First Quarter 2025 Earnings Conference Call May 6, 2025 Proprietary business information of ADM. Proprietary business information of ADM. Proprietary business information of ADM. 2 Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this presentation, are forwa ...

Q1 Results and 2025 Outlook May 6, 2025 © 2025 TreeHouse Foods, Inc. 1 Forward Looking Statement From time to time, we and our representatives may provide information, whether orally or in writing, which are deemed to be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Litigation Reform Act"). These forward-looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available. The words "bel ...

Core Insights - Ingredion Incorporated reported strong first-quarter results for 2025, demonstrating growth in sales volume and operating income despite tariff uncertainties [2][19] - The company has improved its full-year earnings forecast based on the successful first-quarter performance, focusing on sustainable growth and disciplined cost management [2][20] Financial Performance - First-quarter 2025 reported diluted EPS was $3.00, down from $3.23 in Q1 2024, while adjusted diluted EPS increased to $2.97 from $2.08 [3][4] - Reported operating income for Q1 2025 was $276 million, a 30% increase compared to $213 million in Q1 2024, with adjusted operating income rising 26% to $273 million [10][41] - Net sales for Q1 2025 decreased by 4% to $1.813 billion, primarily due to lower raw material costs and the impact of the sale of the South Korea business [9][34] Segment Performance - The Texture & Healthful Solutions segment saw a 34% increase in operating income, driven by strong sales volume, particularly in clean label solutions [2][13] - Food & Industrial Ingredients—LATAM reported operating income of $127 million, a 26% increase, benefiting from the stability of the Argentine peso and lower raw material costs [15][21] - Food & Industrial Ingredients—U.S./Canada segment operating income increased by 6% to $92 million, supported by efficient cost management and favorable product mix [16][21] Guidance and Outlook - The company expects full-year 2025 reported EPS to range from $10.93 to $11.63 and adjusted EPS from $10.90 to $11.60, reflecting anticipated growth in net sales and operating income [19][20] - Full-year net sales are projected to increase by low single-digits, with operating income expected to rise in the high teens [20][22] - Segment-specific expectations include mid-single-digit growth for Texture & Healthful Solutions and flat to low single-digit declines for Food & Industrial Ingredients—U.S./Canada [21][22] Capital Management - In Q1 2025, the company paid $52 million in dividends and repurchased $55 million in common stock [18] - Total debt at the end of Q1 2025 was $1.784 billion, with cash and short-term investments totaling $846 million [12][36]

Core Viewpoint - Tyson Foods reported lower-than-expected quarterly sales, with total net sales of $13.07 billion missing analysts' estimates of $13.14 billion, despite better-than-anticipated profits, leading to a 9% drop in shares [1][9] Company Performance - The beef business, which is Tyson's largest unit, reported an adjusted operating loss of $181 million for the six months ending in March [6] - In the chicken unit, quarterly sales volumes rose by 3%, while average prices declined by 1.1%, resulting in an increase in income to $312 million from $160 million a year earlier [11] - The company maintained its outlook for total adjusted operating income of $1.9 billion to $2.3 billion for fiscal year 2025, despite some investor expectations for an increase [8] Market Conditions - Demand for Tyson's beef has declined as average prices spiked by 8.2% in the second quarter, leading consumers to opt for less expensive meats like chicken [5][4] - Beef prices have risen due to US ranchers reducing cattle herds amid a prolonged drought affecting grazing lands [2][8] - CEO Donnie King stated that the beef market is facing the most challenging conditions ever seen [4] External Factors - President Trump's trade policies and tariff disputes are raising concerns about potential price increases for consumer goods, which could further reduce demand for higher-priced meat products [1] - Tyson warned that tariffs could disrupt sales, although exports account for less than 10% of its business [5] - Legal contingency accruals added pressure on sales, with an increase of $250 million for claims related to price fixing in its pork business [12]

Core Insights - Tyson Foods, Inc. (TSN) reported a strong increase in adjusted earnings per share, reaching 92 cents, which exceeded the Zacks Consensus Estimate of 85 cents and marked a 48% increase from the previous year's 62 cents [2] - Total sales remained flat at $13,074 million year over year, missing the Zacks Consensus Estimate of $13,097.8 million, with average price changes positively impacting the top line by 2.6% while total volumes remained unchanged [2] Financial Performance - Gross profit for the quarter was $600 million, down from $866 million in the same period last year [3] - Adjusted operating income increased by 27% to $515 million from $406 million year over year, with the adjusted operating margin expanding to 3.8% from 3.1% [3] Segment Performance - **Beef**: Sales increased to $5,196 million from $4,954 million, with volumes down 1.4% and average prices up 8.2% [4] - **Pork**: Sales decreased to $1,244 million from $1,486 million, with volumes down 3.8% and average prices up 4.3% [4] - **Chicken**: Sales improved to $4,141 million from $4,065 million, with sales volumes growing 3% and average prices down 1.1% [5] - **Prepared Foods**: Sales were $2,396 million, down from $2,404 million, with volumes dipping 2.6% and average prices rising 2.3% [5] - **International/Other**: Sales were $566 million compared to $580 million, with volumes down 1.5% and average sales prices down 0.9% [6] Financial Position - The company ended the quarter with cash and cash equivalents of $992 million, long-term debt of $8,172 million, and total shareholders' equity of $18,531 million [7] - Liquidity stood at $3.2 billion, expected to remain above the minimum target of $1 billion for fiscal 2025, with projected capital expenditure of $1-$1.2 billion [8] Future Outlook - The USDA projects a 1% increase in domestic protein production for fiscal 2025 compared to fiscal 2024 [10] - For fiscal 2025, Tyson Foods anticipates total revenue growth to be flat to a 1% increase, with adjusted operating income expected in the range of $1.9-$2.3 billion [12] - Segment-wise, adjusted operating income projections include a loss of $0.4-$0.2 billion for Beef, and profits of $0.1-$0.2 billion for Pork, $1-$1.3 billion for Chicken, and $0.9-$1.1 billion for Prepared Foods [13]

Core Insights - Tyson Foods reported $13.07 billion in revenue for the quarter ended March 2025, showing a year-over-year increase of 0% and an EPS of $0.92 compared to $0.62 a year ago, with a revenue surprise of -0.18% and an EPS surprise of +8.24% [1] Financial Performance - Revenue of $13.07 billion compared to Zacks Consensus Estimate of $13.1 billion [1] - EPS of $0.92 compared to consensus estimate of $0.85 [1] - Year-over-year revenue growth of 0% [1] Key Metrics - Beef volume decreased by 1.4% compared to the average estimate of -1.5% [4] - Chicken volume increased by 3% compared to the average estimate of 1% [4] - Sales for Chicken were $4.14 billion, exceeding the average estimate of $4.05 billion, with a year-over-year change of +1.9% [4] - Sales for Beef were $5.20 billion, surpassing the average estimate of $4.97 billion, with a year-over-year change of +4.9% [4] - International/Other sales were $566 million, below the estimated $582.90 million, representing a -2.4% change year-over-year [4] - Prepared Foods sales were $2.40 billion, slightly below the estimated $2.46 billion, with a -0.3% change year-over-year [4] - Pork sales were $1.24 billion, below the average estimate of $1.47 billion, reflecting a -16.3% year-over-year change [4] Operating Income - Adjusted Operating Loss for Beef was -$149 million compared to the average estimate of -$122.63 million [4] - Adjusted Operating Income for Pork was $55 million, exceeding the average estimate of $40.74 million [4] - Adjusted Operating Income for International/Other was $53 million, surpassing the average estimate of $14.62 million [4] - Adjusted Operating Income for Prepared Foods was $244 million, slightly below the average estimate of $255.29 million [4] Stock Performance - Tyson shares returned +1.6% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - Second quarter adjusted operating income increased by more than $100 million or 27% year-over-year, with a margin expansion of 70 basis points [9][23] - Adjusted earnings per share grew by 48%, reflecting improved operating performance and strategic execution [9][23] - Enterprise sales for the second quarter were $13.1 billion, which included a reduction of $343 million or 2.6% related to a legal contingency accrual primarily in pork [23][24] Business Line Data and Key Metrics Changes - **Prepared Foods**: Sales were in line with last year, with adjusted operating income increasing nearly 5% and margin improving by 50 basis points [24][25] - **Chicken**: Achieved the best second quarter adjusted operating income in nine years, with a nearly 95% increase compared to the same quarter last year [16][26] - **Beef**: Sales increased primarily due to a higher average price per pound, but adjusted operating income declined due to spread compression [27] - **Pork**: Adjusted operating income increased by 67%, reflecting the strongest second quarter result in the past three years [18][28] Market Data and Key Metrics Changes - 71% of U.S. consumers sought to increase their protein consumption in 2024, indicating robust demand for meat products [10][11] - U.S. meat sales at retail hit an all-time high in 2024, with meat included in nearly 90% of home-cooked dinners [11] Company Strategy and Development Direction - The company is focused on operational excellence, customer and consumer obsession, and capital allocation to drive long-term value [19][32] - A multi-year plan is in place to optimize operations, launch innovations, and expand distribution, particularly in the Prepared Foods segment [13][19] - The company is transitioning to a new logistics and distribution infrastructure, which is expected to generate around $200 million in annual savings upon completion [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment, emphasizing the importance of their multi-protein, multi-channel portfolio [9][44] - The company anticipates sales growth to be flat to up 1% year-over-year, with adjusted operating income expected between $1.9 billion and $2.3 billion [30][32] - Management acknowledged challenges in the beef segment but remains optimistic about the overall business performance [44][106] Other Important Information - The company is committed to eliminating petroleum-based synthetic dyes from its products, with completion expected by May [21][22] - A new Chief Growth Officer, Christina Lambert, has been appointed to lead strategic initiatives [33][34] Q&A Session Summary Question: Why did the company not raise guidance for the full year despite beating consensus expectations? - Management indicated that while results were strong, they are cautious due to uncertainties in the beef market and consumer pressures, reaffirming guidance for the year [41][46] Question: What is the outlook for chicken demand? - Management remains optimistic about chicken demand, citing strong performance and a commitment to maintaining market share, despite some uncertainties in the industry [49][51] Question: Can you elaborate on the changes in cold storage facilities and expected savings? - Management explained that the transition to new cold storage facilities is aimed at reducing costs and improving efficiency, with expected annual savings of $200 million [56][62] Question: What are the expectations for the international business? - Management highlighted improved operational fundamentals and execution of a commercial growth strategy, leading to strong performance in the international segment [95][96] Question: How does the company view the impact of tariffs on trade flows? - Management does not expect global protein consumption to change significantly but anticipates temporary disruptions as trade flows adjust [121]

Financial Performance - The company achieved YoY growth in Sales, Adjusted Operating Income (AOI), and adjusted EPS for the fourth consecutive quarter[8] - In Q2 2025, Sales reached $13074 million, with an Adjusted Operating Income of $515 million, resulting in an AOI Margin of 38%[15] - Adjusted EPS for Q2 2025 was $092, a 48% increase compared to the prior year[15] - Free Cash Flow YTD'25 was $382 million, compared to $556 million YTD'24[29] Segment Highlights - Prepared Foods reported Sales of $2396 million with an AOI of $244 million in Q2 2025[17] - Chicken segment achieved Sales of $4141 million and an AOI of $312 million in Q2 2025[20] - Beef segment reported Sales of $5196 million with an AOI of $(149) million in Q2 2025[22] - Pork segment reported Sales of $1244 million with an AOI of $55 million in Q2 2025[25] Financial Position - The company's net leverage ratio decreased to 23x[8] - Capital Expenditures YTD'25 amounted to $271 million, compared to $354 million YTD'24[32] - The company returned $365 million to shareholders through dividends and share repurchases[33] FY25 Guidance - The company anticipates Sales Growth to be flat to 1% for FY25[36] - Total AOI is projected to be between $19 billion and $23 billion for FY25[36]

Core Insights - Tyson Foods, Inc. reported a slight increase in sales for the second quarter of 2025, reaching $13,074 million, compared to $13,072 million in the same period of 2024, marking a growth of 0.01% [4] - The company experienced a significant decline in GAAP operating income, which fell to $100 million, down 68% from $312 million in the previous year, while adjusted operating income rose to $515 million, up 27% from $406 million [4][6] - Net income attributable to Tyson decreased to $7 million, a drop of 95% from $145 million in the prior year, with adjusted net income per share increasing to $0.92, up 48% from $0.62 [4][6] Financial Performance - Total sales for the first six months of 2025 were $26,697 million, up 1.2% from $26,391 million in 2024 [4] - The company reported a GAAP operating margin of 0.8% for the second quarter, down from 2.4% in the previous year, while the adjusted operating margin improved to 3.8% from 3.1% [4][6] - Cash provided by operating activities was $846 million, a decrease of $331 million from the prior year, and free cash flow was $382 million, down $174 million [4][6] Segment Performance - Beef segment sales were $5,196 million, a decrease of 1.4% year-over-year, while pork sales fell by 3.8% to $1,244 million [5] - Chicken sales increased by 3.0% to $4,141 million, and prepared foods sales were $2,396 million, down 2.6% [5] - Adjusted operating income for the chicken segment was $312 million, up 7.5% from the previous year, while the pork segment reported an adjusted operating income of $55 million, up 3.7% [7] Outlook - For fiscal 2025, the USDA projects a 1% increase in domestic protein production compared to fiscal 2024 [8] - Tyson anticipates total company adjusted operating income between $1.9 billion and $2.3 billion for fiscal 2025 [15] - The company expects sales to remain flat to up 1% in fiscal 2025, factoring in a $343 million reduction due to legal contingency accruals [16]

Core Insights - The freeze-dried food industry in China is part of the agricultural and agricultural product processing sector, with upstream focusing on raw materials and freeze-drying equipment, midstream on food freeze-drying processing, and downstream on wholesalers, supermarkets, convenience stores, and food companies [1] Industry Overview - The freeze-dried food industry is primarily concentrated in Shandong and Jiangsu, with additional presence in Anhui, Henan, and Fujian [3] - Upstream raw material companies are mainly located in Xinjiang, Gansu, Shandong, and Hubei, while upstream refrigeration equipment companies are found in Beijing and Shanghai. Midstream freeze-dried food companies are predominantly in Shandong and Fujian [6] Company Performance - In the first half of 2024, the revenue from pet snacks for Guai Bao Pet reached 1.194 billion yuan. The gross margin varies significantly among listed companies, with Lai Yi Fen's candy and fruit products gross margin exceeding 45%, while Hao Xiang Ni's health-preserving products have a gross margin of only 11.50% [7][8] - The number of stores for Lai Yi Fen is the highest among listed companies, totaling 3,472 [7] Company Financials | Company Name | Revenue (Billion Yuan) | Gross Margin (%) | Other Indicators | | --- | --- | --- | --- | | Hao Xiang Ni (002582) | 0.35 | 11.50% | Store Count: 390 | | Lai Yi Fen (603777) | 3.41 | 45.18% | Store Count: 3,472 | | Liang Pin Pu Zi (603719) | 6.67 | 33.15% | Store Count: 2,814 | | San Zhi Song Shu (300783) | 0.35 | 21.32% | Store Count: 415 | | Guai Bao Pet (301498) | 1.194 | 39.19% | Pet Feed Sales: 176,000 tons | | Lu Si Co. (832419) | 0.215 | 26.41% | | | Zhong Chong Co. (002891) | 1.136 | 25.45% | Pet Food and Supplies Sales: 99,600 tons | | Pei Ti Co. (300673) | 0.190 | 29.87% | Pet Food and Others Sales: 30,100 tons [8] Recent Developments - Since 2024, representative companies in the freeze-dried food industry have engaged in strategic partnerships, established new companies, and built R&D centers [11]