Achieved record full-year revenue of $2.5 billion by transitioning from a single-brand focus to a diversified modern energy platform including CELSIUS, Alani Nu, and Rockstar Energy. The portfolio now commands approximately 1/5 of the U.S. energy market in tracked channels, validated by the presence of two billion-dollar brands. Performance attribution for the CELSIUS brand was driven by a 7.5% year-over-year revenue increase, supported by a disciplined focus on SKU productivity and revenue growth man ...

Clorox Company Conference Call Summary Company Overview - **Company**: Clorox - **Industry**: Health and Hygiene, Household Essentials - **Key Executives**: Linda Rendle (Chair and CEO), Luc Bellet (EVP and CFO) Core Points and Arguments Digital Transformation and Operational Efficiency - Clorox has undergone a significant digital transformation, enhancing its operating model to improve efficiency and decision-making [1][3] - The company has fully rebuilt gross margins through its Holistic Margin Management program, which supports EBIT margin expansion of 25-50 basis points annually [1][24] - Clorox's portfolio consists of leading brands, with 80% holding the number one or two market share positions in their categories [5][6] Consumer Insights and Market Trends - Consumers are currently under stress, with nearly 90% engaging in value-seeking behaviors [11] - Historical spending on household essentials remains stable at 12%-14% of consumer budgets over the last 20 years, indicating a consistent demand for these products [6] - The rise of mental health awareness and the desire for comfort and joy in home environments are influencing consumer behavior [12][13] Innovation and Product Development - Clorox has strengthened its innovation pipeline, with a focus on faster idea generation and higher consumer appeal [30][32] - The company is launching Clorox Pure, a new allergen neutralizer, addressing a significant unmet need in the allergy remedies market, projected to grow by 20% in the next two years [33][34] - The Scentiva platform has been relaunched, doubling household penetration and expanding into new segments [41] Acquisition of GOJO Industries - Clorox is in the process of acquiring GOJO Industries, the maker of PURELL, which is expected to enhance Clorox's health and hygiene segment [52][53] - The acquisition will increase Clorox's health and hygiene sales to over 50% of total company sales, with GOJO expected to grow mid-single digits to high single digits [65] Financial Performance and Outlook Recent Performance - Clorox's organic sales growth has been mixed, with expectations for growth between -1.5% to +2.5% for the fiscal year [60] - The company has successfully rebuilt gross margins after a decline of 800 basis points during the inflationary cycle [63] Long-term Financial Goals - Clorox targets long-term sales growth of 3%-5% and EBIT margin expansion of 25-50 basis points [61] - The company has a disciplined approach to capital allocation, focusing on reinvestment, dividends, and share repurchase programs [66] Additional Important Insights - Clorox is leveraging AI and data analytics to enhance personalization in marketing, with 70% of marketing now personalized based on digital signals [21] - The company is adapting to e-commerce trends, achieving a 19% growth in e-commerce sales with leading retailers [49] - Clorox is focusing on sustainability and operational excellence as part of its strategic playbook [5][6] This summary encapsulates the key points discussed during the Clorox conference call, highlighting the company's strategic initiatives, market insights, and financial outlook.

CAGNY 2026 Linda Rendle Chair & Chief Executive Officer Luc Bellet EVP & Chief Financial Officer Safe Harbor Except for historical information, matters discussed in this presentation, including statements about the success of the Company's future volume, sales, costs, cost savings, earnings, earnings per share, including as a result of the GOJO acquisition, foreign currency exchange rates, cash flows, plans, objectives, expectations, growth or profitability, are forward-looking statements based on managemen ...

Financial Data and Key Metrics Changes - The company reported revenue of EUR 20.9 billion, an increase of 2.8%, with comparable volumes marginally ahead [12] - Operating profit reached EUR 2.8 billion, up 7.1%, with an operating margin of 13.4%, an expansion of around 50 basis points [14] - Earnings per share (EPS) increased to EUR 4.11, up 6.2% on a comparable basis [14] - Free cash flow was strong at just over EUR 1.8 billion, after significant capital expenditures of nearly EUR 1 billion [15] Business Line Data and Key Metrics Changes - The away-from-home channel saw robust top-line growth, contributing to overall market share gains [4] - The non-alcoholic ready-to-drink (NARTD) category grew around 6% in value terms, with Europe up 2% and Australia Pacific Southeast Asia (APS) up 5% [7] - The energy category experienced a remarkable 19% volume growth, driven by strong innovation and market demand [66] Market Data and Key Metrics Changes - The UK market, the largest revenue contributor, saw revenue growth of almost 6%, with significant contributions from Coca-Cola Zero and Diet Coke [16] - In Australia, top-line performance excluding alcohol was impressive at 7%, marking the strongest growth in years [17] - Indonesia faced challenges with NARTD volumes down double digits, but showed signs of improvement in the second half of the year [27] Company Strategy and Development Direction - The company is focused on creating value through strategic portfolio changes and investments in growth, with a commitment to maximizing shareholder returns [4][20] - There is an emphasis on innovation and premiumization while maintaining affordability, particularly in developed markets [22][23] - The company is leveraging technology and digital capabilities to enhance productivity and decision-making processes [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth of 7% and sustainable profit growth over the midterm [33] - The company anticipates revenue growth of 3%-4% for 2026, driven by volume and revenue per unit case [34] - Management acknowledged the challenges in the consumer environment but remains optimistic about the company's positioning in profitable categories [36] Other Important Information - The company returned EUR 1.9 billion to shareholders through dividends and buybacks, including a new EUR 1 billion share buyback program [15][20] - The company has been recognized as a top employer and is investing in digital and AI training for its workforce [8] Q&A Session Summary Question: How did Europe perform in Q4, particularly in Germany and France? - Management noted a strong exit rate in December, with challenges in Germany and France due to higher promotional prices and tax increases impacting volumes [39][40][41] Question: What is the expected free cash flow guidance for 2026? - The company guided for at least EUR 1.7 billion in free cash flow for 2026, reflecting increased CapEx investments [42] Question: What tailwind is expected from the World Cup? - Management highlighted extensive activation plans for the World Cup and EPL, aiming to engage consumers through promotions and on-pack activities [46][47] Question: What is the outlook for energy category growth? - Management expects the energy category to maintain mid-teen growth levels, supported by innovation and distribution improvements [66] Question: What is the potential for revenue growth management in mature markets? - Management sees significant opportunities for revenue growth through smarter pricing and promotional strategies, with ongoing flexibility in pack formats [73][74]

Financial Data and Key Metrics Changes - The company reported revenue of EUR 20.9 billion, an increase of 2.8%, with comparable volumes marginally ahead [12] - Operating profit reached EUR 2.8 billion, up 7.1%, with an operating margin of 13.4%, an expansion of around 50 basis points [13] - Earnings per share (EPS) increased to EUR 4.11, up 6.2% on a comparable basis [13] - Free cash flow was strong at just over EUR 1.8 billion, after significant capital expenditures of nearly EUR 1 billion [14] Business Line Data and Key Metrics Changes - The away-from-home channel saw robust top-line growth, contributing to overall market share gains [4] - The non-alcoholic ready-to-drink (NARTD) category grew approximately 6% in value terms, with Europe up 2% and Australia Pacific Southeast Asia (APS) up 5% [6] - The energy category experienced a remarkable 19% volume growth, driven by strong brand performance and innovation [64] Market Data and Key Metrics Changes - Great Britain (GB) reported nearly 6% revenue growth, with significant contributions from Coca-Cola Zero and Diet Coke [16] - APS delivered top-line performance, excluding alcohol, of 7%, marking its strongest growth in years [17] - Indonesia faced challenges with a double-digit decline in NARTD volumes, although there was an improvement in the second half of the year [28] Company Strategy and Development Direction - The company is focused on creating value through strategic portfolio changes and investments in growth, with a commitment to maximizing shareholder returns [4][20] - There is an emphasis on innovation and premiumization while maintaining affordability, particularly in developed markets [24] - The company is leveraging technology and digital capabilities to enhance operational efficiency and customer engagement [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth of 7% and sustainable profit growth over the midterm [34] - The company anticipates revenue growth of 3%-4% for 2026, driven by volume and revenue per unit case [34] - Management acknowledged challenges in certain markets but remains optimistic about recovery and growth potential [36] Other Important Information - The company returned EUR 1.9 billion to shareholders through dividends and buybacks, including a new EUR 1 billion share buyback program [15][20] - The company has been recognized as a top employer and is investing in digital and AI training for its workforce [8] Q&A Session Summary Question: How did Europe perform in Q4, particularly in Germany and France? - Management noted a strong exit rate in Q4, with challenges in Germany and France primarily due to higher promotional prices and tax increases impacting volumes [39][41] Question: What tailwind is expected from the World Cup? - Management highlighted extensive activation plans for the World Cup and EPL, aiming to engage consumers through promotions and on-pack activities [46][48] Question: What is the outlook for energy category growth? - Management expects the energy category to maintain mid-teen growth levels, supported by innovation and distribution improvements [64][66] Question: How is the company addressing revenue growth management in mature markets? - Management sees significant opportunities for revenue growth through smarter pricing and promotional strategies, with ongoing efforts to optimize pack offerings [72][74] Question: What is the outlook for Indonesia's market performance? - Management indicated a stronger finish to the year in Indonesia, with expectations for growth in both volume and revenue, while remaining cautious about guidance [77][78]

Core Insights - Reynolds Consumer Products reported fourth-quarter net revenues of $1.03 billion, a 1% increase from $1.02 billion year-over-year, with adjusted EBITDA of $220 million, marking a 3% year-over-year growth, and adjusted EPS of $0.59 compared to $0.58 in the prior-year quarter, exceeding all guided metrics [1][6]. Financial Performance - For the full year 2025, net revenues reached $3.7 billion, up 1% year-over-year, while adjusted EBITDA was $667 million, slightly down from $678 million in 2024, and adjusted EPS was $1.64 compared to $1.67, noting a prior year tax benefit [12]. - Free cash flow for 2025 was $316 million, supported by effective working capital management, with a net leverage ratio of 2.1x at year-end [5][14]. Market Dynamics - The company experienced broad market share gains and improved profitability despite challenges such as commodity inflation and tariff pressures, with significant performance in Hefty Waste Bags, Hefty Food Bags, and Reynolds Wrap [2][3]. - Competitive conditions intensified in the fourth quarter, particularly in waste and food bags, prompting the company to maintain its pricing strategy to protect brand equity [10]. Strategic Initiatives - Innovation and revenue growth management were highlighted as key themes for 2025, with new product launches including Hefty Waste Bags with new scents and Reynolds Kitchens Parchment Cooking Bags [7][8]. - The company plans to realign its category organization in 2026 to enhance clarity and focus, consolidating waste bags and food bags into distinct business units [19]. 2026 Outlook - Management anticipates flat adjusted EBITDA for 2026 amid ongoing headwinds, with net revenues expected to decline by 3% to increase by 1% compared to 2025 [4][16]. - Capital expenditures are projected to remain elevated in the low $200 million range to support automation and strategic initiatives [20].

Financial Data and Key Metrics Changes - The company reported net revenues of $1.03 billion for Q4 2025, representing a 1% increase from $1.02 billion in Q4 2024 [18] - Full-year net revenues for 2025 were $3.7 billion, also reflecting a 1% year-over-year growth [20] - Adjusted EBITDA for Q4 2025 was $220 million, a 3% increase compared to the same period in 2024 [20] - Full-year adjusted EBITDA decreased to $667 million from $678 million in 2024 [21] - Adjusted EPS for Q4 2025 was $0.59, slightly up from $0.58 in Q4 2024 [20] Business Line Data and Key Metrics Changes - The Hefty Waste and Storage and Presto segments delivered strong volume growth and share gains in Q4 2025 [19] - Hefty Tableware saw slight sequential volume improvement but continued to face challenges due to declines in foam products [19] - The company achieved share gains across its six largest core categories, outperforming its categories by over 1 point in 2025 and by 2 points in Q4 [6][18] Market Data and Key Metrics Changes - The competitive landscape in the waste bag and food bag categories intensified, with increased promotional and pricing activity from competitors [11] - The company noted a pronounced increase in promotional activities in the waste category as it exited 2025 [40] - Retail volumes were down 2 points in Q4, but the company managed to maintain pricing power despite commodity pressures [11][18] Company Strategy and Development Direction - The company is focused on innovation and differentiation as central to its growth strategy for 2026, building on the momentum established in 2025 [14] - A restructuring of the Hefty and Presto segments aims to enhance clarity and focus on category management, rather than cost-cutting [64] - The company plans to continue investing in automation and productivity initiatives to improve operational efficiency [23] Management's Comments on Operating Environment and Future Outlook - Management anticipates sustained headwinds in 2026, emphasizing the need for adaptability and focus [10] - The company expects net revenues for 2026 to range from -3% to +1% compared to 2025, with retail branded sales expected to perform at or above category performance [24] - Management expressed confidence in the company's ability to navigate challenges and maintain stable results in 2026, with adjusted EBITDA expected to be flat year-over-year [13][25] Other Important Information - The company generated free cash flow of $316 million in 2025, benefiting from tight working capital management [22] - The company reduced its net debt leverage to 2.1x, providing financial flexibility for future investments [22] - Capital expenditures for 2026 are expected to remain elevated, with a focus on organic investment opportunities [28] Q&A Session Summary Question: Can you provide more details on the restructuring with Presto and Hefty? - Management emphasized clarity and focus in category management, aiming for end-to-end management across each business unit without significant personnel changes [32][34] Question: Are we nearing a stabilization point for foam products? - Management indicated that while the category saw a 14% decline in 2025, they expect a reduced rate of decline in 2026, driven by consumer behavior and cost considerations [36] Question: Can you elaborate on the competitive dynamics in the Hefty business? - Management noted increased promotional activity from competitors but remains committed to maintaining brand equity and pricing strategy [40][41] Question: How do you view the elasticity of aluminum foil pricing? - Management believes that gradual price increases have helped mitigate elasticity risks, with tighter price gaps to private label brands providing some insulation [75] Question: What is the outlook for SG&A expenses in 2026? - Management plans to increase SG&A to support innovation and strategic initiatives while maintaining discipline in controllable costs [56]

Financial Data and Key Metrics Changes - The company reported net revenues of $1.03 billion for Q4 2025, representing a 1% increase from $1.02 billion in Q4 2024 [18] - Full-year net revenues for 2025 were $3.7 billion, also reflecting a 1% year-over-year growth [20] - Adjusted EBITDA for Q4 2025 was $220 million, a 3% increase compared to the same period in the previous year [20] - Full-year adjusted EBITDA decreased to $667 million from $678 million in 2024 [21] - Free cash flow for the full year was $316 million, benefiting from tight working capital management [22] Business Line Data and Key Metrics Changes - The Hefty Waste and Storage and Presto segments delivered strong volume growth and share gains in Q4 2025 [19] - Hefty Tableware saw slight sequential volume improvement but continued to face challenges due to declines in foam products [19] - The company achieved share gains across its six largest core categories, outperforming the market by 2 points in Q4 2025 [6][18] Market Data and Key Metrics Changes - The competitive landscape in the waste bag and food bag categories intensified, with increased promotional and pricing activity from competitors [11] - The company noted a decline in retail volumes of 2 points, despite implementing pricing actions to offset commodity cost increases [11][20] Company Strategy and Development Direction - The company is focused on three core pillars: Revenue Growth Management, Share Gap Selling, and Innovation [14] - A restructuring of the Hefty and Presto segments aims to enhance clarity and focus on category innovation and growth opportunities [34][64] - The company plans to continue investing in innovation and distribution opportunities to accelerate earnings growth [23] Management's Comments on Operating Environment and Future Outlook - Management anticipates sustained headwinds in 2026, emphasizing the need for adaptability and focus [10] - The company expects net revenues for 2026 to range from -3% to +1% compared to 2025, with retail branded sales expected to perform at or above category performance [24][25] - Management remains confident in the company's category leadership and innovation capabilities despite near-term challenges [13] Other Important Information - The company successfully refinanced its term loan facility and reduced net debt leverage to 2.1 times, providing financial flexibility for future investments [22] - The company plans to realign its category organization to increase efficiencies and sharpen focus on innovation [15] Q&A Session Summary Question: Can you provide more details on the restructuring with Presto and Hefty? - The restructuring aims for clarity and focus, allowing dedicated teams to manage categories more effectively without significant personnel changes [32][34] Question: Are we nearing a stabilization point for foam products? - Volumes in the foam category were down about 14% in 2025, with expectations of a reduced decline in 2026, driven by consumer behavior and cost considerations [36] Question: Can you elaborate on the competitive dynamics around the Hefty business? - The company has seen increased promotional activity from competitors but believes maintaining price points is essential for brand equity [40][41] Question: How do you view the elasticity of aluminum foil pricing? - The company has observed tighter price gaps to private label and believes gradual price increases have helped mitigate elasticity risks [75][76] Question: What is the outlook for SG&A expenses in 2026? - SG&A is expected to increase as the company invests in innovation and strategic initiatives, following a year of optimizing costs [56]

Financial Data and Key Metrics Changes - The company reported net revenues of $1.03 billion for Q4 2025, representing a 1% increase from $1.02 billion in Q4 2024 [19] - Full-year net revenues for 2025 were $3.7 billion, also reflecting a 1% year-over-year growth [22] - Adjusted EBITDA for Q4 2025 was $220 million, a 3% increase compared to the same period in 2024 [21] - Full-year adjusted EBITDA for 2025 was $667 million, down from $678 million in 2024 [23] - Free cash flow for the full year was $316 million, benefiting from tight working capital management [24] Business Line Data and Key Metrics Changes - The Hefty Waste and Storage and Presto segments delivered strong volume growth and share gains in Q4 2025 [20] - Hefty Tableware saw slight sequential volume improvement but continued to face challenges due to declines in foam products [20] - The company achieved share gains across its six largest core categories, outperforming the market by 2 points in Q4 2025 [5][19] Market Data and Key Metrics Changes - Retail volumes exceeded overall category trends, outperforming by 2 points [19] - The foil category maintained constructive dynamics despite multiple price increases [19] - The competitive landscape intensified in the waste bag and food bag categories, with increased promotional and pricing activity from competitors [11] Company Strategy and Development Direction - The company is focused on three core pillars: Revenue Growth Management, Share Gap Selling, and Innovation [13][15] - A restructuring of category organization is planned to enhance efficiency and sharpen focus on innovation [16] - The company aims to continue investing in innovation and distribution opportunities to accelerate earnings growth [25] Management's Comments on Operating Environment and Future Outlook - The management anticipates sustained headwinds in 2026, emphasizing the need for adaptability and focus [10] - The company expects net revenues for 2026 to range from -3% to +1% compared to 2025 [26] - Adjusted EBITDA for 2026 is projected to be between $660 million and $675 million [27] Other Important Information - The company successfully refinanced its term loan facility, extending debt maturity and reducing net debt leverage to 2.1 times [24] - The management highlighted the importance of maintaining brand equity and a long-term view on pricing strategy [42] Q&A Session Summary Question: Can you provide more details on the restructuring with Presto and Hefty? - The restructuring aims for clarity and focus, allowing dedicated teams to manage categories more effectively without significant personnel changes [34][35] Question: Are we nearing a stabilization point for foam products? - Volumes in the foam category were down about 14% in 2025, with expectations of a lesser decline in 2026 [37] Question: What are the competitive dynamics around the Hefty business? - The company has seen increased promotional activity from competitors but believes maintaining price points is essential for brand equity [41][42] Question: How is the company managing pricing and elasticity in the foil category? - The company has taken measured quarterly price increases and observed tighter price gaps with private labels, which may provide some insulation against elasticity risks [76] Question: What is the outlook for SG&A expenses in 2026? - SG&A is expected to increase as the company invests in innovation and strategic initiatives, following a year of cost optimization [56]

Core Insights - Coca-Cola's Revenue Growth Management (RGM) strategy is crucial for maintaining growth amidst challenging consumer conditions, with a focus on pricing, pack architecture, and channel mix [2][6] - In Q3 2025, Coca-Cola's revenues increased by 5% to $12.46 billion, with organic revenues rising by 6% and gaining value share in key markets [3][11] - The company is balancing pricing strategies with mix optimization, utilizing smaller pack sizes to address affordability while driving revenue growth [4][11] Revenue Growth Management Strategy - RGM involves refining brand-price-pack architecture to cater to diverse consumer needs, with smaller pack sizes like mini cans generating a $1 billion revenue stream in North America [4] - Coca-Cola is also enhancing its product mix with premium offerings, demonstrating RGM's role in both accessibility and premiumization [5] - The company emphasizes that recent growth is attributed to targeted RGM actions, collaboration with bottlers, and quicker local decision-making [6] Competitive Landscape - PepsiCo's revenue growth strategies are gaining traction through optimized promotions and affordable pack sizes, leading to improved volumes and sustained pricing discipline [8] - Keurig Dr Pepper's initiatives are yielding results with disciplined pricing and strong brand execution, contributing to solid net sales growth [9] Financial Performance - Coca-Cola's organic revenue growth of 6% in Q3 2025 aligns with the high end of its long-term growth algorithm [11] - The company's shares have appreciated by 13.6% over the past year, outperforming the industry growth of 9.6% [12] - Coca-Cola's forward price-to-earnings ratio stands at 21.45X, higher than the industry's 17.84X [14] Earnings Estimates - The Zacks Consensus Estimate for Coca-Cola's earnings implies year-over-year growth of 3.5% for 2025 and 8% for 2026, with estimates remaining unchanged over the past 30 days [16]