Conagra Brands, Inc. · NYSE:CAG
Conagra Brands — Q1 2026 Earnings Presentation
40 slides from Conagra Brands's earnings presentation, Oct 1, 2025
Slide 1: FY26 Q1 Earnings Presentation
FY26 Q1 Earnings Presentation October 1, 2025 1
Slide 2: Legal Disclosure
Legal Disclosure Note on Forward-Looking Statements The presentation contains forward-looking statements regarding our expected future financial performance or position, results of operations, business strategy, plans and objectives, and other statements that are not historical facts. Readers of th
Slide 3: Sean Connolly, President and Chief Executive Officer
Sean Connolly President and Chief Executive Officer 3
Slide 4: Key Messages
Key Messages Q1 Headlines: • Top line improved; market share improved • Executing against frozen, snacking, and staples domain strategies • Supply chain delivering objectives • Divested Chef Boyardee and frozen seafood; reduced net debt Year-to-Go Headlines: • Expect inflationary pressure and weak c
Slide 5: Agenda
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Slide 6: Agenda
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Slide 7: Consumption Improved in Q1
Consumption Improved in Q1 Total Conagra Consumption (Volume & Dollar Sales % Change vs. YA) +1.5% +0.1% +0.0% (0.9)% (1.2%) (1.4%) (1.7)% (1.7%) (2.7)% (3.1%) Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Volume Dollars Source: Circana POS, Total US- MULO+ with Convenience, Conagra Custom Hierarchy, Fisc
Slide 8: Market Share Performance Improving Following Service Recovery
Market Share Performance Improving Following Service Recovery % of Conagra Portfolio Holding or Gaining Volume Share vs YA 65% 58% 58% 44% 39% Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Supply Challenges Source: Circana POS, Total US- MULO+ with Convenience, Syndicated Hierarchy, Total Edible, Fiscal Q
Slide 9: Solid Progress in Frozen Volume and Share
Solid Progress in Frozen Volume and Share Conagra Frozen Retail Volume Sales Share Growth Categories (% Change vs. YA) Q1 Volume Share vs. Last Quarter Frozen Veg +3.3% +0.7 pts +1.6% +1.5% (1.3)% Frozen Meals (SSM + MSM) +0.6 pts (4.5)% Fz. Prep Chicken Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 +0.1
Slide 10: Continued Progress Restoring Frozen Promo Levels
Continued Progress Restoring Frozen Promo Levels Conagra Volume Sales Sold on Promotion vs YA (Total Frozen) Supply Impacted (10)% (25)% Q4 FY25 Q1 FY26 Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, Fiscal Quarters. Excludes prior divested businesses from all period
Slide 11: Snacks Performance As Expected: Strong Protein Volumes Mixed With Elasticity & Timing Impacts
Snacks Performance As Expected: Strong Protein Volumes Mixed With Elasticity & Timing Impacts Salty Snacks & Protein Strength Sweet Treat Dynamics Meat Snacks Baking Mixes Inflation-Driven Cocoa Pricing +4% (8)% Q1 Volume Q1 Volume Growth vs. YA Decline vs. YA Angie’s Seeds BOOMCHICKAPOP Promo Timin
Slide 12: Snacks Volumes In-Line With Category Despite Discrete Items; Dollar Growth Strong
Snacks Volumes In-Line With Category Despite Discrete Items; Dollar Growth Strong Snacks Retail Sales (% Change vs. YA) +2.2% +0.5% (2.4)% (2.3)% Volume Dollars Conagra Snacks Categories Conagra Snacks Source: Circana POS, Total US-MULO+ with Convenience, Conagra Custom Hierarchy, 13 Weeks Ended Aug
Slide 13: Managing Staples Portfolio in Dynamic Environment
Managing Staples Portfolio in Dynamic Environment Staples Takeaways ✓ Strong recovery in Hebrew National ✓ Gaining volume share in categories including Chili, Tomatoes, and Rfg. Whipped Toppings ✓ Value-seeking behavior continuing ✓ Managing margin levers, including steel inflation pricing late Q2 T
Slide 14: Supply Chain Delivered Expectations in Q1
Supply Chain Delivered Expectations in Q1 SERVICE PRODUCTIVITY M O D E R N I Z AT I O N 98% >5% On Track Q1 Service Levels Q1 % of COGS Q2 Baked Chicken Project 14
Slide 15: Completed Divestitures in Q1, Reduced Net Debt
Completed Divestitures in Q1, Reduced Net Debt1 Q1 Divestitures Complete Proceeds Reduced Net Debt1 $8.0B $7.6B Q4 FY25 Q1 FY26 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the most directly comparable GAAP measure. 15
Slide 16: Agenda
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Slide 17: Inflation & Consumer Sentiment Remain Headwinds
Inflation & Consumer Sentiment Remain Headwinds • Prior expectations for core inflation of ~4% Core Inflation • Core inflation now slightly higher, primarily proteins • “All other” tariff rates marginally higher vs. prior Tariffs guidance; steel/aluminum & China rates unchanged • Total inflation now
Slide 18: Maintaining Balanced Capital Allocation Approach
Maintaining Balanced Capital Allocation Approach Business Disciplined M&A Investments ~$450 mm FY26 CapEx Est. Closed divestitures Q1 Debt Dividends & Reduction Buybacks >$400 mm $1.40 Net debt reduction during Q1 Maintaining annual dividend rate 18
Slide 19: We Remain Focused on Delivering Our FY26 Priorities
We Remain Focused on Delivering Our FY26 Priorities • Grow frozen and snacks • Increase investment in supply chain resiliency • Implement targeted pricing • Actively manage for strong productivity and cash flow 19
Slide 20: Reaffirming Fiscal 2026 Guidance
Reaffirming Fiscal 2026 Guidance 1 1 Guidance Organic Net Sales1 Growth (vs. FY25) (1)% to +1% Adj. Operating Margin1 ~11.0% to ~11.5% Adj. EPS1 (53 Weeks) $1.70 to $1.85 1. Forward-looking non-GAAP financial measure. See the appendix for more information. 20
Slide 21: Dave Marberger, Executive Vice President and Chief Financial Officer
Dave Marberger Executive Vice President and Chief Financial Officer 21
Slide 22: Q1 FY26 Results
Q1 FY26 Results Dollars in Millions, except per share data Increase/(Decrease) Q1 FY26 Q1 vs. YA Organic Net Sales1 $2,611 (0.6)% Adj. Gross Margin1 24.4% (153) bps Adj. Operating Margin1 11.8% (244) bps Adj. EPS1 $0.39 (26.4)% 1. Non-GAAP financial measure. See the appendix for certain definitions
Slide 23: Q1 Net Sales Bridge vs. Year Ago
Q1 Net Sales Bridge vs. Year Ago Q1 Drivers of Net Sales Change (% Change vs. YA) Organic Net Sales1: (0.6)% +0.6% (0.1)% (1.2)% (5.1)% (5.8)% Volume Price/Mix Foreign M&A Total Exchange Conagra Brands 1. Non-GAAP financial measure. See the appendix for certain definitions and reconciliations to the
Slide 24: Q1 Net Sales by Segment
Q1 Net Sales by Segment Dollars in Millions Increase/(Decrease) Change vs. YA 1 1 Reported Organic Price/Mix Volume Net Sales Net Sales1 Grocery & Snacks $1,080 (1.0)% +0.6% (1.6)% Refrigerated & Frozen 1,076 +0.2% (0.3)% +0.5% International 212 (3.5)% +1.7% (5.2)% Foodservice 265 +0.2% +3.8% (3.6)%
Slide 25: Q1 Adjusted Operating Margin Bridge
Q1 Adjusted Operating Margin1 Bridge Q1 Adjusted Operating Margin1 (% Change vs. YA) 14.2% (0.2)% +3.4% ~Flat 11.8% (0.5)% (5.1)% 1 Q1 FY25 Price/Mix COGS Productivity, Adj. SG&A FX / M&A Q1 FY26 Inflation Net of Operational (incl. A&P) Offsets 1. Non-GAAP financial measure. See the appendix for cer
Slide 26: Q1 Segment Adjusted Operating Profit & Margin
Q1 Segment Adjusted Operating Profit1 & Margin1 Q1 Adjusted Operating Profit1 & Margin1 Dollars in Millions Increase/(Decrease) Adj. Op. Profit1 1 Adj. Op. Margin 1 1 Q1 vs. YA Q1 vs. YA Grocery & Snacks $221 (12.9)% 20.5% (97) bps Refrigerated & Frozen 114 (28.1)% 10.6% (402) bps International 38 +
Slide 27: Q1 Adjusted EPS Bridge
Q1 Adjusted EPS1 Bridge Drivers of Q1 Adjusted EPS1 vs. YA $0.53 $0.01 $0.01 ($0.11) $0.39 ($0.02) ($0.03) Q1 FY25 Adj. Pension & Adj. FX M&A Q1 FY26 Adj. Op. Profit 1 Interest Income Tax 1 Adj. 1 EPS1 Expense EPS 1. Non-GAAP financial measure. See the appendix for certain definitions and reconcilia
Slide 28: Key Balance Sheet & Cash Flow Metrics
Key Balance Sheet & Cash Flow Metrics Q1 FY26 Q1 FY25 (dollars in millions) Debt $8,280 $8,772 Cash $698 $129 Ending Net Debt1 $7,582 $8,644 Net Leverage2 3.55x 3.60x (dollars in millions) Q1 FY26 Q1 FY25 Net Cash Flow from Operating $121 $269 Activities Capital Expenditures $147 $133 Free Cash Flow
Slide 29: Reaffirming Fiscal 2026 Guidance
Reaffirming Fiscal 2026 Guidance 1 1 Guidance Organic Net Sales1 Growth (vs. FY25) (1)% to +1% Adj. Operating Margin1 ~11.0% to ~11.5% Adj. EPS1 (53 Weeks) $1.70 to $1.85 1. Forward-looking non-GAAP financial measure. See the appendix for more information. 29
Slide 30: Q2 & Full Year Considerations
Q2 & Full Year Considerations Q2 Considerations: • Organic net sales1 down low single digits; trade expense shift from Q1 to Q2 • Strong tariff mitigation in Q1; larger headwind in Q2 and YTG • Adj. operating margin1 moderately below full-year guidance range Full Year Considerations: • H2 organic ne
Slide 31: Other Fiscal 2026 Considerations
Other Fiscal 2026 Considerations Guidance Old New Adj. Tax Rate1 ~23% ~24% Interest Expense ~$400 mm ~$390 mm Equity Earnings ~$200 mm Pension Income ~$25 mm Capital Expenditures ~$450 mm Unchanged 1 Free Cash Flow Conversion ~90% Net Leverage Ratio1 ~3.85x 53rd Week Impact to Adj. EPS $0.05 1. Forw
Slide 32: Appendix
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Slide 33: Notes on Non-GAAP Financial Measures
Notes on Non-GAAP Financial Measures Note on Non-GAAP Financial Measures This document includes certain non-GAAP financial measures (including organic net sales, adjusted gross margin, adjusted operating margin, adjusted EPS, free cash flow). This appendix provides reconciliations of the non-GAAP fi
Slide 34: Reconciliation of Q1 FY26 Organic Net Sales by Segment
Reconciliation of Q1 FY26 Organic Net Sales by Segment (in millions) - YOY Change 1. Excludes the impact of foreign exchange related to divested businesses. 34
Slide 35: Reconciliation of Q1 FY26 Adj. Operating Profit by Segment
Reconciliation of Q1 FY26 Adj. Operating Profit by Segment (in millions) – YOY Change 35
Slide 36: Reconciliation of Q1 FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income and Adj. EPS
Reconciliation of Q1 FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, (in millions) and Adj. EPS – YOY Change 1. Includes advertising and promotion (A&P) expense of $52.9 million and $50.4 million for Q1 FY26 and Q1 FY25, respectively. A&P as a percentage of net sales was 2.0%
Slide 37: Reconciliation of Q1 FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income and Adj. EPS Cont.
Reconciliation of Q1 FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, (in millions) and Adj. EPS – YOY Change Cont. 1. Includes advertising and promotion (A&P) expense of $52.9 million and $50.4 million for Q1 FY26 and Q1 FY25, respectively. A&P as a percentage of net sales was
Slide 38: Reconciliation of Q1 FY26 Free Cash Flow and Net Debt and FY25 Net Debt
Reconciliation of Q1 FY26 Free Cash Flow and Net Debt and FY25 Net Debt (in millions) 38
Slide 39: Reconciliation of Q1 FY26 Net Leverage Ratio
Reconciliation of Q1 FY26 Net Leverage Ratio (in millions) 1. As of August 24, 2025. 2. Excludes comparability items related to depreciation. 3. The company defines its net debt leverage ratio as net debt divided by adjusted EBITDA for the trailing twelve-month (TTM) period. 39
Slide 40: Reconciliation of Q1 FY25 Net Leverage Ratio
Reconciliation of Q1 FY25 Net Leverage Ratio (in millions) 1. As of August 25, 2024. 2. Excludes comparability items related to depreciation. 3. The company defines its net debt leverage ratio as net debt divided by adjusted EBITDA for the trailing twelve-month (TTM) period. 40