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ConAgra
🇺🇸 NYSE:CAG
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Feb 25, 2024

ConAgra Q3 2024 Earnings Report

Conagra Brands' financial performance decreased slightly in Q3 2024 due to strategic investments and lower consumption trends, but was partially offset by strong execution and cost savings initiatives.

Key Takeaways

Conagra Brands reported a decrease in net sales by 1.7% and a decrease in organic net sales by 2.0%. EPS decreased by 9.9% to $0.64, while adjusted EPS decreased by 9.2% to $0.69. The company is increasing its fiscal 2024 adjusted operating margin guidance and reaffirming organic net sales and adjusted EPS guidance.

Net sales decreased by 1.7%, with organic net sales down by 2.0%.

Diluted EPS decreased by 9.9% to $0.64, and adjusted EPS decreased by 9.2% to $0.69.

Gross profit increased by 2.4% to $859 million, with gross margin increasing by 114 basis points to 28.3%.

The company is increasing fiscal 2024 adjusted operating margin guidance and reaffirming organic net sales and adjusted EPS guidance.

Total Revenue
$3.03B
Previous year: $3.09B
-1.7%
EPS
$0.69
Previous year: $0.76
-9.2%
Adjusted EBITDA
$634M
Previous year: $669M
-5.3%
Gross Profit
$859M
Previous year: $839M
+2.4%
Cash and Equivalents
$78.5M
Previous year: $71.2M
+10.3%
Free Cash Flow
$581M
Previous year: $327M
+77.9%
Total Assets
$21.9B
Previous year: $22.5B
-2.4%

ConAgra

ConAgra

ConAgra Revenue by Segment

ConAgra Revenue by Geographic Location

Forward Guidance

Conagra Brands is increasing fiscal 2024 Adjusted Operating Margin guidance to approximately 15.8% and updating fiscal 2024 guidance for Net Leverage Ratio of approximately 3.44x, Capital expenditures of approximately $425M, and Interest expense of approximately $435M. The company is reaffirming fiscal 2024 guidance for Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023, Adjusted EPS is expected to be between $2.60 and $2.65, Adjusted effective tax rate of approximately 24%, No pension income, and Ardent Mills contribution of approximately $170M.

Positive Outlook

  • Increasing fiscal 2024 Adjusted Operating Margin guidance to approximately 15.8%.
  • Reaffirming fiscal 2024 guidance for Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023.
  • Reaffirming Adjusted EPS is expected to be between $2.60 and $2.65.
  • Reaffirming Adjusted effective tax rate of approximately 24%.
  • Reaffirming Ardent Mills contribution of approximately $170M.

Challenges Ahead

  • Net Leverage Ratio of approximately 3.44x
  • Capital expenditures of approximately $425M
  • Interest expense of approximately $435M
  • Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023.
  • No pension income

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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