Financial Data and Key Metrics Changes - The company achieved its first quarter of profitable goals since its IPO, reporting a positive adjusted EBITDA of $3.1 million, which is $8.2 million higher than the same quarter last year [4][24][30] - Revenue grew by 7.1% year-over-year and 3.8% on a constant currency basis, with volume growth of 6.6% partially offset by a 2.8% decline in price mix [24][26] - Gross margin remained flat at 29.8% compared to the previous year, with improvements in absorption and supply chain efficiencies contributing to a 60 basis point increase [24][25] Business Line Data and Key Metrics Changes - The Europe and International segment saw a revenue increase of 12%, driven by strong volume growth of 8.4%, resulting in an EBITDA margin of 18%, which is 700 basis points higher than last year [10][26] - North America experienced a revenue decline of 10.1%, primarily due to a change in sourcing strategy at a large customer, with adjusted EBITDA declining by $4.5 million [26][30] - Greater China reported a constant currency revenue growth of 28.7%, exceeding expectations, with strong performance in both food service and retail channels [26][30] Market Data and Key Metrics Changes - The food service channel in Europe and International grew by 28% year-on-year, while retail growth accelerated from 4% to 11% in the third quarter [11][12] - In Germany, food service growth exceeded 45% for five consecutive quarters, contributing to a 70 basis point increase in retail market share for plant-based milk [12][13] - The North American food service business, excluding the largest customer, grew by 11% in the quarter, indicating positive momentum [19][21] Company Strategy and Development Direction - The company is executing a refreshed growth playbook that focuses on driving relevance, attacking barriers to conversion, and increasing availability, which has shown positive results in various markets [6][10] - The strategy includes enhancing customer menus and shelves to appeal to Gen Z consumers, with a focus on flavor and experience [11][15] - The company is committed to maintaining strong cost discipline while pursuing growth opportunities, particularly in the North American market [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve sustained profitable growth, citing the successful execution of the growth playbook and positive category momentum [4][6] - The company reaffirmed its 2025 guidance, expecting constant currency revenue growth of approximately flat to 1% and adjusted EBITDA in the range of $5 million to $15 million [8][30] - Management acknowledged ongoing challenges in North America but emphasized the potential for growth as the playbook is fully rolled out [21][22] Other Important Information - The company has made significant improvements in cash flow, with a free cash flow net cash outflow of $5 million, which is $22 million better than the previous year [27] - Recent transactions aimed at improving capital structure are expected to save approximately $5 million in annualized interest expense [28][30] - The company is focused on continuous improvement in supply chain efficiencies and SG&A costs as part of its long-term strategy [56][68] Q&A Session Summary Question: Thoughts on 2026 sales growth considering current headwinds - Management indicated that while it is early to provide specific guidance for 2026, they see solid continuity in Europe and expect gradual progress in North America as one-time headwinds are lapped [33][35] Question: Acceleration of oat milk category growth in Europe - Management attributed the acceleration to the experience and taste strategy, which is driving consumer relevance and category demand [39][40] Question: Effective ways to drive customer trial - The company highlighted its barista market developers' role in creating relevant menu offerings and generating trial through unique product experiences [44][45] Question: Plans for greater household penetration in the U.S. - Management expressed confidence in driving strong growth in the U.S. by leveraging similar consumer trends observed in Europe and focusing on taste and flavor [51][52] Question: Margin evolution in North America - Management noted that while there have been challenges, they expect underlying growth to improve margins as they lap previous headwinds [59][62] Question: Competitive environment in Europe - Management emphasized the growth potential in the oat milk category and the company's focus on value rather than competing on price [63][66]