Conagra(CAG) - 2025 Q3 - Quarterly Report

Financial Performance - Net sales for the thirteen weeks ended February 23, 2025, were $2,841.0 million, a decrease of 6.3% compared to$ 3,032.9 million for the same period in 2024[8]. - Net income for the thirty-nine weeks ended February 23, 2025, was $896.5 million, down 2.9% from$ 914.9 million for the same period in 2024[8]. - Earnings per share (EPS) for the thirteen weeks ended February 23, 2025, were $0.30, a decline of 53.1% compared to$ 0.64 for the same period in 2024[8]. - Comprehensive income attributable to Conagra Brands, Inc. for the thirty-nine weeks ended February 23, 2025, was $889.0 million, compared to$ 915.1 million for the same period in 2024[11]. - Net income for the thirty-nine weeks ended February 23, 2025, was $896.5 million, down from$ 914.9 million for the same period in the previous year, representing a decrease of about 2.6%[16]. - Net income attributable to Conagra Brands, Inc. for the thirty-nine weeks ended February 23, 2025, was $466.8 million, compared to$ 284.5 million for the same period in the previous year, representing a year-over-year increase of 64%[87]. - The company reported a net income of $145.1 million for the thirteen weeks ended February 23, 2025, compared to$ 308.8 million in the same period last year, reflecting a decrease of 53.0%[106]. - Diluted earnings per share for Q3 fiscal 2025 was $0.30, down from$ 0.64 in Q3 fiscal 2024, reflecting lower net income[116]. Expenses and Costs - Selling, general and administrative expenses increased to $443.7 million for the thirteen weeks ended February 23, 2025, up 14.5% from$ 387.4 million in the same period in 2024[8]. - The cost of goods sold for the thirty-nine weeks ended February 23, 2025, was $6,534.7 million, a decrease of 1.2% from$ 6,616.5 million in the same period in 2024[8]. - Interest expense, net, for the thirty-nine weeks ended February 23, 2025, was $314.9 million, down from$ 325.8 million for the same period in 2024[8]. - The company recognized an impairment charge of $27.2 million in the Refrigerated & Frozen segment during Q3 fiscal 2025[97]. - The company incurred asset impairment charges of$ 121.3 million during the period, compared to $50.9 million in the previous year[16]. Assets and Liabilities - Total current assets decreased from$ 3,149.5 million to $2,965.6 million, a decline of approximately 5.8%[13]. - Total liabilities decreased from$ 12,351.0 million to $11,965.4 million, a reduction of about 3.1%[13]. - Cash and cash equivalents at the end of the period decreased to$ 49.4 million from $77.7 million, a decline of approximately 36.4%[16]. - Current liabilities increased to$ 4,303.7 million as of February 23, 2025, compared to $3,241.8 million as of May 26, 2024, an increase of 33.0%[13]. - Goodwill increased from$ 10,325.9 million as of May 26, 2024, to $10,499.8 million as of February 23, 2025, reflecting an acquisition of$ 176.2 million and a currency translation adjustment of $(2.3) million[51]. Acquisitions and Divestitures - The company acquired Sweetwood Smoke & Co. for$ 179.4 million, with $129.9 million classified as goodwill[24]. - The company completed the sale of its 51.8% ownership stake in Agro Tech Foods Limited for net proceeds of$ 76.8 million, recognizing a loss of $2.3 million on the sale[27]. - The company recognized a loss on divestitures of$ 27.2 million for the thirteen weeks ended February 23, 2025, compared to no loss in the same period in 2024[8]. Restructuring and Plans - The Conagra Restructuring Plan has incurred cumulative charges of $310.2 million, with$ 90.7 million recognized in the first three quarters of fiscal 2025[34]. - The company has approved a total of $345.9 million for the Conagra Restructuring Plan, with$ 90.1 million in cash charges and $255.8 million in non-cash charges recognized[34]. - The company initiated plans to sell businesses within its Grocery & Snacks, Refrigerated & Frozen, and International segments, recognizing an impairment charge of$ 27.2 million in the third quarter of fiscal 2025[30]. Cash Flow and Financing - The company reported net cash flows from operating activities of $1,346.2 million, compared to$ 1,531.3 million in the prior year, a decrease of approximately 12.1%[16]. - Cash used in investing activities amounted to $457.2 million in the first three quarters of fiscal 2025, compared to$ 295.6 million in the same period of fiscal 2024[165]. - Cash used in financing activities was $914.3 million in the first three quarters of fiscal 2025, down from$ 1.25 billion in fiscal 2024, reflecting long-term debt repayments of $274.8 million and cash dividends paid of$ 502.2 million[166]. - The company repaid $1.0 billion of its 4.30% senior notes on May 1, 2024, funded by an unsecured term loan and commercial paper[37]. Market and Economic Conditions - The company anticipates ongoing challenges related to inflation, supply chain issues, and changing consumer preferences impacting future performance[111]. - The company anticipates continued economic pressures on consumers, including high inflation and potential tariff increases, which may affect volumes[118].