Company Overview - Huhtamaki Oyj is a leading global provider of sustainable packaging solutions, focusing on food and beverage safety, hygiene, and waste prevention [3][4] - The company has over 100 years of history and operates in 36 countries with around 18,000 professionals [4] Financial Information - In 2024, Huhtamaki's net sales totaled EUR 4.1 billion [4] Upcoming Events - Huhtamaki will publish its 2025 Half-yearly Report on July 24, 2025, at approximately 8:30 EEST [1] - A combined audiocast and teleconference will be held on the same day at 9:30 EEST, featuring presentations from the CEO and CFO [2] - An on-demand replay of the audiocast will be available shortly after the call [3]

Industry Overview - The U.S. coffee market is projected to remain resilient in 2025, driven by strong consumer loyalty, daily ritual-driven demand, and increasing mobile ordering and digital rewards adoption [2] - The global coffee market is expected to grow from $145.84 billion in 2025 to $201.41 billion by 2032, reflecting a steady CAGR of 4.72% [4] - Innovations in eco-friendly brewing, ready-to-drink formats, and sustainable packaging are reshaping consumer behavior, while regional dynamics like rising North American home consumption and European export demand are broadening the industry's reach [3] Starbucks Corporation (SBUX) - Starbucks is implementing a turnaround strategy called "Back to Starbucks," focusing on enhancing customer and employee experiences through improved store operations, labor deployment, and menu offerings [6] - A new green apron service model is being rolled out across thousands of U.S. stores to improve peak-hour throughput and customer interactions [7] - The company is making significant changes to store design to reclaim its "third place" identity, aiming to drive higher in-store engagement [8] - Internationally, Starbucks is seeing momentum in key markets like the U.K., Japan, and Canada, with early signs of stabilization in China [9] - Despite long-term growth ambitions, Starbucks faces near-term challenges, including a decline in global comparable store sales and intensified margin pressures [11] - The Zacks Consensus Estimate for Starbucks' fiscal 2025 sales suggests a year-over-year increase of 2%, while EPS indicates a decline of 23.6% [17] - Starbucks stock has gained 6.8% in the past year, underperforming its industry and the S&P 500 [20] - Starbucks is trading at a forward 12-month price-to-sales (P/S) ratio of 2.49X, below the industry average of 4.06X [23] Dutch Bros Inc. (BROS) - Dutch Bros aims to reach 2,029 shops by 2029, executing a disciplined expansion plan supported by strong leadership and market planning [12] - The company is innovating through vibrant limited-time offerings (LTOs) and a personalized loyalty program, Dutch Rewards, which accounts for the majority of transactions [14] - Dutch Bros is gaining traction with its Order Ahead platform, effectively capturing morning demand [15] - The company is focused on maintaining quality while scaling, improving throughput, and moving toward capital-light lease models [16] - The Zacks Consensus Estimate for Dutch Bros' 2025 sales and EPS suggests year-over-year increases of 23.5% and 24.5%, respectively [18] - Dutch Bros shares have surged 95.5% in the past year [20] - Dutch Bros is trading at a forward 12-month P/S multiple of 6.61X [23] Comparative Analysis - Both Starbucks and Dutch Bros are navigating a resilient coffee industry, leveraging innovation and strategic expansion [26] - Dutch Bros stands out with its rapid growth trajectory and superior earnings momentum, appealing to younger consumers [26] - Starbucks offers unmatched global scale and a comprehensive turnaround plan, but faces near-term headwinds that could impact investor confidence [27] - Dutch Bros holds the edge as the more compelling coffee stock for 2025, backed by stronger growth estimates and elevated investor sentiment [28]

Group 1 - Huhtamaki has appointed Axel Glade as President of the Flexible Packaging segment, effective July 1, 2025, earlier than previously announced [1] - Axel Glade will report to Ralf K. Wunderlich, the President & CEO, and will be based in Espoo, Finland [1] - Glade joins Huhtamaki from Constantia Flexibles, where he served as Executive Vice President of the Film Division [1] Group 2 - The Global Executive Team will include Ralf K. Wunderlich (Chair), Fredrik Davidsson, Sara Engber, Thomas Geust, Axel Glade, Ann O'Hara, Sami Pauni, Johan Rabe, Ingolf Thom, and Changsheng Wu [2] - Huhtamaki is a leading global provider of sustainable packaging solutions, focusing on hygiene, safety, accessibility, affordability, and food waste prevention [3] - The company has over 100 years of history, operates in 36 countries with around 18,000 professionals, and reported net sales of EUR 4.1 billion in 2024 [4]

Core Viewpoint - S&P Global Ratings upgraded Huhtamaki Oyj's long-term issuer credit rating to BBB- with a stable outlook, indicating the company's credit rating is now considered investment grade [1]. Financial Position - Huhtamaki has a solid financial position, with a net debt to adjusted EBITDA ratio of 2.0 at the end of March 2025, which is at the lower end of the target range of 2-3x [2]. Company Overview - Huhtamaki is a leading global provider of sustainable packaging solutions, with over 100 years of history and a strong Nordic heritage. The company operates in 36 countries with around 18,000 professionals across 102 locations [3]. - In 2024, Huhtamaki's net sales totaled EUR 4.1 billion, and the company is listed on the Nasdaq Helsinki with its head office located in Espoo, Finland [3].

Financial Data and Key Metrics Changes - PepsiCo delivered 2% organic revenue growth for the full year 2024, with a 9% growth in core constant currency earnings per share, exceeding guidance of at least 8% [4] - Over the past five years, net revenue increased by 37% to nearly $92 billion, while core EPS rose by 48% [4][5] Business Line Data and Key Metrics Changes - The international business generated net revenue of $37 billion, accounting for 40% of total net revenue and 39% of core division operating profit mix [5] - Core operating profit for the international business has compounded annually at 10% over the last five years [5] Market Data and Key Metrics Changes - Approximately 60% of PepsiCo's business comes from geographies with only 5% of the global population, indicating significant growth potential in other regions [6] Company Strategy and Development Direction - PepsiCo is focusing on four key pillars: evolving the product portfolio, expanding availability, modernizing the company, and enhancing sustainability through Pep Positive [7] - The company aims to innovate its product offerings, including no sugar beverages and healthier ingredients, while also expanding its presence in high-growth channels and markets [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite challenges such as the global pandemic and high inflation, believing the runway for growth remains vast [5][6] - The company is committed to transforming its supply chain and evolving its portfolio to support sustainable growth and value [14] Other Important Information - PepsiCo has made significant strides in sustainability, including incorporating recycled materials into packaging and achieving water use efficiency goals ahead of schedule [15][56] - The company has engaged in various initiatives to enhance its positive impact on communities and the environment [15][56] Q&A Session Summary Question: Thoughts on paying down debt instead of buying back stock - The company plans to repay $4 billion of long-term debt and return approximately $8.6 billion to shareholders in 2025, including $1 billion through share repurchases [79] Question: Dividend increase for Pepsi stock - A 5% increase in the annualized dividend per share was announced earlier this year, marking the 53rd consecutive annual increase [80] Question: Impact of GLP-1 drugs on Pepsi products - The company is monitoring GLP-1 trends and has observed that consumers are adjusting their consumption patterns, which the diverse portfolio can address [82] Question: Current debt levels - Total debt stands at $48.5 billion, with $8.3 billion in cash and equivalents, and 81% of the debt is long-term [84]

Industry Overview - The Zacks Paper and Related Products industry is facing subdued demand due to lower consumer spending and a decline in graphic paper demand driven by digitalization [1][4] - However, increasing packaging requirements from e-commerce and steady demand from consumer-oriented markets like food, beverages, and healthcare are expected to support the industry [1][5] - Environmental awareness is enhancing the appeal of paper as a sustainable packaging alternative, acting as a significant growth driver [1] Major Trends - The transition to digital media has negatively impacted the graphic paper market, leading to a shift in production focus towards packaging and specialty paper [4] - Rising costs for transportation, chemicals, and fuel are pressing concerns, prompting companies to focus on pricing actions, cost reduction, and automation to enhance productivity [4] - Despite current challenges, the industry's exposure to consumer-focused markets ensures stable earnings growth, with global e-commerce revenues projected to reach $4.3 trillion by 2025 [5] M&A Activities - Increased demand for sustainable packaging is driving M&A activities in the industry, exemplified by the merger of Smurfit Kappa and WestRock to form Smurfit Westrock [6] - International Paper's acquisition of DS Smith aims to strengthen its corrugated packaging business and enhance sustainable packaging solutions [6][18] Industry Performance - The Zacks Paper and Related Products industry has outperformed the S&P 500 and the Basic Materials sector over the past year, with a gain of 14.2% compared to a 15.7% decline in the sector [10] - The industry is currently trading at a forward 12-month EV/EBITDA ratio of 8.49X, lower than the S&P 500's 12.88X and the Basic Materials sector's 7.01X [12] Company Highlights - Suzano inaugurated the world's largest single-line pulp mill, increasing its pulp production capacity by 24% to 13.5 million tons per year, leading to record sales of 12.3 million tons in 2024 [15][16] - The Zacks Consensus Estimate for Suzano's 2025 earnings has increased by 26% in the past 90 days, indicating a year-over-year growth of around 304% [16] - International Paper's acquisition of DS Smith is expected to yield $600-$700 million in pre-tax cash synergies by 2027, with projected net sales of $26-$28 billion and adjusted EBITDA of $5.5-$6 billion by 2027 [18]

Core Points - Amcor has extended the application period for its Amcor Lift-Off Sprints challenge, which supports innovative companies providing compostable or recyclable barrier coatings solutions [1][4] - The initiative aims to foster technical collaborations with start-ups and innovators to address specific R&D challenges, offering successful applicants funding of up to $500,000 [3][4] - The application deadline is set for April 13, 2025, with key dates including shortlisting on April 25, 2025, and Final Pitch Day on May 12, 2025 [8] Company Overview - Amcor is a global leader in responsible packaging solutions, generating $13.6 billion in annual sales in fiscal year 2024, with operations in 212 locations across 40 countries [7] - The company focuses on creating packaging that is recyclable, reusable, and made with increasing amounts of recycled content, serving various sectors including food, beverage, and pharmaceuticals [7]

Financial Performance - Q2 2024 Adjusted EBITDA reached $178 million, an 18% increase year-over-year[43] - The company improved its full-year Adjusted EBITDA guidance to a range of $640 - $660 million[13] - LTM Adjusted EBITDA rose to $631 million in Q2[13] - Group revenue was broadly unchanged versus the prior year at $1,259 million[44] Regional Performance - Europe shipments grew by 5% in Q2, indicating a recovery[13, 16] - Americas shipments grew by 1% in Q2, with North America growing by 3%[13, 16] - Brazil shipments declined by 7% in Q2 due to temporary customer effects[16] - Europe Adjusted EBITDA margin was 14%, up from 11.5% in the prior year[44] - Americas Adjusted EBITDA margin was 14.3%, up from 12.4% in the prior year[44] Liquidity and Debt - A new $300 million secured financing commitment with Apollo Capital Management will further strengthen liquidity in H2[25] - Net debt stood at $3.657 billion with available liquidity of $405 million[45] - The company expects modest deleveraging in 2024[25, 47] Sustainability - All global AMP production facilities have now achieved ISO 14001 certification[22] - A solar power purchase agreement in Germany has been extended to 2030, covering up to 40% of German demand needs[21]