CAG

EX-99.1

2 tmb-ex99d1.htm

EX-99.1

Exhibit 99.1

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News Release

For more information, please contact:

MEDIA: Mike Cummins

312-549-5257

Michael.Cummins@conagra.com

INVESTORS: Matthew Neisius

312-549-5002

IR@conagra.com

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F O R   I M M E D I A T E   R E L E A S E

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CONAGRA BRANDS REPORTS FIRST QUARTER RESULTS

CHICAGO, September 30, 2026 — Today Conagra Brands, Inc. (NYSE: CAG) reported results for the first quarter of fiscal year 2027, which ended on August 30, 2026. All comparisons are against the prior year fiscal period, unless otherwise noted.

Highlights

●Reported net sales decreased 1.4%; organic net sales decreased 1.1%.

●Reported operating margin was 10.3%; adjusted operating margin was 11.5%.

●Reported diluted earnings per share (EPS) was $0.36, a 5.9% increase. Adjusted earnings per share was $0.41, a 5.1% increase.

●The company is reaffirming its fiscal 2027 guidance, reflecting:

●Organic net sales change of (3)% to (1)% compared to fiscal 2026

●Adjusted operating margin between 10.0% and 10.5%

●Adjusted EPS between $1.40 and $1.50

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CEO Perspective

John Brase, president and chief executive officer of Conagra Brands, commented, “We delivered a solid start to fiscal 2027 with top line results largely in line with expectations and profit ahead of expectations amid a challenging operating environment. Importantly, we are acting on our previously outlined priorities including restoring margins, increasing investment, reducing complexity, and rebalancing capital allocation, which are translating into measurable progress across the business. While there is more work to be done, we remain on track to deliver the year and are reaffirming our fiscal 2027 guidance.”

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Total Company First Quarter Results

In the quarter, net sales decreased 1.4% to $2.6 billion, reflecting:

●a 0.2% increase from the favorable impact of foreign exchange,

●a 0.5% decrease from the impact of M&A, and

●a 1.1% decrease in organic net sales.

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The 1.1% decrease in organic net sales was driven by a 1.0% positive impact from price/mix and a 2.1% volume decrease. In the quarter, the company gained dollar share in categories including frozen vegetables, pudding, chili, frozen breakfast, hot dogs, and frozen desserts.

Gross profit decreased 3.4% to $619 million in the quarter and adjusted gross profit decreased 3.9% to $619 million as higher productivity and approximately $4 million in tariff refunds were more than offset by lower organic net sales, the negative impact of cost of goods sold inflation, and unfavorable operating leverage. Gross margin decreased 50 basis points to 23.8% in the quarter, and adjusted gross margin decreased 62 basis points to 23.8%.

CONAGRA BRANDS

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Selling, general, and administrative expense (SG&A), which includes advertising and promotional expense (A&P), increased 4.4% to $350 million in the quarter primarily due to legacy legal matters. Adjusted SG&A, which includes A&P, decreased 3.7% to $321 million including a $10 million benefit related to fiscal 2026 incentive compensation, partially offset by a 15.1% increase in A&P to $61 million.

The company realized pension and postretirement non-service income of $6 million in the quarter, in line with the prior year.

In the quarter, equity method investment earnings increased 71.8% to $50 million primarily driven by favorable market conditions and effective management through recent volatility in wheat markets for the Ardent Mills joint venture.

Net interest expense was $92 million in the quarter. Compared to the prior year period, net interest expense decreased 2.1% due to a reduction in total debt.

In the quarter, the effective tax rate was 25.2% compared to 43.1% in the prior year period, when the rate was affected by the Chef Boyardee and frozen seafood divestitures. The adjusted effective tax rate was 24.8% compared to 25.0% in the prior year period.

In the quarter, net income increased 6.0% to $174 million, or $0.36 per diluted share compared to $165 million, or $0.34 per diluted share in the prior year period. Adjusted net income increased 4.3% to $197 million, or $0.41 per diluted share, compared to $189 million, or $0.39 per diluted share in the prior year period primarily as a result of lower adjusted SG&A expense and higher equity earnings, partially offset by lower gross profit.

Adjusted EBITDA, which includes equity method investment earnings and pension and postretirement non-service income, increased 2.4% to $451 million in the quarter.

The weighted average diluted share count in the quarter was 480 million shares.

In the quarter, the company paid a dividend of $0.35 per share.

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Grocery & Snacks Segment First Quarter Results

Net sales for the Grocery & Snacks segment decreased 2.6% to $1.1 billion in the quarter, reflecting:

●a 0.6% decrease from the impact of M&A, and

●a 2.0% decrease in organic net sales.

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The decrease in organic net sales was driven by a price/mix increase of

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