Financial Data and Key Metrics Changes - The company reported a decline in volume in North America by 4% compared to a 2.8% average year-to-date, indicating a slowdown in the market [20] - The guidance for Q4 implies a step up in organic net revenue growth of more than 4%, with an expected improvement in EBIT growth compared to the previous year [13][46] - Cocoa prices have been a significant factor, with a 30% price increase impacting the chocolate segment, but the company expects significant improvement moving forward [5][9] Business Line Data and Key Metrics Changes - In Europe, the biscuits, cakes, pastries, and meals business are performing well with share growth and volume mix growth, while the chocolate category is generally in line with expectations despite some pressure [5][6] - The U.S. biscuit category is facing challenges, with consumers focusing on essentials and shifting towards smaller packs and promotions [20][21] - Emerging markets showed a volume decline of 4.7%, primarily affected by Argentina's hyperinflation and economic conditions, but India and Brazil are performing better with mid-single-digit and double-digit growth respectively [39][41] Market Data and Key Metrics Changes - Consumer confidence in Europe remains stable, but the U.S. market is experiencing a decline in consumer spending and basket size, affecting overall sales [5][20] - Price elasticity in Europe is currently around 0.7 to 0.8, higher than the historical range of 0.4 to 0.5, indicating a need for price adjustments in certain product lines [8][34] - Emerging markets are showing varied performance, with China experiencing low single-digit growth and Argentina significantly impacting overall volume [40][41] Company Strategy and Development Direction - The company is focusing on optimizing pricing strategies and promotional effectiveness to drive growth, particularly in the U.S. market [12][24] - There is a clear strategy to invest in emerging markets and adjacencies like cakes and pastries, with a goal of high single-digit EPS growth for 2026 [15][29] - The company plans to enhance its supply chain efficiency and reduce costs through automation and better logistics management [48][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential despite current challenges, emphasizing the importance of adapting to consumer behavior and market conditions [15][68] - The company anticipates a rebound in Europe driven by seasonal activations and improved pricing strategies, while the U.S. market is expected to stabilize with better promotional strategies [46][48] - Cocoa prices are expected to be deflationary in 2026, which will positively impact margins and allow for further investments [15][14] Other Important Information - The company is implementing a multi-year North America supply chain program aimed at addressing cost structures and improving service levels [48][50] - There is a focus on health and wellness trends, with plans to expand product offerings in better-for-you segments [25][68] Q&A Session Summary Question: Insights on European market pricing and elasticity - Management noted that the current price elasticity in Europe is around 0.7 to 0.8, which is higher than expected, and adjustments are being made to better align with consumer acceptance [34][58] Question: U.S. market growth strategy - The company is focusing on optimizing pricing and promotional strategies to regain growth, with a shift towards value offerings and better-for-you products [20][68] Question: Future investments and spending - Management confirmed that Q4 plans for investments are locked in, with a focus on continuous brand support and activation at point of sale [71][72]

Financial Data and Key Metrics Changes - The company reported a year-to-date organic net revenue growth of more than 4% for Q4, with an implied EPS growth translating to significant EBIT growth compared to the previous year [11][40] - The company faced challenges including tariffs, material destocking in the U.S., and an unprecedented heat wave in Europe, which impacted consumer confidence and volume trends [9][10] Business Line Data and Key Metrics Changes - In Europe, the chocolate business experienced a substantial price increase of about 30%, with elasticity around 0.7 to 0.8, which is higher than previously expected [6][29] - The U.S. biscuit category saw a volume decline of 4%, driven by consumer concerns about the economy and a shift towards value-seeking behavior [16][17] Market Data and Key Metrics Changes - Emerging markets experienced a volume decline of 4.7%, primarily due to hyperinflation in Argentina and strategic downsizing in India [34] - China showed low single-digit growth in Q3, indicating a new challenge for the company, while Brazil reported double-digit growth due to strong execution in biscuits and chocolate [35] Company Strategy and Development Direction - The company is focusing on optimizing pricing strategies and promotional effectiveness to drive growth, particularly in the U.S. market [20][56] - There is a clear intention to invest in emerging markets and adjacencies like cakes and pastries, with a target of high single-digit EPS growth for 2026 [13][62] Management's Comments on Operating Environment and Future Outlook - Management noted that the cocoa cost environment is expected to improve, which will positively impact future pricing strategies and profitability [12][31] - The company is adapting its product offerings and pricing architecture to better align with consumer expectations and market conditions [57][58] Other Important Information - The company is implementing a multi-year North America supply chain program aimed at improving cost structures and service levels [43][44] - There is an emphasis on continuous investment in brands and activation at the point of sale to support long-term growth [62] Q&A Session Summary Question: Insights on European market pricing and elasticity - Management indicated that the price elasticity in Europe is currently around 0.7 to 0.8, which is higher than historical norms, and adjustments are being made to address pricing gaps [28][29] Question: Path forward for U.S. growth - The U.S. market is experiencing a volume decline, but management is optimistic about returning to growth through strategic pricing and promotional adjustments [15][22] Question: Expectations for North America in Q4 - Management expects a rebound in Europe and a slight improvement in North America, driven by pricing strategies and promotional effectiveness [40][41] Question: SG&A cost reductions and future investments - Management outlined that SG&A reductions are primarily due to working media declines, but investments will increase in 2026 to support growth initiatives [46][48]

Financial Data and Key Metrics Changes - The company reaffirmed its full year 2025 organic sales growth guidance of about 5% despite facing headwinds from U.S. retailer restocking and adverse weather conditions in Europe affecting chocolate demand [9][10] - For 2025, the company anticipates a reasonable top-line growth of 4% to 5% but expects a 10% decline in EPS, which is considered acceptable given the current cocoa circumstances [6][7] Business Line Data and Key Metrics Changes - Organic sales in North America declined approximately 3.5% year over year in the first half, attributed to retailer restocking and softer underlying trends [14][20] - The company is focusing on optimizing shopping trips and maximizing brand presence, particularly for Oreo, which has seen increased penetration but decreased purchase frequency [18][20] Market Data and Key Metrics Changes - In Europe, the company experienced higher elasticities than anticipated, with current levels around 0.6 to 0.7, compared to the expected 0.4 [28][29] - The cocoa supply situation is improving, with a 7% increase in cocoa pot counts in West Africa compared to the last five-year norm, suggesting potential price reductions in the future [31][32] Company Strategy and Development Direction - The long-term strategy established in 2018 remains valid, focusing on building presence in key categories and supporting brand growth [5][6] - The company is exploring collaborations with other brands, such as Coca-Cola and Biscoff, to enhance product offerings and market presence [21][26] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending has remained stagnant over the past 24 to 30 months, leading to cautious shopping behavior [15][16] - The outlook for North America is expected to remain challenging for the next 6 to 12 months, with consumers becoming increasingly careful in their spending [20] Other Important Information - The cakes and pastries category is projected to grow from $95 billion to approximately $125 billion by 2030, with the company aiming to enhance its position in this fragmented market [52][54] - The company is maintaining a disciplined approach to M&A, focusing on smaller assets that align with its strategic goals [48][50] Q&A Session Summary Question: What is the outlook for North America in the next 6 to 12 months? - Management expects continued challenges in North America, with consumers remaining cautious and spending levels stagnant [20] Question: How does the company view current cocoa levels and supply dynamics? - The company believes current cocoa prices are unsustainable and anticipates a surplus in the market, leading to potential price reductions [30][32] Question: What is the strategy regarding M&A and share buybacks? - The company remains disciplined in M&A, focusing on smaller strategic assets, while being pragmatic about share buybacks given current stock prices [46][50]

Q1 2025 Financial Performance - Organic Net Revenue grew by 3.1%, driven by a 6.6 percentage points increase from pricing, but offset by a 3.5 percentage points decrease in volume/mix[12] - Adjusted Gross Profit decreased by 12.0%[12] - Adjusted EPS decreased by 18.3%[12] - Free Cash Flow was $0.8 billion[12] Regional Performance - Emerging Markets Organic Net Revenue grew by 3.9%[33] - Developed Markets Organic Net Revenue grew by 2.6%[33] - Europe's adjusted operating income decreased by 25.6%[42] - North America's adjusted operating income decreased by 18.0%[42] Category Performance - Chocolate Organic Net Revenue grew by 10.1%[34] - Biscuits & Baked Snacks Organic Net Revenue grew by 0.3%[34] - Gum & Candy Organic Net Revenue grew by 1.0%[34] 2025 Outlook - The company reaffirmed its 2025 outlook, expecting approximately 5% Organic Net Revenue growth and over $3 billion in Free Cash Flow[60] - Adjusted EPS growth is expected to be around -10% on a constant currency basis[60] - The company anticipates share repurchases of over $3 billion[60]