Financial Data and Key Metrics Changes - The company reported third quarter adjusted earnings of $0.48 per share, exceeding both last year's performance and initial plans [2][10] - Segment operating profit rose by more than 60% year over year, with margins improving by 570 basis points [3][11] - Full year 2025 adjusted earnings guidance has been raised to a range of $1.55-$1.65 per share, nearly double the 2024 results [4][12] Business Line Data and Key Metrics Changes - Revenue growth was observed in non-alcoholic beverages, food, and ready-to-drink (RTD) categories, while beer and wine experienced declines due to softer consumer demand [3][9] - The fit-to-win initiative contributed $75 million in the third quarter and $220 million year to date, with expectations to surpass the original 2025 savings target [3][6] Market Data and Key Metrics Changes - Net sales remained stable at approximately $1.7 billion, with a decline in shipments by 5% due to lower performance in beer and wine [9][10] - The company anticipates a 2% decline in sales volumes for the full year, consistent with softer consumer demand [5][12] Company Strategy and Development Direction - The company is focused on eliminating waste and inefficiencies, building higher quality revenue streams, and delivering a more profitable portfolio [5][6] - The fit-to-win initiative is ahead of schedule, with significant cost reductions and network optimization to enhance competitiveness [6][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic headwinds but emphasized that the strategic initiatives are delivering results [3][4] - The company expects continued growth in adjusted earnings and free cash flow in 2026, with a stable top line and improved margins [4][15] Other Important Information - Free cash flow is projected at $150-$200 million, an improvement of approximately $300 million versus last year [13][14] - The company has successfully refinanced its bank credit agreement, improving leverage and extending maturities [13][14] Q&A Session Summary Question: How much of the recent decline is cyclical versus structural? - Management indicated that beer and wine are experiencing declines, with some aspects being cyclical while others are structural due to changing consumer preferences [20][22] Question: What is the impact of the 13% capacity cut between regions? - The Americas have seen more progress in capacity cuts compared to Europe, with 8% completed and the remaining actions expected to be finalized by early next year [27][39] Question: Can you elaborate on the volume cadence and profitability? - Management noted that about 2% of the volume decline is due to softer consumer demand, while 3% is attributed to network optimization and exiting unprofitable business [31][32] Question: What is the outlook for Brazil's market? - Management highlighted strong growth in non-alcoholic beverages and spirits in Brazil, despite declines in beer due to weather and consumer spending challenges [40][41] Question: How is the company managing pricing resets with customers? - Management expects gross pricing to be up, with a focus on improving profitability and not chasing volume for the sake of volume [61][62]