The following is a summary of the Conagra Brands, Inc. (CAG) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Conagra Brands reported a decline in organic net sales by 2.1% to $12 billion for fiscal 2024, with adjusted operating margin expansion by 34 basis points and adjusted EPS of $2.67.

• Despite the overall sales decline, the company saw adjusted gross profit and operating profit margin improvements, fueled by strong supply chain productivity, which helped mitigate cost inflation.

• The company concluded the fiscal year with a net leverage ratio of 3.37 times, continuing their trend to reduce debt and reported a robust free cash flow improvement by approximately $1 billion over the prior year.

Business Progress:

• Conagra Brands experienced strengthened share and sequential volume improvement in their domestic retail business, notably in the frozen and snack sectors.

• They have made significant investments across various product lines including Birds Eye frozen vegetables and Duke's, David, and Angie's BOOMCHICKAPOP snack brands, resulting in successful volume gains.

• The company is poised to continue investments in fiscal 2025 to stimulate broader volume recovery and maintain their competitive edge in the market.

Opportunities:

• Continued strategy to enhance consumer engagement with ongoing strategic investments in high-performing domains such as snacks and frozen food segments shows promise for further volume improvements.

• Expansion of the Birds Eye brand and innovative releases like Wendy's Chili and Healthy Choice modern dinners are expected to meet evolving consumer tastes and demands, potentially expanding market share.

Risks:

• Conagra anticipates that the consumer environment will remain challenging into fiscal 2025, impacting sales growth.

• Expected net inflation of 3% in fiscal 2025 may pressurize margins, despite ongoing cost savings and productivity measures.

More details: Conagra Brands IR

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