Financial Data and Key Metrics Changes - The company reported net sales growth of 8.7% in Q4 2024, with organic constant currency net sales growing 9%, slightly ahead of expectations [23] - Adjusted gross margin increased by 60 basis points in Q4, reflecting stronger pricing and productivity gains [26] - Adjusted earnings per share for Q4 were $2.69, supported by robust net sales growth and effective cost management [28] Business Line Data and Key Metrics Changes - North America Confectionery segment saw an organic constant currency net sales increase of 5.9%, driven by approximately four points of price realization [24] - North America Salty Snacks segment experienced a significant increase of 35.9% in net sales, aided by inventory adjustments and strong performance from Skinny Pop and Dots pretzels [25] - Retail sales in North American salty snacks accelerated to 7.1% in Q4, with Skinny Pop and Dots pretzels contributing to growth [13] Market Data and Key Metrics Changes - The U.S. Candy, mint, and gum retail sales increased by 2% in Q4, indicating seasonal strength and growth in everyday business [7] - International segment achieved double-digit constant currency organic sales growth in Mexico and EMEA, with high single-digit growth in India [14] - Cocoa market remains volatile, with high prices expected to pressure earnings in 2025, although supply fundamentals indicate a slight surplus [16][31] Company Strategy and Development Direction - The company is focused on driving top-line growth and share momentum while executing transformation and efficiency programs [6] - Plans for 2025 include a strong year of innovation and media investment across the confection business [11] - The company aims to improve its cost structure by nearly $900 million between 2023 and 2026 while investing in capabilities and technology [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the pressure from rising cocoa prices but emphasized a commitment to long-term growth and efficiency [18] - The company expects net sales growth of at least 2% for the full year 2025, driven primarily by price realization [15] - Management expressed confidence in navigating short-term market challenges while focusing on long-term growth strategies [37] Other Important Information - The AAA program delivered $143 million in net savings in 2024, exceeding the target, with an increased savings target of $350 million for 2025 [27] - The company plans to maintain its dividend and prioritize share buybacks, projecting a decline in shares outstanding by approximately 50 basis points for the year [36] Q&A Session Summary Question: What are the expectations for cocoa prices in 2025? - Management indicated that cocoa prices are expected to remain high, impacting earnings, but they have good visibility into costs and supply [31] Question: How does the company plan to address competitive pressures in international markets? - The company expects continued expansion driven by household penetration, distribution, and innovation momentum despite competitive pressures [14] Question: What are the key growth drivers for the North America Salty Snacks segment? - Growth is expected to be driven by increased distribution, merchandising, media, and innovation, with solid mid-single-digit growth anticipated [25]