Conagra Brands: Reports Fourth Quarter 2024 Results

Chicago / IL. (cag) ConAgra Brands Inc. reported results for the fourth quarter and fiscal year 2024, which ended on May 26. All comparisons are against the prior-year period, unless otherwise noted. Highlights:

Fourth quarter 2024

• Reported net sales decreased 2.3 percent and organic net sales decreased 2.4 percent
• Reported operating margin was (19.1) percent; adjusted operating margin was 14.8 percent
• Reported diluted loss per share for the fourth quarter was USD 1.18, primarily as a result of certain non-cash goodwill and brand impairment charges, and adjusted earnings per share (EPS) was USD 0.61

Full year fiscal 2024

• Reported net sales decreased 1.8 percent; organic net sales decreased 2.1 percent
• Reported operating margin decreased 168 basis points to 7.1 percent; adjusted operating margin increased 34 basis points to 16.0 percent
• Reported diluted EPS for fiscal 2024 decreased 49.3 percent to USD 0.72, and adjusted EPS decreased 3.6 percent to USD 2.67

The Company is providing fiscal 2025 guidance to reflect

• Organic net sales of (1.5) percent to flat compared to fiscal 2024
• Adjusted operating margin between 15.6 percent and 15.8 percent
• Adjusted EPS between USD 2.60 and USD 2.65
• Free cash flow conversion of approximately 90 percent

The Board of Directors has authorized the annualized dividend rate of USD 1.40 per share.

Chief Executive’s Perspective

President and chief executive officer Sean Connolly: «Our investments in our brands continued to yield results, and again drove volume improvement in our Domestic Retail business. Progress was most notable in our key Frozen and Snacks domains, where we also saw market share gains. Additionally, our supply chain productivity initiatives enabled us to expand adjusted gross margins, and we continued to strengthen the balance sheet and reduce our net leverage ratio. Looking ahead, we expect a gradual waning of the challenging industry trends seen throughout fiscal year 2024, as consumers adapt and establish new reference prices. We will continue to invest wisely to support our brands and facilitate that process.» For additional information please read the Company’s PDF file below (216 KB):

20240713-CONAGRA-Q42024.