Financial Data and Key Metrics Changes - The first quarter net sales were $368 million, with an adjusted EBITDA of $20 million, consistent with expectations [20][21] - Organic net sales declined by 6% year-over-year, showing sequential improvement from an 11% decline in Q4 [22] - Adjusted gross margin was 19.5%, a decrease of approximately 120 basis points year-over-year, driven by lower volume mix and cost inflation [22] - SG&A expenses decreased by 8% year-over-year to $66 million, representing 17.8% of net sales [22][23] - Adjusted net loss was $7 million, or $0.08 per diluted share, compared to an adjusted net loss of $4 million or $0.04 per diluted share in the prior year [24] Business Line Data and Key Metrics Changes - In North America, organic net sales declined by 7%, primarily due to lower volume in snacks, but growth was seen in beverages, baby and kids, and meal prep [25] - Adjusted EBITDA in North America increased by 37% to $17 million, with an adjusted EBITDA margin of 8.3% [25] - International organic net sales declined by 4%, driven by lower sales in baby and kids, partially offset by growth in meal prep [26] - International adjusted gross margin was 15.7%, approximately 530 basis points below the prior year, with adjusted EBITDA of $13 million [26] Market Data and Key Metrics Changes - Organic net sales growth in snacks was down 17% year-over-year, while baby and kids saw a decline of 10% [27] - Beverages category experienced a 2% growth year-over-year, driven by tea in North America [28] - Meal preparation organic net sales growth was flat year-over-year, with strength in yogurt offset by softness in meat-free products [28] Company Strategy and Development Direction - The company is focused on stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet [5][19] - A turnaround strategy is anchored in five key actions: streamlining the portfolio, accelerating brand renovation and innovation, implementing strategic revenue growth management and pricing, driving productivity and working capital efficiency, and strengthening digital capabilities [8][34] - The company plans to eliminate approximately 30% of its SKUs in North America by fiscal 2027 to improve supply chain efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, expecting stronger top and bottom-line performance compared to the first half [31] - The company is stepping up marketing investments and anticipates benefits from SG&A work and pricing actions to build throughout the year [32] - Management acknowledged challenges in the consumer environment but emphasized the value proposition of their health and wellness products [41][42] Other Important Information - Free cash flow for the quarter was an outflow of $14 million, an improvement from an outflow of $17 million in the prior year [29] - The company closed the quarter with cash on hand of $48 million and net debt of $668 million, an increase driven by seasonal funding of working capital [30] Q&A Session Summary Question: Anticipation of organic sales in Q2 - Management expects some moderation in the year-over-year rate of decline in organic sales in Q2, with a focus on improvement in the second half [37] Question: Elasticity of pricing actions in North America - Early data indicates that pricing on tea is in line with expectations, while baby category pricing has been slower to roll out [39] Question: Consumer behavior in the current environment - Management noted a shift towards value-seeking behavior among consumers, with a focus on delivering value through better-for-you products [41][42]

Financial Data and Key Metrics Changes - Third quarter net revenues were $931 million, an increase of more than 2% from $910 million in the year-ago period [16] - Adjusted EBITDA was $168 million compared to $171 million in the year-ago period, reflecting improved results in all operating segments [17] - Adjusted EPS was $0.42 versus $0.41 in the year-ago period, reflecting lower interest costs and tax initiatives [17] Business Line Data and Key Metrics Changes - Retail revenue of $864 million increased 1% compared to the third quarter of 2023, with retail volume growing 1% excluding foam products [16] - Reynolds Wrap retail sales were up 7%, with volumes outperforming the category [9] - Hefty brand, a nearly $2 billion brand, continues to lead in the scented waste bag segment, driving growth in the waste bag category [11][12] Market Data and Key Metrics Changes - The operating environment remains challenging, with low and middle-income consumers under pressure and retailers facing cost inflation [8] - The company noted that inflation remains above the Fed's target, impacting consumer sentiment negatively [34] Company Strategy and Development Direction - The company is focusing on innovation and revenue growth management to drive share gains and profitability [39] - New leadership, including a Chief Commercial Officer and Chief Operations Officer, is expected to enhance operational capabilities and drive growth [14][39] - The company is investing in high-return projects to support growth and improve margins [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the promotional environment and addressing consumer pressures [31][34] - The company anticipates a flat to down 1% revenue outlook for the full year compared to 2024, with adjusted EBITDA guidance of $655 million to $665 million [19] - Management highlighted the importance of maintaining cost discipline and leveraging U.S.-centric manufacturing advantages [8][19] Other Important Information - The company is making progress in managing manufacturing, supply chain, and SG&A costs while driving market share [7] - New product innovations, such as Reynolds Kitchens Air Fryer Liners, have been recognized for their growth potential [10] Q&A Session Summary Question: How do you see the setup for the important holiday season in terms of promotional intensity and consumer behavior? - Management noted increased promotional activity in waste and food bags but feels confident in navigating the environment, with Hefty Waste Bags outperforming the category [31][32][34] Question: Why did you flag the risk of retailers shifting store brands to other suppliers? - Management indicated that economic challenges and tariff uncertainties could lead retailers to seek value through private label business, but they expect to win more than they lose as a U.S.-centric manufacturer [35] Question: Can you discuss the long-term strategy related to operational capabilities and growth? - Management emphasized the focus on innovation, revenue growth management, and driving additional share at the customer level as key components of their strategy [39][40] Question: What is the outlook for the tableware business and foam headwinds? - Management stated that foam headwinds are expected to lessen next year, and they are pleased with how profitability is being managed despite volume declines [45] Question: Can you comment on the promotional impact in the Hefty Waste and Storage segment? - Management acknowledged increased promotional intensity but highlighted that their promotional activity aligns with overall company levels, contributing to strong performance [48] Question: What is the current state of consumer behavior and its impact on Reynolds Cooking and Baking? - Management noted modest tailwinds from increased cooking at home but also acknowledged the impact of rising prices in the marketplace [66]

Financial Data and Key Metrics Changes - Third quarter net revenues were $931 million, an increase of more than 2% from $910 million in the year-ago period [16] - Adjusted EPS was $0.42 compared to $0.41 in the year-ago period, reflecting lower interest costs and tax initiatives [17] - Consolidated adjusted EBITDA was $168 million compared to $171 million in the year-ago period [17] Business Line Data and Key Metrics Changes - Retail revenue of $864 million increased 1% compared to the third quarter of 2023, with retail volume growing 1% excluding foam products [16] - Reynolds Wrap retail sales were up 7%, with volumes outperforming the category [9] - Hefty Waste Bags saw retail takeaways increase by 9%, outperforming the category by 10 points [31] Market Data and Key Metrics Changes - The operating environment remains challenging, particularly for low and middle-income consumers facing cost inflation [8] - The company noted that inflation remains around 3%, above the Fed's target of 2% [33] - Consumer sentiment has declined, with double-digit decreases year to date heading into the holidays [33] Company Strategy and Development Direction - The company is focusing on innovation and revenue growth management to drive share gains and profitability [39] - A new Chief Commercial Officer is leading growth programs to enhance market share across major customers [9] - The company is investing in high-return projects to support growth and drive margin improvements [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in retail trends and the effectiveness of implemented programs to drive near and long-term results [19] - The company anticipates net revenues to be flat to down 1% for the full year compared to 2024 [19] - Management highlighted the importance of maintaining cost discipline in all areas, including SG&A [19] Other Important Information - The company is making progress in managing manufacturing, supply chain, and SG&A costs while driving market share [7] - New product innovations, such as Reynolds Kitchens Air Fryer liners, have been recognized for their growth potential [10] - The company is positioned well within its target leverage range of 2x-2.5x EBITDA, allowing for continued investment in growth opportunities [21] Q&A Session Summary Question: How do you see the setup for the important holiday season in terms of promotional intensity and consumer behavior? - Management noted increased promotional activity in waste and food bags but feels confident in navigating the promotional environment [31][32] - Consumer sentiment remains under pressure, with inflation and cooling labor markets impacting lower-income demographics [33][34] Question: Can you elaborate on the risk of retailers shifting store brands to other suppliers? - Management flagged this risk due to economic challenges and uncertainty in supply chains, but expects to win more than lose as a US-centric manufacturer [34] Question: What is the grand plan related to operational capabilities and long-term growth? - The company is focused on driving growth through innovation, revenue growth management, and share gains at the customer level [39] Question: What is the outlook for the tableware business and foam products? - The tableware business is down primarily due to foam headwinds, but profitability has increased despite volume declines [42][43] Question: How is the Hefty Waste and Storage segment performing in terms of profitability and distribution? - The segment continues to perform well, with significant volume growth and effective management of promotional activities [46][47] Question: What is the current state of consumer behavior regarding dining out versus cooking at home? - There are modest tailwinds from increased cooking at home, but rising prices in the marketplace are also a factor [64]

Financial Data and Key Metrics Changes - Third quarter net revenues were $931 million, an increase of more than 2% from $910 million in the year-ago period [15] - Adjusted EBITDA was $168 million compared to $171 million in the year-ago period, reflecting improved results in all operating segments [16] - Adjusted EPS was $0.42 versus $0.41 in the year-ago period, reflecting lower interest costs and tax initiatives [16] Business Line Data and Key Metrics Changes - Retail revenue of $864 million increased 1% compared to the third quarter of 2023, with retail volume growing 1% excluding foam products [15] - Hefty Waste Bags and Reynolds Wrap aluminum foil were highlighted as strong performers, with Hefty Waste Bags year-to-date retail takeaways up 9% [26][10] - The tableware business grew EBITDA despite sales volumes being down 13%, demonstrating increasing success in driving profitability [16][39] Market Data and Key Metrics Changes - The operating environment remains challenging, particularly for low and middle-income consumers facing cost inflation [6][28] - The company noted a shift in consumer behavior, with more affluent consumers tending to be brand loyalists while lower-income demographics are more value-oriented [28][45] Company Strategy and Development Direction - The company is focusing on innovation, revenue growth management, and driving additional share at the customer level [33] - New leadership, including a Chief Commercial Officer and Chief Operations Officer, is expected to enhance growth programs and operational efficiency [8][12] - The company is investing in high-return projects to support growth and drive margin improvements [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the continued pressure on consumers and the potential for increased promotional activity in certain categories [28][26] - The company remains confident in its ability to navigate the promotional environment and expects to leverage its U.S.-centric manufacturing footprint as a competitive advantage [6][29] - For the full year, the company expects net revenues to be flat to down 1% compared to 2024, with adjusted EBITDA guidance of $655 million to $665 million [18] Other Important Information - The company is making progress in managing manufacturing, supply chain, and SG&A costs while driving market share [5][12] - The company has implemented pricing actions to recover commodity and tariff impacts, with gross profit showing sequential improvement [16][17] Q&A Session Summary Question: How do you see the setup for the holiday season in terms of promotional intensity and consumer behavior? - Management noted increased promotional activity in waste bags and food bags but feels confident in navigating the promotional environment, with retail takeaways for Hefty Waste Bags up 9% year-to-date [26][28] Question: Why did you flag the risk of retailers shifting store brands to other suppliers? - Management indicated that in a challenging economic climate, retailers may seek to drive value for consumers by shifting to private label business, but expects to win more than lose as a U.S.-centric manufacturer [29] Question: Can you discuss the impact of operational changes on long-term growth? - Management highlighted the addition of key executives aimed at driving growth through innovation and revenue growth management tools, with a focus on optimizing promotional spending [33][60] Question: What is the outlook for the tableware business and foam products? - Management stated that 80% of the decline in tableware was due to foam headwinds, but they are managing profitability effectively despite volume declines [39] Question: How is the Hefty Waste and Storage segment performing in the current environment? - Management noted that innovation and being a performance brand are driving success in the Hefty Waste and Storage segment, with significant volume growth [58]

Core Insights - The company reported better than expected earnings for both revenue and adjusted earnings, leading to a stock price increase of approximately 2.7% in pre-market trading [2] Financial Performance - There was a slight miss on revenue, but adjusted earnings exceeded expectations, contributing to positive market momentum [2] - Global unit volume grew by about 1% in the third quarter, significantly lower than the 4% growth seen in the same quarter of 2022 [6] - North America volume remained flat, contrasting with previous years when home consumption drove growth [5] Consumer Trends - Growth was noted in Coca-Cola Zero Sugar, which saw a 14% increase, indicating a shift in consumer preferences towards lower sugar options [7][22] - The company is focusing on higher-income consumers who are more resilient to price increases, while also adapting strategies to retain lower-income consumers [12][13] Strategic Initiatives - The company plans to continue offering diverse packaging options to cater to different price points and consumer needs [14][15] - There is an ongoing strategy to reintroduce real cane sugar in select markets, with plans for broader rollout in the coming months [17] Market Dynamics - The company is aware of external factors such as inflation, trade dynamics, and geopolitical issues affecting consumer demand [7] - The company is committed to innovation and adapting to consumer trends, including a focus on lower-calorie and lower-sugar products [21][22] Future Outlook - The company is making significant investments in its Fairlife dairy brand, with plans for the largest investment in a single production facility to meet growing demand [24][25]

Summary of Coca-Cola HBC's Q3 2025 Earnings Call Company Overview - **Company**: Coca-Cola HBC (OTCPK:CCHG.Y) - **Event**: Q3 2025 Earnings Call - **Date**: October 21, 2025 - **Key Acquisition**: Coca-Cola Beverages Africa (CCBA) Key Points Acquisition of CCBA - Coca-Cola HBC announced the acquisition of a 75% majority stake in CCBA for $2.6 billion, with a path to full ownership [5][12][31] - This acquisition positions Coca-Cola HBC as the second-largest Coca-Cola bottling partner globally by volume, covering 43 markets in Africa and Europe [6][12] - The strategic rationale focuses on growth opportunities in Africa, which has attractive demographics and potential for increased per capita consumption [6][13][20] Financial Performance - Q3 2025 revenues grew by 5% organically, leading to an 8.1% organic revenue growth for the first nine months of 2025 [9] - Volume growth was reported at 1.1%, with sparkling volumes up 0.7% and energy drink volumes up 34.3% [9] - Organic revenue per case increased by 3.8%, driven by price and mix [9] Market Dynamics - CCBA accounts for approximately 40% of all Coca-Cola beverages sold in Africa by volume, with a strong portfolio of over 40 global and local brands [16][17] - The acquisition is expected to enhance Coca-Cola HBC's presence in Africa, serving over 800 million consumers and covering two-thirds of Africa's total Coca-Cola system volumes [19][20] Growth Strategy - Coca-Cola HBC aims to leverage its experience in emerging markets to drive growth in CCBA's markets, focusing on operational efficiencies and revenue growth management [26][40] - The company plans to invest in local talent and community initiatives, emphasizing sustainability and local production [29][30] Financial Projections - The acquisition is expected to be low single-digit EPS accretive in the first full year following completion, with a clear prospect for long-term shareholder value creation [15][32] - Post-acquisition, leverage is expected to be at the top end of the medium-term target range of 1.2 to 2 times net debt to EBITDA [32] Challenges and Risks - Emerging markets present certain risks, including currency volatility and geopolitical factors, but Coca-Cola HBC believes the opportunities outweigh these challenges [58][60] - The company has a robust planning and contingency framework to navigate potential risks in these markets [60] Future Outlook - Coca-Cola HBC is committed to a secondary listing on the Johannesburg Stock Exchange post-acquisition, reinforcing its commitment to the African market [12][30] - The company is optimistic about the growth trajectory in Africa, with forecasts suggesting a 2% annual population growth and a 4% increase in GDP per capita through 2050 [20] Additional Insights - The integration of CCBA will focus on sharing best practices and leveraging Coca-Cola HBC's bespoke capabilities to drive growth [25][26] - The company is prepared to invest upfront to accelerate growth and improve profitability in the acquired markets [49][52] This summary encapsulates the key points discussed during the earnings call, highlighting the strategic acquisition, financial performance, growth opportunities, and future outlook for Coca-Cola HBC.

Financial Data and Key Metrics Changes - The company reported an organic net sales decline of 11% year-over-year for Q4, driven by lower sales in both North America and international segments [24] - Adjusted gross margin decreased to 20.5%, down approximately 290 basis points year-over-year, due to lower volume mix, cost inflation, and higher trade spend [24] - Adjusted net loss was $2 million, or $0.02 per diluted share, compared to adjusted net income of $11 million, or $0.13 per diluted share in the prior year [26] - Adjusted EBITDA was $20 million, down from $40 million a year ago, with an adjusted EBITDA margin of 5.5% [26] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 14% year-over-year, primarily due to lower sales in snacks and meal preparation products [27] - International organic net sales declined 6%, driven by lower sales in meal prep and beverages [28] - Snacks category saw organic net sales growth down 19% year-over-year, attributed to velocity challenges and distribution losses [28] - The beverages category experienced a 3% decline in organic net sales, impacted by softness in tea in North America [29] Market Data and Key Metrics Changes - The company gained market share in the UK despite challenges in the international segment, particularly in wet baby food and soup categories [5] - E-commerce grew 10% in North America, with significant growth in the UK soup category, which is the fastest growing online category [20] Company Strategy and Development Direction - The company is focused on optimizing cash, deleveraging the balance sheet, stabilizing sales, and improving profitability through a turnaround strategy [21] - Key actions include streamlining the portfolio, accelerating brand renovation and innovation, and enhancing digital capabilities [21] - The company is exiting unprofitable or low-margin SKUs and businesses where it is structurally disadvantaged, such as the meat-free category in North America [12] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q4 performance, citing challenges in both North America and international segments [4] - The company is committed to decisive actions to improve its trajectory and financial health, with a focus on reducing complexity in operations [10] - Management anticipates stronger top and bottom line performance in the second half of fiscal 2026 compared to the first half, driven by aggressive cost-cutting and execution of strategic initiatives [33] Other Important Information - The company has taken restructuring charges totaling $88 million to date, with an expected increase in restructuring charges to $100 million-$110 million by fiscal 2027 [25] - Free cash flow in Q4 was an outflow of $9 million, compared to an inflow of $31 million in the prior year [30] - The company closed the quarter with cash on hand of $54 million and net debt of $650 million, having reduced net debt by $14 million in the quarter [31] Q&A Session Summary Question: How does the company manage reinvestment in the context of a strained balance sheet? - Management emphasized the need for financial flexibility and tough decisions to focus investments on high-return areas to drive growth [36][37] Question: What are the differences between the current strategy and the previous Hain Reimagined program? - Management noted that the current focus is on actionable decisions and local empowerment, with a robust innovation pipeline and pricing strategies in place [44][46] Question: What is the expected timeline for restructuring and CEO search? - Management indicated that restructuring changes would be effective between October 1st and November 1st, and the CEO search is ongoing in parallel with the strategic review [75][76]

Financial Data and Key Metrics Changes - The company reported an organic net sales decline of 11% year over year for Q4 2025, driven by lower sales in both North America and international segments [24] - Adjusted gross margin decreased to 20.5%, a decline of approximately 290 basis points year over year, attributed to lower volume mix, cost inflation, and higher trade spend [24] - Adjusted net loss was $2 million, or $0.02 per diluted share, compared to adjusted net income of $11 million, or $0.13 per diluted share in the prior year [26] - Adjusted EBITDA was $20 million, down from $40 million a year ago, with an adjusted EBITDA margin of 5.5% [26] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 14% year over year, primarily due to lower sales in snacks and meal preparation products [27] - Adjusted gross margin in North America was 19.2%, a decrease of 340 basis points, with adjusted EBITDA of $10 million compared to $21 million in the prior year [27] - International organic net sales declined 6%, with adjusted gross margin at 22.1%, approximately 270 basis points below the prior year [28] Market Data and Key Metrics Changes - The snacks category saw organic net sales growth down 19% year over year, driven by velocity challenges and distribution losses [28] - The beverages category experienced a 3% decline in organic net sales, impacted by softness in tea in North America [29] - The meal prep category's organic net sales growth was down 8%, primarily due to softness in oils and nut butters in North America [29] Company Strategy and Development Direction - The company is focused on optimizing cash, deleveraging the balance sheet, stabilizing sales, and improving profitability through a turnaround strategy [21] - Key actions include streamlining the portfolio, accelerating brand renovation and innovation, and enhancing digital capabilities [21] - The company is exiting unprofitable or low-margin SKUs to focus on brands with the highest growth potential [11] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q4 performance, citing challenges in both North America and international segments [4] - The company is committed to decisive actions to improve financial health and streamline operations, with a focus on driving productivity and working capital efficiency [21] - Management anticipates stronger top and bottom line performance in the second half of fiscal 2026 compared to the first half [33] Other Important Information - The company has initiated a restructuring program with expected charges of $100 million to $110 million by fiscal 2027 [25] - Free cash flow in Q4 was an outflow of $9 million, compared to an inflow of $31 million in the prior year [30] - The company closed the quarter with cash on hand of $54 million and net debt of $650 million, having reduced net debt by $14 million in the quarter [31] Q&A Session Summary Question: How does the company manage reinvestment in the context of a strained balance sheet? - Management emphasized the need for tough decisions to focus investments on high-return areas, driving financial flexibility across the P&L [36][37] Question: What are the expectations for EBITDA in fiscal 2026? - Management indicated a comfortable cushion for leverage ratios, with a focus on cash generation and cost initiatives to improve performance [39] Question: What insights can be shared about the Hain Reimagined program and its shortcomings? - Management noted that previous efforts focused more on structure rather than execution, and emphasized a renewed focus on pricing and innovation [44][46] Question: What is the timeline for restructuring and CEO search? - Management confirmed that restructuring changes are currently being implemented, with most changes effective between October 1 and November 1 [75] Question: How does the company plan to address distribution losses in the snacks category? - Management acknowledged the need for continuous innovation and marketing to regain distribution and improve velocity in the snacks business [60][62]

Core Insights - Colgate-Palmolive Company has launched a productivity program aimed at achieving $300–$400 million in incremental savings by 2025, as part of its 2030 strategic plan, despite facing high raw material costs and macroeconomic uncertainty [1][2][3] Group 1: Productivity Program - The productivity program focuses on cost-saving and efficiency initiatives, including optimizing the global supply chain, leveraging AI and data analytics, and prioritizing investments in high-return areas [2][3] - Colgate aims to streamline processes, improve pricing strategies, and reduce overhead to generate savings that can be reinvested in innovation or applied to the bottom line [2][3] Group 2: Long-term Growth and Efficiency - The initiative is expected to drive long-term growth and efficiency, allowing Colgate to navigate volatile markets while sustaining organic sales momentum [3] - By combining cost discipline with strategic investments in innovation and digital capabilities, Colgate can enhance household penetration and maintain brand health [3] Group 3: Stock Performance and Valuation - Colgate's shares have declined by 6.9% over the past three months, underperforming the industry and broader Consumer Staples sector [4] - The stock currently trades at a forward P/E ratio of 21.8X, which is higher than the industry average of 20.01X and the sector average of 17.02X, indicating a premium valuation [7]

Financial Data and Key Metrics Changes - The company has experienced nine consecutive years of growth in sales, EBITDA, and EPS, but this year marks a disappointing performance [4][5][13] - The company is targeting a 1% to 3% CAGR in EBITDA over the next three years, with a focus on improving the quality of earnings and reducing exceptional items [37][39] Business Line Data and Key Metrics Changes - The company has seen stabilization in volume market share and growth in volume share in the frozen food category, despite a decline in the overall category growth due to unusual weather conditions [8][34] - The ice cream business has faced challenges, particularly in July and August, due to unrest in Serbia affecting out-of-home sales [36][64] Market Data and Key Metrics Changes - The frozen food category has shown resilience, with growth over the last ten years, although recent months have seen a decline linked to weather conditions [34][35] - The company has reaffirmed its guidance for 2025, indicating confidence in future performance despite recent challenges [65] Company Strategy and Development Direction - The company is focusing on a "Must Win Battles" strategy to concentrate on key markets where it holds significant market share [7] - A new master brand advertising campaign is being rolled out to enhance brand visibility and efficiency in media spending [18][47] - The company plans to increase its productivity program by 25%, targeting €200 million in savings over the next three years, primarily in supply chain and overheads [39][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced this year, including inflation and supply chain issues, but emphasizes the importance of learning from these experiences to strengthen future performance [6][10][13] - The company believes there are significant growth opportunities in the frozen food category, particularly in markets with lower penetration compared to the U.S. [15][16] Other Important Information - The company is committed to innovation, with plans to increase the percentage of renovated products and introduce new offerings in the ready meals category [21][23] - The foodservice segment, which accounts for around 8% of the business, is expected to grow, particularly in the Nordics and Southern Europe [29][32] Q&A Session Summary Question: Why has the company lowered its long-term growth targets? - Management indicated that the previous targets were too ambitious given the volatile environment and emphasized the need for a larger savings program to create space for reinvestment [53][55] Question: Are the targeted cost savings realistic? - Management clarified that the $200 million savings target is an increase from previous savings and is essential for maintaining competitiveness and reinvesting in product quality [60][62] Question: How does the company plan to manage pricing and market share? - Management explained that they have developed a revenue growth management tool to make more informed pricing decisions by category and country, allowing for better management of market share [71] Question: What is the outlook for capital allocation moving forward? - Management highlighted that the company has been active in share buybacks and dividends, and will continue to evaluate capital allocation based on current valuations [72]