ConAgra Foods Inc (CAG)

Gross profit margin

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022
Gross profit (ttm)	US$ in thousands	3,003,500	3,101,200	747,500	759,600	362,100	403,800	2,358,700	2,323,000	2,354,700	2,291,500	1,555,400	1,571,100	1,558,900	1,697,800	2,568,400	2,449,900	1,558,200	1,349,300	1,066,800	1,043,700
Revenue (ttm)	US$ in thousands	11,612,800	11,736,900	11,700,100	11,537,900	11,661,100	11,963,300	12,243,900	12,115,000	12,014,400	11,779,600	11,547,400	11,729,900	11,878,000	12,217,600	12,582,900	12,400,700	12,251,800	11,848,900	11,457,200	11,466,600
Gross profit margin		25.86%	26.42%	6.39%	6.58%	3.11%	3.38%	19.26%	19.17%	19.60%	19.45%	13.47%	13.39%	13.12%	13.90%	20.41%	19.76%	12.72%	11.39%	9.31%	9.10%

May 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $3,003,500K ÷ $11,612,800K
= 25.86%

The gross profit margin of ConAgra Foods Inc. has exhibited notable fluctuations over the observed period. Starting from approximately 9.10% in August 2022, the margin experienced a steady increase, reaching a peak of around 20.41% by late February 2023. This upward trend suggests an improvement in gross profitability, potentially driven by higher sales prices, better cost control, or product mix shifts favoring higher-margin offerings during this interval.

However, subsequent figures indicate a decline in gross profit margin through the mid-2023 period, with values decreasing to approximately 13.39-13.47% by August 2023, which signifies a reduction in gross profitability compared to the earlier peak. This decline could be attributable to rising costs, competitive pricing pressures, or other operational challenges impacting gross margins.

At the end of 2023 and beginning of 2024, the gross profit margin maintained a relatively stable level in the vicinity of 19%, reaffirming a period of relatively consistent profitability. Nevertheless, a sharp decrease was observed in May 2024, with the margin falling to approximately 3.38-3.11%, indicating a substantial contraction in gross profitability. This dramatic decline may reflect extraordinary circumstances such as significant cost increases, asset impairments, or disruptions in revenue streams.

Following this trough, the margin showed signs of partial recovery, rising to about 6.58-6.39% by late 2024. Yet, the subsequent data reveals a notable rebound in early 2025, with gross profit margins reaching approximately 26.42-25.86%, which suggests a strong turnaround possibly driven by strategic initiatives, product line improvements, or favorable market conditions.

Overall, the gross profit margin trajectory of ConAgra Foods Inc. demonstrates periods of substantial fluctuation over the observed timeframe, characterized by initial growth, subsequent decline, a period of relative stability, a pronounced drop, and a robust recovery. These dynamics highlight the company's exposure to both operational and external factors impacting its gross profitability over time.