Q3 2025 Conagra Brands Inc Earnings Call - Pre-recorded

April 3, 2025

Thank you for listening to our prepared remarks for the Conagra brands third quarter fiscal 2025 earnings at.

Matthew Neisius: Q3. Good morning. Thank you for listening to our prepared remarks for the Conagra Brands' third quarter fiscal 2025 earnings. At 9:30AM Eastern this morning, we will hold a separate live question and answer session on today's results, which you can access via webcast on our Investor Relations website. Our press release, presentation materials, and a transcript of these prepared remarks are also available there. I'm joined this morning by Sean Connolly, our CEO, and Dave Marburger, our CFO. We will be making some forward-looking statements today, and while we are making those statements in good faith based on current information, we do not have any guarantee about the results we will achieve. Descriptions of our risk factors are included in our filings with the SEC. We will also be discussing some non-GAAP financial measures.

Unknown Executive: Good morning. Thank you for listening to our prepared remarks for the Conagra Brands third quarter fiscal 2025 earnings.

At 930 Eastern this morning, we will hold a separate live question and answer session on today's results, which you can access via webcast on our Investor Relations website.

Unknown Executive: At 930 Eastern this morning, we will hold a separate live question and answer session on today's results, which you can access via webcast on our Investor Relations website. Our press release, presentation materials, and a transcript of these prepared remarks are also available there.

Our press release presentation materials and a transcript of these prepared remarks are also available there.

Shaun Connolly: I'm joined this morning by Shaun Connolly, our CEO and Dave <unk> our CFO.

Matthew Neisius: I'm joined this morning by Sean Connolly, our CEO, and Dave Marberger, our CFO.

Shaun Connolly: We will be making some forward looking statements today and while were making those statements in good faith based on current information, we do not have any guarantee about the results we will achieve.

Unknown Executive: We will be making some forward-looking statements today, and while we are making those statements in good faith based on current information, we do not have any guarantee about the results we will achieve. Descriptions of our risk factors are included in our filings with the SEC. We will also be discussing some non-GAAP financial measures.

Shaun Connolly: Descriptions of risk factors are included in our filings with the SEC.

Shaun Connolly: We will also be discussing some non-GAAP financial measures. Please see the earnings release and the presentation materials for GAAP to non-GAAP reconciliations and information on our comparability items, both of which can be found in the Investor Relations section of our website.

Matthew Neisius: Please see the earnings release and the presentation materials for GAAP to non-GAAP reconciliations and information on our comparability items, both of which can be found in the Investor Relations section of our website. I'll now turn the call over to Sean.

Please see the earnings release and the presentation materials for GAAP to non-GAAP reconciliations and information on our comparability items, both of which can be found in the Investor Relations section of our website. I'll now turn the call over to Sean.

Unknown Executive: Please see the earnings release and the presentation materials for GAAP to non-GAAP reconciliations and information on our comparability items, both of which can be found in the Investor Relations section of our website.

Sean: I'll now turn the call over to Sean.

Sean: Thanks, Matthew and good morning, everyone. Thank you all for joining our third quarter fiscal 2025 earnings call let's.

Sean Connolly: I'll now turn the call over to Sean. Thanks, Matthew. And good morning, everyone. Thank you all for joining our third quarter fiscal 2025 earnings call. Let's begin on slide four. Third quarter performance was consistent with the expectations we articulated in February during Cagney. Strong consumption trends and share performance, reflecting the continued strength and resilience of our brand. Shipments lagged behind consumption during the third quarter, in part due to the discrete supply constraints we announced in mid-February. As a reminder, we experienced supply challenges in two product frozen meals containing chicken and frozen vegetables, which prevented us from fully servicing demand during the quarter.

Sean Connolly: Thanks, Matthew, and good morning, everyone. Thank you all for joining our third quarter fiscal 2025 earnings call. Let's begin on Slide 4. Our third quarter performance was consistent with the expectations we articulated in February during CAGNY, with strong consumption trends and share performance reflecting the continued strength and resilience of our brands. Shipments lagged behind consumption during the third quarter, in part due to the discrete supply constraints we announced in mid-February. As a reminder, we experienced supply challenges in two product platforms, frozen meals containing chicken and frozen vegetables, which prevented us from fully servicing demand during the quarter. Through continued investments in infrastructure and strategic partnerships, we're making solid progress to restore inventory and improve customer service levels across these key product platforms.

Sean: Let's begin on slide four.

Sean: Our third quarter performance was consistent with the expectations. We articulated in February during Cagny with strong consumption trends and share performance, reflecting the continued strength and resilience of our brands.

Sean: Shipments lagged behind consumption during the third quarter in part due to the discrete supply constraints, we announced in mid February.

Sean: As a reminder, we experienced supply challenges in two product platforms.

Sean: <unk> meals containing chicken and frozen vegetables, which prevented us from fully servicing demand during the quarter.

Sean: Through continued investments in infrastructure and strategic partnerships, we're making solid progress to restore inventory and improve customer service levels across these key product platforms.

Sean Connolly: Through continued investments in infrastructure and strategic partnerships, we're making solid progress to restore inventory and improve customer service levels across these key product platforms. fiscal 2025 guidance remains unchanged. As we continue to closely monitor the dynamic external environment, including tariffs and trade impacts, regulatory and policy changes, inflation, and shifts in consumer sentiment. Amid this evolving landscape, we remain focused on strong execution and operating with agility to drive sustainable success. Today we'll detail the trends in our business, starting with our strong consumption trajectory on slide five. As we previously communicated, Conagra has been strategically investing behind our brands to drive volume recovery following the challenged consumer environment brought on by the inflation super cycle.

Sean: Our fiscal 2025 guidance remains unchanged as we continue to closely monitor the dynamic external environment, including tariffs and trade impacts regulatory and policy changes inflation and shifts in consumer sentiment.

Sean Connolly: Our fiscal 2025 guidance remains unchanged as we continue to closely monitor the dynamic external environment, including tariffs and trade impacts, regulatory and policy changes, inflation, and shifts in consumer sentiment. Amid this evolving landscape, we remain focused on strong execution and operating with agility to drive sustainable success. Today we'll detail the trends in our business, starting with our strong consumption trajectory on slide 5. As we previously communicated, Conagra has been strategically investing behind our brands to drive volume recovery following the challenged consumer environment brought on by the inflation supercycle. These charts illustrate the effectiveness of our investments as we've achieved six consecutive quarters of volume improvement. Our consumption returned to growth in Q2 and we built upon that in the third quarter, with domestic retail consumption volume increasing 1.1% compared to the prior year.

Our fiscal 2025 guidance remains unchanged as we continue to closely monitor the dynamic external environment, including tariffs and trade impacts, regulatory and policy changes, inflation, and shifts in consumer sentiment. Amid this evolving landscape, we remain focused on strong execution and operating with agility to drive sustainable success. Today we'll detail the trends in our business, starting with our strong consumption trajectory on slide 5. As we previously communicated, Conagra has been strategically investing behind our brands to drive volume recovery following the challenged consumer environment brought on by the inflation supercycle. These charts illustrate the effectiveness of our investments as we've achieved six consecutive quarters of volume improvement. Our consumption returned to growth in Q2 and we built upon that in the third quarter, with domestic retail consumption volume increasing 1.1% compared to the prior year.

Sean: Mid this evolving landscape, we remain focused on strong execution and operating with agility to drive sustainable success.

Sean: Today, we'll detail the trends in our business, starting with our strong consumption trajectory on slide five.

Sean: As we've previously communicated conagra has been strategically investing behind our brands to drive volume recovery. Following the challenged consumer environment brought on by the inflation Super cycle.

Sean: These charts illustrate the effectiveness of our investments as we've achieved six consecutive quarters of volume improvement our.

Sean Connolly: These charts illustrate the effectiveness of our investments, as we've achieved six consecutive quarters of volume improvement. Our consumption returned to growth in Q2, and we built upon that in the third quarter, with domestic retail consumption volume increasing 1.1% compared to the prior year. Importantly, our dollar sales performance is following a similar trend, continually rising to be nearly flat with our domestic retail segments during the third quarter. I'd like to spend a minute discussing the shipments versus consumption dynamics shown on slide six. As you can see, our shipments and consumption are typically closely aligned. In some periods, shipments are higher, while in others, consumption takes the lead, but it's rare to see a delta that exceeds one point.

Sean: Our consumption returned to growth in Q2, and we built upon that in the third quarter with domestic retail consumption volume, increasing one 1% compared to the prior year importantly.

Sean: Importantly, our dollar sales performance is following a similar trend continually rising to be nearly flat with our domestic retail segments during the third quarter.

Sean Connolly: Importantly, our dollar sales performance is following a similar trend, continually rising to be nearly flat with our domestic retail segments during the third quarter. I'd like to spend a minute discussing the shipments versus consumption dynamics shown on slide 6. As you can see, our shipments and consumption are typically closely aligned. In some periods shipments are higher, while in others consumption takes the lead. But it's rare to see a delta that exceeds one point. The third quarter was unique as consumption outpaced shipments by three points. This anomaly was largely due to the discrete supply constraints we already discussed. Consumer demand and resulting consumption remained strong, but we were unable to sufficiently service that demand, which disproportionately impacted our shipments.

Importantly, our dollar sales performance is following a similar trend, continually rising to be nearly flat with our domestic retail segments during the third quarter. I'd like to spend a minute discussing the shipments versus consumption dynamics shown on slide 6. As you can see, our shipments and consumption are typically closely aligned. In some periods shipments are higher, while in others consumption takes the lead. But it's rare to see a delta that exceeds one point. The third quarter was unique as consumption outpaced shipments by three points. This anomaly was largely due to the discrete supply constraints we already discussed. Consumer demand and resulting consumption remained strong, but we were unable to sufficiently service that demand, which disproportionately impacted our shipments.

Sean: I'd like to spend a minute discussing the shipments versus consumption dynamics shown on slide six.

Sean: As you can see our shipments and consumption are typically closely aligned in.

Sean: In some periods shipments are higher while in others consumption takes the lead but it's rare to see a delta that exceeds one point.

Sean: Third quarter was unique as consumption outpaced shipments by three points.

Sean Connolly: The third quarter was unique as consumption outpaced shipments by three points. This anomaly was largely due to the discrete supply constraints we already discussed. Consumer demand and resulting consumption remained strong, but we were unable to sufficiently service that demand, which disproportionately impacted our shipments. There were other factors that further contributed to this gap, including a notable increase in Swiss Miss consumption during the third quarter, given a delay in winter weather that shifted the demand cycle for that brand to later in the year than usual. If you take a step back, the timing of shipments can vary for a variety of reasons, but they ultimately align with consumption over time.

Sean: This anomaly was largely due to the discrete supply constraints, we already discussed.

Sean: Consumer demand and resulting consumption remained strong, but we were unable to sufficiently service that demand, which disproportionately impacted our shipments.

Sean: There were other factors that further contributed to this gap, including a notable increase in Swiss Miss consumption during the third quarter, given a delay in winter weather that shifted the demand cycle for that brand to later in the year than usual.

Sean Connolly: There were other factors that further contributed to this gap, including a notable increase in Swiss Miss consumption during Q3 given a delay in winter weather that shifted the demand cycle for that brand to later in the year than usual. If you take a step back, the timing of shipments can vary for a variety of reasons, but they ultimately align with consumption over time. That's why we believe consumption is the best indicator for underlying consumer demand and brand strength, and it's clear that the trajectory of our brands remains strong. That's true in absolute terms and when compared to the broader industry. As you can see on Slide 7, our share performance has been exceptional since we made the decision in the middle of fiscal 2024 to strategically enhance investments behind our brands.

There were other factors that further contributed to this gap, including a notable increase in Swiss Miss consumption during Q3 given a delay in winter weather that shifted the demand cycle for that brand to later in the year than usual. If you take a step back, the timing of shipments can vary for a variety of reasons, but they ultimately align with consumption over time. That's why we believe consumption is the best indicator for underlying consumer demand and brand strength, and it's clear that the trajectory of our brands remains strong. That's true in absolute terms and when compared to the broader industry. As you can see on Slide 7, our share performance has been exceptional since we made the decision in the middle of fiscal 2024 to strategically enhance investments behind our brands.

Sean: If you take a step back the timing of shipments can vary for a variety of reasons, but they ultimately align with consumption over time. That's why we believe consumption is the best indicator for underlying consumer demand and brand strength and it's clear that the trajectory of our brands remain strong.

Sean Connolly: That's why we believe consumption is the best indicator for underlying consumer demand and brand strength. And it's clear that the trajectory of our brands remains strong. That's true in absolute terms and when compared to the broader industry. As you can see on slide seven, our share performance has been exceptional since we made the decision in the middle of fiscal 24 to strategically enhance investments behind our brand. As of the third quarter of fiscal 25, 60% of Conagra's portfolio either held or gained volume share, a number that's particularly impressive considering the discrete supply challenges we faced during the quarter.

Sean: That's true in absolute terms and when compared to the broader industry.

Sean: As you can see on slide seven our share performance has been exceptional since we made the decision in the middle of fiscal 'twenty four to strategically enhance investments behind our brands.

Sean: As of the third quarter of fiscal 'twenty, 560% of conagra's portfolio, either held or gained volume share a number that is particularly impressive considering the discreet supply challenges we faced during the quarter.

Sean Connolly: As of Q3 of fiscal 2025, 60% of Conagra's portfolio either held or gained volume share, a number that's particularly impressive considering the discrete supply challenges we faced during the quarter, and our share performance continues to outpace our near end peer set. As shown here on Slide 8, we're outperforming our closest peer by 8 percentage points. This strong share performance speaks to the continued strength of our brands and the value our consumers place on our products. It's a testament to the hard work we put into executing with agility in a rapidly changing environment. Turning to Slide 9, you can see that the broader industry merchandising landscape continued to be rational as promotional activity was largely similar to the pre-COVID environment.

As of Q3 of fiscal 2025, 60% of Conagra's portfolio either held or gained volume share, a number that's particularly impressive considering the discrete supply challenges we faced during the quarter, and our share performance continues to outpace our near end peer set. As shown here on Slide 8, we're outperforming our closest peer by 8 percentage points. This strong share performance speaks to the continued strength of our brands and the value our consumers place on our products. It's a testament to the hard work we put into executing with agility in a rapidly changing environment. Turning to Slide 9, you can see that the broader industry merchandising landscape continued to be rational as promotional activity was largely similar to the pre-COVID environment.

Sean: And our share performance continues to outpace our near and peer set as shown here on slide eight we're outperforming our closest peer by eight percentage points.

Sean Connolly: And our share performance continues to outpace our near end peer set, as shown here on slide eight, we're outperforming our closest peer by eight percentage points. This strong share performance speaks to the continued strength of our brands and the value our consumers place on our products. Testament to the hard work we put into executing with agility in a rapidly changing environment. Turning to slide nine, you can see that the broader industry merchandising landscape continued to be rational, as promotional activity was largely similar to the pre-COVID environment. As I've mentioned in prior quarters, our volume progress and strong share gains have been driven by our disciplined approach to brand building, not by heavy discounting.

Sean: This strong share performance speaks to the continued strength of our brands and the value our consumers place on our products.

Sean: It's a testament to the hard work, we put into executing with agility and a rapidly changing environment.

Turning to slide nine you can see that the broader industry merchandising landscape continued to be rational as promotional activity was largely similar to the pre COVID-19 environment.

Sean: As I've mentioned in prior quarters, our volume progress and strong share gains have been driven by our disciplined approach to brand building not by heavy discounting and that remains true today.

Sean Connolly: As I've mentioned in prior quarters, our volume progress and strong share gains have been driven by our disciplined approach to brand building, not by heavy discounting, and that remains true today. We continue to promote less than pre-COVID levels, and when compared to the broader industry, our share of volume sales on promotion have remained below our closest peers both today and in the pre-pandemic period. When we do promote, the discounts are rational and remain lower than both pre-COVID levels as well as our nearest peers. Put simply, Conagra remains less reliant on promotions to drive volume and we maintain a disciplined approach to prioritize the long-term health of our brands, ensuring sustainable success and value for our shareholders.

As I've mentioned in prior quarters, our volume progress and strong share gains have been driven by our disciplined approach to brand building, not by heavy discounting, and that remains true today. We continue to promote less than pre-COVID levels, and when compared to the broader industry, our share of volume sales on promotion have remained below our closest peers both today and in the pre-pandemic period. When we do promote, the discounts are rational and remain lower than both pre-COVID levels as well as our nearest peers. Put simply, Conagra remains less reliant on promotions to drive volume and we maintain a disciplined approach to prioritize the long-term health of our brands, ensuring sustainable success and value for our shareholders.

Sean: We continue to promote less than pre COVID-19 levels, and when compared to the broader industry. Our share of volume sales on promotion have remained below our closest peers, both today and in the pre pandemic period.

Sean Connolly: And that remains true today. We continue to promote less than pre-COVID levels. And when compared to the broader industry, our share of volume sales on promotion have remained below our closest peers, both today and in the pre-pandemic period. And when we do promote, the discounts are rational and remain lower than both pre-COVID levels as well as our near-end peers. Put simply, Conagra remains less reliant on promotions to drive volume, and we maintain a disciplined approach to prioritize the long-term health of our brands, ensuring sustainable success and value for our shareholders.

Sean: And when we do promote the discounts are rational and remained lower than both pre COVID-19 levels as well as our near end peers put simply conagra remains less reliant on promotions to drive volume and we maintain a disciplined approach to prioritize the long term health of our brands, ensuring sustainable success and value for our.

Shareholders.

Sean: Now turning to our consumer domains, starting with frozen on slide 10 <unk>.

Sean Connolly: Now turning to our consumer domains, starting with Frozen on slide 10. Despite the previously mentioned supply chain challenges, Conagra's frozen consumption remains strong. Our Q3 retail volume sales have grown for three consecutive quarters. Importantly, the frozen department continues to outpace the total edible category and Conagra is driving category growth. Taking a closer look at our largest frozen category single-serve meals on slide 11, Conagra represents the majority of volume in the $6.4 billion single-serve meal category, an outstanding achievement in today's dynamic and competitive environment. Our enhanced investments have enabled us to drive steady share improvement in this category, with our third quarter volume share position up 0.6% over the year-ago period.

Sean Connolly: Now turning to our consumer domains starting with Frozen on Slide 10, despite the previously mentioned supply chain challenges, Conagra's frozen consumption remains strong. Our Q3 retail volume sales have grown for three consecutive quarters. Importantly, the frozen department continues to outpace the total edible category, and Conagra is driving category growth. Taking a closer look at our largest frozen category, Single Serve Meals on Slide 11, Conagra represents the majority of volume in the $6.4 billion Single Serve Meals category, an outstanding achievement in today's dynamic and competitive environment. Our enhanced investments have enabled us to drive steady share improvement in this category with our third quarter volume share position up 0.6% over the year ago period. Moving to our snacking domain on Slide 12, our snacking portfolio continues to perform well, reporting strong volume sales growth of 3.8% at the end of the fiscal third quarter.

Now turning to our consumer domains starting with Frozen on Slide 10, despite the previously mentioned supply chain challenges, Conagra's frozen consumption remains strong. Our Q3 retail volume sales have grown for three consecutive quarters. Importantly, the frozen department continues to outpace the total edible category, and Conagra is driving category growth. Taking a closer look at our largest frozen category, Single Serve Meals on Slide 11, Conagra represents the majority of volume in the $6.4 billion Single Serve Meals category, an outstanding achievement in today's dynamic and competitive environment. Our enhanced investments have enabled us to drive steady share improvement in this category with our third quarter volume share position up 0.6% over the year ago period. Moving to our snacking domain on Slide 12, our snacking portfolio continues to perform well, reporting strong volume sales growth of 3.8% at the end of the fiscal third quarter.

Sean: Despite the previously mentioned supply chain challenges conagra's frozen consumption remains strong our Q3 retail volume sales have grown for three consecutive quarters.

Sean: Importantly, the frozen Department continues to outpace the total edible category and Conagra is driving category growth.

Sean: Taking a closer look at our largest frozen category single serve meals on slide 11, Conagra represents the majority of volume in the $6 4 billion single serve meal categories.

Sean: Outstanding achievement in today's dynamic and competitive environment.

Sean: Our enhanced investments have enabled us to drive steady share improvement in this category with our third quarter volume share position up <unk>, 6% over the year ago period.

Sean: Moving to our snacking domain on slide 12, our snacking portfolio continues to perform well reporting strong volume sales growth of three 8% at the end of the fiscal third quarter.

Sean Connolly: Moving to our snacking domain on slide 12, our snacking portfolio continues to perform well, reporting strong volume sales growth of 3.8% at the end of the fiscal third quarter. In addition to Swiss Miss, which I mentioned earlier, we continue to benefit from our advantaged position spanning permissible snacking subspaces like seeds and popcorn, where our brands saw increases in volume sales in the third quarter.

Sean: In addition to Swiss Miss which I mentioned earlier, we continue to benefit from our advantaged position spanning permissible snacking sub spaces like seeds, and popcorn, where our brands saw increases in volume sales in the third quarter.

Sean Connolly: In addition to Swiss Miss, which I mentioned earlier, we continue to benefit from our advantaged position spanning permissible snacking subspaces like seeds and popcorn, where our brands saw increases in volume sales in the third quarter. Turning to Staples on Slide 13, we continue to see encouraging trends delivering sequential volume sales improvement in staples during the third quarter. Q3 volume sales were driven by a strong holiday season for Reddi-wip as well as our table spreads, and tomato platforms. Turning now to Slide 14, as I want to provide an update on the progress we've made in addressing the chicken and vegetable supply challenges I mentioned earlier that have impacted both sales and profit. Most notably in our third quarter, we're actively investing to add capacity, restore service levels, and rebuild inventory, which will help offset some of these impacts in the coming quarters.

In addition to Swiss Miss, which I mentioned earlier, we continue to benefit from our advantaged position spanning permissible snacking subspaces like seeds and popcorn, where our brands saw increases in volume sales in the third quarter. Turning to Staples on Slide 13, we continue to see encouraging trends delivering sequential volume sales improvement in staples during the third quarter. Q3 volume sales were driven by a strong holiday season for Reddi-wip as well as our table spreads, and tomato platforms. Turning now to Slide 14, as I want to provide an update on the progress we've made in addressing the chicken and vegetable supply challenges I mentioned earlier that have impacted both sales and profit. Most notably in our third quarter, we're actively investing to add capacity, restore service levels, and rebuild inventory, which will help offset some of these impacts in the coming quarters.

Turning to Staples on slide 13, we continue to see encouraging trends delivering sequential volume sales improvement in staples. During the third quarter Q3 volume sales were driven by a strong holiday season for ready width as well as our table spreads and tomato platforms.

Sean Connolly: Turning to staples on slide 13, we continue to see encouraging trends delivering sequential volume sales improvement in staples during the third quarter. Q3 volume sales were driven by a strong holiday season for Ready Whip, as well as our table spreads and tomato platter.

Turning now to slide 14, as I want to provide an update on the progress we've made in addressing the chicken and vegetable supply challenges I mentioned earlier that have impacted both sales and profit most notably in our third quarter.

Sean Connolly: Turning now to slide 14, as I want to provide an update on the progress we've made in addressing the chicken and vegetable supply challenges I mentioned earlier that have impacted both sales and profit, most notably in our third quarter. We're actively investing to add capacity, restore service levels, and rebuild inventory, which will help offset some of these impacts in the coming quarters. For instance, we've secured additional vegetable volume for brands like Birdseye, which is helping us replenish inventory ahead of the Easter season. As we work through this, shipments in Q4 will benefit from this replenishment, although they will come at a higher cost.

Sean: We are actively investing to add capacity restore service levels and rebuild inventory, which will help offset some of these impacts in the coming quarters. For instance, we've secured additional vegetable volume for brands like birds eye, which is helping us replenish inventory ahead of the Easter season.

Sean Connolly: For instance, we've secured additional vegetable volume for brands like Birds Eye, which is helping us replenish inventory ahead of the Easter season. As we work through this, shipments in Q4 will benefit from this replenishment, although they will come at a higher cost. We're also making solid progress on the planned modernization of our chicken plant with completion expected in August. While we are incurring elevated transitory costs as we work through these issues, these investments are critical to getting our products into consumers' hands. As I noted earlier, we are closely monitoring the dynamic external environment we're operating in, including tariffs and trade impacts, regulatory and policy changes, inflationary pressures, and shifts in consumer confidence and spending to help navigate these issues.

For instance, we've secured additional vegetable volume for brands like Birds Eye, which is helping us replenish inventory ahead of the Easter season. As we work through this, shipments in Q4 will benefit from this replenishment, although they will come at a higher cost. We're also making solid progress on the planned modernization of our chicken plant with completion expected in August. While we are incurring elevated transitory costs as we work through these issues, these investments are critical to getting our products into consumers' hands. As I noted earlier, we are closely monitoring the dynamic external environment we're operating in, including tariffs and trade impacts, regulatory and policy changes, inflationary pressures, and shifts in consumer confidence and spending to help navigate these issues.

Sean: As we work through this shipments in Q4 will benefit from this replenishment, although they will come at a higher cost.

Sean: We're also making solid progress on the planned modernization of our chicken plant with completion expected in August.

Sean Connolly: We're also making solid progress on the planned modernization of our chicken plant with completion expected in August. While we are incurring elevated transitory costs as we work through these issues, these investments are critical to getting our products into consumers' hands. As I noted earlier, we are closely monitoring the dynamic external environment we're operating in, including tariffs and trade impacts, regulatory and policy changes, inflationary pressures, and shifts in consumer confidence and spending. to help navigate these issues, management is remaining agile and proactive as we continue to mine our productivity programs to ensure we are capturing all efficiency opportunities, including optimizing our manufacturing footprint.

Sean: While we are incurring elevated transitory costs as we work through these issues. These investments are critical to getting our products into consumers' hands.

Sean: As I noted earlier, we are closely monitoring the dynamic external environment, we're operating in including tariffs and trade impacts regulatory and policy changes inflationary pressures and shifts in consumer confidence and spending.

Sean: To help navigate these issues management is remaining agile and proactive as we continue to mine our productivity programs to ensure we are capturing all efficiency opportunities, including optimizing our manufacturing footprint.

Sean Connolly: Management is remaining agile and proactive as we continue to mine our productivity programs to ensure we are capturing all efficiency opportunities, including optimizing our manufacturing footprint. We also continue to look at portfolio reshaping for opportunities to drive long-term growth. And of course, we remain focused on developing products that offer consumers great value, taste, and function. Conagra's broad and varied portfolio offers buyers restaurant-quality experiences at home at a much greater value. Our frozen products are perfect for consumers looking to save money and enjoy a delicious meal. In addition, our focus on modern health attributes matches up well with consumers' increasing interest in eating healthier without sacrificing taste as the external environment continues to evolve. Our fiscal 2025 guidance remains unchanged from what we announced in February.

Management is remaining agile and proactive as we continue to mine our productivity programs to ensure we are capturing all efficiency opportunities, including optimizing our manufacturing footprint. We also continue to look at portfolio reshaping for opportunities to drive long-term growth. And of course, we remain focused on developing products that offer consumers great value, taste, and function. Conagra's broad and varied portfolio offers buyers restaurant-quality experiences at home at a much greater value. Our frozen products are perfect for consumers looking to save money and enjoy a delicious meal. In addition, our focus on modern health attributes matches up well with consumers' increasing interest in eating healthier without sacrificing taste as the external environment continues to evolve. Our fiscal 2025 guidance remains unchanged from what we announced in February.

Sean: We also continue to look at portfolio reshaping for opportunities to drive long term growth and of course, we remain focused on developing products that offer consumers great value taste and function.

Sean Connolly: We also continue to look at portfolio reshaping for opportunities to drive long-term growth. And of course, we remain focused on developing products that offer consumers great value, taste, and function. Conagra's broad and varied portfolio offers buyers restaurant quality experiences at home at a much greater value. Our frozen products are perfect for consumers looking to save money and enjoy a delicious meal. In addition, our focus on modern health attributes matches up well with consumers' increasing interest in eating healthier without sacrificing taste.

Sean: Conagra's broad and varied portfolio offers buyers restaurant quality experiences at home at a much greater value.

Sean: Our frozen products are perfect for consumers looking to save money and enjoy a delicious meal.

Sean: In addition, our focus on modern health attributes matches up well with consumers increasing interest in eating healthier without sacrificing taste.

Sean: As the external environment continues to evolve our fiscal 'twenty five guidance remains unchanged from what we announced in February.

Sean Connolly: As the external environment continues to evolve, our fiscal 25 guidance remains unchanged from what we announced in February. As a reminder, our Fiscal 25 Guidance reflects organic net sales of approximately minus 2%, adjusted operating margin of approximately 14.4%, and adjusted EPS of approximately $2.35. Despite ongoing volatility, we remain focused on strong execution and operating with agility to deliver long-term value for our shareholders.

Sean: As a reminder, our fiscal 'twenty five guidance reflects organic net sales of approximately minus 2%.

Sean Connolly: As a reminder, our fiscal 2025 guidance reflects organic net sales of approximately minus 2%, adjusted operating margin of approximately 14.4%, and adjusted EPS of approximately $2.35. Despite ongoing volatility, we remain focused on strong execution and operating with agility to deliver long term value for our shareholders. Thank you for your time and continued support. I'll now turn it over to Dave to walk through the financials in more detail.

As a reminder, our fiscal 2025 guidance reflects organic net sales of approximately minus 2%, adjusted operating margin of approximately 14.4%, and adjusted EPS of approximately $2.35. Despite ongoing volatility, we remain focused on strong execution and operating with agility to deliver long term value for our shareholders. Thank you for your time and continued support. I'll now turn it over to Dave to walk through the financials in more detail.

Sean: Adjusted operating margin of approximately 14, 4% and adjusted EPS of approximately $2 35.

Sean: Despite ongoing volatility we remain focused on strong execution and operating with agility to deliver long term value for our shareholders. Thank you for your time and continued support I'll now turn it over to Dave to walk through the financials in more detail.

Sean Connolly: Thank you for your time and continued support.

Dave Marberger: I'll now turn it over to Dave to walk through the financials in more detail. Thanks, Sean, and good morning, everyone. Slide 19 shows our financial results for key metrics in the quarter. Conagra's organic net sales were 2.9 billion in Q3, a 5.2% decline versus the prior year. Adjusted gross margin of 24.8% and adjusted operating margin of 12.7% were both down over the prior year. And adjusted earnings per share were 51 cents, down 18 cents versus a year ago. Slide 20 shows our third quarter net sales bridge. Total Conagra organic net sales decreased 5.2% over the previous year, with volumes down 3.1% and price mix down 2.1%.

Dave: Thanks, Sean and good morning, everyone.

Dave: Slide 19 shows our financial results for key metrics in the quarter.

Dave Marburger: Thanks, Sean, and good morning, everyone. Slide 19 shows our financial results for key metrics in the quarter. Conagra's organic net sales were $2.9 billion in Q3, a 5.2% decline versus the prior year. Adjusted gross margin of 24.8% and adjusted operating margin of 12.7% were both down over the prior year, and adjusted earnings per share were $0.51, down $0.18 versus year ago. Slide 20 shows our third quarter net sales bridge. Total Conagra organic net sales decreased 5.2% over the previous year with volumes down 3.1% and price mix down 2.1%. As we've discussed, organic net sales for the quarter were negatively impacted by supply constraints in our frozen meals with chicken and frozen vegetables platforms. In addition, we had a 70 basis point headwind from a change in estimate related to our trade expense.

Dave Marberger: Thanks, Sean, and good morning, everyone. Slide 19 shows our financial results for key metrics in the quarter. Conagra's organic net sales were $2.9 billion in Q3, a 5.2% decline versus the prior year. Adjusted gross margin of 24.8% and adjusted operating margin of 12.7% were both down over the prior year, and adjusted earnings per share were $0.51, down $0.18 versus year ago. Slide 20 shows our third quarter net sales bridge. Total Conagra organic net sales decreased 5.2% over the previous year with volumes down 3.1% and price mix down 2.1%. As we've discussed, organic net sales for the quarter were negatively impacted by supply constraints in our frozen meals with chicken and frozen vegetables platforms. In addition, we had a 70 basis point headwind from a change in estimate related to our trade expense.

Dave: Conagra's organic net sales were $2 9 billion in Q3.

Dave: A five 2% decline versus the prior year adjusted gross margin of 24, 8% and adjusted operating margin of 12, 7% were both down over the prior year and adjusted earnings per share were <unk> 51 down.

Dave: Down 18 versus year ago.

Dave: Slide 20 shows our third quarter net sales bridge.

Total conagra organic net sales decreased five 2% over the previous year with volumes down three 1% and price mix down two 1%.

Dave: As we've discussed organic net sales for the quarter were negatively impacted by supply constraints in our frozen meals with chicken and frozen vegetables platforms and.

Dave Marberger: As we've discussed, organic net sales for the quarter were negatively impacted by supply constraints in our frozen meals with chicken and frozen vegetables platform. In addition, we had a 70 basis point headwind from a change in estimate related to our trade expense accrual. foreign exchange with 70 basis points unfavorable due to the strength of the US dollar relative to the Canadian dollar and Mexican pesos. And as expected, reduced sales from our ATFL joint venture, which was sold in Q1 of fiscal 25, exceeded the additional net sales from our first quarter acquisition of Fatty Smoked Meat.

Dave: In addition, we had a 70 basis point headwind from a change in estimate related to our trade expense accrual.

Dave: Foreign exchange was 70 basis points unfavorable due to the strength of the U S dollar relative to the Canadian dollar and Mexican peso.

Dave Marburger: Accrual foreign exchange was 70 basis points unfavorable due to the strength of the US dollar relative to the Canadian dollar, and Mexican peso, and as expected, reduced sales from our ATFL joint venture, which was sold in Q1 of fiscal 2025, exceeded the additional net sales from our first quarter acquisition of Fatty Smoked Meats. Slide 21 shows the composition of net sales by segment in grocery and snacks. We delivered net sales of $1.2 billion, representing a 3.9% decline in organic growth versus the prior year driven by lower volumes and unfavorable price mix. Included in price mix is approximately 100 basis points of unfavorable product mix, and 80 basis points from the change in the trade estimate. Our refrigerated and frozen segment delivered $1.1 billion in net sales, down 7.2% versus the prior year.

Accrual foreign exchange was 70 basis points unfavorable due to the strength of the US dollar relative to the Canadian dollar, and Mexican peso, and as expected, reduced sales from our ATFL joint venture, which was sold in Q1 of fiscal 2025, exceeded the additional net sales from our first quarter acquisition of Fatty Smoked Meats. Slide 21 shows the composition of net sales by segment in grocery and snacks. We delivered net sales of $1.2 billion, representing a 3.9% decline in organic growth versus the prior year driven by lower volumes and unfavorable price mix. Included in price mix is approximately 100 basis points of unfavorable product mix, and 80 basis points from the change in the trade estimate. Our refrigerated and frozen segment delivered $1.1 billion in net sales, down 7.2% versus the prior year.

Dave: And as expected reduced sales from our <unk> joint venture, which was sold in Q1 of fiscal 'twenty five exceeded the additional net sales from our first quarter acquisition of fatty smoked meats.

Dave: Slide 21 shows the composition of net sales by segment.

Dave Marberger: Slide 21 shows the composition of Net Sales by Segment. and Grocery and Snacks, we delivered net sales of $1.2 billion, representing a 3.9% decline in organic growth versus the prior year, driven by lower volumes and unfavorable price mix. Included in price mix is approximately 100 basis points of unfavorable product mix, and 80 basis points from the change in the trade estimate. Our Refrigerated and Frozen segment delivered $1.1 billion in net sales, down 7.2% versus the prior year. Results for this segment were negatively impacted by the previously mentioned supply constraints, as well as targeted increases in retailer investments and approximately 80 basis points from the change in the trade estimate.

Dave: In grocery and snacks, we delivered net sales of $1 2 billion, representing a three 9% decline in organic growth versus the prior year driven.

Dave: Driven by lower volumes and unfavorable price mix.

Dave: Included in price mix as approximately 100 basis points of unfavorable product mix and 80 basis points from the change in the trade estimate.

Dave: Our refrigerated and frozen segment delivered $1 1 billion of net sales down seven 2% versus the prior year.

Dave: Results for the segment were negatively impacted by the previously mentioned supply constraints as well as targeted increases in retailer investments and approximately 80 basis points from the change in the trade estimate.

Dave Marburger: Results for the segment were negatively impacted by the previously mentioned supply constraints, as well as targeted increases in retailer investments and approximately 80 basis points from the change in the trade estimate. In our international segment, organic net sales declined 1.2% versus the prior year. Volume declines were partially offset by an increase in price mix following selective price increases across each of our international markets. Organic net sales in our foodservice business declined 6.3% over prior year as volume declines were partially offset by favorable price mix. Our foodservice business saw ongoing softness in commercial traffic during the quarter, partially impacted by colder weather and early calendar. Slide 25, the components of our Q3 adjusted operating margin bridge are shown on slide 22. Adjusted operating margin declined 369 basis points over the previous year to 12.7%.

Results for the segment were negatively impacted by the previously mentioned supply constraints, as well as targeted increases in retailer investments and approximately 80 basis points from the change in the trade estimate. In our international segment, organic net sales declined 1.2% versus the prior year. Volume declines were partially offset by an increase in price mix following selective price increases across each of our international markets. Organic net sales in our foodservice business declined 6.3% over prior year as volume declines were partially offset by favorable price mix. Our foodservice business saw ongoing softness in commercial traffic during the quarter, partially impacted by colder weather and early calendar. Slide 25, the components of our Q3 adjusted operating margin bridge are shown on slide 22. Adjusted operating margin declined 369 basis points over the previous year to 12.7%.

Dave: In our international segment organic net sales declined one 2% versus the prior year.

Dave Marberger: In our international segment, organic net sales declined 1.2% versus the prior year. Volume declines were partially offset by an increase in price mix following selective price increases across each of our international markets. Organic net sales in our food service business declined 6.3% over prior year. As volume declines, we're partially offset by favorable price mix. Our food service business saw ongoing softness in commercial traffic during the quarter, partially impacted by colder weather and early calendar 25. The components of our Q3 Adjusted Operating Margin Bridge are shown on slide 22. Adjusted operating margin declined 369 basis points over the previous year to 12.7%.

Dave: Volume declines were partially offset by an increase in price mix following selective price increases across each of our international markets.

Dave: Organic net sales in our foodservice business declined six 3% over prior year.

Dave: As volume declines were partially offset by favorable price mix.

Dave: Our foodservice business saw ongoing softness in commercial traffic during the quarter, partially impacted by colder weather in early calendar 'twenty five.

Dave: The components of our Q3 adjusted operating margin bridge are shown on slide 22.

Dave: Adjusted operating margin declined 369 basis points over the previous year to 12, 7%.

Dave: Price mix was a 150 basis point headwind, reflecting an increase in strategic investments in our domestic retail business the.

Dave Marburger: Price mix was a 150 basis points headwind reflecting an increase in strategic investments. In our domestic retail business, the change in the trade expense estimate was a headwind of approximately 50 basis points. Total cost of goods sold inflation increased to 4% in Q3, largely in line with our expectations. We remain pleased with the pace of savings generated by our productivity programs. However, the net benefit in Q3 was impacted by transitory costs related to our frozen supply constraints. We experienced short-term declines in operating leverage as lower production volumes negatively impacted margins by approximately 80 basis points. We also lapped one-time benefits recognized in last year's profit which negatively impacted Q3 operating margin versus the prior year by roughly 40 basis points.

Price mix was a 150 basis points headwind reflecting an increase in strategic investments. In our domestic retail business, the change in the trade expense estimate was a headwind of approximately 50 basis points. Total cost of goods sold inflation increased to 4% in Q3, largely in line with our expectations. We remain pleased with the pace of savings generated by our productivity programs. However, the net benefit in Q3 was impacted by transitory costs related to our frozen supply constraints. We experienced short-term declines in operating leverage as lower production volumes negatively impacted margins by approximately 80 basis points. We also lapped one-time benefits recognized in last year's profit which negatively impacted Q3 operating margin versus the prior year by roughly 40 basis points.

Dave Marberger: Price mix was a 150 basis point headwind, reflecting an increase in strategic investments in our domestic retail business. The change in the trade expense estimate was a headwind of approximately 50 basis points. Total cost of goods sold inflation increased to 4% in Q3, largely in line with our expectations. We remain pleased with the pace of savings generated by our productivity programs. However, the net benefit in Q3 was impacted by transitory costs related to our frozen supply constraint. We experienced short-term declines in operating leverage as lower production volumes negatively impacted margins by approximately 80 basis .

Dave: The change in the trade expense estimate was a headwind of approximately 50 basis points.

Dave: Total cost of goods sold inflation increased to 4% in Q3 largely in line with our expectations.

Dave: We remain pleased with the pace of savings generated by our productivity programs.

Dave: However, the net benefit in Q3 was impacted by transitory costs related to our frozen supply constraints.

Dave: We experienced short term declines in operating leverage as lower production volumes negatively impacted margins by approximately 80 basis points.

Dave: We also lapped onetime benefits recognized in last year's profit, which negatively impacted Q3 operating margin versus the prior year by roughly 40 basis points.

Dave Marberger: We also lapped one-time benefits recognized in last year's profit, which negatively impacted Q3 operating margin versus the prior year by roughly 40 basis points. Adjusted SG&A, which includes advertising and promotion expense, was 10 basis points favorable a year ago, as favorable SG&A from lower incentive compensation was partially offset by a slight increase in A&P investment. And lastly, foreign exchange was a headwind of approximately 20 basis points. slide 23 details are adjusted operating profit and adjusted operating margin performance by segment. Our segment operating profit and margin results were impacted by the same drivers as I just discussed, namely an increase in strategic investments, elevated inflation, unfavorable operating leverage, and transitory supply chain costs, more than offsetting our cost savings initiative.

Dave: Adjusted SG&A, which includes advertising and promotion expense was 10 basis points favorable to a year ago as favorable SG&A from lower incentive compensation was partially offset by a slight increase in A&P investments.

Dave Marburger: Adjusted SGA, which includes advertising and promotion expense, was 10 basis points favorable to a year ago as favorable SGA from lower incentive compensation was partially offset by a slight increase in A and P investments, and lastly, foreign exchange was a headwind of approximately 20 basis points. Slide 23 details our adjusted operating profit and adjusted operating margin performance by segment. Our segment operating profit and margin results were impacted by the same drivers as I just discussed, namely an increase in strategic investments, elevated inflation, unfavorable operating leverage, and transitory supply chain costs more than offsetting our cost savings initiatives. The adjusted EPS bridge is shown on slide 24. Adjusted EPS was $0.51 in the quarter compared to $0.69 a year ago due to reduced adjusted operating profit and unfavorable FX rates.

Adjusted SGA, which includes advertising and promotion expense, was 10 basis points favorable to a year ago as favorable SGA from lower incentive compensation was partially offset by a slight increase in A and P investments, and lastly, foreign exchange was a headwind of approximately 20 basis points. Slide 23 details our adjusted operating profit and adjusted operating margin performance by segment. Our segment operating profit and margin results were impacted by the same drivers as I just discussed, namely an increase in strategic investments, elevated inflation, unfavorable operating leverage, and transitory supply chain costs more than offsetting our cost savings initiatives. The adjusted EPS bridge is shown on slide 24. Adjusted EPS was $0.51 in the quarter compared to $0.69 a year ago due to reduced adjusted operating profit and unfavorable FX rates.

Dave: And lastly, foreign exchange was a headwind of approximately 20 basis points.

Dave: Slide 23 details our adjusted operating profit and adjusted operating margin performance by segment.

Dave: Our segment operating profit and margin results were impacted by the same drivers as I just discussed, namely an increase in strategic investments elevated inflation unfavorable operating leverage and transitory supply chain costs more than offsetting our cost savings initiatives.

Dave: The adjusted EPS Bridge is shown on slide 24.

Dave Marberger: The adjusted EPS bridge is shown on slide 24. Adjusted EPS was $0.51 in the quarter compared to $0.69 a year ago due to reduced adjusted operating profit and unfavorable FX rates. This was partially offset by favorable pension income, interest expense, adjusted taxes, and adjusted equity earnings from our Arnett Mills joint venture, which together contributed four cents of EPS growth in the quarter. Cash flow metrics are shown on slide 25. Conagra generated $1.3 billion in net cash flows from operating activities in the first three quarters of fiscal 25. This is down from the prior year due primarily to lower operating profit and wrapping on the special dividend payment in the prior year from our Ardent Mills joint venture, but it remains historically strong in terms of Q3 year-to-date performance.

Dave: Adjusted EPS was <unk> 51 in the quarter compared to <unk> 69, a year ago due to reduced adjusted operating profit and unfavorable FX rates.

Dave: This was partially offset by favorable pension income interest expense adjusted taxes and adjusted equity earnings from our ardent mills joint venture, which together contributed <unk> <unk> of EPS growth in the quarter.

Dave Marburger: This was partially offset by favorable pension income, interest expense, adjusted taxes, and adjusted equity earnings from our Ardent Mills joint venture, which together contributed $0.04 of EPS growth in the quarter. Cash flow metrics are shown on slide 25. Conagra generated $1.3 billion in net cash flows from operating activities in the first three quarters of fiscal 2025. This is down from the prior year due primarily to lower operating profit and wrapping on the special dividend payment in the prior year from our Ardent Mills joint venture, but it remains historically strong in terms of Q3 year-to-date performance. Capital expenditures of $304 million were largely in line to the prior year, and dividends paid were $502 million. We did not repurchase additional shares in the third quarter and had no new M&A activity in the quarter.

This was partially offset by favorable pension income, interest expense, adjusted taxes, and adjusted equity earnings from our Ardent Mills joint venture, which together contributed $0.04 of EPS growth in the quarter. Cash flow metrics are shown on slide 25. Conagra generated $1.3 billion in net cash flows from operating activities in the first three quarters of fiscal 2025. This is down from the prior year due primarily to lower operating profit and wrapping on the special dividend payment in the prior year from our Ardent Mills joint venture, but it remains historically strong in terms of Q3 year-to-date performance. Capital expenditures of $304 million were largely in line to the prior year, and dividends paid were $502 million. We did not repurchase additional shares in the third quarter and had no new M&A activity in the quarter.

Dave: Cash flow metrics are shown on slide 25.

Dave: Conagra generated $1 $3 billion in net cash flows from operating activities in the first three quarters of fiscal 'twenty five.

Dave: This is down from the prior year due primarily to lower operating profit and wrapping on the special dividend payment in the prior year from our ardent mills joint venture.

Dave: But it remains historically strong in terms of Q3 year to date performance.

Dave: Capital expenditure expenditures of $304 million were largely in line to the prior year and dividends paid were $502 million.

Dave Marberger: Capital expenditures of $304 million were largely in line to the prior year, and dividends paid were $502 million. We did not repurchase additional shares in the third quarter and had no new M&A activity in the quarter. Slide 26 illustrates the continued strong performance of our free cash flow. In the first three quarters of Fiscal 25, our free cash flow conversion was 125%, in line with our strong performance in the prior year-to-date period. We remain extremely pleased with our ability to generate cash from the business and our progress has allowed us to reduce net debt by approximately $500 million in the last 12 months.

Dave: We did not repurchase additional shares in the third quarter and had no new M&A activity in the quarter.

Dave: Slide 26 illustrates the continued strong performance of our free cash flow.

Dave Marburger: Slide 26 illustrates the continued strong performance of our free cash flow in Q1, Q2, and Q3 of fiscal 2025. Our free cash flow conversion was 125% in line with our strong performance in the prior year to date period. We remain extremely pleased with our ability to generate cash from the business, and our progress has allowed us to reduce net debt by approximately $500 million in the last 12 months. Net leverage at the end of the quarter was 3.59x. We remain committed to our long-term leverage target of 3x. As Sean mentioned, our fiscal 2025 guidance remains unchanged. We continue to expect our organic full year organic net sales growth to be approximately -2% versus fiscal 2024, adjusted operating margin to be approximately 14.4%, and adjusted EPS of approximately $2.35.

Slide 26 illustrates the continued strong performance of our free cash flow in Q1, Q2, and Q3 of fiscal 2025. Our free cash flow conversion was 125% in line with our strong performance in the prior year to date period. We remain extremely pleased with our ability to generate cash from the business, and our progress has allowed us to reduce net debt by approximately $500 million in the last 12 months. Net leverage at the end of the quarter was 3.59x. We remain committed to our long-term leverage target of 3x. As Sean mentioned, our fiscal 2025 guidance remains unchanged. We continue to expect our organic full year organic net sales growth to be approximately -2% versus fiscal 2024, adjusted operating margin to be approximately 14.4%, and adjusted EPS of approximately $2.35.

Dave: In the first three quarters of fiscal 25, our free cash flow conversion was 125%.

Dave: In line with our strong performance in the prior year to date period.

Dave: We remain extremely pleased with our ability to generate cash from the business and our progress has allowed us to reduce net debt by approximately $500 million in the last 12 months.

Dave: Net leverage at the end of the quarter was $3 $5 nine times.

Dave Marberger: that leverage at the end of the quarter was 3.59 times. We remain committed to our long-term leverage target of three times.

Dave: We remain committed to our long term leverage target of three times.

Dave: As Sean mentioned, our fiscal 'twenty five guidance remains unchanged.

Dave Marberger: As Sean mentioned, our fiscal 25 guidance remains unchanged. We continue to expect our organic, our full year organic net sales growth to be approximately minus 2% versus fiscal 24. adjusted operating margin to be approximately 14.4% and adjusted EPS of approximately $2.35. Slide 28 provides a few key assumptions for the remainder of the fiscal year. In the fourth quarter, we expect total company volume to improve versus the third quarter, driven by the continued strength and consumption we've seen in our brand. In addition, we expect to see some benefit to shipments as we restock retailer inventories in supply constrained areas.

Dave: We continue to expect our organic our full year organic net sales growth to be approximately minus 2% versus fiscal 'twenty four.

Speaker Change: Adjusted operating margin to be approximately 14, 4% in.

Dave: And adjusted EPS of approximately $2 35.

Dave: Slide 28 provides a few key assumptions for the remainder of the fiscal year.

Dave Marburger: Slide 28 provides a few key assumptions for the remainder of the fiscal year. In Q4 we expect total company volume to improve versus Q3 driven by the continued strength in consumption we've seen in our brands. In addition, we expect to see some benefit to shipments as we restock retailer inventories in supply constrained areas. Next, we continue to expect full year inflation of approximately 4%. There are pockets where inflation has remained elevated, and in late Q4 we expect to offset some elevated protein inflation with targeted pricing actions in our Hebrew National business, with the financial impact largely affecting fiscal 2026. As Sean discussed, we're investing to expand capacity in our frozen vegetables and frozen meals with chicken product lines to meet elevated demand, which is critical to restoring customer service levels and rebuilding inventories.

Slide 28 provides a few key assumptions for the remainder of the fiscal year. In Q4 we expect total company volume to improve versus Q3 driven by the continued strength in consumption we've seen in our brands. In addition, we expect to see some benefit to shipments as we restock retailer inventories in supply constrained areas. Next, we continue to expect full year inflation of approximately 4%. There are pockets where inflation has remained elevated, and in late Q4 we expect to offset some elevated protein inflation with targeted pricing actions in our Hebrew National business, with the financial impact largely affecting fiscal 2026. As Sean discussed, we're investing to expand capacity in our frozen vegetables and frozen meals with chicken product lines to meet elevated demand, which is critical to restoring customer service levels and rebuilding inventories.

Dave: In the fourth quarter, we expect total company volume to improve versus the third quarter driven by the continued strength in consumption, we have seen in our brands.

Dave: In addition, we expect to see some benefit to shipments as we restock retailer inventories and supply constrained areas.

Dave: We continue to expect full year inflation of approximately 4%.

Dave Marberger: Next, we continue to expect full year inflation of approximately 4%. There are pockets where inflation has remained elevated, and in late Q4, we expect to offset some elevated protein inflation with targeted pricing actions in our Hebrew national business, with the financial impact largely affecting fiscal 26. As Sean discussed, we're investing to expand capacity in our frozen vegetables and frozen meals with chicken product lines to meet elevated demand, which is critical to restoring customer service levels and rebuilding inventory. We estimate that these investments will result in transitory costs throughout the first quarter of fiscal 26. We also continue to closely monitor tariff policy changes and implications to our business.

Dave: There are pockets, where inflation has remained elevated and in late Q4, we expect to offset some elevated protein inflation with targeted pricing actions and our Hebrew national business with the financial impact largely affecting fiscal 'twenty six.

Dave: As Sean discussed we are investing to expand capacity in our frozen vegetables, and frozen meals with chicken product lines to meet elevated demand, which is critical to restoring customer service levels and rebuilding inventories.

Dave: We estimate that these investments will result in transitory costs throughout the first quarter of fiscal 'twenty six.

Dave Marburger: We estimate that these investments will result in transitory costs throughout the first quarter of fiscal 2026. We also continue to closely monitor tariff policy changes and implications to our business. We do expect to be impacted by the previously announced US tariffs on tin mill, steel, and aluminum, and to a much more modest extent, Chinese imports. We have started to see charges come through, but we expect only a limited impact on our fourth quarter expense from these tariffs. As we work through inventory on hand, we will look to offset any cost increases through a combination of alternative sourcing methods, cost savings initiatives, and targeted price adjustments. Our guidance does not include impacts from tariffs other than those just mentioned.

We estimate that these investments will result in transitory costs throughout the first quarter of fiscal 2026. We also continue to closely monitor tariff policy changes and implications to our business. We do expect to be impacted by the previously announced US tariffs on tin mill, steel, and aluminum, and to a much more modest extent, Chinese imports. We have started to see charges come through, but we expect only a limited impact on our fourth quarter expense from these tariffs. As we work through inventory on hand, we will look to offset any cost increases through a combination of alternative sourcing methods, cost savings initiatives, and targeted price adjustments. Our guidance does not include impacts from tariffs other than those just mentioned.

Dave: We also continue to closely monitor.

<unk> policy changes and implications to our business.

Dave: We do expect to be impacted by the previously announced U S. Tariffs on 10 mill steel and aluminum and to a much more modest extent Chinese imports.

Dave Marberger: We do expect to be impacted by the previously announced US tariffs on 10 mil steel and aluminum, and to a much more modest extent, Chinese imports. We have started to see charges come through, but we expect only a limited impact on our fourth quarter expense from these tariffs as we work through inventory on hand. We will look to offset any cost increases through a combination of alternative sourcing methods, cost savings initiatives, and targeted price adjustments. Our guidance does not include impacts from tariffs other than those just mentioned. We expect to provide additional information on this topic when we provide guidance for our fiscal 26 in July, which as a reminder, will include a 53rd week.

Dave: We have started to see charges come through but.

Dave: But we expect only a limited impact on our fourth quarter expense from these tariffs as we work through inventory on hand.

Dave: We will look to offset any cost increases through a combination of alternative sourcing methods cost savings initiatives and targeted price adjustments.

Dave: Our guidance does not include impacts from tariffs other than those just mentioned.

Dave: We expect to provide additional information on this topic when we provide guidance for our fiscal 'twenty six in July which as a reminder, we will include a 50 <unk> week.

Dave Marburger: We expect to provide additional information on this topic when we provide guidance for our fiscal 2026 in July, which, as a reminder, will include a 53rd week. And finally, we expect full year CapEx to be approximately $410 million to support the continued modernization of our supply chain. That concludes our prepared remarks for today's call. Thank you for joining us today.

We expect to provide additional information on this topic when we provide guidance for our fiscal 2026 in July, which, as a reminder, will include a 53rd week. And finally, we expect full year CapEx to be approximately $410 million to support the continued modernization of our supply chain. That concludes our prepared remarks for today's call. Thank you for joining us today.

Dave: And finally, we expect full year capex to be approximately $410 million to support the continued modernization of our supply chain.

Dave Marberger: And finally, we expect full year CapEx to be approximately $410 million to support the continued modernization of our supply chain.

Dave: That concludes our prepared remarks for today's call.

Unknown Executive: That concludes our prepared remarks for today's call. Thank you for joining us today.

Dave: Thank you for joining us today.

Q3 2025 Conagra Brands Inc Earnings Call - Pre-recorded

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