Andrea Teixeira • JPMorgan Chase & Co.

Answer

CEO Sue Nabi stated that Coty is seeing significant distribution gains in mass fragrances and that new perfume mists are creating incremental shelf space. CFO Laurent Mercier detailed the destocking plan, explaining the sell-in/sell-out gap will gradually reduce through Q1 and Q2 to become nil by Q3 fiscal '26. He also reiterated that Coty remains committed to divesting its Wella stake at the right time and for the right value.

Ask Fintool Equity Research AI

Answer

CEO Sue Nabi attributed the difference to the U.S. market being more competitive with greater exposure to indie/dupe brands. She explained the U.K. served as a test market for new strategies, like TikTok Shop, which are now being implemented for CoverGirl in the U.S. CFO Laurent Mercier detailed that the savings are intended to create headroom to manage volatility (like tariffs) and reinvest in brands, with the ultimate goal of continuing constant EBITDA margin improvement of 20-30 basis points on an ongoing basis.

Ask Fintool Equity Research AI

Answer

EVP and CFO Akhil Shrivastava confirmed that significant PRGP savings are included in the FY26 forecast, with more to come in future years from outsourcing and procurement. He noted the North America retail-to-net sales gap should compress over the full year. President and CEO Stéphane de La Faverie clarified that a low single-digit price increase is embedded in the guidance, but the strategy is nuanced, involving targeted innovation by price tier and even some strategic price reductions to reignite growth on certain products.

Ask Fintool Equity Research AI

Answer

CEO Robbert Rietbroek emphasized that the disruption was concentrated in last-mile delivery, while other segments like refill and premium water grew. He highlighted strong underlying retail health, noting that Primo Brands grew retail dollar share by 11 basis points in the first half and 48 basis points in July. He pointed to positive category trends, including growth in new buyers and trips, as indicators of strong consumer demand.

Ask Fintool Equity Research AI

Answer

CEO Robbert Rietbroek clarified that Q1 normalized organic growth was 4.2% after adjusting for the leap year, aligning with the 3-5% annual guidance. He also noted a favorable Easter timing shift into Q2. He stated the Pure Life business performed well, with 3.5% net sales growth, driven by a focus on maintaining a competitive value proposition for consumers.

Ask Fintool Equity Research AI

Answer

Interim CEO & Director Kirk Perry explained that the ultimate measure of success is 'consumers voting for us every day at the shelf,' which translates to sequential improvement in market share. He outlined his four operating priorities—leadership, strategy, execution, and structure—as the drivers to achieve this goal, reinforcing that consistent market share gains are the key metric for investors to watch.

Ask Fintool Equity Research AI

Answer

Interim CEO Kirk Perry stated that the ultimate measure of success is sequential market share improvement, reflecting consumers 'voting at the shelf.' He did not provide a specific timeline but reiterated that progress will be driven by the company's four key priorities: strengthening leadership, refining strategy, improving execution, and optimizing the operating model.

Ask Fintool Equity Research AI

Answer

CEO Thibaut Mongon acknowledged that while there is more work to do, he is encouraged by positive signs in consumer consumption, which is outpacing organic sales growth as planned. He highlighted that key U.S. platforms like Neutrogena Face Care, Aveeno Body Care, and OGX Hair Care are seeing positive consumption momentum, indicating the company's strategic actions are beginning to yield results.

Ask Fintool Equity Research AI

Answer

CEO Thibaut Mongon explained the investments are targeted price adjustments in the U.S. to hit key consumer price points and simplify promotions, which should drive volume. CFO Paul Ruh added this will cause negative value realization in the U.S. in H1 but will be offset by international pricing. He confirmed plans for modest gross margin accretion and a moderate increase in A&P investment, while still expanding the overall adjusted operating margin for the year, funded by efficiencies.

Ask Fintool Equity Research AI

Answer

Executive Thibaut Mongon pointed to specific 'green shoots' like Neutrogena regaining its #1 position in U.S. brick-and-mortar channels and increased dermatologist recommendations. Executive Paul Ruh added that while TSA exits are on track, the significant savings will come from the 'Vue Forward' program, which is on track to deliver $350 million by 2026. These savings are funding increased marketing investments, with the full margin impact expected in 2025.

Ask Fintool Equity Research AI

Answer

CEO John Fieldly confirmed promotional timing shifts would create 'puts and takes,' noting a Costco promotion moved into Q3 and the Alani Witch's Brew LTO launched earlier than last year. While declining to give specific Q3 guidance, he reiterated that the company stands by its Alani modeling call framework, with the exception of the previously mentioned outperformance on gross margin.

Ask Fintool Equity Research AI

Answer

CFO Jarrod Langhans explained that scanner data for Costco was actually up, but timing of a promotion caused a pipe fill in the prior quarter, creating noise. He reiterated that allowances and incentives accounted for a couple of percentage points of the revenue decline in Q1. He projected similar pressure in Q2, which should then flip to a two-point benefit in Q3 and Q4. He stated there was no significant destocking in the DSD network.

Ask Fintool Equity Research AI

Answer

CEO John Fieldly acknowledged some weakness in Q1 for Celsius, attributing it to cycling a very strong prior-year launch of the Essentials line. He expressed excitement for a packed innovation pipeline for the summer season and the back half of the year, which he expects to drive improvement. He noted that Alani Nu's growth is incremental and that both brands are well-positioned to capitalize on health and wellness trends.

Ask Fintool Equity Research AI

Answer

President and CEO Mark LaVigne confirmed that July 4th and Prime Day shipments were pulled forward into Q3, impacting the Q4 outlook. He stated that innovation-based pricing was taken earlier in the year and is flowing through now, fully offsetting tariff impacts. He noted some private label price movement, likely due to tariffs, and mentioned that European trends are softer than in developing markets but consistent with the U.S.

Ask Fintool Equity Research AI

Answer

Executive Mark LaVigne noted a sequential softening in battery category volume into April and described the promotional environment as stable and healthy. Executive John Drabik clarified that the 50 bps price/mix decline was driven by promotional investments in Auto Care, not batteries, where pricing was flat. Drabik then provided a Q3/Q4 outlook, expecting low single-digit declines in battery offset by low single-digit increases in auto for Q3, with stronger performance in Q4 driven by pricing actions and lower A&P spend.

Ask Fintool Equity Research AI

Answer

CEO Mark LaVigne confirmed the headwind is from elevated promotional spending to drive volume. CFO John Drabik added that advertising spend is expected to be just over 5% of sales. Regarding FX, Drabik noted a 100-150 basis point top-line drag is embedded in the Q1 outlook, and the full-year forecast will be updated later.

Ask Fintool Equity Research AI

Answer

President and CEO Rick Dierker stated that innovation remains a bedrock of growth, citing numerous successful launches. He noted that while the premium portfolio is growing faster, the value brands like Arm & Hammer are also performing very well and gaining share. Regarding pricing, Dierker confirmed they will take targeted price increases where necessary to offset tariffs after other mitigation efforts are exhausted, but it will not be a broad-based action.

Ask Fintool Equity Research AI

Answer

Executive Richard Dierker stated that HERO's consumption remains strong with 13% growth, though it is impacted by foot traffic issues at a few key retailers. He affirmed there is still significant runway for distribution point growth. On promotions, he acknowledged that while frequency is stable, there is some transitory increase in depth from competitors making SKU and size changes, which the company is monitoring.

Ask Fintool Equity Research AI

Answer

CFO Rick Dierker indicated that they anticipate inflation but aim to offset it with productivity. He noted they have hedged less than usual, believing some commodity prices may decline. On M&A, CEO Matthew Farrell reiterated that they are always looking but remain 'fussy' with strict criteria, emphasizing that the company's growth algorithm is not dependent on acquisitions. Dierker added they will continue to be selective to ensure they do the right deal.

Ask Fintool Equity Research AI

Answer

Matthew Farrell (executive) confirmed that the M&A pipeline is very active and the company is busy evaluating opportunities, acknowledging cash is building on the balance sheet. Richard Dierker (CFO and Head of Business Operations) reported that WATERPIK consumption is up and the brand was flattish in the quarter, with the full-year outlook slightly down due to Q1 performance.

Ask Fintool Equity Research AI

Answer

Chris Peterson, CEO, President & Director, stated that while it's early for Back-to-School consumer offtake, the company's sell-in and retail setup are very strong, with record fill rates and exclusivity wins. He detailed a robust innovation pipeline, highlighting the Sharpie Creative markers, the Graco SmartSense bassinet, a major Yankee Candle brand restage, the Oster Extreme Mix Blender, and strong retailer response to upcoming 2026 Outdoor & Rec products.

Ask Fintool Equity Research AI

Answer

CEO Christopher Peterson explained that the lowered market growth forecast is a precautionary measure, not a reaction to current consumption declines, as retailer inventories were stable in Q1. He stated the 125% China tariff was excluded from guidance due to its fluidity but detailed mitigation plans for the most-exposed baby gear category, including existing inventory, two price hikes totaling ~20%, and the fact that 40% of the baby business is not exposed to U.S. tariffs.

Ask Fintool Equity Research AI

Answer

CEO Christopher Peterson stated that pricing contributed about one point to Q4 core sales, mostly in international markets to offset currency devaluation. He noted more pricing is planned for Q1 to counter significant FX pressure. Regarding Mexico, which is about 4-5% of total revenue, he expressed confidence in the company's ability to grow and gain market share despite the macroeconomic environment. CFO Mark Erceg added that the full-year pricing impact in 2025 will be weighted more to the second half.

Ask Fintool Equity Research AI

Answer

CEO Christopher Peterson stated that distribution, which was a headwind of 'a couple of points' in 2024 due to exiting unprofitable businesses, is expected to become a tailwind in 2025. He noted A&P spending has increased from ~4% to nearly 5% of sales, with a long-term target of 6-7%, funded by ongoing gross margin and overhead improvements.

Ask Fintool Equity Research AI

Answer

CFO Stanley Sutula stated the productivity program will not have a material impact in the second half of 2025, with costs and benefits spread over two to three years affecting both overhead and margins. Chairman, CEO & President Noel Wallace added that investments will target innovation and technology. Regarding Europe, he noted some market softness and volume decline as consumers react to inflationary pressures, particularly rising food costs.

Ask Fintool Equity Research AI

Answer

Noel Wallace, Chairman, President and CEO, confirmed that the improvement in categories in April was reflected in shipments. He stated that the competitive environment remains constructive, with a focus on value-added innovation rather than promotions to drive a turnaround. He emphasized that the company is focused on sharpening its strategy in North America around innovation, price pack architecture, and advertising ROI, expecting improvement in the back half of the year.

Ask Fintool Equity Research AI

Answer

CEO Noel Wallace confirmed that pricing actions are being taken in Latin America and Africa to offset currency headwinds, while Europe will focus on a value-oriented strategy driven by innovation. He stated that the shift to a more volume-driven growth algorithm is underway and will be broad-based, with contributions expected from Asia, Africa, Latin America, and North America, supported by positive trends in volume market shares.

Ask Fintool Equity Research AI

Answer

Noel Wallace, Chairman, President and CEO, declined to provide quarterly guidance but expressed confidence in the underlying health of the business, stating the full-year guidance reflects their outlook. Regarding Hill's, he confirmed that increased capacity is enabling expansion into high-growth wet segments and providing flexibility to address international growth opportunities as the supply chain team optimizes the network.

Ask Fintool Equity Research AI

Answer

CEO Linda Rendle clarified that general industry destocking was not a major factor and framed the ERP project as a complex, greenfield implementation. CFO Luc Bellet detailed that retailers built more inventory than initially expected (about two weeks' worth), shifting sales from July (Q1'26) into June (Q4'25). He explained the year-over-year math, noting the higher base in FY25 contributes to the outsized negative percentage impact in FY26.

Ask Fintool Equity Research AI

Answer

CEO Linda Rendle explained that Clorox is strong in mass and club channels where consumers are shifting, and less exposed to drugstores. She used the Cleaning category as an example of serving bifurcated needs: consumers can choose premium, convenient disinfecting wipes or high-value dilutable products like Pine-Sol and bleach. She noted that the company grew share in bleach, demonstrating its ability to capture value-seeking consumers while still succeeding with premium offerings.

Ask Fintool Equity Research AI

Answer

CEO Linda Rendle stated that distribution lost during the cyberattack was fully recovered, with current levels higher than a year ago. She clarified that the distribution base is now normalized, and future gains will be driven by standard business practices like innovation, not further recovery. She also confirmed the ERP transition has not caused any timing impacts on innovation or distribution.

Ask Fintool Equity Research AI

Answer

CEO Linda Rendle stated the consumer environment is playing out as expected, with value-seeking behavior leading to shifts in pack sizes and channel preferences, but not a significant trade-down to private label. CFO Kevin Jacobsen provided an updated commodity outlook that is slightly more favorable than previous estimates. He detailed the gross margin cadence, expecting a dip in Q2 before normalizing to the full-year rate of around 44-44.5% in the second half.

Ask Fintool Equity Research AI

Answer

President, CEO & Chairman Jon Moeller reiterated that Personal Health Care is a focus area with strong organic growth potential, but P&G remains open to opportunistic M&A. CFO Andre Schulten confirmed the midpoint of the guidance range includes assumptions for both tariff mitigation and restructuring savings, with savings expected to build in the second half of the year.

Ask Fintool Equity Research AI

Answer

Executive Andre Schulten confirmed the $1B-$1.5B pre-tax figure, equating to a 140-180 basis point margin impact. He emphasized that while the aggregate number seems manageable, the impact is highly concentrated on specific SKUs and markets. He stated that all tools are on the table for mitigation, including productivity, sourcing and formulation changes, and pricing, with the specific approach varying by product and market.

Ask Fintool Equity Research AI

Answer

Andre Schulten, an executive, stated that based on current conditions, P&G has good visibility towards the lower end of the guidance ranges for both organic sales and core EPS. He also clarified that the transportation system outage was fully overcome by the team within the quarter, resulting in no net impact on quarterly results or carry-over effects.

Ask Fintool Equity Research AI

Answer

Executive Andre Schulten reiterated that the 3% to 5% guidance is a range reflecting multiple potential outcomes. His confidence in the core 85% of the business is based on its sustained track record of strong growth over the past five to six quarters, coupled with positive share trends and a robust innovation pipeline.

Ask Fintool Equity Research AI

Answer

Chairman and CEO James Quincey confirmed the fall launch of a Coca-Cola sweetened with U.S. cane sugar, noting it complements the existing portfolio. Regarding functional beverages, he referenced 'Coke with fiber' in Japan as an experiment from which they gathered valuable learnings, while emphasizing that building new consumer franchises is a long-term commitment.

Ask Fintool Equity Research AI

Answer

President and CFO John Murphy addressed the guidance, reiterating that it is early in the year and the company is being prudent amid currency volatility. Chairman and CEO James Quincey added that EMEA's volume growth was driven by Eurasia, while Western Europe was softer but in line with previous quarters, impacted by the Easter shift and macro uncertainty. He noted a focus on affordability for the upcoming summer season.

Ask Fintool Equity Research AI

Answer

CEO James Quincey explained that about half of the Q4 North American price/mix was from mix, which will moderate in 2025 as Fairlife's growth moderates pending new capacity. Regarding Mexico, he described it as a market where the system has consistently executed its total beverage company playbook, offering a broad portfolio with products and price points for everyone. He also noted that FX headwinds from markets like Mexico are factored into the 2025 guidance.

Ask Fintool Equity Research AI

Answer

Chairman and CEO James Quincey stated that any impact from a potential ban in Mexico would be minimal as the company already provides a no-sugar portfolio to schools. Regarding Q4, he suggested the implied growth is higher than calculated and emphasized that excluding high-inflation markets, the business is performing at the top end of its long-term growth algorithm.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Ramon Laguarta responded by broadening the definition of 'permissibility' to include portion control, noting that over 60% of U.S. food volume is already in smaller formats. He emphasized that the strategy involves multiple levers—including ingredients, cooking methods, and formats—to participate in on-the-go lifestyles, rather than focusing on a single approach.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Ramon Laguarta explained that consumers are increasingly focused on absolute price points, leading PepsiCo to emphasize entry-level items like smaller single-serves and smaller multipacks. He noted consumer behavior varies, with a focus on value per kilo early in the month and absolute price per unit later. He also highlighted the impact of lower traffic in convenience stores and the strategy to use meal deals to drive incidence in that channel.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Ramon Laguarta affirmed their ongoing focus on revenue management and brand investment in international markets. Regarding margins, both he and CFO Jamie Caulfield emphasized that they are managed at a total PepsiCo level. While Frito-Lay's focus is on stimulating demand, overall company margins are expanding, suggesting other segments are offsetting the pressure.

Ask Fintool Equity Research AI

Answer

President & CEO Bill Newlands stated that gaining distribution is a critical growth driver, supported by strong brands like Pacifico and new products like Sunbrew. He emphasized focusing on 'controllables,' including broadening distribution, strengthening loyalty, and optimizing price-pack architecture to meet the needs of price-sensitive consumers.

Ask Fintool Equity Research AI

Answer

CEO Bill Newlands reiterated that as the number one share gainer, the company is well-positioned to continue securing shelf space for growing brands. He highlighted that strong brand loyalty supports velocity and that a focus on price pack architecture ensures products are available at all price points for consumers.

Ask Fintool Equity Research AI

Answer

CEO William Newlands noted a channel shift among Hispanic consumers toward larger chain accounts, reflecting economic pressures. He explained that the 8.5% marketing spend still represents an increase in absolute dollars due to sales growth. CFO Garth Hankinson added that the company remains committed to top share of voice for its key brands and is not underinvesting.

Ask Fintool Equity Research AI

Answer

CEO William Newlands responded that it is too early to hypothesize on a specific tariff response but confirmed the company has modeled numerous scenarios. CFO Garth Hankinson added that the wide Q4 guidance range acknowledges the potential for downside risk from macro conditions as well as upside opportunity if those conditions improve.

Ask Fintool Equity Research AI

Answer

CEO William Newlands stated that several factors should work to their advantage, including recent improvements in trends, the potential positive impact of Fed rate cuts, and an expected normalization of Hispanic unemployment. He noted that scanner results and depletions have recently been tracking closely. Newlands clarified that Q3 and Q4 have the same number of selling days, so no impact is expected, but reminded that Q2 had one less day, which impacted results at the higher end of the historical range.

Ask Fintool Equity Research AI

Answer

SVP & CFO Mandy Fields stated she was pleased with current consumption but noted Q1 net sales will be affected by cycling last year's major growth from the Walmart expansion and Naturium's Ulta launch. Chairman and CEO Tarang Amin highlighted Rhode's rapid growth to $212M in sales with just 10 SKUs across categories, noting e.l.f.'s innovation capabilities will help broaden this assortment.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Tarang Amin stated that Q3 consumption was strong, finishing up around 12% in tracked channels. While January saw a slowdown, the company still gained 90 basis points of market share. He emphasized that the updated guidance for 14-16% growth in the second half accounts for the timing of pipeline shipments between Q3 and Q4. Regarding channels, he noted strength on Amazon and a good start at Walmart, with some pre-reset softness at Ulta and Target.

Ask Fintool Equity Research AI

Answer

CEO Gavin Hattersley reaffirmed strong share retention for core brands like Miller Lite and Coors Light. Regarding Blue Moon, he acknowledged the Q1 disruption from a pack format change was a temporary impact that provides significant long-term supply chain and cost benefits. He expressed confidence in the brand, citing positive momentum from innovations and new distribution gains expected in spring resets, with marketing spend weighted towards the remainder of the year.

Ask Fintool Equity Research AI

Answer

CEO Carla Vernon stated that unit growth was driven by velocity and a 'hero' distribution strategy, highlighting 12,000 new points of distribution in grocery and drug channels. She noted the vitamin portfolio is now narrowly focused on prenatal/postnatal care. Regarding tariffs, CFO Dave Loretta and CEO Carla Vernon explained their 3-pronged strategy, including building inventory to delay the impact to mid-Q3. They quantified the net impact at roughly 1.5 percentage points on 2025 gross margin, which they plan to offset with cost savings.

Ask Fintool Equity Research AI

Answer

CFO David Loretta stated that 2025 growth will be a blend of distribution and velocity gains, supported by innovation in diapers and skincare packaging. He projected a sustainable gross margin in the 38-39% range and positive free cash flow for 2025. Loretta also clarified that $1-2 million in residual legal costs are expected in the first half of 2025, which is why the company will continue to guide on an adjusted EBITDA basis.

Ask Fintool Equity Research AI

Answer

CFO Nathan Lowe explained the $20 million reduction in the EBITDA guide is driven entirely by lower retail volume expectations, as pricing actions are intended to be net neutral against tariff costs. CEO Scott Huckins added that Q1 retail performance was as expected, with March being stronger than January and February. He noted Q1 share gains were not from higher promotions, but Q2 will see a slight increase to support new distribution, with full-year 2025 promotions expected to be similar to 2024.

Ask Fintool Equity Research AI

Answer

President and CEO Scott Huckins explained the new approach involves force-ranking innovation to better allocate resources and expects 2025 advertising spend to be roughly consistent with 2024. CFO Nathan Lowe noted that while detailed gross margin guidance isn't provided, the EBITDA guide implies a modest margin increase. Regarding tariffs, Lowe stated the company needs to see how commodity markets settle but uses tools like longer-term supplier pricing windows, derivatives, and productivity to manage volatility.

Ask Fintool Equity Research AI

Answer

President and CEO Lance Mitchell stated that private label shares are back to 2019 levels and that the company's dual-brand model is a competitive advantage. Regarding tableware, he noted the foam decline trend has been ongoing since 2019 and is being managed with new products. CFO Scott Huckins added that foam is a minority of the tableware portfolio and that the non-foam parts of the business are outperforming their categories.

Ask Fintool Equity Research AI

Answer

Executive Rodney Sacks explained that the company sees distinct positions for its brands, with Reign focused on the performance category and Bang positioned differently, allowing them to coexist within a broader portfolio. Hilton Schlosberg added that they are confident in their own strategy and believe competitors relying on new distribution for growth will eventually hit a ceiling.

Ask Fintool Equity Research AI

Answer

Hilton Schlosberg, Vice Chairman and Co-CEO, explained it is too early to determine the net impact of the price increase on promotions and that quantifying any sales pull-forward was difficult due to a mid-October pricing cutoff and hurricane disruptions. Both Schlosberg and Rodney Sacks, Chairman and Co-CEO, expressed a view that the category slowdown has likely bottomed out, citing improving Nielsen data trends and positive macroeconomic factors.

Ask Fintool Equity Research AI

Answer

Chief Executive Officer Tim Cofer addressed both points. On coffee, he stated it is too early for a clean read on price elasticity but consumer response has been in line with expectations, and protecting profit to fund reinvestment is the priority. On energy, he highlighted the GHOST acquisition as a key part of the strategy, noting the distribution handover begins in March and KDP will add value by building ACV, display quality, and leveraging its DSD network to drive growth towards the double-digit share goal.

Ask Fintool Equity Research AI

Answer

CFO Patraic Reagan provided guidance for high single-digit revenue growth for the total company in Q1. For the full year, he projected high single-digit growth domestically and high-teens growth internationally. Regarding margins, he indicated that Q1 would be the low point for the year, with margin accretion building through Q2, Q3, and Q4 as production shifts out of China. He reiterated the long-term Mexico opportunity of at least $400 million without specifying its current size.

Ask Fintool Equity Research AI

Answer

CEO Mark Barrocas stated that while underlying Q4 demand is solid, inventory constraints on popular new products like the SLUSHi and Cafe Luxe will limit the ability to capture all potential upside. CFO Patraic Reagan added that channel inventory is clean and that on a two-year basis, inventory growth is now aligned with revenue growth, indicating a healthy, normalized position heading into the holidays.

Ask Fintool Equity Research AI

Answer

CEO Nicholas Lahanas confirmed the cost and simplicity program was a significant driver of margin expansion but declined to provide specific savings guidance. He and John Hanson, President of Pet Consumer Products, affirmed that tariff impacts will be managed through supplier negotiations and internal cost-cutting rather than pricing. Lahanas conservatively agreed that the Q1 top-line beat could be viewed as a shift from Q2.

Ask Fintool Equity Research AI