Financial Data and Key Metrics Changes - The company expects organic net sales growth in the second half of the fiscal year, with positive momentum observed in December [11][12] - Operating profit and margin performance in the first half of the year has been good, with favorable tariff timing and chicken inflation, although there are offsets with beef and pork [21][22] - The company maintains its inflation guidance of 7% for the year, with core inflation above 4% and gross tariff inflation around 3% [42][44] Business Line Data and Key Metrics Changes - The frozen and snacks segments are identified as growth domains, with snacks already showing robust growth and frozen aiming to reclaim market share lost due to previous supply constraints [31][32] - The company is focusing on high-quality promotional activities in the frozen segment, which were limited last year due to supply issues [32][33] Market Data and Key Metrics Changes - The company has seen a return to growth in the frozen and snacks categories, with strong marketing plans in place for the second half of the year [31][33] - The market share in frozen single-serve meals is approaching 53%, indicating a recovery in that segment [32] Company Strategy and Development Direction - The company is implementing Project Catalyst, which focuses on re-engineering core business processes using technology, particularly AI, to improve efficiency and effectiveness [25][26] - The company is committed to margin expansion, particularly in the frozen segment, through productivity improvements and supply chain resiliency investments [52][53] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in the operating environment and has guided a wider range for EPS to navigate uncertainties [23][83] - The company is optimistic about the second half of the fiscal year, expecting strong underlying trends and promotional activities to drive growth [85] Other Important Information - The company has completed the baked chicken facility, which is expected to enhance production efficiency and margins [100][101] - An impairment charge was taken due to a sustained decline in stock price, which required a reassessment of goodwill and brand values [102][104] Q&A Session Summary Question: Expectations for organic sales growth in fiscal Q3 - Management expects positive organic net sales growth in the second half, with momentum building in December [11][12] Question: Clarification on annual outlook and EPS impact from Ardent - Management believes they can offset the shortfall from Ardent and maintain EPS guidance despite a wider range due to market volatility [22][23] Question: Insights on Project Catalyst and cost savings - Project Catalyst aims to automate core business processes, with expected costs and returns being evaluated as the project progresses [25][26] Question: Consumption trends and growth outlook for fiscal 2027 - Management sees potential for growth in frozen and snacks, with strong marketing plans and market share recovery [31][33] Question: Impact of competitors' price cuts on the company - The company has not rolled back prices to move volume but has maintained pricing to support promotional activities [40][41] Question: Inflation guidance and its implications - The company maintains its inflation guidance of 7% for the year, with expectations for inflation to normalize in the future [42][44] Question: Repatriation of production and margin improvement - The transition to in-house production is underway, with expectations incorporated into the fiscal guidance [100][101] Question: Details on impairment charge - The impairment charge was due to a decline in stock price, necessitating a reassessment of goodwill and brand values [102][104]