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Overview of Conagra Brands' Fiscal 2026 Results

On July 15, 2026, Conagra Brands, Inc. (NYSE: CAG) announced its financial outcomes for the fourth quarter and entire fiscal year 2026, which concluded on May 31, 2026. The company faced various obstacles during this period, leading to noteworthy changes in sales growth and operating margins. Below are the key highlights from the fiscal report.

Fourth Quarter Highlights

• - Net Sales Insight: Conagra reported a net sales increase of 3.6%, totaling approximately $2.9 billion. However, organic net sales showed minimal growth, marking a flat status against the prior fiscal year.
• - Operating Margin: The company recorded a reported operating margin of (57.5)%, with an adjusted margin of 11.7%. This discrepancy largely stemmed from non-cash goodwill and brand impairment charges.
• - Earnings Per Share (EPS): There was a reported diluted loss of $3.37 per share for this quarter, with an adjusted EPS standing at $0.47.

Full Year Fiscal 2026 Evaluation

For the entire fiscal year, Conagra's performance was less favorable:

• - Net Sales Decline: The total net sales decreased by 2.9%, amounting to $11.3 billion. Organic net sales experienced a slight reduction of 0.4% as well.
• - Operating Margin Downturn: The full year reported operating margin was (14.4)%, leading to an adjusted margin of 11.3%.
• - Losses Recorded: Conagra reported a significant diluted loss of $4.00 per share for the fiscal year, mainly influenced by impairments.

CEO John Brase's Perspective

John Brase, stepping into his role as president and CEO, expressed optimism despite the company's challenges. He mentioned:
"I am honored to step into the role of CEO and energized by the opportunities ahead. Conagra has an exceptional portfolio of iconic brands, talented employees, strong customer relationships, and leading positions in attractive categories."
Brase shared that, while navigating a dynamic market, the company's results remained within the expected ranges, demonstrating resilience and effective execution.

He pointed out several near-term opportunities for strengthening the business, including stabilizing the operating margins and enhancing investment in brand development and supply chain processes.
To reflect these strategies, the Board of Directors approved a reduction in the annual dividend to $0.70 per share, emphasizing a commitment to improving company performance and shareholder returns.

Specific Financial Metrics

The fourth quarter analysis revealed notable contributions:

• - Grocery & Snacks Segment: This segment experienced a modest increase of 0.3% in net sales despite an adverse effect from market adjustments (MA).
• - Refrigerated & Frozen Segment: It reported a 5.3% increment in net sales, yet still experienced a decline in organic sales due to price fluctuations.
• - Foodservice Growth: This segment rose by 8.1%, underscoring the demand within the industry, driven by pricing strategies.

Fluctuations in operational metrics are evident across all segments, with gross margins declining as inflationary pressures and higher selling, general, and administrative (SGA) expenses impacted the overall profitability.

Future Guidance

As Conagra brands into fiscal 2027, the company has provided a cautious outlook:

• - Organic Net Sales Projection: Expected decreases between 3% to 1% when compared to fiscal 2026.
• - Adjusted Operating Margin: Guidelines suggest a range of 10.0% - 10.5%.
• - EPS Forecast: Management anticipates adjusted EPS between $1.40 and $1.50.

Conclusion

Conagra Brands, with its legacy and market position, acknowledges that the road ahead will require strategic adaptations to improve performance and shareholder value. As they continue to navigate through these changes, the emphasis will be on leveraging their rich portfolio while mitigating the impact of external challenges. Providing insightful guidance and taking proactive measures, Conagra aims to build a resilient foundation for sustainable growth.

For more information regarding their latest updates and conference calls, stakeholders can access additional details on the official Conagra Brands website under their investor relations section.