Conagra Brands, Inc. (NYSE CAG) Fourth Quarter Financial Results – FY 2025

# Conagra Brands, Inc. (NYSE: CAG) Fourth Quarter Financial Results – FY 2025

**Release Date:** July 10, 2025

Conagra Brands, Inc. has reported its results for the fourth quarter and full year of fiscal year 2025, which ended on May 25, 2025. Below is a summary of the key metrics and highlights from the release.

### Fourth Quarter Highlights
– **Net Sales:**
– Reported net sales decreased **4.3%** to **$2.8 billion**.
– Organic net sales decreased **3.5%**.

– **Operating Margin:**
– Reported operating margin at **11.5%**.
– Adjusted operating margin declined **1.9%** to **13.8%**.

– **Earnings Per Share (EPS):**
– Diluted EPS was **$0.53**.
– Adjusted EPS decreased **8.2%** to **$0.56**.

### Full Year Fiscal 2025 Highlights
– **Net Sales:**
– Reported net sales decreased **3.6%** to **$11.6 billion**.
– Organic net sales decreased **2.9%**.

– **Operating Margin:**
– Reported operating margin increased **467 basis points** to **11.8%**.
– Adjusted operating margin decreased **188 basis points** to **14.1%**.

– **Earnings Per Share (EPS):**
– Diluted EPS increased **233.3%** to **$2.40**.
– Adjusted EPS decreased **13.9%** to **$2.30**.

### Dividend and Share Repurchase
– Conagra Brands announced a **quarterly dividend** of **$0.35 per share**, which will be paid on **August 28, 2025**, to stockholders of record as of July 30, 2025.

### Key Financial Metrics and Segment Performance
– **Gross Profit:**
– Decreased **12.1%** to **$707 million** in the quarter.
– Adjusted gross profit was **$717 million**, a **10.7%** decrease.

– **Selling, General, and Administrative Expenses (SG&A):**
– SG&A expenses decreased **17.2%** to **$333 million**.
– Adjusted SG&A also decreased **10.8%** to **$333 million**.

– **Interest Expense:**
– Net interest expense was **$102 million**, a **2.8%** reduction from the prior year.

### Segment-Specific Performance in Q4
– **Grocery & Snacks:**
– Net sales decreased **2.1%** to **$1.2 billion** with organic net sales down **3.3%**.

– **Refrigerated & Frozen:**
– Net sales decreased **4.4%** to **$1.1 billion** with organic net sales down **4.4%**.

– **International:**
– Net sales declined **13.8%** to **$230 million**, with organic net sales up **0.8%**.

– **Foodservice:**
– Net sales decreased **4.0%** to **$280 million**, with organic net sales down **4.3%**.

### Other Key Financial Insights
– **Cash Flow:**
– Generated **$1.7 billion** in net cash flows from operating activities, down **16.1%** from the previous year.
– Free cash flow was **$1.3 billion**, a decline of **20.0%**.

– **Debts and Leverage:**
– Ended fiscal 2025 with net debt of **$8.0 billion**, representing a **4.4%** reduction compared to the prior year.

### Guidance for Fiscal 2026
– The company anticipates:
– Organic net sales growth between **(1)% to 1%** compared to fiscal 2025.
– Adjusted operating margin between **11.0% and 11.5%**.
– Adjusted EPS in the range of **$1.70 to $1.85**.

The reported numbers indicate a mixed performance with some areas of growth overshadowed by declines, particularly in sales volumes and organic growth. The guidance for fiscal 2026 reflects a cautious outlook amid ongoing inflation and supply chain challenges.

Here are the requested tables extracted from the press release:

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