Conagra(US:CAG)2024-04-04 20:30Financial Performance - Net sales for the thirteen weeks ended February 25, 2024, were $3,032.9 million, a decrease of 1.7% compared to $3,086.5 million for the same period in 2023[10] - Net income attributable to Conagra Brands, Inc. for the thirty-nine weeks ended February 25, 2024, was $914.5 million, an increase of 41.5% from $646.1 million in the prior year[10] - Earnings per share (EPS) for the thirteen weeks ended February 25, 2024, were $0.64, down from $0.72 in the same period last year[10] - The company reported a net income of $308.8 million for the thirteen weeks ended February 25, 2024, compared to $342.2 million for the same period in 2023[10] - Net income for the thirty-nine weeks ended February 25, 2024, was $914.9 million, an increase of 41.3% compared to $646.9 million for the same period in 2023[17] - Comprehensive income attributable to Conagra Brands, Inc. for the thirty-nine weeks ended February 25, 2024, was $915.1 million, compared to $633.8 million for the same period in 2023[13] Expenses and Costs - The cost of goods sold for the thirty-nine weeks ended February 25, 2024, was $6,616.5 million, a decrease of 3.0% from $6,822.3 million in the previous year[10] - Selling, general and administrative expenses increased to $1,119.6 million for the thirty-nine weeks ended February 25, 2024, compared to $1,463.1 million in the same period last year[10] - Interest expense for the thirteen weeks ended February 25, 2024, was $106.5 million, slightly up from $104.2 million in the same period last year[10] - The company recognized an impairment charge of $34.2 million related to the planned sale of Agro Tech Foods Limited[25] - The company recognized goodwill impairment charges totaling $20.7 million during the first three quarters of fiscal 2024, with no associated tax benefit[63] Assets and Liabilities - The total assets as of February 25, 2024, were reported at $12,000 million, reflecting the company's financial position[14] - Total current assets decreased to $3,285.8 million from $3,385.0 million, reflecting a decline of 2.9%[15] - Total liabilities decreased to $12,694.4 million from $13,245.3 million, a reduction of 4.2%[15] - Cash and cash equivalents at the end of the period were $78.5 million, down from $93.3 million, representing a decrease of 15.9%[17] - The company had approximately $50.3 million of short-term borrowings related to supplier financing arrangements as of February 25, 2024[41] Equity and Stockholder Information - Total stockholders' equity increased to $9,225.5 million from $8,807.3 million, reflecting a growth of 4.7%[15] - Retained earnings rose to $7,011.7 million as of February 25, 2024, an increase from $6,599.4 million on May 28, 2023[89] - Dividends declared on common stock remained consistent at $0.35 per share, totaling $167.4 million for the period[89] - The balance of treasury stock decreased to $(43.8) million as of February 25, 2024, from $(44.4) million on May 28, 2023[89] Cash Flow and Financing Activities - Net cash flows from operating activities increased to $1,531.3 million, compared to $703.4 million for the same period in 2023, marking a growth of 117.5%[17] - Cash used during the first three quarters of fiscal 2024 was $14.6 million, resulting from $1.53 billion generated from operating activities[170] - Cash used in investing activities rose to $295.6 million in the first three quarters of fiscal 2024, compared to $260.2 million in fiscal 2023, mainly driven by capital expenditures of $309.6 million[172] - Cash used in financing activities surged to $1.25 billion in the first three quarters of fiscal 2024, up from $454.5 million in fiscal 2023, reflecting long-term debt repayments of $766.8 million and cash dividends paid of $492.0 million[173] Segment Performance - The Grocery & Snacks segment reported net sales of $1,286.0 million, up 3.4% from $1,243.7 million year-over-year[109] - The Refrigerated & Frozen segment experienced a decline in net sales to $1,202.4 million, down 8.0% from $1,307.7 million in the prior year[109] - International segment net sales increased by 4.0% to $271.7 million, compared to $259.7 million in the previous year[109] - Operating profit in the Grocery & Snacks segment for Q3 fiscal 2024 was $299.3 million, a 16.7% increase from $256.4 million in Q3 fiscal 2023[140] - Operating profit in the Refrigerated & Frozen segment for Q3 fiscal 2024 decreased to $201.5 million, a 23.6% decline from $263.6 million in Q3 fiscal 2023[140] Restructuring and Legal Matters - As of February 25, 2024, the Conagra Restructuring Plan has incurred approved costs of $228.8 million, including $69.5 million in cash charges and $159.3 million in non-cash charges[29] - In the first three quarters of fiscal 2024, Conagra recognized total charges of $28.9 million related to the restructuring plan, compared to $7.5 million in the same period of fiscal 2023, reflecting a year-over-year increase of approximately 285.3%[30] - The company is involved in litigation matters related to its acquisition of Beatrice Company, with a settlement agreement requiring payments totaling $101.7 million, of which $73.0 million had been paid as of February 25, 2024[71] Market and Economic Conditions - The company continues to face risks related to inflation, supply chain challenges, and changing consumer preferences, which may impact future performance[114] - Input cost inflation is expected to continue throughout the remainder of fiscal 2024, although supply chain stability has improved[120]