UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 23, 2019
Conagra Brands, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware | 1-7275 | 47-0248710 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
222 W. Merchandise Mart Plaza, Suite 1300 Chicago, Illinois |
60654 | |||
(Address of principal executive offices) | (Zip Code) |
(312) 549-5000
(Registrants telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Common Stock, $5.00 par value | CAG | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition. |
As previously disclosed, beginning with the first quarter of fiscal 2020, Conagra Brands, Inc. (the Company) no longer reports the Pinnacle Foods Inc. (Pinnacle Foods) business, acquired in October 2018, as a standalone reporting segment. To better reflect how management is now managing the overall integrated business, the business components previously comprising the Pinnacle Foods reporting segment have been allocated to the Companys other four reporting segments.
The Company is furnishing with this Current Report on Form 8-K as Exhibit 99.1 certain historical unaudited financial information that has been recast to reflect this change. The recast historical financial information also reflects (i) the reallocation of an immaterial amount of net sales and operating profit from the Companys Grocery & Snacks reporting segment to the Companys Foodservice reporting segment and (ii) the removal of certain businesses divested in fiscal 2019 (the Wesson oil business and the Gelit pasta business) from historical organic net sales. This recast financial information is provided to ensure comparability and has no impact on the Companys previously reported consolidated statements of operations, comprehensive income (loss), balance sheets, stockholders equity, and cash flows. The information in this Current Report on Form 8-K, including Exhibit 99.1, should be read in conjunction with the Companys Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
The information furnished pursuant to Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to liabilities under that section and shall not be deemed to be incorporated by reference into any document filed under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 | Financial Statements and Exhibits. |
Exhibit |
Description | |
99.1 | Supplemental Historical Financial Information (Unaudited) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CONAGRA BRANDS, INC. | ||
By: | /s/ Colleen Batcheler | |
Name: | Colleen Batcheler | |
Title: | Executive Vice President, General Counsel and Corporate Secretary |
Date: September 23, 2019
Exhibit 99.1
Explanatory Note
Beginning with the first quarter of fiscal 2020, Conagra Brands, Inc. (the Company) no longer reports the Pinnacle Foods Inc. (Pinnacle Foods) business, acquired in October 2018, as a standalone reporting segment. To better reflect how management is now managing the overall integrated business, the business components previously comprising the Pinnacle Foods reporting segment have been allocated to the Companys other four reporting segments.
Set forth below is certain historical unaudited financial information that has been recast to reflect this change. The recast historical financial information also reflects (i) the reallocation of an immaterial amount of net sales and operating profit from the Companys Grocery & Snacks reporting segment to the Companys Foodservice reporting segment and (ii) the removal of certain businesses divested in fiscal 2019 (the Wesson oil business and the Gelit pasta business) from historical organic net sales. This recast historical financial information is provided to ensure comparability and has no impact on the Companys previously reported consolidated statements of operations, comprehensive income (loss), balance sheets, stockholders equity, and cash flows. This information should be read in conjunction with the Companys Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
Note on Non-GAAP Financial Measures
The information below contains certain non-GAAP financial measures, including organic net sales, adjusted operating profit, and adjusted operating margin. Management considers GAAP financial measures as well as such non-GAAP financial information in its evaluation of the Companys financial statements and believes these non-GAAP measures provide useful supplemental information to assess the Companys operating performance and financial position. These measures should be viewed in addition to, and not in lieu of, the Companys operating performance and financial measures as calculated in accordance with GAAP.
1
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Net Sales and Reconciliation of Organic Net Sales to Net Sales
(dollars in millions)
Q1 FY19 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 770.7 | $ | 635.2 | $ | 193.8 | $ | 234.7 | $ | 1,834.4 | ||||||||||
Impact of foreign exchange |
| | 5.9 | | 5.9 | |||||||||||||||
Net sales from acquired businesses |
(24.9 | ) | (10.6 | ) | (1.9 | ) | | (37.4 | ) | |||||||||||
Net sales from divested businesses |
(31.9 | ) | (13.2 | ) | (9.2 | ) | (11.6 | ) | (65.9 | ) | ||||||||||
Net sales from sold Trenton plant |
| | | (2.0 | ) | (2.0 | ) | |||||||||||||
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Organic Net Sales ex Trenton |
$ | 713.9 | $ | 611.4 | $ | 188.6 | $ | 221.1 | $ | 1,735.0 | ||||||||||
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Year-over-year change - Net Sales |
3.3 | % | 3.2 | % | 1.5 | % | (6.7 | )% | 1.7 | % | ||||||||||
Impact of foreign exchange (pp) |
| | 3.2 | | 0.3 | |||||||||||||||
Net sales from acquired businesses (pp) |
(3.3 | ) | (1.8 | ) | (0.9 | ) | | (2.0 | ) | |||||||||||
Net sales from divested businesses (pp) |
0.6 | (0.2 | ) | 3.4 | 1.0 | 0.6 | ||||||||||||||
Net sales from sold Trenton plant (pp) |
| | | 7.0 | 1.0 | |||||||||||||||
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Organic Net Sales ex Trenton Growth |
0.6 | % | 1.2 | % | 7.2 | % | 1.3 | % | 1.6 | % | ||||||||||
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Volume (Organic) |
0.5 | % | (0.1 | )% | 5.1 | % | (3.8 | )% | 0.2 | % | ||||||||||
Price/Mix |
0.1 | % | 1.3 | % | 2.1 | % | 5.1 | % | 1.4 | % | ||||||||||
Q1 FY18 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 745.8 | $ | 615.7 | $ | 190.9 | $ | 251.8 | $ | 1,804.2 | ||||||||||
Net sales from divested businesses |
(36.4 | ) | (11.4 | ) | (15.1 | ) | (13.9 | ) | (76.8 | ) | ||||||||||
Net sales from sold Trenton plant |
| | | (19.6 | ) | (19.6 | ) | |||||||||||||
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Organic Net Sales ex Trenton |
$ | 709.4 | $ | 604.3 | $ | 175.8 | $ | 218.3 | $ | 1,707.8 | ||||||||||
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Q2 FY19 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 1,000.5 | $ | 906.7 | $ | 218.3 | $ | 258.2 | $ | 2,383.7 | ||||||||||
Impact of foreign exchange |
| | 9.1 | | 9.1 | |||||||||||||||
Net sales from acquired businesses |
(117.3 | ) | (144.8 | ) | (11.8 | ) | (12.1 | ) | (286.0 | ) | ||||||||||
Net sales from divested businesses |
(46.1 | ) | (15.5 | ) | (5.7 | ) | (11.4 | ) | (78.7 | ) | ||||||||||
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Organic Net Sales ex Trenton |
$ | 837.1 | $ | 746.4 | $ | 209.9 | $ | 234.7 | $ | 2,028.1 | ||||||||||
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Year-over-year change - Net Sales |
11.2 | % | 19.6 | % | (0.9 | )% | (12.6 | )% | 9.7 | % | ||||||||||
Impact of foreign exchange (pp) |
| | 4.1 | | 0.4 | |||||||||||||||
Net sales from acquired businesses (pp) |
(13.0 | ) | (19.1 | ) | (5.2 | ) | (4.3 | ) | (13.2 | ) | ||||||||||
Net sales from divested businesses (pp) |
0.1 | (0.1 | ) | 5.8 | 0.7 | 0.7 | ||||||||||||||
Net sales from sold Trenton plant (pp) |
| | | 6.1 | 0.9 | |||||||||||||||
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Organic Net Sales ex Trenton Growth |
(1.7 | )% | 0.4 | % | 3.8 | % | (10.1 | )% | (1.5 | )% | ||||||||||
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Volume (Organic) |
(2.2 | )% | 0.3 | % | 0.5 | % | (12.3 | )% | (2.2 | )% | ||||||||||
Price/Mix |
0.5 | % | 0.1 | % | 3.3 | % | 2.2 | % | 0.7 | % | ||||||||||
Q2 FY18 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 899.7 | $ | 758.1 | $ | 220.3 | $ | 295.3 | $ | 2,173.4 | ||||||||||
Net sales from divested businesses |
(48.5 | ) | (14.4 | ) | (18.0 | ) | (14.3 | ) | (95.2 | ) | ||||||||||
Net sales from sold Trenton plant |
| | | (20.2 | ) | (20.2 | ) | |||||||||||||
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Organic Net Sales ex Trenton |
$ | 851.2 | $ | 743.7 | $ | 202.3 | $ | 260.8 | $ | 2,058.0 | ||||||||||
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2
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Net Sales and Reconciliation of Organic Net Sales to Net Sales
(dollars in millions)
Q3 FY19 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 1,129.8 | $ | 1,094.3 | $ | 228.3 | $ | 254.7 | $ | 2,707.1 | ||||||||||
Impact of foreign exchange |
| | 9.3 | | 9.3 | |||||||||||||||
Net sales from acquired businesses |
(267.6 | ) | (389.4 | ) | (30.2 | ) | (31.2 | ) | (718.4 | ) | ||||||||||
Net sales from divested businesses |
(37.9 | ) | (14.3 | ) | (6.3 | ) | (11.2 | ) | (69.7 | ) | ||||||||||
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Organic Net Sales ex Trenton |
$ | 824.3 | $ | 690.6 | $ | 201.1 | $ | 212.3 | $ | 1,928.3 | ||||||||||
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Year-over-year change - Net Sales |
35.1 | % | 58.9 | % | 2.1 | % | 3.3 | % | 35.7 | % | ||||||||||
Impact of foreign exchange (pp) |
| | 4.1 | | 0.5 | |||||||||||||||
Net sales from acquired businesses (pp) |
(31.9 | ) | (56.4 | ) | (13.6 | ) | (12.8 | ) | (36.0 | ) | ||||||||||
Net sales from divested businesses (pp) |
(0.5 | ) | (0.2 | ) | 6.3 | 0.6 | 0.6 | |||||||||||||
Net sales from sold Trenton plant (pp) |
| | | 8.1 | 1.0 | |||||||||||||||
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Organic Net Sales ex Trenton Growth |
2.7 | % | 2.3 | % | (1.1 | )% | (0.8 | )% | 1.8 | % | ||||||||||
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Volume (Organic) |
1.6 | % | 3.2 | % | (2.2 | )% | (6.8 | )% | 0.9 | % | ||||||||||
Price/Mix |
1.1 | % | (0.9 | )% | 1.1 | % | 6.0 | % | 0.9 | % | ||||||||||
Q3 FY18 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 836.0 | $ | 688.5 | $ | 223.4 | $ | 246.6 | $ | 1,994.5 | ||||||||||
Net sales from divested businesses |
(33.8 | ) | (13.0 | ) | (20.2 | ) | (12.7 | ) | (79.7 | ) | ||||||||||
Net sales from sold Trenton plant |
| | | (19.8 | ) | (19.8 | ) | |||||||||||||
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Organic Net Sales ex Trenton |
$ | 802.2 | $ | 675.5 | $ | 203.2 | $ | 214.1 | $ | 1,895.0 | ||||||||||
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Q4 FY19 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 1,022.6 | $ | 1,099.2 | $ | 224.0 | $ | 267.4 | $ | 2,613.2 | ||||||||||
Impact of foreign exchange |
| | 5.9 | | 5.9 | |||||||||||||||
Net sales from acquired businesses |
(278.2 | ) | (412.3 | ) | (30.7 | ) | (35.3 | ) | (756.5 | ) | ||||||||||
Net sales from divested businesses |
| (13.7 | ) | | | (13.7 | ) | |||||||||||||
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Organic Net Sales ex Trenton |
$ | 744.4 | $ | 673.2 | $ | 199.2 | $ | 232.1 | $ | 1,848.9 | ||||||||||
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Year-over-year change - Net Sales |
27.9 | % | 59.1 | % | 7.3 | % | 0.1 | % | 32.9 | % | ||||||||||
Impact of foreign exchange (pp) |
| | 2.8 | | 0.3 | |||||||||||||||
Net sales from acquired businesses (pp) |
(34.8 | ) | (59.7 | ) | (14.7 | ) | (13.4 | ) | (38.5 | ) | ||||||||||
Net sales from divested businesses (pp) |
4.6 | | 10.2 | 4.7 | 3.6 | |||||||||||||||
Net sales from sold Trenton plant (pp) |
| | | 7.3 | 1.0 | |||||||||||||||
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Organic Net Sales ex Trenton Growth |
(2.3 | )% | (0.6 | )% | 5.6 | % | (1.3 | )% | (0.7 | )% | ||||||||||
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Volume (Organic) |
(1.0 | )% | (1.5 | )% | 5.2 | % | (6.2 | )% | (1.2 | )% | ||||||||||
Price/Mix |
(1.3 | )% | 0.9 | % | 0.4 | % | 4.9 | % | 0.5 | % | ||||||||||
Q4 FY18 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 799.5 | $ | 690.7 | $ | 208.9 | $ | 267.1 | $ | 1,966.2 | ||||||||||
Net sales from divested businesses |
(37.7 | ) | (13.9 | ) | (20.1 | ) | (12.5 | ) | (84.2 | ) | ||||||||||
Net sales from sold Trenton plant |
| | | (19.5 | ) | (19.5 | ) | |||||||||||||
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Organic Net Sales ex Trenton |
$ | 761.8 | $ | 676.8 | $ | 188.8 | $ | 235.1 | $ | 1,862.5 | ||||||||||
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3
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Net Sales and Reconciliation of Organic Net Sales to Net Sales
(dollars in millions)
FY19 YTD | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 3,923.6 | $ | 3,735.4 | $ | 864.4 | $ | 1,015.0 | $ | 9,538.4 | ||||||||||
Impact of foreign exchange |
| | 30.2 | | 30.2 | |||||||||||||||
Net sales from acquired businesses |
(688.0 | ) | (957.1 | ) | (74.6 | ) | (78.6 | ) | (1,798.3 | ) | ||||||||||
Net sales from divested businesses |
(115.9 | ) | (56.7 | ) | (21.2 | ) | (34.2 | ) | (228.0 | ) | ||||||||||
Net sales from sold Trenton plant |
| | | (2.0 | ) | (2.0 | ) | |||||||||||||
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Organic Net Sales ex Trenton |
$ | 3,119.7 | $ | 2,721.6 | $ | 798.8 | $ | 900.2 | $ | 7,540.3 | ||||||||||
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Year-over-year change - Net Sales |
19.6 | % | 35.7 | % | 2.5 | % | (4.3 | )% | 20.2 | % | ||||||||||
Impact of foreign exchange (pp) |
| | 3.7 | | 0.4 | |||||||||||||||
Net sales from acquired businesses (pp) |
(21.0 | ) | (34.8 | ) | (8.8 | ) | (7.4 | ) | (22.7 | ) | ||||||||||
Net sales from divested businesses (pp) |
1.2 | (0.1 | ) | 6.3 | 1.7 | 1.3 | ||||||||||||||
Net sales from sold Trenton plant (pp) |
| | | 7.0 | 1.0 | |||||||||||||||
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Organic Net Sales ex Trenton Growth |
(0.2 | )% | 0.8 | % | 3.7 | % | (3.0 | )% | 0.2 | % | ||||||||||
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Volume (Organic) |
(0.3 | )% | 0.5 | % | 2.0 | % | (7.4 | )% | (0.6 | )% | ||||||||||
Price/Mix |
0.1 | % | 0.3 | % | 1.7 | % | 4.4 | % | 0.8 | % | ||||||||||
FY18 YTD | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Total Conagra Brands |
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Net Sales |
$ | 3,281.0 | $ | 2,753.0 | $ | 843.5 | $ | 1,060.8 | $ | 7,938.3 | ||||||||||
Net sales from divested businesses |
(156.4 | ) | (52.7 | ) | (73.4 | ) | (53.4 | ) | (335.9 | ) | ||||||||||
Net sales from sold Trenton plant |
| | | (79.1 | ) | (79.1 | ) | |||||||||||||
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Organic Net Sales ex Trenton |
$ | 3,124.6 | $ | 2,700.3 | $ | 770.1 | $ | 928.3 | $ | 7,523.3 | ||||||||||
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4
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Operating Profit and Reconciliation of Adjusted Operating Profit to Operating Profit
(dollars in millions)
Q1 FY19 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
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Operating Profit |
$ | 178.6 | $ | 95.5 | $ | 37.3 | $ | 27.6 | $ | (80.8 | ) | $ | 258.2 | |||||||||||
Restructuring plans |
0.1 | | 0.2 | | 0.9 | 1.2 | ||||||||||||||||||
Gain on sale of Del Monte business |
| | (13.3 | ) | | | (13.3 | ) | ||||||||||||||||
Acquisitions and divestitures |
0.6 | | 2.9 | | 7.5 | 11.0 | ||||||||||||||||||
Integration costs |
| | | | 4.3 | 4.3 | ||||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | 6.4 | 6.4 | ||||||||||||||||||
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Adjusted Operating Profit |
$ | 179.3 | $ | 95.5 | $ | 27.1 | $ | 27.6 | $ | (61.7 | ) | $ | 267.8 | |||||||||||
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Operating Profit Margin |
23.2 | % | 15.0 | % | 19.2 | % | 11.8 | % | 14.1 | % | ||||||||||||||
Adjusted Operating Profit Margin |
23.3 | % | 15.0 | % | 14.0 | % | 11.8 | % | 14.6 | % | ||||||||||||||
Year-over-year % change - Operating Profit |
1.4 | % | (6.4 | )% | 97.4 | % | 19.2 | % | 32.9 | % | (0.5 | )% | ||||||||||||
Year-over year % change - Adjusted Operating Profit |
(2.1 | )% | (6.3 | )% | 43.4 | % | 19.2 | % | 24.6 | % | (3.5 | )% | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit |
(129 | ) bps | (162 | ) bps | 409 | bps | 256 | bps | (79 | ) bps | ||||||||||||||
Q1 FY18 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
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Operating Profit |
$ | 176.2 | $ | 101.9 | $ | 18.9 | $ | 23.2 | $ | (60.8 | ) | $ | 259.4 | |||||||||||
Restructuring plans |
6.2 | | | | 5.2 | 11.4 | ||||||||||||||||||
Acquisitions and divestitures |
0.8 | | | | | 0.8 | ||||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | 6.0 | 6.0 | ||||||||||||||||||
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|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 183.2 | $ | 101.9 | $ | 18.9 | $ | 23.2 | $ | (49.6 | ) | $ | 277.6 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
23.6 | % | 16.6 | % | 9.9 | % | 9.2 | % | 14.4 | % | ||||||||||||||
Adjusted Operating Profit Margin |
24.6 | % | 16.6 | % | 9.9 | % | 9.2 | % | 15.4 | % | ||||||||||||||
Q2 FY19 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
Operating Profit |
$ | 219.6 | $ | 156.8 | $ | 22.5 | $ | 34.4 | $ | (243.4 | ) | $ | 189.9 | |||||||||||
Restructuring plans |
2.1 | 0.1 | 3.8 | | 104.9 | 110.9 | ||||||||||||||||||
Adjustment to gain on sale of Del Monte business |
| | 0.1 | | | 0.1 | ||||||||||||||||||
Acquisitions and divestitures |
0.3 | | | | 90.2 | 90.5 | ||||||||||||||||||
Integration costs |
| | | | 4.6 | 4.6 | ||||||||||||||||||
Inventory fair value mark-up rollout |
11.9 | 9.9 | 2.6 | | | 24.4 | ||||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | (2.8 | ) | (2.8 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 233.9 | $ | 166.8 | $ | 29.0 | $ | 34.4 | $ | (46.5 | ) | $ | 417.6 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
21.9 | % | 17.3 | % | 10.3 | % | 13.3 | % | 8.0 | % | ||||||||||||||
Adjusted Operating Profit Margin |
23.4 | % | 18.4 | % | 13.3 | % | 13.3 | % | 17.5 | % | ||||||||||||||
Year-over-year % change - Operating Profit |
10.0 | % | 22.1 | % | 11.6 | % | (27.9 | )% | 290.4 | % | (43.1 | )% | ||||||||||||
Year-over year % change - Adjusted Operating Profit |
10.6 | % | 29.9 | % | 37.5 | % | (27.9 | )% | (30.9 | )% | 22.3 | % | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit |
(13 | ) bps | 146 | bps | 370 | bps | (283 | ) bps | 181 | bps | ||||||||||||||
Q2 FY18 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
Operating Profit |
$ | 199.5 | $ | 128.5 | $ | 20.2 | $ | 47.7 | $ | (62.4 | ) | $ | 333.5 | |||||||||||
Restructuring plans |
4.0 | | 0.9 | | 2.2 | 7.1 | ||||||||||||||||||
Acquisitions and divestitures |
7.8 | | | | | 7.8 | ||||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | (7.1 | ) | (7.1 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 211.3 | $ | 128.5 | $ | 21.1 | $ | 47.7 | $ | (67.3 | ) | $ | 341.3 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
22.2 | % | 16.9 | % | 9.2 | % | 16.1 | % | 15.3 | % | ||||||||||||||
Adjusted Operating Profit Margin |
23.5 | % | 16.9 | % | 9.6 | % | 16.1 | % | 15.7 | % |
5
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Operating Profit and Reconciliation of Adjusted Operating Profit to Operating Profit
(dollars in millions)
Q3 FY19 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
Operating Profit |
$ | 225.0 | $ | 189.1 | $ | 29.9 | $ | 36.8 | $ | (62.6 | ) | $ | 418.2 | |||||||||||
Restructuring plans |
3.0 | 2.1 | (0.1 | ) | | 33.4 | 38.4 | |||||||||||||||||
Acquisitions and divestitures |
0.1 | | | | 2.3 | 2.4 | ||||||||||||||||||
Inventory fair value mark-up rollout |
17.8 | 10.8 | (1.7 | ) | | | 26.9 | |||||||||||||||||
Novation of a legacy guarantee |
| | | | (27.3 | ) | (27.3 | ) | ||||||||||||||||
Fair value adjustment of cash settleable equity awards issued in connection with Pinnacle acquisition |
| | | | (18.6 | ) | (18.6 | ) | ||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | 0.2 | 0.2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 245.9 | $ | 202.0 | $ | 28.1 | $ | 36.8 | $ | (72.6 | ) | $ | 440.2 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
19.9 | % | 17.3 | % | 13.1 | % | 14.4 | % | 15.4 | % | ||||||||||||||
Adjusted Operating Profit Margin |
21.8 | % | 18.5 | % | 12.3 | % | 14.4 | % | 16.3 | % | ||||||||||||||
Year-over-year % change - Operating Profit |
28.8 | % | 50.0 | % | 1.3 | % | 47.3 | % | (42.3 | )% | 69.5 | % | ||||||||||||
Year-over year % change - Adjusted Operating Profit |
38.6 | % | 59.3 | % | (5.3 | )% | 47.3 | % | 20.3 | % | 47.5 | % | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit |
55 | bps | 4 | bps | (97 | ) bps | 430 | bps | 130 | bps | ||||||||||||||
Q3 FY18 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
Operating Profit |
$ | 174.7 | $ | 126.1 | $ | 29.5 | $ | 24.9 | $ | (108.5 | ) | $ | 246.7 | |||||||||||
Restructuring plans |
0.4 | 0.1 | 0.2 | | 14.0 | 14.7 | ||||||||||||||||||
Acquisitions and divestitures |
2.4 | 0.7 | | | | 3.1 | ||||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | (0.8 | ) | (0.8 | ) | ||||||||||||||||
Early exit of an unfavorable lease contract by purchasing the building |
| | | | 34.9 | 34.9 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 177.5 | $ | 126.9 | $ | 29.7 | $ | 24.9 | $ | (60.4 | ) | $ | 298.6 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
20.9 | % | 18.3 | % | 13.2 | % | 10.1 | % | 12.4 | % | ||||||||||||||
Adjusted Operating Profit Margin |
21.2 | % | 18.4 | % | 13.3 | % | 10.1 | % | 15.0 | % | ||||||||||||||
Q4 FY19 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
Operating Profit |
$ | 139.4 | $ | 203.7 | $ | 10.1 | $ | 35.5 | $ | (75.4 | ) | $ | 313.3 | |||||||||||
Restructuring plans |
0.9 | 0.7 | 1.0 | | 28.3 | 30.9 | ||||||||||||||||||
Intangible impairment charges |
76.5 | | 13.1 | | | 89.6 | ||||||||||||||||||
Acquisitions and divestitures |
| 0.7 | | | 1.6 | 2.3 | ||||||||||||||||||
Inventory fair value mark-up rollout |
0.5 | 1.2 | | | | 1.7 | ||||||||||||||||||
Legal matters |
| | | | (39.1 | ) | (39.1 | ) | ||||||||||||||||
Gain on divestiture of businesses |
(33.1 | ) | (23.1 | ) | | | | (56.2 | ) | |||||||||||||||
Fair value adjustment of cash settleable equity awards issued in connection with Pinnacle acquisition |
| | | | 3.5 | 3.5 | ||||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | (2.0 | ) | (2.0 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 184.2 | $ | 183.2 | $ | 24.2 | $ | 35.5 | $ | (83.1 | ) | $ | 344.0 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
13.6 | % | 18.5 | % | 4.5 | % | 13.3 | % | 12.0 | % | ||||||||||||||
Adjusted Operating Profit Margin |
18.0 | % | 16.7 | % | 10.8 | % | 13.3 | % | 13.2 | % | ||||||||||||||
Year-over-year % change - Operating Profit |
(19.0 | )% | 65.6 | % | (43.6 | )% | 25.8 | % | (66.8 | )% | 176.0 | % | ||||||||||||
Year-over year % change - Adjusted Operating Profit |
2.5 | % | 49.0 | % | 26.8 | % | 25.8 | % | 8.8 | % | 25.7 | % | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit |
(447 | ) bps | (114 | ) bps | 166 | bps | 272 | bps | (76 | ) bps | ||||||||||||||
Q4 FY18 | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
Operating Profit |
$ | 172.1 | $ | 122.9 | $ | 17.9 | $ | 28.3 | $ | (227.7 | ) | $ | 113.5 | |||||||||||
Restructuring plans |
3.5 | | 0.4 | | 0.9 | 4.8 | ||||||||||||||||||
Intangible impairment charges |
4.0 | | 0.8 | | | 4.8 | ||||||||||||||||||
Acquisitions and divestitures |
0.4 | | | | 3.6 | 4.0 | ||||||||||||||||||
Legal matters |
| | | | 151.0 | 151.0 | ||||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | (4.3 | ) | (4.3 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 180.0 | $ | 122.9 | $ | 19.1 | $ | 28.3 | $ | (76.5 | ) | $ | 273.8 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
21.5 | % | 17.8 | % | 8.6 | % | 10.6 | % | 5.8 | % | ||||||||||||||
Adjusted Operating Profit Margin |
22.5 | % | 17.8 | % | 9.1 | % | 10.6 | % | 13.9 | % |
6
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Operating Profit and Reconciliation of Adjusted Operating Profit to Operating Profit
(dollars in millions)
FY19 YTD | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
Operating Profit |
$ | 762.6 | $ | 645.1 | $ | 99.8 | $ | 134.3 | $ | (462.2 | ) | $ | 1,179.6 | |||||||||||
Restructuring plans |
6.1 | 2.9 | 4.9 | | 167.5 | 181.4 | ||||||||||||||||||
Intangible impairment charges |
76.5 | | 13.1 | | | 89.6 | ||||||||||||||||||
Gain on divestiture of businesses |
(33.1 | ) | (23.1 | ) | (13.2 | ) | | | (69.4 | ) | ||||||||||||||
Acquisitions and divestitures |
1.0 | 0.7 | 2.9 | | 101.6 | 106.2 | ||||||||||||||||||
Integration costs |
| | | | 8.9 | 8.9 | ||||||||||||||||||
Inventory fair value mark-up rollout |
30.2 | 21.9 | 0.9 | | | 53.0 | ||||||||||||||||||
Novation of a legacy guarantee |
| | | | (27.3 | ) | (27.3 | ) | ||||||||||||||||
Legal matters |
| | | | (39.1 | ) | (39.1 | ) | ||||||||||||||||
Fair value adjustment of cash settleable equity awards issued in connection with Pinnacle acquisition |
| | | | (15.1 | ) | (15.1 | ) | ||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | 1.8 | 1.8 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 843.3 | $ | 647.5 | $ | 108.4 | $ | 134.3 | $ | (263.9 | ) | $ | 1,469.6 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
19.4 | % | 17.3 | % | 11.5 | % | 13.2 | % | 12.4 | % | ||||||||||||||
Adjusted Operating Profit Margin |
21.5 | % | 17.3 | % | 12.5 | % | 13.2 | % | 15.4 | % | ||||||||||||||
Year-over-year % change - Operating Profit |
5.5 | % | 34.6 | % | 15.4 | % | 8.2 | % | 0.6 | % | 23.8 | % | ||||||||||||
Year-over year % change - Adjusted Operating Profit |
12.2 | % | 34.9 | % | 22.1 | % | 8.2 | % | 4.1 | % | 23.4 | % | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit |
(142 | ) bps | (11 | ) bps | 201 | bps | 153 | bps | 40 | bps | ||||||||||||||
FY18 YTD | Grocery & Snacks |
Refrigerated & Frozen |
International | Foodservice | Corporate Expense |
Total Conagra Brands |
||||||||||||||||||
Operating Profit |
$ | 722.5 | $ | 479.4 | $ | 86.5 | $ | 124.1 | $ | (459.4 | ) | $ | 953.1 | |||||||||||
Restructuring plans |
14.1 | 0.1 | 1.5 | | 22.3 | 38.0 | ||||||||||||||||||
Intangible impairment charges |
4.0 | | 0.8 | | | 4.8 | ||||||||||||||||||
Acquisitions and divestitures |
11.4 | 0.7 | | | 3.6 | 15.7 | ||||||||||||||||||
Legal matters |
| | | | 151.0 | 151.0 | ||||||||||||||||||
Early exit of an unfavorable lease contract by purchasing the building |
| | | | 34.9 | 34.9 | ||||||||||||||||||
Corporate hedging derivative losses (gains) |
| | | | (6.2 | ) | (6.2 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Adjusted Operating Profit |
$ | 752.0 | $ | 480.2 | $ | 88.8 | $ | 124.1 | $ | (253.8 | ) | $ | 1,191.3 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Profit Margin |
22.0 | % | 17.4 | % | 10.3 | % | 11.7 | % | 12.0 | % | ||||||||||||||
Adjusted Operating Profit Margin |
22.9 | % | 17.4 | % | 10.5 | % | 11.7 | % | 15.0 | % |
7