Loading...
•
May 26, 2024
ConAgra Q4 2024 Earnings Report
Conagra's Q4 results were impacted by non-cash goodwill and brand impairment charges, while investments in brands drove volume improvement in Domestic Retail business, particularly in Frozen and Snacks domains.
Key Takeaways
Conagra Brands reported a decrease in net sales by 2.3% to $2.9 billion, with a reported diluted loss per share of $1.18 due to significant non-cash impairment charges. Adjusted EPS was $0.61. The company's investments in key Frozen and Snacks domains drove volume improvements and market share gains. Supply chain productivity initiatives expanded adjusted gross margins, and the company continued to strengthen its balance sheet and reduce net leverage.
Net sales decreased by 2.3%, while organic net sales decreased by 2.4%.
Reported operating margin was (19.1)%, while adjusted operating margin stood at 14.8%.
Reported diluted loss per share was $1.18, primarily due to non-cash goodwill and brand impairment charges; adjusted EPS was $0.61.
Investments in brands drove volume improvement in the Domestic Retail business, especially in Frozen and Snacks.
ConAgra
ConAgra
ConAgra Revenue by Segment
ConAgra Revenue by Geographic Location
Revenue by Segment
Grocery & Snacks Revenue
CapyFin.comRefrigerated & Frozen Revenue
CapyFin.comInternational Revenue
CapyFin.comFoodservice Revenue
CapyFin.comRevenue by Geographic Location
Total Revenue
CapyFin.com Forward Guidance
Conagra provided fiscal year 2025 guidance, anticipating organic net sales to range from -1.5% to flat compared to fiscal year 2024. Adjusted operating margin is projected to be between 15.6% and 15.8%, with adjusted EPS expected to be between $2.60 and $2.65. The company anticipates a free cash flow conversion rate of approximately 90%.
Positive Outlook
- Organic net sales of (1.5)% to flat compared to fiscal 2024
- Adjusted operating margin between 15.6% and 15.8%
- Adjusted EPS between $2.60 and $2.65
- Free cash flow conversion of approximately 90%
- Net Leverage Ratio of approximately 3.2x
Challenges Ahead
- Cost of goods sold inflation to continue into fiscal 2025
- Net inflation (input cost inflation including the impacts of hedging and other sourcing benefits) to be roughly 3%
- Capital expenditures of approximately $500M
- Interest expense of approximately $415M
- Adjusted effective tax rate of approximately 23.5%
Revenue & Expenses
Visualization of income flow from segment revenue to net income