The company completed the sale of its Chef Boyardee® business for $601.2 million and its frozen fish business for $42.4 million in early fiscal 2026, following the sale of its 51.8% ownership stake in Agro Tech Foods Limited for $76.8 million in Q1 FY25. These divestitures reflect a strategy to exit non-core businesses and concentrate on strategic objectives.

In fiscal 2025, Conagra acquired Sweetwood Smoke & Co. for $179.4 million and the manufacturing operations of an existing contract manufacturer for cooking spray products for $51.2 million. These acquisitions, primarily included in the Grocery & Snacks segment, are expected to contribute to future growth opportunities and synergies.

Conagra emphasizes a 'relentless focus on collaboration and innovation' to satisfy 'ever-changing food preferences,' and has made 'differential investments in our recruitment tools and our talent acquisition programs' to support this. The company also continued 'targeted investments in advertising and promotions in response to market conditions' in fiscal 2025.

Management continues to implement 'profit-enhancing initiatives' focused on 'cost-saving opportunities in procurement, manufacturing, logistics, and customer service, as well as general and administrative overhead levels.' These productivity initiatives partially offset the 'elevated amount of input cost inflation' experienced in fiscal 2025.

The Conagra Restructuring Plan, initiated in fiscal 2019 to improve SG&A effectiveness and supply chain network, has incurred cumulative pre-tax charges of $353.9 million through FY25, with $101.7 million recognized in FY25 alone. Management anticipates recognizing related costs through the end of fiscal 2026, indicating ongoing efforts to optimize operations.

The Refrigerated & Frozen segment experienced a 20.1% decrease in operating profit in FY25, primarily due to 'manufacturing challenges at the primary facility that prepares and cooks chicken used in our frozen meals.' This resulted in 'increased product costs from utilizing third-party manufacturers, as well as abnormal inventory costs while we temporarily stopped production,' indicating operational bottlenecks.

The company explicitly states that 'inflation, increased interest rates, and other economic conditions including potential recession and credit market disruptions, could negatively impact our business.' They experienced 'elevated amount of input cost inflation' in FY25 and expect it to continue into FY26, impacting costs of goods sold and potentially reducing sales volumes.

Disruptions in the global economy due to geopolitical conflicts, including those in Russia/Ukraine and the Middle East, continue to be a significant risk. Although no direct operations in these regions, the company has experienced or may experience 'shortages in materials from these regions, increased tariffs, sanctions or restrictions,' leading to 'increased costs or volatility relating to transportation, energy, and raw materials.'

The 10-K highlights that 'cyberattacks are occurring more frequently, are constantly evolving in nature and are becoming more sophisticated,' heightened by geopolitical turmoil. The company is exposed to these risks through its own systems and 'third-party service providers' in its supply chain, as evidenced by a $4.4 million charge in FY23 related to a third-party cybersecurity incident.

The food industry is 'highly competitive,' with challenges from 'retail customer consolidation, proliferation of new, competitive products, consumer behavior shifts,' and 'consumer price sensitivity.' This intense environment can lead to 'reduced sales due to loss of market share or the need to reduce prices to respond to competitive and customer pressures,' impacting margins and profits.

The 'substantial growth in e-commerce has encouraged the entry of new competitors and business models, intensifying competition by simplifying distribution and lowering barriers to entry.' This evolving retail landscape continues to impact consumer preferences and market dynamics, posing a threat to sales and profits.

Walmart, Inc. and its affiliates accounted for approximately 29% of consolidated net sales for fiscal 2025, up from 28% in FY24 and FY23. This significant customer concentration means that 'the loss of a significant customer or a material reduction in sales to a significant customer could materially and adversely affect our product sales, financial condition, and results of operations.'

The company's industry has been impacted by 'supply chain disruptions, transportation issues, labor challenges and continued changes in global economic conditions,' which have negatively affected operations and profitability. These disruptions make it difficult to source ingredients, manufacture, and distribute products, leading to increased costs and potential lost sales.

In fiscal 2025, the Refrigerated & Frozen segment faced 'manufacturing challenges at the primary facility that prepares and cooks chicken used in our frozen meals.' This resulted in 'increased product costs from utilizing third-party manufacturers, as well as abnormal inventory costs while we temporarily stopped production,' and impacted gross profits by approximately $10 million.

Conagra continues to execute its Restructuring Plan, initiated in fiscal 2019, to 'improve SG&A expense effectiveness and efficiencies and to optimize our supply chain network.' While significant charges have been incurred ($101.7 million in FY25), these initiatives are aimed at achieving a more appropriate cost structure in the highly competitive food industry.

The company reported R&D expenses of $60.8 million in fiscal 2025, $61.4 million in fiscal 2024, and $57.7 million in fiscal 2023. These investments support the 'introduction of new products and product extensions' which 'requires significant development and marketing investment' to meet changing consumer preferences.

Conagra is 'committed to investing in automation, connected data, improved equipment, and artificial intelligence to upgrade our operations and increase productivity.' However, these 'initiatives to continue to modernize our operations, increase data digitalization and improve connectively of our production facilities may increase our potential exposure to cybersecurity risks.'

The company emphasizes that its 'intellectual property rights, including our trademarks, licensing agreements, trade secrets, patents, and copyrights are of material importance to our business.' Inability to protect these rights or claims of infringement could 'materially and adversely affect our business, financial condition, and results of operations,' highlighting their strategic value.

Cash used in investing activities included capital expenditures of $389.3 million in fiscal 2025, slightly up from $388.1 million in fiscal 2024. The preliminary estimate for fiscal 2026 capital expenditures is approximately $450 million, indicating a continued commitment to investing in business and operating facilities.

The Board authorized a quarterly dividend payment of $0.35 per share, with $669.2 million in cash dividends paid in fiscal 2025, consistent with $659.3 million in FY24. Share repurchases in FY25 totaled $64.0 million (2.1 million shares), a decrease from $150.0 million in FY23, with $852.6 million remaining under authorization as of May 25, 2025.

Net interest expense decreased by $13.8 million (3.2%) to $416.7 million in fiscal 2025 compared to $430.5 million in fiscal 2024, primarily 'driven by an overall reduction of our debt balances.' The company prepaid $250.0 million of a term loan using operating cash flow and maintains an investment-grade credit rating.

The Occupational Safety and Health Administration Incident Rate improved to 1.32 incidents per 100 full-time workers in fiscal 2025, down from 1.40 in fiscal 2024 and 1.58 in fiscal 2023. This rate has been consistently below the food manufacturing industry average for the past three fiscal years, with no fatalities reported, demonstrating effective safety programs.

Conagra emphasizes a 'caring and performance-driven culture' leveraging 'six timeless values' and 'diversity of thought, skills, and lived experiences.' Initiatives include 'key recruitment, development, engagement, and retention strategies,' 'robust training and development programs,' and 'eight employee-led Employee Resource Groups,' fostering an inclusive work environment.

The company recognizes the 'growing concern that carbon dioxide and other greenhouse gases in the atmosphere may have an adverse impact on global temperatures, weather patterns, and the frequency and severity of extreme weather and natural disasters.' While acknowledging potential negative impacts on agricultural productivity and costs, Conagra states it 'continue[s] to take important steps to strive toward mitigation of climate risk.'

The company's business has been and may continue to be adversely affected by 'inflation, rising interest rates' and 'economic uncertainty.' In fiscal 2025, Conagra experienced an 'elevated amount of input cost inflation' and anticipates 'increased supply chain challenges, commodity cost volatility, and consumer and economic uncertainty' to persist into fiscal 2026.

Geopolitical conflicts, including those in Russia/Ukraine and the Middle East, are cited as factors that 'could materially adversely affect our business and results of operations.' These conflicts contribute to 'shortages in materials,' 'increased tariffs,' and 'increased costs or volatility relating to transportation, energy, and raw materials,' despite Conagra having no direct operations in these regions.

Consumer preferences are 'continuously evolving,' influenced by factors like 'taste, nutrition, pack and portion sizes,' and 'concerns regarding broader health and wellness perceptions.' The food industry also faces 'increased regulatory scrutiny' and 'changes in legal or regulatory requirements,' necessitating ongoing adaptation in product development and marketing.