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Conagra Brands Reports Fourth Quarter Results

Conagra Brands, Inc. (NYSE: CAG) has released its financial results for the fourth quarter and the full fiscal year 2025, ended on May 25, 2025. The results outline a challenging year for the company amidst fluctuating economic conditions, impacting net sales and profits.

Q4 Highlights

During the fourth quarter, Conagra witnessed a reported net sales decline of 4.3%, with organic net sales decreasing by 3.5%. Reported operating margins stood at 11.5%, with adjusted operating margins slightly higher at 13.8%. The diluted earnings per share (EPS) for the quarter was recorded at $0.53, which reflects an 8.2% decrease in adjusted EPS to $0.56 compared to the previous year.

Annual Performance Overview

For the full fiscal year, the company reported a 3.6% decrease in net sales amounting to $11.6 billion. Their operating margins significantly rose by 467 basis points to 11.8%, although the adjusted operating margin faced a slight decline. Notably, diluted EPS surged by an impressive 233.3% to $2.40, while the adjusted figure fell by 13.9% to $2.30.

CEO Remarks

Sean Connolly, the CEO, expressed pride in the team's perseverance throughout the turbulent fiscal year. He acknowledged the company’s strategic focus on enhancing business operations while addressing broader macroeconomic challenges, such as inflation and supply chain constraints. Connolly emphasized an enduring commitment to fostering growth in high-potential segments, particularly within frozen and snacks products, and maintaining a resilient supply chain.

Future Guidance

Looking ahead to fiscal 2026, Conagra has set a cautious outlook. The company anticipates organic net sales growth in the range of -1% to +1%, adjusted operating margins between approximately 11.0% and 11.5%, and adjusted EPS projected to be between $1.70 and $1.85. These predictions account for ongoing inflationary pressures and potential tariff impacts.

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• - Organic net sales are expected to reflect the ongoing challenges with a growth estimate of between -1% to 1%.
• - Management aims to sustain an adjusted operational focus while encountering typical market volatility.

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Segment Performance

Breaking down performance by category, the Grocery & Snacks segment saw a 2.1% net sales decrease, while the Refrigerated & Frozen segment faced a more considerable decline of 4.4%. The International segment suffered a substantial 13.8% drop, reflective of both foreign exchange impacts and market trends.

Economic Considerations

Conagra also highlighted significant external factors impacting their operational performance, including elevated inflation rates and supply chain disruptions. The company’s strategic focus on cost management and cash flow remains crucial amidst these headwinds. Connolly concluded that, despite near-term obstacles, Conagra is poised to achieve sustainable growth and create long-term shareholder value.

Conclusion

Conagra Brands has faced challenges this year, yet its transparency in reporting, combined with proactive strategies, set the stage for stability moving forward. The company's commitment to enhancing its core product segments while navigating economic uncertainties signifies their adaptability in a competitive food market.

As Conagra prepares for fiscal 2026, stakeholders will be looking closely at how the company executes its strategies amidst these ongoing economic pressures.

For further information, visit Conagra Brands Investor Relations.