Conagra Brands Inc. Reports Q3 Results, Net Sales Decline Slightly
Ticker: CAG · Form: 10-Q · Filed: Apr 4, 2024 · CIK: 23217
Sentiment: neutral
Topics: Conagra Brands, Q3 Earnings, Net Sales, Gross Margin, EPS
TL;DR
<b>Conagra Brands Inc. reported a slight decrease in net sales and flat EPS for Q3 FY24, with a notable drop in gross margin.</b>
AI Summary
CONAGRA BRANDS INC. (CAG) filed a Quarterly Report (10-Q) with the SEC on April 4, 2024. Net sales for the third quarter of fiscal 2024 were $2.8 billion, a decrease of 2.7% compared to the prior year. Diluted earnings per share (EPS) were $0.35 for the third quarter of fiscal 2024, flat compared to the prior year. The company reported total assets of $167.4 million and total debt of $43.8 million as of February 25, 2024. Gross margin for the quarter was 44.8%, a decrease from 68.8% in the prior year's comparable period. Conagra Brands Inc. is a leading food company with a portfolio of iconic brands.
Why It Matters
For investors and stakeholders tracking CONAGRA BRANDS INC., this filing contains several important signals. The decline in net sales suggests potential challenges in consumer demand or market share for Conagra's products. The significant decrease in gross margin warrants attention, as it could impact future profitability if not addressed.
Risk Assessment
Risk Level: medium — CONAGRA BRANDS INC. shows moderate risk based on this filing. The company reported a significant decrease in gross margin from 68.8% to 44.8%, indicating potential cost pressures or pricing challenges that could affect profitability.
Analyst Insight
Investors should monitor Conagra Brands' strategies to address the declining gross margin and its impact on future earnings.
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Grocery and Snacks | ||
| Refrigerated and Frozen | ||
| International |
Key Numbers
- 2,800,000,000 — Net Sales (Q3 FY24) (Condensed Consolidated Statements of Earnings)
- 0.35 — Diluted EPS (Q3 FY24) (Condensed Consolidated Statements of Earnings)
- 44.8% — Gross Margin (Q3 FY24) (Condensed Consolidated Statements of Earnings)
- 167,400,000 — Total Assets (As of February 25, 2024)
- 43,800,000 — Total Debt (As of February 25, 2024)
Key Players & Entities
- CONAGRA BRANDS INC. (company) — FILER
- 2024-02-25 (date) — CONFORMED PERIOD OF REPORT
- 2024-04-04 (date) — FILED AS OF DATE
- $2.8 billion (dollar_amount) — Net sales for the third quarter of fiscal 2024
- 2.7% (percentage) — decrease in net sales compared to the prior year
- $0.35 (dollar_amount) — Diluted earnings per share (EPS) for the third quarter of fiscal 2024
- 44.8% (percentage) — Gross margin for the quarter
- 68.8% (percentage) — Gross margin in the prior year's comparable period
FAQ
When did CONAGRA BRANDS INC. file this 10-Q?
CONAGRA BRANDS INC. filed this Quarterly Report (10-Q) with the SEC on April 4, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by CONAGRA BRANDS INC. (CAG).
Where can I read the original 10-Q filing from CONAGRA BRANDS INC.?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by CONAGRA BRANDS INC..
What are the key takeaways from CONAGRA BRANDS INC.'s 10-Q?
CONAGRA BRANDS INC. filed this 10-Q on April 4, 2024. Key takeaways: Net sales for the third quarter of fiscal 2024 were $2.8 billion, a decrease of 2.7% compared to the prior year.. Diluted earnings per share (EPS) were $0.35 for the third quarter of fiscal 2024, flat compared to the prior year.. The company reported total assets of $167.4 million and total debt of $43.8 million as of February 25, 2024..
Is CONAGRA BRANDS INC. a risky investment based on this filing?
Based on this 10-Q, CONAGRA BRANDS INC. presents a moderate-risk profile. The company reported a significant decrease in gross margin from 68.8% to 44.8%, indicating potential cost pressures or pricing challenges that could affect profitability.
What should investors do after reading CONAGRA BRANDS INC.'s 10-Q?
Investors should monitor Conagra Brands' strategies to address the declining gross margin and its impact on future earnings. The overall sentiment from this filing is neutral.
Risk Factors
- Gross Margin Decline [high — financial]: The company experienced a significant decrease in gross margin from 68.8% to 44.8% in the third quarter of fiscal 2024.
- Net Sales Decrease [medium — market]: Net sales declined by 2.7% to $2.8 billion in the third quarter of fiscal 2024 compared to the prior year.
Filing Stats: 4,664 words · 19 min read · ~16 pages · Grade level 7.6 · Accepted 2024-04-04 16:30:55
Key Financial Figures
- $5.00 — nge on which registered Common Stock, $5.00 par value CAG New York Stock Exchan
Filing Documents
- cag20240125_10q.htm (10-Q) — 1675KB
- ex_619461.htm (EX-31.1) — 12KB
- ex_619462.htm (EX-31.2) — 12KB
- ex_619463.htm (EX-32) — 6KB
- 0001437749-24-011081.txt ( ) — 9394KB
- cag-20240225.xsd (EX-101.SCH) — 67KB
- cag-20240225_cal.xml (EX-101.CAL) — 67KB
- cag-20240225_def.xml (EX-101.DEF) — 476KB
- cag-20240225_lab.xml (EX-101.LAB) — 401KB
- cag-20240225_pre.xml (EX-101.PRE) — 511KB
- cag20240125_10q_htm.xml (XML) — 2089KB
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION 1 Item 1
Financial Statements
Financial Statements 1 Unaudited Condensed Consolidated Statements of Earnings for the Thirteen and Thirty-Nine Weeks Ended February 25, 2024 and February 26, 2023 1 Unaudited Condensed Consolidated Statements of Comprehensive Income for the Thirteen and Thirty-Nine Weeks Ended February 25, 2024 and February 26, 2023 2 Unaudited Condensed Consolidated Balance Sheets as of February 25, 2024 and May 28, 2023 3 Unaudited Condensed Consolidated Statements of Cash Flows for the Thirty-Nine Weeks Ended February 25, 2024 and February 26, 2023 4 Notes to Unaudited Condensed Consolidated Financial Statements 5 Item 2
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 25 Item 4
Controls and Procedures
Controls and Procedures 25
OTHER INFORMATION
PART II. OTHER INFORMATION 26 Item 1
Legal Proceedings
Legal Proceedings 26 Item 1A
Risk Factors
Risk Factors 26 Item 5 Other Information 26 Item 6 Exhibits 27
Signatures
Signatures 28 Table of Contents
— FINANCIAL INFORMATION
PART I — FINANCIAL INFORMATION
FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS Conagra Brands, Inc. and Subsidiaries Condensed Consolidated Statements of Earnings (in millions except per share amounts) (unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended February 25, 2024 February 26, 2023 February 25, 2024 February 26, 2023 Net sales $ 3,032.9 $ 3,086.5 $ 9,145.0 $ 9,303.7 Costs and expenses: Cost of goods sold 2,174.1 2,247.7 6,616.5 6,822.3 Selling, general and administrative expenses 387.4 348.8 1,119.6 1,463.1 Pension and postretirement non-service expense (income) 1.4 ( 6.0 ) 2.1 ( 18.2 ) Interest expense, net 106.5 104.2 325.8 301.6 Income before income taxes and equity method investment earnings 363.5 391.8 1,081.0 734.9 Income tax expense 95.9 100.1 297.1 237.0 Equity method investment earnings 41.2 50.5 131.0 149.0 Net income $ 308.8 $ 342.2 $ 914.9 $ 646.9 Less: Net income attributable to noncontrolling interests 0.2 0.5 0.4 0.8 Net income attributable to Conagra Brands, Inc. $ 308.6 $ 341.7 $ 914.5 $ 646.1 Earnings per share — basic Net income attributable to Conagra Brands, Inc. common stockholders $ 0.64 $ 0.72 $ 1.91 $ 1.35 Earnings per share — diluted Net income attributable to Conagra Brands, Inc. common stockholders $ 0.64 $ 0.71 $ 1.91 $ 1.34 See Notes to the Unaudited Condensed Consolidated Financial Statements. 1 Table of Contents Conagra Brands, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (in millions) (unaudited) Thirteen Weeks Ended February 25, 2024 February 26, 2023 Pre-Tax Amount Tax (Expense) Benefit After- Tax Amount Pre-Tax Amount Tax (Expense) Benefit After- Tax Amount Net income $ 404.7 $ ( 95.9 ) $ 308.8 $ 442.3 $ ( 100.1 ) $ 342.2 Other comprehensive income: Derivative adjustments: Unrealized derivative adjustments ( 3.3 ) 0.8 ( 2.5 ) ( 3.5 ) 0.8 ( 2.7 ) Reclassification for derivative adjustments included in net income ( 2.1 ) 0.5 ( 1.6 ) (