Financial Performance and Key Metrics - Adjusted EPS increased by 7% for the quarter and 14% for the first half, reflecting strong execution against market opportunities [6][10] - Revenue for the quarter was $5.4 billion, with EBITDA of $826 million and EBIT of $603 million, significantly higher than the prior year due to the Berry acquisition and improved productivity [9][10] - Free cash flow was $289 million for the quarter, with a quarterly dividend declared at $0.65 per share, up from the prior year [10][24] Business Line Performance - Global Flexible Packaging Solutions segment sales increased by 23% on a constant currency basis, driven primarily by the Berry acquisition, although volumes were down approximately 2% [19][20] - Global Rigid Packaging Solutions segment sales also increased significantly on a constant currency basis, with volumes flat compared to the prior year, excluding non-core businesses [21][22] - Focus categories such as pet food and meat proteins showed higher volumes, while other categories like liquids and unconverted film and foil experienced lower volumes [20][45] Market Performance - Volumes in developed regions like North America and Europe were down low- to mid-single digits, with Europe facing more challenges than North America [19][20] - Emerging markets showed low single-digit growth in Asia Pacific, offset by modestly lower volumes in Latin America [19][20] - The core portfolio's volume performance was approximately 1.5% lower than the prior year, with focus categories outperforming the broader portfolio [11][45] Company Strategy and Industry Competition - The company is focused on delivering core business, accelerating synergy realization, and optimizing its portfolio, which includes evaluating alternatives for $2.5 billion of non-core businesses [5][8] - The company aims to deliver at least $260 million of synergies in fiscal 2026 and a total of $650 million by fiscal 2028 [16][26] - The management emphasizes the importance of innovation and leadership positions in core categories to drive long-term consumer demand [11][12] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half, expecting volume performance to remain consistent with the first half, while focusing on cost control and productivity improvements [32][34] - The company reaffirmed its financial guidance for the fiscal year, with adjusted EPS expectations updated to $4.00-$4.15 per share [7][25] - Management noted that while the market environment remains challenging, there are opportunities for revenue synergies and improved performance in non-core businesses [34][50] Other Important Information - The company has made significant progress in reducing headcount by over 600 as part of its integration roadmap [13] - The acquisition of Berry has positioned the company as a global leader in consumer packaging and dispensing solutions, enhancing its competitive advantage [4][16] Q&A Session Summary Question: Expectations for volume performance in the next two quarters - Management indicated that they expect volume performance to be consistent with the first half, with some potential for improvement driven by revenue synergies [32][34] Question: Initiatives for the fourth quarter and confidence in guidance - Management highlighted seasonality, synergy growth, and improvements in non-core businesses as key drivers for expected EBIT improvement in the second half [39][40] Question: Volume performance in major categories and market share - Management noted that overall company volumes were down 2.5%, with core portfolio volumes down 1.5%, indicating performance in line with broader industry trends [42][43] Question: EBIT contribution from non-core businesses in the second half - Management expects EBIT margins for non-core businesses to return to more traditional levels of 7%-8%, representing a $50 million improvement compared to the first half [51][52] Question: Impact of GLP-1 on nutrition business - Management acknowledged the potential structural headwind from increased GLP-1 use but emphasized their positioning to support customers in balancing price and volume [86][87]