Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a 9% increase in net sales, with 3% organic growth and a 3% increase in adjusted EBITDA [6][34] - In Q4, reported net sales were $369 million, a decline of 1.8% year-over-year, while organic net sales grew 3.5% [31] - Adjusted EBITDA for Q4 was $66.2 million, down 14.5% from the previous year, primarily due to an impairment charge related to the Atkins brand [33][34] Business Line Data and Key Metrics Changes - Quest brand represented nearly two-thirds of net sales in Q4, with consumption growth of 11% and net sales growth of 13% for the fiscal year [17][34] - Atkins experienced a consumption decline of 12% in Q4 and 10% for the full year, largely due to distribution losses [22][34] - Owen brand saw a 14% consumption growth in Q4 and 34% for the full year, despite recent product quality issues [25][34] Market Data and Key Metrics Changes - The nutritional snacking category grew by 13% in fiscal year 2025, reflecting a generational shift towards high protein, low sugar, and low carb products [7][16] - Quest's salty snacks portfolio outperformed with consumption growth of 31% in Q4 and 34% for the full year [18] - The company noted that approximately 70% of Americans are actively seeking more protein and fewer carbs in their diets [7] Company Strategy and Development Direction - The company aims to be a leader in high protein, low sugar, and low carb food and beverage, focusing on innovation and expanding distribution [7][10] - There is a strategic shift to enhance the presence of Quest and Owen while reshaping Atkins to focus on core assortments [14][23] - The company is investing in R&D and marketing to support growth and improve productivity to combat inflation [10][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflation and distribution losses affecting Atkins, but expressed confidence in overcoming these issues [12][15] - The company expects fiscal year 2026 net sales growth to range from -2% to +2%, with a stronger second half anticipated [41][42] - Management emphasized the importance of agility and speed in responding to competition and market trends [66][68] Other Important Information - The company repaid $150 million of its term loan debt in fiscal year 2025 and repurchased approximately $51 million of its shares [37][38] - An impairment charge of $60.9 million was recorded for the Atkins brand due to its performance and updated revenue projections [33][34] - The company plans to invest $30 million to $40 million in capital expenditures in fiscal year 2026 to support growth [46][47] Q&A Session Summary Question: Impact of Owen's product quality issues on future sales - Management confirmed that product quality issues related to pea protein have been addressed and expressed confidence in Owen's growth trajectory moving forward [52][54][56] Question: Competition in the high protein, low sugar market - Management acknowledged the competitive landscape but emphasized their strong position due to innovation and agile operations [64][66] Question: Guidance for fiscal year 2026 and expected growth rates - Management indicated that Quest is expected to grow in the high single digits, while Owen will see double-digit growth, with Atkins projected to decline [80][82]