Conagra Brands Q4 Earnings Call Highlights

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Conagra Brands (NYSE:CAG) reported fourth-quarter fiscal 2026 results that were wrong its archetypal full-year guidance ranges, portion recently appointed CEO John Brase outlined a program to reconstruct margins, summation concern and simplify the packaged foods company's operations.

Brase, speaking connected his archetypal net telephone arsenic CEO, said Conagra's results came successful a "dynamic environment" but besides showed "the continued request to instrumentality bold enactment to unlock our afloat potential." He said the institution has beardown brands, charismatic categories, innovation capabilities and a instauration successful exertion and artificial intelligence, but acknowledged respective areas needing improvement.

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"Our absorption connected measurement and borderline has go imbalanced," Brase said, adding that Conagra has reached an inflection constituent aft investments helped amended volumes and fortify its marketplace position. "The adjacent signifier is to construe that momentum into stronger profitability with a absorption connected restoring margin."

Fourth-Quarter Sales Flat, Margins Down

CFO Dave Marberger said fourth-quarter integrated nett income were astir $2.7 billion, level with the anterior year. Volumes declined 1.6%, portion terms premix accrued 1.6%. Adjusted gross borderline was 24.5%, and adjusted operating borderline was 11.7%, down from the anterior twelvemonth but improved sequentially from the 3rd quarter. Adjusted net per stock were $0.47, compared with $0.56 a twelvemonth earlier.

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For the afloat fiscal year, integrated nett income declined 0.4%, adjusted operating borderline was 11.3%, and adjusted EPS was $1.72. Marberger said each 3 metrics were wrong Conagra's archetypal fiscal 2026 guidance ranges.

Segment results were mixed. Grocery & Snacks posted astir $1.2 cardinal successful fourth-quarter nett sales, with integrated nett income up 0.5%, driven by maturation successful snacks and partially offset by weakness successful grocery. Refrigerated & Frozen besides generated astir $1.2 cardinal successful nett sales, with integrated nett income down 0.5%. Marberger said volumes successful that conception grew modestly, helped by measurement stock gains successful frozen meals and vegetables and the payment of lapping prior-year proviso constraints.

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International integrated nett income declined 2.4%, arsenic maturation successful Mexico was much than offset by softer volumes successful Canada and planetary markets. Foodservice integrated nett income roseate 1.8%, marking the 4th consecutive 4th of integrated growth.