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Shane Smith, President and CEO, and Steven France, President of Packaged Meats, explained that cost efficiencies, SKU rationalization, automation, and formula-based pricing in their private label business help mitigate inflation. CFO Mark Hall clarified that a $15 million Q2 mark-to-market adjustment on hedges relates to future periods and that strong underlying business performance justifies the raised full-year outlook for hog production.

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CFO Mark Hall attributed the sales growth outlook to market price appreciation and modest volume growth. CEO Shane Smith explained that while the hog industry is returning to profitability, Smithfield's breakeven guidance of -$50M to +$50M is appropriate due to macro conditions, despite significant internal cost structure improvements from farm rationalization and genetic changeovers.

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CEO Rory Byrne responded that while supply disruptions are real and expected to persist into Q4, the industry has a history of self-correcting quickly. He expressed confidence that the company can adjust variables for the coming year to maintain financial performance. On the tariff front, Byrne stated that Dole continues to believe its sector is not the intended target and has heard public statements from the U.S. administration suggesting tropical products will ultimately be exempted, likely as part of future trade deals with source countries.

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CFO David Hass confirmed that of the direct delivery channel's weakness, approximately $10 million was from dispensers and $6 million from the office coffee service wind-down, leaving a residual $13 million decline from integration-related service disruptions. For Q3, Hass anticipates the direct delivery business will see a slight year-over-year decline but improve sequentially, with the retail business showing strength. He expressed confidence in a return to growth in Q4.

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CFO Tracey Joubert reiterated that shipments outpaced retail sales by 800,000 hectoliters in the first half, compared to 1.1 million in the prior year. She explained that the resulting 300,000 hectoliter timing difference is expected to reverse in the second half, primarily in Q3, as the company aligns shipments with consumption, which is a key component of the volume deleverage dynamic.

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Group President Brady Stewart explained the beef cycle has been prolonged by drought, leading to forecasting challenges. CFO Curt Calaway added that the impairment was triggered by a narrow fair value cushion and rising cattle costs increasing the unit's carrying value. On Prepared Foods, Stewart expressed confidence in managing costs through strong brands and innovation, noting that protein has lower elasticity and consumer behavior has not materially changed in 2025.

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CEO Donnie King and Group President Brady Stewart detailed that the logistics overhaul will simplify a complex network, generating $200 million in annual savings over 3-5 years, primarily benefiting the Poultry and Prepared Foods segments. Regarding Prepared Foods, Stewart highlighted that performance is driven by a strong management system, brand leadership, and a robust innovation pipeline, with CEO Donnie King adding that the segment has a clear path to delivering margins above 10%.

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Kyle Narron, Group President of Prepared Foods, affirmed his confidence in the current portfolio, citing iconic brands and a strong innovation pipeline. CEO Donnie King addressed tariffs, noting the primary concern for Mexico is pork, and the company's strategy involves finding alternative markets. Brady Stewart and Wes Morris added that the volumes impacted are manageable within their global supply chain.

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CFO Todd Cunfer confirmed the shipment shift occurred and was reflected in strong July sales. Regarding the CapEx reduction, he explained it's a combination of both factors. While slower demand allows for the delay of Ennis Phase 3, he stressed that significant operational efficiency gains and new technology are what make it possible, giving them confidence in their existing ~$1.5 billion of installed capacity. CEO Billy Cyr added that yield and throughput improvements are roughly a year ahead of schedule.

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CFO Todd Comfort confirmed a shipment shift of $3-4 million from June into July. On CapEx, he explained the reduction is a combination of slower demand and significant efficiency gains. The delay of Ennis Phase 3 is the largest component, made possible by substantial improvements in Overall Equipment Effectiveness (OEE) and new technologies. CEO Billy Cyr added that yield and throughput improvements are roughly a year ahead of schedule.

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Chairman, CEO & President Noel Wallace attributed Hill's outperformance to its consistent strategy focusing on high-end therapeutic products, strong veterinarian advocacy, and targeted R&D in growth areas like wet food, cat food, and small dog formulas. CFO Stanley Sutula clarified that the year-over-year negative impact from the private label exit will be around 80-90 basis points in Q3 and Q4, slightly higher than the 60 basis points seen in Q2.

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President & Global CEO Fabio Sandri explained that Mexico's Q2 strength was driven by a strong live market due to supply reductions from smaller, biosecurity-challenged players. He noted that while FX was a headwind on revenue, it benefited imported grain costs. On capital allocation, Sandri stated the philosophy hasn't changed; with M&A multiples high, the company is pursuing organic growth but returned cash to shareholders as the balance sheet became inefficiently under-levered. CFO Matthew Galvanoni added that the FX headwind is expected to neutralize in Q3.

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CEO Fabio Sandri explained that Pilgrim's diversified portfolio, with two-thirds in more stable case-ready and small bird segments, mutes some commodity upside. This strategy provides stability and protects the downside, even if it means not fully capturing peak commodity prices. CFO Matthew Galvanoni provided 2025 guidance of $65M-$75M for net interest expense, ~$440M for D&A, and $130M-$135M per quarter for SG&A.

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President and CEO Fabio Sandri explained that strong Small Bird pricing is directly linked to significant growth in the retail deli segment. He noted that as consumers seek value, they are substituting away from foodservice to convenient and affordable options like rotisserie chickens, which drives demand for Small Birds in a market with tightening supply.

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EVP & Global CFO Andre Maciel clarified that the $9.3 billion non-cash impairment charge was triggered solely by a sustained decline in the company's stock price, which impacted the carrying value of intangible assets. He noted this risk was previously disclosed and does not alter the company's strategic direction or view of its underlying value.

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Chairman, President & CEO Michele Buck expressed increased optimism for a tariff exemption, citing the administration's understanding that cocoa is sourced externally. Regarding Halloween, she stated the shipment timing shift is not uncommon and that retailers are planning for another strong season, partly driven by social media trends like 'summerween'.

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Chairman, President & CEO Michele Buck expressed increased optimism for a tariff exemption, citing public comments from government officials who understand the sourcing constraints of cocoa. Regarding Halloween, she stated the shipment shift is not uncommon and that retailers are excited to set the category early, partly driven by social media trends like 'Summerween'.

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Chairman, President & CEO Michele Buck expressed increased optimism about a cocoa tariff exemption, noting that the administration seems to understand the sourcing constraints and has made public comments to that effect. Regarding Halloween, she stated the shipment shift is not uncommon and that retailers are excited to set the category early, partly driven by the 'Summerween' social media trend, leading to a strong outlook for the season.

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SVP and CFO Steve Voskuil explained the decision was based on transparency amid high uncertainty and unfinalized mitigation plans, with an update planned for mid-year. Executive Anoori Naughton clarified that H2 revenue growth is expected to be in line with the long-term 2% to 4% target.

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Chairman & CEO Dirk Van de Put explained the cautious guidance stems from monitoring chocolate price elasticity in Europe following a heatwave and uncertainty around the U.S. consumer. CFO Luca Zaramella added that cocoa market fundamentals are improving, with lower demand and a promising crop outlook for 2026. He noted the company took advantage of a recent price dip and that lower cocoa butter costs provide a material benefit.

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CEO Dirk Van de Put explained that the unchanged guidance reflects caution around potential chocolate elasticity in Europe following a heatwave and persistent consumer weakness in the U.S. CFO Luca Zaramella added that cocoa market fundamentals are improving, with easing demand and a promising crop outlook. He noted that cocoa butter ratios have declined dramatically, providing a material cost benefit that the company has taken advantage of.

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CFO Luca Zaramella noted that while Q1 elasticity was favorable, more significant pricing took effect in Q2, which will be a more accurate measure. CEO Dirk Van de Put explained that the destocking occurred mainly in food and mass channels, where retailers' centralized ordering systems manage back-room stock levels, a factor that the DSD execution model does not fully control.

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CFO Luca Zaramella clarified that 2024's EPS base benefited from a favorable cocoa pipeline relative to the market, which will not repeat in 2025. He explained the path back to higher EPS levels depends on future cocoa prices and the company's corresponding pricing actions. He reiterated a firm commitment to delivering EPS growth in 2026, either by taking more price if cocoa stays high or by realizing higher earnings if cocoa prices fall.

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CFO Luca Zaramella confirmed his comment on the 2025 EPS outlook was on a like-for-like basis and did not include the modest dilution from the JDE Peet's transaction. Regarding Europe, he stated that while there was some pipeline building for back-to-school, the overall impact was not material to the quarter's results.

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CFO Andre Schulten clarified that while recent trade news reduced the headline tariff number, the details remain uncertain. He cautioned that any reduction in tariffs would likely be offset by lower pricing, resulting in a neutral impact. President, CEO & Chairman Jon Moeller added that complexities like USMCA exemptions and potential retaliatory tariffs create further uncertainty.

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President & CEO Mike Smith acknowledged that FY26 margins will be below the normalized range due to customer support in a competitive environment and strategic investments. He expressed confidence in the category's attractiveness and highlighted the new $250M cost savings program as a path back to target margins. On working capital, Smith noted progress in Q4 from stronger volumes and pointed to reduced acres and investments in integrated planning capabilities as key drivers for future inventory improvements.

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President and CEO Thomas Werner explained that in Europe, a better-than-expected potato crop made it difficult to pass through inflation, while in Asia, the market remains competitive as the company works to regain business lost during its ERP transition. He also acknowledged disappointing production inefficiencies that impacted gross margins, which are being addressed. CFO Bernadette Madarieta added that increased capacity in Asia is making it more of an export market.

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President and CEO Tom Werner positioned the production cuts as a short-term measure, expressing confidence that restaurant traffic will rebound and the company's modernized asset base will drive future strength. CFO Bernadette Madarieta clarified that the additional SG&A reduction beyond the restructuring plan savings is primarily attributable to people-related costs.

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Chairman and CEO James Quincey provided a breakdown of the region's strong performance. He noted that Europe saw positive volume growth from a resilient consumer, Africa grew volumes despite tough comparisons, and Eurasia also grew by emphasizing the local nature of the business. He summarized it as a good performance across all three components of the EMEA group.

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Chairman and CEO Ramon Laguarta declined to provide specific quarterly details. He reiterated his broader outlook that total PepsiCo is on a path to return to the low end of its long-term top-line algorithm in the 'next few quarters,' driven by the combined performance of a strong international business and sequential improvement in North America.

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EVP & CFO David Marberger detailed that the 4% inflation is primarily driven by double-digit inflation in animal proteins, along with costs in corrugated materials, labor, and warehousing. Regarding the dividend, Marberger reaffirmed Conagra's commitment, stating that the fiscal 2026 cash flow forecast supports all capital investments, a $700 million debt paydown, and the current dividend payout. He characterized the year as a transitory investment period.

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EVP & CFO Garth Hankinson credited the company's multi-year hedging policy for smoothing currency impacts. He noted they increased their peso hedge position to over 80% for the year to lock in favorable rates, and while some opportunity remains, the impact will be less material going forward due to these actions.

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CFO Garth Hankinson explained their robust hedging policy, noting they are now over 80% hedged on the peso for the current fiscal year after layering in additional hedges. He stated that while there is still some opportunity, the potential FX impact is less material now than it was earlier in the year.

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EVP & CFO Marcos Gabriel clarified the $90 million tariff exposure represents about 2% of global COGS, derived from a blended tariff rate on imported raw materials. Chairman, President & CEO Brendan Foley detailed the Flavor Solutions dynamics, citing headwinds from volume softness among large CPG customers, which are being partially offset by tailwinds from wins with high-growth innovators in health and wellness categories. He also noted QSR strength in the Americas and APAC, contrasted with softness in EMEA due to geopolitical boycotts.

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Chairman, President and CEO Brendan Foley clarified that an incremental, targeted promotion on seasonal recipe mixes (chili, gravy) drove some of the Q1 pricing impact in the Americas. He expects Americas pricing to be stable going forward, with the total Consumer segment price outlook remaining flat for the year. Regarding the shipment versus consumption gap, Foley described it as a typical Q1 dynamic following a strong holiday season, further influenced by the lack of early Easter shipments this year and slightly higher slotting spend for new innovations.

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CEO Brendan Foley explained the guidance is a prudent, volume-driven plan with minimal pricing. The low end of the range accounts for weakness in China's consumer market and QSR softness in EMEA, while the high end reflects strength in Americas and EMEA consumer volumes. He noted the outlook is consistent with their Investor Day thinking and expects continued strength in the EMEA consumer business, with a gradual recovery in the EMEA Flavor Solutions segment.

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EVP and CFO Mike Smith explained that while Q4 gross margin is expected to be sequentially higher than Q3, the year-over-year comparison is affected by a normalizing Flavor Solutions mix and planned supply chain investments. Incoming CFO Marcos Gabriel added that negative pricing in the Consumer segment in Q4 is another factor. On China, President and CEO Brendan Foley stated they expect the environment to remain challenged and are not in a position to predict the impact of stimulus, noting past actions did not materially impact their business.

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CFO Marcos Gabriel explained the $90M tariff exposure represents a blended rate on imported raw materials, equating to about 2% of global COGS. CEO Brendan Foley detailed Flavor Solutions dynamics, citing headwinds from soft volumes at large CPG customers offset by wins with high-growth innovators in health and wellness. He also noted QSR strength in the Americas and APAC, contrasted with softness in EMEA due to geopolitical boycotts.

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CEO Jeffrey Harmening explained that Pet segment inventory levels are healthy but that quarter-to-quarter lumpiness is normal due to the high proportion of volatile e-commerce sales. He confirmed a three-point inventory build in Q4 but did not predict its reversal timing. He added that the core Pet business has returned to stability and slight growth, with strong performance in cat food and advertising, while work continues on the Wilderness and treats brands.

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Chairman & CEO Jeffrey Harmening answered both questions, stating that while Pet inventory levels are healthy, the timing of any reversal is hard to predict due to the inherent volatility of its large e-commerce business. Regarding the underlying business, he expressed encouragement that the Pet segment has stabilized, returned to slight growth, and held market share, citing strong performance in its cat business and Tiki Cat integration, while noting areas like Wilderness and treats still require work.

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CEO Jeffrey Harmening detailed a multi-pronged approach for fruit snacks, involving value, innovation, and marketing, similar to the successful turnaround of Blue Buffalo. For bars, he expressed confidence in a rebound driven by innovation. For the smaller salty snacks business, he noted the need for both a value adjustment and innovation around 'bold flavors'.

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CEO Jeffrey Harmening explained the fruit snacks plan mirrors the Blue Buffalo playbook: get value in range to compete with private label, then drive growth with innovation and marketing. For bars, he expressed confidence in a rebound despite a tough quarterly comparison. For salty snacks, he noted the plan involves both a value play and introducing bolder flavors to meet consumer demand.

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CFO Tucker Marshall clarified that pricing for Uncrustables is in the low-single digits, while the away-from-home business will see high-single-digit pricing. He explained the reduction in the Hostess long-term growth algorithm from 4% to 3% reflects a more conservative outlook for the category's growth.

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CEO Mark Smucker indicated that further coffee pricing is expected in the first half of the next fiscal year, timed with when higher-cost green coffee hits inventory. CFO Tucker Marshall linked the Hostess impairment to the significant reduction in the current year's sales outlook from $1.4 billion to $1.2 billion, but reiterated that the company has not walked away from its 4% long-term growth target for the segment.

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CEO Mark Smucker indicated that additional coffee pricing is expected in the first half of the next fiscal year as higher-cost inventory is recognized. CFO Tucker Marshall explained the impairment charge was necessitated by recent underperformance, with the full-year Hostess sales outlook dropping from $1.4 billion to $1.2 billion. He stated the company is not abandoning its long-term 4% growth target for the segment but is currently focused on stabilization.

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CFO Tucker Marshall attributed the EPS guidance adjustments to an initial reduction in top-line outlook and coffee inflation, followed by an increase due to a strong Q2 gross margin beat. CEO Mark Smucker stated that coffee is a pass-through category and the company will responsibly manage costs and pricing, using all available levers to mitigate consumer impact while navigating the speculative commodity market.

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CFO Tucker Marshall explained the initial EPS guidance reduction was due to a lower top-line outlook and coffee inflation, while the recent increase to a $9.90 midpoint was driven by locking in the gross margin beat from Q2. CEO Mark Smucker noted the coffee market is speculative, with Arabica prices at a 10-year high. He affirmed the company will responsibly manage the pass-through category, using all available levers to avoid excessive price increases while passing on cost changes.

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President, CEO & Director Mick Beekhuizen attributed the category drag to deteriorating consumer confidence and the discretionary nature of snacks, suggesting that improved consumer sentiment would be a key catalyst. Executive VP & CFO Carrie Anderson clarified that the tariff impact is not a simple run-rate, as it is being phased in from multiple sources (Canada, Section 232, reciprocal actions). She explicitly advised against annualizing the Q4 estimate, noting that mitigation efforts are ongoing and the trade landscape is dynamic.

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CFO Carrie Anderson explained the atypical EPS cadence is due to continued Snacks pressure in Q3, followed by improvement in Q4 when the company will also lap a period of higher prior-year promotional spending. CEO Mick Beekhuizen confirmed a more positive outlook on broth, as the category remains strong and private label recovery has been slower than anticipated, resulting in a smaller-than-expected headwind for the second half.

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CEO Mark Clouse explained that the majority of the approximate 200-basis-point gap between in-market consumption and net sales in the Meals & Beverages division was due to the Thanksgiving timing shift. Regarding Rao's, he cited the broader consumer trend of shifting from away-from-home to at-home eating, strong growth from middle and lower-income households, and consumer research indicating that Rao's provides significant value compared to Italian takeout, a theme now central to its advertising.

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CEO Mark Clouse noted a bifurcation in snacks, with Campbell's power brands competing in the faster-recovering 'elevated' segments where innovation is key. Regarding guidance, CFO Carrie Anderson and CEO Mark Clouse clarified the fiscal 2025 cadence: Q1 flat, followed by gradual improvement. They expect healthy categories in the second half, though the company will be cycling strong broth performance, with the recovering Snacks business expected to help offset this headwind.

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CEO Jim Snee expressed confidence in the second-half ramp, citing the on-track Planters recovery, momentum in value-added Turkey, and strong performance in Foodservice and Retail. EVP of Retail John Ghingo added that increased advertising spend would support retail growth. CFO Jacinth Smiley provided Q3 segment growth expectations, and Jim Snee noted that while the Turkey market supply is tightening, Hormel is well-positioned with its value-added offerings.

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CEO James Snee confirmed the back-half ramp, attributing it to consistent performance from the value-added business, the on-track recovery of Planters, and broad-based growth in Foodservice. He noted that while near-term turkey supply chain pressures are a headwind, strategic pricing actions will benefit Q3 and Q4. CFO Jacinth Smiley added that the largest second-half contributors will be Planters and the Transform & Modernize (T&M) initiative. Regarding the CEO search, Snee stated the Board is rigorously evaluating both internal and external candidates to find the right leader, emphasizing his own commitment to delivering 2025 goals during the transition.

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CEO Jim Snee confirmed the analyst's math regarding the EBIT growth from the 2023 starting point to the 2025 guidance midpoint. CFO Jacinth Smiley clarified the turkey outlook, stating the company assumes depressed pricing comparable to Q4 will persist through 2025 and that it expects only 'moderate benefits' from strategically hedged grain costs. Snee added that the value-added turkey business is expected to grow, while the commodity side is planned appropriately for a flat to slightly down environment.

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CEO James Snee confirmed the $0.15 EPS headwind from Turkey remains accurate but stated it is too early to forecast 2025 recovery due to market volatility. Regarding Planters, Snee asserted that the acquisition thesis holds and that Hormel's enhanced food safety protocols enabled early detection of the issue. He described the disruption as a sign that their system worked, and while the production ramp-up is slow, they are confident in getting the brand back on track to deliver on its strategic value.

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CEO Gary Pilnick reiterated that the 500 bps expansion is still expected to come primarily from gross margin, driven by their on-schedule supply chain modernization. CFO David McKinstray added they are finding new efficiencies in SG&A and distribution. Pilnick framed the consumer shift to value and health as a long-term tailwind for the category.

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Chairman and CEO Gary Pilnick confirmed the 500 bps expansion is still expected to come through gross margin, driven by the on-schedule and on-budget supply chain modernization program. CFO Dave McKinstry added that they are now identifying further efficiencies in SG&A and distribution. Gary Pilnick also expressed confidence that the consumer shift toward value and health is a long-term tailwind for the category.

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CFO David McKinstray attributed the sales outperformance versus scanner data to lapping a 2023 investment, strong non-measured channel performance, and an inventory build for new innovation. CEO Gary Pilnick described the tariff situation as fluid but stated the supply chain modernization plan is a long-term strategy that includes significant U.S. investment.

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David McKinstray, CFO, clarified that the Q3 benefit was not from an inventory build but from lapping a significant inventory drawdown in the prior year caused by supply issues. He confirmed this was a one-time effect that is not expected to repeat in Q4. He deferred detailed commentary on 2025 inflation and other items to the February earnings call.

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CFO Dave McKinstray clarified that the Q3 benefit was not an inventory build but rather the lapping of a significant inventory drawdown in Q3 2023 caused by prior supply chain issues. He confirmed this was a one-time lapping benefit that is not expected to continue. He deferred detailed 2025 guidance on inflation and other items to the February call.

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Chief Financial Officer Sudhanshu Priyadarshi explained that a portion of the Q1 beat was driven by a gain from the sale of the company's Vita Coco stake. He stated that this gain provides additional flexibility to manage emerging headwinds like tariffs and consumer softness, which is why the company reaffirmed its full-year guidance rather than raising it. He reiterated the full-year outlook but declined to provide specific quarterly guidance.

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Steven Cahillane, Chairman, President and CEO, attributed the strong quarter to growth in both cereal and snacks. He highlighted Mexico's "terrific quarter" with record cereal shares and strong Pringles momentum. For Brazil, he noted the underlying business remains strong, driven by Pringles, though results were impacted by the region's devastating floods. He also expressed bullishness on Pringles' future in Mexico with local sourcing coming online next year.

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