)
|
|
|
|
(21.4)
|
|
Other accrued
liabilities
|
|
|
19.3
|
|
|
|
1.8
|
|
Deferred employer
payroll taxes
|
|
|
(25.5)
|
|
|
|
33.9
|
|
Net cash flows from operating
activities
|
|
|
752.6
|
|
|
|
1,070.0
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
(364.2)
|
|
|
|
(396.7)
|
|
Sale of property, plant and equipment
|
|
|
18.0
|
|
|
|
1.1
|
|
Purchase of marketable securities
|
|
|
(2.5)
|
|
|
|
(6.8)
|
|
Sale of marketable securities
|
|
|
2.4
|
|
|
|
8.3
|
|
Proceeds from divestitures, net of cash divested
|
|
|
0.1
|
|
|
|
112.2
|
|
Other items
|
|
|
3.3
|
|
|
|
—
|
|
Net cash flows from investing
activities
|
|
|
(342.9)
|
|
|
|
(281.9)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Issuance of short-term borrowings, maturities greater than 90
days
|
|
|
392.6
|
|
|
|
298.6
|
|
Repayment of short-term borrowings, maturities greater than
90 days
|
|
|
(392.6)
|
|
|
|
(49.9)
|
|
Net
(repayment) issuance of other short-term borrowings
|
|
|
(344.6)
|
|
|
|
478.9
|
|
Issuance of long-term debt
|
|
|
499.1
|
|
|
|
988.2
|
|
Repayment of long-term debt
|
|
|
(43.1)
|
|
|
|
(2,312.1)
|
|
Debt issuance costs
|
|
|
(2.5)
|
|
|
|
(6.2)
|
|
Repurchase of Conagra Brands, Inc. common shares
|
|
|
(50.0)
|
|
|
|
(298.1)
|
|
Payment of intangible asset financing arrangement
|
|
|
(12.6)
|
|
|
|
(12.9)
|
|
Cash dividends paid
|
|
|
(431.9)
|
|
|
|
(341.7)
|
|
Exercise of stock options and issuance of other stock awards,
including tax withholdings
|
|
|
(14.1)
|
|
|
|
(8.4)
|
|
Other items
|
|
|
(7.3)
|
|
|
|
—
|
|
Net cash flows from financing
activities
|
|
|
(407.0)
|
|
|
|
(1,263.6)
|
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash
|
|
|
(3.2)
|
|
|
|
2.9
|
|
Net change in cash and
cash equivalents and restricted cash
|
|
|
(0.5)
|
|
|
|
(472.6)
|
|
Cash and cash
equivalents and restricted cash at beginning of period
|
|
|
80.2
|
|
|
|
554.3
|
|
Cash and cash
equivalents and restricted cash at end of period
|
|
$
|
79.7
|
|
|
$
|
81.7
|
|
Conagra Brands,
Inc. Reconciliation of Non-GAAP
Financial Measures to Reported Financial
Measures (in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY22
|
|
Grocery &
Snacks
|
|
|
Refrigerated &
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net Sales
|
|
$
|
1,199.0
|
|
|
$
|
1,238.6
|
|
|
$
|
241.2
|
|
|
$
|
234.9
|
|
|
$
|
2,913.7
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
1.9
|
|
|
|
—
|
|
|
|
1.9
|
|
Organic Net Sales
|
|
$
|
1,199.0
|
|
|
$
|
1,238.6
|
|
|
$
|
243.1
|
|
|
$
|
234.9
|
|
|
$
|
2,915.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - Net
Sales
|
|
|
6.2
|
%
|
|
|
2.9
|
%
|
|
|
0.1
|
%
|
|
|
18.9
|
%
|
|
|
5.1
|
%
|
Impact of
foreign exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
0.8
|
|
|
|
—
|
|
|
|
0.1
|
|
Net sales from
divested businesses (pp)
|
|
|
0.8
|
|
|
|
1.0
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
0.8
|
|
Organic Net Sales
|
|
|
7.0
|
%
|
|
|
3.9
|
%
|
|
|
1.0
|
%
|
|
|
18.9
|
%
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
(1.8)
|
%
|
|
|
(4.5)
|
%
|
|
|
(7.0)
|
%
|
|
|
10.5
|
%
|
|
|
(2.6)
|
%
|
Price/Mix
|
|
|
8.8
|
%
|
|
|
8.4
|
%
|
|
|
8.0
|
%
|
|
|
8.4
|
%
|
|
|
8.6
|
%
|
Q3 FY21
|
|
Grocery &
Snacks
|
|
|
Refrigerated &
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net Sales
|
|
$
|
1,129.5
|
|
|
$
|
1,203.1
|
|
|
$
|
240.9
|
|
|
$
|
197.6
|
|
|
$
|
2,771.1
|
|
Net sales from divested
businesses
|
|
|
(8.8)
|
|
|
|
(11.0)
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
|
|
|
(20.1)
|
|
Organic Net Sales
|
|
$
|
1,120.7
|
|
|
$
|
1,192.1
|
|
|
$
|
240.7
|
|
|
$
|
197.5
|
|
|
$
|
2,751.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY21
|
|
Grocery &
Snacks
|
|
|
Refrigerated &
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net Sales
|
|
$
|
1,129.5
|
|
|
$
|
1,203.1
|
|
|
$
|
240.9
|
|
|
$
|
197.6
|
|
|
$
|
2,771.1
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
0.7
|
|
|
|
—
|
|
|
|
0.7
|
|
Net sales from
divested businesses
|
|
|
(8.8)
|
|
|
|
—
|
|
|
|
(0.2)
|
|
|
|
(0.1)
|
|
|
|
(9.1)
|
|
Organic Net Sales
|
|
$
|
1,120.7
|
|
|
$
|
1,203.1
|
|
|
$
|
241.4
|
|
|
$
|
197.5
|
|
|
$
|
2,762.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - Net
Sales
|
|
|
10.9
|
%
|
|
|
11.7
|
%
|
|
|
9.0
|
%
|
|
|
(17.3)
|
%
|
|
|
8.5
|
%
|
Impact of
foreign exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
Net sales from
divested businesses (pp)
|
|
|
2.4
|
|
|
|
0.4
|
|
|
|
0.5
|
|
|
|
0.7
|
|
|
|
1.2
|
|
Organic Net Sales
|
|
|
13.3
|
%
|
|
|
12.1
|
%
|
|
|
9.8
|
%
|
|
|
(16.6)
|
%
|
|
|
9.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
9.5
|
%
|
|
|
7.8
|
%
|
|
|
6.7
|
%
|
|
|
(19.4)
|
%
|
|
|
6.1
|
%
|
Price/Mix
|
|
|
3.8
|
%
|
|
|
4.3
|
%
|
|
|
3.1
|
%
|
|
|
2.8
|
%
|
|
|
3.6
|
%
|
Q3 FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated &
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net Sales
|
|
$
|
1,018.3
|
|
|
$
|
1,076.8
|
|
|
$
|
220.9
|
|
|
$
|
239.0
|
|
|
$
|
2,555.0
|
Net sales from divested
businesses 1
|
|
|
(29.1)
|
|
|
|
(3.8)
|
|
|
|
(1.0)
|
|
|
|
(2.1)
|
|
|
|
(36.0)
|
|
Organic Net Sales
|
|
$
|
989.2
|
|
|
$
|
1,073.0
|
|
|
$
|
219.9
|
|
|
$
|
236.9
|
|
|
$
|
2,519.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2-year compound
growth
|
|
|
8.5
|
%
|
|
|
7.2
|
%
|
|
|
4.5
|
%
|
|
|
(0.8)
|
%
|
|
|
6.8
|
%
|
Organic 2-year compound
growth
|
|
|
10.1
|
%
|
|
|
7.9
|
%
|
|
|
5.3
|
%
|
|
|
(0.4)
|
%
|
|
|
7.8
|
%
|
Conagra Brands,
Inc. Reconciliation of Non-GAAP
Financial Measures to Reported Financial
Measures (in
millions)
|
|
Q3 FY22 YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated &
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net Sales
|
|
$
|
3,538.6
|
|
|
$
|
3,626.3
|
|
|
$
|
740.0
|
|
|
$
|
721.0
|
|
|
$
|
8,625.9
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
(19.7)
|
|
|
|
—
|
|
|
|
(19.7)
|
|
Organic Net Sales
|
|
$
|
3,538.6
|
|
|
$
|
3,626.3
|
|
|
$
|
720.3
|
|
|
$
|
721.0
|
|
|
$
|
8,606.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - Net
Sales
|
|
|
(0.1)
|
%
|
|
|
1.2
|
%
|
|
|
4.3
|
%
|
|
|
18.1
|
%
|
|
|
2.1
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.8)
|
|
|
|
—
|
|
|
|
(0.2)
|
|
Net sales from divested
businesses (pp)
|
|
|
1.0
|
|
|
|
0.9
|
|
|
|
0.2
|
|
|
|
0.4
|
|
|
|
0.9
|
|
Organic Net Sales
|
|
|
0.9
|
%
|
|
|
2.1
|
%
|
|
|
1.7
|
%
|
|
|
18.5
|
%
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
(3.5)
|
%
|
|
|
(4.4)
|
%
|
|
|
(5.8)
|
%
|
|
|
13.1
|
%
|
|
|
(3.0)
|
%
|
Price/Mix
|
|
|
4.4
|
%
|
|
|
6.5
|
%
|
|
|
7.5
|
%
|
|
|
5.4
|
%
|
|
|
5.8
|
%
|
Q3 FY21 YTD
|
|
Grocery &
Snacks
|
|
|
Refrigerated &
Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net Sales
|
|
$
|
3,543.6
|
|
|
$
|
3,581.7
|
|
|
$
|
709.7
|
|
|
$
|
610.2
|
|
|
$
|
8,445.2
|
|
Net sales from divested
businesses
|
|
|
(38.3)
|
|
|
|
(30.3)
|
|
|
|
(1.5)
|
|
|
|
(1.9)
|
|
|
|
(72.0)
|
|
Organic Net Sales
|
|
$
|
3,505.3
|
|
|
$
|
3,551.4
|
|
|
$
|
708.2
|
|
|
$
|
608.3
|
|
|
$
|
8,373.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc. Reconciliation of Non-GAAP
Financial Measures to Reported Financial
Measures (in
millions)
|
|
Q3
FY22
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
231.5
|
|
|
$
|
158.0
|
|
|
$
|
29.9
|
|
|
$
|
4.7
|
|
|
$
|
(64.9)
|
|
|
$
|
359.2
|
|
Restructuring
plans
|
|
|
2.6
|
|
|
|
1.2
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
6.7
|
|
|
|
10.7
|
|
Impairment of
businesses held for sale
|
|
|
3.9
|
|
|
|
16.9
|
|
|
|
—
|
|
|
|
10.1
|
|
|
|
—
|
|
|
|
30.9
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
0.6
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.9)
|
|
|
|
(1.9)
|
|
Adjusted Operating
Profit
|
|
$
|
238.0
|
|
|
$
|
176.1
|
|
|
$
|
30.1
|
|
|
$
|
14.8
|
|
|
$
|
(59.5)
|
|
|
$
|
399.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
19.3
|
%
|
|
|
12.8
|
%
|
|
|
12.4
|
%
|
|
|
2.0
|
%
|
|
|
|
|
|
|
12.3
|
%
|
Adjusted Operating
Profit Margin
|
|
|
19.9
|
%
|
|
|
14.2
|
%
|
|
|
12.5
|
%
|
|
|
6.3
|
%
|
|
|
|
|
|
|
13.7
|
%
|
Year-over-year % change
- Operating Profit
|
|
|
(20.2)
|
%
|
|
|
(26.4)
|
%
|
|
|
7.1
|
%
|
|
|
(63.9)
|
%
|
|
|
(32.9)
|
%
|
|
|
(20.0)
|
%
|
Year-over-year % change
- Adjusted Operating Profit
|
|
|
(2.7)
|
%
|
|
|
(20.6)
|
%
|
|
|
7.7
|
%
|
|
|
14.8
|
%
|
|
|
(6.2)
|
%
|
|
|
(9.9)
|
%
|
Year-over-year bps
change - Operating Profit
|
|
|
(637)
|
bps
|
|
|
(508)
|
bps
|
|
|
81
|
bps
|
|
|
(455)
|
bps
|
|
|
|
|
|
|
(387)
|
bps
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
(180)
|
bps
|
|
|
(421)
|
bps
|
|
|
88
|
bps
|
|
|
(22)
|
bps
|
|
|
|
|
|
|
(230)
|
bps
|
Q3
FY21
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
290.0
|
|
|
$
|
214.6
|
|
|
$
|
27.8
|
|
|
$
|
13.0
|
|
|
$
|
(96.7)
|
|
|
$
|
448.7
|
|
Restructuring
plans
|
|
|
4.2
|
|
|
|
7.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4.2
|
|
|
|
15.4
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.5
|
|
|
|
1.5
|
|
Gain on divestiture of
a business
|
|
|
(49.7)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(49.7)
|
|
Early extinguishment of
debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24.4
|
|
|
|
24.4
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5.3
|
|
|
|
5.3
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4.3
|
|
|
|
4.3
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.4)
|
|
|
|
(6.4)
|
|
Adjusted Operating
Profit
|
|
$
|
244.5
|
|
|
$
|
221.6
|
|
|
$
|
27.8
|
|
|
$
|
13.0
|
|
|
$
|
(63.4)
|
|
|
$
|
443.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
25.7
|
%
|
|
|
17.8
|
%
|
|
|
11.6
|
%
|
|
|
6.5
|
%
|
|
|
|
|
|
|
16.2
|
%
|
Adjusted Operating
Profit Margin
|
|
|
21.6
|
%
|
|
|
18.4
|
%
|
|
|
11.6
|
%
|
|
|
6.5
|
%
|
|
|
|
|
|
|
16.0
|
%
|
Year-over-year % change
- Operating Profit
|
|
|
45.6
|
%
|
|
|
12.5
|
%
|
|
|
24.7
|
%
|
|
|
(52.7)
|
%
|
|
|
28.8
|
%
|
|
|
23.1
|
%
|
Year-over year % change
- Adjusted Operating Profit
|
|
|
16.4
|
%
|
|
|
10.0
|
%
|
|
|
24.7
|
%
|
|
|
(52.7)
|
%
|
|
|
5.1
|
%
|
|
|
10.6
|
%
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
102
|
bps
|
|
|
(29)
|
bps
|
|
|
145
|
bps
|
|
|
(490)
|
bps
|
|
|
|
|
|
|
31
|
bps
|
Q3
FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
199.3
|
|
|
$
|
190.7
|
|
|
$
|
22.3
|
|
|
$
|
27.3
|
|
|
$
|
(75.1)
|
|
|
$
|
364.5
|
|
Restructuring
plans
|
|
|
10.9
|
|
|
|
10.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
10.4
|
|
|
|
31.8
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
0.6
|
|
Loss on divestiture of
a business
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
Adjustment to contract
settlement gain
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.8
|
|
|
|
3.8
|
|
Adjusted Operating
Profit
|
|
$
|
210.3
|
|
|
$
|
201.4
|
|
|
$
|
22.3
|
|
|
$
|
27.3
|
|
|
$
|
(60.3)
|
|
|
$
|
401.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
19.6
|
%
|
|
|
17.7
|
%
|
|
|
10.1
|
%
|
|
|
11.4
|
%
|
|
|
|
|
|
|
14.3
|
%
|
Adjusted Operating
Profit Margin
|
|
|
20.6
|
%
|
|
|
18.7
|
%
|
|
|
10.1
|
%
|
|
|
11.4
|
%
|
|
|
|
|
|
|
15.7
|
%
|
2-year compound
growth -
reported
|
|
7.8%
|
|
(9.0)%
|
|
15.6%
|
|
(58.7)%
|
|
(7.0)%
|
|
(0.8)%
|
2-year compound
growth - adjusted
|
|
6.4%
|
|
(6.5)%
|
|
15.9%
|
|
(26.3)%
|
|
(0.7)%
|
|
(0.2)%
|
Conagra Brands,
Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial
Measures
(in millions)
|
|
Q3 FY22
YTD
|
|
Grocery
& Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
696.6
|
|
|
$
|
483.9
|
|
|
$
|
101.1
|
|
|
$
|
38.8
|
|
|
$
|
(188.5)
|
|
|
$
|
1,131.9
|
|
Restructuring
plans
|
|
|
8.7
|
|
|
|
13.0
|
|
|
|
0.2
|
|
|
|
0.3
|
|
|
|
16.7
|
|
|
|
38.9
|
|
Impairment of
businesses held for sale
|
|
|
26.3
|
|
|
|
28.9
|
|
|
|
—
|
|
|
|
14.9
|
|
|
|
—
|
|
|
|
70.1
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.2
|
|
|
|
2.2
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
1.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.7
|
|
Proceeds received from
the sale of a legacy investment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(14.6)
|
|
|
|
(14.6)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(5.3)
|
|
|
|
(5.3)
|
|
Adjusted Operating
Profit
|
|
$
|
731.6
|
|
|
$
|
527.5
|
|
|
$
|
101.3
|
|
|
$
|
54.0
|
|
|
$
|
(192.8)
|
|
|
$
|
1,221.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
19.7
|
%
|
|
|
13.3
|
%
|
|
|
13.7
|
%
|
|
|
5.4
|
%
|
|
|
|
|
|
|
13.1
|
%
|
Adjusted Operating
Profit Margin
|
|
|
20.7
|
%
|
|
|
14.5
|
%
|
|
|
13.7
|
%
|
|
|
7.5
|
%
|
|
|
|
|
|
|
14.2
|
%
|
Year-over-year % change
- Operating Profit
|
|
|
(21.7)
|
%
|
|
|
(32.7)
|
%
|
|
|
(4.5)
|
%
|
|
|
(36.5)
|
%
|
|
|
(33.9)
|
%
|
|
|
(24.0)
|
%
|
Year-over-year % change
- Adjusted Operating Profit
|
|
|
(15.0)
|
%
|
|
|
(28.6)
|
%
|
|
|
(4.2)
|
%
|
|
|
(11.5)
|
%
|
|
|
(0.6)
|
%
|
|
|
(22.3)
|
%
|
Year-over-year bps
change - Operating Profit
|
|
|
(541)
|
bps
|
|
|
(673)
|
bps
|
|
|
(125)
|
bps
|
|
|
(462)
|
bps
|
|
|
|
|
|
|
(452)
|
bps
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
(360)
|
bps
|
|
|
(608)
|
bps
|
|
|
(121)
|
bps
|
|
|
(251)
|
bps
|
|
|
|
|
|
|
(445)
|
bps
|
Q3 FY21
YTD
|
|
Grocery
& Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
889.2
|
|
|
$
|
719.0
|
|
|
$
|
105.8
|
|
|
$
|
61.0
|
|
|
$
|
(285.2)
|
|
|
$
|
1,489.8
|
|
Restructuring
plans
|
|
|
25.9
|
|
|
|
19.9
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
16.3
|
|
|
|
62.0
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4.7
|
|
|
|
4.7
|
|
Gain on divestiture of
businesses
|
|
|
(55.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(55.0)
|
|
Early extinguishment of
debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
68.7
|
|
|
|
68.7
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.5
|
|
|
|
6.5
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.3
|
|
|
|
2.3
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(7.2)
|
|
|
|
(7.2)
|
|
Adjusted Operating
Profit
|
|
$
|
860.1
|
|
|
$
|
738.9
|
|
|
$
|
105.7
|
|
|
$
|
61.0
|
|
|
$
|
(193.9)
|
|
|
$
|
1,571.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
25.1
|
%
|
|
|
20.1
|
%
|
|
|
14.9
|
%
|
|
|
10.0
|
%
|
|
|
|
|
|
|
17.6
|
%
|
Adjusted Operating
Profit Margin
|
|
|
24.3
|
%
|
|
|
20.6
|
%
|
|
|
14.9
|
%
|
|
|
10.0
|
%
|
|
|
|
|
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conagra Brands,
Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial
Measures
(in millions)
|
|
Q3
FY22
|
|
Gross
profit
|
|
|
Selling, general and administrative expenses
|
|
|
Operating
profit 1
|
|
|
Income before
income taxes and
equity method
investment earnings
|
|
|
Income
tax
expense
|
|
|
Income
tax
rate
|
|
|
Net income
attributable
to Conagra
Brands, Inc.
|
|
|
Diluted EPS from
income attributable
to Conagra
Brands, Inc common
stockholders
|
|
Reported
|
|
$
|
697.2
|
|
|
$
|
338.0
|
|
|
$
|
359.2
|
|
|
$
|
280.7
|
|
|
$
|
109.9
|
|
|
|
33.4
|
%
|
|
$
|
218.4
|
|
|
$
|
0.45
|
|
% of Net
Sales
|
|
|
23.9
|
%
|
|
|
11.6
|
%
|
|
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
5.6
|
|
|
|
5.1
|
|
|
|
10.7
|
|
|
|
10.7
|
|
|
|
2.5
|
|
|
|
|
|
|
|
8.2
|
|
|
|
0.02
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.4
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(1.9)
|
|
|
|
—
|
|
|
|
(1.9)
|
|
|
|
(1.9)
|
|
|
|
(0.4)
|
|
|
|
|
|
|
|
(1.5)
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
64.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Impairment of
businesses held for sale
|
|
|
—
|
|
|
|
30.9
|
|
|
|
30.9
|
|
|
|
30.9
|
|
|
|
2.7
|
|
|
|
|
|
|
|
28.2
|
|
|
|
0.06
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(25.0)
|
|
|
|
|
|
|
|
25.0
|
|
|
|
0.05
|
|
Adjusted
|
|
$
|
700.9
|
|
|
$
|
236.5
|
|
|
$
|
399.5
|
|
|
$
|
321.0
|
|
|
$
|
89.9
|
|
|
|
24.4
|
%
|
|
$
|
278.7
|
|
|
$
|
0.58
|
|
% of Net
Sales
|
|
|
24.1
|
%
|
|
|
8.1
|
%
|
|
|
13.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - reported
|
|
|
(344)
|
bps
|
|
|
43
|
bps
|
|
|
(387)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - adjusted
|
|
|
(342)
|
bps
|
|
|
(71)
|
bps
|
|
|
(230)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
(8.1)
|
%
|
|
|
9.2
|
%
|
|
|
(20.0)
|
%
|
|
|
(22.4)
|
%
|
|
|
8.3
|
%
|
|
|
|
|
|
|
(22.4)
|
%
|
|
|
(22.4)
|
%
|
Year-over-year
change - adjusted
|
|
|
(7.9)
|
%
|
|
|
(3.3)
|
%
|
|
|
(9.9)
|
%
|
|
|
(10.0)
|
%
|
|
|
(0.3)
|
%
|
|
|
|
|
|
|
(3.1)
|
%
|
|
|
(1.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
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
|
|
$
|
758.4
|
|
|
$
|
309.7
|
|
|
$
|
448.7
|
|
|
$
|
361.8
|
|
|
$
|
101.6
|
|
|
|
26.5
|
%
|
|
$
|
281.4
|
|
|
$
|
0.58
|
|
% of Net
Sales
|
|
|
27.4
|
%
|
|
|
11.2
|
%
|
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
9.2
|
|
|
|
6.2
|
|
|
|
15.4
|
|
|
|
15.4
|
|
|
|
3.8
|
|
|
|
|
|
|
|
11.6
|
|
|
|
0.02
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
1.5
|
|
|
|
1.5
|
|
|
|
1.5
|
|
|
|
0.3
|
|
|
|
|
|
|
|
1.2
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(6.4)
|
|
|
|
—
|
|
|
|
(6.4)
|
|
|
|
(6.4)
|
|
|
|
(1.6)
|
|
|
|
|
|
|
|
(4.8)
|
|
|
|
(0.01)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
73.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Gain on divestiture of
a business
|
|
|
—
|
|
|
|
(49.7)
|
|
|
|
(49.7)
|
|
|
|
(49.7)
|
|
|
|
(21.8)
|
|
|
|
|
|
|
|
(27.9)
|
|
|
|
(0.06)
|
|
Early extinguishment of
debt
|
|
|
—
|
|
|
|
24.4
|
|
|
|
24.4
|
|
|
|
24.4
|
|
|
|
6.1
|
|
|
|
|
|
|
|
18.3
|
|
|
|
0.04
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
5.3
|
|
|
|
5.3
|
|
|
|
5.3
|
|
|
|
1.3
|
|
|
|
|
|
|
|
4.0
|
|
|
|
0.01
|
|
Legal
matters
|
|
|
—
|
|
|
|
4.3
|
|
|
|
4.3
|
|
|
|
4.3
|
|
|
|
1.1
|
|
|
|
|
|
|
|
3.2
|
|
|
|
0.01
|
|
Capital loss valuation
allowance adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
0.5
|
|
|
|
—
|
|
Adjusted
|
|
$
|
761.2
|
|
|
$
|
244.4
|
|
|
$
|
443.5
|
|
|
$
|
356.6
|
|
|
$
|
90.3
|
|
|
|
23.9
|
%
|
|
$
|
287.5
|
|
|
$
|
0.59
|
|
% of Net
Sales
|
|
|
27.5
|
%
|
|
|
8.8
|
%
|
|
|
16.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - reported
|
|
|
58
|
bps
|
|
|
(135)
|
bps
|
|
|
193
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - adjusted
|
|
|
12
|
bps
|
|
|
(27)
|
bps
|
|
|
31
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
10.8
|
%
|
|
|
(3.2)
|
%
|
|
|
23.1
|
%
|
|
|
37.5
|
%
|
|
|
47.4
|
%
|
|
|
|
|
|
|
37.8
|
%
|
|
|
38.1
|
%
|
Year-over-year
change - adjusted
|
|
|
8.9
|
%
|
|
|
5.2
|
%
|
|
|
10.6
|
%
|
|
|
19.8
|
%
|
|
|
17.8
|
%
|
|
|
|
|
|
|
24.1
|
%
|
|
|
25.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
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
|
|
$
|
684.4
|
|
|
$
|
319.9
|
|
|
$
|
364.5
|
|
|
$
|
263.2
|
|
|
$
|
68.9
|
|
|
|
25.2
|
%
|
|
$
|
204.4
|
|
|
$
|
0.42
|
|
% of Net
Sales
|
|
|
26.8
|
%
|
|
|
12.5
|
%
|
|
|
14.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
10.9
|
|
|
|
20.9
|
|
|
|
31.8
|
|
|
|
31.8
|
|
|
|
7.9
|
|
|
|
|
|
|
|
23.9
|
|
|
|
0.05
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.6
|
|
|
|
0.2
|
|
|
|
|
|
|
|
0.4
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
3.8
|
|
|
|
—
|
|
|
|
3.8
|
|
|
|
3.8
|
|
|
|
1.0
|
|
|
|
|
|
|
|
2.8
|
|
|
|
0.01
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
65.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Pension settlement and
valuation adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.9)
|
|
|
|
(0.4)
|
|
|
|
|
|
|
|
(1.5)
|
|
|
|
—
|
|
Adjustment to gain on
Ardent JV asset sale
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
|
|
|
|
0.5
|
|
|
|
—
|
|
Adjustment to contract
settlement gain
|
|
|
—
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
|
|
|
|
0.1
|
|
|
|
—
|
|
Loss on divestiture of
a business
|
|
|
—
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
|
|
|
|
0.1
|
|
|
|
—
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.1)
|
|
|
|
|
|
|
|
1.1
|
|
|
|
—
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Adjusted
|
|
$
|
699.1
|
|
|
$
|
232.6
|
|
|
$
|
401.0
|
|
|
$
|
297.8
|
|
|
$
|
76.7
|
|
|
|
24.8
|
%
|
|
$
|
231.8
|
|
|
$
|
0.47
|
|
% of Net
Sales
|
|
|
27.4
|
%
|
|
|
9.1
|
%
|
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2-year compound
growth - reported
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.5
|
%
|
2-year compound
growth - adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.1
|
%
|
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)
|
|
Q3 FY22
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
|
|
$
|
2,125.4
|
|
|
$
|
993.5
|
|
|
$
|
1,131.9
|
|
|
$
|
896.5
|
|
|
$
|
263.8
|
|
|
|
26.5
|
%
|
|
$
|
729.3
|
|
|
$
|
1.51
|
|
% of Net
Sales
|
|
|
24.6
|
%
|
|
|
11.5
|
%
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
21.9
|
|
|
|
17.0
|
|
|
|
38.9
|
|
|
|
38.9
|
|
|
|
9.5
|
|
|
|
|
|
|
|
29.4
|
|
|
|
0.06
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
2.2
|
|
|
|
2.2
|
|
|
|
2.2
|
|
|
|
0.6
|
|
|
|
|
|
|
|
1.6
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(5.3)
|
|
|
|
—
|
|
|
|
(5.3)
|
|
|
|
(5.3)
|
|
|
|
(1.3)
|
|
|
|
|
|
|
|
(4.0)
|
|
|
|
(0.01)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
198.5
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
0.5
|
|
|
|
|
|
|
|
1.2
|
|
|
|
—
|
|
Legal
matters
|
|
|
—
|
|
|
|
(14.6)
|
|
|
|
(14.6)
|
|
|
|
(14.6)
|
|
|
|
(3.6)
|
|
|
|
|
|
|
|
(11.0)
|
|
|
|
(0.02)
|
|
Proceeds received from
the sale of a legacy investment
|
|
|
—
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
|
|
(3.3)
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
(2.8)
|
|
|
|
(0.01)
|
|
Impairment of
businesses held for sale
|
|
|
—
|
|
|
|
70.1
|
|
|
|
70.1
|
|
|
|
70.1
|
|
|
|
9.7
|
|
|
|
|
|
|
|
60.4
|
|
|
|
0.13
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(21.4)
|
|
|
|
|
|
|
|
21.4
|
|
|
|
0.04
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
2,142.0
|
|
|
$
|
721.9
|
|
|
$
|
1,221.6
|
|
|
$
|
986.2
|
|
|
$
|
257.3
|
|
|
|
23.7
|
%
|
|
$
|
825.5
|
|
|
$
|
1.71
|
|
% of Net
Sales
|
|
|
24.8
|
%
|
|
|
8.4
|
%
|
|
|
14.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - reported
|
|
|
(446)
|
bps
|
|
|
6
|
bps
|
|
|
(452)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year %
of net sales change - adjusted
|
|
|
(453)
|
bps
|
|
|
(22)
|
bps
|
|
|
(445)
|
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
(13.5)
|
%
|
|
|
2.7
|
%
|
|
|
(24.0)
|
%
|
|
|
(25.9)
|
%
|
|
|
(1.9)
|
%
|
|
|
|
|
|
|
(26.3)
|
%
|
|
|
(25.2)
|
%
|
Year-over-year
change - adjusted
|
|
|
(13.6)
|
%
|
|
|
(0.4)
|
%
|
|
|
(22.3)
|
%
|
|
|
(23.6)
|
%
|
|
|
(17.5)
|
%
|
|
|
|
|
|
|
(19.7)
|
%
|
|
|
(18.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 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
|
|
$
|
2,457.5
|
|
|
$
|
967.7
|
|
|
$
|
1,489.8
|
|
|
$
|
1,209.0
|
|
|
$
|
269.0
|
|
|
|
21.3
|
%
|
|
$
|
989.3
|
|
|
$
|
2.02
|
|
% of Net
Sales
|
|
|
29.1
|
%
|
|
|
11.5
|
%
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
29.1
|
|
|
|
32.9
|
|
|
|
62.0
|
|
|
|
62.0
|
|
|
|
15.5
|
|
|
|
|
|
|
|
46.5
|
|
|
|
0.09
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
4.7
|
|
|
|
4.7
|
|
|
|
4.7
|
|
|
|
1.1
|
|
|
|
|
|
|
|
3.6
|
|
|
|
0.01
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(7.2)
|
|
|
|
—
|
|
|
|
(7.2)
|
|
|
|
(7.2)
|
|
|
|
(1.8)
|
|
|
|
|
|
|
|
(5.4)
|
|
|
|
(0.01)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
182.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Gain on divestiture of
businesses
|
|
|
—
|
|
|
|
(55.0)
|
|
|
|
(55.0)
|
|
|
|
(55.0)
|
|
|
|
(23.6)
|
|
|
|
|
|
|
|
(31.4)
|
|
|
|
(0.06)
|
|
Early extinguishment of
debt
|
|
|
—
|
|
|
|
68.7
|
|
|
|
68.7
|
|
|
|
68.7
|
|
|
|
17.2
|
|
|
|
|
|
|
|
51.5
|
|
|
|
0.11
|
|
Consulting fees on tax
matters
|
|
|
—
|
|
|
|
6.5
|
|
|
|
6.5
|
|
|
|
6.5
|
|
|
|
1.6
|
|
|
|
|
|
|
|
4.9
|
|
|
|
0.01
|
|
Legal
matters
|
|
|
—
|
|
|
|
2.3
|
|
|
|
2.3
|
|
|
|
2.3
|
|
|
|
0.6
|
|
|
|
|
|
|
|
1.7
|
|
|
|
—
|
|
Capital loss valuation
allowance adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
24.8
|
|
|
|
|
|
|
|
(24.8)
|
|
|
|
(0.05)
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7.6
|
|
|
|
|
|
|
|
(7.6)
|
|
|
|
(0.02)
|
|
Adjusted
|
|
$
|
2,479.4
|
|
|
$
|
724.8
|
|
|
$
|
1,571.8
|
|
|
$
|
1,291.0
|
|
|
$
|
312.0
|
|
|
|
23.2
|
%
|
|
$
|
1,028.3
|
|
|
$
|
2.10
|
|
% of Net
Sales
|
|
|
29.4
|
%
|
|
|
8.6
|
%
|
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
February 27,
2022
|
|
|
February 28,
2021
|
|
|
%
Change
|
|
Net cash flows from
operating activities
|
|
$
|
752.6
|
|
|
$
|
1,070.0
|
|
|
|
(29.7)
|
%
|
Additions to
property, plant and equipment
|
|
|
(364.2)
|
|
|
|
(396.7)
|
|
|
|
(8.2)
|
%
|
Free cash
flow
|
|
$
|
388.4
|
|
|
$
|
673.3
|
|
|
|
(42.3)
|
%
|
|
Q3FY22
|
|
|
Q3FY21
|
|
Notes
payable
|
$
|
362.8
|
|
|
$
|
728.7
|
|
Current installments
of long-term debt
|
|
706.3
|
|
|
|
220.6
|
|
Senior long-term
debt, excluding current installments
|
|
8,089.1
|
|
|
|
8,278.1
|
|
Total
Debt
|
$
|
9,158.2
|
|
|
$
|
9,227.4
|
|
Less: Cash
|
|
79.7
|
|
|
|
80.7
|
|
Net
Debt
|
$
|
9,078.5
|
|
|
$
|
9,146.7
|
|
|
|
Q3 FY22 LTM
2
|
|
Net
Debt
|
|
$
|
9,078.5
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
1,038.8
|
|
Add
Back: Income tax expense
|
|
|
188.6
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.6)
|
|
Interest expense,
net
|
|
|
382.1
|
|
Depreciation
|
|
|
324.3
|
|
Amortization
|
|
|
59.4
|
|
Earnings before
interest, taxes, depreciation, and amortization
(EBITDA)
|
|
$
|
1,992.6
|
|
Restructuring plans
1
|
|
|
34.0
|
|
Acquisitions and
divestitures
|
|
|
3.2
|
|
Corporate hedging
derivative gains
|
|
|
(13.7)
|
|
Consulting fees on
tax matters
|
|
|
2.4
|
|
Gain on divestiture
of businesses
|
|
|
(3.4)
|
|
Proceeds received
from the sale of a legacy investment
|
|
|
(3.3)
|
|
Impairment of
businesses held for sale
|
|
|
70.1
|
|
Legal
matters
|
|
|
(14.3)
|
|
Brand impairment
charges
|
|
|
90.9
|
|
Adjusted
EBITDA
|
|
$
|
2,158.5
|
|
|
|
|
|
|
Net Debt to
Adjusted LTM EBITDA
|
|
|
4.2
|
|
|
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)
|
|
|
|
Q3
FY22
|
|
|
Q3
FY21
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
218.4
|
|
|
$
|
281.4
|
|
|
|
(22.4)
|
%
|
Add
Back: Income tax expense
|
|
|
109.9
|
|
|
|
101.6
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.2)
|
|
|
|
(0.2)
|
|
|
|
|
|
Interest expense,
net
|
|
|
94.6
|
|
|
|
100.6
|
|
|
|
|
|
Depreciation
|
|
|
77.3
|
|
|
|
81.7
|
|
|
|
|
|
Amortization
|
|
|
14.8
|
|
|
|
14.9
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
514.8
|
|
|
$
|
580.0
|
|
|
|
(11.3)
|
%
|
Restructuring plans
1
|
|
|
8.1
|
|
|
|
6.6
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
0.6
|
|
|
|
1.5
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(1.9)
|
|
|
|
(6.4)
|
|
|
|
|
|
Early extinguishment
of debt
|
|
|
—
|
|
|
|
24.4
|
|
|
|
|
|
Consulting fees on
tax matters
|
|
|
—
|
|
|
|
5.3
|
|
|
|
|
|
Impairment of
businesses held for sale
|
|
|
30.9
|
|
|
|
—
|
|
|
|
|
|
Gain on divestiture
of a business
|
|
|
—
|
|
|
|
(49.7)
|
|
|
|
|
|
Legal
matters
|
|
|
—
|
|
|
|
4.3
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
552.5
|
|
|
$
|
566.0
|
|
|
|
(2.4)
|
%
|
|
1 Excludes
comparability items related to depreciation.
|
|
|
Q3 FY22
YTD
|
|
|
Q3 FY21
YTD
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
729.3
|
|
|
$
|
989.3
|
|
|
|
(26.3)
|
%
|
Add
Back: Income tax expense
|
|
|
263.8
|
|
|
|
269.0
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.4)
|
|
|
|
(0.6)
|
|
|
|
|
|
Interest expense,
net
|
|
|
283.7
|
|
|
|
322.0
|
|
|
|
|
|
Depreciation
|
|
|
241.1
|
|
|
|
244.8
|
|
|
|
|
|
Amortization
|
|
|
44.5
|
|
|
|
44.8
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
1,562.0
|
|
|
$
|
1,869.3
|
|
|
|
(16.4)
|
%
|
Restructuring plans
1
|
|
|
25.3
|
|
|
|
36.3
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
2.2
|
|
|
|
4.7
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(5.3)
|
|
|
|
(7.2)
|
|
|
|
|
|
Early extinguishment
of debt
|
|
|
—
|
|
|
|
68.7
|
|
|
|
|
|
Consulting fees on
tax matters
|
|
|
1.7
|
|
|
|
6.5
|
|
|
|
|
|
Proceeds received
from the sale of a legacy investment
|
|
|
(3.3)
|
|
|
|
—
|
|
|
|
|
|
Impairment of
businesses held for sale
|
|
|
70.1
|
|
|
|
—
|
|
|
|
|
|
Gain on divestiture
of businesses
|
|
|
—
|
|
|
|
(55.0)
|
|
|
|
|
|
Legal
matters
|
|
|
(14.6)
|
|
|
|
2.3
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
1,638.1
|
|
|
$
|
1,925.6
|
|
|
|
(14.9)
|
%
|
|
1 Excludes
comparability items related to depreciation.
|
For more information, please contact:
MEDIA:
Mike Cummins
312-549-5257
Michael.Cummins@conagra.com
INVESTORS:
Bayle Ellis
312-549-5958
IR@conagra.com
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SOURCE Conagra Brands, Inc.