Conagra Brands is reporting results for the fourth quarter and full year fiscal year 2025, which ended on May 25, 2025. All comparisons are against the prior-year fiscal period, unless otherwise noted.

For the fourth quarter, reported net sales decreased 4.3% to $2.8 billion, reflecting a 3.5% decrease in organic net sales, a 0.6% decrease from the unfavorable impact of foreign exchange and a 0.2% decrease from the unfavorable impact of M&A.

The 3.5% decrease in organic net sales was driven by a 1.0% negative impact from price/mix and a 2.5% decrease in volume, primarily due to lower consumption trends.

Gross profit decreased 12.1% to $707 million in the quarter, and adjusted gross profit decreased 10.7% to $717 million versus the prior year, as productivity was more than offset by lower net sales, the negative impact of cost of goods sold inflation and unfavorable operating leverage. Gross margin decreased 228 basis points to 25.4% in the quarter, and adjusted gross margin decreased 184 basis points to 25.8%.

Selling, general and administrative expense, which includes advertising and promotional expense (A&P), decreased 17.2% to $333 million in the quarter and adjusted SG&A, which includes advertising and promotional expense, decreased 10.8% to $333 million primarily due to lower incentive compensation compared to the prior year quarter. Advertising and promotional expense decreased 14.7% to $62 million compared to the prior year quarter.

Net interest expense was $102 million in the quarter. Compared to the prior-year period, net interest expense decreased 2.8% or $3 million due to a reduction in total debt.

Net sales for the grocery and snacks segment decreased 2.1% to $1.2 billion in the quarter, reflecting a 3.3% decrease in organic net sales and a 1.2% increase from the favorable impact of M&A. The decrease in organic net sales was driven by a price/mix decrease of 1.7% of and a volume decrease of 1.6%. 

Operating profit for the segment increased 19.6% to $210 million in the quarter, and adjusted operating profit decreased 11.7% to $226 million as higher productivity and lower SG&A were more than offset by lower net sales and the negative impact cost of goods sold inflation. In addition, Conagra wrapped a $7 million net benefit from insurance proceeds in the prior year related to lost sales from its fiscal 2023 canned meat recall. 

Reported and organic net sales for the refrigerated and frozen segment decreased 4.4% to $1.1 billion in the quarter driven by a price/mix decrease of 2.3% and a volume decrease of 2.1%.

Operating profit for the segment was $127 million, and adjusted operating profit decreased 10.1% to $171 million as higher productivity and lower SG&A were more than offset by lower net sales and the negative impact of cost of goods sold inflation.

Net sales for the international segment decreased 13.8% to $230 million in the quarter, reflecting a 7.3% decrease from the unfavorable impact of M&A, a 7.3% decrease from the unfavorable impact of foreign exchange and a 0.8% increase in organic net sales. On an organic net sales basis, price/mix increased 4.7% and volume decreased 3.9%.

Operating profit for the segment increased 35.6% to $35 million in the quarter, and adjusted operating profit increased 22.7% to $35 million as higher productivity and lower SG&A more than offset the unfavorable impact of foreign exchange and the negative impact of cost of goods sold inflation.

Net sales for the foodservice segment decreased 4.0% to $280 million in the quarter, reflecting a 4.3% decrease in organic net sales and a 0.3% increase from the favorable impact of M&A. The decrease in organic net sales was driven by a price/mix increase of 3.3% and a volume decrease of 7.6%. 

Operating profit and adjusted operating profit for the segment decreased 20.8% to $32 million in the quarter as higher productivity was more than offset by lower net sales, the negative impact of cost of goods sold inflation and unfavorable operating leverage.

Corporate expenses decreased 2.2% to $82 million in the fourth quarter, and adjusted corporate expense decreased 6.7% to $78 million in the quarter driven by lower incentive compensation compared to the prior year quarter.

For the full fiscal year, net sales decreased 3.6% to $11.6 billion reflecting a 2.9% decrease in organic net sales, a 0.4% decrease from the unfavorable impact of foreign exchange, and a 0.3% decrease from the unfavorable impact of M&A.

For the full fiscal year, gross profit decreased 9.9% to $3.0 billion and adjusted gross profit decreased 10.4% to $3.0 billion as higher productivity was more than offset by lower net sales, the negative impact of cost of goods sold inflation and unfavorable operating leverage.

Sean Connolly, president and chief executive officer of Conagra Brands, said, "We entered the year focused on returning volume to growth and delivered consistent progress through the first half. This resulted in a return to absolute volume growth in domestic retail in the second quarter, best-in-class market share performance, and first half EPS in line with our plan. While the second half was impacted by higher than expected inflation, foreign exchange headwinds, and supply constraints, our long-term value creation strategy remains unchanged.

"In fiscal 2026, we expect elevated inflation and macroeconomic uncertainty to persist but remain focused on proactively managing the business by investing in our high-potential frozen and snacks domains, prioritizing volume strength, and further enhancing supply chain resiliency while continuing disciplined cost management and focus on cash flow. We believe that these actions will enable Conagra to deliver sustainable growth and stronger margins over time, creating meaningful long-term value for our stakeholders."

Source: Conagra Brands