Financial Data and Key Metrics Changes - In 2025, the company experienced a significant year-over-year decline in both top-line and bottom-line results, with organic net sales pressured by market share losses, particularly in the U.S. retail sector [4][5] - Adjusted EPS for 2025 was $2.60, reflecting a 15% decline compared to 2024, driven by lower operational results and a higher effective tax rate [5][27] - Free Cash Flow improved nearly 16% year-over-year, totaling $3.7 billion, with a Free Cash Flow conversion rate of 119% [5][28] Business Line Data and Key Metrics Changes - Organic net sales in North America Retail declined by 5.2%, primarily due to share loss in Lunchables, Spoonables, and frozen meals and snacks [5][6] - Global Away From Home organic net sales decreased by 1.5%, impacted by lower traffic trends in the U.S., although international markets showed growth [6] - Emerging Markets saw organic net sales increase by 4.6%, driven by double-digit growth in LATAM and East regions, despite a decline in Indonesia [6][7] Market Data and Key Metrics Changes - North America organic net sales fell by 5.4%, with significant declines in cold cuts and away-from-home categories [24] - International Developed Markets experienced a 2.4% decline, mainly due to industry softness in the U.K. [25] - Emerging Markets organic net sales rose by 2.2%, with strong growth outside of Indonesia [25] Company Strategy and Development Direction - The company aims to return to organic, profitable growth by contemporizing brands, differentiating products, and improving commercial execution [3][8] - A significant investment of approximately $600 million is planned for 2026 to support these strategic initiatives [8][9] - The company is pausing its separation plans to focus on improving operational performance and market share [10][11] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a challenging operating environment with worsening consumer sentiment and industry trends [9][10] - There is an expectation for sequential improvement in top-line results, particularly in the second half of 2026, as investments begin to yield returns [32][33] - The company plans to monitor the efficiency of its investments and adapt allocations as necessary to ensure high returns [30] Other Important Information - The company generated gross efficiencies of approximately $690 million in 2025, reflecting discipline in operations [27] - The adjusted operating income margin decreased by 280 basis points, with a notable decline in North America [26] - The company returned about $2.3 billion in capital to shareholders in 2025, with $1.9 billion through dividends and approximately $400 million through share repurchases [29] Q&A Session Summary - The Q&A session included discussions on the company's strategies for addressing market share losses and improving brand performance, with management emphasizing the importance of aligning products with consumer preferences and enhancing marketing efforts [2][3]