Financial Data and Key Metrics Changes - The company achieved a revenue growth of 7.1% and 3.8% on a constant currency basis in Q3 2025, marking its best performance as a public company [25] - Adjusted EBITDA was positive at $3.1 million, an increase of $8.2 million compared to Q3 2024 [25][26] - Gross margin remained flat at 29.8% compared to the previous year, with improvements in absorption and supply chain efficiencies contributing to a 60 basis point increase [25][26] Business Line Data and Key Metrics Changes - The Europe and International segment saw a revenue growth of 12% driven by an 8% volume increase, with an EBITDA margin of 18%, up 700 basis points year-over-year [9][10] - North America experienced a revenue decline of 10.1%, primarily due to a change in sourcing strategy at a large customer, impacting adjusted EBITDA negatively by $4.5 million [27] - Greater China reported a constant currency revenue growth of 28.7%, exceeding expectations, with strong performance in both food service and retail channels [27][24] Market Data and Key Metrics Changes - The food service channel in Europe and International grew by 28% year-on-year, while retail growth accelerated from 4% to 11% in Q3 [11][12] - In Germany, food service growth exceeded 45% for five consecutive quarters, contributing to a 70 basis point increase in retail market share for plant-based milk [13][14] - The North American food service business, excluding the largest customer, grew by 11% in the quarter, indicating positive momentum [20] Company Strategy and Development Direction - The company is reaffirming its 2025 guidance, expecting constant currency revenue growth of approximately flat to 1% and adjusted EBITDA in the range of $5 million to $15 million [7][30] - A refreshed growth playbook is being executed, focusing on driving relevance, overcoming barriers to conversion, and increasing availability, particularly targeting Gen Z consumers [11][16] - The company is exploring strategic options for its Greater China segment, including a potential carve-out to accelerate growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing execution of the growth strategy, noting that profitability is a marker of progress rather than an endpoint [4][6] - The company anticipates continued challenges in North America but believes that the underlying consumer trends are similar to those in Europe, suggesting potential for future growth [57][60] - Management emphasized a commitment to continuous improvement in cost efficiency across supply chain and SG&A, aiming for sustainable profitability [61] Other Important Information - The company reported a free cash flow net cash outflow of $5 million, which is $22 million better than the previous year, driven by improvements in working capital [28] - Recent transactions aimed at improving capital structure included reducing the revolving credit facility and issuing Nordic bonds, expected to save approximately $5 million in annualized interest expense [29] Q&A Session Summary Question: Thoughts on 2026 sales growth considering current headwinds - Management indicated that while it is early to discuss 2026, they see solid continuity in Europe and expect gradual progress in North America as one-time headwinds are lapped [33][36] Question: Acceleration of oat milk category growth in Europe - Management attributed the acceleration to the experience and taste strategy, which is driving consumer relevance and category demand [39][40] Question: Effective ways to drive customer trial - Management highlighted the role of barista market developers in creating relevant experiences and driving trial through innovative product offerings [45][46] Question: Plans for household penetration in the U.S. - Management expressed confidence in driving strong growth in the U.S. by leveraging similar consumer trends observed in Europe, focusing on taste and flavor [56][58] Question: North America profitability and margin evolution - Management noted that while there have been challenges, they expect underlying growth to lead to improved margins as they continue to drive consumer demand [64][66] Question: Competitive environment in Europe regarding other plant-based varieties - Management emphasized that the oat milk category is still in its infancy with significant growth potential, and they are focused on creating new consumer demand rather than competing on price [68][70]