Financial Data and Key Metrics Changes - The company delivered positive results in fiscal year 2025, reflecting top line growth supported by strong consumer demand and bottom line growth driven by disciplined cost management [2][3] - Approximately $700 million of debt was repaid in fiscal year 2025, with plans to pay down an additional $500 million in each of the next two fiscal years [17] Business Line Data and Key Metrics Changes - The company is focusing on key growth platforms including Uncrustables, Cafe Bustelo, Meow Mix, Milk Bone, and Hostess Brands to drive organic growth [3][4] - A comprehensive plan is being executed to stabilize the Hostess brand and return it to growth [3] Market Data and Key Metrics Changes - The company remains well positioned to navigate dynamic input costs, including green coffee volatility, through its strong portfolio [4] - Approximately 90% of U.S. homes have a product from the company's portfolio, indicating a strong market presence [14] Company Strategy and Development Direction - The company is amplifying successful strategies and evolving its approach where needed, with a focus on driving organic growth and embedding a transformation mindset [3] - There is a commitment to consumer-led innovation and leveraging data and insights to anticipate consumer needs [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and the strength of its brand portfolio, anticipating continued growth and shareholder value [4][24] - The external environment is expected to remain dynamic, but the company is excited about future opportunities [4] Other Important Information - The company recognized the retirement of board member Alex Schumate, highlighting his contributions over 16 years [5] - The annual meeting included voting on three management proposals, all of which were approved by shareholders [11][12] Q&A Session Summary Question: When do you anticipate the Hostess debt will be repaid? - The company plans to pay down approximately $500 million of debt annually in each of the next two fiscal years, aiming for a leverage ratio at or below three times net debt to adjusted EBITDA by the end of fiscal year 2027 [17] Question: How do you manage hyper politicization of publicly traded corporations? - The company approaches each decision with responsibility, considering alignment with values and potential for positive change, prioritizing the needs of consumers and shareholders [18][19] Question: What effect will global tariffs have on the company? - The company is monitoring trade policy and tariffs, particularly regarding coffee, which cannot be grown in the U.S., and anticipates a 25% adjusted earnings per share impact for fiscal year 2026 due to tariffs [20][21] Question: Did my shares count in the voting? - All shares are treated equally for voting purposes, as the company stopped differentiating long-term shares in 2022 [22]

Financial Data and Key Metrics Changes - The company delivered positive results in FY 2025, reflecting top line growth supported by strong consumer demand and bottom line growth driven by disciplined cost management [2][3] - Approximately $700 million of debt was repaid in FY 2025, with plans to pay down an additional $500 million in each of the next two fiscal years [17] Business Line Data and Key Metrics Changes - The company is focusing on key growth platforms including Uncrustables, Cafe Bustelo, Meow Mix, Milk Bone, and Hostess Brands to drive organic growth [3][4] - A comprehensive plan is being executed to stabilize the Hostess brand and return it to growth [3] Market Data and Key Metrics Changes - The company remains well positioned to navigate dynamic input costs, including green coffee volatility, through its strong portfolio [4] - Approximately 90% of U.S. homes have a product from the company's portfolio, indicating a strong market presence [14] Company Strategy and Development Direction - The company is amplifying successful strategies and evolving its approach where necessary, with a focus on driving organic growth and embedding a transformation mindset [3] - There is a commitment to consumer-led innovation and leveraging data and insights to anticipate consumer needs [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a dynamic environment and highlighted the strength of its brand portfolio [4] - The company anticipates a leverage ratio at or below three times net debt to adjusted EBITDA by the end of FY 2027, providing financial flexibility for capital deployment [17] Other Important Information - Alex Schumate, a long-serving board member, is retiring, and his contributions were acknowledged [5][6] - The company plans to publicly announce final voting results on or before August 19, 2025 [12] Q&A Session Summary Question: When do you anticipate the Hostess debt will be repaid? - The company plans to pay down approximately $500 million of debt annually in each of the next two fiscal years, aiming for a leverage ratio at or below three times net debt to adjusted EBITDA by the end of FY 2027 [17] Question: How do you manage issues related to the hyper politicization of publicly traded corporations? - The company approaches each decision with responsibility, considering alignment with values and potential for positive change, while prioritizing business operations and stakeholder interests [18][19] Question: What effect will global tariffs have on the company? - The company is monitoring trade policy and tariffs, particularly regarding coffee, which cannot be grown in the U.S., and anticipates a 25% adjusted earnings per share impact for FY 2026 due to tariffs [20][21] Question: Did my shares count in the voting? - All shares are treated equally for voting purposes, as the company stopped treating long-term shares differently in 2022 [22][23]

Financial Data and Key Metrics Changes - The company expects adjusted earnings per share (EPS) to be lower year over year at the midpoint, with a guidance range of $9, impacted by $0.80 from coffee inflation and $0.25 from tariffs [8][10][60] - Free cash flow for FY 2025 was reported at $817 million, approximately $100 million below expectations, primarily due to green coffee inflation and higher inventory balances [99] Business Line Data and Key Metrics Changes - The Sweet Baked Snacks segment is expected to see a decline in segment profit, contributing an additional $0.20 impact to EPS guidance [10] - The coffee segment is projected to have around 20% net pricing factored into the FY 2026 outlook, with a negative 10% volume impact due to price elasticity [13][35] Market Data and Key Metrics Changes - The company has observed a strong performance in the coffee portfolio, particularly with brands like Cafe Bustelo and Dunkin', which have stabilized due to normalized pricing [43] - The pet portfolio experienced a $20 million impact from inventory destocking at certain retailers, but overall momentum remains strong [93] Company Strategy and Development Direction - The company is focusing on optimizing its portfolio and investing in core brands like Donuts and Cupcakes to drive growth [20][21] - A strategic shift has been made to strengthen the core brands and improve execution through dedicated sales forces and streamlined operations [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for cautious guidance due to external factors impacting profitability, including coffee inflation and tariffs [10][60] - The company remains optimistic about future growth opportunities, particularly through key growth platforms and brand building efforts [102] Other Important Information - The long-term growth rate for the Sweet Baked Snacks portfolio has been revised from 4% to 3%, reflecting a more conservative outlook based on category performance [31] - The company plans to address tariff impacts through pricing strategies and cost management efforts [53] Q&A Session Summary Question: Impact of higher green coffee costs on EPS growth - Management confirmed that higher green coffee costs and tariffs have significantly impacted EPS guidance, leading to a more subdued outlook [8][10] Question: Details on Hostess SKU and display rationalizations - Management emphasized the focus on core brands like Donuts and Cupcakes, indicating a need to optimize the portfolio for growth [19][20] Question: Pricing strategy for coffee segment - The company is implementing pricing across the entire coffee portfolio, with a significant focus on green coffee pricing [35] Question: Expectations for Sweet Baked Snacks performance - Management expects improvement in the Sweet Baked Snacks portfolio in the back half of the year due to stabilization efforts and easier comparisons [36][38] Question: Free cash flow guidance for FY 2026 - The company anticipates free cash flow of $875 million for FY 2026, driven by lower capital expenditures and effective working capital management [99][100]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) guidance for fiscal year 2026 at the midpoint of $9, which reflects a decline year-over-year when excluding impacts from coffee inflation and tariffs [10][32] - The adjusted EPS was impacted by $0.80 from green coffee inflation and $0.25 from tariffs, indicating a cautious outlook for the upcoming fiscal year [10][32] Business Line Data and Key Metrics Changes - The Sweet Baked Snacks segment is expected to see a decline in segment profit on a comparable basis, contributing an additional $0.20 impact to the adjusted EPS [11] - The company is focusing on core brands like Donuts and Cupcakes for growth, emphasizing the need for innovation and marketing investments in these areas [20][22] Market Data and Key Metrics Changes - The coffee segment is experiencing a net pricing increase of around 20% for fiscal year 2026, with a negative volume impact of approximately 10% due to price elasticity of demand [14][37] - The away-from-home coffee business is expected to see high single-digit pricing increases, indicating a strong focus on recovering costs in this segment [29] Company Strategy and Development Direction - The company is committed to investing in key growth platforms, particularly around brands like Cafe Bustelo and Uncrustables, to support long-term growth [10][102] - A strategic focus on optimizing the portfolio and enhancing brand building efforts is emphasized, particularly in the Sweet Baked Snacks and coffee segments [22][102] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the importance of ongoing marketing investments to support growth platforms and indicated a cautious approach to guidance due to external factors impacting profitability [11][62] - The company remains optimistic about stabilizing the Hostess brand and believes that focusing on core products will drive future growth [25][80] Other Important Information - The company reported free cash flow of $817 million for fiscal year 2025, which was below expectations due to higher inventory balances and green coffee inflation [99] - Fiscal year 2026 free cash flow guidance is set at $875 million, with expectations of improved management of working capital and lower capital expenditures [99] Q&A Session Summary Question: Impact of higher green coffee costs on EPS growth - Management confirmed that higher green coffee costs and tariffs have significantly impacted the EPS outlook, leading to a more subdued forecast for fiscal year 2026 [10][32] Question: Details on SKU and display rationalizations for Hostess - Management indicated a focus on core brands like Donuts and Cupcakes, emphasizing the need for clarity and optimization in the product portfolio [20][22] Question: Pricing strategy for the coffee segment - The company is implementing pricing across the entire coffee portfolio, with a significant focus on recovering costs associated with green coffee inflation and tariffs [37] Question: Long-term growth outlook for Hostess - The long-term growth rate for the Sweet Baked Snacks portfolio has been revised from 4% to 3%, reflecting a more cautious outlook based on category performance [32] Question: Free cash flow guidance and debt management - Management outlined that the anticipated free cash flow for fiscal year 2026 will be used for debt paydown and dividend payments, with a combination of generated cash and excess cash from the balance sheet [99]

Financial Data and Key Metrics Changes - The company reported a total net sales decline of 3% in the fourth quarter, with comparable net sales decreasing by 1% when excluding divestitures and foreign currency impacts [33][34] - Adjusted earnings per share for the fourth quarter was $2.31, a decrease of 13% compared to the prior year [36] - Free cash flow for the fourth quarter was $299 million, slightly up from $298 million in the prior year, with full-year free cash flow reaching $817 million, an increase of $174 million [42][43] Business Line Data and Key Metrics Changes - The Uncrustables brand achieved approximately $920 million in net sales, growing over $125 million in fiscal year 2025, driven by advertising and distribution gains [7][8] - The Cafe Bustelo brand grew net sales by 19% in the US retail coffee portfolio, ending fiscal year 2025 with approximately $400 million in net sales [9] - The Sweet Baked Snacks segment saw a significant decline in net sales, decreasing by 26% versus the prior year, with a 72% drop in segment profit [40][41] Market Data and Key Metrics Changes - In the US retail coffee segment, net sales increased by 11%, primarily due to higher net pricing for Folgers and Cafe Bustelo [36] - The US retail pet foods segment experienced a 13% decline in net sales, attributed to unexpected retailer inventory headwinds [20][38] - International and away-from-home net sales grew by 4%, driven by strong performance in the away-from-home business [22][41] Company Strategy and Development Direction - The company aims to stabilize and refocus the Sweet Baked Snacks segment for sustainable growth, with a long-term net sales growth expectation of 3% [12][33] - Strategic priorities for fiscal year 2026 include accelerating organic growth by investing in key platforms and embedding transformation in everyday operations [25][26] - The company anticipates that key platforms, including Uncrustables and Cafe Bustelo, will deliver over 80% of the company's growth over the next five years [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic operating environment, including inflationary pressures and evolving consumer behavior, which necessitates cautious guidance for fiscal year 2026 [26][45] - The company expects full-year net sales to increase by 2% to 4%, with comparable net sales anticipated to grow approximately 4.5% at the midpoint of the guidance range [27][45] - Management expressed confidence in the company's strategy and ability to navigate challenges while focusing on long-term growth and shareholder value [30][51] Other Important Information - The company recognized significant impairment charges totaling $980 million related to the Sweet Baked Snacks segment and Hostess brand [32] - Capital expenditures for the year were $394 million, representing 4.5% of net sales, with a target of approximately 3.5% of net sales in the long term [43][44] - The company plans to prioritize debt reduction, aiming to pay down approximately $500 million of debt annually over the next two years [44] Q&A Session Summary Question: What are the expectations for the Sweet Baked Snacks segment? - Management anticipates low single-digit declines in comparable net sales for the Sweet Baked Snacks segment as they work to stabilize the Hostess brand [46] Question: How is the company addressing inflationary pressures? - The company is implementing price increases to recover costs associated with rising green coffee prices and other inflationary pressures [18][49] Question: What is the outlook for free cash flow? - The company projects free cash flow of approximately $875 million at the midpoint of adjusted earnings per share guidance [50]