Conagra Brands Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Max Andrew Stephen Gumport - BNP Paribas Exane, Research Division - Analyst : I wanted to come back to the commentary around the improved outlook for the second half, the low single-digit organic sales growth. And I hear what you're saying, but a lot of the factors that you've called out feels like they would have been knowable a couple of months ago in terms of the easier comps and the innovation and the advertising and lapping the supply chain disruption. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 05, 2023 / 1:30PM, CAG.N - Q1 2024 Conagra Brands Inc Earnings Call So I'm just curious what's changed over the last couple of months that's given you this increased confidence in the second half because before it sounded like we were going to see organic sales would be strongest in the first quarter and then work its way down.

Question: Max Andrew Stephen Gumport - BNP Paribas Exane, Research Division - Analyst : Got it. And then one on gross margin, if I can. So you talked about how you expect a step down in gross margin from the first quarter to the second quarter and then to remain at a similar level in the second half. And so I'm getting that might imply a gross margin of around 27% for the year or roughly in line with last year. A few months ago, it sounded like you were expecting some improvement in fiscal '24, given price mix and productivity, the lapping of supply chain disruptions, all outweighing negative overhead absorption and business investment. I didn't see an updated inflation number today, but assuming it stayed at around 3% for the year. I'm just curious what's changed? I'm assuming it's maybe a bit more business investment that has moved up. I'm just curious for any color there.