Tear Sheet: Conagra Brands Inc.

For the 12 months ended Nov. 26, 2023, Conagra Brands Inc.?s debt to EBITDA (S&P Global Ratings-adjusted) was about 3.5x compared with 4.3x for the same prior-year period. Cash flow improved substantially from last year and the company has paid down debt. Still, we revised downward our forecast for fiscal 2024 to reflect the company?s softer revenue and profit outlook for the fiscal year ending May 2024, largely due to lower volumes and increased investments in promotions and innovations. The company believes volume recovery will take longer and is unlikely to improve until fiscal 2025, versus the second half of 2024 as it had previously expected. High retail prices and cautious consumer behavior have hurt packaged food industry volumes. S&P

...January 29, 2024 We expect the company will continue to face negative volume trends, but leverage has improved. For the 12 months ended Nov. 26, 2023, Conagra Brands Inc.'s debt to EBITDA (S&P Global Ratings-adjusted) was about 3.5x compared with 4.3x for the same prior-year period. Cash flow improved substantially from last year and the company has paid down debt. Still, we revised downward our forecast for fiscal 2024 to reflect the company's softer revenue and profit outlook for the fiscal year ending May 2024, largely due to lower volumes and increased investments in promotions and innovations. The company believes volume recovery will take longer and is unlikely to improve until fiscal 2025, versus the second half of 2024 as it had previously expected. High retail prices and cautious consumer behavior have hurt packaged food industry volumes. S&P Global Ratings now forecasts revenue decline of about 2% in fiscal 2024 and about flat EBITDA margin relative to fiscal 2023 compared with...

Full Report