In an October 2^nd 2024 release, Conagra Brands (CAG) posted financial results for Q1 FY 2025 ending August 25^th 2024. The Company can be regarded as representative of the manufacturing and packaged food sector with competitors including Post Holdings, Campbell Soup Company and Kraft-Heinz, all currently under pressure to reduce prices to the major food service providers and supermarket chains. Despite moderate inflation consumers are turning to less expensive private brands although the trend to eat-at-home may benefit Conagra marketing frozen dinners.

For Q1 FY 2025, net income was $467 million on net sales of $2,795 million with a diluted EPS of $0.97.  Comparable figures for Q1 FY 2024 were net income of $320 million on net revenue of $2,904 million with a diluted EPS of $0.67

The release included results for the four operating segments:-

• Foodservice: Operating profit of $35 million down 20.4 percent from FY 2024, on revenue of $267 million down 7.8 percent attributed in part to plant-related problems reducing production of branded hot dogs.
• Refrigerated and Frozen: Operating profit of $176 million, down 11.6 percent, on revenue of $1,100 million down 5.7 percent.
• International: Operating profit of $34 million, up 42.1 percent on revenue of $259 million, down 0.4 percent.
• Groceries and Snacks: Operating profit of $249 million, down 3.7 percent on revenue of $1,200 million, down 1.7 percent.

For Q1 FY 2025 (with the values for corresponding Q1 2023 in parentheses) Conagra achieved a gross margin of 26.4 percent (28.4) and an operating margin of 14.3 percent (16.8). Revenue was down 3.8 percent.

In commenting on Q1 results Sean Connolly, president and CEO stated, "Our team executed well to deliver on key priorities across the business during the first quarter in what continued to be a challenging environment. Our domestic retail volume progressed in-line with expectations, we increased share across the portfolio and advanced our portfolio reshaping initiatives. Overall, we are reaffirming our guidance for fiscal 2025, reflecting confidence in the underlying momentum of our business."

Guidance for FY 2025 included net sales flat to a decline of 1.5 percent; an adjusted increase in operating margin of 15.6 to 15.8 percent and an EPS of $2.60 to $2.65.

Conagra Brands listed assets of $21,248 million, including a disproportionate  $13,514 million as goodwill and intangibles, against long-term debt and other obligations of $8,915 million. The Company had an intraday market capitalization of $14,360 million on October 3^rd. CAG trades with a forward P/E of 11.5 and has ranged over a 52-week period from $25.16 to $33.24 with a 50-day moving average of $31.25. CAG closed at $32.65 on October 12^th pre-release, falling 8.7 percent at the open post-release on October 2^nd to close at $29.99. Twelve-month trailing operating and profit margins were 14.0 percent and 4.1 percent respectively. The Company generated a twelve-month trailing return of 5.3 percent on assets and 5.6 percent on equity.