CHICAGO, June 30, 2020 /PRNewswire/ -- Today Conagra
Brands, Inc. (NYSE: CAG) reported results for the fourth quarter
and full fiscal year 2020, which ended on May 31, 2020. All comparisons are against the
prior-year fiscal period, unless otherwise noted. Certain
terms used in this release, including "Organic net sales,"
"EBITDA," "Free cash flow," "Legacy Conagra," and certain
"adjusted" results, are defined under the section entitled
"Definitions." See page 6 for more information.
Highlights
- Fourth quarter net sales increased 25.8%; organic net sales
increased 21.5%, with double-digit growth in each of the Company's
three retail segments; this growth was supported by strong
e-commerce growth, significant consumer trial and solid repeat
sales, and the initial launches of its fiscal 2021 innovation
slate.
- Fiscal 2020 net sales increased 15.9%, and organic net sales
increased 5.6%.
- Diluted earnings per share from continuing operations (EPS) for
the fourth quarter grew 57.7% to $0.41, and adjusted EPS more than doubled to
$0.75.
- EPS for fiscal 2020 grew 12.4% to $1.72, and adjusted EPS grew 13.4% to
$2.28.
- The Company exceeded its free cash flow guidance and reduced
its leverage ratio to 4.0x as of the end of the fiscal year; the
Company continued progressing against its deleveraging commitments
in the fourth quarter by reducing total debt by $271 million and net debt by $725 million.
- The Company is providing guidance for first quarter fiscal 2021
of organic net sales growth in the range of 10% to 13%, adjusted
operating margin in the range of 17.0% to 17.5%, and adjusted EPS
in the range of $0.54 to $0.59.
- The Company remains on-track to deliver its fiscal 2022
algorithm and remains committed to achieving its leverage target of
3.5x to 3.6x by the end of fiscal 2021.
CEO Perspective
Sean
Connolly, president and chief executive officer of Conagra
Brands, commented, "I am very pleased with how our Company has
responded to the COVID-19 pandemic. The team's dedication to
supporting our customers, consumers, employees, and communities
during the fourth quarter is a true reflection of the Conagra Way
in action. We have effectively responded to elevated demand,
continued to make good progress on improving the overall business,
kept our synergy capture on-track, and begun to launch our fiscal
2021 innovation slate. Not only did we invest to support
demand during the quarter, we did it while significantly reducing
our leverage."
He continued, "Our business clearly benefited from increased
at-home eating in the fourth quarter, as the elevated retail demand
outweighed the reduced foodservice demand. In retail, many
consumers tried our modernized products for the first time and then
returned for more. While we are optimistic about the long-term
implications of recent consumer behavior shifts, given COVID-19
uncertainties, we are only providing guidance for the first quarter
of fiscal 2021. We intend to provide an update on our fiscal 2021
outlook next quarter."
Total Company Fourth Quarter Results
In the quarter,
net sales increased 25.8% to $3.3
billion. The growth in reported net sales primarily
reflects:
- a 3.1% net decrease from the divestitures of the Direct Store
Delivery (DSD) snacks business, the Gelit business, the Lender's
Bagel business, and the Wesson oil business, and the exit of the
private label peanut butter business (collectively, the "Sold
Businesses");
- a 0.7% net decrease due to foreign exchange;
- an 8.1% net increase due to the impact of the 53rd
week; and
- a 21.5% net increase in organic net sales.
The 21.5% increase in organic net sales was driven by a 21.0%
increase in volume and a favorable price/mix impact of
0.5%. The significant volume increase was primarily driven by
consumers increasing their at-home food consumption as a result of
the COVID-19 pandemic, which benefitted the Company's retail
businesses and negatively impacted the Foodservice segment.
Price/mix was also favorable as both pricing and sales mix were
favorable compared to the prior-year period.
Gross profit increased 30.3% to $923
million in the quarter, and adjusted gross profit increased
31.1% to $929 million. The
increases were primarily driven by the increased sales
volume. Additionally, supply chain realized productivity, the
impact of the 53rd week, favorable price/mix, and cost
synergies associated with the Pinnacle Foods acquisition were
partially offset by higher input costs as well as pandemic-related
costs. Pandemic-related costs included investments in employee
safety protocols, bonuses paid to supply chain employees, and costs
necessary to meet elevated levels of demand. Gross margin increased
97 basis points to 28.1% in the quarter, and adjusted gross margin
increased 113 basis points to 28.3%, as margin improvements in the
Grocery & Snacks and Refrigerated & Frozen segments were
partially offset by a margin decline the Foodservice segment.
Selling, general, and administrative expenses (SG&A), which
include advertising and promotional expense (A&P), increased
34.8% to $532 million in the
quarter. Adjusted SG&A, which excludes A&P, increased
5.7% to $308 million, primarily as a
result of incremental incentive compensation versus the fourth
quarter of the prior year, and the impact of the 53rd
week. These increased expenses were partially offset by cost
synergies associated with the Pinnacle Foods acquisition as well as
temporarily reduced spending as employees worked from home and
business travel was eliminated. A&P for the quarter
decreased 20.0% to $59 million as the
Company chose to reduce demand-driving A&P investments due to
the already-elevated retail demand.
Net interest expense was $125
million in the quarter. Compared to the prior-year
period, net interest expense decreased $6
million, driven by lower levels of debt outstanding.
The Company's 489 million average diluted shares outstanding was
an increase of approximately 2 million shares versus the prior-year
period.
In the quarter, net income attributable to Conagra Brands
increased 59.2% to $201 million, or
$0.41 per diluted
share. Adjusted net income attributable to Conagra Brands
increased 110.6% to $368 million, or
$0.75 per diluted share, in the
quarter. The increases in net income attributable to Conagra
Brands and adjusted net income were driven primarily by the
increase in sales volume and associated profit. Net income
attributable to Conagra Brands was also impacted by $112 million of post-tax expense related to
intangible impairment charges related to several retail brands. The
increase in adjusted EPS in the quarter was primarily driven by the
increase in adjusted net income, slightly offset by higher average
diluted shares outstanding.
Adjusted EBITDA, which includes equity method investment
earnings and pension and postretirement non-service income,
increased 50.5% to $690 million in
the quarter.
Total Company Fiscal 2020 Results
For the full fiscal
year, net sales increased 15.9% to $11.1
billion. Reported net sales growth reflects:
- an 8.3% net increase from the acquisition of Pinnacle Foods and
the divestitures and exit of the Sold Businesses;
- a 0.2% net decrease due to foreign exchange;
- a 2.2% net increase due to the impact of the 53rd
week; and
- a 5.6% net increase in organic net sales.
For the full fiscal year, gross profit increased 15.7% to
$3.07 billion. Adjusted gross profit
increased 14.3% to $3.11 billion
primarily driven by the inclusion of Pinnacle's gross profit,
organic net sales growth, supply chain realized productivity, cost
synergies associated with the Pinnacle Foods acquisition, and the
inclusion of the 53rd week. These benefits were
partially offset by higher input costs, a reduction in profit
associated with the Sold Businesses, pandemic-related costs, and
the impact of foreign exchange.
For the full fiscal year, EPS increased 12.4% to $1.72, and adjusted EPS grew 13.4% to
$2.28. An increase in adjusted
operating profit in Legacy Conagra, the inclusion of Pinnacle's
operating profit, and cost synergies associated with the Pinnacle
Foods acquisition more than offset the impacts of higher interest
expense, an increase in the number of shares outstanding, and the
impact of the Sold Businesses.
For the full fiscal year, the Company generated $1.84 billion in net cash flows from operating
activities (continuing operations) and $1.47
billion of free cash flow, both of which were above
expectations. The Company benefitted from a $162 million increase in net income, a
$234 million increase in accounts
payable primarily related to inventory purchases in the fourth
quarter, a $164 million reduction in
inventories primarily associated with pandemic-related demand in
the fourth quarter, and the delay of $47
million of certain federal cash tax payments related to the
payment deadline being extended into the first quarter of fiscal
2021.
Grocery & Snacks Segment Fourth Quarter
Results
Net sales for the Grocery & Snacks segment
increased 44.1% to $1.5 billion in
the quarter reflecting:
- a 5.3% decrease from the impact of the Sold Businesses;
- a 9.0% increase due to the impact of the 53rd week;
and
- a 40.4% increase in organic net sales.
On an organic net sales basis, volume increased 38.0% and
price/mix increased 2.4%. Volume increased across multiple
categories as consumers increased their at-home food consumption in
connection with the pandemic. The favorable price/mix was
primarily attributable to favorable mix. Several grocery and
snack brands experienced significant double-digit organic sales
growth rate in the quarter, including Chef Boyardee, Hunt's,
Libby's, Armour, Duncan Hines,
Orville Redenbacher's, Snack Pack,
and Slim Jim.
Operating profit for the segment increased 115.4% to
$300 million in the
quarter. Adjusted operating profit increased 91.2% to
$353 million, primarily driven by
organic net sales growth, the impact of the 53rd week, cost
synergies associated with the Pinnacle Foods acquisition, and
supply chain realized productivity. These benefits were
partially offset by input cost inflation, and the lost profit from
the Sold Businesses.
Refrigerated & Frozen Segment Fourth Quarter
Results
Net sales for the Refrigerated & Frozen
segment increased 23.3% to $1.4
billion in the quarter reflecting:
- a 2.6% decrease from the impact of the Sold Businesses;
- an 8.3% increase due to the impact of the 53rd week;
and
- a 17.6% increase in organic net sales.
On an organic net sales basis, volume increased 17.8% and
price/mix decreased 0.2%. Volume increased across multiple
categories as consumers increased their at-home food consumption in
connection with the pandemic. As a result, many brands,
including Birds Eye, Marie
Callender's, Banquet, Healthy Choice, P.F. Chang's Home
Menu, Odom's Tennessee Pride, and Reddi-wip experienced
considerable organic volume and net sales growth in the
quarter. The slight price/mix decline was primarily
attributable to unfavorable sales mix.
Operating profit for the segment decreased 17.2% to $169 million in the quarter. Adjusted operating
profit increased 45.7% to $267
million as the benefits of higher organic net sales, the
impact of the 53rd week, supply chain realized productivity, and
cost synergies associated with the Pinnacle Foods acquisition more
than offset higher input costs and lost profit from the Sold
Businesses.
International Segment Fourth Quarter Results
Net sales
for the International segment increased 18.6% to $266 million in the quarter reflecting:
- a 7.2% increase due to the impact of the 53rd
week;
- an 8.4% decrease from the unfavorable impact of foreign
exchange; and
- a 19.8% increase in organic net sales.
On an organic net sales basis, volume increased 18.0% and
price/mix increased 1.8%. During the quarter, the segment benefited
from elevated demand related to the impacts of the pandemic. The
Company's Canadian, Mexican, and export businesses saw significant
volume increases, which were partially offset by lower volumes in
India due to the country-wide
closure of manufacturing plants and stores during the quarter. The
increase in price/mix was primarily attributable to favorable
mix.
Operating profit for the segment increased 168.5% to
$27 million in the
quarter. Adjusted operating profit increased 47.2% to
$36 million as the increase in
organic net sales, the impact of the 53rd week, supply chain
realized productivity, and cost synergies associated with the
Pinnacle Foods acquisition were partially offset by higher input
costs and the impact of foreign exchange.
Foodservice Segment Fourth Quarter Results
Net sales
for the Foodservice segment decreased 27.9% to $193 million in the quarter reflecting:
- a 1.3% decrease from the impact of the Sold Businesses;
- a 4.9% increase due to the impact of the 53rd week;
and
- a 31.5% decrease in organic net sales.
On an organic net sales basis, volume decreased 34.2% primarily
driven by lower restaurant traffic as a result of the
pandemic. Price/mix was favorable 2.7% in the quarter
primarily driven by increased pricing to offset higher input
costs.
Operating profit for the segment decreased 97.1% to $1 million in the quarter, as lower organic net
sales, higher inventory write-offs, and higher input costs more
than offset the impacts of supply chain realized productivity, cost
synergies associated with the Pinnacle Foods acquisition, and the
53rd week.
Other Fourth Quarter Items
Corporate expenses
increased 40.8% to $106 million and
adjusted corporate expenses increased 12.6% to $94 million in the quarter, driven primarily by
incremental incentive compensation and the impact of the
53rd week.
Pension and post-retirement non-service expense was $27 million in the quarter compared to
$5 million of income in the
prior-year period. The Company expenses actuarial gains and
losses in excess of the 10% corridor annually at the pension
measurement date. This practice resulted in a $45 million non-cash year-end pension expense for
fiscal 2020, driven by a reduction of the discount rate used to
remeasure the pension obligations to present value and a reduction
in asset values for certain plan assets. Adjusted pension and
post-retirement non-service income increased $8 million to $18
million.
In the quarter, equity method investment earnings more than
doubled to $23 million on a reported
and adjusted basis. The increase was primarily related to
increased retail demand more than offsetting reduced foodservice
demand in the Ardent Mills joint venture.
In the quarter, the effective tax rate was 22.9%, and the
adjusted effective tax rate was 23.0%.
In the quarter, the Company paid a dividend of $0.2125 per share.
The Company remains on-schedule with its de-leveraging targets
and remains committed to a solid investment grade credit
rating. Since the closing of the Pinnacle acquisition through
the end of the fourth quarter, Conagra Brands has reduced total
gross debt by more than $1.8 billion,
resulting in a net debt to last twelve month adjusted EBITDA ratio
(Leverage Ratio) of 4.0x at of the end of fiscal 2020.
Outlook
The impact that the COVID-19 pandemic will
have on the Company's fiscal 2021 consolidated results remains
uncertain. The Company does expect retail and foodservice
demand levels to trend toward historical norms as the fiscal year
progresses. However, the degree and timing of changes in
retail and foodservice demand levels are difficult to predict with
enough certainty to provide a full-year outlook at this time.
To-date in the first quarter, the Company has continued to see a
significant increase in demand in its retail business. The
Company has also continued to see reduced demand for its
foodservice products when compared to pre-COVID-19 pandemic demand
levels. COVID-19 related costs have also continued to impact
the business. Based on these factors, the Company is providing
first quarter fiscal 2021 guidance of:
- Organic net sales growth of 10% to 13%
- Adjusted operating margin of 17.0% to 17.5%
- Adjusted EPS of $0.54 to
$0.59
The Company's first quarter guidance continues to assume that
the end-to-end supply chain operates effectively during this period
of heightened demand.
The Company remains confident in its ability to achieve its
leverage ratio target of 3.5x to 3.6x by the end of fiscal
2021.
Additionally, the Company is reaffirming its fiscal 2022
algorithm of:
- Organic net sales growth (3-year CAGR ending fiscal 2022) of 1%
to 2%
- Adjusted operating margin of 18% to 19%
- Adjusted EPS of $2.66 to
$2.76
- Free cash flow conversion (percentage of adjusted net income
3-year average) of 95%+
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 $0.41 diluted EPS
from continuing operations for the fourth quarter of fiscal 2020
(EPS amounts rounded and after tax). Please see the
reconciliation schedules at the end of this release for additional
details.
- Approximately $0.03 per diluted
share of net expense related to restructuring plans
- Approximately $0.01 per diluted
share of net benefit related to corporate hedging derivative
gains
- Approximately $0.07 per diluted
share of net expense related to a pension valuation adjustment
-
- The Company expenses actuarial gains and losses in excess of
the 10% corridor annually at the pension measurement
date. This resulted in a large non-cash year-end pension
expense for fiscal 2020, driven by a reduction of the discount rate
used to remeasure the pension obligations to present value and a
reduction in asset values for certain plan assets.
- Approximately $0.23 per diluted
share of net expense related to intangible impairment charges
primarily related to the Frontera,
Gardein, Glutino, Hungry Man, and Udi's brands
- Approximately $0.01 per diluted
share of net expense related to legal matters
- Approximately $0.01 per diluted
share of net expense due to rounding
The following are included in the $0.26 diluted EPS from continuing operations for
the fourth quarter of fiscal 2019 (EPS amounts rounded and after
tax). Please see the reconciliation schedules at the end of
this release for additional details.
- Approximately $0.05 per diluted
share of net expense related to restructuring plans
- Approximately $0.14 per diluted
share of net expense related to intangible impairment charges
primarily related to the Chef Boyardee brand
- Approximately $0.06 per diluted
share of net benefit related to legal matters
- Approximately $0.01 per diluted
share of net expense related to the fair value adjustment of cash
settleable equity awards issued in connection with the Pinnacle
acquisition
- Approximately $0.05 per diluted
share of net gain related to the gain on divested businesses
- Approximately $0.01 per diluted
share of net expense related to a pension valuation adjustment
- Approximately $0.02 per diluted
share of net benefit from tax items primarily related to the
capital loss valuation allowance adjustment
- Approximately $0.02 per diluted
share of net expense from tax items primarily related to legal
entity restructuring and other unusual tax items
Definitions
Organic net sales excludes, from reported
net sales, the impacts of foreign exchange, divested businesses and
acquisitions, including the Pinnacle acquisition (until the
anniversary date of the 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.
Free cash flow is defined as net cash flow from operating
activities from continuing operations less additions to property,
plant, and equipment.
References to Legacy Conagra exclude any income or expenses
associated with the recently acquired Pinnacle business.
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 3825326. 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 June 30,
2021.
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®, Marie Callender's®,
Banquet®, Healthy Choice®, Slim Jim®, Reddi-wip®, and Vlasic®, 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; the
risk that the Pinnacle acquisition will negatively impact the
ability to retain and hire key personnel and maintain relationships
with customers, suppliers, and other third parties; risks related
to our ability to successfully address Pinnacle's business
challenges; 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, including those in place for specific
brands at Pinnacle before the Pinnacle acquisition; 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, related to the Pinnacle acquisition and otherwise, and
to benefit from trade optimization programs, related to the
Pinnacle acquisition and otherwise; 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 its innovation and marketing investments; risks
related to the ultimate impact of any product recalls and
litigation, including litigation related to the lead 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 recent
coronavirus (COVID-19) outbreak on our business, suppliers,
consumers, customers and employees; risks related to the
availability and prices of raw materials, including any negative
effects caused by inflation, weather conditions or health
pandemics; disruptions or inefficiencies in our supply chain and/or
operations, including from the recent COVID-19 outbreak; risks and
uncertainties associated with intangible assets, including any
future goodwill or intangible assets impairment charges, related to
the Pinnacle acquisition or otherwise; the costs, disruption, and
diversion of management's attention due to the integration of the
Pinnacle acquisition; and other risks described in our reports
filed from time to time with the Securities and Exchange Commission
(the "SEC"). We caution readers not to place undue reliance on any
forward-looking statements included in this report, which speak
only as of the date of this report. 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, adjusted pension and post-retirement
non-service income, adjusted net interest expense, free cash flow,
net debt, adjusted equity method investment earnings, 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 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.
Certain of these non-GAAP measures, such as organic net sales,
adjusted operating margin, adjusted effective tax rate, adjusted
net interest expense, adjusted EPS, net debt, and free cash flow,
are forward-looking. Historically, the Company has excluded
the impact of certain items impacting comparability, such as, but
not limited to, restructuring expenses, the impact of the
extinguishment of debt, the impact of foreign exchange, the impact
of acquisitions and divestitures, hedging gains and losses,
impairment charges, the impact of legacy legal contingencies, and
the impact of unusual tax items, from the non-GAAP financial
measures it presents. 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
occurrence and the financial impact of such items impacting
comparability and the periods in which such items may be
recognized. For the same reasons, the Company is unable to
address the probable significance of the unavailable information,
which could be material to future results.
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 Company identifies these amounts as items that impact
comparability within the discussion of unallocated Corporate
results.
For more information, please contact:
MEDIA:
Mike Cummins
312-549-5257
Michael.Cummins@conagra.com
INVESTORS: Brian Kearney
312-549-5002
IR@conagra.com
Conagra Brands,
Inc.
|
Consolidated
Statements of Earnings
|
(in
millions)
|
(unaudited)
|
|
|
|
FOURTH
QUARTER
|
|
|
|
Fourteen weeks
ended
|
|
|
Thirteen weeks
ended
|
|
|
|
|
|
|
|
May 31,
2020
|
|
|
May 26,
2019
|
|
|
Percent Change
|
|
Net sales
|
|
$
|
3,287.9
|
|
|
$
|
2,613.2
|
|
|
|
25.8
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
2,365.1
|
|
|
|
1,905.2
|
|
|
|
24.1
|
%
|
Selling, general and
administrative expenses
|
|
|
532.0
|
|
|
|
394.7
|
|
|
|
34.8
|
%
|
Pension and
postretirement non-service expense (income)
|
|
|
27.3
|
|
|
|
(5.4)
|
|
|
N/A
|
|
Interest expense,
net
|
|
|
125.3
|
|
|
|
130.9
|
|
|
|
(4.3)
|
%
|
Income before income
taxes and equity method investment earnings
|
|
|
238.2
|
|
|
|
187.8
|
|
|
|
26.8
|
%
|
Income tax
expense
|
|
|
59.8
|
|
|
|
71.8
|
|
|
|
(16.7)
|
%
|
Equity method
investment earnings
|
|
|
22.9
|
|
|
|
9.2
|
|
|
|
148.8
|
%
|
Net income
|
|
$
|
201.3
|
|
|
$
|
125.2
|
|
|
|
60.8
|
%
|
Less: Net loss
attributable to noncontrolling interests
|
|
|
(0.1)
|
|
|
|
(1.3)
|
|
|
|
(88.6)
|
%
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
201.4
|
|
|
$
|
126.5
|
|
|
|
59.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
0.41
|
|
|
$
|
0.26
|
|
|
|
57.7
|
%
|
Weighted average
shares outstanding
|
|
|
487.6
|
|
|
|
486.4
|
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
0.41
|
|
|
$
|
0.26
|
|
|
|
57.7
|
%
|
Weighted average
share and share equivalents outstanding
|
|
|
489.2
|
|
|
|
487.4
|
|
|
|
0.4
|
%
|
Conagra Brands,
Inc.
|
Consolidated
Statements of Earnings
|
(in
millions)
|
(unaudited)
|
|
|
|
FOURTH QUARTER YEAR
TO DATE
|
|
|
|
Fifty-three weeks
ended
|
|
|
Fifty-two weeks
ended
|
|
|
|
|
|
|
|
May 31,
2020
|
|
|
May 26,
2019
|
|
|
Percent Change
|
|
Net sales
|
|
$
|
11,054.4
|
|
|
$
|
9,538.4
|
|
|
|
15.9
|
%
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
|
7,984.8
|
|
|
|
6,885.4
|
|
|
|
16.0
|
%
|
Selling, general and
administrative expenses
|
|
|
1,622.5
|
|
|
|
1,473.4
|
|
|
|
10.1
|
%
|
Pension and
postretirement non-service income
|
|
|
(9.9)
|
|
|
|
(35.1)
|
|
|
|
(71.9)
|
%
|
Interest expense,
net
|
|
|
487.1
|
|
|
|
391.4
|
|
|
|
24.5
|
%
|
Income from
continuing operations before income taxes and equity method
investment earnings
|
|
|
969.9
|
|
|
|
823.3
|
|
|
|
17.8
|
%
|
Income tax
expense
|
|
|
201.3
|
|
|
|
218.8
|
|
|
|
(8.0)
|
%
|
Equity method
investment earnings
|
|
|
73.2
|
|
|
|
75.8
|
|
|
|
(3.4)
|
%
|
Income from
continuing operations
|
|
|
841.8
|
|
|
|
680.3
|
|
|
|
23.8
|
%
|
Loss from
discontinued operations, net of tax
|
|
|
—
|
|
|
|
(1.9)
|
|
|
|
100.0
|
%
|
Net income
|
|
$
|
841.8
|
|
|
$
|
678.4
|
|
|
|
24.1
|
%
|
Less: Net income
attributable to noncontrolling interests
|
|
|
1.7
|
|
|
|
0.1
|
|
|
|
2155.3
|
%
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
840.1
|
|
|
$
|
678.3
|
|
|
|
23.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
1.72
|
|
|
$
|
1.53
|
|
|
|
12.4
|
%
|
Income from
discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
|
0.0
|
%
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
1.72
|
|
|
$
|
1.53
|
|
|
|
12.4
|
%
|
Weighted average
shares outstanding
|
|
|
487.3
|
|
|
|
444.0
|
|
|
|
9.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
|
1.72
|
|
|
$
|
1.53
|
|
|
|
12.4
|
%
|
Loss from
discontinued operations
|
|
|
—
|
|
|
|
(0.01)
|
|
|
|
100.0
|
%
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
1.72
|
|
|
$
|
1.52
|
|
|
|
13.2
|
%
|
Weighted average
share and share equivalents outstanding
|
|
|
488.6
|
|
|
|
445.6
|
|
|
|
9.6
|
%
|
Conagra Brands,
Inc.
|
Consolidated Balance
Sheets
|
(in
millions)
|
(unaudited)
|
|
|
|
May 31,
2020
|
|
|
May 26,
2019
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
553.3
|
|
|
$
|
236.6
|
|
Receivables, less
allowance for doubtful accounts of $2.6 and $2.2
|
|
|
860.8
|
|
|
|
818.2
|
|
Inventories
|
|
|
1,377.9
|
|
|
|
1,548.9
|
|
Prepaid expenses and
other current assets
|
|
|
93.9
|
|
|
|
93.4
|
|
Current assets held
for sale
|
|
|
—
|
|
|
|
36.7
|
|
Total current
assets
|
|
|
2,885.9
|
|
|
|
2,733.8
|
|
Property, plant and
equipment, net
|
|
|
2,389.6
|
|
|
|
2,327.4
|
|
Goodwill
|
|
|
11,436.3
|
|
|
|
11,435.4
|
|
Brands, trademarks
and other intangibles, net
|
|
|
4,315.7
|
|
|
|
4,539.3
|
|
Other
assets
|
|
|
1,273.4
|
|
|
|
915.5
|
|
Noncurrent assets
held for sale
|
|
|
3.1
|
|
|
|
262.4
|
|
|
|
$
|
22,304.0
|
|
|
$
|
22,213.8
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Notes
payable
|
|
$
|
1.1
|
|
|
$
|
1.0
|
|
Current installments
of long-term debt
|
|
|
845.5
|
|
|
|
20.6
|
|
Accounts
payable
|
|
|
1,525.6
|
|
|
|
1,252.1
|
|
Accrued
payroll
|
|
|
189.4
|
|
|
|
173.2
|
|
Other accrued
liabilities
|
|
|
725.8
|
|
|
|
690.6
|
|
Current liabilities
held for sale
|
|
|
—
|
|
|
|
5.1
|
|
Total current
liabilities
|
|
|
3,287.4
|
|
|
|
2,142.6
|
|
Senior long-term
debt, excluding current installments
|
|
|
8,900.8
|
|
|
|
10,459.8
|
|
Subordinated
debt
|
|
|
—
|
|
|
|
195.9
|
|
Other noncurrent
liabilities
|
|
|
2,165.1
|
|
|
|
1,951.8
|
|
Total stockholders'
equity
|
|
|
7,950.7
|
|
|
|
7,463.7
|
|
|
|
$
|
22,304.0
|
|
|
$
|
22,213.8
|
|
Conagra Brands,
Inc.
|
Consolidated
Statements of Cash Flows
|
(in
millions)
|
(unaudited)
|
|
|
|
For the Fiscal
Years Ended May
|
|
|
|
2020
|
|
|
2019
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
841.8
|
|
|
$
|
678.4
|
|
Loss from
discontinued operations
|
|
|
—
|
|
|
|
(1.9)
|
|
Income from
continuing operations
|
|
|
841.8
|
|
|
|
680.3
|
|
Adjustments to
reconcile income from continuing operations to net cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
388.9
|
|
|
|
333.0
|
|
Asset impairment
charges
|
|
|
259.9
|
|
|
|
93.8
|
|
Loss (gain) on
divestitures
|
|
|
2.2
|
|
|
|
(69.4)
|
|
Loss on extinguishment
of debt
|
|
|
1.0
|
|
|
|
5.5
|
|
Significant litigation
accruals
|
|
|
—
|
|
|
|
(39.3)
|
|
Proceeds from the
settlement of interest rate swaps
|
|
|
—
|
|
|
|
47.5
|
|
Novation of a legacy
guarantee
|
|
|
—
|
|
|
|
(27.3)
|
|
Earnings of affiliates
in excess of distributions
|
|
|
(21.8)
|
|
|
|
(20.8)
|
|
Stock-settled
share-based payments expense
|
|
|
59.2
|
|
|
|
33.7
|
|
Contributions to
pension plans
|
|
|
(17.5)
|
|
|
|
(14.7)
|
|
Pension expense
(benefit)
|
|
|
5.9
|
|
|
|
(22.7)
|
|
Other items
|
|
|
10.3
|
|
|
|
12.3
|
|
Change in operating
assets and liabilities excluding effects of business acquisitions
and dispositions:
|
|
|
|
|
|
|
|
|
Receivables
|
|
|
(43.8)
|
|
|
|
(69.1)
|
|
Inventories
|
|
|
163.5
|
|
|
|
78.0
|
|
Deferred income taxes
and income taxes payable, net
|
|
|
23.1
|
|
|
|
83.7
|
|
Prepaid expenses and
other current assets
|
|
|
(13.6)
|
|
|
|
(19.1)
|
|
Accounts
payable
|
|
|
234.4
|
|
|
|
38.2
|
|
Accrued
payroll
|
|
|
15.9
|
|
|
|
0.1
|
|
Other accrued
liabilities
|
|
|
(66.8)
|
|
|
|
(9.4)
|
|
Net cash flows from
operating activities - continuing operations
|
|
|
1,842.6
|
|
|
|
1,114.3
|
|
Net cash flows from
operating activities - discontinued operations
|
|
|
—
|
|
|
|
11.2
|
|
Net cash flows from
operating activities
|
|
|
1,842.6
|
|
|
|
1,125.5
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(369.5)
|
|
|
|
(353.1)
|
|
Sale of property,
plant and equipment
|
|
|
14.0
|
|
|
|
22.5
|
|
Purchase of business,
net of cash acquired
|
|
|
—
|
|
|
|
(5,119.2)
|
|
Proceeds from
divestitures, net of cash divested
|
|
|
194.6
|
|
|
|
281.5
|
|
Purchase of marketable
securities
|
|
|
(46.8)
|
|
|
|
(61.0)
|
|
Sales of marketable
securities
|
|
|
53.8
|
|
|
|
52.2
|
|
Other items
|
|
|
0.1
|
|
|
|
11.1
|
|
Net cash flows from
investing activities
|
|
|
(153.8)
|
|
|
|
(5,166.0)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Net short-term
borrowings (repayments)
|
|
|
0.1
|
|
|
|
(277.3)
|
|
Issuance of long-term
debt
|
|
|
—
|
|
|
|
8,310.5
|
|
Repayment of long-term
debt
|
|
|
(947.5)
|
|
|
|
(3,972.7)
|
|
Debt issuance costs
and bridge financing fees
|
|
|
—
|
|
|
|
(95.2)
|
|
Payment of intangible
asset financing arrangement
|
|
|
(13.6)
|
|
|
|
(14.0)
|
|
Issuance of Conagra
Brands, Inc. common shares, net
|
|
|
—
|
|
|
|
555.7
|
|
Cash dividends
paid
|
|
|
(413.6)
|
|
|
|
(356.2)
|
|
Exercise of stock
options and issuance of other stock awards, including tax
withholdings
|
|
|
4.8
|
|
|
|
(1.6)
|
|
Other items
|
|
|
(0.6)
|
|
|
|
0.6
|
|
Net cash flows from
financing activities
|
|
|
(1,370.4)
|
|
|
|
4,149.8
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
|
|
(1.7)
|
|
|
|
(0.7)
|
|
Net change in cash
and cash equivalents and restricted cash
|
|
|
316.7
|
|
|
|
108.6
|
|
Cash and cash
equivalents and restricted cash at beginning of year
|
|
|
237.6
|
|
|
|
129.0
|
|
Cash and cash
equivalents and restricted cash at end of year
|
|
$
|
554.3
|
|
|
$
|
237.6
|
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
Q4
FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated & Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,474.1
|
|
|
$
|
1,355.4
|
|
|
$
|
265.7
|
|
|
$
|
192.7
|
|
|
$
|
3,287.9
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
18.8
|
|
|
|
—
|
|
|
|
18.8
|
|
Impact of 53rd week
2
|
|
|
(91.6)
|
|
|
|
(91.0)
|
|
|
|
(16.1)
|
|
|
|
(13.1)
|
|
|
|
(211.8)
|
|
Net sales from
divested businesses 1
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.3)
|
|
Organic Net
Sales
|
|
$
|
1,382.2
|
|
|
$
|
1,264.4
|
|
|
$
|
268.4
|
|
|
$
|
179.6
|
|
|
$
|
3,094.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
44.1
|
%
|
|
|
23.3
|
%
|
|
|
18.6
|
%
|
|
|
(27.9)
|
%
|
|
|
25.8
|
%
|
Impact of
foreign exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
8.4
|
|
|
|
—
|
|
|
|
0.7
|
|
Impact of 53rd week
(pp)
|
|
|
(9.0)
|
|
|
|
(8.3)
|
|
|
|
(7.2)
|
|
|
|
(4.9)
|
|
|
|
(8.1)
|
|
Net sales from
divested businesses (pp) 3
|
|
|
5.3
|
|
|
|
2.6
|
|
|
|
—
|
|
|
|
1.3
|
|
|
|
3.1
|
|
Organic Net
Sales
|
|
|
40.4
|
%
|
|
|
17.6
|
%
|
|
|
19.8
|
%
|
|
|
(31.5)
|
%
|
|
|
21.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
38.0
|
%
|
|
|
17.8
|
%
|
|
|
18.0
|
%
|
|
|
(34.2)
|
%
|
|
|
21.0
|
%
|
Price/Mix
|
|
|
2.4
|
%
|
|
|
(0.2)
|
%
|
|
|
1.8
|
%
|
|
|
2.7
|
%
|
|
|
0.5
|
%
|
Q4
FY19
|
|
Grocery &
Snacks
|
|
|
Refrigerated & Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
1,022.6
|
|
|
$
|
1,099.2
|
|
|
$
|
224.0
|
|
|
$
|
267.4
|
|
|
$
|
2,613.2
|
|
Net sales from
divested businesses 1
|
|
|
(37.9)
|
|
|
|
(23.4)
|
|
|
|
—
|
|
|
|
(5.1)
|
|
|
|
(66.4)
|
|
Organic Net
Sales
|
|
$
|
984.7
|
|
|
$
|
1,075.8
|
|
|
$
|
224.0
|
|
|
$
|
262.3
|
|
|
$
|
2,546.8
|
|
|
FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated & Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
4,617.1
|
|
|
$
|
4,559.6
|
|
|
$
|
925.3
|
|
|
$
|
952.4
|
|
|
$
|
11,054.4
|
|
Impact of foreign
exchange
|
|
|
—
|
|
|
|
—
|
|
|
|
18.2
|
|
|
|
—
|
|
|
|
18.2
|
|
Impact of 53rd week
2
|
|
|
(91.6)
|
|
|
|
(91.0)
|
|
|
|
(16.1)
|
|
|
|
(13.1)
|
|
|
|
(211.8)
|
|
Net sales from
acquired businesses
|
|
|
(406.3)
|
|
|
|
(567.6)
|
|
|
|
(46.0)
|
|
|
|
(57.7)
|
|
|
|
(1,077.6)
|
|
Net sales from
divested businesses 1
|
|
|
(69.2)
|
|
|
|
(23.2)
|
|
|
|
—
|
|
|
|
(11.2)
|
|
|
|
(103.6)
|
|
Organic Net
Sales
|
|
$
|
4,050.0
|
|
|
$
|
3,877.8
|
|
|
$
|
881.4
|
|
|
$
|
870.4
|
|
|
$
|
9,679.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - Net Sales
|
|
|
17.7
|
%
|
|
|
22.1
|
%
|
|
|
7.0
|
%
|
|
|
(6.2)
|
%
|
|
|
15.9
|
%
|
Impact of foreign
exchange (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
2.1
|
|
|
|
—
|
|
|
|
0.2
|
|
Impact of 53rd week
(pp)
|
|
|
(2.3)
|
|
|
|
(2.4)
|
|
|
|
(1.9)
|
|
|
|
(1.3)
|
|
|
|
(2.2)
|
|
Net sales from
acquired businesses (pp) 3
|
|
|
(9.9)
|
|
|
|
(15.1)
|
|
|
|
(5.1)
|
|
|
|
(6.1)
|
|
|
|
(11.1)
|
|
Net sales from
divested businesses (pp)
|
|
|
3.7
|
|
|
|
1.5
|
|
|
|
2.4
|
|
|
|
3.7
|
|
|
|
2.8
|
|
Net sales from sold
Trenton plant (pp)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.2
|
|
|
|
—
|
|
Organic Net
Sales
|
|
|
9.2
|
%
|
|
|
6.1
|
%
|
|
|
4.5
|
%
|
|
|
(9.7)
|
%
|
|
|
5.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume
(Organic)
|
|
|
9.8
|
%
|
|
|
5.0
|
%
|
|
|
3.9
|
%
|
|
|
(12.6)
|
%
|
|
|
5.2
|
%
|
Price/Mix
|
|
|
(0.6)
|
%
|
|
|
1.1
|
%
|
|
|
0.6
|
%
|
|
|
2.9
|
%
|
|
|
0.4
|
%
|
FY19
|
|
Grocery &
Snacks
|
|
|
Refrigerated & Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Total Conagra
Brands
|
|
Net
Sales
|
|
$
|
3,923.6
|
|
|
$
|
3,735.4
|
|
|
$
|
864.4
|
|
|
$
|
1,015.0
|
|
|
$
|
9,538.4
|
|
Net sales from
divested businesses 1
|
|
|
(215.0)
|
|
|
|
(80.7)
|
|
|
|
(21.2)
|
|
|
|
(49.2)
|
|
|
|
(366.1)
|
|
Net sales from sold
Trenton plant
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
Organic Net
Sales
|
|
$
|
3,708.6
|
|
|
$
|
3,654.7
|
|
|
$
|
843.2
|
|
|
$
|
963.8
|
|
|
$
|
9,170.3
|
|
|
1 A
portion of our Net Sales from divested businesses relates to our
private label peanut butter business, which we exited in Q3 FY20.
This exit occurred in waves, and therefore produced net sales
through the end of fiscal 2020.
|
2 Organic net sales growth excludes
the impact of fiscal 2020's 53rd week, which was calculated as
one-sixth of our last month's net sales (which included a total of
six weeks).
|
3 Percentage points may include
rounding to bridge the change in reported net sales to the change
in organic net sales.
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
Q4
FY20
|
|
Grocery
& Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
300.4
|
|
|
$
|
168.5
|
|
|
$
|
27.1
|
|
|
$
|
1.0
|
|
|
$
|
(106.2)
|
|
|
$
|
390.8
|
|
Restructuring
plans
|
|
|
9.2
|
|
|
|
3.5
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
9.5
|
|
|
|
22.4
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
Intangible impairment
charges
|
|
|
42.9
|
|
|
|
95.0
|
|
|
|
8.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
146.2
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5.0
|
|
|
|
5.0
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.7)
|
|
|
|
(3.7)
|
|
Adjusted Operating
Profit
|
|
$
|
352.5
|
|
|
$
|
267.0
|
|
|
$
|
35.6
|
|
|
$
|
1.0
|
|
|
$
|
(93.7)
|
|
|
$
|
562.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
20.4
|
%
|
|
|
12.4
|
%
|
|
|
10.2
|
%
|
|
|
0.5
|
%
|
|
|
|
|
|
|
11.9
|
%
|
Adjusted Operating
Profit Margin
|
|
|
23.9
|
%
|
|
|
19.7
|
%
|
|
|
13.4
|
%
|
|
|
0.5
|
%
|
|
|
|
|
|
|
17.1
|
%
|
Year-over-year %
change - Operating Profit
|
|
|
115.4
|
%
|
|
|
(17.2)
|
%
|
|
|
168.5
|
%
|
|
|
(97.1)
|
%
|
|
|
40.8
|
%
|
|
|
24.8
|
%
|
Year-over year %
change - Adjusted Operating Profit
|
|
|
91.2
|
%
|
|
|
45.7
|
%
|
|
|
47.2
|
%
|
|
|
(97.1)
|
%
|
|
|
12.6
|
%
|
|
|
63.5
|
%
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
|
589
|
bps
|
|
|
302
|
bps
|
|
|
260
|
bps
|
|
|
(1,277)
|
bps
|
|
|
|
|
|
|
394
|
bps
|
Q4
FY19
|
|
Grocery
& Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
139.4
|
|
|
$
|
203.7
|
|
|
$
|
10.1
|
|
|
$
|
35.5
|
|
|
$
|
(75.4)
|
|
|
$
|
313.3
|
|
Restructuring
plans
|
|
|
0.9
|
|
|
|
0.7
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
28.3
|
|
|
|
30.9
|
|
Intangible impairment
charges
|
|
|
76.5
|
|
|
|
—
|
|
|
|
13.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
89.6
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
0.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.6
|
|
|
|
2.3
|
|
Inventory fair value
mark-up rollout
|
|
|
0.5
|
|
|
|
1.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.7
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(39.1)
|
|
|
|
(39.1)
|
|
Gain on divestiture
of businesses
|
|
|
(33.1)
|
|
|
|
(23.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(56.2)
|
|
Fair value adjustment
of cash settleable equity awards issued in connection with Pinnacle
acquisition
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.5
|
|
|
|
3.5
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
Adjusted Operating
Profit
|
|
$
|
184.2
|
|
|
$
|
183.2
|
|
|
$
|
24.2
|
|
|
$
|
35.5
|
|
|
$
|
(83.1)
|
|
|
$
|
344.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
13.6
|
%
|
|
|
18.5
|
%
|
|
|
4.5
|
%
|
|
|
13.3
|
%
|
|
|
|
|
|
|
12.0
|
%
|
Adjusted Operating
Profit Margin
|
|
|
18.0
|
%
|
|
|
16.7
|
%
|
|
|
10.8
|
%
|
|
|
13.3
|
%
|
|
|
|
|
|
|
13.2
|
%
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
FY20
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
915.2
|
|
|
$
|
702.2
|
|
|
$
|
100.6
|
|
|
$
|
97.6
|
|
|
$
|
(368.5)
|
|
|
$
|
1,447.1
|
|
Restructuring
plans
|
|
|
58.4
|
|
|
|
15.8
|
|
|
|
1.6
|
|
|
|
—
|
|
|
|
63.1
|
|
|
|
138.9
|
|
Acquisitions and
divestitures
|
|
|
3.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.3
|
|
|
|
5.3
|
|
Impairment of
businesses held for sale
|
|
|
31.4
|
|
|
|
27.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
59.0
|
|
Intangible impairment
charges
|
|
|
46.4
|
|
|
|
110.8
|
|
|
|
8.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
165.5
|
|
Loss on divestiture
of businesses
|
|
|
1.5
|
|
|
|
0.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.7
|
|
Contract settlement
gain
|
|
|
(11.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(11.9)
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3.5
|
|
|
|
3.5
|
|
Environmental
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.6
|
|
|
|
6.6
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
5.5
|
|
|
|
5.5
|
|
Adjusted Operating
Profit
|
|
$
|
1,044.0
|
|
|
$
|
856.6
|
|
|
$
|
110.5
|
|
|
$
|
97.6
|
|
|
$
|
(287.5)
|
|
|
$
|
1,821.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
19.8
|
%
|
|
|
15.4
|
%
|
|
|
10.9
|
%
|
|
|
10.3
|
%
|
|
|
|
|
|
|
13.1
|
%
|
Adjusted Operating
Profit Margin
|
|
|
22.6
|
%
|
|
|
18.8
|
%
|
|
|
11.9
|
%
|
|
|
10.3
|
%
|
|
|
|
|
|
|
16.5
|
%
|
Year-over-year %
change - Operating Profit
|
|
|
20.0
|
%
|
|
|
8.9
|
%
|
|
|
0.8
|
%
|
|
|
(27.3)
|
%
|
|
|
(20.3)
|
%
|
|
|
22.7
|
%
|
Year-over year %
change - Adjusted Operating Profit
|
|
|
23.8
|
%
|
|
|
32.3
|
%
|
|
|
2.0
|
%
|
|
|
(27.3)
|
%
|
|
|
8.8
|
%
|
|
|
23.9
|
%
|
Year-over-year bps
change - Adjusted Operating Profit
|
|
111 bps
|
|
|
145 bps
|
|
|
(59) bps
|
|
|
(298) bps
|
|
|
|
|
|
|
107 bps
|
|
FY19
|
|
Grocery &
Snacks
|
|
|
Refrigerated
& Frozen
|
|
|
International
|
|
|
Foodservice
|
|
|
Corporate
Expense
|
|
|
Total
Conagra
Brands
|
|
Operating
Profit
|
|
$
|
762.6
|
|
|
$
|
645.1
|
|
|
$
|
99.8
|
|
|
$
|
134.3
|
|
|
$
|
(462.2)
|
|
|
$
|
1,179.6
|
|
Restructuring
plans
|
|
|
6.1
|
|
|
|
2.9
|
|
|
|
4.9
|
|
|
|
—
|
|
|
|
167.5
|
|
|
|
181.4
|
|
Intangible impairment
charges
|
|
|
76.5
|
|
|
|
—
|
|
|
|
13.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
89.6
|
|
Gain on divestiture
of businesses
|
|
|
(33.1)
|
|
|
|
(23.1)
|
|
|
|
(13.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(69.4)
|
|
Acquisitions and
divestitures
|
|
|
1.0
|
|
|
|
0.7
|
|
|
|
2.9
|
|
|
|
—
|
|
|
|
101.6
|
|
|
|
106.2
|
|
Integration
costs
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8.9
|
|
|
|
8.9
|
|
Inventory fair value
mark-up rollout
|
|
|
30.2
|
|
|
|
21.9
|
|
|
|
0.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
53.0
|
|
Novation of a legacy
guarantee
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(27.3)
|
|
|
|
(27.3)
|
|
Legal
matters
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(39.1)
|
|
|
|
(39.1)
|
|
Fair value adjustment
of cash settleable equity awards issued in connection with Pinnacle
acquisition
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(15.1)
|
|
|
|
(15.1)
|
|
Corporate hedging
derivative losses (gains)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.8
|
|
|
|
1.8
|
|
Adjusted Operating
Profit
|
|
$
|
843.3
|
|
|
$
|
647.5
|
|
|
$
|
108.4
|
|
|
$
|
134.3
|
|
|
$
|
(263.9)
|
|
|
$
|
1,469.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit
Margin
|
|
|
19.4
|
%
|
|
|
17.3
|
%
|
|
|
11.5
|
%
|
|
|
13.2
|
%
|
|
|
|
|
|
|
12.4
|
%
|
Adjusted Operating
Profit Margin
|
|
|
21.5
|
%
|
|
|
17.3
|
%
|
|
|
12.5
|
%
|
|
|
13.2
|
%
|
|
|
|
|
|
|
15.4
|
%
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
Q4
FY20
|
|
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
|
|
$
|
922.8
|
|
|
$
|
532.0
|
|
|
$
|
390.8
|
|
|
$
|
238.2
|
|
|
$
|
59.8
|
|
|
|
22.9
|
%
|
|
$
|
201.4
|
|
|
$
|
0.41
|
|
% of Net
Sales
|
|
|
28.1
|
%
|
|
|
16.2
|
%
|
|
|
11.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
10.2
|
|
|
|
12.2
|
|
|
|
22.4
|
|
|
|
22.4
|
|
|
|
5.6
|
|
|
|
|
|
|
|
16.8
|
|
|
|
0.03
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
0.4
|
|
|
|
|
|
|
|
1.3
|
|
|
|
—
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(3.7)
|
|
|
|
—
|
|
|
|
(3.7)
|
|
|
|
(3.7)
|
|
|
|
(0.9)
|
|
|
|
|
|
|
|
(2.8)
|
|
|
|
(0.01)
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
59.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Pension valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
44.8
|
|
|
|
11.2
|
|
|
|
|
|
|
|
33.6
|
|
|
|
0.07
|
|
Adjustment to gain on
Ardent JV asset sale
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
0.1
|
|
|
|
—
|
|
Intangible impairment
charges
|
|
|
—
|
|
|
|
146.2
|
|
|
|
146.2
|
|
|
|
146.2
|
|
|
|
34.0
|
|
|
|
|
|
|
|
112.2
|
|
|
|
0.23
|
|
Legal
matters
|
|
|
—
|
|
|
|
5.0
|
|
|
|
5.0
|
|
|
|
5.0
|
|
|
|
1.3
|
|
|
|
|
|
|
|
3.7
|
|
|
|
0.01
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.3)
|
|
|
|
|
|
|
|
1.3
|
|
|
|
—
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.01
|
|
Adjusted
|
|
$
|
929.3
|
|
|
$
|
307.7
|
|
|
$
|
562.4
|
|
|
$
|
454.6
|
|
|
$
|
110.1
|
|
|
|
23.0
|
%
|
|
$
|
367.6
|
|
|
$
|
0.75
|
|
% of Net
Sales
|
|
|
28.3
|
%
|
|
|
9.4
|
%
|
|
|
17.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - reported
|
|
97
bps
|
|
|
107
bps
|
|
|
(10)
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - adjusted
|
|
113
bps
|
|
|
(178)
bps
|
|
|
394
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
30.3
|
%
|
|
|
34.8
|
%
|
|
|
24.8
|
%
|
|
|
26.8
|
%
|
|
|
(16.7)
|
%
|
|
|
|
|
|
|
59.2
|
%
|
|
|
57.7
|
%
|
Year-over-year
change - adjusted
|
|
|
31.1
|
%
|
|
|
5.7
|
%
|
|
|
63.5
|
%
|
|
|
103.9
|
%
|
|
|
93.6
|
%
|
|
|
|
|
|
|
110.6
|
%
|
|
|
108.3
|
%
|
|
Q4
FY19
|
|
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
|
|
$
|
708.0
|
|
|
$
|
394.7
|
|
|
$
|
313.3
|
|
|
$
|
187.8
|
|
|
$
|
71.8
|
|
|
|
36.5
|
%
|
|
$
|
126.5
|
|
|
$
|
0.26
|
|
% of Net
Sales
|
|
|
27.1
|
%
|
|
|
15.1
|
%
|
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
1.3
|
|
|
|
29.6
|
|
|
|
30.9
|
|
|
|
30.9
|
|
|
|
7.7
|
|
|
|
|
|
|
|
23.2
|
|
|
|
0.05
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
2.3
|
|
|
|
2.3
|
|
|
|
2.3
|
|
|
|
0.4
|
|
|
|
|
|
|
|
1.9
|
|
|
|
—
|
|
Intangible impairment
charges 3
|
|
|
—
|
|
|
|
89.6
|
|
|
|
89.6
|
|
|
|
89.6
|
|
|
|
20.8
|
|
|
|
|
|
|
|
66.9
|
|
|
|
0.14
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(2.0)
|
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
(2.0)
|
|
|
|
(0.5)
|
|
|
|
|
|
|
|
(1.5)
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
73.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Inventory fair value
mark-up rollout
|
|
|
1.7
|
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
0.4
|
|
|
|
|
|
|
|
1.3
|
|
|
|
—
|
|
Legal
matters
|
|
|
—
|
|
|
|
(39.1)
|
|
|
|
(39.1)
|
|
|
|
(39.1)
|
|
|
|
(10.0)
|
|
|
|
|
|
|
|
(29.1)
|
|
|
|
(0.06)
|
|
Fair value adjustment
of cash settleable equity awards issued in connection with Pinnacle
acquisition
|
|
|
—
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
(1.8)
|
|
|
|
|
|
|
|
5.3
|
|
|
|
0.01
|
|
Gain on divestiture
of businesses
|
|
|
—
|
|
|
|
(56.2)
|
|
|
|
(56.2)
|
|
|
|
(56.2)
|
|
|
|
(30.7)
|
|
|
|
|
|
|
|
(25.5)
|
|
|
|
(0.05)
|
|
Pension valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4.3
|
|
|
|
1.1
|
|
|
|
|
|
|
|
3.2
|
|
|
|
0.01
|
|
Capital loss
valuation allowance adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8.1
|
|
|
|
|
|
|
|
(8.1)
|
|
|
|
(0.02)
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10.5)
|
|
|
|
|
|
|
|
10.5
|
|
|
|
0.02
|
|
Adjusted
|
|
$
|
709.0
|
|
|
$
|
291.1
|
|
|
$
|
344.0
|
|
|
$
|
222.8
|
|
|
$
|
56.8
|
|
|
|
24.5
|
%
|
|
$
|
174.6
|
|
|
$
|
0.36
|
|
% of Net
Sales
|
|
|
27.1
|
%
|
|
|
11.1
|
%
|
|
|
13.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 expense (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.
|
3 Includes charges related to
consolidated joint ventures. These charges are recorded at 100% for
all line items before Net income attributable to Conagra Brands,
Inc. Net income attributable to Conagra Brands, Inc. excludes Net
income (loss) attributable to noncontrolling interests.
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
FY20
|
|
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
|
|
$
|
3,069.6
|
|
|
$
|
1,622.5
|
|
|
$
|
1,447.1
|
|
|
$
|
969.9
|
|
|
$
|
201.3
|
|
|
|
19.3
|
%
|
|
$
|
840.1
|
|
|
$
|
1.72
|
|
% of Net
Sales
|
|
|
27.8
|
%
|
|
|
14.7
|
%
|
|
|
13.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
33.2
|
|
|
|
105.7
|
|
|
|
138.9
|
|
|
|
139.5
|
|
|
|
32.7
|
|
|
|
|
|
|
|
106.8
|
|
|
|
0.22
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
5.3
|
|
|
|
5.3
|
|
|
|
5.3
|
|
|
|
1.4
|
|
|
|
|
|
|
|
3.9
|
|
|
|
0.01
|
|
Corporate hedging
derivative losses (gains)
|
|
|
5.5
|
|
|
|
—
|
|
|
|
5.5
|
|
|
|
5.5
|
|
|
|
1.4
|
|
|
|
|
|
|
|
4.1
|
|
|
|
0.01
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
230.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Pension settlement
and valuation adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
42.9
|
|
|
|
10.8
|
|
|
|
|
|
|
|
32.1
|
|
|
|
0.07
|
|
Gain on Ardent JV
asset sale
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.0)
|
|
|
|
|
|
|
|
(3.1)
|
|
|
|
(0.01)
|
|
Impairment of
businesses held for sale
|
|
|
—
|
|
|
|
59.0
|
|
|
|
59.0
|
|
|
|
59.0
|
|
|
|
4.0
|
|
|
|
|
|
|
|
55.0
|
|
|
|
0.11
|
|
Contract settlement
gain
|
|
|
—
|
|
|
|
(11.9)
|
|
|
|
(11.9)
|
|
|
|
(11.9)
|
|
|
|
(3.0)
|
|
|
|
|
|
|
|
(8.9)
|
|
|
|
(0.02)
|
|
Intangible impairment
charges
|
|
|
—
|
|
|
|
165.5
|
|
|
|
165.5
|
|
|
|
165.5
|
|
|
|
38.5
|
|
|
|
|
|
|
|
127.0
|
|
|
|
0.26
|
|
Legal
matters
|
|
|
—
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
3.5
|
|
|
|
0.9
|
|
|
|
|
|
|
|
2.6
|
|
|
|
0.01
|
|
Environmental
matters
|
|
|
—
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
6.6
|
|
|
|
1.6
|
|
|
|
|
|
|
|
5.0
|
|
|
|
0.01
|
|
Loss on divestiture
of businesses
|
|
|
—
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
1.7
|
|
|
|
(0.2)
|
|
|
|
|
|
|
|
1.9
|
|
|
|
—
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
51.2
|
|
|
|
|
|
|
|
(51.2)
|
|
|
|
(0.10)
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Adjusted
|
|
$
|
3,108.3
|
|
|
$
|
1,056.4
|
|
|
$
|
1,821.2
|
|
|
$
|
1,387.5
|
|
|
$
|
339.6
|
|
|
|
23.2
|
%
|
|
$
|
1,115.3
|
|
|
$
|
2.28
|
|
% of Net
Sales
|
|
|
28.1
|
%
|
|
|
9.6
|
%
|
|
|
16.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - reported
|
|
(5)
bps
|
|
|
(77)
bps
|
|
|
73
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
% of net sales change - adjusted
|
|
(39)
bps
|
|
|
(88)
bps
|
|
|
107
bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year
change - reported
|
|
|
15.7
|
%
|
|
|
10.1
|
%
|
|
|
22.7
|
%
|
|
|
17.8
|
%
|
|
|
(8.0)
|
%
|
|
|
|
|
|
|
23.8
|
%
|
|
|
12.4
|
%
|
Year-over-year
change - adjusted
|
|
|
14.3
|
%
|
|
|
6.1
|
%
|
|
|
23.9
|
%
|
|
|
22.9
|
%
|
|
|
15.7
|
%
|
|
|
|
|
|
|
24.7
|
%
|
|
|
13.4
|
%
|
|
FY19
|
|
Gross
profit
|
|
|
Selling, general and administrative expenses
|
|
|
Operating
profit 1
|
|
|
Income from
continuing
operations 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
from continuing
operations
attributable
to Conagra
Brands, Inc common
stockholders
|
|
Reported
|
|
$
|
2,653.0
|
|
|
$
|
1,473.4
|
|
|
$
|
1,179.6
|
|
|
$
|
823.3
|
|
|
$
|
218.8
|
|
|
|
24.3
|
%
|
|
$
|
678.3
|
|
|
$
|
1.53
|
|
% of Net
Sales
|
|
|
27.8
|
%
|
|
|
15.4
|
%
|
|
|
12.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
plans
|
|
|
11.1
|
|
|
|
170.3
|
|
|
|
181.4
|
|
|
|
180.8
|
|
|
|
41.9
|
|
|
|
|
|
|
|
138.9
|
|
|
|
0.31
|
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
106.2
|
|
|
|
106.2
|
|
|
|
118.1
|
|
|
|
23.3
|
|
|
|
|
|
|
|
94.8
|
|
|
|
0.21
|
|
Integration
costs
|
|
|
—
|
|
|
|
8.9
|
|
|
|
8.9
|
|
|
|
8.9
|
|
|
|
2.3
|
|
|
|
|
|
|
|
6.6
|
|
|
|
0.01
|
|
Corporate hedging
derivative losses (gains)
|
|
|
1.8
|
|
|
|
—
|
|
|
|
1.8
|
|
|
|
1.8
|
|
|
|
0.4
|
|
|
|
|
|
|
|
1.4
|
|
|
|
—
|
|
Advertising and
promotion expenses 2
|
|
|
—
|
|
|
|
253.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
Legal
matters
|
|
|
—
|
|
|
|
(39.1)
|
|
|
|
(39.1)
|
|
|
|
(39.1)
|
|
|
|
(10.0)
|
|
|
|
|
|
|
|
(29.1)
|
|
|
|
(0.07)
|
|
Inventory fair value
mark-up rollout
|
|
|
53.0
|
|
|
|
—
|
|
|
|
53.0
|
|
|
|
53.0
|
|
|
|
13.5
|
|
|
|
|
|
|
|
39.5
|
|
|
|
0.09
|
|
Novation of a legacy
guarantee
|
|
|
—
|
|
|
|
(27.3)
|
|
|
|
(27.3)
|
|
|
|
(27.3)
|
|
|
|
—
|
|
|
|
|
|
|
|
(27.3)
|
|
|
|
(0.06)
|
|
Fair value adjustment
of cash settleable equity awards issued in connection with Pinnacle
acquisition
|
|
|
—
|
|
|
|
(15.1)
|
|
|
|
(15.1)
|
|
|
|
(15.1)
|
|
|
|
(2.9)
|
|
|
|
|
|
|
|
(12.2)
|
|
|
|
(0.03)
|
|
Gain on divestiture
of businesses
|
|
|
—
|
|
|
|
(69.4)
|
|
|
|
(69.4)
|
|
|
|
(69.4)
|
|
|
|
(34.3)
|
|
|
|
|
|
|
|
(35.1)
|
|
|
|
(0.08)
|
|
Intangible impairment
charges 3
|
|
|
—
|
|
|
|
89.6
|
|
|
|
89.6
|
|
|
|
89.6
|
|
|
|
20.8
|
|
|
|
|
|
|
|
66.9
|
|
|
|
0.15
|
|
Pension valuation
adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4.3
|
|
|
|
1.1
|
|
|
|
|
|
|
|
3.2
|
|
|
|
0.01
|
|
Gain on Ardent JV
asset sale
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3.5)
|
|
|
|
|
|
|
|
(11.6)
|
|
|
|
(0.03)
|
|
Capital loss
valuation allowance adjustment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
32.4
|
|
|
|
|
|
|
|
(32.4)
|
|
|
|
(0.07)
|
|
Unusual tax
items
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(10.4)
|
|
|
|
|
|
|
|
10.4
|
|
|
|
0.02
|
|
Loss from
discontinued operations, net of noncontrolling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
1.9
|
|
|
|
—
|
|
Rounding
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
—
|
|
|
|
0.02
|
|
Adjusted
|
|
$
|
2,718.9
|
|
|
$
|
995.9
|
|
|
$
|
1,469.6
|
|
|
$
|
1,128.9
|
|
|
$
|
293.4
|
|
|
|
24.7
|
%
|
|
$
|
894.2
|
|
|
$
|
2.01
|
|
% of Net
Sales
|
|
|
28.5
|
%
|
|
|
10.4
|
%
|
|
|
15.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 expense (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.
|
3 Includes charges related to
consolidated joint ventures. These charges are recorded at 100% for
all line items before Net income attributable to Conagra Brands,
Inc. Net income attributable to Conagra Brands, Inc. excludes Net
income (loss) attributable to noncontrolling interests.
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
|
|
Q4
FY20
|
|
|
Q4
FY19
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
201.4
|
|
|
$
|
126.5
|
|
|
|
59.2
|
%
|
Add Back:
|
Income tax
expense
|
|
|
59.8
|
|
|
|
71.8
|
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.6)
|
|
|
|
0.8
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
125.3
|
|
|
|
130.9
|
|
|
|
|
|
|
Depreciation
|
|
|
81.5
|
|
|
|
85.3
|
|
|
|
|
|
|
Amortization
|
|
|
14.9
|
|
|
|
15.1
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
482.3
|
|
|
$
|
430.4
|
|
|
|
12.1
|
%
|
Restructuring plans
1
|
|
|
13.6
|
|
|
|
27.0
|
|
|
|
|
|
Acquisitions and
divestitures
|
|
|
1.7
|
|
|
|
2.3
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
(3.7)
|
|
|
|
(2.0)
|
|
|
|
|
|
Pension valuation
adjustment
|
|
|
44.8
|
|
|
|
4.3
|
|
|
|
|
|
Intangible impairment
charges 2
|
|
|
146.2
|
|
|
|
86.5
|
|
|
|
|
|
Inventory fair value
mark-up rollout
|
|
|
—
|
|
|
|
1.7
|
|
|
|
|
|
Gain on divestiture
of businesses
|
|
|
—
|
|
|
|
(56.2)
|
|
|
|
|
|
Legal
matters
|
|
|
5.0
|
|
|
|
(39.1)
|
|
|
|
|
|
Fair value adjustment
of cash settleable equity awards issued in connection with Pinnacle
acquisition
|
|
|
—
|
|
|
|
3.5
|
|
|
|
|
|
Adjustment to gain on
Ardent JV asset sale
|
|
|
0.1
|
|
|
|
—
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
690.0
|
|
|
$
|
458.4
|
|
|
|
50.5
|
%
|
|
1 Excludes
comparability items related to depreciation.
|
2 Excludes
comparability items attributable to noncontrolling
interests.
|
|
|
|
FY20
|
|
|
FY19
|
|
|
%
Change
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
840.1
|
|
|
$
|
678.3
|
|
|
|
23.8
|
%
|
Less:
|
Loss from
discontinued operations, net of tax
|
|
|
—
|
|
|
|
(1.9)
|
|
|
|
|
|
Add Back:
|
Income tax
expense
|
|
|
201.3
|
|
|
|
218.8
|
|
|
|
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.9)
|
|
|
|
(0.1)
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
487.1
|
|
|
|
391.4
|
|
|
|
|
|
|
Depreciation
|
|
|
329.1
|
|
|
|
283.9
|
|
|
|
|
|
|
Amortization
|
|
|
59.8
|
|
|
|
49.1
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation, and amortization
|
|
$
|
1,916.5
|
|
|
$
|
1,623.3
|
|
|
|
18.1
|
%
|
Restructuring plans
1
|
|
|
106.5
|
|
|
|
171.2
|
|
|
|
|
|
Acquisitions and
divestitures 2
|
|
|
5.3
|
|
|
|
106.2
|
|
|
|
|
|
Integration
costs
|
|
|
—
|
|
|
|
8.9
|
|
|
|
|
|
Corporate hedging
derivative losses (gains)
|
|
|
5.5
|
|
|
|
1.8
|
|
|
|
|
|
Pension settlement
and valuation adjustment
|
|
|
42.9
|
|
|
|
4.3
|
|
|
|
|
|
Impairment of
businesses held for sale
|
|
|
59.0
|
|
|
|
—
|
|
|
|
|
|
Inventory fair value
mark-up rollout
|
|
|
—
|
|
|
|
53.0
|
|
|
|
|
|
Loss (gain) on
divestiture of businesses
|
|
|
1.7
|
|
|
|
(69.4)
|
|
|
|
|
|
Novation of a legacy
guarantee
|
|
|
—
|
|
|
|
(27.3)
|
|
|
|
|
|
Fair value adjustment
of cash settleable equity awards issued in connection with Pinnacle
acquisition
|
|
|
—
|
|
|
|
(15.1)
|
|
|
|
|
|
Legal
matters
|
|
|
3.5
|
|
|
|
(39.1)
|
|
|
|
|
|
Environmental
matters
|
|
|
6.6
|
|
|
|
—
|
|
|
|
|
|
Contract settlement
gain
|
|
|
(11.9)
|
|
|
|
—
|
|
|
|
|
|
Intangible impairment
charges 3
|
|
|
165.5
|
|
|
|
86.5
|
|
|
|
|
|
Gain on Ardent JV
asset sale
|
|
|
(4.1)
|
|
|
|
(15.1)
|
|
|
|
|
|
Adjusted Earnings
before interest, taxes, depreciation, and
amortization
|
|
$
|
2,297.0
|
|
|
$
|
1,889.2
|
|
|
|
21.6
|
%
|
|
1 Excludes
comparability items related to depreciation.
|
2 Excludes
comparability items related to interest expense.
|
3 Excludes
comparability items attributable to noncontrolling
interests.
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
|
|
Q2
FY19
|
|
|
Q3
FY19
|
|
|
Q4
FY19
|
|
|
Q1
FY20
|
|
Q2
FY20
|
|
Q3
FY20
|
|
Q4
FY20
|
|
Notes
payable
|
|
$
|
0.9
|
|
|
$
|
—
|
|
|
$
|
1.0
|
|
|
$
|
56.0
|
|
$
|
0.5
|
|
$
|
0.8
|
|
$
|
1.1
|
|
Current installments
of long-term debt
|
|
|
17.2
|
|
|
|
19.9
|
|
|
|
20.6
|
|
|
|
150.1
|
|
|
1,173.8
|
|
|
923.8
|
|
|
845.5
|
|
Senior long-term
debt, excluding current installments
|
|
|
11,349.5
|
|
|
|
10,911.8
|
|
|
|
10,459.8
|
|
|
|
10,127.5
|
|
|
9,100.0
|
|
|
8,897.8
|
|
|
8,900.8
|
|
Subordinated
debt
|
|
|
195.9
|
|
|
|
195.9
|
|
|
|
195.9
|
|
|
|
195.9
|
|
|
195.9
|
|
|
195.9
|
|
|
—
|
|
Total
Debt
|
|
$
|
11,563.5
|
|
|
$
|
11,127.6
|
|
|
$
|
10,677.3
|
|
|
$
|
10,529.5
|
|
$
|
10,470.2
|
|
$
|
10,018.3
|
|
$
|
9,747.4
|
|
Less: Cash
|
|
|
442.3
|
|
|
|
282.2
|
|
|
|
236.6
|
|
|
|
64.7
|
|
|
192.0
|
|
|
99.0
|
|
|
553.3
|
|
Net
Debt
|
|
$
|
11,121.2
|
|
|
$
|
10,845.4
|
|
|
$
|
10,440.7
|
|
|
$
|
10,464.8
|
|
$
|
10,278.2
|
|
$
|
9,919.3
|
|
$
|
9,194.1
|
|
|
|
FY20
|
|
Net
Debt
|
|
$
|
9,194.1
|
|
|
|
|
|
|
Net income
attributable to Conagra Brands, Inc.
|
|
$
|
840.1
|
|
Add Back:
|
Income tax
expense
|
|
|
201.3
|
|
|
Income tax expense
attributable to noncontrolling interests
|
|
|
(0.9)
|
|
|
Interest expense,
net
|
|
|
487.1
|
|
|
Depreciation
|
|
|
329.1
|
|
|
Amortization
|
|
|
59.8
|
|
Earnings before
interest, taxes, depreciation, and amortization
(EBITDA)
|
|
$
|
1,916.5
|
|
Restructuring plans
1
|
|
|
106.5
|
|
Acquisitions and
divestitures
|
|
|
5.3
|
|
Corporate hedging
derivative losses
|
|
|
5.5
|
|
Pension settlement
and valuation adjustment
|
|
|
42.9
|
|
Impairment of
businesses held for sale
|
|
|
59.0
|
|
Loss on divestiture
of businesses
|
|
|
1.7
|
|
Legal
matters
|
|
|
3.5
|
|
Environmental
matters
|
|
|
6.6
|
|
Contract settlement
gain
|
|
|
(11.9)
|
|
Intangible impairment
charges
|
|
|
165.5
|
|
Gain on Ardent JV
asset sale
|
|
|
(4.1)
|
|
Adjusted
EBITDA
|
|
$
|
2,297.0
|
|
|
|
|
|
|
Net Debt to
Adjusted EBITDA
|
|
|
4.0
|
|
|
1 Excludes
comparability items related to depreciation.
|
Conagra Brands,
Inc.
|
Reconciliation of
Non-GAAP Financial Measures to Reported Financial
Measures
|
(in
millions)
|
|
|
|
FY20
|
|
|
FY19
|
|
|
%
Change
|
|
Interest expense,
net
|
|
$
|
487.1
|
|
|
$
|
391.4
|
|
|
|
24.5
|
%
|
Acquisitions and
divestitures
|
|
|
—
|
|
|
|
(11.9)
|
|
|
|
|
|
Adjusted interest
expense, net
|
|
$
|
487.1
|
|
|
$
|
379.5
|
|
|
|
28.4
|
%
|
|
|
|
Q4
FY20
|
|
|
Q4
FY19
|
|
|
%
Change
|
|
Equity method
investment earnings
|
|
$
|
22.9
|
|
|
$
|
9.2
|
|
|
|
148.8
|
%
|
Adjustment to gain on
Ardent JV asset sale
|
|
|
0.1
|
|
|
|
—
|
|
|
|
|
|
Adjusted equity
method investment earnings
|
|
$
|
23.0
|
|
|
$
|
9.2
|
|
|
|
150.6
|
%
|
|
|
|
FY20
|
|
|
FY19
|
|
|
%
Change
|
|
Equity method
investment earnings
|
|
$
|
73.2
|
|
|
$
|
75.8
|
|
|
|
(3.4)
|
%
|
Gain on Ardent JV
asset sale
|
|
|
(4.1)
|
|
|
|
(15.1)
|
|
|
|
|
|
Adjusted equity
method investment earnings
|
|
$
|
69.1
|
|
|
$
|
60.7
|
|
|
|
14.0
|
%
|
|
|
|
Q4
FY20
|
|
|
Q4
FY19
|
|
|
%
Change
|
|
Pension and
postretirement non-service expense (income)
|
|
$
|
27.3
|
|
|
$
|
(5.4)
|
|
|
|
N/A
|
|
Pension valuation
adjustment
|
|
|
(44.8)
|
|
|
|
(4.3)
|
|
|
|
|
|
Adjusted pension
and postretirement non-service income
|
|
$
|
(17.5)
|
|
|
$
|
(9.7)
|
|
|
|
79.3
|
%
|
|
|
|
FY20
|
|
|
FY19
|
|
|
%
Change
|
|
Pension and
postretirement non-service income
|
|
$
|
(9.9)
|
|
|
$
|
(35.1)
|
|
|
|
(71.9)
|
%
|
Restructuring
plans
|
|
|
(0.6)
|
|
|
|
0.6
|
|
|
|
|
|
Pension settlement
and valuation adjustment
|
|
|
(42.9)
|
|
|
|
(4.3)
|
|
|
|
|
|
Adjusted pension
and postretirement non-service income
|
|
$
|
(53.4)
|
|
|
$
|
(38.8)
|
|
|
|
37.3
|
%
|
|
|
|
May 31,
2020
|
|
|
May 26,
2019
|
|
Net cash flows from
operating activities - continuing operations
|
|
$
|
1,842.6
|
|
|
$
|
1,114.3
|
|
Additions to
property, plant and equipment
|
|
|
(369.5)
|
|
|
|
(353.1)
|
|
Free cash
flow
|
|
$
|
1,473.1
|
|
|
$
|
761.2
|
|
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SOURCE Conagra Brands, Inc.