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President John Ghingo explained that while Turkey pricing and T&M initiatives met expectations, an unforeseen steep run-up in commodity costs, softer-than-expected foodservice traffic, and lagging profit recovery in the Planters business drove the miss. Interim CEO Jeffrey Ettinger expressed confidence in Hormel's portfolio, highlighting leadership in various protein categories and global brands, and stated that the top priority is to deliver both top-line and bottom-line growth.

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CEO Jim Snee confirmed the Planters recovery is on track. EVP of Retail John Ghingo added that Q2 performance exceeded expectations and that he anticipates year-over-year consumption will turn positive in late Q3, driven by advertising, promotions, and innovation. Regarding investment income, CFO Jacinth Smiley stated the company does not forecast it due to market unpredictability.

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EVP John Ghingo highlighted the resilience of the retail portfolio, citing strong growth across different brands like premium Applegate, value-oriented SPAM, and innovative Hormel Black Label Bacon. He noted flagship brands grew over 3% in consumption. CEO James Snee added that the T&M initiative supports this growth by enabling innovation and improving production efficiency. Regarding advertising, Snee confirmed a temporary pullback on Planters but reiterated the plan for a sequential ramp-up and a full-year double-digit increase in marketing spend.

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CEO James Snee explained that the top-line guidance was lowered due to headwinds in Turkey, contract manufacturing, and the Planters production disruption. However, EPS guidance was maintained because these declines are in low-margin or negative-margin businesses. Profitability is being supported by strength in the core retail brands, a rebound in the International segment, and benefits from the 'transform and modernize' initiative. For Foodservice, Snee confirmed expectations for solid, broad-based volume and sales growth, noting the segment is on track for a record year.

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Global CEO Gilberto Tomazoni attributed the strong Australian results to increased volumes and prices, primarily within the beef business, noting that other areas were stable except for a minor dip in salmon. Global CFO Guilherme Cavalcanti confirmed that the free cash flow discussion was indeed based on IFRS EBITDA.

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Steven France, President of Packaged Meats, acknowledged a cautious consumer but noted Smithfield's volume share grew 60 basis points in Q2. He explained that while private label demand is rising, Smithfield's ability to produce for this segment is a key competitive advantage. Shane Smith, President and CEO, added that favorable industry dynamics and internal efficiencies in hog production support the company's raised outlook for that segment.

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Steven France, President of Packaged Meats, acknowledged the industry-wide growth in private label but positioned it as a competitive advantage for Smithfield as a key supplier. Shane Smith, President and CEO, expressed confidence in the Hog Production outlook, citing favorable market dynamics like pork's price point versus beef and chicken, as well as internal operational improvements.

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CFO Mark Hall explained that the initial Q1 caution stemmed from a later Easter holiday, higher raw material costs, and consumer trade-down, but the company's diverse portfolio of branded and private label products performed well. Hall also noted that about half of the $400-$500 million annual CapEx is dedicated to ROI projects, with a significant portion allocated to Packaged Meats. President of Packaged Meats Steven France added that the company is seeing success by focusing on the 'lunch daypart,' growing share in bulk deli, packaged lunch meat, and portable meals, with the Smithfield Prime Fresh brand being a key growth driver.

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CFO Mark Hall attributed the prior caution to a later Easter holiday, higher raw material costs, and general consumer trade-down, noting the company's brand portfolio is a strength in this environment. Regarding lunch meat, Hall stated that about half of the $400-$500 million annual CapEx is for ROI projects, with a skew towards Packaged Meats. Steve France, President of Packaged Meats, added that the company is gaining share in lunch meat through a targeted approach, with its Prime Fresh brand being the fastest-growing in its space.

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President of Packaged Meats, Steve France, detailed volume drivers including mix optimization (converting hams to lunch meat), a strong brand portfolio, innovation, and operational efficiencies. On trade, President of Fresh Pork, Donovan Owens, acknowledged minimal disruption but emphasized the company's dynamic risk management and contingency planning. President and CEO Shane Smith added that Smithfield's flexibility, with multiple sales channels and operations in Mexico, helps mitigate global trade impacts.

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EVP & CFO Greg Cameron and EVP & COO Christopher Bohn explained that margins were impacted by unplanned outages and higher distribution costs to move product to meet customer needs. For the second half, they noted Q3 is a heavier turnaround period, which will lower production, while Q4 has a solid agricultural order book with positive pricing and demand.

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CEO Tony Will noted that the expected 3-4 million tons of urea from China is consistent with their outlook and needed by a tight global market. Regarding Russian gas, he stated that CF is following the European plan to wean off it by 2027, viewing it as a European policy matter with little U.S. influence.

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EVP Bert Frost attributed the strength to CF's flexibility in shifting production to the highest-margin products, which included significant exports. He anticipates Q4 ammonia volumes will be higher than Q3, weather permitting, for the fall application season. He noted that annual ammonia sales are typically in the 3.5 to 4 million ton range.

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President & CEO Ken Seitz clarified there has been no slowdown, with repurchases continuing at a ~$45 million per month rate. EVP & CFO Mark Thompson added that the strategy is consistent: prioritize sustaining capital, fund a narrow set of growth projects, and execute ratable share buybacks through the cycle. He noted the dividend's absolute cash outlay is stable, with per-share growth driven by a lower share count.

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President and CEO Kenneth Seitz stated there is no challenge on the demand side for phosphate, as strong demand is what's driving the high price environment. He explained that Q1 production was impacted by weather and other challenges, but planned turnarounds at the White Springs and Aurora sites in Q2 are expected to improve reliability for the second half. He expressed confidence that the company will operate within its full-year guidance range, viewing it as a 'story of two halves.'

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Mark Thompson, incoming CFO, explained that the guidance embeds a potential impact of 'a few days to a maximum of a week.' He clarified that if such a strike occurs, volumes would likely trend towards the lower end of the guidance range. Conversely, if no interruption happens, volumes would trend toward the midpoint or upper end.

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Founder, President, and CEO Ethan Brown explained the top-line strategy involves stabilizing U.S. retail by improving product discoverability with consolidated brand blocks, addressing price gaps, and expanding the brand's focus beyond animal protein replication with new products like Beyond Ground. CFO and Treasurer Lubi Kutua, along with Ethan Brown, clarified that Q2 cash consumption was inflated by approximately $19 million in non-routine payments, such as a class action settlement, and that the underlying cash burn is a key focus for reduction through aggressive cost management and margin expansion.

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CEO Ethan Brown explained that volume stabilization efforts focus on two areas: regaining distribution lost during retailers' shift from refrigerated to frozen sections, and combating consumer misperceptions with new marketing like the 'Real People, Real Results' campaign. CFO Lubi Kutua detailed the financing as a delayed draw facility with a ~4.75-year initial term, accruing 12% payable-in-kind interest. Both executives emphasized that the primary goal is achieving their EBITDA positive target by managing expenses and margins, not just chasing top-line growth.

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CEO Ethan Brown explained that favorable price elasticity in U.S. retail, where revenue grew 5.7% while volume fell only 4.5%, was due to a successful strategy of offering a clean, simple product that consumers will pay more for. He added that the conservative revenue guidance is intentionally designed to keep the team focused on the primary goal of achieving EBITDA positivity, rather than pursuing near-term revenue that could conflict with margin optimization.

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CEO Ethan Brown attributed the retail data discrepancy to a lag between sell-in (shipments) and sell-out (consumption data) due to distribution changes, expecting a true-up in Q4. Regarding international foodservice, he explained the decline was driven by challenges in a specific market and an inventory loading/timing issue with a large QSR partner from Q2 promotions.

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CEO Juan Luciano stated that the Nutrition segment's recovery is ongoing, led by strong performance in Flavors. He quantified the headwind from the Decatur East plant outage at $20-25 million per quarter, which is expected to be resolved heading into 2026. While declining to provide a specific 2026 run rate, Luciano confirmed that roughly $100 million in annualized costs from the plant issue should be eliminated, setting the segment up for continued growth.

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CEO Juan Luciano explained that the Nutrition segment's recovery is being led by strong growth in Flavors and Biotics. He quantified the headwind from the Decatur East plant outage at $20-$25 million per quarter, which he expects to be resolved heading into 2026, implying a potential annual benefit of around $100 million. He noted that while it's too early to provide a specific 2026 run rate, the removal of this cost headwind will be a significant factor.

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CEO Juan Luciano cited several factors for the expected second-half recovery: significant manufacturing improvements and self-help initiatives, growth in destination marketing, strong meal demand, and the absence of last year's negative take-or-pay contracts. CFO Monish Patolawala added that a strong forward curve for crush margins in the second half supports this outlook, contingent on biofuel policy clarification.

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Chair and CEO Juan Luciano provided a segment-by-segment breakdown, noting strong volumes but lower margins in Ag Services, margin compression in Crush, and steady performance in Carb Solutions. EVP and CFO Monish Patolawala added two key variables for the quarter: an assumption of $135 million in reinsurance proceeds and an expectation of low single-digit negative organic revenue growth for the Nutrition segment.

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President & CEO Donnie King stated the Chicken business is running efficiently, with the $100 million investment wrapping up in Q4. Group President Devin Cole confirmed the investments are driving volume, with value-added chicken growing 8.8%. CFO Curt Calaway explained that the lower free cash flow range is primarily due to working capital investments related to top-line growth and higher cattle costs, while the CapEx run-rate was already tracking toward the low end of the prior range.

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Group President Brady Stewart stated that while cattle supply is tight, record weights are partially offsetting lower headcounts. He noted signs that the industry is at or near the bottom of the liquidation cycle, with heifer retention starting. For the International segment, Group President Devin Cole attributed the record performance to strong execution of strategy, improved operational fundamentals, and a solid commercial growth plan.

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Brady Stewart, Group President of Beef and Pork, explained that leading indicators like improved pasture conditions and record cattle prices suggest the industry is at the bottom of the cattle cycle, with a rebuild expected in the future. CFO Curt Calaway clarified that while most segments will follow typical seasonality, Prepared Foods is expected to have a more balanced performance between the first and second half due to the timing of efficiency initiatives.

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CEO Donnie King attributed confidence to the multi-protein strategy, with Chicken and Prepared Foods expected to drive 10% AOI growth at the midpoint in FY25. He outlined five strategic enablers, including operational excellence and disciplined capital allocation. Wes Morris, Group President of Poultry, added that the Chicken business is fundamentally stronger due to over $500 million in operational improvements, a revamped go-to-market strategy, and a strong innovation pipeline, making the FY25 guidance robust.

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EVP & CFO Jim Gray explained that the Texture and Healthful Solutions sales outlook is supported by a reversal of price/mix headwinds and continued strong demand for higher-value clean label products. President & CEO Jim Zallie addressed the LATAM segment, acknowledging macro pressures in Brazil and Mexico but noted that some customer weakness was described as idiosyncratic and weather-related, expressing confidence in their team's ability to navigate the environment.

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EVP and CFO Jim Gray clarified the full-year LATAM sales guidance is flat, accounting for currency headwinds. He noted that in Brazil, local prices adjust to global corn values, while in Mexico, a weaker peso is generally an upside due to dollar-denominated reporting. Regarding CapEx, Gray emphasized the Indianapolis project is a one-time step-up and that spending should return to historical levels focused on reliability and high-return organic growth projects post-2026.

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President and CEO James Zallie explained that strong volume is due to strategic positioning in growing food categories and lapping softer prior-year demand. EVP and CFO Jim Gray clarified that the negative price/mix reflects the pass-through of lower corn costs, while profitability is driven by higher-value solutions. Regarding capital allocation, Gray reiterated a disciplined approach prioritizing organic investments, dividends, and share repurchases, noting the current cash surplus from working capital is temporary.

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Juan Carlos Guillermety, CEO of Spin, explained that the company is in the early stages of leveraging data for retail media and monetizing financial services. Juan Fonseca, Director of IR, highlighted that nearly 46% of OXXO sales are now identified through the Premia program, a figure that is rapidly increasing. CFO Martín Yániz confirmed that Premia members are typically heavy users, which demonstrates the program's effectiveness in driving loyalty and engagement.

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Juan Carlos Guillermety, CEO of Spin, discussed leveraging data for retail media and the early stages of financial services monetization. Director of IR Juan Fonseca highlighted the rapid growth in OXXO sales identified through the Premia program, now approaching 50%. CFO Martín Yániz confirmed that Premia users are typically heavy users, which drives loyalty and engagement.

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Jose Antonio Fernández, CEO of the Proximity and Health Division, detailed several initiatives, including expanding financial services partnerships, segmenting the value proposition, and more than doubling the retail media digital screen network. He also highlighted the profitable, low-CapEx 'OXXO Nichos' format and opportunities for overhead reduction by centralizing administrative processes. CFO Martin Arias Yaniz noted that selling expense growth was contained despite minimum wage hikes, and Juan Fonseca added that front-loading store openings also impacted operating leverage.

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CFO Martin Arias Yaniz asserted that FEMSA's M&A strategy has not changed, emphasizing that the focus has consistently been on core businesses and disciplined, smaller deals rather than large-scale acquisitions. Regarding Europe, he and another executive explained that consolidated same-store sales data is not provided because the Valora business comprises multiple distinct models (B2B, retail, foodservice), making a single metric misleading. However, CEO Jose Antonio Fernández highlighted the successful fresh food initiative in Swiss stores as a key positive project.

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CFO Martin Arias Yaniz explained that the gross margin strength is primarily driven by traditional retail fundamentals, such as commercial income from suppliers and growth in high-margin financial services, rather than the full monetization of digital platforms, which is still developing. Executive Juan Fonseca added that this includes both physical in-store marketing efforts and the early stages of digital promotions, alongside continued growth in traditional services like bill payments.

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CFO Matthew Galvanoni detailed the CapEx cadence, with the bulk of the $400M spend occurring in 2026 for a 2027 opening. President & Global CEO Fabio Sandri explained the plant will support the growing 'Just BARE' brand and will be supplied by their internal NAE production, though the business operates independently and can source externally. Sandri also addressed supply, noting that while production is up, it's in line with strong retail and foodservice demand, supported by favorable comparisons to other proteins.

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CFO Matt Galvanoni explained that the Q1 CapEx was lower due to timing related to site selection and permitting for large projects, but reaffirmed the $750 million full-year target. CEO Fabio Sandri addressed market dynamics, noting a consumer shift from foodservice to retail due to inflation, which is driving strong demand for chicken in both channels as it remains an affordable protein option.

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CEO Fabio Sandri attributed the strong demand to chicken's relative affordability and increased menu penetration in QSRs, which offset typical Q4 seasonality. He noted that flat production in the big bird category against this strong demand sustained prices. CFO Matthew Galvanoni acknowledged the strong cash position, explaining the current CapEx guidance is for sustaining projects, and hinted that larger organic growth opportunities and overall capital allocation philosophy would be detailed at the upcoming Investor Day.

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President and CEO Fabio Sandri attributed Europe's strength to a combination of rising consumer confidence, successful branded products, foodservice recovery, and restructuring benefits. For the U.S., Sandri explained that strong retail demand is offsetting foodservice traffic weakness, with chicken gaining penetration in both channels, thus supporting prices. CFO Matthew Galvanoni added that Europe's margins are approaching their target levels.

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CFO John Neppl confirmed the full-year guidance holds but expects a weaker Q3 and stronger Q4, with stronger processing results being offset by challenges in Merchandising and softness in specialty oils. CEO Greg Heckman explained that the RSO segment was impacted by lower energy demand due to biofuel policy uncertainty and customers shifting to spot purchasing amid tariff concerns.

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CFO John Neppl projected that the ongoing growth projects are expected to add approximately $2.50 to the EPS baseline, raising it from $8.50 to $11 by the end of 2026, assuming a mid-cycle environment. Regarding buybacks, he reiterated the plan to complete the remaining $800 million opportunistically within 18 months of the Viterra close, without specifying a more detailed timeline.

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CFO John Neppl clarified that the sugar JV's Q3 results were due to underperformance, while the Q4 impact reflects lost earnings post-sale. CEO Greg Heckman provided an update on Viterra approvals, noting progress in the EU, Canada, and China, and reiterated that no issues are expected to be material to the deal's economics. He stated that a recent legal appeal in Argentina was an expected part of the process and has no consequences for the post-close approval.

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CEO Jaime Muguiro explained that the additional savings primarily stem from organizational transformation and overhead headcount reductions. He expressed high confidence in the $400 million target for 2027, stating it is based on recurring initiatives like personnel reductions ($200 million) and procurement efficiencies ($150 million), not speculative negotiations.

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CEO Jaime Dominguez, former head of U.S. operations, confirmed a slow Q1 due to weather but noted that daily sales have increased sequentially each month since January. He described infrastructure spending as robust, with a solid ready-mix backlog from industrial and commercial projects like data centers. The primary weakness remains in the residential sector due to high mortgage rates.

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CFO Maher Al-Haffar and CEO Fernando Olivieri explained that the focus is on enhancing free cash flow, with 2025 being a peak year for strategic CapEx before shifting towards small-to-medium M&A. They noted growth investments offer high returns (30%+ IRRs) and that reducing leverage and interest expense remains a priority. Shareholder returns will follow as financial health improves. Executive Lucy Rodriguez clarified the U.K. one-off was a ~$10 million gain from a resolved legal case.

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Executive Maher Al-Haffar attributed the improved energy cost guidance to several factors. These include a drop in commodity prices for fuels like petcoke and coal, a strategic shift towards cheaper and lower-carbon fuels like natural gas, increased use of alternative fuels, and a reduction in the clinker factor. He noted that while electricity costs were slightly up in the first half, better comps are expected in the second half, supporting the company's confidence in the revised guidance.

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The company is encouraging shareholders to vote on the dual listing but has no visibility on the outcome. 2025 will be challenging for U.S. Beef, with tariff issues impacting margins by 1-1.5 ppt in Q2, mainly on hides. However, diversification is expected to stabilize overall margins. Australia's performance was strong due to better operating conditions and increased herd size, with future growth expected in pork. The $2 billion CapEx forecast for the year was confirmed.

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CFO Andrew Sandifer detailed that FMC has built a flexible supply chain with multiple, registered raw material sources globally, including the UK, Mexico, and India, not just China. While 2025 costs are largely locked in, the long-term strategy involves optimizing this global sourcing network and, if tariffs become certain and persistent, passing on the costs via pricing, as has been done in the past.

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CEO Pierre Brondeau clarified that the three-year plan is not back-end loaded. He expects a significant step-up in performance starting in 2026, following the 'correction year' of 2025. By 2026, FMC anticipates benefiting from both a recovery in its core business and the accelerating growth of its new products and newly established routes to market, leading to more even growth across the period.

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Luciano Pires, EVP and CFO, advised analysts to use the Brazilian real costs from the performance data sheet as a ceiling for modeling purposes. He also expressed confidence that the insurance claim related to AgroGalaxy would be recovered within the current year, though he could not specify the exact quarter.

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Jenny Wang, EVP of Commercial, acknowledged the challenges but highlighted recent improvements. She noted that local corn and soybean prices are trading at a premium, supported by a devalued Real and new bioethanol demand. This has improved farmer economics and sentiment. As of the previous week, farmer selling of future crops and purchasing of fertilizers for the next safrinha season were ahead of last year's pace, indicating a positive shift in activity.

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Executive Timothy Klein observed a slowdown in cow liquidation, which he sees as a precursor to heifer retention beginning in 2025. Executive Tang David stated that the company's priority for capital allocation is debt reduction to lower financial costs and improve leverage, suggesting M&A is not a primary focus.

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Timothy Klein, CEO of North America, confirmed that improved grass conditions are leading to lower cow slaughter and early signs of heifer retention, which is positive for future herd rebuilding. Rui Mendonca, an executive for South America, detailed that synergies with BRF are being realized across commercial, logistics, and administrative functions. He emphasized that a significant number of new market certifications are creating opportunities to develop specific, higher-value products.

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CEO Ian Marcel Craig García explained that Juntos+ active users drive approximately 2% incremental revenue and that the Juntos+ Advisor tool in Brazil has improved sales force efficiency by 4 percentage points. CFO Gerardo Celaya added that the 'Premia' loyalty program quadrupled its user base to 1.1 million in 2024 and aims for 1.3 million in 2025, highlighting its high redemption rate as a key competitive advantage.

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CEO Ruy Cunha clarified that the revised guidance was driven by inventory supply issues, not the store optimization plan. He detailed the initiative to consolidate approximately 70 stores to reduce fixed costs, with benefits expected in the second half of the fiscal year. Regarding geopolitics, Cunha stated the overall mood for Brazilian farmers is positive, as a weaker BRL and potential U.S. trade policy shifts could create favorable export conditions and commodity pricing, though he remained cautious.

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CEO Ruy Cunha clarified that the revised guidance stems from product delivery delays, not the store optimization. He explained the plan to consolidate approximately 70 stores is to enhance profitability and reduce fixed costs without majorly impacting market reach. Regarding geopolitics, Cunha stated that while cautious, potential U.S. tariff changes could be positive for Brazilian farmers, similar to 2018, by potentially boosting soy prices and export opportunities.

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CEO Ruy Cunha explained that while farmers are still delaying purchasing decisions, their concern over input availability is accelerating store visits. He noted that the input-to-grain price exchange ratio has become more favorable for farmers. Regarding suppliers, Cunha stated that a conservative credit approach was already in place across the industry due to prior farmer profitability issues and that this sentiment will likely improve as the market recovers.

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CEO Ruy Cunha explained that while farmers are delaying purchasing decisions, their concern over input availability is accelerating store visits. He noted a positive trend in the exchange ratio, with fewer bags of corn required to buy inputs. Regarding suppliers, Cunha stated that a conservative credit environment was already in place across the industry before the competitor's issues and that credit availability should improve as farmer profitability recovers.

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The executive expects Crop Care to accelerate in the second half, driven by specialty fertilizers and adjuvants, which will partially offset a decline in the higher-margin biologicals business. For Latin America, a stronger second half is anticipated, contingent on climate normalization, with the segment showing better margin resilience than the Brazil retail business.

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