Core Insights - Conagra Brands, Inc. reported a decrease in net sales for both the fourth quarter and the full fiscal year 2025, with a 4.3% decline in Q4 to $2.8 billion and a 3.6% decline for the full year to $11.6 billion [4][9][14] - The company faced challenges such as higher inflation, foreign exchange headwinds, and supply constraints, but remains committed to its long-term value creation strategy [3][27] - The CEO emphasized a focus on investing in high-potential areas like frozen and snacks, while managing costs and enhancing supply chain resilience [3] Financial Performance - In Q4, gross profit decreased by 12.1% to $707 million, with an adjusted gross profit decrease of 10.7% to $717 million [5] - Selling, general, and administrative expenses (SG&A) decreased by 17.2% to $333 million, primarily due to lower incentive compensation [6] - Net income attributable to Conagra Brands was $256 million, or $0.53 per diluted share, with adjusted net income of $270 million, or $0.56 per diluted share [7] Segment Performance - The Grocery & Snacks segment saw a 2.1% decrease in net sales to $1.2 billion, while operating profit increased by 19.6% to $210 million [11][12] - The Refrigerated & Frozen segment reported a 4.4% decrease in net sales to $1.1 billion, with operating profit at $127 million [13] - The International segment experienced a significant 13.8% decrease in net sales to $230 million, but operating profit increased by 35.6% to $35 million [17][18] Outlook and Guidance - For fiscal 2026, the company anticipates organic net sales growth between -1% to 1%, with adjusted operating margins expected between 11.0% and 11.5% [14][32] - The company expects continued elevated cost of goods sold inflation, estimating a total inflation of approximately 7% due to various factors including tariffs [27] - The guidance includes an adjusted EPS forecast between $1.70 and $1.85 [14][32] Cash Flow and Debt - For the full fiscal year, Conagra generated $1.7 billion in net cash flows from operating activities, down from $2.0 billion in the prior year [24] - The company ended the year with net debt of $8.0 billion, reflecting a 4.4% reduction from the previous year [25] - Dividends paid increased by 1.5% to $669 million [24][26]