Financial Data and Key Metrics Changes - Fourth quarter consolidated net sales were $2.2 billion, with adjusted EBITDA of $425 million, representing a 12% increase in sales driven by the acquisition of Eighth Avenue [13][14] - Excluding the acquisition, net sales declined due to lower pet food and cereal volumes, partially offset by avian influenza-driven pricing and egg volume growth [14] - Adjusted EBITDA for the consumer brands segment decreased 8% versus the prior year, while adjusted EBITDA for foodservice increased 50% [15][16] Business Line Data and Key Metrics Changes - Consumer brands net sales, excluding Eighth Avenue, decreased 13%, with cereal volumes down 8% and pet volumes down 13% [14][15] - Foodservice net sales increased 20%, driven by an 11% volume increase and avian influenza-driven pricing [15] - Refrigerated retail net sales were flat, with volumes, excluding PPI impact, falling 4% [16] Market Data and Key Metrics Changes - The U.K. cereal category showed improvement, with Weetabix's net sales increasing 4% year-over-year, although overall volumes decreased by 3% [16] - The pet food category faced challenges, with Nutrich brand adjustments expected to improve performance by mid-fiscal year [9][48] Company Strategy and Development Direction - The company aims to focus on cost reduction and profitable brand investments in retail while expecting volume growth in foodservice [7][10] - Management is reviewing M&A opportunities while also considering share buybacks as a capital allocation strategy [8][22] - The company plans to make targeted investments in innovation across various categories, including cereal and refrigerated retail [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating regulatory changes and consumer sentiment challenges, highlighting the resilience of their diversified portfolio [5][6] - The outlook for FY 2026 includes expectations for increased free cash flow and continued volume growth in foodservice [8][17] - Management anticipates a more normalized environment in cold chain businesses and targeted investments to support volume growth [12] Other Important Information - The company repurchased 6.4 million shares in fiscal 2025, with an additional 1 million shares bought back post-quarter [16][17] - Net leverage at the end of the fiscal year was 4.4 times, remaining flat compared to the beginning of the year [17] Q&A Session Summary Question: Industry volume challenges and capital allocation decisions - Management acknowledged industry volume challenges and indicated a more thoughtful approach to M&A versus share buybacks, focusing on risk-return perspectives [20][22] Question: Cost reduction actions in cereal category - Management noted that while larger cost reduction actions have been taken, there are still opportunities for line optimization [23][24] Question: Normalized growth outlook for segments - Management indicated that the PCB legacy business is expected to be flat, while other segments align with growth algorithms [28] Question: Performance in refrigerated retail - Management expects high teens EBITDA margins in refrigerated retail, with seasonal fluctuations impacting performance [33] Question: Innovation investments in 2026 - Management plans to invest in brand innovation across categories, including new product lines in cereal and pet food [39] Question: Demand for value-added products in foodservice - Management expressed confidence in sustained demand for value-added products due to operational efficiencies and customer stickiness [41][42] Question: Key moving parts in pet segment - Management highlighted the impact of private label losses and expected recovery in the pet segment by mid-fiscal year [48] Question: Pricing rationality in cereal category - Management noted competitive pressure and promotional activities affecting pricing dynamics in the cereal category [49] Question: M&A environment and opportunities - Management remains optimistic about M&A opportunities but noted reluctance from counterparties due to current multiples [68]