...October 19, 2023 We expect Conagra Brands Inc. to continue deleveraging, but we believe near-term volume trends remain soft. For the 12 months ended August 27, 2023, Conagra's S&P Global Ratings- adjusted debt to EBITDA was about 3.7x compared with 4.3x for the same prior-year period. We forecast flat revenue for the fiscal year ending May 2024, largely due to lower volumes and lower price increases as inflation moderates. The company believes volume recovery will take time and is unlikely to improve until the back half of fiscal 2024. Management attributes this to consumers purchasing less in the near term to stretch their dollars as opposed to trading down to private label. Conagra's financial policies support our expectation for further deleveraging, and the company's debt structure can withstand near-term, higher interest rates. During the first quarter of fiscal 2023, the company lowered its long-term net leverage target to 3.0x from 3.5x., which it expects to achieve by the end of...
