Financial Data and Key Metrics Changes - The company achieved adjusted net sales down approximately 3% year over year, with adjusted EBITDA of $57,500,000, which was up 25% year over year [17] - Adjusted EBITDA margin was 7.2%, an increase of 160 basis points compared to the previous year [18] - Adjusted EBITDA benefited from a $6,000,000 timing shift of expenses from Q1 to Q2 [4][23] Business Line Data and Key Metrics Changes - The decline in volume and mix was attributed to planned margin management actions, service impacts from the restoration of the griddle facility, and slower takeaway later in the quarter [18] - The acquisition of Harris Teas contributed nearly 5% to sales, aligning with expectations [18] - Pricing adjustments provided a benefit of approximately 1% primarily in the coffee business [18] Market Data and Key Metrics Changes - Private brand unit sales were slightly negative in the quarter due to consumer pressure and the Easter holiday shift, but categories showed some recovery in April [9] - The private brand industry dynamics remain favorable, with healthy price gaps and continued market share gains over national brands [10] Company Strategy and Development Direction - The company is focused on margin improvement plans and controlling operational factors to drive profits and cash flow [5] - Strategic investments in private brands are being made by grocery retailers, indicating growth opportunities for the company [11] - The company aims to deliver $250,000,000 in gross supply chain savings through 2027, with a focus on profitability and cash flow [13] Management's Comments on Operating Environment and Future Outlook - The operating environment is more dynamic than anticipated, but the company is focused on executing plans to drive profits [5] - Management expressed confidence in the potential upside from private label growth due to consumer demand for value [30] - The company reiterated its full-year adjusted net sales guidance of a decline of 1% to growth of 1% year over year [22] Other Important Information - The company is managing its cost structure by streamlining operations and reducing management layers to enhance decision-making [14] - The decision to close the new Hampton facility is part of a strategy to optimize production efficiency [15] Q&A Session Summary Question: How is macro uncertainty affecting consumer demand for private label? - Management noted that any shift towards private label would be considered upside in their sales guidance, as consumers are seeking value [30] Question: What is the expected impact of margin management actions on the full year? - Management indicated that organic volume and mix are expected to decline about 1% for the full year, with margin management actions impacting this [33] Question: How are decisions made regarding bids that do not meet margin targets? - Management clarified that the focus is on aligning production capacity with customer needs rather than being pressured by retailers for lower prices [39] Question: What are the expectations for snacking categories in the current environment? - Management acknowledged some pressure in snacking categories but noted that consumers are still snacking, with expectations for recovery in the back half of the year [46] Question: How is the refill of the griddle pipeline progressing? - Management reported that all lines are running and that the benefits from the griddle pipeline will be realized in the second half of the year [54] Question: What is the company's target for leverage and its impact on share repurchases? - Management confirmed that the target remains at 3% to 3.5%, with plans to rebuild cash position before reevaluating share repurchase options [57]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net sales of $1.8 billion, a decrease of 4% compared to the prior year, while gross profit dollars increased by 12%, leading to a gross margin of 25.7%, up 350 basis points [16][19][20] - Adjusted operating income rose by 26% year over year to $273 million, driven by lower raw material costs and increased sales volume [16][19] - Adjusted earnings per share (EPS) for the quarter increased by $0.89, primarily due to an operating margin increase and lower financing costs [22][26] Business Line Data and Key Metrics Changes - The Texture and Healthful Solutions segment saw net sales increase by 1% and operating income grow by 34%, with a margin of 16.4%, up 400 basis points from the previous year [19][20] - Food and Industrial Ingredients LATAM reported a 7% decrease in net sales, but operating income improved by 26% to $127 million, benefiting from lower raw material costs [19][20] - In the U.S./Canada segment, net sales decreased by 4%, while operating income increased by 6% to $92 million, driven by lower raw material costs [19][20] Market Data and Key Metrics Changes - The company achieved a 3% organic growth in net sales volume, with a 7% increase in the Texture and Healthful Solutions segment [7][19] - The LATAM segment experienced a 2% decline in net sales volumes, primarily due to soft demand in brewing, although there was recovery in confectionery and bakery markets [8][19] - The U.S./Canada segment's strong volumes in brewing were offset by weaker sales of specialty starches for papermaking and packaging [8][19] Company Strategy and Development Direction - The company is focused on three strategic pillars: business growth, cost competitiveness, and a people-centric performance culture [10][12][13] - A $50 million investment was announced for the Cedar Rapids facility to expand specialty industrial starch capacity and support innovation in sustainable food packaging [11] - The company is committed to reducing earnings volatility through expanded hedging practices and operational excellence [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the remainder of 2025, highlighting customer collaborations driving volume growth and the importance of monitoring economic indicators such as unemployment and food inflation [29][30] - The company does not anticipate significant financial impacts from current tariffs, as most products are produced and sold locally [27][30] - Management is actively monitoring the evolving trade environment and has set up a tariff response hub to navigate complexities [28][30] Other Important Information - The company received several recognitions, including being named one of Fortune's World's Most Admired Companies and one of Ethisphere's World's Most Ethical Companies [13][14] - Cash generated from operations was $77 million, with capital expenditures of $92 million planned for organic growth initiatives [22][23] Q&A Session Summary Question: Can you provide insights on the updated guidance for Q2 and segment performance? - Management indicated that Q2 guidance is against a strong prior year, with expectations for the U.S./Canada segment to remain strong despite seasonal weakness in LATAM [34][35] Question: How do you view the impact of recent prospective plantings on corn costs? - Management noted that while some corn costs are unhedged, they have hedged 80-85% of their needs, which helps stabilize pricing [38] Question: What are the expectations for volumes in the context of consumer uncertainty? - Management remains optimistic about mid-single-digit sales volume growth, driven by trends towards affordable formulations [46][49] Question: How does the sales mix look in light of potential consumer trade downs? - Management stated that the ingredients supplied to private label customers are not significantly impacted by trade downs, and clean label solutions are performing well [56][60] Question: Can you elaborate on the performance in LATAM and any portfolio shifts? - Management highlighted improved performance in LATAM due to a stable Argentine peso and strategic shifts in product mix to higher-margin uses [65][66] Question: What is the size of the Pakistan affiliate business and potential sale implications? - Management indicated that the Pakistan business is similar in size to the South Korea business, but details on potential sale proceeds are not yet available [68][70]

Financial Data and Key Metrics Changes - The company achieved adjusted net sales within guidance range, with adjusted EBITDA exceeding the upper end of guidance by approximately $6 million due to planned expense shifts [4][5] - Adjusted net sales decreased by approximately 3% year over year, while adjusted EBITDA increased by 25% to $57.5 million, resulting in an adjusted EBITDA margin of 7.2%, up 160 basis points from the previous year [15][16] Business Line Data and Key Metrics Changes - The decline in volume and mix was attributed to planned margin management actions, service impacts from the griddle facility restoration, and slower takeaway later in the quarter [16] - The acquisition of Harris Teas contributed nearly 5% to sales, while pricing adjustments provided a benefit of approximately 1% [16][17] Market Data and Key Metrics Changes - Private brand unit sales were slightly negative in the quarter due to consumer pressure and the timing of the Easter holiday, but categories showed some recovery in April [8][9] - The private brand industry dynamics remain favorable, with healthy price gaps allowing private brands to gain market share in a lower consumption environment [9][10] Company Strategy and Development Direction - The company is focused on strengthening its supply chain, margin management initiatives, and restoring production levels in key categories while pursuing profitable new business opportunities [22] - Strategic decisions have been made to streamline operations, including reducing management layers and consolidating divisions to enhance efficiency and decision-making [13][14] Management Comments on Operating Environment and Future Outlook - The operating environment is more dynamic than anticipated, but the company is committed to controlling its operations and executing plans to drive profits and cash flow [5] - The full-year adjusted net sales guidance is reiterated at a decline of 1% to growth of 1%, with expectations of a mid-single-digit decline in organic volume and mix for the second quarter [19][21] Other Important Information - The company has visibility to deliver $250 million in gross supply chain savings through 2027, with significant recent success in procurement [12] - The company is focused on maintaining a balance sheet that supports its net debt to adjusted EBITDA ratio, aiming for a target range of 3% to 3.5% [52][53] Q&A Session Summary Question: How is macro uncertainty affecting consumer demand for private label? - Management noted that any shift towards private label would be upside in their numbers, as consumers are seeking value and the quality and price gaps for private labels are favorable [27][28] Question: What should be expected regarding margin management activity? - Management indicated that organic volume and mix are expected to decline about 1% for the full year, with margin management actions impacting the top line [30][31] Question: How are decisions made regarding bids that do not meet margin targets? - Management explained that the focus is on aligning capacity with customer needs, streamlining product offerings, and enhancing operational efficiency rather than being pressured by retailers [37][38] Question: What are the thoughts on snacking categories and their performance? - Management acknowledged some pressure in snacking categories but noted that consumers are still snacking, with expectations for improvement in the back half of the year due to seasonality and recovery of the griddle plant [42][45] Question: How is the refill of the griddle pipeline progressing? - Management reported that all lines are running and while it will take time to fill the customer pipeline, they expect benefits to materialize in the second half of the year [49][50] Question: What is the focus regarding capital allocation and leverage goals? - Management confirmed that the target leverage remains at 3% to 3.5%, with plans to rebuild cash positions and reevaluate options for capital deployment later in the year [52][53]

Financial Performance - Q1 2025 net sales were $1.813 billion, a decrease of 4% compared to $1.882 billion in Q1 2024[15, 29] - Q1 2025 adjusted operating income increased by 26% to $273 million, compared to $216 million in Q1 2024[17, 29] - Q1 2025 adjusted diluted EPS was $2.97, an increase of $0.89 per share compared to $2.08 in Q1 2024[29] - The gross profit margin for Q1 2025 was 25.7%, a 350 bps increase from 22.2% in Q1 2024[29] Segment Performance - Texture & Healthful Solutions net sales increased by 1% to $602 million in Q1 2025, with a 7% volume increase[19, 34] - Food & Industrial Ingredients—LATAM net sales decreased by 7% to $573 million in Q1 2025[34] - Food & Industrial Ingredients—US/CAN net sales decreased by 4% to $520 million in Q1 2025[36] Outlook - The company expects full-year 2025 net sales to be up low single-digits[43] - The company projects full-year 2025 adjusted EPS to be in the range of $10.90 to $11.60[43] - The company anticipates cash from operations to be between $825 million and $950 million for full-year 2025[43]

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]