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President and CEO Rob Vitale confirmed the analyst's summary of fiscal 2026 factors was accurate, stating that normalizing the Foodservice business for Avian Influenza impacts would align it with their growth algorithm. Regarding private label cereal, Vitale noted the trend was puzzling but suggested that deep promotions on branded items might be narrowing the price gap. CFO Matt Mainer added that Post's private label business has a significant concentration with Walmart, which could also be a contributing factor to the trend.

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An executive, likely COO Jeff Zadoks, stated that the Foodservice EBITDA run-rate is likely higher than the previous $105 million baseline but requires a period of stability to determine a new normal. He confirmed the objective of plant closures is to maintain profitability, but noted that sustained category declines of 4-5% would make this challenging, expressing hope for a return to more modest 1-2% declines long-term.

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COO Jeff Zadoks confirmed that Post is well-positioned to consider M&A of any size, emphasizing that valuation and synergy potential are the key drivers, not recent buybacks. Regarding the pet food supply chain, Zadoks stated the primary focus is on insourcing and executing the Nutrish relaunch, with further optimization being a longer-term consideration.

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President and CEO Rob Vitale explained that Post aggressively manages out low-margin business and has significant flexibility to optimize its manufacturing network before volume declines would negatively impact leverage. He stated that unlike other reports, Post has not seen erosion in private label penetration in its categories, noting that private label has actually grown in cereal. He anticipates a reversion to normalized volume trends as the economic environment stabilizes.

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CEO Stéfan Descheemaeker acknowledged past optimism on the ERP implementation and an unanticipated Q1 inventory excess. He explained that Q2 was impacted by the hottest June on record in Western Europe but noted the company gained volume market share. Descheemaeker stated the wider guidance range accounts for potential heatwave risks. CFO Ruben Baldew added that the midpoint of H2 guidance implies about 0.5% growth, reflecting a prudent stance to avoid further guidance revisions, especially given the weak start to Q3 due to weather.

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CEO Stéfan Descheemaeker explained the forecast is based on ~1% category growth, with the remainder from market share gains, mix, and a net positive impact from a more measured ERP rollout. CFO Ruben Baldew added that while volume remains a key focus, some pricing may be necessary later in the year to offset inflation, but the current trend is volume-led growth with some price pressure.

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CEO Darcy Horn Davenport explained that it is too early to provide specific guidance for fiscal 2026 as the company is in its planning process. She noted that forecasting is more complex now that they are not capacity-constrained but affirmed confidence in the long-term business opportunity, citing strong brand metrics and retailer support, while acknowledging uncertainties like promotion performance and tariffs.

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President and CEO Darcy Davenport stated that category fundamentals remain strong with significant macro tailwinds and low household penetration. She noted the ready-to-drink (RTD) sub-category grew 19%. While the company is modeling various scenarios due to consumer sentiment, they do not anticipate a dramatic negative impact on their category's robust growth.

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President and CEO Darcy Davenport noted that while the new ad campaign is very new, early metrics like website traffic (up 80%) and online search are strong. She explained that top-to-top discussions are leading to immediate gains in getting a 'fair share' of the shelf, which she estimated is currently about half of what it should be based on market share. Longer-term, these conversations focus on expanding the entire convenient nutrition category within stores.

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President and CEO Darcy Davenport explained that in-market tests met or exceeded lift expectations and provided insights to improve creative content before the national launch. CFO Paul Rode added that fiscal 2025 production volumes are expected to increase in the mid-to-high teens, and the current network can support growth into late fiscal 2026 or 2027, pushing out the need for new lines.

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CEO Steven Oakland explained that commodity-driven price increases are the same in dollar terms for both private and branded goods, which makes the percentage increase higher for private label but keeps the shelf price gap healthy. He noted TreeHouse performed well in its key categories. Regarding M&A, Oakland confirmed they are actively investing in high-performing categories like coffee and tea, citing the Harris Teas acquisition as a way to accelerate strategy, and noted their balance sheet is an advantage.

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EVP and CFO Patrick O'Donnell attributed the volume slowdown to the timing of broth facility ramp-up benefits in Q4 and broader category deceleration. Chairman, CEO and President Steven Oakland addressed the industry outlook, stating that while challenges exist, TreeHouse is using this period to reset, focus on controllable factors like supply chain efficiency, and take a conservative volume stance to improve execution and profitability for when the market normalizes.

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CEO Steve Oakland attributed the weaker outlook to a significant and rapid deceleration in consumer demand, particularly in the mass channel, which turned negative in Q3 and worsened in October. He stated the company will focus on controllable factors like supply chain savings and cash flow. Oakland confirmed TreeHouse is seeing share gains in key categories like cookies, dough, and pretzels, but noted this is occurring within a shrinking overall market.

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CEO Carlos Abrams-Rivera stated that the board is urgently evaluating strategic options to unlock long-term shareholder value. He assured that any potential actions would align with the company's established financial discipline but declined to comment on specifics.

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CEO Carlos Abrams-Rivera responded that the company is choosing to 'play offense with discipline' by prioritizing investments in marketing, R&D, and technology. He highlighted that the key difference now is the scaling of their 'brand growth system' to 40% of the business, which provides greater confidence in identifying and funding the right opportunities. Executive Andre Maciel added that the new guidance allows for an accelerated marketing spend step-up to approximately 4.8% of revenue and includes investments for product renovations.

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Chairman, President & CEO Michele Buck stated that a reset is unnecessary due to consistent brand and technology investments and current business momentum. She highlighted incoming CEO Kirk's extensive CPG experience at Pepsi. SVP & CFO Steve Voskuil added that the elasticity assumption of roughly one-to-one is based on exhaustive modeling and is slightly more favorable than historical trends due to the portfolio's breadth.

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Chairman, President & CEO Michele Buck stated that she does not see a need for a business reset, citing consistent investment, top-line momentum, and profit recovery plans. She highlighted new CEO Kirk's CPG experience and consumer-centric focus. SVP & CFO Steve Voskuil added that elasticity assumptions are based on exhaustive modeling and are slightly more favorable than historical trends due to the breadth of the portfolio.

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Chairman, President & CEO Michele Buck stated she does not see a need for a business reset, citing consistent investment in brands, technology, and strong top-line momentum. She highlighted incoming CEO Kirk's CPG experience as key. SVP & CFO Steve Voskuil added that elasticity assumptions are based on exhaustive modeling and are slightly more favorable than historical trends due to the breadth of the portfolio.

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SVP and CFO Steve Voskuil confirmed Hershey still sees a path to 2026 earnings growth, though it is now 'narrower and more challenging.' CEO Michele Buck noted 'green shoots' in instant consumables from incremental merchandising and expects overall market share to be neutral to up in the second half.

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Chairman & CEO Dirk Van de Put highlighted a global balance, with strong performance in Europe and emerging markets offsetting continued weakness in North America, where consumer anxiety is high. CFO Luca Zaramella detailed North American plans, including selective pricing increases, enhanced productivity, cost controls, and a focus on alternate channels, while noting the company's guidance does not assume a category rebound.

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CEO Dirk Van de Put highlighted a balanced global performance, with resilient European markets and strong growth in emerging markets offsetting continued weakness in North America. CFO Luca Zaramella detailed the North American strategy, which includes incremental pricing, protecting key consumer price points, enhancing productivity, and driving growth in alternate channels like club and dollar stores. Zaramella confirmed the full-year guidance does not assume a significant rebound in U.S. consumer sentiment.

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CEO Dirk Van de Put highlighted a positive start to the year, citing successful price negotiations in Europe's chocolate business and strong performance in emerging markets like China and Brazil, which offset softness in North America. CFO Luca Zaramella reaffirmed the 2025 guidance, noting that strong pricing execution and a successful Easter season are key positives, while softer U.S. consumer sentiment and retailer destocking present challenges.

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CEO Dirk Van de Put stated the strategy is to protect the chocolate category's health and market share through strong revenue growth management (RGM), continued brand investment, and cost discipline, while acknowledging that more pricing may be needed if cocoa costs remain elevated. He noted Europe's consumer is stable and the business is performing well. CFO Luca Zaramella added that the 2025 EPS decline reflects unprecedented cocoa costs, with Q1 being the most pressured. He emphasized that the company is positioned for EPS growth in 2026 regardless of cocoa price movements.

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CEO Dirk Van de Put expressed satisfaction with Q3's strong top line and positive volume/mix, noting the business remains healthy. He outlined a long-term strategy for chocolate focused on category health, market share, and protecting key price points through robust Revenue Growth Management (RGM). CFO Luca Zaramella characterized the Q4 EPS pressure as an anomaly, caused by locking in cocoa costs at peak prices without the benefit of new pricing or cost measures that will be implemented in 2025. He reiterated that a path to EPS growth in 2025 is difficult without a material drop in cocoa prices or more benign elasticities.

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President & CEO Sean Connolly stated that the challenges are not structural. He explained that consumers have been responsive to investments, citing previous volume growth. He attributed the temporary margin compression to the confluence of a sixth consecutive year of high inflation and necessary investments to drive volume. Connolly outlined a clear path to future margin expansion through productivity, eventual inflation relief, supply chain resiliency, targeted pricing, and a new AI-driven efficiency initiative.

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CEO Sean Connolly stated that official fiscal '26 guidance will be provided in July, citing the dynamic macro environment. He confirmed known factors are in the base but highlighted that inflation, tariffs, and consumer sentiment remain wildcards. Connolly explained the Grocery & Snacks shipment gap was due to the timing of seasonal holiday shipments, which fell more in Q2 this year versus Q3 last year, normalizing over a six-month view.

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EVP & CFO Marcos Gabriel explained that the Q2 EBIT outperformance was driven by two main factors: a timing shift in stock-based compensation that was a headwind in Q1 and a tailwind in Q2, and strong execution of CCI and SG&A streamlining initiatives. On tariffs, Gabriel stated the majority of the mitigation comes from sourcing optimization and CCI savings, with surgical pricing being a smaller, residual component. Chairman, President & CEO Brendan Foley added that this targeted pricing is not expected to impede the company's strong volume momentum.

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EVP and CFO Marcos Gabriel explained the decline was primarily due to timing-related items, including a shift of stock-based compensation expense from Q2 into Q1 and front-loaded investments in marketing and technology. He noted that normalizing for the stock comp shift, operating profit would have been flat. Chairman, President and CEO Brendan Foley and CFO Marcos Gabriel both expressed confidence in the full-year guidance, citing strong underlying sales performance, expected gross margin expansion, and the reversal of these Q1 timing headwinds in subsequent quarters.

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CEO Brendan Foley attributed the Q4 strength to increased brand marketing, innovation, expanded distribution, and effective price gap management, highlighting a particularly successful holiday season. He expects momentum to continue via more brand investment, new products, and packaging renovations. CFO Marcos Gabriel specified that fiscal 2025 reinvestment will focus on technology, including ERP implementation and building new AI and machine learning capabilities.

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President and CEO Brendan Foley responded that the company is making the right progress and its programs, including price gap management, brand marketing, and innovation, are delivering the expected growth. He noted that while they are confident in their plans, the guidance remains appropriate given the dynamic consumer environment, challenges in China, and QSR uncertainty. On the second point, Foley confirmed that customer plans are performing as expected with some improvement, particularly in the Flavors business in the Americas, driven by high-growth innovators and branded foodservice.

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CEO Brendan Foley highlighted strong consumer volume and outperformance in Flavor Solutions. CFO Marcos Gabriel attributed the EBIT beat to SG&A savings, split between stock-based compensation timing and CCI/streamlining initiatives. Gabriel confirmed H2 growth will be higher and Q4-weighted. On tariffs, he stated mitigation is mostly from sourcing and CCI, with surgical pricing as a smaller, residual component to protect volume momentum.

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CFO Kofi Bruce identified several factors as temporary pressures on margin. These include the multi-year investment in fresh pet food which is expected to become profitable at scale, the near-term drag from tariffs, and stranded costs from the Yoplait divestiture that will phase out by fiscal 2027.

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CFO Kofi Bruce addressed the concern by identifying several factors he views as temporary rather than structural. These include the multi-year investment in fresh pet food, which is expected to become profitable at scale; the timing drag from tariffs that the company expects to mitigate over time; and stranded costs from the Yoplait divestiture that will conclude in fiscal 2027.

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CEO Jeffrey Harmening explained that due to a challenging consumer environment, fiscal '26 will be a significant reinvestment year. He stated the company will use HMM savings and the 53rd week to fund these efforts. The focus will be on correcting value propositions, particularly in snacks, while also increasing marketing spend and launching key new products, with some of these actions beginning in Q4 '25.

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CEO Jeffrey Harmening explained that due to a challenging consumer environment, the company will reinvest HMM savings and the 53rd week into growth initiatives. He cited the success of Blue Buffalo and Pillsbury, where sharpening value and then boosting marketing and innovation proved effective. For fiscal '26, the focus will be on improving value in snacks, increasing marketing spend, and launching significant new products.

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CFO Tucker Marshall explained the change in outlook was driven by a $0.30 investment in marketing for Cafe Bustelo and Uncrustables, a $0.20 negative impact from the Sweet Baked Snacks segment, and a newly factored-in $0.25 impact from tariffs. He affirmed the company believes its coffee elasticity assumption of 0.5 on average is prudent, though it will be higher in Q1.

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CFO Tucker Marshall confirmed the math and attributed the expected Q4 improvement primarily to the pet portfolio's recovery from prior disruptions and a better-than-expected outlook for the coffee portfolio. Marshall explained the $60 million guidance revision was driven by the $20 million sales miss in Q3 and a lowered Q4 forecast for Hostess of approximately $20 million.

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CFO Tucker Marshall confirmed that the expected Q4 comparable sales improvement is primarily driven by the Pet portfolio's recovery from disruptions and a better-than-expected outlook for Coffee. Marshall explained the full-year guidance revision of approximately $60 million was due to the Q3 sales miss and a reduced Q4 forecast for the Hostess brand.

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CFO Tucker Marshall explained that the Q3 flat sales forecast is due to lapping strong prior-year comps in pet food, assessing the impact of a second coffee price increase, reduced co-manufacturing sales, and a planned reduction in Sweet Baked Snacks. For Hostess, Marshall confirmed the guidance implies a low single-digit decline in the second half, with sequential improvement driven by enhanced execution and lapping easier comparables.

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CFO Tucker Marshall explained that the flat Q3 sales forecast is due to lapping a second round of coffee pricing, a strong prior-year comparison in pet food, reduced co-manufacturing sales, and a call-down in Sweet Baked Snacks, offset by growth in frozen handhelds and spreads. He confirmed the Hostess guidance implies a low single-digit decline in the second half, driven by improved execution and lapping easier comparables.

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President, CEO & Director Mick Beekhuizen explained that the Snacks division's underperformance was approximately two-thirds due to category deterioration and one-third from in-market performance. He detailed plans to reignite brands like Goldfish through strategic promotions and price pack architecture rather than broad price cuts. For fiscal 2026, he anticipates the Snacks recovery will extend into that year, likely requiring marketing spend to increase towards the higher end of the 9-10% of sales range and facing a headwind from normalized incentive compensation.

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CEO Mick Beekhuizen explained the guidance revision was driven by a slower-than-expected recovery in the broader snacking categories, which impacted the top-line forecast. He detailed that the EBIT reduction stems from this top-line miss and a lower Snacks margin outlook, partially offset by accelerated cost savings. CFO Carrie Anderson added that while promotional investment was higher in Q2, it will be less of a headwind in the second half, and the new guidance provides sufficient room for competitive support.

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CEO Mark Clouse clarified that the back-half improvement is not a 'hockey stick' but a modest step-up driven by easier prior-year comparisons, the organic contribution from Rao's, and a robust innovation and investment plan. He stated that promotional levels are in line with historical norms and the company does not anticipate needing disproportionate price reductions, instead focusing on winning through marketing and innovation, particularly for cookies and pretzels where early signs of share stabilization are encouraging.

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CEO Mark Clouse explained that the Meals & Beverages division is well-positioned for current in-home consumption trends. He emphasized that soup volume growth was achieved without sacrificing margins and that while broth share gains were aided by a competitor's supply issue, it provided an opportunity to attract new households. Clouse expressed confidence in the industry's normalization, citing positive category data and noting that recent pressure on the Snacks business was more share-related than a sign of category weakness.

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CEO Gary Pilnick stated the health trend is an acceleration of a long-term shift towards value and nutrition, which the company was prepared for. CFO David McKinstray confirmed the largest margin impact from inventory right-sizing will occur in Q2, leading to a more stabilized gross margin in the second half of the year.

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Chairman and CEO Gary Pilnick explained that the health and wellness trend has been accelerating for some time, and the company was prepared to pivot with new foods and campaigns. CFO Dave McKinstry confirmed that Q2 will see the largest impact from manufacturing adjustments to align with revised demand, but inventory levels should be right-sized by the second half of the year, leading to more stabilized gross margins.

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CFO David McKinstray explained that the Q4 gross margin performance was broadly in line with prior guidance. He noted that ongoing Price Pack Architecture (PPA) initiatives contributed to the dynamic and expects volume to normalize in the back half of the next year as the company fully laps this activity.

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Chairman and CEO Gary Pilnick outlined a multi-pronged approach for Special K, including lapping prior SKU rationalization, improving in-store execution, and launching a new 'Special for a Reason' campaign to better connect with consumers. Regarding smaller pack sizes under the PPA strategy, he stated that the supply chain is well-equipped to handle them and that the company likes the economics across the PPA portfolio.

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Gary Pilnick, Chairman and CEO, acknowledged Special K's underperformance but noted its share decline has stabilized. He outlined a 2025 plan involving lapping SKU rationalization, improving in-store execution, and launching a new 'Special for a Reason' campaign. Regarding smaller packs, he stated the supply chain is 'set up well' to handle them and that the company 'likes the economics' of its PPA strategy.

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CEO Mike Smith explained that contract negotiations haven't started and that while potato costs are lower, other input cost inflation and potential tariffs will be factors. He also clarified the AlixPartners review is comprehensive, covering a value creation plan (costs, sales, working capital) and a long-term growth strategy. Executive Bernadette Madarieta added that raw potatoes constitute only about one-third of COGS.

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President and CEO Thomas Werner stated that in the current environment, the company believes a go-forward EBITDA margin is in the 19% to 20% range. CFO Bernadette Madarieta added that they will aim to expand margins by pricing to inflation over the long term. Regarding competitors, Werner speculated they are evaluating the current market dynamics and that actions may be forthcoming, while Madarieta characterized the situation as a short-to-medium-term imbalance.

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President and CEO Tom Werner stated that the pricing environment and contract season outcome were in line with expectations, with positive Q1 results aided by better product mix and carryover pricing. Regarding competitors, Werner noted he has no insight into their specific plans but acknowledged that the challenging environment might cause others to pause capacity additions. He emphasized that Lamb Weston's actions are focused on managing its own business for the long term.

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CFO Bruce Wacha explained that the Green Giant impairment charge was driven by accounting rules and business performance, not as an indicator of expected value in a potential sale. He and CEO Casey Keller clarified the 53rd week's benefit is smaller than a typical calendar week, representing about three days of sales. CEO Casey Keller shared his view that the industry's headwinds are a temporary consumer reaction to elevated prices, which the company will eventually lap, rather than a permanent structural change in behavior.

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CFO Bruce Wacha attributed some of the variance to timing shifts in foodservice, while confirming Q3 retailer destocking. CEO Casey Keller noted that productivity efforts, SG&A cuts, and restructuring are underway to manage costs. Keller explained the cautious Q4 outlook is prudent due to the slower-than-expected recovery in consumer behavior.

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CEO Wendy Davidson confirmed that the revised guidance includes caution due to past execution challenges and the broader marketplace volatility. CFO Lee Boyce added that they expect a sequential improvement in EBITDA and gross margin through the year, with a material step-up in Q4. He affirmed the company expects to pivot to positive organic sales growth starting in the third quarter.

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Steven Cahillane, Chairman, President and CEO, provided a candid assessment, stating that promotional lifts were "not great" at the start of the year as consumers were still undergoing "price discovery." However, he noted that the situation is improving, and the returns on promotional investments are now getting sequentially better week by week. This positive trend contributes to the company's confidence for the second half of the year and into 2025.

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Vice Chairman and CFO Amit Banati acknowledged that lower volume was a headwind but stated it was more than offset by improved supply chain performance. Chairman, President and CEO Steven Cahillane added that consumers are in the 'seventh or eighth inning' of adjusting to new price points, and Kellanova's own RGM initiatives and return to effective merchandising are helping to drive volume recovery sooner than the broader market.

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