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Exhibit 99.1
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News Release For more information, please contact: MEDIA: Mike Cummins 312-549-5257 Michael.Cummins@conagra.com INVESTORS: Melissa Napier 312-549-5738 IR@conagra.com |
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F O R I M M E D I A T E R E L E A S E |
CONAGRA BRANDS REPORTS third QUARTER RESULTS
CHICAGO, April 5, 2023 — Today Conagra Brands, Inc. (NYSE: CAG) reported results for the third quarter of fiscal year 2023, which ended on February 26, 2023. All comparisons are against the prior-year fiscal period, unless otherwise noted.
Highlights
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● |
Third quarter net sales increased 5.9%; organic net sales increased 6.1% |
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● |
Operating margin increased 355 basis points in the quarter to 15.9%; adjusted operating margin increased 321 basis points to 16.9% |
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● |
Diluted earnings per share (EPS) for the third quarter increased 57.8% to $0.71, and adjusted EPS increased 31.0% to $0.76 |
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The company is updating its fiscal 2023 guidance to reflect: |
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○ |
Organic net sales growth of 7% to 7.5% compared to fiscal 2022 |
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○ |
Adjusted operating margin between 15.5% and 15.6% |
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○ |
Adjusted EPS between $2.70 and $2.75 representing growth of 14% to 17% compared to fiscal 2022 |
CEO Perspective
Sean Connolly, president and chief executive officer of Conagra Brands, commented, "We delivered another quarter of strong results reflecting the ongoing strength of our brands and successful execution of the Conagra Way playbook. Our top-line posted solid growth as we demonstrated strong pricing execution with modest elasticities. Additionally, our productivity and service level improvement allowed us to continue to make meaningful progress on our adjusted gross margin and adjusted operating margin recovery, despite more impactful supply chain disruptions than anticipated. In response to our continued business momentum and ongoing operating dynamics, we are raising our fiscal 2023 EPS guidance and narrowing our ranges for organic net sales growth and adjusted operating margin. We remain committed to executing on our strategic business priorities including generating value for our shareholders."
Total Company Third Quarter Results
In the quarter, net sales increased 5.9% to $3.1 billion. The increase in net sales primarily reflects:
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a 0.2% decrease from the unfavorable impact of foreign exchange; and |
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● |
The 6.1% increase in organic net sales was driven by a 15.1% improvement in price/mix, which was partially offset by a 9.0% decrease in volume. Price/mix was driven by the company’s inflation-driven pricing actions. The volume decrease was primarily driven by the elasticity impact from inflation-driven pricing actions and supply chain, including manufacturing disruptions.
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Gross profit increased 20.3% to $839 million in the quarter, and adjusted gross profit increased 23.9% to $869 million. Third quarter gross profit benefited from higher organic net sales and productivity, which more than offset the negative impacts of cost of goods sold inflation (including unfavorable commodity positions) and unfavorable operating leverage. Gross margin increased 325 basis points to 27.2% in the quarter, and adjusted gross margin increased 409 basis points to 28.1%.
Selling, general, and administrative expense (SG&A), which includes advertising and promotional expense (A&P), increased 3.2% to $349 million in the quarter and adjusted SG&A, which excludes A&P, increased 12.4% to $266 million driven by increased incentive compensation compared to the prior year quarter.
A&P for the quarter increased 23.9% to $81 million, driven primarily by increased investment in modern marketing, including social and digital platforms.
Net interest expense was $104 million in the quarter. Compared to the prior-year period, net interest expense increased 10.3% or $10 million, primarily due to a higher weighted average interest rate on outstanding debt.
The average diluted share count in the quarter was 479 million shares.
In the quarter, net income attributable to Conagra Brands increased 56.4% to $342 million, or $0.71 per diluted share. Adjusted net income attributable to Conagra Brands increased 31.3% to $366 million, or $0.76 per diluted share. The increase was driven primarily by the increase in gross profit.
Adjusted EBITDA, which includes equity method investment earnings and pension and postretirement non-service income, increased 21.1% to $669 million in the quarter, primarily driven by the increase in adjusted gross profit, slightly offset by lower pension income.
Grocery & Snacks Segment Third Quarter Results
Reported and organic net sales for the Grocery & Snacks segment increased 3.7% to $1.2 billion in the quarter.
In the quarter, price/mix increased 13.7% and volume decreased 10.0%. Price/mix was driven by favorability in inflation-driven pricing. The volume decrease was primarily driven by the elasticity impact from inflation-driven pricing actions and shortages from supply chain disruptions. In the quarter, the company gained share in snacking categories including meat snacks and microwave popcorn, and some staples categories including refried beans and Asian sauces and marinades.
Operating profit for the segment increased 10.8% to $256 million in the quarter. Adjusted operating profit increased 8.0% to $257 million as higher organic net sales and productivity more than offset the negative impacts of cost of goods sold inflation (including unfavorable commodity positions), continued elevated supply chain costs, and increased A&P and SG&A.
Refrigerated & Frozen Segment Third Quarter Results
Reported and organic net sales for the Refrigerated & Frozen segment increased 5.6% to $1.3 billion in the quarter.
In the quarter, price mix increased 15.4% and volume decreased 9.8%. Price/mix was driven by favorability in inflation-driven pricing. The volume decrease was primarily driven by the elasticity impact from inflation-driven pricing actions and shortages from supply chain disruptions. In the quarter, the company gained share in categories such as frozen sides, plant-based protein, and frozen breakfast sausage.
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Operating profit for the segment increased 66.9% to $264 million in the quarter. Adjusted operating profit increased 53.8% to $271 million as higher organic net sales and productivity more than offset the negative impacts of cost of goods sold inflation (including unfavorable commodity positions), unfavorable operating leverage, and increased A&P and SG&A.
International Segment Third Quarter Results
Net sales for the International segment increased 7.7% to $260 million in the quarter reflecting:
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a 1.8% decrease from the unfavorable impact of foreign exchange; and |
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On an organic net sales basis, price/mix increased 16.5% and volume decreased 7.0%. Price/mix was driven by inflation-driven pricing. The volume decrease was primarily a result of the elasticity impact from inflation-driven pricing actions.
Operating profit for the segment increased 24.3% to $37 million in the quarter. Adjusted operating profit increased 23.9% to $37 million as the benefits from higher organic net sales and productivity were more than offset by the negative impact of cost of goods sold inflation (including unfavorable commodity positions), unfavorable operating leverage and continued elevated supply chain costs.
Foodservice Segment Third Quarter Results
Reported and organic net sales for the Foodservice segment increased 17.3% to $275 million in the quarter.
In the quarter, price/mix increased 18.5% and volume decreased 1.2%. Price/mix was driven by inflation-driven pricing. The volume decline was primarily a result of the elasticity impact from inflation-driven pricing actions.
Operating profit for the segment increased 409.6% to $24 million and adjusted operating profit increased 69.7% to $25 million in the quarter as the benefits of higher organic net sales and productivity more than offset the impacts of cost of goods sold inflation (including unfavorable commodity positions) and unfavorable operating leverage.
Other Third Quarter Items
Corporate expenses increased 40.3% to $91 million in the quarter and adjusted corporate expense increased 14.3% to $68 million in the quarter driven by increased incentive compensation compared to the prior year quarter.
Pension and post-retirement non-service income was $6 million in the quarter compared to $16 million of income in the prior-year period.
In the quarter, equity method investment earnings were $51 million driven by continued favorable market conditions for the Ardent Mills joint venture, and the venture's effective management through recent volatility in the wheat markets.
In the quarter, the effective tax rate was 22.6% compared to 33.4% in the prior-year period. The adjusted effective tax rate was 22.8% compared to 24.4% in the prior-year period.
In the quarter, the company paid a dividend of $0.33 per share.
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Outlook
The company is raising its full year fiscal 2023 adjusted EPS outlook and narrowing its guidance ranges on organic net sales growth and adjusted operating margin in response to year-to-date trends.
The company's updated fiscal 2023 guidance is as follows:
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Organic net sales growth is expected to be 7% to 7.5% compared to fiscal 2022 |
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Adjusted operating margin is expected to be between 15.5% and 15.6% |
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Adjusted EPS is expected to be between $2.70 and $2.75, representing growth of 14% to 17% compared to fiscal 2022 |
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| ● | Net Leverage Ratio of approximately 3.65x |
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Capital expenditures of approximately $370M |
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Interest expense of approximately $410M |
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Adjusted effective tax rate of approximately 24% |
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Pension income of approximately $25M |
The inability to predict the amount and timing of the impacts of foreign exchange, acquisitions, divestitures, and other items impacting comparability makes a detailed reconciliation of forward-looking non-GAAP financial measures impracticable. Please see the end of this release for more information.
Items Affecting Comparability of EPS
The following are included in the $0.71 EPS for the third quarter of fiscal 2023 (EPS amounts are rounded and after tax). Please see the reconciliation schedules at the end of this release for additional details.
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Approximately $0.01 per diluted share of net expense due to fire related costs |
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Approximately $0.04 per diluted share of net expense related to corporate hedging derivative losses |
The following are included in the $0.45 EPS for the third quarter of fiscal 2022 (EPS amounts are rounded and after tax). Please see the reconciliation schedules at the end of this release for additional details.
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Approximately $0.02 per diluted share of net expense related to restructuring plans |
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| ● | Approximately $0.06 per diluted share of net expense related to impairment of businesses held for sale |
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Approximately $0.05 per diluted share of net expense related to unusual tax items |
Please note that certain prior year amounts have been reclassified to conform with current year presentation.
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Discussion of Results
Conagra Brands will host a webcast and conference call at 9:30 a.m. Eastern time today to discuss the results. The live audio webcast and presentation slides will be available on www.conagrabrands.com/investor-relations under Events & Presentations. The conference call may be accessed by dialing 1-877-883-0383 for participants in the U.S. and 1-412-902-6506 for all other participants and using passcode 2483233. Please dial in 10 to 15 minutes prior to the call start time. Following the company's remarks, the conference call will include a question-and-answer session with the investment community. A replay of the webcast will be available on www.conagrabrands.com/investor-relations under Events & Presentations until April 5, 2024.
About Conagra Brands
Conagra Brands, Inc. (NYSE: CAG), headquartered in Chicago, is one of North America's leading branded food companies. Guided by an entrepreneurial spirit, Conagra Brands combines a rich heritage of making great food with a sharpened focus on innovation. The company's portfolio is evolving to satisfy people's changing food preferences. Conagra's iconic brands, such as Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, Reddi-wip®, and Slim Jim®, as well as emerging brands, including Angie's® BOOMCHICKAPOP®, Duke's®, Earth Balance®, Gardein®, and Frontera®, offer choices for every occasion. For more information, visit www.conagrabrands.com.
Note on Forward-Looking Statements
This document contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Readers of this document should understand that these statements are not guarantees of performance or results. Many factors could affect our actual financial results and cause them to vary materially from the expectations contained in the forward-looking statements, including those set forth in this document. These risks, uncertainties, and factors include, among other things: the risk that the cost savings and any other synergies from the acquisition of Pinnacle Foods Inc. (the Pinnacle acquisition) may not be fully realized or may take longer to realize than expected; the risk that the Pinnacle acquisition may not be accretive within the expected timeframe or to the extent anticipated; the risks that the Pinnacle acquisition and related integration will create disruption to the company and its management and impede the achievement of business plans; risks related to our ability to achieve the intended benefits of other recent acquisitions and divestitures; risks associated with general economic and industry conditions; risks associated with our ability to successfully execute our long-term value creation strategies; risks related to our ability to deleverage on currently anticipated timelines, and to continue to access capital on acceptable terms or at all; risks related to our ability to execute operating and restructuring plans and achieve targeted operating efficiencies from cost-saving initiatives, and to benefit from trade optimization programs; risks related to the effectiveness of our hedging activities and ability to respond to volatility in commodities; risks related to the company's competitive environment and related market conditions; risks related to our ability to respond to changing consumer preferences and the success of our innovation and marketing investments; risks related to the ultimate impact of any product recalls and litigation, including litigation related to the lead-based paint and pigment matters, as well as any securities litigation, including securities class action lawsuits; risk associated with actions of governments and regulatory bodies that affect our businesses, including the ultimate impact of new or revised regulations or interpretations; risks related to the impact of the COVID-19 pandemic on our business, suppliers, consumers, customers and employees; risks related to our forecasts of consumer eat-at-home habits as the impacts of the COVID-19 pandemic abate; risks related to the availability and prices of supply chain resources, including raw materials, packaging, and transportation including any negative effects caused by changes in inflation rates, weather conditions, health pandemics or outbreaks of disease, actual or threatened hostilities or war, or other geopolitical uncertainty; disruptions or inefficiencies in our supply chain and/or operations, including from the COVID-19 pandemic; risks related to disruptions in the global economy caused by the ongoing conflict between Russia and Ukraine; risks associated with actions by our customers, including changes in distribution and purchasing terms; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; risks related to a material failure in or breach of our or our vendors’ information technology systems; the amount and timing of future dividends, which remain subject to Board approval and depend on market and other conditions; risks related to the company's ability to execute on its strategies or achieve expectations related to environmental, social, and governance matters, including as a result of evolving legal, regulatory, and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon
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markets, and other risks described in our reports filed from time to time with the Securities and Exchange Commission. We caution readers not to place undue reliance on any forward-looking statements included in this document, which speak only as of the date of this document. We undertake no responsibility to update these statements, except as required by law.
Note on Non-GAAP Financial Measures
This document includes certain non-GAAP financial measures, including adjusted EPS, organic net sales, adjusted gross profit, adjusted operating profit, adjusted SG&A, adjusted corporate expenses, adjusted gross margin, adjusted operating margin, adjusted effective tax rate, adjusted net income attributable to Conagra Brands, free cash flow, net debt, net leverage ratio, and adjusted EBITDA. Management considers GAAP financial measures as well as such non-GAAP financial information in its evaluation of the company’s financial statements and believes these non-GAAP financial measures provide useful supplemental information to assess the company’s operating performance and financial position. These measures should be viewed in addition to, and not in lieu of, the company’s diluted earnings per share, operating performance and financial measures as calculated in accordance with GAAP.
Organic net sales excludes, from reported net sales, the impacts of foreign exchange, divested businesses and acquisitions, as well as the impact of any 53rd week. All references to changes in volume and price/mix throughout this release are on an organic net sales basis.
References to adjusted items throughout this release refer to measures computed in accordance with GAAP less the impact of items impacting comparability. Items impacting comparability are income or expenses (and related tax impacts) that management believes have had, or are likely to have, a significant impact on the earnings of the applicable business segment or on the total corporation for the period in which the item is recognized, and are not indicative of the company’s core operating results. These items thus affect the comparability of underlying results from period to period.
References to earnings before interest, taxes, depreciation, and amortization (EBITDA) refer to net income attributable to Conagra Brands before the impacts of discontinued operations, income tax expense (benefit), interest expense, depreciation, and amortization. References to adjusted EBITDA refer to EBITDA before the impacts of items impacting comparability.
Hedge gains and losses are generally aggregated, and net amounts are reclassified from unallocated corporate expense to the operating segments when the underlying commodity or foreign currency being hedged is expensed in segment cost of goods sold. The net change in the derivative gains (losses) included in unallocated corporate expense during the period is reflected as a comparability item, Corporate hedging derivate gains (losses).
Note on Forward-Looking Non-GAAP Financial Measures
Our fiscal 2023 guidance includes certain non-GAAP financial measures (organic net sales growth, adjusted operating margin, adjusted EPS, net leverage ratio, and adjusted effective tax rate) that are presented on a forward-looking basis. Historically, the company has calculated these non-GAAP financial measures excluding the impact of certain items such as, but not limited to, foreign exchange, acquisitions, divestitures, restructuring expenses, the extinguishment of debt, hedging gains and losses, impairment charges, legacy legal contingencies, and unusual tax items. Reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not provided because the company is unable to provide such reconciliations without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the timing and financial impact of such items. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.
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Conagra Brands, Inc.
Consolidated Statements of Earnings
(in millions)
(unaudited)
|
THIRD QUARTER |
||||||||||||
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Thirteen Weeks Ended |
Thirteen Weeks Ended |
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February 26, 2023 |
February 27, 2022 |
Percent Change |
||||||||||
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Net sales |
$ | 3,086.5 | $ | 2,913.7 | 5.9 | % | ||||||
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Costs and expenses: |
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Cost of goods sold |
2,247.7 | 2,216.5 | 1.4 | % | ||||||||
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Selling, general and administrative expenses |
348.8 | 338.0 | 3.2 | % | ||||||||
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Pension and postretirement non-service income |
(6.0 | ) | (16.1 | ) | (62.2 | )% | ||||||
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Interest expense, net |
104.2 | 94.6 | 10.3 | % | ||||||||
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Income before income taxes and equity method investment earnings |
391.8 | 280.7 | 39.6 | % | ||||||||
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Income tax expense |
100.1 | 109.9 | (8.9 | )% | ||||||||
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Equity method investment earnings |
50.5 | 48.1 | 4.9 | % | ||||||||
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Net income |
$ | 342.2 | $ | 218.9 | 56.3 | % | ||||||
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Less: Net income attributable to noncontrolling interests |
0.5 | 0.5 | 8.4 | % | ||||||||
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Net income attributable to Conagra Brands, Inc. |
$ | 341.7 | $ | 218.4 | 56.4 | % | ||||||
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Earnings per share - basic |
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Net income attributable to Conagra Brands, Inc. |
$ | 0.72 | $ | 0.45 | 60.0 | % | ||||||
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Weighted average shares outstanding |
477.5 | 480.3 | (0.6 | )% | ||||||||
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Earnings per share - diluted |
||||||||||||
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Net income attributable to Conagra Brands, Inc. |
$ | 0.71 | $ | 0.45 | 57.8 | % | ||||||
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Weighted average share and share equivalents outstanding |
479.4 | 482.2 | (0.6 | )% | ||||||||
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Conagra Brands, Inc.
Consolidated Statements of Earnings
(in millions)
(unaudited)
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THIRD QUARTER YEAR TO DATE |
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Thirty-Nine Weeks Ended |
Thirty-Nine Weeks Ended |
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February 26, 2023 |
February 27, 2022 |
Percent Change |
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Net sales |
$ | 9,303.7 | $ | 8,625.9 | 7.9 | % | ||||||
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Costs and expenses: |
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Cost of goods sold |
6,822.3 | 6,500.5 | 5.0 | % | ||||||||
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Selling, general and administrative expenses |
1,463.1 | 993.5 | 47.3 | % | ||||||||
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Pension and postretirement non-service income |
(18.2 | ) | (48.3 | ) | (62.2 | )% | ||||||
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Interest expense, net |
301.6 | 283.7 | 6.3 | % | ||||||||
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Income before income taxes and equity method investment earnings |
734.9 | 896.5 | (18.0 | )% | ||||||||
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Income tax expense |
237.0 | 263.8 | (10.2 | )% | ||||||||
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Equity method investment earnings |
149.0 | 97.8 | 52.3 | % | ||||||||
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Net income |
$ | 646.9 | $ | 730.5 | (11.5 | )% | ||||||
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Less: Net income attributable to noncontrolling interests |
0.8 | 1.2 | (31.2 | )% | ||||||||
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Net income attributable to Conagra Brands, Inc. |
$ | 646.1 | $ | 729.3 | (11.4 | )% | ||||||
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Earnings per share - basic |
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Net income attributable to Conagra Brands, Inc. |
$ | 1.35 | $ | 1.52 | (11.2 | )% | ||||||
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Weighted average shares outstanding |
479.3 | 480.3 | (0.2 | )% | ||||||||
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Earnings per share - diluted |
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Net income attributable to Conagra Brands, Inc. |
$ | 1.34 | $ | 1.51 | (11.3 | )% | ||||||
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Weighted average share and share equivalents outstanding |
481.0 | 482.2 | (0.2 | )% | ||||||||
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Conagra Brands, Inc.
Consolidated Balance Sheets
(in millions)
(unaudited)
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February 26, 2023 |
May 29, 2022 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
$ | 71.2 | $ | 83.3 | ||||
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Receivables, less allowance for doubtful accounts of $3.7 and $3.9 |
960.0 | 867.4 | ||||||
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Inventories |
2,307.1 | 1,966.7 | ||||||
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Prepaid expenses and other current assets |
116.4 | 116.3 | ||||||
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Total current assets |
3,454.7 | 3,033.7 | ||||||
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Property, plant and equipment, net |
2,702.0 | 2,737.2 | ||||||
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Goodwill |
11,178.1 | 11,329.2 | ||||||
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Brands, trademarks and other intangibles, net |
3,564.5 | 3,857.8 | ||||||
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Other assets |
1,554.9 | 1,477.2 | ||||||
| $ | 22,454.2 | $ | 22,435.1 | |||||
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Notes payable |
$ | 658.0 | $ | 184.3 | ||||
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Current installments of long-term debt |
516.6 | 707.3 | ||||||
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Accounts payable |
1,563.9 | 1,864.6 | ||||||
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Accrued payroll |
159.0 | 151.7 | ||||||
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Other accrued liabilities |
663.5 | 610.9 | ||||||
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Total current liabilities |
3,561.0 | 3,518.8 | ||||||
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Senior long-term debt, excluding current installments |
8,081.2 | 8,088.2 | ||||||
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Other noncurrent liabilities |
1,873.7 | 1,965.9 | ||||||
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Total stockholders' equity |
8,938.3 | 8,862.2 | ||||||
| $ | 22,454.2 | $ | 22,435.1 | |||||
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Conagra Brands, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
|
Thirty-Nine Weeks Ended |
Thirty-Nine Weeks Ended |
|||||||
|
February 26, 2023 |
February 27, 2022 |
|||||||
|
Cash flows from operating activities: |
||||||||
|
Net income |
$ | 646.9 | $ | 730.5 | ||||
|
Adjustments to reconcile net income to net cash flows from operating activities: |
||||||||
|
Depreciation and amortization |
277.0 | 285.6 | ||||||
|
Asset impairment charges |
417.7 | 72.7 | ||||||
|
Equity method investment earnings in excess of distributions |
(69.8 | ) | (59.7 | ) | ||||
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Stock-settled share-based payments expense |
68.8 | 26.8 | ||||||
|
Contributions to pension plans |
(9.6 | ) | (8.6 | ) | ||||
|
Pension benefit |
(10.4 | ) | (38.5 | ) | ||||
|
Other items |
(1.1 | ) | (31.6 | ) | ||||
|
Change in operating assets and liabilities excluding effects of business acquisitions and dispositions: |
||||||||
|
Receivables |
(96.7 | ) | (120.7 | ) | ||||
|
Inventories |
(340.4 | ) | (57.0 | ) | ||||
|
Deferred income taxes and income taxes payable, net |
(58.8 | ) | 38.4 | |||||
|
Prepaid expenses and other current assets |
2.4 | (34.7 | ) | |||||
|
Accounts payable |
(157.9 | ) | (12.0 | ) | ||||
|
Accrued payroll |
7.4 | (32.4 | ) | |||||
|
Other accrued liabilities |
53.4 | 19.3 | ||||||
|
Deferred employer payroll taxes |
(25.5 | ) | (25.5 | ) | ||||
|
Net cash flows from operating activities |
703.4 | 752.6 | ||||||
|
Cash flows from investing activities: |
||||||||
|
Additions to property, plant and equipment |
(267.4 | ) | (364.2 | ) | ||||
|
Sale of property, plant and equipment |
3.1 | 18.0 | ||||||
|
Purchase of marketable securities |
(3.4 | ) | (2.5 | ) | ||||
|
Sale of marketable securities |
3.4 | 2.4 | ||||||
|
Proceeds from divestitures |
— | 0.1 | ||||||
|
Other items |
4.1 | 3.3 | ||||||
|
Net cash flows from investing activities |
(260.2 | ) | (342.9 | ) | ||||
|
Cash flows from financing activities: |
||||||||
|
Issuances of short-term borrowings, maturities greater than 90 days |
239.5 | 392.6 | ||||||
|
Repayment of short-term borrowings, maturities greater than 90 days |
(259.8 | ) | (392.6 | ) | ||||
|
Net issuance (repayment) of other short-term borrowings, maturities less than or equal to 90 days |
388.2 | (344.6 | ) | |||||
|
Issuance of long-term debt |
500.0 | 499.1 | ||||||
|
Repayment of long-term debt |
(708.0 | ) | (43.1 | ) | ||||
|
Debt issuance costs |
(4.1 | ) | (2.5 | ) | ||||
|
Repurchase of Conagra Brands, Inc. common shares |
(150.0 | ) | (50.0 | ) | ||||
|
Payment of intangible asset financing arrangement |
— | (12.6 | ) | |||||
|
Cash dividends paid |
(466.4 | ) | (431.9 | ) | ||||
|
Exercise of stock options and issuance of other stock awards, including tax withholdings |
0.9 | (14.1 | ) | |||||
|
Other items |
5.2 | (7.3 | ) | |||||
|
Net cash flows from financing activities |
(454.5 | ) | (407.0 | ) | ||||
|
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
(0.8 | ) | (3.2 | ) | ||||
|
Net change in cash and cash equivalents and restricted cash |
(12.1 | ) | (0.5 | ) | ||||
|
Cash and cash equivalents and restricted cash at beginning of period |
83.3 | 80.2 | ||||||
|
Cash and cash equivalents and restricted cash at end of period |
$ | 71.2 | $ | 79.7 | ||||
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Conagra Brands, Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
(in millions)
|
Q3 FY23 |
Grocery & Snacks |
Refrigerated & Frozen |
International |
Foodservice |
Total Conagra Brands |
|||||||||||||||
|
Net Sales |
$ | 1,243.7 | $ | 1,307.7 | $ | 259.7 | $ | 275.4 | $ | 3,086.5 | ||||||||||
|
Impact of foreign exchange |
— | — | 4.3 | — | 4.3 | |||||||||||||||
|
Organic Net Sales |
$ | 1,243.7 | $ | 1,307.7 | $ | 264.0 | $ | 275.4 | $ | 3,090.8 | ||||||||||
|
Year-over-year change - Net Sales |
3.7 | % | 5.6 | % | 7.7 | % | 17.3 | % | 5.9 | % | ||||||||||
|
Impact of foreign exchange (pp) |
— | — | 1.8 | — | 0.2 | |||||||||||||||
|
Organic Net Sales |
3.7 | % | 5.6 | % | 9.5 | % | 17.3 | % | 6.1 | % | ||||||||||
|
Volume (Organic) |
(10.0 | )% | (9.8 | )% | (7.0 | )% | (1.2 | )% | (9.0 | )% | ||||||||||
|
Price/Mix |
13.7 | % | 15.4 | % | 16.5 | % | 18.5 | % | 15.1 | % | ||||||||||
|
Q3 FY22 |
Grocery & Snacks |
Refrigerated & Frozen |
International |
Foodservice |
Total Conagra Brands |
|||||||||||||||
|
Net Sales |
$ | 1,199.0 | $ | 1,238.6 | $ | 241.2 | $ | 234.9 | $ | 2,913.7 | ||||||||||
|
Net sales from divested businesses |
— | — | — | — | — | |||||||||||||||
|
Organic Net Sales |
$ | 1,199.0 | $ | 1,238.6 | $ | 241.2 | $ | 234.9 | $ | 2,913.7 | ||||||||||
|
Q3 FY23 YTD |
Grocery & Snacks |
Refrigerated & Frozen |
International |
Foodservice |
Total Conagra Brands |
|||||||||||||||
|
Net Sales |
$ | 3,781.9 | $ | 3,936.8 | $ | 751.9 | $ | 833.1 | $ | 9,303.7 | ||||||||||
|
Impact of foreign exchange |
— | — | 18.7 | — | 18.7 | |||||||||||||||
|
Organic Net Sales |
$ | 3,781.9 | $ | 3,936.8 | $ | 770.6 | $ | 833.1 | $ | 9,322.4 | ||||||||||
|
Year-over-year change - Net Sales |
6.9 | % | 8.6 | % | 1.6 | % | 15.6 | % | 7.9 | % | ||||||||||
|
Impact of foreign exchange (pp) |
— | — | 2.5 | — | 0.2 | |||||||||||||||
|
Organic Net Sales |
6.9 | % | 8.6 | % | 4.1 | % | 15.6 | % | 8.1 | % | ||||||||||
|
Volume (Organic) |
(9.4 | )% | (6.0 | )% | (8.4 | )% | (3.0 | )% | (7.4 | )% | ||||||||||
|
Price/Mix |
16.3 | % | 14.6 | % | 12.5 | % | 18.6 | % | 15.5 | % | ||||||||||
|
Q3 FY22 YTD |
Grocery & Snacks |
Refrigerated & Frozen |
International |
Foodservice |
Total Conagra Brands |
|||||||||||||||
|
Net Sales |
$ | 3,538.6 | $ | 3,626.3 | $ | 740.0 | $ | 721.0 | $ | 8,625.9 | ||||||||||
|
Net sales from divested businesses |
— | — | — | — | — | |||||||||||||||
|
Organic Net Sales |
$ | 3,538.6 | $ | 3,626.3 | $ | 740.0 | $ | 721.0 | $ | 8,625.9 | ||||||||||
Page 12
Conagra Brands, Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
(in millions)
|
Q3 FY23 |
Grocery & Snacks |
Refrigerated & Frozen |
International |
Foodservice |
Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
|
Operating Profit |
$ | 256.4 | $ | 263.6 | $ | 37.1 | $ | 23.8 | $ | (90.9 | ) | $ | 490.0 | |||||||||||
|
Restructuring plans |
0.3 | 1.9 | 0.1 | — | 0.2 | 2.5 | ||||||||||||||||||
|
Acquisitions and divestitures |
— | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
|
Fire related costs |
— | 5.2 | — | 1.4 | — | 6.6 | ||||||||||||||||||
|
Municipal water break costs |
0.3 | — | — | — | — | 0.3 | ||||||||||||||||||
|
Corporate hedging derivative losses (gains) |
— | — | — | — | 22.7 | 22.7 | ||||||||||||||||||
|
Adjusted Operating Profit |
$ | 257.0 | $ | 270.7 | $ | 37.2 | $ | 25.2 | $ | (67.8 | ) | $ | 522.3 | |||||||||||
|
Operating Profit Margin |
20.6 | % | 20.2 | % | 14.3 | % | 8.6 | % | 15.9 | % | ||||||||||||||
|
Adjusted Operating Profit Margin |
20.7 | % | 20.7 | % | 14.3 | % | 9.1 | % | 16.9 | % | ||||||||||||||
|
Year-over-year % change - Operating Profit |
10.8 | % | 66.9 | % | 24.3 | % | 409.6 | % | 40.3 | % | 36.4 | % | ||||||||||||
|
Year-over year % change - Adjusted Operating Profit |
8.0 | % | 53.8 | % | 23.9 | % | 69.7 | % | 14.3 | % | 30.8 | % | ||||||||||||
|
Year-over-year bps change - Operating Profit |
132 bps | 740 bps | 191 bps | 665 bps | 355 bps | |||||||||||||||||||
|
Year-over-year bps change - Adjusted Operating Profit |
82 bps | 650 bps | 188 bps | 282 bps | 321 bps | |||||||||||||||||||
|
Q3 FY22 |
Grocery & Snacks |
Refrigerated & Frozen |
International |
Foodservice |
Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
|
Operating Profit |
$ | 231.5 | $ | 158.0 | $ | 29.9 | $ | 4.7 | $ | (64.9 | ) | $ | 359.2 | |||||||||||
|
Restructuring plans |
2.6 | 1.2 | 0.2 | — | 6.7 | 10.7 | ||||||||||||||||||
|
Impairment of businesses held for sale |
3.9 | 16.9 | — | 10.1 | — | 30.9 | ||||||||||||||||||
|
Acquisitions and divestitures |
— | — | — | — | 0.6 | 0.6 | ||||||||||||||||||
|
Corporate hedging derivative losses (gains) |
— | — | — | — | (1.9 | ) | (1.9 | ) | ||||||||||||||||
|
Adjusted Operating Profit |
$ | 238.0 | $ | 176.1 | $ | 30.1 | $ | 14.8 | $ | (59.5 | ) | $ | 399.5 | |||||||||||
|
Operating Profit Margin |
19.3 | % | 12.8 | % | 12.4 | % | 2.0 | % | 12.3 | % | ||||||||||||||
|
Adjusted Operating Profit Margin |
19.9 | % | 14.2 | % | 12.5 | % | 6.3 | % | 13.7 | % | ||||||||||||||
Page 13
Conagra Brands, Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
(in millions)
|
Q3 FY23 YTD |
Grocery & Snacks |
Refrigerated & Frozen |
International |
Foodservice |
Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
|
Operating Profit |
$ | 847.2 | $ | 297.6 | $ | 100.9 | $ | 53.5 | $ | (280.9 | ) | $ | 1,018.3 | |||||||||||
|
Restructuring plans |
0.5 | 3.3 | (0.1 | ) | — | 5.5 | 9.2 | |||||||||||||||||
|
Impairment of businesses held for sale |
0.5 | 5.7 | — | 20.5 | — | 26.7 | ||||||||||||||||||
| Goodwill and brand impairment charges | — | 385.7 | — | — | — | 385.7 | ||||||||||||||||||
|
Acquisitions and divestitures |
— | — | — | — | 0.8 | 0.8 | ||||||||||||||||||
|
Fire related costs |
— | 13.1 | — | 1.4 | — | 14.5 | ||||||||||||||||||
|
Municipal water break costs |
3.5 | — | — | — | — | 3.5 | ||||||||||||||||||
|
Corporate hedging derivative losses (gains) |
— | — | — | — | 24.6 | 24.6 | ||||||||||||||||||
|
Adjusted Operating Profit |
$ | 851.7 | $ | 705.4 | $ | 100.8 | $ | 75.4 | $ | (250.0 | ) | $ | 1,483.3 | |||||||||||
|
Operating Profit Margin |
22.4 | % | 7.6 | % | 13.4 | % | 6.4 | % | 10.9 | % | ||||||||||||||
|
Adjusted Operating Profit Margin |
22.5 | % | 17.9 | % | 13.4 | % | 9.1 | % | 15.9 | % | ||||||||||||||
|
Year-over-year % change - Operating Profit |
21.6 | % | (38.5 | )% | (0.2 | )% | 37.9 | % | 49.0 | % | (10.0 | )% | ||||||||||||
|
Year-over year % change - Adjusted Operating Profit |
16.4 | % | 33.7 | % | (0.5 | )% | 39.6 | % | 29.8 | % | 21.4 | % | ||||||||||||
|
Year-over-year bps change - Operating Profit |
272 bps | (579) bps | (24) bps | 104 bps | (218) bps | |||||||||||||||||||
|
Year-over-year bps change - Adjusted Operating Profit |
185 bps | 337 bps | (28) bps | 156 bps | 178 bps | |||||||||||||||||||
|
Q3 FY22 YTD |
Grocery & Snacks |
Refrigerated & Frozen |
International |
Foodservice |
Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
|
Operating Profit |
$ | 696.6 | $ | 483.9 | $ | 101.1 | $ | 38.8 | $ | (188.5 | ) | $ | 1,131.9 | |||||||||||
|
Restructuring plans |
8.7 | 13.0 | 0.2 | 0.3 | 16.7 | 38.9 | ||||||||||||||||||
|
Impairment of businesses held for sale |
26.3 | 28.9 | — | 14.9 | — | 70.1 | ||||||||||||||||||
|
Acquisitions and divestitures |
— | — | — | — | 2.2 | 2.2 | ||||||||||||||||||
|
Proceeds received from the sale of a legacy investment |
— | — | — | — | (3.3 | ) | (3.3 | ) | ||||||||||||||||
|
Legal matters |
— | — | — | — | (14.6 | ) | (14.6 | ) | ||||||||||||||||
|
Consulting fees on tax matters |
— | 1.7 | — | — | — | 1.7 | ||||||||||||||||||
|
Corporate hedging derivative losses (gains) |
— | — | — | — | (5.3 | ) | (5.3 | ) | ||||||||||||||||
|
Adjusted Operating Profit |
$ | 731.6 | $ | 527.5 | $ | 101.3 | $ | 54.0 | $ | (192.8 | ) | $ | 1,221.6 | |||||||||||
|
Operating Profit Margin |
19.7 | % | 13.3 | % | 13.7 | % | 5.4 | % | 13.1 | % | ||||||||||||||
|
Adjusted Operating Profit Margin |
20.7 | % | 14.5 | % | 13.7 | % | 7.5 | % | 14.2 | % | ||||||||||||||
Page 14
Conagra Brands, Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
(in millions)
|
Q3 FY23 |
Gross profit |
Selling, general and administrative expenses |
Operating profit 1 |
Income before income taxes and equity method investment earnings |
Income tax expense |
Income tax rate |
Net income attributable to Conagra Brands, Inc. |
Diluted EPS from income attributable to Conagra Brands, Inc common stockholders |
||||||||||||||||||||||||
|
Reported |
$ | 838.8 | $ | 348.8 | $ | 490.0 | $ | 391.9 | $ | 100.1 | 22.6 | % | $ | 341.7 | $ | 0.71 | ||||||||||||||||
|
% of Net Sales |
27.2 | % | 11.3 | % | 15.9 | % | ||||||||||||||||||||||||||
|
Restructuring plans |
0.5 | 2.0 | 2.5 | 2.5 | 0.6 | 1.9 | — | |||||||||||||||||||||||||
|
Acquisitions and divestitures |
— | 0.2 | 0.2 | 0.2 | 0.1 | 0.1 | — | |||||||||||||||||||||||||
|
Corporate hedging derivative losses (gains) |
22.7 | — | 22.7 | 22.7 | 5.6 | 17.1 | 0.04 | |||||||||||||||||||||||||
|
Advertising and promotion expenses 2 |
— | 80.5 | — | — | — | — | — | |||||||||||||||||||||||||
|
Fire related costs |
6.4 | 0.2 | 6.6 | 6.6 | 1.7 | 4.9 | 0.01 | |||||||||||||||||||||||||
|
Municipal water break costs |
0.3 | — | 0.3 | 0.3 | — | 0.3 | — | |||||||||||||||||||||||||
|
Adjusted |
$ | 868.7 | $ | 265.9 | $ | 522.3 | $ | 424.2 | $ | 108.1 | 22.8 | % | $ | 366.0 | $ | 0.76 | ||||||||||||||||
|
% of Net Sales |
28.1 | % | 8.6 | % | 16.9 | % | ||||||||||||||||||||||||||
|
Year-over-year % of net sales change - reported |
325 bps | (30) bps | 355 bps | |||||||||||||||||||||||||||||
|
Year-over-year % of net sales change - adjusted |
409 bps | 50 bps | 321 bps | |||||||||||||||||||||||||||||
|
Year-over-year change - reported |
20.3 | % | 3.2 | % | 36.4 | % | 39.6 | % | (8.9 | )% | 56.4 | % | 57.8 | % | ||||||||||||||||||
|
Year-over-year change - adjusted |
23.9 | % | 12.4 | % | 30.8 | % | 32.1 | % | 20.1 | % | 31.3 | % | 31.0 | % | ||||||||||||||||||
|
Q3 FY22 |
Gross profit |
Selling, general and administrative expenses |
Operating profit 1 |
Income before income taxes and equity method investment earnings |
Income tax expense |
Income tax rate |
Net income attributable to Conagra Brands, Inc. |
Diluted EPS from income attributable to Conagra Brands, Inc common stockholders |
||||||||||||||||||||||||
|
Reported |
$ | 697.2 | $ | 338.0 | $ | 359.2 | $ | 280.7 | $ | 109.9 | 33.4 | % | $ | 218.4 | $ | 0.45 | ||||||||||||||||
|
% of Net Sales |
23.9 | % | 11.6 | % | 12.3 | % | ||||||||||||||||||||||||||
|
Restructuring plans |
5.6 | 5.1 | 10.7 | 10.7 | 2.5 | 8.2 | 0.02 | |||||||||||||||||||||||||
|
Acquisitions and divestitures |
— | 0.6 | 0.6 | 0.6 | 0.2 | 0.4 | — | |||||||||||||||||||||||||
|
Corporate hedging derivative losses (gains) |
(1.9 | ) | — | (1.9 | ) | (1.9 | ) | (0.4 | ) | (1.5 | ) | — | ||||||||||||||||||||
|
Advertising and promotion expenses 2 |
— | 64.9 | — | — | — | — | — | |||||||||||||||||||||||||
|
Impairment of businesses held for sale |
— | 30.9 | 30.9 | 30.9 | 2.7 | 28.2 | 0.06 | |||||||||||||||||||||||||
|
Unusual tax items |
— | — | — | — | (25.0 | ) | 25.0 | 0.05 | ||||||||||||||||||||||||
|
Adjusted |
$ | 700.9 | $ | 236.5 | $ | 399.5 | $ | 321.0 | $ | 89.9 | 24.4 | % | $ | 278.7 | $ | 0.58 | ||||||||||||||||
|
% of Net Sales |
24.1 | % | 8.1 | % | 13.7 | % | ||||||||||||||||||||||||||
1 Operating profit is derived from taking Income from continuing operations before income taxes and equity method investment earnings, adding back Interest expense, net and removing Pension and postretirement non-service income.
2 Advertising and promotion expense (A&P) has been removed from adjusted selling, general and administrative expense because this metric is used in reporting to management, and management believes this adjusted measure provides useful supplemental information to assess the company’s operating performance. Please note that A&P is not removed from adjusted profit measures.
Page 15
Conagra Brands, Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
(in millions)
|
Q3 FY23 YTD |
Gross profit |
Selling, general and administrative expenses |
Operating profit 1 |
Income before income taxes and equity method investment earnings |
Income tax expense |
Income tax rate |
Net income attributable to Conagra Brands, Inc. |
Diluted EPS from income attributable to Conagra Brands, Inc common stockholders |
||||||||||||||||||||||||
|
Reported |
$ | 2,481.4 | $ | 1,463.1 | $ | 1,018.3 | $ | 734.9 | $ | 237.0 | 26.8 | % | $ | 646.1 | $ | 1.34 | ||||||||||||||||
|
% of Net Sales |
26.7 | % | 15.7 | % | 10.9 | % | ||||||||||||||||||||||||||
|
Restructuring plans |
0.8 | 8.4 | 9.2 | 9.2 | 2.3 | 6.9 | 0.01 | |||||||||||||||||||||||||
|
Acquisitions and divestitures |
— | 0.8 | 0.8 | 0.8 | 0.2 | 0.6 | — | |||||||||||||||||||||||||
|
Corporate hedging derivative losses (gains) |
24.6 | — | 24.6 | 24.6 | 6.1 | 18.5 | 0.04 | |||||||||||||||||||||||||
|
Advertising and promotion expenses 2 |
— | 221.2 | — | — | — | — | — | |||||||||||||||||||||||||
|
Fire related costs |
13.8 | 0.7 | 14.5 | 14.5 | 3.6 | 10.9 | 0.02 | |||||||||||||||||||||||||
|
Municipal water break costs |
3.5 | — | 3.5 | 3.5 | 0.8 | 2.7 | 0.01 | |||||||||||||||||||||||||
|
Impairment of businesses held for sale |
— | 26.7 | 26.7 | 26.7 | 6.6 | 20.1 | 0.04 | |||||||||||||||||||||||||
|
Goodwill and brand impairment charges |
— | 385.7 | 385.7 | 385.7 | 58.9 | 326.8 | 0.68 | |||||||||||||||||||||||||
|
Rounding |
— | — | — | — | — | — | 0.01 | |||||||||||||||||||||||||
|
Adjusted |
$ | 2,524.1 | $ | 819.6 | $ | 1,483.3 | $ | 1,199.9 | $ | 315.5 | 23.4 | % | $ | 1,032.6 | $ | 2.15 | ||||||||||||||||
|
% of Net Sales |
27.1 | % | 8.8 | % | 15.9 | % | ||||||||||||||||||||||||||
|
Year-over-year % of net sales change - reported |
203 bps |
421 bps |
(218) bps |
|||||||||||||||||||||||||||||
|
Year-over-year % of net sales change - adjusted |
230 bps |
44 bps |
178 bps |
|||||||||||||||||||||||||||||
|
Year-over-year change - reported |
16.8 | % | 47.3 | % | (10.0 | )% | (18.0 | )% | (10.2 | )% | (11.4 | )% | (11.3 | )% | ||||||||||||||||||
|
Year-over-year change - adjusted |
17.8 | % | 13.5 | % | 21.4 | % | 21.7 | % | 22.6 | % | 25.1 | % | 25.7 | % | ||||||||||||||||||
|
Q3 FY22 YTD |
Gross profit |
Selling, general and administrative expenses |
Operating profit 1 |
Income before income taxes and equity method investment earnings |
Income tax expense |
Income tax rate |
Net income attributable to Conagra Brands, Inc. |
Diluted EPS from income attributable to Conagra Brands, Inc common stockholders |
||||||||||||||||||||||||
|
Reported |
$ | 2,125.4 | $ | 993.5 | $ | 1,131.9 | $ | 896.5 | $ | 263.8 | 26.5 | % | $ | 729.3 | $ | 1.51 | ||||||||||||||||
|
% of Net Sales |
24.6 | % | 11.5 | % | 13.1 | % | ||||||||||||||||||||||||||
|
Restructuring plans |
21.9 | 17.0 | 38.9 | 38.9 | 9.5 | 29.4 | 0.06 | |||||||||||||||||||||||||
|
Acquisitions and divestitures |
— | 2.2 | 2.2 | 2.2 | 0.6 | 1.6 | — | |||||||||||||||||||||||||
|
Corporate hedging derivative losses (gains) |
(5.3 | ) | — | (5.3 | ) | (5.3 | ) | (1.3 | ) | (4.0 | ) | (0.01 | ) | |||||||||||||||||||
|
Advertising and promotion expenses 2 |
— | 198.5 | — | — | — | — | — | |||||||||||||||||||||||||
|
Consulting fees on tax matters |
— | 1.7 | 1.7 | 1.7 | 0.5 | 1.2 | — | |||||||||||||||||||||||||
|
Impairment of businesses held for sale |
— | 70.1 | 70.1 | 70.1 | 9.7 | 60.4 | 0.13 | |||||||||||||||||||||||||
|
Proceeds received from the sale of a legacy investment |
— | (3.3 | ) | (3.3 | ) | (3.3 | ) | (0.5 | ) | (2.8 | ) | (0.01 | ) | |||||||||||||||||||
|
Legal matters |
— | (14.6 | ) | (14.6 | ) | (14.6 | ) | (3.6 | ) | (11.0 | ) | (0.02 | ) | |||||||||||||||||||
|
Unusual tax items |
— | — | — | — | (21.4 | ) | 21.4 | 0.04 | ||||||||||||||||||||||||
|
Rounding |
— | — | — | — | — | — | 0.01 | |||||||||||||||||||||||||
|
Adjusted |
$ | 2,142.0 | $ | 721.9 | $ | 1,221.6 | $ | 986.2 | $ | 257.3 | 23.7 | % | $ | 825.5 | $ | 1.71 | ||||||||||||||||
|
% of Net Sales |
24.8 | % | 8.4 | % | 14.2 | % | ||||||||||||||||||||||||||
1 Operating profit is derived from taking Income from continuing operations before income taxes and equity method investment earnings, adding back Interest expense, net and removing Pension and postretirement non-service income.
2 Advertising and promotion expense (A&P) has been removed from adjusted selling, general and administrative expense because this metric is used in reporting to management, and management believes this adjusted measure provides useful supplemental information to assess the company’s operating performance. Please note that A&P is not removed from adjusted profit measures.
Page 16
Conagra Brands, Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
(in millions)
|
February 26, 2023 |
February 27, 2022 |
% Change |
||||||||||
|
Net cash flows from operating activities |
$ | 703.4 | $ | 752.6 | (6.5 | )% | ||||||
|
Additions to property, plant and equipment |
(267.4 | ) | (364.2 | ) | (26.6 | )% | ||||||
|
Free cash flow |
$ | 436.0 | $ | 388.4 | 12.3 | % | ||||||
|
Q3 FY23 |
Q3 FY22 |
|||||||
|
Notes payable |
$ | 658.0 | $ | 362.8 | ||||
|
Current installments of long-term debt |
516.6 | 706.3 | ||||||
|
Senior long-term debt, excluding current installments |
8,081.2 | 8,089.1 | ||||||
|
Total Debt |
$ | 9,255.8 | $ | 9,158.2 | ||||
|
Less: Cash |
71.2 | 79.7 | ||||||
|
Net Debt |
$ | 9,184.6 | $ | 9,078.5 | ||||
|
Q3 FY23 LTM2 |
||||
|
Net Debt |
$ | 9,184.6 | ||
|
Net income attributable to Conagra Brands, Inc. |
$ | 805.0 | ||
|
Add Back: Income tax expense |
263.7 | |||
|
Income tax expense attributable to noncontrolling interests |
0.1 | |||
|
Interest expense, net |
397.8 | |||
|
Depreciation |
308.7 | |||
|
Amortization |
58.1 | |||
|
Earnings before interest, taxes, depreciation, and amortization (EBITDA) |
$ | 1,833.4 | ||
|
Restructuring plans 1 |
18.3 | |||
|
Acquisitions and divestitures |
1.0 | |||
|
Consulting fees on tax matters |
1.1 | |||
|
Corporate hedging derivative gains |
25.5 | |||
|
Impairment of businesses held for sale |
26.7 | |||
|
Goodwill and brand impairment charges |
592.7 | |||
|
Legal matters |
(5.0 | ) | ||
|
Environmental matters |
(6.5 | ) | ||
|
Fire related costs |
25.8 | |||
|
Municipal water break costs |
3.5 | |||
|
Adjusted EBITDA |
$ | 2,516.5 | ||
|
Net Debt to Adjusted EBITDA |
3.65 | |||
1 Excludes comparability items related to depreciation.
2 Last twelve months
Page 17
Conagra Brands, Inc.
Reconciliation of Non-GAAP Financial Measures to Reported Financial Measures
(in millions)
|
Q3 FY23 |
Q3 FY22 |
% Change |
||||||||||
|
Net income attributable to Conagra Brands, Inc. |
$ | 341.7 | $ | 218.4 | 56.4 | % | ||||||
|
Add Back: Income tax expense |
100.1 | 109.9 | ||||||||||
|
Income tax expense attributable to noncontrolling interests |
(0.2 | ) | (0.2 | ) | ||||||||
|
Interest expense, net |
104.2 | 94.6 | ||||||||||
|
Depreciation |
77.7 | 77.3 | ||||||||||
|
Amortization |
13.8 | 14.8 | ||||||||||
|
Earnings before interest, taxes, depreciation, and amortization |
$ | 637.3 | $ | 514.8 | 23.8 | % | ||||||
|
Restructuring plans 1 |
2.1 | 8.1 | ||||||||||
|
Acquisitions and divestitures |
0.2 | 0.6 | ||||||||||
|
Corporate hedging derivative losses (gains) |
22.7 | (1.9 | ) | |||||||||
|
Fire related costs |
6.6 | — | ||||||||||
|
Municipal water break costs |
0.3 | — | ||||||||||
|
Impairment of businesses held for sale |
— | 30.9 | ||||||||||
|
Adjusted Earnings before interest, taxes, depreciation, and amortization |
$ | 669.2 | $ | 552.5 | 21.1 | % | ||||||
|
Q3 FY23 YTD |
Q3 FY22 YTD |
% Change |
||||||||||
|
Net income attributable to Conagra Brands, Inc. |
$ | 646.1 | $ | 729.3 | (11.4 | )% | ||||||
|
Add Back: Income tax expense |
237.0 | 263.8 | ||||||||||
|
Income tax expense attributable to noncontrolling interests |
(0.3 | ) | (0.4 | ) | ||||||||
|
Interest expense, net |
301.6 | 283.7 | ||||||||||
|
Depreciation |
233.7 | 241.1 | ||||||||||
|
Amortization |
43.3 | 44.5 | ||||||||||
|
Earnings before interest, taxes, depreciation, and amortization |
$ | 1,461.4 | $ | 1,562.0 | (6.4 | )% | ||||||
|
Restructuring plans 1 |
8.8 | 25.3 | ||||||||||
|
Acquisitions and divestitures |
0.8 | 2.2 | ||||||||||
|
Corporate hedging derivative losses (gains) |
24.6 | (5.3 | ) | |||||||||
|
Fire related costs |
14.5 | — | ||||||||||
|
Municipal water break costs |
3.5 | — | ||||||||||
|
Consulting fees on tax matters |
— | 1.7 | ||||||||||
|
Impairment of businesses held for sale |
26.7 | 70.1 | ||||||||||
|
Proceeds from the sale of a legacy investment |
— | (3.3 | ) | |||||||||
|
Legal matters |
— | (14.6 | ) | |||||||||
|
Goodwill and brand impairment charges |
385.7 | — | ||||||||||
|
Adjusted Earnings before interest, taxes, depreciation, and amortization |
$ | 1,926.0 | $ | 1,638.1 | 17.6 | % | ||||||
1 Excludes comparability items related to depreciation.
