Financial Data and Key Metrics Changes - In Q1 2025, net sales were $1.8 billion, down 4% year-over-year, while gross profit dollars increased by 12%, with margins up 350 basis points to 25.7% [17][18] - Adjusted operating income rose by 26% year-over-year to $273 million, driven by lower raw material costs and greater sales volume [17][18] - Adjusted EPS increased by $0.89 per share, primarily due to an operating margin increase of $0.60 and other income of $0.17 [22] Business Line Data and Key Metrics Changes - The Texture and Healthful Solutions segment saw net sales up 1% and operating income up 34%, with a margin of 16.4%, reflecting lower input costs and greater volumes [20] - Food and Industrial Ingredients LATAM experienced a 7% decline in net sales, but operating income improved by 26% to $127 million due to lower raw material costs [20] - In the U.S./Canada segment, net sales were down 4%, but operating income increased by 6% to $92 million, driven by lower raw material costs [21] Market Data and Key Metrics Changes - Organic growth was driven by a 3% increase in net sales volume, with Texture and Healthful Solutions growing by 7% across all geographies [8] - LATAM's net sales volumes decreased by 2%, primarily due to soft volumes in brewing, while the U.S./Canada segment saw strong volumes in brewing offset by weaker specialty starch sales [9][10] Company Strategy and Development Direction - The company is focusing on three strategic pillars: business growth, cost competitiveness, and a people-centric culture, with significant investments in expanding specialty industrial starch capacity [12][13][14] - The commitment to sustainability is highlighted by recognitions from Fortune and Ethisphere, reflecting the company's ethical practices and environmental efforts [14][16] - The company is actively monitoring the evolving trade environment and has set up a tariff response hub to navigate complexities [28] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about 2025, citing customer collaborations driving volume growth and a diversified ingredient portfolio [29][30] - Key economic indicators such as low unemployment and moderating food inflation are viewed as positive signs for future performance [30] - The company anticipates minimal impact from current tariffs, with a strong local production and sales model [27][30] Other Important Information - The company repurchased $55 million of outstanding common shares and paid out $52 million in dividends in the first quarter [23] - Full-year cash from operations is expected to be between $825 million and $950 million, reflecting updates to working capital investments [25] Q&A Session Summary Question: Can you provide insights on the updated guidance for Q2? - Management indicated that Q2 guidance is against a record year and expects solid performance in Texture and Healthful Solutions, while LATAM may see seasonal weakness [32][34] Question: What are the implications of recent corn planting data on costs? - Management noted that while some corn costs are unhedged, they have hedged 80-85% of their needs, which helps stabilize pricing [36][37] Question: How does the company view volumes amid consumer uncertainty? - Management remains optimistic about volume growth, particularly in Texture and Healthful Solutions, driven by affordable formulation trends [44][46] Question: What is the outlook for the LATAM segment? - The LATAM segment is expected to perform well, with positive operating income growth despite some volume declines in beverages [64][66] Question: How does the company plan to handle potential trade downs in consumer behavior? - Management stated that their product mix is resilient, with growth in private label products and clean label solutions, which are in demand regardless of economic conditions [58][60]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.70 and total segment operating profit of $747 million for the quarter [4] - The trailing fourth quarter adjusted return on invested capital (ROIC) was 7% and cash flow from operations before working capital changes was $439 million [4][22] - The first quarter results were aligned with market expectations despite a dynamic external environment [5] Business Line Data and Key Metrics Changes - The Carbohydrate Solutions segment operating profit was $240 million, down 3% year-over-year [18] - The Nutrition segment revenues were $1.8 billion, down 1% year-over-year, while operating profit increased by 13% to $95 million [20][21] - The Ag Services and Oilseeds segment operating profit was $412 million, down 52% compared to the prior year quarter [13] Market Data and Key Metrics Changes - The Ag Services sub-segment operating profit was $159 million, down 31% year-over-year, primarily due to lower North American origination export volumes [14] - The crushing sub-segment saw operating profit drop to $47 million, down 85% year-over-year, with significant declines in global soybean and canola crush margins [15] - Equity earnings from the company's investment in Wilmar were $72 million, down 52% compared to the prior year quarter [18] Company Strategy and Development Direction - The company is focused on a self-help agenda aimed at delivering cost savings of $500 million to $750 million over the next three to five years [7] - Strategic decisions include the closure of the Cursea, South Carolina crush facility and the exit from domestic trading operations in China and Dubai [8] - The company is investing in automation and digitization across its global manufacturing network to improve efficiency and reliability [9] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the second half outlook for crush margin improvement due to current domestic crush replacement margins being below expectations [23] - The company remains confident in its ability to navigate the uncertain external landscape and is focused on operational performance and cost management [26][28] - Management highlighted the importance of clarity on Renewable Volume Obligations (RVOs) to support strong U.S. demand for crop-based vegetable oils [31] Other Important Information - The company returned $247 million to shareholders in the form of dividends during the quarter [22] - The Decatur East facility is expected to be fully operational by the end of the second quarter, with an anticipated impact of $25 million per quarter for Nutrition once fully ramped up [97] Q&A Session Summary Question: Expectations for RVO and its influence on 2025 outlook - Management indicated that strong RVOs are crucial for the biofuel outlook and expect margins to improve in the second half of the year [37][39] Question: Specific RVO numbers and positive outcomes for ADM - Management mentioned that the industry is looking for around €25 billion in biomass-based biodiesel and conventional biodiesel to support internal consumption and export markets [47][49] Question: Clarification on RPO performance despite a weak environment - Management acknowledged that RPO margins are expected to be significantly lower compared to the prior year due to various market pressures [55] Question: Impact of tariffs and trade flow shifts - Management noted that the impact of tariffs has not been significant in Q1, with most products exempt from export tariffs to Mexico and Canada [60][62] Question: Signs of rationalization in the soy crush industry - Management stated that while they cannot speculate on others, they are actively managing their own capacity and expect some plant shutdowns in response to demand [68] Question: Commercialization of Argentine crops - Management expects Argentine farmers to begin regular commercialization of crops as they take advantage of tax benefits before they expire [76] Question: Volume growth expectations for Starches and Sweeteners - Management reiterated that overall demand remains solid, but there are pockets of weakness, particularly in Europe and exports to Mexico [80]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $0.70 and total segment operating profit of $747 million for the quarter [5] - Trailing fourth quarter adjusted return on invested capital (ROIC) was 7% and cash flow from operations before working capital changes was $439 million [5][24] - Overall cash flow from operations decreased compared to the prior quarter due to lower total segment operating profit [24] Business Line Data and Key Metrics Changes - The Carbohydrate Solutions segment operating profit was $240 million, down 3% year-over-year [20] - The Nutrition segment revenues were $1.8 billion, down 1% year-over-year, while operating profit increased by 13% to $95 million [22][23] - The Ag Services and Oilseeds segment operating profit was $412 million, down 52% compared to the prior year quarter [16] Market Data and Key Metrics Changes - The Ag Services sub-segment operating profit was $159 million, down 31% due to lower North American origination export volumes [17] - Global trade results were lower compared to the same quarter last year, largely due to negative timing impacts [17] - Equity earnings from the company's investment in Wilmar were $72 million, down 52% compared to the prior year quarter [20] Company Strategy and Development Direction - The company is focused on cost savings of $500 million to $750 million over the next three to five years, including workforce reductions and a review of third-party consulting spend [9] - Strategic decisions include the closure of the Cursea, South Carolina crush facility and the exit from domestic trading operations in China and Dubai [10] - The company is advancing automation and digitization across its global manufacturing network to improve reliability and efficiency [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to navigate an uncertain external landscape while focusing on execution and cost management [12][31] - The company remains cautious about the second half outlook for crush margin improvement due to current domestic crush replacement margins being below expectations [26] - Management highlighted the importance of clarity on Renewable Volume Obligations (RVOs) to support strong U.S. demand for crop-based vegetable oils [34] Other Important Information - The company returned $247 million to shareholders in the form of dividends during the quarter [25] - The Decatur East facility is expected to be fully operational by the end of the second quarter, with an anticipated impact of $25 million per quarter for Nutrition once fully operational [99] Q&A Session Summary Question: Expectations for RVO and its impact on 2025 outlook - Management indicated that strong RVOs are crucial for the biofuel outlook and expect margins to improve in the second half of the year [40][41] Question: Specific RVO numbers and positive outcomes for ADM - Management mentioned that the industry requires approximately €25 billion in biomass-based biodiesel and conventional biodiesel to support internal consumption and export markets [51][52] Question: Strength in RPO despite a weak environment - Management acknowledged that while RPO was better in the short run, overall expectations remain lower due to biodiesel margin pressures and increased refining capacity [58][59] Question: Trade flow shifts and impact of tariffs - Management noted that the impact of tariffs has not been significant in Q1, with most products exempt from export tariffs to Mexico and Canada [64][66] Question: Signs of rationalization in the soy crush industry - Management speculated that the industry may see plant shutdowns when demand is low, but emphasized the importance of clarity on RPO mandates for future capacity [73][74] Question: Commercialization of Argentine crops - Management expects Argentine farmers to become more regular in commercializing crops as they take advantage of government tax benefits before they expire [79] Question: Volume growth expectations for Starches and Sweeteners - Management reiterated guidance for slightly lower volumes than last year, with some weakness noted in specific markets [82][84] Question: Ethanol margins and performance - Management highlighted good risk management in ethanol operations, with expectations for margins to improve over the year [90] Question: Contribution from Decatur once fully operational - Management confirmed that the Decatur plant's impact will be felt in the second half of the year, with an expected contribution of $25 million per quarter [99]

Core Viewpoint - Tyson Foods' stock price experienced a decline of over 7% following the Q2 earnings release and guidance update, which presents a potential investment opportunity as the market reaction appears to be an overreaction to solid guidance reaffirmed at previous levels [1][2]. Financial Performance - Q2 revenue for Tyson Foods was reported at $13.07 billion, remaining relatively flat compared to the previous year, with pricing increases compensating for volume weaknesses in several areas [4]. - Adjusted operating margin improved by 70 basis points, leading to a significant 48% increase in adjusted earnings, which outperformed consensus estimates by 1000 basis points [6]. Dividend and Capital Return - The dividend yield stands at 3.59%, with a payout of $2.00, supported by a sustainable payout ratio, cash flow, and earnings growth outlook [2][3]. - The company has a history of increasing its dividend for over a dozen years, indicating a positive trend in capital return [3]. Debt Management - Tyson Foods has been actively reducing its debt, with a reduction of nearly $0.75 billion in Q2, resulting in a year-to-date decrease of 15% [8]. - The debt-to-equity ratio is below 0.5x, positioning the company favorably against long-term targets [8]. Stock Forecast - The 12-month stock price forecast for Tyson Foods is $61.78, indicating an 11.20% upside potential from the current price of $55.56 [5]. - Analysts predict growth in three segments for Q3, with expectations for sustained growth in the long term [5]. Market Sentiment - Following the Q2 release, Tyson's stock price fell to the low end of the analyst's target range but is expected to rebound towards the higher end by year-end [9]. - The stock is currently rated as a Hold, with sentiment trends showing potential upgrades and a firm consensus target of $61.75 [9].

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 ...