PepsiCo (NasdaqGS:PEP) Update / Briefing December 09, 2025 07:30 AM ET Company ParticipantsAndrea Teixeira - Executive DirectorRavi Pamnani - Senior VP of Investor RelationsRamon Laguarta - CEOSteve Schmitt - EVP and CFOConference Call ParticipantsPeter Grom - Equity Research AnalystDara Mohsenian - AnalystSteve Powers - AnalystBonnie Herzog - AnalystLauren Lieberman - Equity Research AnalystMichael Lavery - AnalystFilippo Falorni - Equity Research AnalystOperatorGood morning and welcome to PepsiCo's Invest ...

Financial Data and Key Metrics Changes - In Q4, the company achieved organic net sales growth of 2.5%, aligning with expectations despite external pressures [7][22] - Adjusted gross margin rate decreased by 330 basis points, primarily due to unexpected year-end inventory adjustments and increased trade promotions [27][28] - Adjusted operating income was $40.3 million, representing 7.5% of net sales, down from 10.8% in the previous year [28] Business Line Data and Key Metrics Changes - International organic net sales grew by 6.9%, driven by volume and price gains across all segments [22] - North America experienced a decline in organic net sales by 60 basis points, with wet shave sales down approximately 1% [23] - Sun and skin care organic net sales increased by approximately 11%, with robust growth across each business segment [24] Market Data and Key Metrics Changes - International markets, representing about 40% of global sales, delivered strong growth for the fourth consecutive year, with Europe achieving its third straight year of growth [8][9] - The U.S. razor and blades category saw consumption down by 80 basis points, although market share improved sequentially [23] - The Billie brand achieved a 90 basis point share growth, now holding a 15% share at Walmart and 13% at Target [24] Company Strategy and Development Direction - The company plans to divest its feminine care business to focus on core categories with competitive advantages, including shave, sun, and skincare [6][19] - A multi-year innovation roadmap is being implemented, with significant investments in brand building and marketing to restore brand equity [11][14] - The transformation plan aims to simplify the U.S. structure, enabling faster decision-making and increased investment in growth capabilities [12][15] Management's Comments on Operating Environment and Future Outlook - The management acknowledged a challenging fiscal 2025 due to external pressures like tariffs and geopolitical tensions, but expressed confidence in the foundation for future growth [8][19] - For fiscal 2026, the company anticipates a return to organic net sales growth, driven by mid-single-digit growth in international markets and stabilization in North America [16][33] - The macro environment is expected to remain challenging, with muted category growth and cautious consumer spending [15][16] Other Important Information - The company generated productivity savings of 270 basis points in fiscal 2025, with expectations of approximately 310 basis points in fiscal 2026 [10][30] - Adjusted EBITDA for fiscal 2026 is projected to be in the range of $290 million to $310 million, approximately flat to the prior year [37] - The divestiture of the feminine care business is expected to impact adjusted EPS by approximately $0.40 to $0.50 annually [32] Q&A Session Summary Question: Outlook and EPS Expectations - The company expects a balanced and achievable plan for 2026, with low single-digit category growth assumptions and flexibility to maintain profit goals [41][43] Question: Strategy and M&A Intentions - The focus is on winning in shave, grooming, sun, and skin categories, with potential for M&A as asset values decline [51][53] Question: Productivity and Gross Margin Concerns - The company is confident in its second-half-oriented plan, expecting higher sales growth and productivity improvements to offset margin pressures [63][64] Question: Sun and Skin Category Insights - The company plans conservatively for the sun season, expecting low single-digit growth while focusing on brand campaigns and distribution gains [81][84]

Utz Brands, Inc. Third Quarter 2025 Earnings Presentation October 30, 2025 Disclaimer Forward-LookingStatements Certain statements made herein are not historical facts but are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements generally are accompanied by or include, without limitation, statements such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," " ...

Edgewell Personal Care Company (EPC) FY Conference Summary Company Overview - **Company**: Edgewell Personal Care Company (EPC) - **Date of Conference**: August 12, 2025 - **Key Speakers**: Dan Sullivan (COO), Fran Wiseman (CFO) Key Points Transformation and Business Strengths - **Transformation Status**: Company is in a transformation phase amidst challenges such as COVID, inflation, and tariffs [4][8] - **International Business**: Accounts for approximately 40% of revenue, with a 6-7% CAGR over the last four years, projected to grow by 45% this year [5] - **Innovation**: Significant improvements in innovation structure, with successful launches in international markets, including Hawaiian Tropic in Mexico and Bulldog in the UK [6][7] - **Productivity Savings**: Historical savings of 250-300 basis points annually, with expectations to continue this trend [8] - **Cash Flow**: Average free cash flow projected between $150 million to $180 million [8] Areas for Improvement - **U.S. Market Focus**: The company is working on enhancing its U.S. operations, including hiring a new President of North America and reorganizing the commercial business [9] - **Top-Line Growth**: Long-term growth target remains at 2-3%, with international markets expected to outperform the U.S. [12][14] Recent Performance and Market Conditions - **Q3 Challenges**: The sun care segment faced difficulties due to poor weather, impacting nearly a third of the business [17][18] - **Market Share Gains**: Despite challenges, 80% of international business held or gained market share, with notable performance from brands like Hawaiian Tropic and HydroSilk [19][21] - **Q4 Outlook**: Anticipated organic growth of approximately 22.5%, with international growth expected to be around 8% [22] Consumer Health and Competitive Landscape - **Consumer Sentiment**: No signs of consumer hesitancy or trade-down to private labels observed, with categories growing at 3-4% [24][25] - **Competitive Environment**: The U.S. market remains competitive, particularly in women's grooming, but the company is well-positioned with its diverse portfolio [56][59] Financial Metrics and Projections - **Gross Margin**: Historically strong, with a slight decline in 2025 due to tariffs and currency impacts, but expected to recover [27][29] - **Tariff Impact**: Estimated annual exposure to tariffs is between $40 million to $50 million, representing 3-4% of COGS [31] - **Free Cash Flow**: Expected to deliver around $80 million in 2025, down from historical levels due to various headwinds [38][39] Strategic Focus and Future Outlook - **Capital Allocation**: Focus on debt paydown and share repurchases, with a goal to reduce debt leverage to around three times [41][42] - **Brand Performance**: Hawaiian Tropic is performing well, while Banana Boat is stable but affected by weather conditions [43][44] - **Grooming Segment Growth**: The grooming portfolio has grown to represent about 10% of total business, with brands like Bulldog and Cremo showing strong performance [61] Conclusion - **Future Prospects**: The company is optimistic about its transformation efforts, strong cash flow, and the potential for growth in both international markets and the U.S. [64][65]

Financial Data and Key Metrics Changes - Organic net sales decreased by 1.5% in Q2 2025, with international markets growing by 3% while North America declined by 4% [22][36] - Adjusted gross margin rate increased by 100 basis points, with productivity savings of approximately 380 basis points [37][30] - Adjusted earnings per share were $0.87, slightly down from $0.88 in the prior year quarter [38] Business Line Data and Key Metrics Changes - Wet Shave organic net sales were down about 1%, while international Wet Shave grew by 3% [24] - Grooming organic net sales increased by 9%, led by a 20% growth for the Cremo brand [28] - Fem Care organic net sales decreased by approximately 9%, primarily driven by declines in tampons and pads [29] Market Data and Key Metrics Changes - Consumption in the U.S. Sun Care category decreased by 1% in the quarter, with total market share down by 60 basis points [27] - Double-digit organic growth was observed in Greater China, with mid-single-digit growth in Japan and Europe [22] - The U.S. razors and blades category saw a consumption decline of 30 basis points, with market share decreasing by 90 basis points [25] Company Strategy and Development Direction - The company is focused on restoring momentum in North America, with significant investments in sun care and women's shave categories [12][33] - A new campaign for Hawaiian Tropic is set to be the largest investment in the U.S. in five years, targeting Gen Z consumers [34] - The company aims to leverage recent successes in international markets to replicate growth in North America [13] Management's Comments on Operating Environment and Future Outlook - Management noted increasing pressure on consumers and a decline in consumer confidence, impacting spending behaviors [17][14] - The outlook for the second half of the fiscal year anticipates a modest growth profile, with organic net sales growth expected to be flat to 1% [41] - Management expressed confidence in sequential improvement in North America, driven by new leadership and strategic initiatives [14][75] Other Important Information - The estimated impact of tariffs on cost of goods sold for fiscal 2025 is approximately $3 million to $4 million [43] - The company plans to continue exploring opportunities to mitigate tariff impacts through productivity and potential price increases [92][93] - Free cash flow for the full year is now expected to be in the range of $130 million to $140 million, reflecting lower earnings and higher inventory levels [45] Q&A Session Summary Question: Can you provide more details on the tariff impact? - The estimated in-year impact of tariffs is $3 million to $4 million, primarily affecting the fourth quarter, with a broader annualized exposure of 3% to 4% of COGS [50][52] Question: What is the confidence level for second half organic sales growth? - The company expects a 2% organic growth in the second half, driven by international growth, Sun Care category growth, and a more thoughtful approach to fem care [62][64] Question: How does the company view the North American execution? - Management clarified that while sales did not meet expectations, they are confident in execution and are investing in key programs for improvement [76][78]

Financial Data and Key Metrics Changes - Net sales decreased by 6% to $3.7 billion, driven by lower organic sales, one fewer selling day, and commodity deflation, partially offset by growth from acquisitions [19] - Gross profit was $1.1 billion, a decrease of 14% compared to the prior year, with gross margins at 30.5%, down 290 basis points [20][21] - Adjusted EBITDA was $369 million, down 32%, with an adjusted EBITDA margin of 10.1%, down 380 basis points from the prior year [22] - Adjusted EPS was $1.51, a decrease of 43% compared to the prior year [23] Business Line Data and Key Metrics Changes - Multifamily sales decreased by 33%, while single-family sales declined by 6% due to lower starts activity and weather impacts [19] - Repair and remodel increased by 4%, driven by strength in the Mid Atlantic and Southeast regions [19] - Productivity savings of $17 million were achieved in Q1, primarily through targeted supply chain initiatives and more efficient manufacturing [8] Market Data and Key Metrics Changes - Single-family starts remain soft as builders manage construction pace amid affordability challenges and inventory buildup [8] - The multifamily segment continues to face headwinds compared to 2024, with actions taken to align capacity and manage expenses [9] - The company anticipates a down mid-single-digit single-family market and continued weakness in multifamily for the full year 2025 [26] Company Strategy and Development Direction - The company remains focused on organic growth, operational excellence, and disciplined capital allocation [5] - Significant investments in value-added products, digital tools, and internal systems are aimed at solidifying the company's industry position [6] - The company completed two acquisitions in Q1, with a focus on expanding value-added product offerings and leadership in desirable geographies [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges due to a resilient business model and a focus on execution [4] - The company expects to outperform as the market recovers, despite current macro and industry dynamics being unsettled [5] - For 2025, the company forecasts net sales between $16.05 billion and $17.05 billion, with adjusted EBITDA expected to be between $1.7 billion and $2.1 billion [26] Other Important Information - The company invested $23 million in value-added facilities in Q1 to prepare for future demand [7] - The company has a disciplined capital allocation strategy, deploying over $900 million towards investments, acquisitions, and share repurchases [12][25] - The company expects free cash flow of $800 million to $1.2 billion for 2025, with a focus on maintaining a leverage ratio of approximately 1x to 2x [27][25] Q&A Session Summary Question: Market share and growth in a declining market - Management stated that they are always striving to increase market share, adapting to competitive dynamics and affordability challenges [34][36] Question: Gross margin strategy - Management indicated that while margins are expected to drift lower, they will balance share versus margin based on competitive pressures [39][41] Question: Capital allocation and buybacks - Management confirmed that capital allocation priorities remain focused on protecting the balance sheet while evaluating M&A and stock buybacks [52][53] Question: Commodity prices and inflation expectations - Management discussed the impact of higher lumber prices and the expectation to pass through tariff costs to customers [58][110] Question: Digital initiatives and sales targets - Management expressed confidence in reaching the $200 million target for digital sales in 2025, citing positive customer feedback and adoption rates [66] Question: Competition and sustainability - Management noted that some competitors are struggling with sustainability, emphasizing the importance of providing stable partnerships and quality products [70][75] Question: Productivity savings and future actions - Management highlighted that productivity improvements are a continuous effort, with expectations for savings to roll in throughout the year [78][82]