Financial Data and Key Metrics Changes - The company achieved 3.4% organic revenue growth in Q3, with a balance of 1.8% from price and 1.6% from volume mix [3][6] - Reported revenue grew by 0.7% in Q3, impacted by a 2.3% drag from divestments and a 0.4% impact from foreign exchange [6][7] - The company is on track to deliver its full-year guidance, expecting organic revenue growth of around 3.5% for 2025 [15][16] Business Line Data and Key Metrics Changes - Oral health grew by 6.9% in Q3, driven by innovation-led premiumization and geographic expansion [7][8] - The business line for pain relief grew by 3.7%, with Panadol showing high single-digit growth [8][9] - Respiratory health declined by 1.8%, while digestive health grew by 2.1% [9][10] Market Data and Key Metrics Changes - North America delivered organic revenue growth of 0.4%, driven by a 0.7% price increase, while volume mix decreased by 0.3% [10][12] - EMEA and LATAM saw organic revenue increase of 5.3%, with price growth at 3.5% and volume mix improvement of 1.8% [12][13] - Asia-Pacific experienced organic revenue growth of 5.1%, with strong performance in India and Southeast Asia [13][14] Company Strategy and Development Direction - The company is focusing on innovation-led premiumization to drive category growth and has made significant progress in its supply chain productivity agenda [5][6] - The company aims to strengthen its innovation pipeline and improve net revenue management through strategic pricing and channel mix [11][12] - The company is closely monitoring the macroeconomic environment in Latin America and expects to adapt its strategies accordingly [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in North America next year, citing actions taken to improve inventory management and innovation pipeline [21][22] - The company anticipates continued strong growth in Q4, driven by salesforce investment and an improving macro environment [14][15] - Management noted that the consumer health market remains resilient despite macroeconomic pressures, particularly in oral health [58][59] Other Important Information - The company has completed EUR 500 million in share buybacks for 2025 [6] - The company reduced the number of SKUs by 19% since the beginning of 2024, improving gross margin and cash conversion [5][6] Q&A Session Summary Question: North America performance and future expectations - Management noted that the performance in North America was better than expected, driven by oral health and digestive health, with no significant one-offs affecting Q3 results [20][21] Question: Innovation pipeline for 2026 - The company highlighted a strong innovation pipeline across all categories, with no immediate need for RX to OTC switches impacting growth forecasts [28][29] Question: Pricing evolution in EMEA and LATAM - Management acknowledged competitive pressures leading to increased promotional activity, particularly in VMS, while maintaining resilience in oral health [47][72] Question: Category performance and consumer behavior - Management observed a bifurcated consumer environment, with some categories performing well while others struggled, emphasizing the importance of being present across all channels [41][42] Question: Inventory management and channel dynamics - Management confirmed that inventory levels are being adjusted based on consumption trends, with a focus on exiting the year in a clean position [36][66]

Financial Data and Key Metrics Changes - The company achieved 3.4% organic revenue growth in Q3, with a balance of 1.8% from price and 1.6% from volume mix [3][6] - Reported revenue grew 0.7% in Q3, impacted by a 2.3% drag from divestments and 0.4% from foreign exchange [6][7] - The company is on track to deliver its full-year guidance, expecting organic revenue growth of around 3.5% for 2025 [15][16] Business Line Data and Key Metrics Changes - Oral health grew 6.9% in Q3, driven by innovation-led premiumization and geographic expansion [7][8] - The business line for pain relief grew 3.7%, with Panadol showing high single-digit growth [8][9] - Respiratory health declined 1.8%, influenced by the previous year's elevated COVID cases [9][10] - Digestive health grew 2.1%, supported by innovations like TUMS Gummy Bites Plus [9][10] Market Data and Key Metrics Changes - North America delivered organic revenue growth of 0.4%, driven by 0.7% price increase, while volume mix decreased by 0.3% [10][12] - EMEA and LATAM saw organic revenue increase of 5.3%, with price at 3.5% and volume mix at 1.8% [12][13] - Asia-Pacific experienced organic revenue growth of 5.1%, with strong performance in India and Southeast Asia [13][14] Company Strategy and Development Direction - The company focuses on innovation-led premiumization to drive category growth and expand market reach [4][6] - Continued investment in supply chain productivity and cost discipline is emphasized to enhance flexibility and agility in P&L [5][6] - The company aims to strengthen its innovation pipeline and improve net revenue management in North America [11][22] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging consumer backdrop in North America but highlighted outperformance in oral health and digestive health [3][10] - The company expects continued strong growth in Q4, driven by salesforce investment and an improving macro environment [14][15] - Management remains confident in returning to growth in North America next year, with actions in place to address inventory levels [22][66] Other Important Information - The company completed EUR 500 million in share buybacks for 2025 [6] - Significant progress has been made in reducing SKUs by 19%, improving gross margin and working capital [5][80] Q&A Session Summary Question: North America performance and future expectations - Management explained that the sequential improvement in North America was driven by reduced drag from smokers' health and better performance in oral and digestive health [20][21] - Guidance for Q4 suggests around 1% decline, reflecting tough comparatives from the prior year [21][22] Question: Innovation pipeline and cold/flu season outlook - Management confirmed a strong innovation pipeline across categories and noted that the cold and flu season's variability impacts guidance [28][30] Question: Channel dynamics and inventory management - Management discussed the differences in inventory levels across channels, with a focus on ensuring appropriate stock levels for growth next year [35][66] Question: Consumer behavior and market performance - Management highlighted a bifurcated consumer environment, with varying performance across categories and channels [41][42] Question: Oral care business performance - Management acknowledged softer performance in certain oral care brands but remains positive about overall oral health growth [70][72]

Financial Data and Key Metrics Changes - The company reported a decline in organic sales growth in North America of nearly 2% in Q2, contrasting with growth in EMEA, LatAm, and APAC, which were within the medium-term guidance of 4% to 6% [3][5][14] - Gross margin improved by 160 basis points, contributing to strong cash flow and organic profit growth [5][15] - A&P (Advertising and Promotion) spending increased by 6.8% to 20.8% in the first half of the year, reflecting a focus on growth drivers [16][19] Business Line Data and Key Metrics Changes - In North America, consumption grew slightly ahead of the market, with a 0.5% increase compared to a market decline of 0.5% [9][10] - Oral health and digestive health brands showed strong growth, with market share gains in brands like Tons and Benefiber [9][10] - Centrum experienced mid-single-digit growth outside the US but saw declines in the US, while Emergency brand continued to perform well [11][12] Market Data and Key Metrics Changes - The US market is facing challenges with low consumer confidence and inventory pressures, impacting overall performance [6][8][14] - EMEA and APAC regions showed positive trends, with volume growth accelerating in Q2 [47][51] - Central Europe reported high single-digit growth, while Western Europe experienced mid-single-digit growth, driven by strong performance in oral health [53][54] Company Strategy and Development Direction - The company remains committed to its medium-term guidance of 4% to 6% organic sales growth despite current challenges in the US market [49][56] - Focus on innovation and premiumization, particularly in key markets like India and Brazil, is part of the strategic plan [39][40] - The company aims to close the incidence treatment gap and expand reach to lower-income consumers while maintaining investment in A&P and R&D [16][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging consumer environment in the US, with expectations of continued inventory pressure and no significant improvement anticipated in the near term [14][22] - Confidence in the medium-term outlook remains strong, with expectations for improved performance in 2026 [49][56] - The company is actively managing its portfolio and focusing on driving market growth despite external challenges [36][41] Other Important Information - The nicotine replacement therapy (NRT) business is a significant part of the portfolio, with a complex ownership structure affecting innovation and growth [73][75] - The company expects a high single-digit growth in operating profit, supported by gross margin improvements and effective cost control [77][78] Q&A Session Summary Question: North America's performance and future growth expectations - Management noted that North America faced challenges due to a difficult consumer environment and inventory pressures, with expectations for a gradual return to growth [3][22][25] Question: A&P spending and areas of reinvestment - A&P spending increased significantly, with a focus on driving growth in key markets and improving ROI [16][19] Question: Share performance and competitive pressures - The decline in the percentage of business gaining or maintaining share was attributed to challenges with brands like Advil and Centrum, with plans in place to stabilize performance [28][30] Question: Impact of nicotine replacement therapy on growth - The NRT business had a significant impact on overall growth, with expectations for less decline in the second half of the year [76][80] Question: Channel shifts and inventory management - Management discussed the impact of channel shifts, particularly towards e-commerce, and the need for effective inventory management across channels [86][90]

Financial Data and Key Metrics Changes - For fiscal year 2024, organic net sales were $12 billion, down 2.1% due to a prolonged volume recovery in the domestic retail business [21] - Adjusted gross margin expanded by 58 basis points, and adjusted operating margin expanded by 34 basis points year-over-year [8] - Adjusted EPS for the fiscal year was $2.67, with a net leverage ratio of 3.37 times, improved from over 5.5 times [10][22] Business Line Data and Key Metrics Changes - In Q4, organic net sales declined 2.4%, driven by a volume decline of 1.8% and a 0.6% price mix reduction [23] - The Snacks business saw positive consumption trends, helping to gain market share, while Grocery and Foodservice segments experienced volume declines [24] - Refrigerated and Frozen segments showed volume increases, with Frozen single-serve meals returning to growth [12][24] Market Data and Key Metrics Changes - Approximately 65% of the portfolio held or gained volume share in Q4, marking the fourth consecutive quarter of share gains [11] - In the Snacks domain, 80% of brands held or gained volume share, indicating strong competitive performance [12] - The international business delivered strong sales growth, driven by results from Mexico and global exports [24] Company Strategy and Development Direction - The company is focused on maximizing consumer engagement through strategic investments, aiming for gradual volume improvements [18] - Continued brand building investments are planned for fiscal 2025, with expectations of stable adjusted gross margins despite ongoing inflation [19] - The company aims to achieve $1 billion in cost savings by the end of fiscal 2025, targeting a net leverage ratio of approximately 3.2 times [17][32] Management's Comments on Operating Environment and Future Outlook - The management anticipates a challenging consumer environment in fiscal 2025 but expects a transition towards a normalized operating environment [18] - The company is encouraged by steady volume improvement and market share gains from investments made during fiscal 2024 [31] - Fiscal 2025 guidance includes organic net sales growth projected to be flat to down 1.5%, with adjusted EPS expected between $2.60 and $2.65 [20][32] Other Important Information - The company repaid a $1 billion senior note in Q4 and improved free cash flow by approximately $1 billion over fiscal 2023 [30] - Capital expenditures increased by 7% to $388 million, with dividends paid amounting to $659 million in fiscal 2024 [30] - The company plans to resume minimal share repurchases in fiscal 2025 to offset dilution from equity incentive plans [32] Q&A Session Summary Question: What are the expectations for organic net sales growth in fiscal 2025? - The company expects organic net sales growth to be flat to down 1.5% compared to fiscal 2024 [32] Question: How is the company addressing inflation and cost pressures? - The company plans to achieve approximately 4% cost savings as a percentage of cost of goods sold to offset projected inflation [18][32] Question: What is the outlook for the Snacks and Frozen segments? - The Snacks segment is expected to continue its positive momentum, while Frozen is anticipated to maintain steady growth [12][24]