Exhibit 99.1
Explanatory Note
Beginning with the first quarter of fiscal 2020, Conagra Brands, Inc. (the “Company”) no longer reports the Pinnacle Foods Inc. (“Pinnacle Foods”) business, acquired in October 2018, as a standalone reporting segment. To better reflect how management is now managing the overall integrated business, the business components previously comprising the Pinnacle Foods reporting segment have been allocated to the Company’s other four reporting segments.
Set forth below is certain historical unaudited financial information that has been recast to reflect this change. The recast historical financial information also reflects (i) the reallocation of an immaterial amount of net sales and operating profit from the Company’s Grocery & Snacks reporting segment to the Company’s Foodservice reporting segment and (ii) the removal of certain businesses divested in fiscal 2019 (the Wesson oil business and the Gelit pasta business) from historical organic net sales. This recast historical financial information is provided to ensure comparability and has no impact on the Company’s previously reported consolidated statements of operations, comprehensive income (loss), balance sheets, stockholders’ equity, and cash flows. This information should be read in conjunction with the Company’s Annual Reports on Form10-K and Quarterly Reports on Form10-Q.
Note onNon-GAAP Financial Measures
The information below contains certainnon-GAAP financial measures, including organic net sales, adjusted operating profit, and adjusted operating margin. Management considers GAAP financial measures as well as suchnon-GAAP financial information in its evaluation of the Company’s financial statements and believes thesenon-GAAP measures provide useful supplemental information to assess the Company’s operating performance and financial position. These measures should be viewed in addition to, and not in lieu of, the Company’s operating performance and financial measures as calculated in accordance with GAAP.
1
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Net Sales and Reconciliation of Organic Net Sales to Net Sales
(dollars in millions)
Q1 FY19 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 770.7 | $ | 635.2 | $ | 193.8 | $ | 234.7 | $ | 1,834.4 | ||||||||||
Impact of foreign exchange | — | — | 5.9 | — | 5.9 | |||||||||||||||
Net sales from acquired businesses | (24.9 | ) | (10.6 | ) | (1.9 | ) | — | (37.4 | ) | |||||||||||
Net sales from divested businesses | (31.9 | ) | (13.2 | ) | (9.2 | ) | (11.6 | ) | (65.9 | ) | ||||||||||
Net sales from sold Trenton plant | — | — | — | (2.0 | ) | (2.0 | ) | |||||||||||||
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Organic Net Sales ex Trenton | $ | 713.9 | $ | 611.4 | $ | 188.6 | $ | 221.1 | $ | 1,735.0 | ||||||||||
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Year-over-year change - Net Sales | 3.3 | % | 3.2 | % | 1.5 | % | (6.7 | )% | 1.7 | % | ||||||||||
Impact of foreign exchange (pp) | — | — | 3.2 | — | 0.3 | |||||||||||||||
Net sales from acquired businesses (pp) | (3.3 | ) | (1.8 | ) | (0.9 | ) | — | (2.0 | ) | |||||||||||
Net sales from divested businesses (pp) | 0.6 | (0.2 | ) | 3.4 | 1.0 | 0.6 | ||||||||||||||
Net sales from sold Trenton plant (pp) | — | — | — | 7.0 | 1.0 | |||||||||||||||
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Organic Net Sales ex Trenton Growth | 0.6 | % | 1.2 | % | 7.2 | % | 1.3 | % | 1.6 | % | ||||||||||
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Volume (Organic) | 0.5 | % | (0.1 | )% | 5.1 | % | (3.8 | )% | 0.2 | % | ||||||||||
Price/Mix | 0.1 | % | 1.3 | % | 2.1 | % | 5.1 | % | 1.4 | % | ||||||||||
Q1 FY18 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 745.8 | $ | 615.7 | $ | 190.9 | $ | 251.8 | $ | 1,804.2 | ||||||||||
Net sales from divested businesses | (36.4 | ) | (11.4 | ) | (15.1 | ) | (13.9 | ) | (76.8 | ) | ||||||||||
Net sales from sold Trenton plant | — | — | — | (19.6 | ) | (19.6 | ) | |||||||||||||
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Organic Net Sales ex Trenton | $ | 709.4 | $ | 604.3 | $ | 175.8 | $ | 218.3 | $ | 1,707.8 | ||||||||||
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Q2 FY19 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 1,000.5 | $ | 906.7 | $ | 218.3 | $ | 258.2 | $ | 2,383.7 | ||||||||||
Impact of foreign exchange | — | — | 9.1 | — | 9.1 | |||||||||||||||
Net sales from acquired businesses | (117.3 | ) | (144.8 | ) | (11.8 | ) | (12.1 | ) | (286.0 | ) | ||||||||||
Net sales from divested businesses | (46.1 | ) | (15.5 | ) | (5.7 | ) | (11.4 | ) | (78.7 | ) | ||||||||||
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Organic Net Sales ex Trenton | $ | 837.1 | $ | 746.4 | $ | 209.9 | $ | 234.7 | $ | 2,028.1 | ||||||||||
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Year-over-year change - Net Sales | 11.2 | % | 19.6 | % | (0.9 | )% | (12.6 | )% | 9.7 | % | ||||||||||
Impact of foreign exchange (pp) | — | — | 4.1 | — | 0.4 | |||||||||||||||
Net sales from acquired businesses (pp) | (13.0 | ) | (19.1 | ) | (5.2 | ) | (4.3 | ) | (13.2 | ) | ||||||||||
Net sales from divested businesses (pp) | 0.1 | (0.1 | ) | 5.8 | 0.7 | 0.7 | ||||||||||||||
Net sales from sold Trenton plant (pp) | — | — | — | 6.1 | 0.9 | |||||||||||||||
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Organic Net Sales ex Trenton Growth | (1.7 | )% | 0.4 | % | 3.8 | % | (10.1 | )% | (1.5 | )% | ||||||||||
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Volume (Organic) | (2.2 | )% | 0.3 | % | 0.5 | % | (12.3 | )% | (2.2 | )% | ||||||||||
Price/Mix | 0.5 | % | 0.1 | % | 3.3 | % | 2.2 | % | 0.7 | % | ||||||||||
Q2 FY18 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 899.7 | $ | 758.1 | $ | 220.3 | $ | 295.3 | $ | 2,173.4 | ||||||||||
Net sales from divested businesses | (48.5 | ) | (14.4 | ) | (18.0 | ) | (14.3 | ) | (95.2 | ) | ||||||||||
Net sales from sold Trenton plant | — | — | — | (20.2 | ) | (20.2 | ) | |||||||||||||
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Organic Net Sales ex Trenton | $ | 851.2 | $ | 743.7 | $ | 202.3 | $ | 260.8 | $ | 2,058.0 | ||||||||||
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2
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Net Sales and Reconciliation of Organic Net Sales to Net Sales
(dollars in millions)
Q3 FY19 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 1,129.8 | $ | 1,094.3 | $ | 228.3 | $ | 254.7 | $ | 2,707.1 | ||||||||||
Impact of foreign exchange | — | — | 9.3 | — | 9.3 | |||||||||||||||
Net sales from acquired businesses | (267.6 | ) | (389.4 | ) | (30.2 | ) | (31.2 | ) | (718.4 | ) | ||||||||||
Net sales from divested businesses | (37.9 | ) | (14.3 | ) | (6.3 | ) | (11.2 | ) | (69.7 | ) | ||||||||||
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Organic Net Sales ex Trenton | $ | 824.3 | $ | 690.6 | $ | 201.1 | $ | 212.3 | $ | 1,928.3 | ||||||||||
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Year-over-year change - Net Sales | 35.1 | % | 58.9 | % | 2.1 | % | 3.3 | % | 35.7 | % | ||||||||||
Impact of foreign exchange (pp) | — | — | 4.1 | — | 0.5 | |||||||||||||||
Net sales from acquired businesses (pp) | (31.9 | ) | (56.4 | ) | (13.6 | ) | (12.8 | ) | (36.0 | ) | ||||||||||
Net sales from divested businesses (pp) | (0.5 | ) | (0.2 | ) | 6.3 | 0.6 | 0.6 | |||||||||||||
Net sales from sold Trenton plant (pp) | — | — | — | 8.1 | 1.0 | |||||||||||||||
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Organic Net Sales ex Trenton Growth | 2.7 | % | 2.3 | % | (1.1 | )% | (0.8 | )% | 1.8 | % | ||||||||||
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Volume (Organic) | 1.6 | % | 3.2 | % | (2.2 | )% | (6.8 | )% | 0.9 | % | ||||||||||
Price/Mix | 1.1 | % | (0.9 | )% | 1.1 | % | 6.0 | % | 0.9 | % | ||||||||||
Q3 FY18 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | �� | Total Conagra Brands | ||||||||||||||
Net Sales | $ | 836.0 | $ | 688.5 | $ | 223.4 | $ | 246.6 | $ | 1,994.5 | ||||||||||
Net sales from divested businesses | (33.8 | ) | (13.0 | ) | (20.2 | ) | (12.7 | ) | (79.7 | ) | ||||||||||
Net sales from sold Trenton plant | — | — | — | (19.8 | ) | (19.8 | ) | |||||||||||||
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Organic Net Sales ex Trenton | $ | 802.2 | $ | 675.5 | $ | 203.2 | $ | 214.1 | $ | 1,895.0 | ||||||||||
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Q4 FY19 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 1,022.6 | $ | 1,099.2 | $ | 224.0 | $ | 267.4 | $ | 2,613.2 | ||||||||||
Impact of foreign exchange | — | — | 5.9 | — | 5.9 | |||||||||||||||
Net sales from acquired businesses | (278.2 | ) | (412.3 | ) | (30.7 | ) | (35.3 | ) | (756.5 | ) | ||||||||||
Net sales from divested businesses | — | (13.7 | ) | — | — | (13.7 | ) | |||||||||||||
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Organic Net Sales ex Trenton | $ | 744.4 | $ | 673.2 | $ | 199.2 | $ | 232.1 | $ | 1,848.9 | ||||||||||
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Year-over-year change - Net Sales | 27.9 | % | 59.1 | % | 7.3 | % | 0.1 | % | 32.9 | % | ||||||||||
Impact of foreign exchange (pp) | — | — | 2.8 | — | 0.3 | |||||||||||||||
Net sales from acquired businesses (pp) | (34.8 | ) | (59.7 | ) | (14.7 | ) | (13.4 | ) | (38.5 | ) | ||||||||||
Net sales from divested businesses (pp) | 4.6 | — | 10.2 | 4.7 | 3.6 | |||||||||||||||
Net sales from sold Trenton plant (pp) | — | — | — | 7.3 | 1.0 | |||||||||||||||
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Organic Net Sales ex Trenton Growth | (2.3 | )% | (0.6 | )% | 5.6 | % | (1.3 | )% | (0.7 | )% | ||||||||||
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Volume (Organic) | (1.0 | )% | (1.5 | )% | 5.2 | % | (6.2 | )% | (1.2 | )% | ||||||||||
Price/Mix | (1.3 | )% | 0.9 | % | 0.4 | % | 4.9 | % | 0.5 | % | ||||||||||
Q4 FY18 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 799.5 | $ | 690.7 | $ | 208.9 | $ | 267.1 | $ | 1,966.2 | ||||||||||
Net sales from divested businesses | (37.7 | ) | (13.9 | ) | (20.1 | ) | (12.5 | ) | (84.2 | ) | ||||||||||
Net sales from sold Trenton plant | — | — | — | (19.5 | ) | (19.5 | ) | |||||||||||||
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Organic Net Sales ex Trenton | $ | 761.8 | $ | 676.8 | $ | 188.8 | $ | 235.1 | $ | 1,862.5 | ||||||||||
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3
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Net Sales and Reconciliation of Organic Net Sales to Net Sales
(dollars in millions)
FY19 YTD | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 3,923.6 | $ | 3,735.4 | $ | 864.4 | $ | 1,015.0 | $ | 9,538.4 | ||||||||||
Impact of foreign exchange | — | — | 30.2 | — | 30.2 | |||||||||||||||
Net sales from acquired businesses | (688.0 | ) | (957.1 | ) | (74.6 | ) | (78.6 | ) | (1,798.3 | ) | ||||||||||
Net sales from divested businesses | (115.9 | ) | (56.7 | ) | (21.2 | ) | (34.2 | ) | (228.0 | ) | ||||||||||
Net sales from sold Trenton plant | — | — | — | (2.0 | ) | (2.0 | ) | |||||||||||||
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Organic Net Sales ex Trenton | $ | 3,119.7 | $ | 2,721.6 | $ | 798.8 | $ | 900.2 | $ | 7,540.3 | ||||||||||
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Year-over-year change - Net Sales | 19.6 | % | 35.7 | % | 2.5 | % | (4.3 | )% | 20.2 | % | ||||||||||
Impact of foreign exchange (pp) | — | — | 3.7 | — | 0.4 | |||||||||||||||
Net sales from acquired businesses (pp) | (21.0 | ) | (34.8 | ) | (8.8 | ) | (7.4 | ) | (22.7 | ) | ||||||||||
Net sales from divested businesses (pp) | 1.2 | (0.1 | ) | 6.3 | 1.7 | 1.3 | ||||||||||||||
Net sales from sold Trenton plant (pp) | — | — | — | 7.0 | 1.0 | |||||||||||||||
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Organic Net Sales ex Trenton Growth | (0.2 | )% | 0.8 | % | 3.7 | % | (3.0 | )% | 0.2 | % | ||||||||||
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Volume (Organic) | (0.3 | )% | 0.5 | % | 2.0 | % | (7.4 | )% | (0.6 | )% | ||||||||||
Price/Mix | 0.1 | % | 0.3 | % | 1.7 | % | 4.4 | % | 0.8 | % | ||||||||||
FY18 YTD | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Total Conagra Brands | |||||||||||||||
Net Sales | $ | 3,281.0 | $ | 2,753.0 | $ | 843.5 | $ | 1,060.8 | $ | 7,938.3 | ||||||||||
Net sales from divested businesses | (156.4 | ) | (52.7 | ) | (73.4 | ) | (53.4 | ) | (335.9 | ) | ||||||||||
Net sales from sold Trenton plant | — | — | — | (79.1 | ) | (79.1 | ) | |||||||||||||
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Organic Net Sales ex Trenton | $ | 3,124.6 | $ | 2,700.3 | $ | 770.1 | $ | 928.3 | $ | 7,523.3 | ||||||||||
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4
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Operating Profit and Reconciliation of Adjusted Operating Profit to Operating Profit
(dollars in millions)
Q1 FY19 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 178.6 | $ | 95.5 | $ | 37.3 | $ | 27.6 | $ | (80.8 | ) | $ | 258.2 | |||||||||||
Restructuring plans | 0.1 | — | 0.2 | — | 0.9 | 1.2 | ||||||||||||||||||
Gain on sale of Del Monte business | — | — | (13.3 | ) | — | — | (13.3 | ) | ||||||||||||||||
Acquisitions and divestitures | 0.6 | — | 2.9 | — | 7.5 | 11.0 | ||||||||||||||||||
Integration costs | — | — | — | — | 4.3 | 4.3 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | 6.4 | 6.4 | ||||||||||||||||||
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Adjusted Operating Profit | $ | 179.3 | $ | 95.5 | $ | 27.1 | $ | 27.6 | $ | (61.7 | ) | $ | 267.8 | |||||||||||
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Operating Profit Margin | 23.2 | % | 15.0 | % | 19.2 | % | 11.8 | % | 14.1 | % | ||||||||||||||
Adjusted Operating Profit Margin | 23.3 | % | 15.0 | % | 14.0 | % | 11.8 | % | 14.6 | % | ||||||||||||||
Year-over-year % change - Operating Profit | 1.4 | % | (6.4 | )% | 97.4 | % | 19.2 | % | 32.9 | % | (0.5 | )% | ||||||||||||
Year-over year % change - Adjusted Operating Profit | (2.1 | )% | (6.3 | )% | 43.4 | % | 19.2 | % | 24.6 | % | (3.5 | )% | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit | (129 | ) bps | (162 | ) bps | 409 | bps | 256 | bps | (79 | ) bps | ||||||||||||||
Q1 FY18 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 176.2 | $ | 101.9 | $ | 18.9 | $ | 23.2 | $ | (60.8 | ) | $ | 259.4 | |||||||||||
Restructuring plans | 6.2 | — | — | — | 5.2 | 11.4 | ||||||||||||||||||
Acquisitions and divestitures | 0.8 | — | — | — | — | 0.8 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | 6.0 | 6.0 | ||||||||||||||||||
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Adjusted Operating Profit | $ | 183.2 | $ | 101.9 | $ | 18.9 | $ | 23.2 | $ | (49.6 | ) | $ | 277.6 | |||||||||||
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Operating Profit Margin | 23.6 | % | 16.6 | % | 9.9 | % | 9.2 | % | 14.4 | % | ||||||||||||||
Adjusted Operating Profit Margin | 24.6 | % | 16.6 | % | 9.9 | % | 9.2 | % | 15.4 | % | ||||||||||||||
Q2 FY19 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 219.6 | $ | 156.8 | $ | 22.5 | $ | 34.4 | $ | (243.4 | ) | $ | 189.9 | |||||||||||
Restructuring plans | 2.1 | 0.1 | 3.8 | — | 104.9 | 110.9 | ||||||||||||||||||
Adjustment to gain on sale of Del Monte business | — | — | 0.1 | — | — | 0.1 | ||||||||||||||||||
Acquisitions and divestitures | 0.3 | — | — | — | 90.2 | 90.5 | ||||||||||||||||||
Integration costs | — | — | — | — | 4.6 | 4.6 | ||||||||||||||||||
Inventory fair value mark-up rollout | 11.9 | 9.9 | 2.6 | — | — | 24.4 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | (2.8 | ) | (2.8 | ) | ||||||||||||||||
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Adjusted Operating Profit | $ | 233.9 | $ | 166.8 | $ | 29.0 | $ | 34.4 | $ | (46.5 | ) | $ | 417.6 | |||||||||||
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Operating Profit Margin | 21.9 | % | 17.3 | % | 10.3 | % | 13.3 | % | 8.0 | % | ||||||||||||||
Adjusted Operating Profit Margin | 23.4 | % | 18.4 | % | 13.3 | % | 13.3 | % | 17.5 | % | ||||||||||||||
Year-over-year % change - Operating Profit | 10.0 | % | 22.1 | % | 11.6 | % | (27.9 | )% | 290.4 | % | (43.1 | )% | ||||||||||||
Year-over year % change - Adjusted Operating Profit | 10.6 | % | 29.9 | % | 37.5 | % | (27.9 | )% | (30.9 | )% | 22.3 | % | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit | (13 | ) bps | 146 | bps | 370 | bps | (283 | ) bps | 181 | bps | ||||||||||||||
Q2 FY18 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 199.5 | $ | 128.5 | $ | 20.2 | $ | 47.7 | $ | (62.4 | ) | $ | 333.5 | |||||||||||
Restructuring plans | 4.0 | — | 0.9 | — | 2.2 | 7.1 | ||||||||||||||||||
Acquisitions and divestitures | 7.8 | — | — | — | — | 7.8 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | (7.1 | ) | (7.1 | ) | ||||||||||||||||
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Adjusted Operating Profit | $ | 211.3 | $ | 128.5 | $ | 21.1 | $ | 47.7 | $ | (67.3 | ) | $ | 341.3 | |||||||||||
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Operating Profit Margin | 22.2 | % | 16.9 | % | 9.2 | % | 16.1 | % | 15.3 | % | ||||||||||||||
Adjusted Operating Profit Margin | 23.5 | % | 16.9 | % | 9.6 | % | 16.1 | % | 15.7 | % |
5
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Operating Profit and Reconciliation of Adjusted Operating Profit to Operating Profit
(dollars in millions)
Q3 FY19 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 225.0 | $ | 189.1 | $ | 29.9 | $ | 36.8 | $ | (62.6 | ) | $ | 418.2 | |||||||||||
Restructuring plans | 3.0 | 2.1 | (0.1 | ) | — | 33.4 | 38.4 | |||||||||||||||||
Acquisitions and divestitures | 0.1 | — | — | — | 2.3 | 2.4 | ||||||||||||||||||
Inventory fair valuemark-up rollout | 17.8 | 10.8 | (1.7 | ) | — | — | 26.9 | |||||||||||||||||
Novation of a legacy guarantee | — | — | — | — | (27.3 | ) | (27.3 | ) | ||||||||||||||||
Fair value adjustment of cash settleable equity awards issued in connection with Pinnacle acquisition | — | — | — | — | (18.6 | ) | (18.6 | ) | ||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | 0.2 | 0.2 | ||||||||||||||||||
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Adjusted Operating Profit | $ | 245.9 | $ | 202.0 | $ | 28.1 | $ | 36.8 | $ | (72.6 | ) | $ | 440.2 | |||||||||||
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Operating Profit Margin | 19.9 | % | 17.3 | % | 13.1 | % | 14.4 | % | 15.4 | % | ||||||||||||||
Adjusted Operating Profit Margin | 21.8 | % | 18.5 | % | 12.3 | % | 14.4 | % | 16.3 | % | ||||||||||||||
Year-over-year % change - Operating Profit | 28.8 | % | 50.0 | % | 1.3 | % | 47.3 | % | (42.3 | )% | 69.5 | % | ||||||||||||
Year-over year % change - Adjusted Operating Profit | 38.6 | % | 59.3 | % | (5.3 | )% | 47.3 | % | 20.3 | % | 47.5 | % | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit | 55 | bps | 4 | bps | (97 | ) bps | 430 | bps | 130 | bps | ||||||||||||||
Q3 FY18 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 174.7 | $ | 126.1 | $ | 29.5 | $ | 24.9 | $ | (108.5 | ) | $ | 246.7 | |||||||||||
Restructuring plans | 0.4 | 0.1 | 0.2 | — | 14.0 | 14.7 | ||||||||||||||||||
Acquisitions and divestitures | 2.4 | 0.7 | — | — | — | 3.1 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | (0.8 | ) | (0.8 | ) | ||||||||||||||||
Early exit of an unfavorable lease contract by purchasing the building | — | — | — | — | 34.9 | 34.9 | ||||||||||||||||||
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Adjusted Operating Profit | $ | 177.5 | $ | 126.9 | $ | 29.7 | $ | 24.9 | $ | (60.4 | ) | $ | 298.6 | |||||||||||
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Operating Profit Margin | 20.9 | % | 18.3 | % | 13.2 | % | 10.1 | % | 12.4 | % | ||||||||||||||
Adjusted Operating Profit Margin | 21.2 | % | 18.4 | % | 13.3 | % | 10.1 | % | 15.0 | % | ||||||||||||||
Q4 FY19 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 139.4 | $ | 203.7 | $ | 10.1 | $ | 35.5 | $ | (75.4 | ) | $ | 313.3 | |||||||||||
Restructuring plans | 0.9 | 0.7 | 1.0 | — | 28.3 | 30.9 | ||||||||||||||||||
Intangible impairment charges | 76.5 | — | 13.1 | — | — | 89.6 | ||||||||||||||||||
Acquisitions and divestitures | — | 0.7 | — | — | 1.6 | 2.3 | ||||||||||||||||||
Inventory fair valuemark-up rollout | 0.5 | 1.2 | — | — | — | 1.7 | ||||||||||||||||||
Legal matters | — | — | �� | — | — | (39.1 | ) | (39.1 | ) | |||||||||||||||
Gain on divestiture of businesses | (33.1 | ) | (23.1 | ) | — | — | — | (56.2 | ) | |||||||||||||||
Fair value adjustment of cash settleable equity awards issued in connection with Pinnacle acquisition | — | — | — | — | 3.5 | 3.5 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | (2.0 | ) | (2.0 | ) | ||||||||||||||||
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Adjusted Operating Profit | $ | 184.2 | $ | 183.2 | $ | 24.2 | $ | 35.5 | $ | (83.1 | ) | $ | 344.0 | |||||||||||
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Operating Profit Margin | 13.6 | % | 18.5 | % | 4.5 | % | 13.3 | % | 12.0 | % | ||||||||||||||
Adjusted Operating Profit Margin | 18.0 | % | 16.7 | % | 10.8 | % | 13.3 | % | 13.2 | % | ||||||||||||||
Year-over-year % change - Operating Profit | (19.0 | )% | 65.6 | % | (43.6 | )% | 25.8 | % | (66.8 | )% | 176.0 | % | ||||||||||||
Year-over year % change - Adjusted Operating Profit | 2.5 | % | 49.0 | % | 26.8 | % | 25.8 | % | 8.8 | % | 25.7 | % | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit | (447 | ) bps | (114 | ) bps | 166 | bps | 272 | bps | (76 | ) bps | ||||||||||||||
Q4 FY18 | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 172.1 | $ | 122.9 | $ | 17.9 | $ | 28.3 | $ | (227.7 | ) | $ | 113.5 | |||||||||||
Restructuring plans | 3.5 | — | 0.4 | — | 0.9 | 4.8 | ||||||||||||||||||
Intangible impairment charges | 4.0 | — | 0.8 | — | — | 4.8 | ||||||||||||||||||
Acquisitions and divestitures | 0.4 | — | — | — | 3.6 | 4.0 | ||||||||||||||||||
Legal matters | — | — | — | — | 151.0 | 151.0 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | (4.3 | ) | (4.3 | ) | ||||||||||||||||
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Adjusted Operating Profit | $ | 180.0 | $ | 122.9 | $ | 19.1 | $ | 28.3 | $ | (76.5 | ) | $ | 273.8 | |||||||||||
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Operating Profit Margin | 21.5 | % | 17.8 | % | 8.6 | % | 10.6 | % | 5.8 | % | ||||||||||||||
Adjusted Operating Profit Margin | 22.5 | % | 17.8 | % | 9.1 | % | 10.6 | % | 13.9 | % |
6
Conagra Brands, Inc.
Recast Historical Financial Information (Unaudited)
Operating Profit and Reconciliation of Adjusted Operating Profit to Operating Profit
(dollars in millions)
FY19 YTD | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 762.6 | $ | 645.1 | $ | 99.8 | $ | 134.3 | $ | (462.2 | ) | $ | 1,179.6 | |||||||||||
Restructuring plans | 6.1 | 2.9 | 4.9 | — | 167.5 | 181.4 | ||||||||||||||||||
Intangible impairment charges | 76.5 | — | 13.1 | — | — | 89.6 | ||||||||||||||||||
Gain on divestiture of businesses | (33.1 | ) | (23.1 | ) | (13.2 | ) | — | — | (69.4 | ) | ||||||||||||||
Acquisitions and divestitures | 1.0 | 0.7 | 2.9 | — | 101.6 | 106.2 | ||||||||||||||||||
Integration costs | — | — | — | — | 8.9 | 8.9 | ||||||||||||||||||
Inventory fair valuemark-up rollout | 30.2 | 21.9 | 0.9 | — | — | 53.0 | ||||||||||||||||||
Novation of a legacy guarantee | — | — | — | — | (27.3 | ) | (27.3 | ) | ||||||||||||||||
Legal matters | — | — | — | — | (39.1 | ) | (39.1 | ) | ||||||||||||||||
Fair value adjustment of cash settleable equity awards issued in connection with Pinnacle acquisition | — | — | — | — | (15.1 | ) | (15.1 | ) | ||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | 1.8 | 1.8 | ||||||||||||||||||
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Adjusted Operating Profit | $ | 843.3 | $ | 647.5 | $ | 108.4 | $ | 134.3 | $ | (263.9 | ) | $ | 1,469.6 | |||||||||||
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Operating Profit Margin | 19.4 | % | 17.3 | % | 11.5 | % | 13.2 | % | 12.4 | % | ||||||||||||||
Adjusted Operating Profit Margin | 21.5 | % | 17.3 | % | 12.5 | % | 13.2 | % | 15.4 | % | ||||||||||||||
Year-over-year % change - Operating Profit | 5.5 | % | 34.6 | % | 15.4 | % | 8.2 | % | 0.6 | % | 23.8 | % | ||||||||||||
Year-over year % change - Adjusted Operating Profit | 12.2 | % | 34.9 | % | 22.1 | % | 8.2 | % | 4.1 | % | 23.4 | % | ||||||||||||
Year-over-year bps change - Adjusted Operating Profit | (142 | ) bps | (11 | ) bps | 201 | bps | 153 | bps | 40 | bps | ||||||||||||||
FY18 YTD | Grocery & Snacks | Refrigerated & Frozen | International | Foodservice | Corporate Expense | Total Conagra Brands | ||||||||||||||||||
Operating Profit | $ | 722.5 | $ | 479.4 | $ | 86.5 | $ | 124.1 | $ | (459.4 | ) | $ | 953.1 | |||||||||||
Restructuring plans | 14.1 | 0.1 | 1.5 | — | 22.3 | 38.0 | ||||||||||||||||||
Intangible impairment charges | 4.0 | — | 0.8 | — | — | 4.8 | ||||||||||||||||||
Acquisitions and divestitures | 11.4 | 0.7 | — | — | 3.6 | 15.7 | ||||||||||||||||||
Legal matters | — | — | — | — | 151.0 | 151.0 | ||||||||||||||||||
Early exit of an unfavorable lease contract by purchasing the building | — | — | — | — | 34.9 | 34.9 | ||||||||||||||||||
Corporate hedging derivative losses (gains) | — | — | — | — | (6.2 | ) | (6.2 | ) | ||||||||||||||||
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Adjusted Operating Profit | $ | 752.0 | $ | 480.2 | $ | 88.8 | $ | 124.1 | $ | (253.8 | ) | $ | 1,191.3 | |||||||||||
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Operating Profit Margin | 22.0 | % | 17.4 | % | 10.3 | % | 11.7 | % | 12.0 | % | ||||||||||||||
Adjusted Operating Profit Margin | 22.9 | % | 17.4 | % | 10.5 | % | 11.7 | % | 15.0 | % |
7