Conagra Brands Reports Mixed Fiscal 2025 Results

Conagra Brands ( (CAG) ) has released its Q4 earnings. Here is a breakdown of the information Conagra Brands presented to its investors.

Conagra Brands, Inc., a leading branded food company in North America, is known for its diverse portfolio of popular food brands including Birds Eye, Duncan Hines, and Healthy Choice. The company operates in the consumer packaged goods industry, focusing on innovation and evolving consumer preferences.

In its latest earnings report for the fourth quarter and full fiscal year 2025, Conagra Brands reported a decrease in net sales and adjusted earnings per share, reflecting challenges such as inflation and supply constraints. Despite these hurdles, the company achieved a significant increase in reported operating margin and net income due to the absence of prior-year impairment charges.

Key financial metrics for the fourth quarter included a 4.3% decrease in net sales, with organic net sales down by 3.5%. The reported operating margin was 11.5%, while adjusted operating margin stood at 13.8%. For the full fiscal year, net sales decreased by 3.6%, and adjusted EPS fell by 13.9% to $2.30. The company also reduced its net debt by 4.4% to $8.0 billion, achieving a net leverage ratio of 3.6x.

Looking ahead to fiscal 2026, Conagra Brands anticipates continued inflationary pressures and macroeconomic uncertainties. The company plans to focus on its high-potential frozen and snacks segments, enhance supply chain resilience, and maintain disciplined cost management. Conagra aims to achieve organic net sales growth between -1% and 1%, with an adjusted operating margin of 11.0% to 11.5% and adjusted EPS ranging from $1.70 to $1.85.

Overall, Conagra Brands remains committed to its long-term value creation strategy, aiming to deliver sustainable growth and stronger margins over time, despite the challenging economic environment.