Conagra Brands (CAG) 11 Jul 242024 Q4 Earnings call transcript

Good morning, everyone, and welcome to the Conagra Brands Q4 and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Melissa Napier, Head of Investor Relations.

Thanks Jamie. Good morning, everyone. today live us today's session joining results. for for question-and-answer our on Thanks joined Sean some morning and again, during this Once I'm by discussing financial our may the session. and Dave CFO. We Connolly, be statements making forward-looking non-GAAP measures Marberger, CEO; our which earnings Relations SEC non-GAAP section including website more all see of with our materials descriptions filings in on our information information, risk and to prepared our reconciliations release, Please be factors, of presentation found remarks, and items. the can Investor GAAP our the for comparability this hope to ask had We first all a you introduce to prepared chance question. now to I'll listen morning remarks. And the our Jamie

[Operator Barclays. Instructions] Andrew from question Lazar comes Our from first today

if at it a I Why that is that because right now. it seems industry taking the you ask a operating part in to in obviously, more investment initially is last debate not not you've do it gradual the, to and that a be Sean, I for going as prices. through environment biggest, engage 'XX that's than is to the transition back categories of to sort about talked And more you the of Conagra, prepared require but is? And fiscal normal needed requiring in the adjust adjustment a just of lot your And know remarks just think obviously, in consumers And ready one this the their consumers talked you nudged were anticipated? reference increasingly year sort expecting bit. fiscal longer, a like large. or space of maybe

Sure, Andrew.

working. we not And The is It's Here's transition. how is Conagra, charts a as process. our word an It's operative in process for today think that that. I event. showed about

back nudge today that for expand investment. and key investments And our margins positive we to to consumers. past that in inflection successfully are is for saw materials positive the us, our quarters, territory despite that toward volume, engaging our metric indicates volumes which importantly, You on able the steady a were X

volume our and So Frozen our International and in see business, business, to I was in Refrigerated Snacks particularly investments growth our pleased our is posted couple business our get of has positive in into in meals, largest in in volume business, but frozen consumption those all quarter. which are 'XX, more Grocery baked those of that the in growth QX businesses fiscal plans. a support will

the a the we have we've is of that and is we little one these transition. working, happening. moved and events But us, that nudging consumer, that will to it's of continue process, a money but and So needle It's been a transition. overall, nudging, meaningfully, ever adjustment. positive. It's experienced period it on And is they a for runaway sprinkle inflation. not forget a It's where the they clearly move

competitive and start And the know guess a on and as environment of it. in how some space But on looks is, year? I I Frozen you more year-over-year items. sort I'm refrigerated pass-through out then pricing the the playing what in frozen Got & negative I the of curious see new Refrigerated more think, like we that good specifically fiscal pricing portion

and growing largest as innovation just there highs record shares meals all Frozen yes. volume as Frozen Merchandising, about Frozen advertising already Yes, that. to to is We overall single-serve in saw volume. in Sure. back again in the business, our flat, have contributed And absolutely, invested a result, our materials. consumption you with hit

about those it's business. news things. And for really quality deep about all So and driving frequency, the us, of It's in the to it's a it's respect not it's is situation not driver been display, price-based with where merchandising, been positive discounting. that Frozen a been that about

people convenience-oriented things sheet toward their meals. you're what work, like were balance of the don't in meals, to at kept make for up their they really they of called cooking period more don't like challenge moved don't Frozen scratch consumers seeing purchases peak trade-offs the when that. The household that leftovers and to choices their is like last like having that of and inflationary we overall, They and meals. items some they is cleaning think out planning I were this year, make with and I after preparing and

they after cut convenience, our while, today, to grow I why showed for strong a chart ever they XX-year is that's materials weary the And that need the back in has for So those consumer it's is consumers made back been. as as our convenience, of saw nudge single-serve we meal in in workaround business have and materialized Frozen the flying come we've to quarter. in to the why which and growth behaviors, investments frozen

now We positive is to store. category the as the So investments well. our again, of put we response period Frozen Eye has gaining in which highest saw which overall a space business department like total it, rate knocking single-serve down, see on real in against and we've a is compound through I positive key would with grocery growth meals where some Birds of share seen that is and door say and growing great targeted businesses X%, of the this went challenging last a year annual trading think we I some XX-year

next question from Our Ken Goldman comes JPMorgan. from

first understand being to prudent. the about outlook wanted comment the better I

hand, EPS the sales street guidance expected. lower one than the your and On

a I lower setting think helpful in that's bar. certainly

you're the On and as as just you yet. the haven't seen Andrew prices, mentioned, used basis. getting on volumes your higher outlook to other we to on that especially mentioned, hand, consumer accelerate, And X-year requires a relying

think plan to in where being bit modeling dig a little on as I So you're just conservative I'm your you out. most in guess trying you

because the have yet. Ken, that today, at we say just look you I think seen -- demonstrated haven't we we it's to And important charts seen absolutely that.

was businesses. in And trend in volume saw this have recent quarters improvement consumption X our of straight most we quarter, We seen positive. that volume Snacks

meals grew. Our consumption frozen

grew, consumption volume grew. business business Refrigerated International our Our

have there where of inflection out been in that we from see not has we just there seen have have and line. So absolutely expect portfolios do the volume been an have traction investments not movement, the some We continued traction to here. and one there

We the either amount portfolio a is have fair or had inflection to of positive. already steady flat close and turning

long-term It's some not So growth, of that is our way, which, it buying behind consumer comment is a that's for them. With of an in encouraging top thing recognizes guidance our respect nudging and and of said to that is indicates investments doing as consumer the from are engaging a continue and volume by investing it's that it consumer it health the to priority that an job embeds behavior, the good we've process, prudent. some flexibility business. therefore, adaptation nurturing the prudent the event. conservatism around And terms but the us beginning, in the also along

volume be trends the to given guide our quarters, had no with heroic for think of slope X the for we is fiscal outlook. try outlook desire So the 'XX. last our to prudent a We

it's I you think investment, we've if I progress businesses, you we've conclude really only discrete just digest think where prudent play. a that these made can the placed on

on Is year? Or my for of wanted be first or will be the that I an down will margin to And is absolute the outlook. gross the follow-up, messaging quarter level the the first, that about then gross seems margin clarify gross tough It lap. consensus need wanted clarify year-on-year? comment. And volume, the to you to or more then just margin, broadly, of bit. SG&A so, like come down I $X.XX a may talked certainly lowest

specifics. don't provide quarterly understanding So you

of tighter where slightly Just sense get takes and the puts you will maybe trying be. a XQ to some of think in

properly are expectations with investor aligned maybe so Just yours.

Yes, this Dave. is Ken,

give me color you Let on some that.

look mid-single-digit price right, period. you QX where at around the year if the ago, quarter that So last had we so a significant mix, was

wrapping quarter. we're that So on

if down if at business, down, you domestic QX we volumes, where going expect but we year-on-year, in improvement to expect versus our they're volumes. you in So we retail break came be in terms it at but still of improvement look

chain will Our out some We the and be in of business expect some Canada, in lower. called International business, we issues QX. actually supply to impact that

to lower in sales growth than QX was year-on-year it So we QX. in Canada expect be

of year. year much QX to to of compensation. couple had accrual incentive an A going SG&A. in have We're last we SG&A our this side, in year, terms down the things Last take versus margin higher

and operating margin. And So depress going going to a side, then gross that you're year-on-year, see for bounce back, quarters. QX quarter in to on lower margin obviously than is sales that's the other a that expense. And is us

year. full the have his to the gross get little fixed relative normally trade we to the of comments, last investments And of for we stable in said margins from said, expect do kind and other costs you as be So But Sean year. end quarters. drag bit of the rolling from in we a higher

So we're pleased with the productivity.

to that called Inflation the for we net expect for We X% continue. year.

investment us helps there we're make. that going additional benefit to the So the fund

our color things So all together, on QX. some those gives that hopefully you

Our next ISI. question Palmer David from from comes Evercore

I the just you to comments. wanted ask environment challenging about

You the per price that comment in but speak issues, but differences might by some for for would I example. assume have prepared going what during you can category to And entrees, we see types sometimes that few example, more in sense the also category. of gap perhaps that, a made be to remarks, times challenges you issues you I vegetables, in mean assume you there's that

price investments challenges the to promotion, through adjustments you're of display making, other could and just those So you that activity? speak what specifically that's you're talking whether about or types

our David, Today, in flat. and that a was from consumption a QX, showed our minus example, Yes, line in QX. I X.X%, your sure. line Frozen straight shared point, the through and trends And it's I much QX as pretty QX showed an for our to was business, chart in consumption material it almost

course is by And volume accident. periods. over not virtually happen that of gone in the decline the So X that did business

merchandising investments our the in made and of we along support had nudge see QX. would in it that to to to those in will great everything try that a call combination response we some, was from the if it, recall it we consumer advertising got Frozen for work. And test after expanded more effect. It all You QX, to I'll investments QX, innovation, desired to to a

I substantially really, in of quarter, of think almost the I mentioned last level down as the the couple merchandising at, we high-quality you'd say types overall every was look that were pre-COVID. versus years merchandising displays, as earlier,

are sense of pretty lifts. are been of type -- where with price been in high drive in David, we back can is -- in than Frozen, would say describe that have maximum we've it's hit thresholds reasonable. There moving as more keen general, kind a has what the historically. quality. it's we price thresholds, -- I'd industry, promotion in the But gaps -- I it always the for line and what It's Now been

why require as good-tasting what's the don't rely That's to, they're nudged require because those. can and roaring those the any the prepared what come on basically to any don't is that's ready couple a foods might years -- the we've where happened those the back, we they and we are, hit cleanup. thresholds in but Frozen prep chart have a So the trim the know When reason shows an kind high-quality, experienced in purchases and we little last business. in time year, Frozen on important. And be that of typically they particularly business, of and to business declines as is wiped we ago that example, because XX-year People know out we've consumer volume it. are forced

to across the the your engagement. we'll to what that's portfolio that is to And that point, we hit look, need category thresholds around we'll are by our maximize have key the category strategy

really Some a are there categories categories oriented, tend of are be those more just competitors. couple and to where price-gap

a more right most a where of is more others. categories example than about But good high-quality and So our thresholds. hitting of tomatoes are price-gap display that's category canned type of the

thinking being priority, -- to that the maybe the just starts up forward? about one again, to this but years, level X.X% are advertising year, the how close in that isn't margin, type year maybe much on going is advertising do of of maybe path follow-up And A&P future you the you a and that step this as mentioned

same. It's about the

Yes.

from from America. question Galbo comes Peter of next Our Bank

Dave, kind right, helpful. investment into if maybe that a, we price. just kind going your it sense of of kind of get $XX checks roughly, brand the just b, Refrigerated just end? the this take million verify inflation, reinvested it's kind I a on your kind math productivity of of think, out to of us And or be savings, of incremental segment Any will where in the would Can there or kind more to that through weighted weighted Grocery? being color give it's back more you that, hit? comments, going to investment, Is net

in And don't then let hit any fill I'll Sean Why I that. blanks.

X% high productivity. inflation we level, and a X%. from we're talked pleased our with expecting So We around productivity, about really estimate

So those that year. how clearly, there's certain other and other Those stable product investments are of do will expect that sold we that of basket. That innovation we're trade are and gross continued margins goods to margin hit continued evaluating investments also that us think important, there. for which the Grocery have allows Sean part benefit we're we in, that hit but we the snacking priorities, be go that that terms margin. obviously, cost investments merchandising, we we some opportunities whole make build frozen described obviously And chain, goods of impacts in in that, we investment of then just select investments. and making are sold but make have our cost also about we supply And full in quality in

high maintain now really can to the where and margin the go direction we gross So 'XX. we volumes the about level, that right operation to the finished we fiscal in efficiency get continuing invest of feel the right good

of That's push I start just know, and as you're the too potential helpful. just that I quality thinking asked being lever too or the productivity ingredient well. that of And issues guess, as we to kind risk what's a kind -- don't getting hard, then question does just number, your lower maybe productive. of productivity and peers create, the it's Sean, about

that a as face I we think a question it's lot well.

our the that consumer and We investors productivity. rail should that's to of know products for would third experience our think I the like cut worsen drive us. not quality

opposite fact, XX done the what Peter, that. exactly In years, last over if you the it's we've look, of

to to our that lower and to for it's people tons into packaging when a was and conclude that than our have the and lower of pay quality this money modernize are We it infused food portfolio make quality willing stuff of kind value better more it price.

so that levels and really had, And be. about. innovation we plants in of success what no is our talking productivity is our lot been harnessing talking and the and which technology doing is central just of that is do quality our labor is us. loss have kind not technology really -- for high That the as we've pool we've investing of our kind stable, not back be precious we're -- opposite, a and that to service only run We're waste as but getting X we so can more efficiently can and and about be

So not of rest the that's playbook. assured, part

from from comes Gumport Our next question Max BNP.

volumes. pace bit a encouraged much into I of were like last direction of still might towards that changed environment. the were a seeing you're what too like felt give it, in it what's recovery, be you but just sort Mendoza X the If reading the just moving update on may the Line us by right, months you be an of last you're less the optimistic terms when in volume on consumer recovery it feels of than you that's quarter, over of while that bit flat-to-positive

Yes, not all. that's feel how That's not right, I at Max.

We've just stalled. if from we've the that fact, consumption virtually has that through been the of there QX not you had has a business trends in trajectory In upward shown, look business. at the QX, steady everywhere

you Dave so out, understanding QX. to helpful in get year's we've I guys in there's as be plenty noise Now points this that of got for QX,

year we've lifts of this we've of on margin. to get example, stuff in impacts QX take to part For of events the just more significant got and that year QX some not shifted merchandising last holiday the advantage that But is that there. we

that's we we've going think to like and investments business the are these discrete continue. think here a business put the where line, I is mentioned I by a and fairly just way, and that, trend unfolding process we we're -- we've what response. So seeing of And in underlying a I feel I seen in noise, that -- done Ken, a terms to as as Andrew that's linear ex

and against So see businesses we we industry. in we're business. in in Frozen we'll you're critical about if into combined the share you to the I fiscal that we'll that businesses held portfolio, find Snacks, and a our doing about more it, strategic grew as think go or while the continued response. And do here, market X meanwhile, 'XX XX% think That of is best going most

in are but gaining how well. competitors So consumers just way, as you brands And how is well that innovation the these predictable bending are vis-a-vis and very only are shows we resonating line their volume our share. well not a resonating with our

Foodservice, on with then down And in the quarter. volumes XX%

low-profit well you out us You just you're terms impacts? each the weakness the actions some to And could the of as over of business. eliminate year. on for seeing was QSR in how coming could if called also as what X QSR those I a the curious weakness side magnitude that of disaggregate progress

make traffic from Dave, comment has you weakened knows been the last just as months, been here whatever quick think several in everybody add has and I down. that. Foodservice, you can exempt want. a company, think, a no And I I'll and But channel

kind in our of a So you're we've Foodservice not that, that's what bit had part of business. of the but really big seeing

last very of exercised a philosophy the value-over-volume year, We business, have a on margin had fair Foodservice our strategy. we amount expansion serious where in

points. in operating Dave. is want our a XXX amount, that, ] that we basis [ volumes. But negatively pressured massive if know So to don't our think I Foodservice I but margin quantify

driver over seen But top to to Foodservice, primary our is that soft, on we a impact margins attributable line takeaway bit traffic our value-over-volume operating and the looking around there. has very had overall material piece The expansion else that add were top volume. line value the elsewhere. Anything the part little strategy, we've the is gotten we've that? our So from for you'd in

Yes. in we discontinuation. making like popcorn we majority volume to the No, I from and weren't wanted tomato say going decline not was money of that the just businesses the mostly is just It's make. -- were been just some to where

out businesses. got we of So those

from Cowen. Our next TD question Moskow from Robert comes

Sean, you towards more heavily have consumers. lot that brands skew a of lower-income

of versus any portfolio. seeing when why Are there's You they lot the performing skew companies of broad look, point other have like Because income? slowing, high of to have income are a terms a lot asked tend low that brands a those you and in differences brands you way. are that pretty cohort, food how to things -- are

you one other? more do versus So the see in

Yes.

I is part balance year think food was every that people income was headline any large think products company much sheet them. had exempt level. reality, is any in for grounded pretty sell the of in work their from diversified And to the level. And to just to last make value-seeking that I going not income behavior household

was on they and just were price higher seeing income the it didn't trim basket, of the in principle. principle would consumers like Even new they points normal Part their purchases.

it's the really. payments, the little impact to at any Not get on and SNAP but A to sunsetting your excess of So did we we the of business? like see when much. point, bit, looked not things some material

the And with to merchandising the about that always invest more you matter have in So tend -- bit to was we've on have get manifest lowest lower-income buying that the for talked a people a I really buying those that's thresholds of you seen we have think we say most them to consumer, income I done tends meaningful to to event going is need threshold of the people you trimmed where seen who Rob, the itself those average most. are because that saw nudging. little just in mean in have you're get And that rate high kind and are that the can that year cohorts, what lifts a to lifts. And if high-quality it going who I in see back to Dave, little for most, value-seeking thresholds I XX need income ready sensitivity that, a would across rate. last to we the their tells bracket. behavior probably And years. higher They where the think you we've than last earlier

Nik from Modi Our next RBC. question comes from

between I of can forefront if Rob's is And up which but And hear older more are just your digital I consumers I'd between spending spending? of on digital different it mismatch these seems traffic. mean, to from you more wondering traditional years, where a think if marketing how Any on like tend follow versus been of I many perspective very -- the a question love angle. the there's curious has I'm thoughts versus where over-index Conagra to Sean, mean, to on a older media, Maybe categories? you're for some I'm on where your the money, this. tend lot is consumers consumers mismatch kind there's a you're of which to that?

Well, what new By the if brand-building think investment is and total. make product in innovation, our biggest I'll spend we you about our call product far, package. -- in

it's to or provocative, purchase. appeals online matter? products that their around find here. Why the Because innovation it's that shopping, into And actually that do we to all arresting of we we time in doesn't if does want consumer point want our you of whether believe middle, space, be products matter. look spends won't across and be groups, contemporary the you young, older, We that the bulk shopping age and the look our it -- to probably store, of So line. breadth shopping COGS at modern the food the the to right because

we media in that's eye trying trying of virality. spend, it, that customers. of biggest that age to We reason on realm. to get we're the invest with smallest drive is again, invest our of high-quality and group. And And at And agnostic the level. because is kind invest in the to heavily We the display. for our A&P shelving investment We're piece which focused right that's also the So then social the is the is piece about or just And talking. consumers and their our The when products. their Instagram, and doesn't they And investments those of mouth and is dads. brand consumers on types in families, talking there. get you may get talk of online in innovation. to to the point talk start you to word of moms TikTok because end they that's their they it saliency, their they mind-ness new And talk intrigue of friends, how virality drive proper top it

have from frankly, investments we the across and all in-store each we we're volume of confident consumer domains. to demographic. So across every highly board the of have we're product weren't, not that online, inflection to would we've reaching seen our if seen And types you

helpful. how perspective then Slim kind now? us right the maybe any there I'm just of if some have if just work an some kind FATTY. would faring Jim of suggest update That's there's and can on curious you encroaching some on brand that pressure you competitors And channel give like is of

Yes.

to wrap pandemic, got your saw for business led kind I think to constraints you some Jim, capacity Slim us. size the through mind which enjoyed dramatically. to the explosive Jim think in of growth increase absolutely That around Slim

continue. to us $X capacity and not volumetrically, with between going change. is 'XX. business in those year innovation to the growing to billion already past things that Slim the is this fiscal available a expect Jim with again, and that's investment, the between would now and But are capacity tough so good juggernaut, we and constraints And to again had comps, good deal I

Our Palmer Citi. next from comes question from Tom

have to late XXXX? to response response in wanted compare of that to on activity seeing then And other referenced. building brand might and based and of types on what consumers much actions? historical just I competitors does norms you've clarify your say, your the relative you promotional we seen, are How from

back would say been you've of if businesses invested, longing folks is these to categories better. that way of for them. the kind cut there's I where lifts we've the a And describe that on the some on I have

instead, that buying when a XX, normal a if out your So you frozen to you and go back freezer grows in to opening cook for cut would frustrating. got means household after or meal And to to rate from and store sandwich X, that run that X, scratch, the the more. got that X they've people expecting make after they you something be a is there

price are going then threshold happens high-quality people that's is and like, display, get of what can goodness, get right to "Oh, so I'm what in we've normal thank it kind we a if cadence." replenish the now And And to seen. my

So up it in lifts. shows better

of get volumes terms industry across the I to north trying everybody, In the category, think, look, in is again. competition

everybody they're it. room think help, that's I brands. equal some so had fine needs And more has do has because everybody to But and promotion. think And consumer the That's fine. I not getting

record market frozen We're at share there. to is We're part get growth that's you're all-time because match. our shares. difficult which as not XX category is. all So -- look is the biggest last in And and going to of equal innovation, the lifts. just the frozen the large quality of frankly in anybody at the player In an example, there got we've market years for

a as look it Should the just The level moving I Mills. on then understand kind a language series in to towards make operations. this. of lower of referred to glide the remarks prepared And least, Ardent we should rate? maybe release or over I about more sure you which one with like normalized is normalizing a as started $XXX well, slightly for and path normalized more last years? we as a that is million think Or consistent just quick want a at of year outlook, how that off

call a margin remarks businesses, I revenue business little curves, at really futures. me and like them spend business. storing wheat that. sell you prices and a type feed let corn X Tom, try on business things based this hedging to into and did on is commodity wheat flower color split transactions, Yes, they It's the just in I that Ardent then flower give this And futures speculating on on Mills. some that the time basic

activity, area. in trading that forecast Ardent with capability is have of -- kind that all right? difficult they Mills significant is precision, And the So to very

estimate. so number going that based guidance do is Mills what going on the is Ardent to we're And way the And on to we're give estimate ebb we're it this management. flow. it latest from right over you update we with course our because our is each year, of to gave now, guidance then the the going But quarter, the best can and on

comes Fargo. from Chris next from question Our Carey Wells

presentation will clarify out tomato-based pricing overall items, net margin for context you investments. in specifically clarify pricing just And some ask wanted I get be guess cocoa. those how the be broader that about think bit on on lapping I year? have not more pricing for but you'll a those things to So does would I a despite then maybe the the then And gross when around trending and in context then that I or X new comments see stable the -- perhaps the of these taking ex follow-up. quick the neutral business? some you pricing of

fill me you Sean, start. can in. let Well,

So is all our inflation pricing justified. of

tomatoes. the So we've there in fiscal 'XX, inflation X X pricing significant in obviously over look last years. to taken significant But was you

that So we pricing cocoa. been know, we during as significant took on there's 'XX. then And will 'XX, in you so wrap inflation in fiscal fiscal

Business, Miss Swiss that QX. our with So pricing will effective have we be

-- it's So inflation. on that's all based

the areas big now. they're X right really So

you're tailwinds mix, But going investment increase within merchandising, line. take price In you we the get to that's that. right? mix, sales prices, obviously So then benefit terms when the of in trade when they're net price impact from to on

So of as shows of in that impact. terms the a overall headwind up more

net. So those will

to play to mentioned, into investment. Grocery for want opportunities business. Sean see we of we go Grocery, our fiscal mix Snacks we in as So do kind price select & see some some start where you'll out 'XX,

that fiscal will so And as moves and reflected price play be on, mix that out 'XX will the line. in

you. we're not mix segment, should the price by So specific help dynamics to guidance they're but going give on that general

focused. in Okay, we'll areas bit where Frozen said strategic great. or Snacks, Maybe a more would than holding it'd a those be and gaining very it clearly the I quick on see. share About good share but you're be that, follow-up. momentum XX%

private specifically, a given mind is are Can competitive setup, progress. Just that is staples helpful. that of any comes encroachments? areas, on perhaps some comment to the how in where on And just in context mention you focus? however, seeing developing the work areas you retailer you did, label this You these see

Yes.

value-seeking I places of category of years, in behavior really in that. and that haven't buy, is still We've every some and beyond it for pursued a much that portfolio. There are couple we mentioned, tackled in food. we've seen As now people the that food

a lot other attention. a right, tomatoes where Those got price not are are where are right. and canned not down couple categories, they're haven't trade as we with your an exempt businesses they're if example, canned -- of put your So of like from thresholds that categories if not pasta we food not a gaps

we it know businesses vast we portfolio. got it today. talked support, lift. you we So some fundamentals be businesses, and many, of we'll display they of to against. you a a We've or handful the threshold really see we have those that of tend the That's you your put kinds gave when -- got outsized haven't get spot, against, a baked where about we've be get are the And in right earlier, on investment that a outlook gap that kind we put spaces, not into energy right the you

I that you the also And seeing peer a you're much XX% of volumetrically. key set, there. portfolios. think So portfolio share. seeing there or gaining spaces mean, don't if I think or holding don't that already flat that in pretty strategic our are lot folks' But about strategic you're to domains, growing in of I think other back other a overall, are few spaces

Line that And was been of if investment believe we make have already our to first that to and since -- companies to -- we were we seen the were strategic be for overtly, said positive to we because response. in in Mendoza we territory sure pretty to that -- one emphasize want say consumer have some target I we -- going cases, domains So ready back to we're we there. the close nudged. key tremendous we going to We're

my So in the the setup noise but deal go eyes. our We'll the those I the into share between fiscal that as in to fundamentals domains, with solid QX, performance year. pretty look strategic like we and

next our from is Jefferies. question And Rob Dickerson

strategic kind go more back there go we bit of a different to as investment segments, as speaking, all to you through the and entered we it like think maybe to in going Sean, But guess, and a did focus will I This much am does just kind it you XX% right? And there just holding Great. you brands some those back if on curious lagging or pre-COVID, our broadly of seem business, share a bit portfolio, mentioned just to overall bit the -- be the a gaining through the reasons of various I company divestment kind of seem it's focus. staples Grocery year. potential domains. the more to little come right, kind for is look of back, Grocery, then come more brands we in and the of the we

like, just you those years, why away the what Foodservice side. I'm next Kind the in speaking of kind with curious, some forward in of few on from step you've as about been brands? of So line not I guess, think just

Yes. Rob. bunch there, There's in a

terms staple we just of quick me first mention the basically our part on Let which in domain, call products. staples real what are

our grow businesses Refrigerated us, just last get grew that saw volumetrically. In businesses mentioned got that's we For easy actually to brands QX our an some of I that some in challenges we've they meaningfully wrapping comp in and in chain businesses the some invested of Refrigerated QX. other to. then some Grocery businesses. had a business, businesses Refrigerated that couple year, were And we some had of we combination Grocery and because And supply

So that in there. there's a lot goes

QX. consumption Grocery We Snacks in also that & under-shipped business in

the better I terms divestitures. was more and that of back But or growth if in a CAGNY, your active portfolio many shared don't divestitures the done the think terms been the stood where I as So you margins, We've in reshaping there's really as that for point, spins to portfolio the know including anybody. last you about in X at or better a so years versus consensus go what of we part saw of last broader deck quarter. to in we

So open always to we're that.

us, fit. margin, and strategic additive time, investors you'll something and we where be margin terms Of we But going I paid much -- be sharp is Because -- pencils the And somebody here any how above we anything think in our won't a would over a growth our is assets businesses have see we in to to of else to is for but them? it of the own, do value future. course, want growth would you invest the overhead the open if not exit in that been for either what that? we'll find we not to margin in have asset, what or we to add that I have or that? So is assume be value value intrinsic our and buttoned terms those think have we'll we create we be are be past, absorb, would very are for to I it concept, have does drag to why also offer entrenchment the would on lose were stuff against would what value again that's strategic to wouldn't to we does the in of divest the we up destroy what shareholders. the that economic we bolt-ons is

that I think and time. think change that's over don't I our playbook, always will been

and then that Got Dave. impairments, think And have been fair it. but clearly normally for some I quarter, this called called maybe previously. out don't enough. I quickly ask just Yes, about out

be areas more what maybe certain While that been Like I that aware driving understand changes all. And of certain have bit are impairments? in or of there rates, those you. a brands that's just have we should

Rob. Yes,

goodwill we yes, we those. through means We our which is allocated been different on goodwill, at obviously, testing. come impairment, that level and/or I together then mean there's every reporting quarter, do So both year. that at go the it a against look brands that's which based level, the impairment fourth to really go several brand

So it's impairment. of X different types

discounted mentioned I goodwill. And a there royalty This in discount -- interest comments, which and X quarter, concept. you're goodwill, we the doing brands higher cash actually which using had type impact as my both basically rates, you and flows discounted when cash method, impairment flow drivers do in is in because you're key impairments were rates on obviously that essentially

rates. on based an So obviously, discount interest rates have impact, they're and up

look look goodwill, impacted industry have industry something is as at And you at You multiples. this as also, the at look impairment. that lower you part we much you the an year food it that industry that of When market do and when multiples. you the market average

that assumptions this are that So actually have on impact that sales. unit impacted was kind impact net reporting we're when depending of part net sits. sales. that, or does down, investing, brand, your the any you do on and it that our piece we in us took. And impairment volumes third particular of And on is then environment, forecast we where can where obviously, short-term And

a impact is than We more our strategic But guys that our good market are. you of for This business what very have priorities lower XX% standard the rates about interest our business. and great feel and talk about openly multiple. go analysis very we through. the we So from the the feel really is

showing And additional ladies to to and I'd floor Melissa the turn no Napier questions, gentlemen, remarks. at back like closing and this for time, over

Q&A for Thanks, everyone, Thank to questions joining us available is around may that for everyone. have. you. and good Relations take any our Investor a today. Have follow-up you live session day,

today's We attending. you Ladies and conclude call. thank do does that for conference gentlemen,

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