Company profile

Ticker
CAG
Exchange
CEO
Sean M. Connolly
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
Former names
Conagra Foods Inc, Conagra Inc
SEC CIK
IRS number
470248710

CAG stock data

(
)

Calendar

1 Oct 19
23 Oct 19
31 May 20

News

Company financial data Financial data

Quarter (USD) Aug 19 May 19 Feb 19 Nov 18
Revenue 2.39B 2.61B 2.71B 2.38B
Net income 173.8M 126.5M 242M 131.6M
Diluted EPS 0.36 0.26 0.5 0.31
Net profit margin 7.27% 4.84% 8.94% 5.52%
Operating income 363.2M 388.7M 480.8M 433.3M
Net change in cash -171.9M -45.6M -160.1M 367.5M
Cash on hand 64.7M 236.6M 282.2M 442.3M
Cost of revenue 1.73B 1.91B 1.95B 1.71B
Annual (USD) May 19 May 18 May 17 May 16
Revenue 9.54B 7.94B 7.83B 1.5B
Net income 678.3M 808.4M 639.3M -677M
Diluted EPS 1.52 1.98 1.46 -1.56
Net profit margin 7.11% 10.18% 8.17% -45.13%
Operating income 1.64B 1.41B 1.24B 1.22B
Net change in cash 108.6M -123.4M -546.7M 664M
Cash on hand 236.6M 128M 251.4M 798.1M
Cost of revenue 6.89B 5.59B 5.48B 6.23B

Financial data from company earnings reports

Financial report summary

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Risks
  • Deterioration of general economic conditions could harm our business and results of operations.
  • Our existing and future debt may limit cash flow available to invest in the ongoing needs of our business and could prevent us from fulfilling our debt obligations.
  • Increased competition may result in reduced sales or profits.
  • Increases in commodity costs may have a negative impact on profits.
  • Volatility in the market value of derivatives we use to manage exposures to fluctuations in commodity prices will cause volatility in our gross margins and net earnings.
  • If we do not achieve the appropriate cost structure in the highly competitive food industry, our profitability could decrease.
  • We may not realize the benefits that we expect from our restructuring plans, including the Pinnacle Integration Restructuring Plan.
  • We may be subject to product liability claims and product recalls, which could negatively impact our profitability.
  • We must identify changing consumer preferences and develop and offer food products to meet their preferences.
  • Changes in our relationships with significant customers or suppliers could adversely affect us.
  • The sophistication and buying power of our customers could have a negative impact on profits.
  • If we are unable to complete proposed acquisitions or integrate acquired businesses, our financial results could be materially and adversely affected.
  • If we are unable to complete our proposed divestitures, our financial results could be materially and adversely affected.
  • Disruption of our supply chain could have an adverse impact on our business, financial condition, and results of operations.
  • Any damage to our reputation could have a material adverse effect on our business, financial condition, and results of operations.
  • If we fail to comply with the many laws applicable to our business, we may face lawsuits or incur significant fines and penalties. In addition, changes in such laws may lead to increased costs.
  • We are increasingly dependent on information technology, and potential disruption, cyberattacks, security problems, and expanding social media vehicles present new risks.
  • We rely on our management team and other key personnel.
  • Impairment in the carrying value of goodwill or other intangibles could result in the incurrence of impairment charges and negatively impact our net worth.
  • Our results could be adversely impacted as a result of increased pension, labor, and people-related expenses.
  • Climate change, or legal, regulatory, or market measures to address climate change, may negatively affect our business and operations.
  • Due to the seasonality of the business, our revenue and operating results may vary from quarter to quarter.
  • The termination or expiration of current co-manufacturing arrangements could reduce our sales volume and adversely affect our results of operations.
  • Ardent Mills may not achieve the benefits that are anticipated from the joint venture.
  • As we outsource certain functions, we become more dependent on the third parties performing those functions.
  • Our intellectual property rights are valuable, and any inability to protect them could have an adverse impact on our business, financial condition, and results of operations.
  • We may not realize the growth opportunities and cost synergies that are anticipated from the acquisition of Pinnacle.
  • We may be exposed to claims and liabilities or incur operational difficulties as a result of the Spinoff.
Management Discussion
  • On October 26, 2018, we completed our acquisition of Pinnacle Foods Inc ("Pinnacle"), a branded packaged foods company specializing in shelf-stable and frozen foods (the "Pinnacle acquisition"). As a result of the acquisition, Pinnacle became a wholly-owned subsidiary of the Company. The total amount of consideration paid in connection with the acquisition was approximately $8.03 billion, consisting of cash and shares of our stock, as described in more detail in the section entitled "Acquisitions" below.
  • In connection with the Pinnacle acquisition, we incurred approximately $8.33 billion of long-term debt and received cash proceeds of $575.0 million ($555.7 million net of related fees) from the issuance of common stock in an underwritten public offering. We used such proceeds for the payment of the cash portion of the Merger Consideration (as defined below), the repayment of Pinnacle debt acquired, the refinancing of certain Conagra Brands debt, and the payment of related fees and expenses.
  • The integration of Pinnacle is continuing and on-track. We expect to achieve cost synergies of $285 million per year when the integration is concluded.
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