ConAgra Falls Short On Q4 Revenue Amid Unfavorable Price Mix - Conagra Brands (NYSE:CAG)

　　ConAgra Brands, Inc.CAG shares are trading lower on Thursday after the fourth-quarter results were reported.

　　The company reported adjusted earnings per share of 61 cents, beating the analyst consensus estimate of 57 cents. Quarterly revenues of $2.905 billion missed the street view of $2.930 billion.

　　The companys reported net sales decreased by 2.3% and organic net sales decreased by 2.4%.

　　ConAgra said that the decrease was driven by a 0.6% negative impact from price/mix, largely due to the companys strategic investments in the quarter, and a 1.8% decrease in volume, primarily due to continued lower consumption trends.

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　　Gross margin increased 135 basis points to 27.7% in the quarter, and adjusted gross margin increased 62 basis points to 27.6%.

　　Adjusted EBITDA, which includes equity method investment earnings and pension and postretirement non-service income, was $577 million in the quarter, ConAgra added.

　　The company ended the year with net debt of $8.4 billion, representing an 8.5% reduction in net debt versus the prior year, resulting in a 3.37x net leverage ratio at fiscal year-end.

　　“Looking ahead, we expect a gradual waning of the challenging industry trends seen throughout fiscal year 2024, as consumers adapt and establish new reference prices,” said Sean Connolly, president and chief executive officer.

　　Dividend: ConAgraapproved the continuation of the companys annualized dividend rate of $1.40 per share.

　　The companys quarterly dividend payment of $0.35 per share will be paid on August 29 to stockholders of record as of the close of business on August 1.

　　Outlook: ConAgra sees FY25 organic net sales to be down 1.5% to flat compared to fiscal 2024 and adjusted EPS between $2.60 and $2.65 versus the $2.63 estimate.

　　The companys FY25 adjusted operating margin is expected between 15.6% and 15.8%. The company also expects the cost of goods sold inflation to continue into fiscal 2025.

　　Price Action: CAG shares are trading lower by 2.43% to $28.11 premarket at last check Thursday.