ConAgra Foods, Inc. (NYSE:CAG) Q4 2018 Earnings Conference Call Transcript

Jun 27, 2018 • 09:30 am ET

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ConAgra Foods, Inc. (NYSE:CAG) Q4 2018 Earnings Conference Call Transcript

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Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Conagra Brands' Acquisition of Pinnacle Foods and Fiscal Year 2018 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded.

I would now like to turn the conference over to Brian Kearney, Director of Investor Relations. Please go ahead, sir.

Executive
Brian Kearney

Good morning, everyone. Thanks for adjusting your schedules and joining us today. This morning, we will be discussing both our agreement to acquire Pinnacle Foods and our fourth quarter results.

I remind you that we will be making some forward-looking statements about Conagra Brands, the proposed acquisition of Pinnacle Foods and the expected benefits of the proposed acquisition. While we are making those statements in good faith, we do not have any guarantee about the results that we will achieve. Descriptions of risk factors are included in the documents we filed with the SEC.

Also, we will be discussing some non-GAAP financial measures during the call today. References to adjusted items refer to measures that exclude items impacting comparability. Please see the earnings press release for additional information on our comparability items. The reconciliations of those adjusted measures to the most directly comparable GAAP measures can be found in either the earnings press release or in the earnings slides, both of which can be found in the Investor Relations section of our website, conagrabrands.com.

Now I'll turn it over to Sean.

Executive
Sean Connolly

Thanks, Brian. Good morning, everyone, and thank you again for accommodating the date change and joining our conference call today to discuss our agreement to acquire Pinnacle Foods and our fiscal 2018 fourth quarter and full year earnings. We've got a lot to cover obviously, so let's go ahead and get started.

Over the past three years, we have made significant progress against our plan to transform Conagra into a pure-play branded food company and establish a solid platform for future growth. We've built industry-leading innovation capabilities, completely overhauled our culture and unlocked significant shareholder value. The impact of these efforts is evident in the tremendous Q4 that we announced today, having delivered 2% organic net sales growth and approximately 16% adjusted operating profit growth. Clearly, our hard work is paying off with improved and more consistent performance. All of these actions have positioned us to take the next step in our evolution.

Today's announcement of our agreement to acquire Pinnacle Foods builds on the strong foundation we've established and serves as a catalyst to accelerate value creation for shareholders. It will enhance our scale by combining two growing portfolios of iconic brands and create a leader in frozen food while also expanding our presence in snacks.

We're bringing together two highly complementary companies with a strong combined balance sheet, positioning us to capture compelling financial benefits including attractive synergies. Importantly, with a strong leadership team and proven capabilities driving brand building and innovation, we're confident in our ability to successfully integrate this acquisition and to build continued momentum and deliver meaningful shareholder value.

Now before I get