CONAGRA BRANDS REPORTS THIRD QUARTER RESULTS
Third quarter Highlights
- Net sales decreased 1.7% from the prior year quarter; organic net sales decreased 2.0%
- Operating margin was 15.5% representing a 33 basis point decrease over the prior year quarter. Adjusted operating margin was 16.4% representing a 49 basis point decrease over the prior year quarter.
- Diluted earnings per share (EPS) was
$0.64 , a 9.9% decrease over the prior year quarter. Adjusted EPS was$0.69 , a 9.2% decrease over the prior year quarter. - The company is increasing fiscal 2024 adjusted operating margin guidance and reaffirming organic net sales and adjusted EPS guidance.
CEO Perspective
Total Company Third Quarter Results
In the quarter, net sales were $3.0 billion reflecting:
- a 0.3% increase from the favorable impact of foreign exchange; and
- a 2.0% decrease in organic net sales.
The 2.0% decrease in organic net sales was driven by a 0.2% negative impact from price/mix, largely driven by the company's strategic investments in the quarter, and a 1.8% decrease in volume, primarily due to continued lower consumption trends.
Gross profit increased 2.4% to $859 million in the quarter, and adjusted gross profit increased 0.1% to $870 million. Third quarter gross profit increased as higher productivity more than offset the negative impacts of lower organic net sales, cost of goods sold inflation, and unfavorable operating leverage. Gross margin increased 114 basis points to 28.3% in the quarter, and adjusted gross margin increased 52 basis points to 28.7%.
Selling, general, and administrative expense (SG&A), which includes advertising and promotional expense (
Net interest expense was $107 million in the quarter. Compared to the prior-year period, net interest expense increased 2.2% or $2 million, primarily due to a higher weighted average interest rate on outstanding debt.
The average diluted share count in the quarter was 480 million shares.
In the quarter, net income attributable to
Adjusted EBITDA, which includes equity method investment earnings and pension and postretirement non-service expense (income), decreased 5.3% to $634 million in the quarter, primarily driven by the decrease in adjusted operating profit.
Grocery & Snacks Segment Third Quarter Results
Reported and organic net sales for the Grocery & Snacks segment increased 3.4% to
Operating profit for the segment increased 16.7% to $299 million in the quarter and adjusted operating profit increased 16.5% to $300 million as higher organic net sales, higher productivity, and lower A&P more than offset the negative impacts of cost of goods sold inflation, unfavorable operating leverage, and higher SG&A. In addition, we received a
Refrigerated & Frozen Segment Third Quarter Results
Reported and organic net sales for the Refrigerated & Frozen segment decreased 8.1% to
Operating profit for the segment decreased 23.6% to $202 million in the quarter. Adjusted operating profit decreased 25.2% to $203 million as higher productivity was more than offset by the negative impacts of lower organic net sales, cost of goods sold inflation, unfavorable operating leverage, and higher
International Segment Third Quarter Results
Net sales for the International segment increased 4.6% to $272 million in the quarter reflecting:
- a 3.6% increase from the favorable impact of foreign exchange; and
- a 1.0% increase in organic net sales.
On an organic net sales basis, price/mix decreased 1.7% and volume increased 2.7% primarily driven by a strong performance in the company's
Operating profit for the segment increased 13.9% to $42 million in the quarter. Adjusted operating profit increased 16.4% to $43 million as the benefits from higher productivity and higher organic net sales more than offset the negative impact of cost of goods sold inflation, and higher SG&A and
Foodservice Segment Third Quarter Results
Reported and organic net sales for the Foodservice segment decreased 1.0% to
Operating profit for the segment increased 48.7% to $35 million. Adjusted operating profit increased 40.6% to $35 million in the quarter as the benefits of higher productivity, price/mix, and lower SG&A more than offset the negative impacts of cost of goods sold inflation and unfavorable operating leverage.
Other Third Quarter Items
Corporate expenses increased 17.6% to $107 million in the quarter and adjusted corporate expense increased 21.2% to $82 million in the quarter driven primarily by higher incentive compensation compared to the prior year quarter.
We incurred pension and post-retirement non-service expense of
In the quarter, equity method investment earnings decreased 18.5% to $41 million as results from the company's joint venture, Ardent Mills, reflected slightly lower volume trends in the milling industry.
In the quarter, the effective tax rate was 23.7% compared to 22.6% in the prior-year quarter. The adjusted effective tax rate was 23.8% compared to 22.8% in the prior-year quarter.
In the quarter, the company paid a dividend of
Outlook
The company is increasing fiscal 2024 Adjusted Operating Margin guidance to approximately 15.8% and updating fiscal 2024 guidance for the following:
- Net Leverage Ratio of approximately 3.44x
- Capital expenditures of approximately
$425M - Interest expense of approximately
$435M
The company is reaffirming fiscal 2024 guidance for the following:
- Organic net sales to decrease between 1.0% and 2.0% compared to fiscal 2023
- Adjusted EPS is expected to be between
$2.60 and$2.65 - Adjusted effective tax rate of approximately 24%
- No pension income
- Ardent Mills contribution of approximately
$170M
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
- Approximately
$0.01 per diluted share of net expense related to corporate hedging derivative losses - Approximately
$0.03 per diluted share of net expense related to legacy legal matters - Approximately
$0.01 per diluted share of net benefit related to rounding
The following are included in the
- Approximately
$0.01 per diluted share of net expense due to fire related costs - Approximately
$0.04 per diluted share of net expense related to corporate hedging derivative losses
Please note that certain prior year amounts have been reclassified to conform with current year presentation.
Discussion of Results
About
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: risks associated with general economic and industry conditions, including inflation, rising interest rates, decreased availability of capital, volatility in financial markets, declining consumer spending rates, recessions, decreased energy availability, increased energy costs (including fuel surcharges), supply chain challenges, labor shortages, and geopolitical conflicts (including the ongoing conflict between
We caution readers not to place undue reliance on any forward-looking statements included in this document, which speak only as of the date of this document. 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 attributable to
Organic net sales excludes, from reported net sales, the impacts of foreign exchange, divested businesses and 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
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 net change in the derivative gains (losses) included in unallocated corporate expense during the period is reflected as a comparability item, Corporate hedging derivate gains (losses).
Note on Forward-Looking Non-GAAP Financial Measures
Our fiscal 2024 guidance includes certain non-GAAP financial measures (organic net sales growth, adjusted operating margin, adjusted EPS, net leverage ratio, and adjusted effective tax rate) that are presented on a forward-looking basis. Historically, the company has calculated these non-GAAP financial measures excluding the impact of certain items such as, but not limited to, foreign exchange, acquisitions, divestitures, restructuring expenses, the extinguishment of debt, hedging gains and losses, impairment charges, legacy legal contingencies, and unusual tax items. 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 timing and financial impact of such items. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.
Consolidated Statements of Earnings (in millions) (unaudited) |
||||||||||||
|
||||||||||||
|
|
THIRD QUARTER |
|
|||||||||
|
|
Thirteen Weeks |
|
|
Thirteen Weeks |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
Percent Change |
|
|||
Net sales |
|
$ |
3,032.9 |
|
|
$ |
3,086.5 |
|
|
|
(1.7) |
% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
2,174.1 |
|
|
|
2,247.7 |
|
|
|
(3.3) |
% |
Selling, general and administrative expenses |
|
|
387.4 |
|
|
|
348.8 |
|
|
|
11.0 |
% |
Pension and postretirement non-service expense (income) |
|
|
1.4 |
|
|
|
(6.0) |
|
|
|
N/A |
|
Interest expense, net |
|
|
106.5 |
|
|
|
104.2 |
|
|
|
2.2 |
% |
Income before income taxes and equity method investment earnings |
|
|
363.5 |
|
|
|
391.8 |
|
|
|
(7.2) |
% |
Income tax expense |
|
|
95.9 |
|
|
|
100.1 |
|
|
|
(4.2) |
% |
Equity method investment earnings |
|
|
41.2 |
|
|
|
50.5 |
|
|
|
(18.5) |
% |
Net income |
|
$ |
308.8 |
|
|
$ |
342.2 |
|
|
|
(9.8) |
% |
Less: Net income attributable to noncontrolling interests |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
(70.9) |
% |
Net income attributable to |
|
$ |
308.6 |
|
|
$ |
341.7 |
|
|
|
(9.7) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to |
|
$ |
0.64 |
|
|
$ |
0.72 |
|
|
|
(11.1) |
% |
Basic weighted average shares outstanding |
|
|
478.8 |
|
|
|
477.5 |
|
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to |
|
$ |
0.64 |
|
|
$ |
0.71 |
|
|
|
(9.9) |
% |
Diluted weighted average shares outstanding |
|
|
480.0 |
|
|
|
479.4 |
|
|
|
0.2 |
% |
Consolidated Statements of Earnings (in millions) (unaudited) |
||||||||||||
|
||||||||||||
|
|
THIRD QUARTER YEAR TO DATE |
|
|||||||||
|
|
Thirty-Nine |
|
|
Thirty-Nine |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
Percent Change |
|
|||
Net sales |
|
$ |
9,145.0 |
|
|
$ |
9,303.7 |
|
|
|
(1.7) |
% |
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
|
6,616.5 |
|
|
|
6,822.3 |
|
|
|
(3.0) |
% |
Selling, general and administrative expenses |
|
|
1,119.6 |
|
|
|
1,463.1 |
|
|
|
(23.5) |
% |
Pension and postretirement non-service income |
|
|
2.1 |
|
|
|
(18.2) |
|
|
|
N/A |
|
Interest expense, net |
|
|
325.8 |
|
|
|
301.6 |
|
|
|
8.0 |
% |
Income before income taxes and equity method investment earnings |
|
|
1,081.0 |
|
|
|
734.9 |
|
|
|
47.1 |
% |
Income tax expense |
|
|
297.1 |
|
|
|
237.0 |
|
|
|
25.4 |
% |
Equity method investment earnings |
|
|
131.0 |
|
|
|
149.0 |
|
|
|
(12.1) |
% |
Net income |
|
$ |
914.9 |
|
|
$ |
646.9 |
|
|
|
41.4 |
% |
Less: Net income attributable to noncontrolling interests |
|
|
0.4 |
|
|
|
0.8 |
|
|
|
(48.1) |
% |
Net income attributable to |
|
$ |
914.5 |
|
|
$ |
646.1 |
|
|
|
41.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to |
|
$ |
1.91 |
|
|
$ |
1.35 |
|
|
|
41.5 |
% |
Basic weighted average shares outstanding |
|
|
478.5 |
|
|
|
479.3 |
|
|
|
(0.2) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to |
|
$ |
1.91 |
|
|
$ |
1.34 |
|
|
|
42.5 |
% |
Diluted weighted average shares outstanding |
|
|
479.9 |
|
|
|
481.0 |
|
|
|
(0.2) |
% |
Consolidated Balance Sheets (in millions) (unaudited) |
||||||||
|
||||||||
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
78.5 |
|
|
$ |
93.3 |
|
Receivables, less allowance for doubtful accounts of |
|
|
916.5 |
|
|
|
952.8 |
|
Inventories |
|
|
2,143.4 |
|
|
|
2,212.2 |
|
Prepaid expenses and other current assets |
|
|
117.2 |
|
|
|
92.4 |
|
Current assets held for sale |
|
|
30.2 |
|
|
|
34.3 |
|
Total current assets |
|
|
3,285.8 |
|
|
|
3,385.0 |
|
Property, plant and equipment, net |
|
|
2,876.7 |
|
|
|
2,736.4 |
|
|
|
|
11,109.9 |
|
|
|
11,109.4 |
|
Brands, trademarks and other intangibles, net |
|
|
3,152.1 |
|
|
|
3,192.3 |
|
Other assets |
|
|
1,404.8 |
|
|
|
1,506.2 |
|
Noncurrent assets held for sale |
|
|
90.6 |
|
|
|
123.3 |
|
|
|
$ |
21,919.9 |
|
|
$ |
22,052.6 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Notes payable |
|
$ |
166.3 |
|
|
$ |
636.3 |
|
Current installments of long-term debt |
|
|
1,019.2 |
|
|
|
1,516.0 |
|
Accounts and other payables |
|
|
1,418.0 |
|
|
|
1,525.5 |
|
Accrued payroll |
|
|
168.3 |
|
|
|
163.5 |
|
Other accrued liabilities |
|
|
686.2 |
|
|
|
583.3 |
|
Current liabilities held for sale |
|
|
12.9 |
|
|
|
16.1 |
|
Total current liabilities |
|
|
3,470.9 |
|
|
|
4,440.7 |
|
Senior long-term debt, excluding current installments |
|
|
7,491.8 |
|
|
|
7,081.3 |
|
Other noncurrent liabilities |
|
|
1,729.4 |
|
|
|
1,718.0 |
|
Noncurrent liabilities held for sale |
|
|
2.3 |
|
|
|
5.3 |
|
Total stockholders' equity |
|
|
9,225.5 |
|
|
|
8,807.3 |
|
|
|
$ |
21,919.9 |
|
|
$ |
22,052.6 |
|
Condensed Consolidated Statements of Cash Flows (in millions)
|
||||||||
|
||||||||
(unaudited) |
|
Thirty-Nine |
|
|
Thirty-Nine |
|
||
|
|
|
|
|
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
914.9 |
|
|
$ |
646.9 |
|
Adjustments to reconcile net income to net cash flows from operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
291.7 |
|
|
|
277.0 |
|
Asset impairment charges |
|
|
50.9 |
|
|
|
417.7 |
|
Equity method investment earnings less than (in excess) of distributions |
|
|
69.5 |
|
|
|
(69.8) |
|
Stock-settled share-based payments expense |
|
|
18.7 |
|
|
|
68.8 |
|
Contributions to pension plans |
|
|
(9.2) |
|
|
|
(9.6) |
|
Pension expense (benefit) |
|
|
9.3 |
|
|
|
(10.4) |
|
Other items |
|
|
13.9 |
|
|
|
(0.9) |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
|
25.5 |
|
|
|
(96.7) |
|
Inventories |
|
|
73.3 |
|
|
|
(340.4) |
|
Deferred income taxes and income taxes payable, net |
|
|
43.1 |
|
|
|
(58.8) |
|
Prepaid expenses and other current assets |
|
|
(31.3) |
|
|
|
2.4 |
|
Accounts and other payables |
|
|
(36.5) |
|
|
|
(157.9) |
|
Accrued payroll |
|
|
4.6 |
|
|
|
7.4 |
|
Other accrued liabilities |
|
|
76.2 |
|
|
|
71.8 |
|
Litigation accruals |
|
|
16.7 |
|
|
|
(18.6) |
|
Deferred employer payroll taxes |
|
|
— |
|
|
|
(25.5) |
|
Net cash flows from operating activities |
|
|
1,531.3 |
|
|
|
703.4 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Additions to property, plant and equipment |
|
|
(309.6) |
|
|
|
(267.4) |
|
Sale of property, plant and equipment |
|
|
0.6 |
|
|
|
3.1 |
|
Purchase of marketable securities |
|
|
(8.2) |
|
|
|
(3.4) |
|
Sale of marketable securities |
|
|
8.2 |
|
|
|
3.4 |
|
Proceeds from insurance recoveries |
|
|
11.9 |
|
|
|
— |
|
Other items |
|
|
1.5 |
|
|
|
4.1 |
|
Net cash flows from investing activities |
|
|
(295.6) |
|
|
|
(260.2) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Issuances of short-term borrowings, maturities greater than 90 days |
|
|
134.5 |
|
|
|
239.5 |
|
Repayment of short-term borrowings, maturities greater than 90 days |
|
|
(146.6) |
|
|
|
(259.8) |
|
Net (repayment) issuance of other short-term borrowings, maturities less than or equal to |
|
|
(461.7) |
|
|
|
388.2 |
|
Issuance of long-term debt |
|
|
500.0 |
|
|
|
500.0 |
|
Repayment of long-term debt |
|
|
(766.8) |
|
|
|
(708.0) |
|
Debt issuance costs |
|
|
(3.3) |
|
|
|
(4.1) |
|
Repurchase of |
|
|
— |
|
|
|
(150.0) |
|
Cash dividends paid |
|
|
(492.0) |
|
|
|
(466.4) |
|
Exercise of stock options and issuance of other stock awards, including tax withholdings |
|
|
(13.8) |
|
|
|
0.9 |
|
Other items |
|
|
(0.6) |
|
|
|
5.2 |
|
Net cash flows from financing activities |
|
|
(1,250.3) |
|
|
|
(454.5) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
— |
|
|
|
(0.8) |
|
Net change in cash and cash equivalents, including cash balances classified as assets held for |
|
|
(14.6) |
|
|
|
(12.1) |
|
Less: Net change in cash balances classified as assets held for sale |
|
|
0.2 |
|
|
|
— |
|
Net change in cash and cash equivalents |
|
|
(14.8) |
|
|
|
(12.1) |
|
Cash and cash equivalents at beginning of period |
|
|
93.3 |
|
|
|
82.2 |
|
Cash and cash equivalents at end of period |
|
$ |
78.5 |
|
|
$ |
70.1 |
|
Reconciliation of Q3 FY24 QTD and YTD Organic (in millions)
|
||||||||||||||||||||
|
||||||||||||||||||||
Q3 FY24 |
|
Grocery |
|
|
Refrigerated |
|
|
International |
|
|
Foodservice |
|
|
Total |
|
|||||
|
|
$ |
1,286.0 |
|
|
$ |
1,202.4 |
|
|
$ |
271.7 |
|
|
$ |
272.8 |
|
|
$ |
3,032.9 |
|
Impact of foreign exchange |
|
|
— |
|
|
|
— |
|
|
|
(9.4) |
|
|
|
— |
|
|
|
(9.4) |
|
Organic |
|
$ |
1,286.0 |
|
|
$ |
1,202.4 |
|
|
$ |
262.3 |
|
|
$ |
272.8 |
|
|
$ |
3,023.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - |
|
|
3.4 |
% |
|
|
(8.1) |
% |
|
|
4.6 |
% |
|
|
(1.0) |
% |
|
|
(1.7) |
% |
Impact of foreign exchange (pp) |
|
|
— |
|
|
|
— |
|
|
|
(3.6) |
|
|
|
— |
|
|
|
(0.3) |
|
Organic |
|
|
3.4 |
% |
|
|
(8.1) |
% |
|
|
1.0 |
% |
|
|
(1.0) |
% |
|
|
(2.0) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Organic) |
|
|
(0.8) |
% |
|
|
(3.3) |
% |
|
|
2.7 |
% |
|
|
(4.8) |
% |
|
|
(1.8) |
% |
Price/Mix |
|
|
4.2 |
% |
|
|
(4.8) |
% |
|
|
(1.7) |
% |
|
|
3.8 |
% |
|
|
(0.2) |
% |
Q3 FY23 |
|
Grocery & |
|
|
Refrigerated |
|
|
International |
|
|
Foodservice |
|
|
Total Conagra |
|
|||||
|
|
$ |
1,243.7 |
|
|
$ |
1,307.7 |
|
|
$ |
259.7 |
|
|
$ |
275.4 |
|
|
$ |
3,086.5 |
|
Net sales from divested businesses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Organic |
|
$ |
1,243.7 |
|
|
$ |
1,307.7 |
|
|
$ |
259.7 |
|
|
$ |
275.4 |
|
|
$ |
3,086.5 |
|
Q3 FY24 YTD |
|
Grocery & |
|
|
Refrigerated |
|
|
International |
|
|
Foodservice |
|
|
Total |
|
|||||
|
|
$ |
3,784.0 |
|
|
$ |
3,692.5 |
|
|
$ |
811.5 |
|
|
$ |
857.0 |
|
|
$ |
9,145.0 |
|
Impact of foreign exchange |
|
|
— |
|
|
|
— |
|
|
|
(23.3) |
|
|
|
— |
|
|
|
(23.3) |
|
Organic |
|
$ |
3,784.0 |
|
|
$ |
3,692.5 |
|
|
$ |
788.2 |
|
|
$ |
857.0 |
|
|
$ |
9,121.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - |
|
|
0.1 |
% |
|
|
(6.2) |
% |
|
|
7.9 |
% |
|
|
2.9 |
% |
|
|
(1.7) |
% |
Impact of foreign exchange (pp) |
|
|
— |
|
|
|
— |
|
|
|
(3.1) |
|
|
|
— |
|
|
|
(0.3) |
|
Organic |
|
|
0.1 |
% |
|
|
(6.2) |
% |
|
|
4.8 |
% |
|
|
2.9 |
% |
|
|
(2.0) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Organic) |
|
|
(3.0) |
% |
|
|
(5.6) |
% |
|
|
2.1 |
% |
|
|
(4.1) |
% |
|
|
(3.7) |
% |
Price/Mix |
|
|
3.1 |
% |
|
|
(0.6) |
% |
|
|
2.7 |
% |
|
|
7.0 |
% |
|
|
1.7 |
% |
Q3 FY23 YTD |
|
Grocery & |
|
|
Refrigerated |
|
|
International |
|
|
Foodservice |
|
|
Total |
|
|||||
|
|
$ |
3,781.9 |
|
|
$ |
3,936.8 |
|
|
$ |
751.9 |
|
|
$ |
833.1 |
|
|
$ |
9,303.7 |
|
Net sales from divested businesses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Organic |
|
$ |
3,781.9 |
|
|
$ |
3,936.8 |
|
|
$ |
751.9 |
|
|
$ |
833.1 |
|
|
$ |
9,303.7 |
|
Reconciliation of Q3 FY24 Adj. Operating Profit by Segment - YOY Change (in millions) |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Q3 FY24 |
|
Grocery & |
|
|
Refrigerated |
|
|
International |
|
|
Foodservice |
|
|
Corporate |
|
|
Total |
|
||||||
Operating Profit |
|
$ |
299.3 |
|
|
$ |
201.5 |
|
|
$ |
42.2 |
|
|
$ |
35.4 |
|
|
$ |
(107.0) |
|
|
$ |
471.4 |
|
Restructuring plans |
|
|
0.2 |
|
|
|
0.5 |
|
|
|
1.1 |
|
|
|
— |
|
|
|
(0.1) |
|
|
|
1.7 |
|
Legal matters |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17.9 |
|
|
|
17.9 |
|
Fire related costs |
|
|
— |
|
|
|
0.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.6 |
|
Corporate hedging derivative losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6.8 |
|
|
|
6.8 |
|
Adjusted Operating Profit |
|
$ |
299.5 |
|
|
$ |
202.6 |
|
|
$ |
43.3 |
|
|
$ |
35.4 |
|
|
$ |
(82.4) |
|
|
$ |
498.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit Margin |
|
|
23.3 |
% |
|
|
16.8 |
% |
|
|
15.6 |
% |
|
|
13.0 |
% |
|
|
|
|
|
|
15.5 |
% |
Adjusted Operating Profit Margin |
|
|
23.3 |
% |
|
|
16.9 |
% |
|
|
15.9 |
% |
|
|
13.0 |
% |
|
|
|
|
|
|
16.4 |
% |
Year-over-year % change - Operating |
|
|
16.7 |
% |
|
|
(23.6) |
% |
|
|
13.9 |
% |
|
|
48.7 |
% |
|
|
17.6 |
% |
|
|
(3.8) |
% |
Year-over year % change - Adjusted |
|
|
16.5 |
% |
|
|
(25.2) |
% |
|
|
16.4 |
% |
|
|
40.6 |
% |
|
|
21.2 |
% |
|
|
(4.6) |
% |
Year-over-year bps change - Operating |
|
265 bps |
|
|
(340) bps |
|
|
126 bps |
|
|
434 bps |
|
|
|
|
|
|
(33) bps |
|
|||||
Year-over-year bps change - Adjusted |
|
261 bps |
|
|
(385) bps |
|
|
161 bps |
|
|
383 bps |
|
|
|
|
|
|
(49) bps |
|
Q3 FY23 |
|
Grocery & |
|
|
Refrigerated |
|
|
International |
|
|
Foodservice |
|
|
Corporate |
|
|
Total |
|
||||||
Operating Profit |
|
$ |
256.4 |
|
|
$ |
263.6 |
|
|
$ |
37.1 |
|
|
$ |
23.8 |
|
|
$ |
(90.9) |
|
|
$ |
490.0 |
|
Restructuring plans |
|
|
0.3 |
|
|
|
1.9 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.2 |
|
|
|
2.5 |
|
Acquisitions and divestitures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Fire related costs |
|
|
— |
|
|
|
5.2 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
6.6 |
|
Municipal water break costs |
|
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
Corporate hedging derivative losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
22.7 |
|
|
|
22.7 |
|
Adjusted Operating Profit |
|
$ |
257.0 |
|
|
$ |
270.7 |
|
|
$ |
37.2 |
|
|
$ |
25.2 |
|
|
$ |
(67.8) |
|
|
$ |
522.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit Margin |
|
|
20.6 |
% |
|
|
20.2 |
% |
|
|
14.3 |
% |
|
|
8.6 |
% |
|
|
|
|
|
|
15.9 |
% |
Adjusted Operating Profit Margin |
|
|
20.7 |
% |
|
|
20.7 |
% |
|
|
14.3 |
% |
|
|
9.1 |
% |
|
|
|
|
|
|
16.9 |
% |
Reconciliation of Q3 FY24 YTD Adj. Operating Profit by Segment - YOY Change (in millions) |
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Q3 FY24 YTD |
|
Grocery & |
|
|
Refrigerated |
|
|
International |
|
|
Foodservice |
|
|
Corporate |
|
|
Total |
|
||||||
Operating Profit |
|
$ |
837.2 |
|
|
$ |
620.9 |
|
|
$ |
71.8 |
|
|
$ |
117.5 |
|
|
$ |
(238.5) |
|
|
$ |
1,408.9 |
|
Restructuring plans |
|
|
7.7 |
|
|
|
1.6 |
|
|
|
20.2 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
29.6 |
|
Impairment of business held for sale |
|
|
— |
|
|
|
— |
|
|
|
34.2 |
|
|
|
— |
|
|
|
— |
|
|
|
34.2 |
|
Acquisitions and divestitures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
Legal matters |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31.9 |
|
|
|
31.9 |
|
Fire related costs (benefit) |
|
|
— |
|
|
|
3.7 |
|
|
|
— |
|
|
|
(5.9) |
|
|
|
— |
|
|
|
(2.2) |
|
Corporate hedging derivative losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9.6) |
|
|
|
(9.6) |
|
Adjusted Operating Profit |
|
$ |
844.9 |
|
|
$ |
626.2 |
|
|
$ |
126.2 |
|
|
$ |
111.6 |
|
|
$ |
(215.9) |
|
|
$ |
1,493.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit Margin |
|
|
22.1 |
% |
|
|
16.8 |
% |
|
|
8.9 |
% |
|
|
13.7 |
% |
|
|
|
|
|
|
15.4 |
% |
Adjusted Operating Profit Margin |
|
|
22.3 |
% |
|
|
17.0 |
% |
|
|
15.6 |
% |
|
|
13.0 |
% |
|
|
|
|
|
|
16.3 |
% |
Year-over-year % change - Operating |
|
|
(1.2) |
% |
|
|
108.6 |
% |
|
|
(28.8) |
% |
|
|
119.6 |
% |
|
|
(15.1) |
% |
|
|
38.4 |
% |
Year-over year % change - Adjusted |
|
|
(0.8) |
% |
|
|
(11.2) |
% |
|
|
25.2 |
% |
|
|
48.0 |
% |
|
|
(13.7) |
% |
|
|
0.7 |
% |
Year-over-year bps change - Operating |
|
(28) bps |
|
|
|
926 bps |
|
|
(457) bps |
|
|
729 bps |
|
|
|
|
|
|
|
446 bps |
|
|||
Year-over-year bps change - Adjusted |
|
(19) bps |
|
|
(96) bps |
|
|
214 bps |
|
|
397 bps |
|
|
|
|
|
|
38 bps |
|
Q3 FY23 YTD |
|
Grocery & |
|
|
Refrigerated |
|
|
International |
|
|
Foodservice |
|
|
Corporate |
|
|
Total |
|
||||||
Operating Profit |
|
$ |
847.2 |
|
|
$ |
297.6 |
|
|
$ |
100.9 |
|
|
$ |
53.5 |
|
|
$ |
(280.9) |
|
|
$ |
1,018.3 |
|
Restructuring plans |
|
|
0.5 |
|
|
|
3.3 |
|
|
|
(0.1) |
|
|
|
— |
|
|
|
5.5 |
|
|
|
9.2 |
|
Impairment of businesses held for sale |
|
|
0.5 |
|
|
|
5.7 |
|
|
|
— |
|
|
|
20.5 |
|
|
|
— |
|
|
|
26.7 |
|
Acquisitions and divestitures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
|
— |
|
|
|
385.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
385.7 |
|
Fire related costs |
|
|
— |
|
|
|
13.1 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
|
|
14.5 |
|
Municipal water break costs |
|
|
3.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.5 |
|
Corporate hedging derivative losses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24.6 |
|
|
|
24.6 |
|
Adjusted Operating Profit |
|
$ |
851.7 |
|
|
$ |
705.4 |
|
|
$ |
100.8 |
|
|
$ |
75.4 |
|
|
$ |
(250.0) |
|
|
$ |
1,483.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit Margin |
|
|
22.4 |
% |
|
|
7.6 |
% |
|
|
13.4 |
% |
|
|
6.4 |
% |
|
|
|
|
|
|
10.9 |
% |
Adjusted Operating Profit Margin |
|
|
22.5 |
% |
|
|
17.9 |
% |
|
|
13.4 |
% |
|
|
9.1 |
% |
|
|
|
|
|
|
15.9 |
% |
Reconciliation of Q3 FY24 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, and Adj. EPS - YOY Change (in millions) |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Q3 FY24 |
|
Gross |
|
|
Selling, |
|
|
Operating |
|
|
Income |
|
|
Income tax |
|
|
Income tax |
|
|
Net income |
|
|
Diluted EPS |
|
||||||||
Reported |
|
$ |
858.8 |
|
|
$ |
387.4 |
|
|
$ |
471.4 |
|
|
$ |
363.5 |
|
|
$ |
95.9 |
|
|
|
23.7 |
% |
|
$ |
308.6 |
|
|
$ |
0.64 |
|
% of |
|
|
28.3 |
% |
|
|
12.8 |
% |
|
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring plans |
|
|
1.1 |
|
|
|
0.6 |
|
|
|
1.7 |
|
|
|
1.7 |
|
|
|
0.5 |
|
|
|
|
|
|
|
1.2 |
|
|
|
— |
|
Corporate hedging derivative |
|
|
6.8 |
|
|
|
— |
|
|
|
6.8 |
|
|
|
6.8 |
|
|
|
1.7 |
|
|
|
|
|
|
|
5.1 |
|
|
|
0.01 |
|
Advertising and promotion |
|
|
— |
|
|
|
85.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Fire related cost (benefit) |
|
|
2.8 |
|
|
|
(2.2) |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
0.2 |
|
|
|
|
|
|
|
0.4 |
|
|
|
— |
|
Legal matters |
|
|
— |
|
|
|
17.9 |
|
|
|
17.9 |
|
|
|
17.9 |
|
|
|
4.3 |
|
|
|
|
|
|
|
13.6 |
|
|
|
0.03 |
|
Rounding |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
0.01 |
|
Adjusted |
|
$ |
869.5 |
|
|
$ |
285.5 |
|
|
$ |
498.4 |
|
|
$ |
390.5 |
|
|
$ |
102.6 |
|
|
|
23.8 |
% |
|
$ |
328.9 |
|
|
$ |
0.69 |
|
% of |
|
|
28.7 |
% |
|
|
9.4 |
% |
|
|
16.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of net sales |
|
|
114 bps |
|
|
|
147 bps |
|
|
|
(33) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of net sales |
|
|
52 bps |
|
|
|
80 bps |
|
|
|
(49) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - |
|
|
2.4 |
% |
|
|
11.0 |
% |
|
|
(3.8) |
% |
|
|
(7.2) |
% |
|
|
(4.2) |
% |
|
|
|
|
|
|
(9.7) |
% |
|
|
(9.9) |
% |
Year-over-year change - |
|
|
0.1 |
% |
|
|
7.4 |
% |
|
|
(4.6) |
% |
|
|
(7.9) |
% |
|
|
(5.1) |
% |
|
|
|
|
|
|
(10.1) |
% |
|
|
(9.2) |
% |
Q3 FY23 |
|
Gross |
|
|
Selling, |
|
|
Operating |
|
|
Income |
|
|
Income tax |
|
|
Income tax |
|
|
Net income |
|
|
Diluted EPS |
|
||||||||
Reported |
|
$ |
838.8 |
|
|
$ |
348.8 |
|
|
$ |
490.0 |
|
|
$ |
391.8 |
|
|
$ |
100.1 |
|
|
|
22.6 |
% |
|
$ |
341.7 |
|
|
$ |
0.71 |
|
% of |
|
|
27.2 |
% |
|
|
11.3 |
% |
|
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring plans |
|
|
0.5 |
|
|
|
2.0 |
|
|
|
2.5 |
|
|
|
2.5 |
|
|
|
0.6 |
|
|
|
|
|
|
|
1.9 |
|
|
|
— |
|
Acquisitions and divestitures |
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.1 |
|
|
|
|
|
|
|
0.1 |
|
|
|
— |
|
Corporate hedging derivative |
|
|
22.7 |
|
|
|
— |
|
|
|
22.7 |
|
|
|
22.7 |
|
|
|
5.6 |
|
|
|
|
|
|
|
17.1 |
|
|
|
0.04 |
|
Advertising and promotion |
|
|
— |
|
|
|
80.5 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Fire related costs |
|
|
6.4 |
|
|
|
0.2 |
|
|
|
6.6 |
|
|
|
6.6 |
|
|
|
1.7 |
|
|
|
|
|
|
|
4.9 |
|
|
|
0.01 |
|
Municipal water break costs |
|
|
0.3 |
|
|
|
— |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
— |
|
|
|
|
|
|
|
0.3 |
|
|
|
— |
|
Adjusted |
|
$ |
868.7 |
|
|
$ |
265.9 |
|
|
$ |
522.3 |
|
|
$ |
424.1 |
|
|
$ |
108.1 |
|
|
|
22.8 |
% |
|
$ |
366.0 |
|
|
$ |
0.76 |
|
% of |
|
|
28.1 |
% |
|
|
8.6 |
% |
|
|
16.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (income) expense. |
2 Advertising and promotion expense ( |
Reconciliation of Q3 FY24 YTD Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, and Adj. EPS - YOY Change (in millions) |
||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Q3 FY24 YTD |
|
Gross |
|
|
Selling, |
|
|
Operating |
|
|
Income |
|
|
Income tax |
|
|
Income tax |
|
|
Net income |
|
|
Diluted EPS |
|
||||||||
Reported |
|
$ |
2,528.5 |
|
|
$ |
1,119.6 |
|
|
$ |
1,408.9 |
|
|
$ |
1,081.0 |
|
|
$ |
297.1 |
|
|
|
24.5 |
% |
|
$ |
914.5 |
|
|
$ |
1.91 |
|
% of |
|
|
27.6 |
% |
|
|
12.2 |
% |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring plans |
|
|
8.2 |
|
|
|
21.4 |
|
|
|
29.6 |
|
|
|
29.6 |
|
|
|
7.6 |
|
|
|
|
|
|
|
22.0 |
|
|
|
0.05 |
|
Acquisitions and divestitures |
|
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
|
|
|
|
0.2 |
|
|
|
— |
|
Corporate hedging derivative |
|
|
(9.6) |
|
|
|
— |
|
|
|
(9.6) |
|
|
|
(9.6) |
|
|
|
(2.5) |
|
|
|
|
|
|
|
(7.1) |
|
|
|
(0.01) |
|
Advertising and promotion |
|
|
— |
|
|
|
216.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Fire related costs (benefit) |
|
|
5.9 |
|
|
|
(8.1) |
|
|
|
(2.2) |
|
|
|
(2.2) |
|
|
|
(0.5) |
|
|
|
|
|
|
|
(1.7) |
|
|
|
— |
|
Impairment of business held |
|
|
— |
|
|
|
34.2 |
|
|
|
34.2 |
|
|
|
34.2 |
|
|
|
(0.1) |
|
|
|
|
|
|
|
34.3 |
|
|
|
0.07 |
|
Legal matters |
|
|
— |
|
|
|
31.9 |
|
|
|
31.9 |
|
|
|
31.9 |
|
|
|
7.9 |
|
|
|
|
|
|
|
24.0 |
|
|
|
0.05 |
|
Rounding |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
(0.01) |
|
Adjusted |
|
$ |
2,533.0 |
|
|
$ |
823.2 |
|
|
$ |
1,493.0 |
|
|
$ |
1,165.1 |
|
|
$ |
309.5 |
|
|
|
23.9 |
% |
|
$ |
986.2 |
|
|
$ |
2.06 |
|
% of |
|
|
27.7 |
% |
|
|
9.0 |
% |
|
|
16.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year % of net sales |
|
98 bps |
|
|
(348) bps |
|
|
|
446 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Year-over-year % of net sales |
|
57 bps |
|
|
19 bps |
|
|
38 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - |
|
|
1.9 |
% |
|
|
(23.5) |
% |
|
|
38.4 |
% |
|
|
47.1 |
% |
|
|
25.4 |
% |
|
|
|
|
|
|
41.5 |
% |
|
|
42.5 |
% |
Year-over-year change - |
|
|
0.4 |
% |
|
|
0.4 |
% |
|
|
0.7 |
% |
|
|
(2.9) |
% |
|
|
(1.9) |
% |
|
|
|
|
|
|
(4.5) |
% |
|
|
(4.2) |
% |
Q3 FY23 YTD |
|
Gross |
|
|
Selling, |
|
|
Operating |
|
|
Income |
|
|
Income tax |
|
|
Income tax |
|
|
Net income |
|
|
Diluted EPS |
|
||||||||
Reported |
|
$ |
2,481.4 |
|
|
$ |
1,463.1 |
|
|
$ |
1,018.3 |
|
|
$ |
734.9 |
|
|
$ |
237.0 |
|
|
|
26.8 |
% |
|
$ |
646.1 |
|
|
$ |
1.34 |
|
% of |
|
|
26.7 |
% |
|
|
15.7 |
% |
|
|
10.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring plans |
|
|
0.8 |
|
|
|
8.4 |
|
|
|
9.2 |
|
|
|
9.2 |
|
|
|
2.3 |
|
|
|
|
|
|
|
6.9 |
|
|
|
0.01 |
|
Acquisitions and divestitures |
|
|
— |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.2 |
|
|
|
|
|
|
|
0.6 |
|
|
|
— |
|
Corporate hedging derivative |
|
|
24.6 |
|
|
|
— |
|
|
|
24.6 |
|
|
|
24.6 |
|
|
|
6.1 |
|
|
|
|
|
|
|
18.5 |
|
|
|
0.04 |
|
Advertising and promotion |
|
|
— |
|
|
|
221.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
— |
|
Fire related costs |
|
|
13.8 |
|
|
|
0.7 |
|
|
|
14.5 |
|
|
|
14.5 |
|
|
|
3.6 |
|
|
|
|
|
|
|
10.9 |
|
|
|
0.02 |
|
Municipal water break costs |
|
|
3.5 |
|
|
|
— |
|
|
|
3.5 |
|
|
|
3.5 |
|
|
|
0.8 |
|
|
|
|
|
|
|
2.7 |
|
|
|
0.01 |
|
Impairment of businesses held |
|
|
— |
|
|
|
26.7 |
|
|
|
26.7 |
|
|
|
26.7 |
|
|
|
6.6 |
|
|
|
|
|
|
|
20.1 |
|
|
|
0.04 |
|
|
|
|
— |
|
|
|
385.7 |
|
|
|
385.7 |
|
|
|
385.7 |
|
|
|
58.9 |
|
|
|
|
|
|
|
326.8 |
|
|
|
0.68 |
|
Rounding |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
0.01 |
|
Adjusted |
|
$ |
2,524.1 |
|
|
$ |
819.6 |
|
|
$ |
1,483.3 |
|
|
$ |
1,199.9 |
|
|
$ |
315.5 |
|
|
|
23.4 |
% |
|
$ |
1,032.6 |
|
|
$ |
2.15 |
|
% of |
|
|
27.1 |
% |
|
|
8.8 |
% |
|
|
15.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (income) expense. |
2 Advertising and promotion expense ( |
Reconciliation of YTD Free Cash Flow, Net Debt, and Net Leverage Ratio (in millions) |
||||||||||||
|
||||||||||||
|
|
|
|
|
|
|
|
% Change |
|
|||
Net cash flows from operating activities |
|
$ |
1,531.3 |
|
|
$ |
703.4 |
|
|
|
117.7 |
% |
Additions to property, plant and equipment |
|
|
(309.6) |
|
|
|
(267.4) |
|
|
|
15.8 |
% |
Free cash flow |
|
$ |
1,221.7 |
|
|
$ |
436.0 |
|
|
|
180.2 |
% |
|
|
Q3 FY24 |
|
|
Q3 FY23 |
|
||
Notes payable |
|
$ |
166.3 |
|
|
$ |
653.7 |
|
Current installments of long-term debt |
|
|
1,019.2 |
|
|
|
516.6 |
|
Senior long-term debt, excluding current installments |
|
|
7,491.8 |
|
|
|
8,081.2 |
|
Total Debt |
|
$ |
8,677.3 |
|
|
$ |
9,251.5 |
|
Less: Cash |
|
|
78.5 |
|
|
|
70.1 |
|
Net Debt |
|
$ |
8,598.8 |
|
|
$ |
9,181.4 |
|
|
|
Q3 FY24 |
|
|
Net Debt 1 |
|
$ |
8,598.8 |
|
|
|
|
|
|
Net income attributable to |
|
$ |
952.0 |
|
Add Back: Income tax expense |
|
|
278.8 |
|
Income tax expense attributable to noncontrolling interests |
|
|
(0.3) |
|
Interest expense, net |
|
|
433.8 |
|
Depreciation |
|
|
330.9 |
|
Amortization |
|
|
53.7 |
|
Earnings before interest, taxes, depreciation, and amortization (EBITDA) |
|
$ |
2,048.9 |
|
Restructuring plans 2 |
|
|
26.8 |
|
Acquisitions and divestitures |
|
|
7.8 |
|
Corporate hedging derivative losses (gains) |
|
|
2.9 |
|
|
|
|
343.6 |
|
Legal matters |
|
|
35.7 |
|
Fire related benefit |
|
|
(3.3) |
|
Third-party vendor cybersecurity incident |
|
|
4.4 |
|
Impairment of business held for sale |
|
|
34.2 |
|
Adjusted EBITDA |
|
$ |
2,501.0 |
|
|
|
|
|
|
Net Debt to Adjusted EBITDA 4 |
|
|
3.44 |
|
1 As of |
2 Excludes comparability items related to depreciation. |
3 Excludes comparability items attributable to noncontrolling interests. |
4 The company defines its net debt leverage ratio as net debt divided by adjusted EBITDA for the trailing twelve month period. |
Reconciliation of Q3 FY24 QTD and YTD EBITDA - YOY Change (in millions) |
||||||||||||
|
||||||||||||
|
|
Q3 FY24 |
|
|
Q3 FY23 |
|
|
% Change |
|
|||
Net income attributable to |
|
$ |
308.6 |
|
|
$ |
341.7 |
|
|
|
(9.7) |
% |
Add Back: Income tax expense |
|
|
95.9 |
|
|
|
100.1 |
|
|
|
|
|
Income tax expense attributable to noncontrolling interests |
|
|
— |
|
|
|
(0.2) |
|
|
|
|
|
Interest expense, net |
|
|
106.5 |
|
|
|
104.2 |
|
|
|
|
|
Depreciation |
|
|
82.4 |
|
|
|
77.7 |
|
|
|
|
|
Amortization |
|
|
13.4 |
|
|
|
13.8 |
|
|
|
|
|
Earnings before interest, taxes, depreciation, and amortization |
|
$ |
606.8 |
|
|
$ |
637.3 |
|
|
|
(4.8) |
% |
Restructuring plans 1 |
|
|
1.5 |
|
|
|
2.1 |
|
|
|
|
|
Acquisitions and divestitures |
|
|
— |
|
|
|
0.2 |
|
|
|
|
|
Corporate hedging derivative losses (gains) |
|
|
6.8 |
|
|
|
22.7 |
|
|
|
|
|
Fire related costs |
|
|
0.6 |
|
|
|
6.6 |
|
|
|
|
|
Municipal water break costs |
|
|
— |
|
|
|
0.3 |
|
|
|
|
|
Legal matters |
|
|
17.9 |
|
|
|
— |
|
|
|
|
|
Adjusted Earnings before interest, taxes, depreciation, and |
|
$ |
633.6 |
|
|
$ |
669.2 |
|
|
|
(5.3) |
% |
|
|
Q3 FY24 YTD |
|
|
Q3 FY23 YTD |
|
|
% Change |
|
|||
Net income attributable to |
|
$ |
914.5 |
|
|
$ |
646.1 |
|
|
|
41.5 |
% |
Add Back: Income tax expense |
|
|
297.1 |
|
|
|
237.0 |
|
|
|
|
|
Income tax expense attributable to noncontrolling interests |
|
|
(0.1) |
|
|
|
(0.3) |
|
|
|
|
|
Interest expense, net |
|
|
325.8 |
|
|
|
301.6 |
|
|
|
|
|
Depreciation |
|
|
251.5 |
|
|
|
233.7 |
|
|
|
|
|
Amortization |
|
|
40.2 |
|
|
|
43.3 |
|
|
|
|
|
Earnings before interest, taxes, depreciation, and amortization |
|
$ |
1,829.0 |
|
|
$ |
1,461.4 |
|
|
|
25.2 |
% |
Restructuring plans 1 |
|
|
23.3 |
|
|
|
8.8 |
|
|
|
|
|
Acquisitions and divestitures |
|
|
0.2 |
|
|
|
0.8 |
|
|
|
|
|
Corporate hedging derivative losses (gains) |
|
|
(9.6) |
|
|
|
24.6 |
|
|
|
|
|
Fire related costs (benefit) |
|
|
(2.2) |
|
|
|
14.5 |
|
|
|
|
|
Municipal water break costs |
|
|
— |
|
|
|
3.5 |
|
|
|
|
|
Impairment of businesses held for sale |
|
|
34.2 |
|
|
|
26.7 |
|
|
|
|
|
|
|
|
— |
|
|
|
385.7 |
|
|
|
|
|
Legal matters |
|
|
31.9 |
|
|
|
— |
|
|
|
|
|
Adjusted Earnings before interest, taxes, depreciation, and |
|
$ |
1,906.8 |
|
|
$ |
1,926.0 |
|
|
|
(1.0) |
% |
1 Excludes comparability items related to depreciation. |
For more information, please contact:
MEDIA:
312-549-5257
Michael.Cummins@conagra.com
INVESTORS:
312-549-5738
IR@conagra.com
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