ConAgra Foods, Inc. (NYSE:CAG) Q4 2019 Earnings Conference Call Transcript

Jun 27, 2019 • 09:30 am ET


ConAgra Foods, Inc. (NYSE:CAG) Q4 2019 Earnings Conference Call Transcript


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David S. Marberger

towards the second half as our distribution, trial and repeat builds throughout the year.

We also expect a highly promotional environment in select categories that we experienced in Q4 to continue in the near term. As Sean mentioned, we have seen these situations before and will remain agile in how we respond to competition. Consistent with what we've been saying since December, we continue to expect Legacy Pinnacle sales trends to improve in the second half of fiscal '20. We also expect margins to improve during the second half of fiscal '20 as the innovation related investment will be higher in the first half as I just mentioned. And for Pinnacle, by the second half of fiscal '20, we expect to lap the elevated input cost inflation in transportation and costs that the business had been experiencing.

We also expect synergies to increase as we move through the course of the year. Finally, we expect Pinnacle will continue to be dilutive to our year-over-year gross margin, until we anniversary the acquisition in late October.

Thank you for listening. That concludes my remarks. I'll now pass it to the operator as Sean, Tom McGough, Darren Serrao and I are ready to take your questions.