Corporate Profiles - 2024 - 58

COMPANY overview
Conagra Brands, Inc.
C
Innovation pursued in frozen foods amid
consumers' inflation weariness
onagra Brands, Inc. began calendar-year
2024 focusing on innovation. As the year
progressed, a challenging consumer environment
drew the company's attention, weighing
on earnings and sales, particulary in frozen
and refrigerated foods.
As part of its 2024 innovation agenda, the
Chicago-based company
planned
to
expand
brands such as Angie's Boomchickapop, Bertolli,
Chef Boyardee, Dolly Parton and Vlasic into new
eating occasions to create new opportunities.
The company pushed its popcorn brand Angie's
Boomchickapop into the frozen novelty
reflected a 41% decrease in volume and a 1.5%
drop in price/mix.
Chief executive officer -
Sean M. Connolly
category with Angie's Boomchickapops. Bertolli's
innovations include Bertolli oven meals
and appetizers, and Chef Boyardee will enter
the frozen aisle with the introduction of Chef
Boyardee Skillets.
While an initial partnership with Dolly Parton
was cake mixes, muffin mixes and pancake mixes,
Conagra is moving Dolly to the frozen category
with baked foods and frozen meals. Vlasic
will introduce pickle balls in the frozen aisle.
Net income in the fiscal year ended May 26
totaled $347.2 million, down 49% from $683.6
million in fiscal 2023. Net sales fell 1.8% to
$12.05 billion from $12.28 billion.
Net sales in the company's Refrigerated &
Frozen segment totaled $4.87 billion in fiscal
2024, down 5.6% from fiscal 2023. Results
58 \ October 2024
Despite the difficulties, Conagra said it will
continue focusing on the frozen category where
Sean M. Connolly, president and chief executive
officer of Conagra, said single-serve meals are
showing volume growth to the point where " our
shares there hit record highs. "
Connolly said convenience was an advantage
when it comes to Conagra's frozen products since
consumers don't really like planning, preparing
and cleaning up after meals. Connolly said in a
July 11 earnings call the company is investing
in order to " nudge volumes back toward positive
territory. "
" It's a process, and we've moved the needle
meaningfully, and that will continue to move positive, "
he said. " But it's a transition. It's not one of
these events where sprinkle little money on the
consumer and they forget that they ever experienced
runaway inflation. It's a period of adjustment,
and for us, that is clearly happening. "
In Conagra's Grocery & Snacks business unit,
net sales totaled $4.96 billion in fiscal 2024,
down 0.5% from a year ago. The decline reflected
a 3.1% decline in volume that only was
partially offset by a 2.6% gain in price/mix.
For fiscal 2025, Conagra expects organic net
sales of negative 1.5% to flat compared with
fiscal 2024 and an adjusted operating margin of
between 15.6% and 15.8%. Adjusted operating
margin for fiscal 2024 was 16%.
In a personnel move, Noelle O'Mara joined
Conagra as executive vice president, new platforms
and acquisitions. Previously, she was group
president of prepared foods at Tyson Foods.
Conagra made a few adjustments to its portfolio
in divestments and acquisitions. Conagra sold
its 51.8% stake in Agro Tech to funds advised by
Convergent Finance LLP and private equity firm
Samara Capital, and acquired Sweetwood Smoke
& Co., maker of Fatty Smoked Meat Sticks.
Conagra shuttered its Beaver Dam, Wis.,
plant, which processes Birds Eye frozen foods,
on June 10 and said its warehouse operations
will continue until Jan. 3, 2025. CP
Conagra Brands, Inc.
net income
(fiscal years ended in May)
in millions
2024
2023
2022
$347
$684
$888
Source: Conagra Brands, Inc.
Conagra Brands, Inc.
net sales
(fiscal years ended in May)
in millions
2024
2023
2022
$12,051
$12,277
$11,536
Source: Conagra Brands, Inc.
Conagra Brands, Inc.
share price
$34
Sept. 4, 2024 = $32.41
$30
$26
$22
Sept. Nov.
2023
Jan.
2024
March May
Source: New York Stock Exchange
CONAGRA BRANDS, INC.
July
Sept.
HIGH =
Sept. 4, 2024 = $32.41
LOW =
Oct. 5, 2023 = $24.79
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