Conagra Brands, Inc. (NYSE:CAG) Q2 2023 Earnings Conference Call January 5, 2023 9:30 AM ET Company Participants Melissa Napier - Senior Vice President, Investor Relations Sean Connolly - Chief Executive Officer Dave Marberger - Chief Financial Officer Conference Call Participants Andrew Lazar - Barclays Cody Ross - UBS Ken Goldman - JPMorgan Alexia Howard - Bernstein David Palmer - Evercore ISI Max Gumport - BNP Pamela Kaufman - Morgan Stanley Robert Moskow - Credit Suisse Operator Good morning, everyone a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 27, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Exact name of registrant as specified in its charter) Delaware 47-0248710 (State or other jurisdiction of incorporation or organization) 222 W. Merchan ...

Financial Data and Key Metrics Changes - Conagra reported organic net sales of over $2.9 billion, a 9.7% increase year-over-year [7] - Adjusted operating margin was 13.7%, slightly down from the previous year due to supply chain inefficiencies [7] - Adjusted earnings per share (EPS) increased by 14% to $0.57 compared to the prior year [7][16] Business Line Data and Key Metrics Changes - Retail sales grew by almost 9% year-over-year and over 24% compared to three years ago [8] - Frozen segment sales increased by 8% year-over-year and 27% over three years, driven by plant-based proteins and single-serve meals [9] - Snacks segment retail sales rose by 13% year-over-year and 36% over three years, with microwave popcorn sales increasing by over 20% [9] - Grocery and Snacks segments achieved net sales growth of 10.5% and 9.6% respectively [18] Market Data and Key Metrics Changes - The company gained market share in frozen and snacks domains, with increases of 0.8 and 1.5 percentage points respectively [8] - Private label products have increased their dollar share in certain categories, but Conagra's exposure remains limited [11] Company Strategy and Development Direction - Conagra aims to strengthen its balance sheet while investing in business and returning cash to shareholders [7] - The company is focused on productivity initiatives and maintaining operating margin targets despite supply chain challenges [14][15] - Continued investments in brand-building and strategic pricing actions are planned to offset inflation [24][25] Management's Comments on Operating Environment and Future Outlook - Management expects the operating environment to remain dynamic, with inflation pressures persisting but moderating in certain areas [15][24] - The company is confident in achieving fiscal '23 guidance, supported by strong brand performance and productivity initiatives [25] - Supply chain improvements are ongoing, but some operational challenges are expected to continue [14][41] Other Important Information - The company reported a net leverage ratio of 3.9 times, down from 4 times at the end of fiscal '22 [22] - Capital expenditures decreased to $125 million, while free cash flow increased significantly [23] - The company reaffirmed its fiscal '23 guidance across all metrics [23] Q&A Session Summary Question: Changes in volume trends and retailer reactions to new pricing - Management noted stable net elasticities, indicating a positive response to pricing actions despite some anticipated volume weakness due to broader pricing [26][28] Question: Expectations for gross margin recovery - Management expects sequential improvement in gross margins, with the highest inflation impact already seen in Q1 [29][31] Question: Outlook on cost inflation and key drivers - Management remains cautiously optimistic about cost inflation, noting some initial relief in commodity prices but acknowledging ongoing volatility [33][35] Question: Impact of supply chain challenges on gross margin - Management indicated that operational challenges have impacted productivity, but improvements are expected as supply chain conditions normalize [72][75] Question: Promotional activity and its relationship with service levels - Management stated that promotional activity is currently low but may increase selectively as service levels improve [42][43]

Financial Performance - Conagra Brands reported net sales of $2,904.3 million for the first quarter of fiscal 2023, a 9% increase compared to $2,653.3 million in the same period of fiscal 2022[136]. - The Grocery & Snacks segment saw net sales of $1,188.3 million, an 11% increase, despite a 6% decrease in volumes due to inflation-driven pricing actions[136]. - The Refrigerated & Frozen segment reported net sales of $1,207.6 million, a 10% increase, with a 2% decrease in volumes also attributed to inflation-driven pricing[137]. - The Foodservice segment experienced a 15% increase in net sales to $274.9 million, reflecting a recovery in consumer traffic in away-from-home food outlets[136]. - The International segment's net sales decreased by 1% to $233.5 million, with a 7% decrease in volumes and a 2% negative impact from unfavorable foreign exchange rates[137]. - Net sales in the Foodservice segment decreased by 4% in Q1 fiscal 2023 compared to the prior year, with a price/mix increase of 19% driven by inflation[138]. Earnings and Losses - Diluted loss per share for the first quarter of fiscal 2023 was $0.16, compared to diluted earnings per share of $0.49 in the first quarter of fiscal 2022[119]. - The company recognized charges totaling $385.7 million related to goodwill and brand impairments in the Refrigerated & Frozen segment[123]. - The Refrigerated & Frozen segment experienced an operating loss of $216.3 million in Q1 fiscal 2023, including $385.7 million in goodwill impairments[142]. - Diluted loss per share in Q1 fiscal 2023 was $0.16, compared to diluted earnings per share of $0.49 in Q1 fiscal 2022[150]. - Equity method investment earnings increased to $49.2 million in Q1 fiscal 2023 from $20.2 million in Q1 fiscal 2022, reflecting favorable market conditions[149]. Costs and Expenses - Input cost inflation and elevated supply chain costs negatively impacted gross margins, with expectations for continued inflation throughout fiscal 2023[120]. - SG&A expenses totaled $741.6 million in Q1 fiscal 2023, an increase of $431.5 million from Q1 fiscal 2022, impacted by goodwill impairments and restructuring charges[139]. - The company has incurred $180.6 million in charges related to the Conagra Restructuring Plan as of August 28, 2022[125]. Cash Flow and Capital Expenditures - Cash generated from operating activities in Q1 fiscal 2023 was $263.7 million, up from $139.8 million in Q1 fiscal 2022, primarily due to higher gross profits and accelerated receipt of receivables[171]. - The company utilized customer payment term offerings to increase cash flow from operations by approximately $164 million in Q1 fiscal 2023[171]. - Cash used in investing activities totaled $123.4 million in Q1 fiscal 2023, down from $154.9 million in Q1 fiscal 2022, mainly due to capital expenditures[172]. - Cash used in financing activities was $154.4 million in Q1 fiscal 2023, compared to cash generated of $5.5 million in Q1 fiscal 2022, reflecting net short-term borrowing issuances and cash dividends paid[173]. - The company expects capital expenditures of approximately $500 million for fiscal 2023[167]. Debt and Financing - The carrying amount of long-term debt was $8.79 billion as of August 28, 2022, with a fair value estimated at $8.71 billion[180]. - A 1% increase in interest rates would decrease the fair value of the company's fixed-rate debt by approximately $457.2 million[180]. - As of August 28, 2022, the company had $248.0 million outstanding under its commercial paper program, with a maximum borrowing of $398.0 million during Q1 fiscal 2023[154]. - The company repurchased 1.4 million shares for $50.0 million during Q1 fiscal 2023, with a remaining authorization of $1.02 billion[161]. External Factors - The ongoing conflict between Russia and Ukraine has led to increased costs for transportation and raw materials, although it has not materially impacted the company's operations to date[121]. - The company has entered into commodity hedges to manage price risk associated with commodity inputs[179]. - The company may use interest rate swaps to manage the effect of interest rate changes on the fair value of existing debt[180]. Taxation - The effective tax rate for Q1 fiscal 2023 was approximately (22.8)%, significantly impacted by non-deductible goodwill impairments[148].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 29, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-7275 CONAGRA BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 47-0248710 (State or other jurisdiction of incorpor ...

Conagra Brands, Inc. (NYSE:CAG) Q4 2022 Earnings Conference Call July 14, 2022 9:30 AM ET Company Participants Melissa Napier - Head of IR Sean Connolly - President and CEO Dave Marberger - EVP and CFO Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan David Palmer - Evercore ISI Alexia Howard - Bernstein Chris Growe - Stifel Rob Moskow - Credit Suisse Bryan Spillane - BofA Securities Jason English - Goldman Sachs Simon Negin - UBS Operator Good morning, and welcome to the Conagra B ...

Conagra Brands, Inc. (NYSE:CAG) Q3 2022 Earnings Conference Call April 7, 2022 9:30 AM ET Company Participants Bayle Ellis - Investor Relations Sean Connolly - President and CEO Dave Marberger - EVP and CFO Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Bryan Spillane - BofA Securities David Palmer - Evercore ISI Rob Dickerson - Jefferies Chris Growe - Stifel Operator Good morning, and welcome to the Conagra Brands Third Quarter Fiscal Year 2022 Earnings Conference Call. All ...