Q3 FY25 Performance - Conagra's Q3 organic net sales decreased by 5.2% to $2852 million compared to the previous year[40] - The adjusted gross margin was 24.8%, a decrease of 389 basis points year-over-year[40] - Adjusted operating margin was 12.7%, down 369 basis points compared to last year[40] - Adjusted EPS decreased by 26.1% to $0.51[40] Segment Performance - Grocery & Snacks net sales were $1245 million, a decrease of 3.9% organically[43] - Refrigerated & Frozen net sales were $1116 million, a decrease of 7.2% organically[43] - International net sales decreased by 1.2% organically to $224 million[43] - Foodservice net sales decreased by 6.3% organically to $256 million[43] Volume and Pricing - Total Conagra Brands volume decreased by 3.1%, while price/mix decreased by 2.1%[43] - Conagra Domestic Retail Consumption volume increased by 1.1%[9] FY25 Guidance - The company maintained its FY25 guidance, projecting organic net sales growth of approximately -2.0%[36] - Adjusted operating margin is expected to be around 14.4%[36] - Adjusted EPS is projected to be approximately $2.35[36]

Financial Data and Key Metrics Changes - Conagra's organic net sales for Q3 were $2.9 billion, reflecting a 5.2% decline compared to the prior year [18] - Adjusted gross margin was 24.8% and adjusted operating margin was 12.7%, both down from the previous year [18] - Adjusted earnings per share (EPS) were $0.51, a decrease of $0.18 year-over-year [18] Business Line Data and Key Metrics Changes - Grocery and Snacks segment net sales were $1.2 billion, down 3.9% year-over-year due to lower volumes and unfavorable price mix [20] - Refrigerated and Frozen segment net sales were $1.1 billion, down 7.2% year-over-year, impacted by supply constraints [21] - International segment organic net sales declined 1.2% year-over-year, with volume declines partially offset by price mix increases [21] - Foodservice business organic net sales decreased 6.3% year-over-year, affected by ongoing softness in commercial traffic [22] Market Data and Key Metrics Changes - Domestic retail consumption volume increased by 1.1% compared to the prior year, indicating strong consumer demand [6] - 60% of Conagra's portfolio either held or gained volume share, outperforming peers by eight percentage points [10] Company Strategy and Development Direction - The company is focused on restoring inventory and improving customer service levels through investments in infrastructure and strategic partnerships [5] - Conagra is committed to a disciplined approach to brand building, avoiding heavy discounting to ensure long-term brand health [11] - Investments are being made to expand capacity in frozen vegetables and frozen meals to meet elevated demand [29] Management's Comments on Operating Environment and Future Outlook - Management remains vigilant regarding external factors such as tariffs, inflation, and shifts in consumer sentiment, while maintaining fiscal 2025 guidance unchanged [5][16] - The company expects total company volume to improve in Q4, driven by strong consumption trends [28] Other Important Information - The company generated $1.3 billion in net cash flows from operating activities in the first three quarters of fiscal 2025, down from the prior year but historically strong [26] - Capital expenditures for the year are expected to be approximately $410 million to support supply chain modernization [31] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Financial Performance - Net sales decreased 6.3% to $2.8 billion, with organic net sales down 5.2% driven by a 2.1% negative impact from price/mix and a 3.1% decrease in volume[5]. - Gross profit decreased 17.3% to $710 million, and adjusted gross profit decreased 19.1% to $704 million due to lower net sales and inflation in cost of goods sold[6]. - Reported diluted earnings per share (EPS) was $0.30, a 53.1% decrease, while adjusted EPS was $0.51, a 26.1% decrease[6]. - Net income attributable to Conagra Brands decreased 53.0% to $145 million, or $0.30 per diluted share, compared to $309 million, or $0.64 per diluted share in the prior year[11]. - Year-to-date net sales were $8,831.0 million, a decline of 3.4% from $9,145.0 million in the same period last year[53]. - Year-to-date net income attributable to Conagra Brands, Inc. was $896.4 million, down 2.0% from $914.5 million year-over-year[53]. - Adjusted net income for Q3 FY25 was $242.1 million, with diluted EPS of $0.51, down 26.3% compared to the previous year[59]. - Net income for the thirty-nine weeks ended February 23, 2025, was $896.5 million, down from $914.9 million, reflecting a decrease of about 2.6%[55]. Cash Flow and Debt - Free cash flow decreased by $180 million to $1.0 billion, with capital expenditures at $304 million compared to $310 million in the prior year[25]. - The company ended the quarter with net debt of $8.1 billion, representing a 5.9% reduction in net debt versus the prior year period[28]. - Cash and cash equivalents at the end of the period decreased to $49.4 million from $78.5 million, a drop of approximately 37.1%[55]. - Year-to-date (YTD) net cash flows from operating activities decreased by 12.1% to $1,346.2 million compared to $1,531.3 million in the previous year[63]. - Free cash flow for YTD FY25 was $1,042.0 million, down 14.7% from $1,221.7 million in FY24[63]. - Total debt as of February 23, 2025, was $8,145.1 million, down from $8,677.3 million in the previous year[63]. - The net debt to adjusted EBITDA ratio was 3.59 as of February 23, 2025[64]. Segment Performance - The Grocery & Snacks segment net sales decreased 3.2% to $1.2 billion, with a volume share gain in snacking and staples categories[13]. - Year-over-year change in net sales for the Grocery & Snacks segment was a decrease of 3.9%[56]. - Grocery & Snacks segment operating profit decreased by 20.6% year-over-year to $237.6 million[57]. - Refrigerated & Frozen segment operating profit saw a significant decline of 52.5% year-over-year, totaling $95.7 million[57]. - The International segment reported a 49.8% increase in operating profit year-over-year, reaching $107.6 million[58]. - Conagra Brands experienced a decline in adjusted operating profit across all segments, with the most significant drop in Refrigerated & Frozen at 38.8%[57]. Expenses and Costs - Selling, general, and administrative expense (SG&A) increased 14.5% to $444 million, primarily due to charges related to legacy legal matters[9]. - The effective tax rate was 23.3%, slightly down from 23.7% in the prior year quarter[23]. - Cost of goods sold decreased by 2.0% to $2,130.7 million from $2,174.1 million year-over-year[52]. - Legal matters accounted for $95.8 million in expenses in Q3 FY25, impacting overall profitability[57]. - The company reported a loss on divestitures of $27.2 million in the third quarter, compared to no loss in the same period last year[52]. - The company reported asset impairment charges of $121.3 million for the thirty-nine weeks ended February 23, 2025, compared to $50.9 million in the prior year[55]. - Restructuring plans contributed $90.7 million to operating profit adjustments YTD[58]. Guidance and Future Outlook - The company's fiscal 2025 guidance remains unchanged, expecting organic net sales to decline approximately 2% compared to fiscal 2024 and adjusted EPS of approximately $2.35[6][35]. - The company revised its calculation methodology for Adjusted SG&A to include advertising and promotional expenses, impacting prior-year comparisons[47]. Other Financial Metrics - Adjusted EBITDA for YTD FY25 was $1,680.4 million, reflecting an 11.9% decrease from $1,906.8 million in FY24[65]. - Year-to-date (YTD) reported gross profit for Q3 FY25 was $2,296.3 million, accounting for 26.0% of net sales, a decline of 9.2% year-over-year[61]. - The company reported a corporate hedging derivative loss of $7.7 million in Q3 FY25, affecting overall profitability[59]. - The company incurred a net cash outflow from investing activities of $457.2 million, compared to $295.6 million in the previous year[55].

Group 1 - Conagra Brands, Inc. is set to release its third-quarter earnings results on April 3, with analysts expecting earnings of 53 cents per share, a decrease from 69 cents per share in the same period last year [1] - The projected quarterly revenue for Conagra is $2.9 billion, down from $3.03 billion a year earlier [1] - Conagra Brands has partnered with Bloom Energy Corp to implement advanced fuel cell technology at two manufacturing plants in Ohio [2] Group 2 - Conagra Brands shares experienced a decline of 0.8%, closing at $26.38 [2] - Recent analyst ratings include Morgan Stanley initiating coverage with an Equal-Weight rating and a price target of $27 [5] - JP Morgan maintained a Neutral rating and reduced the price target from $29 to $26 [5] - Stifel and Wells Fargo also maintained Hold and Equal-Weight ratings respectively, with price targets adjusted to $26 and $27 [5] - B of A Securities maintained a Neutral rating and cut the price target from $31 to $29 [5]

Conagra Brands, Inc. CAG will release its third-quarter earnings results before the opening bell on Thursday, April 3.Analysts expect the Chicago-based company to report quarterly earnings at 53 cents per share, down from 69 cents per share in the year-ago period. According to data from Benzinga Pro, Conagra projects quarterly revenue at $2.9 billion, compared to $3.03 billion a year earlier.Conagra Brands announced on Tuesday that it’s teaming up with Bloom Energy Corp BE to integrate advanced fuel cell te ...

Conagra Brands, Inc. (CAG) is likely to register a decline in its top and bottom lines when it reports third- quarter fiscal 2025 earnings on April 3. The Zacks Consensus Estimate for revenues is pegged at $2.9 billion, which suggests a decrease of 4.7% from the prior-year quarter's reported figure. The consensus mark for quarterly earnings has moved down by a couple of cents in the past 30 days to 52 cents per share. This indicates a decline of 24.6% from the year-ago quarter's reported figure. CAG has a t ...

New Technology Leverages Renewable Energy Solutions and Advances Conagra's Climate Change Goals CHICAGO, April 1, 2025 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) and Bloom Energy (NYSE: BE), a global leader in power solutions, today announced they will collaborate to utilize Bloom's fuel cell technology at Conagra's Troy and Archbold, Ohio production facilities. The 15-year PPA (power purchase agreement) will deploy approximately six megawatts and provide combustion-free electricity generation, supply ...

Wall Street analysts forecast that Conagra Brands (CAG) will report quarterly earnings of $0.52 per share in its upcoming release, pointing to a year-over-year decline of 24.6%. It is anticipated that revenues will amount to $2.89 billion, exhibiting a decline of 4.7% compared to the year-ago quarter. The consensus EPS estimate for the quarter has undergone a downward revision of 2.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassesse ...

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