Q2 2025 Financial Performance - Revenue from continuing operations reached $191.5 million, a 13% increase year-over-year[16] - Operating income was $10.5 million, a significant 438% increase year-over-year[16] - Adjusted EBITDA from continuing operations increased by 14% to $22.7 million[16] - Adjusted earnings per share from continuing operations doubled, reaching $0.04[16] Fruit Snacks Growth and Capacity - Fruit snacks revenue experienced substantial growth, driving the need for additional capacity[18, 19] - Sales growth of fruit snacks was +42% (Q3 2024 vs Q3 2023) and +11% (Q2 2025 vs Q3 2024)[19] - The company is investing $25 million in new fruit snacks capacity, expected to increase production capacity by approximately 25% in 2026[43] 2025 Outlook - Revenue outlook raised to $805-$815 million, representing an 11%-13% growth compared to the previous year[34, 35] - Adjusted EBITDA outlook reaffirmed at $99-$103 million, indicating a 12%-16% growth[34, 35] - The company is targeting a year-end net leverage of 2.5x[34, 40] Capital Allocation - The company returned $1 million to shareholders through the repurchase of 163,000 shares in Q2[42] - $24 million remains available under the existing share repurchase authorization[42]

Financial Data and Key Metrics Changes - For fiscal year 2025, organic net sales decreased by 2%, adjusted operating profit and adjusted diluted EPS were down 7% in constant currency, reflecting a decision to increase investments in response to consumer behavior and market volatility [4][46] - The fourth quarter reported net sales were $4.6 billion, down 3%, with organic net sales also down 3% from the prior year [34][46] - Adjusted operating profit for the fourth quarter was $622 million, down 22% in constant currency, and adjusted diluted EPS totaled $0.74, down 27% in constant currency [35][46] Business Line Data and Key Metrics Changes - North America Retail's fourth quarter organic net sales were down 7%, lagging Nielsen measured U.S. retail sales by approximately three points [37] - North America Pet segment saw a 3% increase in organic net sales driven by higher volume, outperforming retail sales by roughly three points [39] - North America Foodservice organic net sales decreased by 1% in the quarter, while the International segment posted a 9% increase in organic net sales driven by strong growth in Brazil and distributor markets [42][44] Market Data and Key Metrics Changes - North America Retail faced challenges with a 3% decline in organic net sales for the full year, driven by lower volume and unfavorable price mix [38] - The International segment's full year results rounded to flat, with growth in distributor markets offset by declines in China [44] - The North America Pet segment showed modest organic net sales growth for the full year, with dollar share growth in dog feeding [40] Company Strategy and Development Direction - The company aims to restore volume-driven organic sales growth in fiscal 2026 by investing in consumer value, product news, and innovation [3][55] - Key priorities for fiscal 2026 include returning North America Retail to volume growth, accelerating North America Pet growth, and driving efficiency to fund these investments [11][22] - The company plans to leverage its Remarkable Experience framework to assess brands and tailor investments accordingly [12][15] Management's Comments on Operating Environment and Future Outlook - Management anticipates a volatile operating environment in fiscal 2026, with consumers remaining cautious and seeking value amid economic uncertainty [10][11] - The company expects organic sales growth to improve in fiscal 2026, driven by stronger competitiveness and volume outpacing price mix [49] - Input cost inflation and tariff impacts are expected to be headwinds, but the company plans to mitigate these through various strategies [50][51] Other Important Information - The company returned $2.5 billion to shareholders in fiscal 2025 through dividends and net share repurchases [10][48] - A global transformation initiative is expected to generate $100 million in cost savings, which will be reinvested in growth [31][33] - The company plans to launch a new line of fresh pet food, "Love Made Fresh," which is projected to capture significant market share in the growing fresh pet food segment [27][28] Q&A Session Summary Question: What are the expectations for organic sales growth in fiscal 2026? - The company expects organic net sales to range between down 1% and up 1%, with adjusted operating profit and diluted earnings per share expected to decline by 10% to 15% in constant currency [53] Question: How will the company address input cost inflation and tariffs? - The company anticipates input cost inflation of roughly 3% and additional risks from tariffs, but is working to mitigate these impacts through product reformulation and strategic revenue management [50][51] Question: What are the key priorities for fiscal 2026? - The company has set three clear priorities: returning North America Retail to volume growth, accelerating North America Pet growth, and driving efficiency to support these investments [11][22]

Core Insights - Unilever ranks sixth in global snacks sales and is the leader in the ice cream category, holding 20% of retail value sales worldwide [2] - A demerger of Unilever's ice cream business is planned by the end of the 2025 financial year, which will impact the group's overall earnings figures starting in 2024 [2] Company Profile Overview - The "Unilever Group in Snacks" company profile provides a strategic analysis of the company's performance in the snacks industry, including regional and category shares, brand portfolio, new product developments, market strategies, competitive challenges, and future prospects [3] - The report covers various product categories including Confectionery, Ice Cream, Savoury Snacks, Sweet Biscuits, Snack Bars, and Fruit Snacks, along with market sizes, company shares, brand shares, and distribution data [4] Market Insights - The report aims to provide a detailed understanding of the snacks market, identify growth sectors, and analyze factors driving change [7] - It includes five-year forecasts to assess the predicted development of the market, focusing on competitive positioning and exposure to future growth [7]