Conagra Brands Prepares to Showcase Innovations at CAGNY Conference and Share 2025 Financial Outlook
Conagra Brands, Inc. (NYSE: CAG), a leading figure in North America's food industry, is gearing up to present at the annual Consumer Analyst Group of New York (CAGNY) Conference. This significant event is scheduled for February 18, 2025, at 9:00 a.m. ET. Major executives from Conagra, including CEO Sean Connolly, CFO Dave Marberger, and Senior VP Bob Nolan, will lay out the company's strengths, insights into the consumer landscape, and innovative growth strategies. In addition, they'll unveil an array of new products slated for launch in 2025.
The discussion will also encompass an updated financial perspective for fiscal 2025. Recent events have posed challenges for Conagra, specifically regarding customer service interruptions linked to supply constraints in two key product areas: frozen meals featuring chicken and frozen vegetables. Furthermore, fluctuations in foreign exchange rates are anticipated to negatively influence adjusted earnings per share.
In light of these challenges, Conagra's updated fiscal guidance includes a slight revision in expected organic net sales growth, now projected at approximately -2.0%, compared to previous expectations which were closer to flat. The anticipated adjusted operating margin has also seen a downward adjustment from around 14.8% to 14.4%. As for the adjusted earnings per share, the forthcoming estimate has been revised lower to about $2.35, down from an earlier range of $2.45 to $2.50. The net leverage ratio estimate has shifted to approximately 3.55x from a previous forecast of around 3.4x.
Despite these short-term challenges, Conagra remains unwavering in its commitment to innovation and strengthening its brand portfolio. CEO Sean Connolly has expressed optimism, stating, "We are dedicated to investing in our brands and ensuring we deliver the high-quality products consumers expect. The strong and improving demand we’ve witnessed this year speaks to the effectiveness of those investments. Our strategic collaborations and infrastructure enhancements position us well for the future."
The manufacturing challenges related to chicken in frozen meals have notably impacted production. In response to quality inconsistencies, Conagra proactively halted production at its primary facility, made operational tweaks, and brought production back online gradually. The goal was to ensure that all items met strict quality standards. The company has also turned to third-party manufacturers to fill the gap during this recovery phase. While these processes have allowed Conagra to resume acceptable production levels, they have unfortunately resulted in decreased volume, lower sales, and reduced profit expectations for the latter half of the fiscal year.
Looking ahead, Conagra plans substantial upgrades to its facilities, particularly focusing on the chicken production site, scheduled for completion by the end of the first quarter of fiscal 2026. To mitigate supply risks while upgrades are carried out, the brand is enhancing inventory levels with the help of external manufacturers, although production during this period will operate at a reduced pace.
On the frozen vegetable front, Conagra's business has seen a remarkable rise in demand following strong performance in previous quarters. The surge in consumption has led to unexpected inventory depletion, prompting the company to implement product allocation measures and reduce merchandising efforts to replenish stock ahead of the Easter period.
Moreover, Conagra is investing in surge capacity to better handle ongoing demand, as this sector has consistently shown growth thanks to the company’s strategic investments.
For those interested, a live audio webcast of the CAGNY presentation, including accompanying slides, will be accessible on Conagra Brands' investor relations web page on February 18, and a replay will be available until February 18, 2026.
Conagra Brands continues to adapt to changing market conditions while remaining committed to its long-term growth objectives, emphasized by its diverse portfolio of beloved food brands such as Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, and many others. Headquartered in Chicago, the corporation reported net sales exceeding $12 billion for fiscal 2024, affirming its influential presence in the food sector.
As the CAGNY Conference approaches, all eyes will undoubtedly be on Conagra as it outlines its future vision and innovations during this pivotal industry gathering.
The discussion will also encompass an updated financial perspective for fiscal 2025. Recent events have posed challenges for Conagra, specifically regarding customer service interruptions linked to supply constraints in two key product areas: frozen meals featuring chicken and frozen vegetables. Furthermore, fluctuations in foreign exchange rates are anticipated to negatively influence adjusted earnings per share.
In light of these challenges, Conagra's updated fiscal guidance includes a slight revision in expected organic net sales growth, now projected at approximately -2.0%, compared to previous expectations which were closer to flat. The anticipated adjusted operating margin has also seen a downward adjustment from around 14.8% to 14.4%. As for the adjusted earnings per share, the forthcoming estimate has been revised lower to about $2.35, down from an earlier range of $2.45 to $2.50. The net leverage ratio estimate has shifted to approximately 3.55x from a previous forecast of around 3.4x.
Despite these short-term challenges, Conagra remains unwavering in its commitment to innovation and strengthening its brand portfolio. CEO Sean Connolly has expressed optimism, stating, "We are dedicated to investing in our brands and ensuring we deliver the high-quality products consumers expect. The strong and improving demand we’ve witnessed this year speaks to the effectiveness of those investments. Our strategic collaborations and infrastructure enhancements position us well for the future."
The manufacturing challenges related to chicken in frozen meals have notably impacted production. In response to quality inconsistencies, Conagra proactively halted production at its primary facility, made operational tweaks, and brought production back online gradually. The goal was to ensure that all items met strict quality standards. The company has also turned to third-party manufacturers to fill the gap during this recovery phase. While these processes have allowed Conagra to resume acceptable production levels, they have unfortunately resulted in decreased volume, lower sales, and reduced profit expectations for the latter half of the fiscal year.
Looking ahead, Conagra plans substantial upgrades to its facilities, particularly focusing on the chicken production site, scheduled for completion by the end of the first quarter of fiscal 2026. To mitigate supply risks while upgrades are carried out, the brand is enhancing inventory levels with the help of external manufacturers, although production during this period will operate at a reduced pace.
On the frozen vegetable front, Conagra's business has seen a remarkable rise in demand following strong performance in previous quarters. The surge in consumption has led to unexpected inventory depletion, prompting the company to implement product allocation measures and reduce merchandising efforts to replenish stock ahead of the Easter period.
Moreover, Conagra is investing in surge capacity to better handle ongoing demand, as this sector has consistently shown growth thanks to the company’s strategic investments.
For those interested, a live audio webcast of the CAGNY presentation, including accompanying slides, will be accessible on Conagra Brands' investor relations web page on February 18, and a replay will be available until February 18, 2026.
Conagra Brands continues to adapt to changing market conditions while remaining committed to its long-term growth objectives, emphasized by its diverse portfolio of beloved food brands such as Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, and many others. Headquartered in Chicago, the corporation reported net sales exceeding $12 billion for fiscal 2024, affirming its influential presence in the food sector.
As the CAGNY Conference approaches, all eyes will undoubtedly be on Conagra as it outlines its future vision and innovations during this pivotal industry gathering.
Topics Consumer Products & Retail）
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