Financial Data and Key Metrics Changes - Organic net sales decreased by 1%, primarily due to a 2% decline in consumption, with retailers building inventory in snacks ahead of promotional activities [7][8] - Adjusted EBIT decreased by 11% to $383 million, and adjusted EPS decreased by 13% to $0.77 [29] - Net sales were $2.7 billion, a decrease of 3%, with organic net sales down 1% due to unfavorable volume and mix [28][29] Business Line Data and Key Metrics Changes - Meals and Beverages segment reported a 4% decrease in net sales, with organic net sales down 2%, driven by declines in U.S. soup and other products [32] - Snacks segment reported a 2% decrease in net sales, with organic net sales down 1%, primarily due to lower sales in Snyder's of Hanover pretzels and Cape Cod potato chips [34] - Leadership brands in meals and beverages held or grew share for the ninth consecutive quarter, while snacks saw mixed performance with some brands gaining share [11][12] Market Data and Key Metrics Changes - Total in-market consumption was down 2%, but leadership brands' consumption was down only 1%, maintaining share for eight consecutive quarters [8][11] - Broth consumption grew for the ninth straight quarter, driven by increased household penetration and buy rates [13] - The overall soup portfolio lagged the category on share, with cooking varieties performing well while eating soups faced pressure [12][14] Company Strategy and Development Direction - The company is focused on mitigating cost pressures while maintaining marketing support for brands, emphasizing consumer-led innovation and brand activations [9][10] - The acquisition of a 49% interest in La Regina is aimed at securing high-quality ingredients for Rao's sauces and enhancing growth potential [16][17] - The company is committed to crafting high-quality food at the right value and investing in omnichannel execution and innovation [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a dynamic operating environment and reiterated fiscal 2026 guidance, including expected tariff impacts [9][36] - The company is focused on evolving consumer needs and maintaining strong connections with consumers through brand activations and innovation [10][63] - Management expressed confidence in the strength of leadership brands and the ability to navigate short-term challenges while building long-term shareholder value [37] Other Important Information - The company achieved approximately $15 million in new cost savings, bringing total savings to $160 million towards a target of $375 million by fiscal 2028 [30] - The gross impact of tariffs on Q1 adjusted EPS was $0.14, with a net impact of $0.04 [32] Q&A Session Summary Question: Details on the La Regina acquisition - The acquisition supports the growth of Rao's by securing supply and enhancing the partnership with the Romano family, with a purchase price of $286 million for 49% [39][41][42] Question: Conviction in snack segment stabilization - Management expects stabilization in the snack segment in the second half of the fiscal year, with ongoing focus on innovation and value [49][51][55] Question: Impact of mega trends on salty snacks - Management is focused on evolving consumer needs and believes premiumization and health trends will benefit their brands, despite some competitive pressures [59][63] Question: Pricing strategy for eating soups - Management is aware of the need to balance pricing with value, particularly in the eating soup category, and is taking selective actions to remain competitive [66][70] Question: Implications of La Regina deal on top-line momentum - The acquisition is expected to enhance margins and provide flexibility for investments in innovation and strategy, supporting top-line growth [75][78][80]