Conagra free cash flow doubles, enabling debt cuts, 3.55x debt ratio

By Devika Patel

Knoxville, Tenn., Oct. 6 – Conagra Brands, Inc. has reduced its net leverage ratio down to 3.55x as of Aug. 27 from 3.63x as of May 28 and from even higher a year ago.

The company has been paying down debt using strong free cash flow, which was $300 million for the last quarter.

“[First quarter] free cash flow more than doubled from a year ago, coming in at $300 million,” executive vice president and chief financial officer David Marberger said on the company’s third quarter ended Aug. 27 earnings conference call on Thursday.

“This strong free cash flow enabled us to pay down approximately $130 million of net short-term debt.

“At the end of the quarter, our net leverage ratio was 3.55x, down from the end of fiscal [2023].

“We will continue to prioritize reducing our debt and lowering our net leverage ratio in fiscal [2024],” he said.

Adjusted EBITDA increased 12.1% year-over-year to $613 million in the quarter.

The packaged food company is based in Chicago.

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