Peter Grom • UBS Group AG

Answer

EVP and CFO Akhil Shrivastava expressed confidence, citing positive data points such as stabilizing retail growth in China, a better shipment base in Travel Retail after FY25 inventory actions, and positive retail momentum in North America. President and CEO Stéphane de La Faverie added that the provided guidance ranges offer flexibility to navigate volatility. He underscored the team's commitment to delivering on the outlook, pointing to their over-delivery on PRGP initiatives in fiscal 2025 as evidence of their determination.

Ask Fintool Equity Research AI

Answer

President & CEO Stephane de la Faverie confirmed the return-to-growth outlook is for the full fiscal year '26, citing sequential net sales improvement and anniversarizing a low base in Travel Retail. EVP & CFO Akhil Shrivastava addressed the tariff risk, reiterating three mitigation strategies: optimizing supply routes, surgical pricing, and additional PRGP savings. He acknowledged the impact could be material but stated they are actively managing it.

Ask Fintool Equity Research AI

Answer

President and CEO Stephane de la Faverie confirmed the return-to-growth comment is for the full fiscal year 2026, citing sequential net sales improvement and the anniversary of low Travel Retail comps. EVP and CFO Akhil Shrivastava addressed the tariff risk, stating that while the impact could be material, they are mitigating it by optimizing goods flow, considering surgical pricing actions, and identifying further PRGP opportunities. He noted consumer sentiment remains the biggest variable.

Ask Fintool Equity Research AI

Answer

Interim CEO Kirk Perry stated his biggest surprise was the level of 'self-induced complexity.' He expressed excitement for the potential of iconic brands like Tylenol and Aveeno Baby, citing their strong performance when focused. Perry identified the long tail in Skin Health & Beauty and performance in APAC and North America as key challenges, while highlighting EMEA and LatAm as successful models to replicate.

Ask Fintool Equity Research AI

Answer

Interim CEO & Director Kirk Perry stated his biggest surprise was the level of 'self-induced complexity' inhibiting agility. He expressed excitement about pockets of the business where focus is already yielding results, such as Tylenol and Aveeno Baby, and noted encouraging performance in EMEA and Latin America. Perry identified North America and APAC as the most challenged regions, but believes successful strategies from winning brands can be scaled across the portfolio.

Ask Fintool Equity Research AI

Answer

CEO Thibaut Mongon explained that while Kenvue does not provide quarterly guidance, the first half is expected to remain muted due to headwinds from Asian destocking and U.S. price investments. He expressed confidence in a second-half acceleration driven by lapping these headwinds, a strong pipeline of innovation and marketing, and enhanced revenue growth management. He acknowledged that a weaker-than-expected category demand is a potential risk.

Ask Fintool Equity Research AI

Answer

CEO Thibaut Mongon attributed slower category growth to a reduced impact from pricing, while noting resilient consumer demand for trusted health brands. CFO Paul Ruh projected an acceleration in organic sales growth in Q2 into positive territory, though still moderated by the China disruption. For Q4 2025, he confirmed the guidance assumes a normal cold and flu season, meaning the absence of the significant headwinds experienced in Q4 2024.

Ask Fintool Equity Research AI

Answer

Executive Paul Ruh stated that while not providing 2025 guidance, the company expects to accelerate top-line growth from 2024 levels, with income growing faster than sales. He explained that the ongoing transformation and continued brand investment will fuel this acceleration. He noted that 2024 has become a 'new base' from which future performance will be assessed, and the company will consider various category scenarios.

Ask Fintool Equity Research AI

Answer

CFO Jarrod Langhans attributed the strong 51.5% gross margin to higher-margin Alani LTOs, favorable product mix, and early savings on raw materials and freight. He noted that while FIFO accounting delayed tariff impacts, they are expected in Q3 and Q4. However, he guided for margins to remain in the 'low fifties,' above the prior model, thanks to cost initiatives and operational efficiencies. CEO John Fieldly added that vertical integration initiatives are helping the company leverage its scale.

Ask Fintool Equity Research AI

Answer

CEO John Fieldly acknowledged a slow start to the quarter due to increased competition and tough comps from significant 2024 launches. CFO Jarrod Langhans clarified that scanner data showed a 4% decline, while reported revenue was down 7%. He attributed the difference to a couple of percentage points from promotional allowances and distributor incentives, plus some timing issues in the non-DSD channel where there was a Q4 2024 load-in.

Ask Fintool Equity Research AI

Answer

CEO John Fieldly stated that Celsius expects a 15% to 20% expansion in distribution within retail sets, driven by large format retailers leaning more heavily into the energy category. He emphasized the focus on securing more cold placements to disrupt the path to purchase. For Alani Nu, he noted that the brand is expecting 'sizable distribution gains,' especially in the convenience channel, during the reset season.

Ask Fintool Equity Research AI

Answer

CFO Jarrod Langhans stated that visibility has improved and that the Q4 outcome is more dependent on overall category trends than further distributor optimization. CEO John Fieldly addressed the competitive question by highlighting key initiatives like Gen Z marketing, foodservice expansion, and major sponsorships. He emphasized that the team is focused on driving both increased market share and velocity through its evolving strategies.

Ask Fintool Equity Research AI

Answer

CEO & Chairman Tarang Amin did not provide a specific growth rate for Rhode but highlighted its rapid ascent to $212 million in sales DTC-only and its significant potential with the upcoming Sephora launch. He clarified that the goal of doubling the business applies to the entire e.l.f. Beauty portfolio over the coming years. Senior VP & CFO Mandy Fields noted that second-half margin visibility depends heavily on tariff outcomes and the success of mitigation efforts.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Tarang Amin attributed the earlier slowdown to lapping the exceptionally strong viral launch of lip oils in the prior year. He credited the recent rebound to the strength of the marketing engine and new, community-requested innovation like the Melting Lip Balms, expressing confidence in the fall pipeline.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Tarang Amin deferred specific FY'26 guidance to May but asserted that Q4 is an anomaly and the true run rate is higher, citing significant white space in cosmetics, skin care, and international markets. He expressed high confidence in continued market share gains, pointing to the brand's >20% share at Target as a benchmark. CFO Mandy Fields explained that the significant Q4 SG&A leverage is driven primarily by marketing spend normalizing compared to an unusually high 34% of net sales in the prior-year Q4.

Ask Fintool Equity Research AI

Answer

CFO Mandy Fields explained that the core guidance strategy remains consistent. However, as e.l.f. becomes a larger company, the law of large numbers means the absolute magnitude of revenue beats and guidance raises will naturally become smaller. The focus remains on consistent, reliable delivery against their stated annual guidance.

Ask Fintool Equity Research AI

Answer

CFO Paul Rode projected a Q4 EBITDA margin decline of approximately 300 basis points, driven by gross margin pressure from higher promotions and input cost inflation, particularly for protein. He identified a 100 basis point headwind from one-time items. He specified that elevated whey protein costs are expected to continue into fiscal 2026, along with new headwinds from tariffs, which the company is actively working to mitigate.

Ask Fintool Equity Research AI

Answer

President and CEO Darcy Davenport confirmed they are being more cautious due to consumer uncertainty. She highlighted that they chose not to tighten their guidance range this quarter, which they might have done historically, to maintain flexibility and account for potential unknowns in the consumer environment despite strong underlying business trends.

Ask Fintool Equity Research AI

Answer

President and CEO Gavin Hattersley attributed the guidance reduction to three primary factors: a softer-than-expected U.S. beer industry, an unforeseen 180% spike in the Midwest aluminum premium, and market share performance that did not meet expectations. He emphasized that the company views the industry downturn as cyclical and highlighted long-term strengths, including the retention of core brand share, the growth of Coors Banquet, and the eventual easing of contract brewing headwinds.

Ask Fintool Equity Research AI

Answer

CEO Gavin Hattersley stated that it is "certainly clear" to the company that the incremental industry softness is macro-driven and therefore cyclical. He noted that while the timing of a recovery is difficult to predict, the company's guidance is built on the expectation that industry trends will normalize and move back toward historical performance over the balance of the year.

Ask Fintool Equity Research AI

Answer

CEO Gavin Hattersley indicated that while economies in Canada and the U.K. are showing signs of improvement, the company's guidance is built on multiple factors. These include the known headwind from exiting contract brewing, the benefit from the new Fever-Tree partnership, and continued progress on core brand health and premiumization strategies, rather than just a single assumption on category growth.

Ask Fintool Equity Research AI

Answer

CEO Gavin Hattersley responded that the company has a good handle on the key drivers for its Q4 top line, including shipments, the remaining Pabst contract unwind, and pricing. He expressed confidence in their understanding of how these factors will play out for the remainder of the year, referencing his earlier comments on the long-term algorithm for the broader outlook.

Ask Fintool Equity Research AI

Answer

President and CEO Rod Little stated that while not providing 2026 guidance, the implied 2.5% organic growth for Q4 is on track, driven by improvements in Fem Care and a renewed focus on Shave. He affirmed confidence in the company's long-term 2-3% growth algorithm. COO Daniel Sullivan characterized the current fiscal year as challenging and transitory due to tariffs, currency fluctuations, and a poor Sun Care season. He emphasized that core business strengths like international growth, productivity savings, and cash flow generation remain solid, providing a strong foundation for the future.

Ask Fintool Equity Research AI

Answer

COO Daniel Sullivan detailed the drivers for the second-half growth, citing approximately 1.5 points of transitory tailwinds from the Easter shift and cycling prior supply disruptions. He stated the remaining growth to reach the +2% forecast is based on continued international strength (4.5-5% organic growth), modest U.S. Sun Care category growth, and sequential improvement in Fem Care. CEO Rod Little added that improving U.S. market share and momentum in the Billie and Hawaiian Tropic brands support this confidence.

Ask Fintool Equity Research AI

Answer

President and CEO Rod Little confirmed that U.S. scanner data, representing about 35-40% of the business, is expected to show sequential improvement. COO Daniel Sullivan quantified the Q2 impact, stating the organic sales growth outlook was lowered to approximately 1%, reflecting a $6-7 million sales shift into Q3. Sullivan reiterated that they always anticipated a sequentially improving growth profile for the full year, driven by international strength and the Right to Win portfolio.

Ask Fintool Equity Research AI

Answer

President and CEO Mark LaVigne attributed the Q4 outlook partly to the shipment shift from Q4 to Q3, but noted that underlying POS trends are consistent with the full-year outlook. EVP and CFO John Drabik reiterated the full-year organic growth guidance of flat to 2% and stated that for Q4, he expects auto care to perform slightly better than batteries, with both segments benefiting from pricing actions.

Ask Fintool Equity Research AI

Answer

Executive Mark LaVigne and Executive John Drabik explained that the fiscal '25 impact is fully mitigated. For the longer term, Drabik broke down the $150 million gross headwind, noting that for tariffs already in place (steel, aluminum), impacts are neutralized. For announced reciprocal tariffs, the company plans to reduce its China sourcing from 5% to 2-3% of COGS within 12 months and is using sourcing changes and commercial actions for other tariffs. They anticipate offsetting 60-70% of the new tariffs within a year and believe the gross impact on FY26 could be cut by at least half, though it will be a transitional year.

Ask Fintool Equity Research AI

Answer

John Drabik, EVP and CFO, described the input cost environment as mixed, with pressure on zinc and copper offset by benefits from lithium and silicone, resulting in a net modest benefit. He noted continued pressure from energy, labor, and freight, but reaffirmed the full-year gross margin expansion guidance of 50 basis points. Mark LaVigne, President and CEO, responded that while sourcing differences could present opportunities, the company's first priority is to mitigate any internal impact from trade changes before looking to capitalize on them externally.

Ask Fintool Equity Research AI

Answer

John Drabik, CFO, attributed the strong Q1 start to approximately $10 million in incremental sales from two hurricanes, which added 100-150 basis points to growth. For the full year, he projected 200-300 basis points of volume growth, offset by about 100 basis points of pricing headwind, with this dynamic being consistent across both the Battery and Auto Care segments.

Ask Fintool Equity Research AI

Answer

President and CEO Rick Dierker explained that they were early in calling the Q2 slowdown and have since seen category growth improve to around 2.5%. He attributed their relative strength to their specific category mix and consistent share gains. While acknowledging a strong July, he cited the month's easy comparison and overall market volatility as reasons for maintaining a conservative full-year outlook for now. CFO Lee McChesney added that they feel comfortable with the implied 2.5% organic growth for the second half.

Ask Fintool Equity Research AI

Answer

CFO Lee McChesney clarified that while the Q1 retailer destocking impact will lessen in Q2, it will be offset by a new negative from slowing category consumption. Executive Richard Dierker attributed the rapid slowdown to a pressed consumer, a trend he noted the company had been flagging since late 2024, which has now been exacerbated by tariff uncertainty. He expects more peers will begin to report similar trends.

Ask Fintool Equity Research AI

Answer

CEO Matthew Farrell clarified that the company is assuming Q4 category growth will average 2.5%. He explained that they view the strong October results as an anomaly and expect November and December to revert to the slower trends seen over the summer. This cautious assumption, consistent with their view from July, underpins the Q4 organic sales outlook of 2% to 3%.

Ask Fintool Equity Research AI

Answer

Richard Dierker (CFO and Head of Business Operations) explained the consumption-sales disconnect was due to a prior-year HERO pipeline fill and a surprise retail inventory adjustment, primarily in laundry. For international, Matthew Farrell (executive) noted strong performance so far, with Richard Dierker adding that the back-half outlook is around 7% growth, aligning with the full-year target of 8%.

Ask Fintool Equity Research AI

Answer

CEO Chris Peterson clarified that the entire downward revision to the full-year core sales guidance was due to a weaker category growth outlook, implying confidence in their internal distribution and innovation plans remains intact. CFO Mark Erceg discussed long-term margins, reiterating targets for gross margin (37-38%) and A&P spending (6.5%). He highlighted that overheads as a percentage of sales will begin to decline in Q3, serving as a new catalyst for operating margin expansion.

Ask Fintool Equity Research AI

Answer

CEO Christopher Peterson explained that while the guidance is what they are reasonably confident in delivering, they have higher internal targets and are focused on over-delivering. He noted the P&L has more flexibility now, with a higher A&P budget that provides a discretionary lever. CFO Mark Erceg declined to give quarterly margin guidance but expressed high confidence in continued expansion, attributing recent gains to structural improvements like automation and mix management. He reiterated the long-term goal of a 13-15% operating margin.

Ask Fintool Equity Research AI

Answer

Chairman, CEO & President Noel Wallace confirmed that the expectation for modest improvement is a broad-based comment. He noted that global categories are currently growing around 2-3% with slightly positive volume. He anticipates a modest acceleration across the board, suggesting that daily-use categories like toothpaste may recover sooner than home care categories where consumers can delay purchases.

Ask Fintool Equity Research AI

Answer

Noel Wallace, Chairman, President and CEO, acknowledged that while 2025 guidance anticipated a slowdown, the volume growth in their categories has slowed more than expected. He noted that U.S. categories were down sequentially through February, with mixed results in March but signs of improvement and stability in April. Wallace expressed confidence that consumers will return to these everyday-use categories, expecting more normalization in the back half of the year, though Q2 will likely remain soft.

Ask Fintool Equity Research AI

Answer

CEO Noel Wallace noted that gross margin rose 70 basis points year-over-year despite significant FX headwinds. CFO Stan Sutula added that margin expansion in 2025 will be driven by positive mix from the faster-growing Hills and Oral Care businesses, the 'Funding the Growth' program, and enhanced Revenue Growth Management (RGM 2.0) capabilities. Noel Wallace also mentioned a more moderate raw material environment provides better visibility.

Ask Fintool Equity Research AI

Answer

CFO Luc Bellet explained the sales gap was due to lower-than-anticipated market share. CEO Linda Rendle added that while some execution fell short in a dynamic quarter, brand health remains strong. For the H2 2026 outlook, Rendle stated confidence is driven by company-controlled factors, including a strong innovation pipeline and adjusted plans to meet evolving consumer behavior, rather than assuming a major shift in the macroeconomic environment.

Ask Fintool Equity Research AI

Answer

CFO Luc Bellet clarified that the implied Q4 gross margin of about 44% is close to the full-year average. He noted drivers include the timing shift of manufacturing expenses from Q3 to Q4, stronger-than-expected cost savings, and a $10-$20 million tariff impact. Regarding destocking, CEO Linda Rendle stated it was limited to the Household business late in Q3. Luc Bellet added the Q3 impact was modest, with most of the effect expected in Q4 and embedded in the outlook.

Ask Fintool Equity Research AI

Answer

CFO Kevin Jacobsen detailed the quarterly sales cadence, projecting low single-digit organic growth for Q3 and mid-to-high single-digit growth for Q4, with the latter heavily influenced by the ERP transition. He confirmed that while a tax benefit and lower supply chain inflation were positive, they were offset by FX headwinds and increased trade spending, keeping the base business outlook on track.

Ask Fintool Equity Research AI

Answer

CFO Kevin Jacobsen reaffirmed the back-half growth outlook, attributing it to continued strength in International and Clorox Professional businesses, benefits from recent divestitures, and a strong innovation pipeline. He confirmed the Q1 gross margin outperformance was primarily driven by better fixed cost absorption from higher-than-expected shipment volumes, with other cost elements performing in line with expectations.

Ask Fintool Equity Research AI

Answer

EVP & CFO Mark Scheiwer confirmed the framework of ~100 bps from savings and ~100 bps from price annually, noting potential for outperformance. CEO James Hagedorn stated there is no reason the U.S. Consumer business wouldn't see 3% growth, discussing the internal dynamic of balancing conservative public targets with the desire for higher investment to fuel faster growth. President & COO Nate Baxter added that innovation benefits would be realized over a multi-year period.

Ask Fintool Equity Research AI

Answer

CEO James Hagedorn explained that the modest 2% growth guidance accounts for the removal of non-recurring items like the discontinued AeroGarden business and prior-year bulk sales, which offset underlying growth from pricing and volume. An executive added that 75-80% of the incremental $40M+ investment is for immediate brand support, with the rest for mid-term capabilities. CFO Matt Garth noted the guidance is intentionally conservative, reflecting a prudent approach to rebuilding the business and investing for long-term franchise value.

Ask Fintool Equity Research AI

Answer

CEO Scott Huckins affirmed that the company's full-year view on category performance remains intact. CFO Nathan Lowe added that while the price/volume mix may shift, the retail revenue outlook is unchanged. Regarding inventory, Huckins stated that destocking was a neutral factor in Q2, with the inventory reduction seen in Q1 persisting but not worsening.

Ask Fintool Equity Research AI

Answer

CFO Nathan Lowe stated that the updated guidance reflects lower retail volume expectations due to Q1 retailer destocking (a ~1% full-year headwind) and increased pressure on consumers. He noted that the guided pricing range is tied to the expected cost headwinds for the year and that cost impacts typically flow through the P&L over a two to six-month period.

Ask Fintool Equity Research AI

Answer

President and CEO Scott Huckins explained that the Q1 outlook is impacted by the timing of Easter, which shifts from Q1 in the prior year to Q2 in the current year. He clarified that the overall 2025 category forecast, which includes a double-digit decline in foam and flat performance elsewhere, is for the full year and not uniquely phased. The Q4 strength was broad-based, with 1% retail volume growth.

Ask Fintool Equity Research AI

Answer

President and CEO Lance Mitchell noted that category growth rates have been sequentially improving across the business. CFO Scott Huckins clarified the Q4 guidance, stating the full-year retail volume outlook is roughly flat and that the Q4 range reflects an expected sequential improvement, with the midpoint of the guidance at +1% volume growth.

Ask Fintool Equity Research AI

Answer

CFO Andre Schulten observed that consumers are reacting to economic volatility by being more cautious with spending, leading to slower consumption. He stated P&G's job is to create its own growth through innovation. President, CEO & Chairman Jon Moeller added that the wide guidance range is a prudent reflection of this macroeconomic uncertainty.

Ask Fintool Equity Research AI

Answer

Executive Andre Schulten expressed satisfaction with Latin America's 6% organic sales growth, driven by strong results in Brazil and Mexico despite consumer volatility. For Europe, he noted the significant negative impact from France. Globally, he reiterated that category growth has slowed from 3.5% to 2.5% but is expected to recover, though the timing is uncertain.

Ask Fintool Equity Research AI

Answer

Andre Schulten, an executive, explained that the majority of the fiscal year's commodity cost impact was already incurred in the first half. He noted that due to contract structures, any current volatility in raw materials like oil will likely not impact the current fiscal year's P&L but rather the first half of the next fiscal year, providing stability for the second half of FY25.

Ask Fintool Equity Research AI

Answer

Executive Andre Schulten clarified that reaching the midpoint requires a combination of two factors: the mathematical benefit of annualizing the significant headwinds, and the core 85% of the business maintaining and slightly accelerating its current strong run rate, which would be amplified by easier year-over-year comparisons.

Ask Fintool Equity Research AI

Answer

CFO Diego Reynoso clarified that the guidance reflects the necessary rebalancing of shipments to depletions, which is a larger adjustment now due to softer-than-expected Q2 industry trends. Founder & Chairman C. James Koch added that long-term structural headwinds are performing as expected, with the recent greater decline stemming from temporary factors like weather and economic pressure on the Hispanic community.

Ask Fintool Equity Research AI

Answer

CEO Michael Spillane acknowledged that stronger shipments provided a 'little bit of an uplift' to Q1 gross margin but emphasized that the primary driver was the company's underlying margin initiatives. Regarding tariffs, he identified the cost of aluminum for cans and point-of-sale materials from China as the key pressures, confirming the current guidance reflects the gross impact before any potential mitigation efforts.

Ask Fintool Equity Research AI

Answer

CFO Diego Reynoso explained that gross margin improvement is driven by a multiyear plan focused on procurement, brewery performance, and network optimization. Reaching the high end of guidance depends on accelerating these programs and volume leverage. Regarding phasing, he noted Q4 is typically the lowest margin quarter. He declined to give specific quarterly marketing spend, stating that a portion of the budget is flexible and will be deployed based on real-time opportunities.

Ask Fintool Equity Research AI

Answer

CEO Tim Cofer stated he was pleased with the sequential improvement in Q2 but cautioned that the second half will face challenges. He cited building commodity inflation, prominent tariff impacts, tight retailer inventory management, and uncertainty around price elasticity as reasons for the 'subdued' outlook. He anticipates some operating income pressure for the segment in H2, which is factored into the full-year enterprise guidance.

Ask Fintool Equity Research AI

Answer

Chief Executive Officer Timothy Cofer confirmed that the energy category is one of the fastest-growing in liquid refreshment beverages. He detailed the momentum across KDP's energy portfolio, including C4 and Bloom. Regarding GHOST, he highlighted a smooth distribution transition and strong alignment with the GHOST team, confirming that KDP expects the brand's momentum to continue building throughout 2025 and that the company is on track to deliver on its plan for the brand.

Ask Fintool Equity Research AI

Answer

Chief Executive Officer Tim Cofer stated that while coffee remains a long-term attractive category, the focus in 2024 was on stabilizing volume, which was successful. He explained that 2025 presents a different challenge due to record green coffee costs, shifting the primary objective to preserving profit dollars through pricing, mix, and productivity, even if it means accepting some volume elasticity. Consequently, KDP is planning for the U.S. Coffee segment to remain subdued in 2025.

Ask Fintool Equity Research AI

Answer

Chairman and CEO James Quincey confirmed the moderation in Fairlife's growth is a function of the 'law of big numbers' and capacity constraints, not a weakening competitive position. He stated they could sell more product if they had more capacity. He acknowledged that the brand's success naturally attracts competition, which keeps the company focused on strong execution and innovation.

Ask Fintool Equity Research AI

Answer

Chairman and CEO James Quincey clarified that the commentary is partly a reminder of Q2 being the strongest quarter last year. The 'choppy' description refers to an 'increased number of known unknowns,' such as potential broad economic supply chain disruptions that could impact consumer sentiment, even if not affecting Coca-Cola directly. He reiterated that they believe the situation is manageable.

Ask Fintool Equity Research AI

Answer

CEO James Quincey confirmed the interpretation was correct, stating that 2025 volume growth would likely be in the range of the 1-2% seen in 2024, with a compensating factor on price to reach the 5-6% organic growth target. He acknowledged the momentum coming into the year but also noted the dynamic environment and a tougher cycling quarter, expressing confidence that volume performance would be slightly better than 2024 overall.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Ramon Laguarta expressed confidence based on the combination of sustained international growth and sequential improvement in the North American business. He stated that the company is becoming more competitive across various sub-segments and that investments in value, innovation, and the away-from-home channel are expected to drive this return, though he did not provide a precise timeline.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Ramon Laguarta stated that PepsiCo feels good about its energy strategy and partnerships. He confirmed that conversations with Celsius are underway regarding their new brand acquisition but noted that it is still too early in the discussions to make any public comment on potential participation.

Ask Fintool Equity Research AI

Answer

CEO Ramon Laguarta positioned 2024 as a 'normalization year' following three years of exceptional 8% compound growth for Frito-Lay. His current confidence stems from seeing more consumption occasions returning to the category in the last three months of the year, with growth occurring at both the value and premium ends. He asserted that PepsiCo's 2025 commercial plans are designed to address both segments effectively.

Ask Fintool Equity Research AI

Answer

EVP and CFO Jamie Caulfield provided a direct response, stating that the company does not anticipate a 'huge inflection up or down' from the operating conditions that were present in the third quarter.

Ask Fintool Equity Research AI

Answer

CEO Brian Grass clarified that the year's earnings cadence has shifted significantly due to changes in tariff mitigation strategies, with a greater reliance on price increases in the second half. He stated that the existing full-year consensus estimate is 'not unreasonable' but the first-half/second-half split is different than previously expected. Grass detailed second-half tailwinds including stabilizing retail inventory, distribution gains, and favorable comparisons, noting that while consumer response to pricing is a variable, the company's assumptions are conservative.

Ask Fintool Equity Research AI

Answer

CFO Brian Grass clarified that existing Pegasus savings were already planned to fund growth investments and are not incremental to the 70-80% tariff mitigation figure. He confirmed the 70-80% mitigation is specific to fiscal 2026, with fiscal 2027 expected to see further benefits as diversification costs abate. Regarding Q1, both Grass and CEO Noel Geoffroy stated they are being very cautious with spending, implementing reversible measures like T&E reductions, in response to revenue trends and macro uncertainty.

Ask Fintool Equity Research AI

Answer

CEO Noel Geoffroy explained that the Q4 outlook reflects continued strength in Home & Outdoor, but the primary driver for the revised guidance is the historically weak global illness season impacting the Wellness business. CFO Brian Grass added that the wide range accounts for high variability in consumer and retailer behavior. Regarding long-term targets, Geoffroy affirmed they still stand, with a detailed fiscal 2026 outlook to be provided in April, noting that Home & Outdoor and International are moving in the right direction while Beauty requires more work.

Ask Fintool Equity Research AI

Answer

CEO Noel Geoffroy attributed the performance more to the company's own actions, such as new product launches and distribution gains, rather than broad category strength, which she described as a "mixed bag." CFO Brian Grass added that category assumptions for the rest of the year remain largely unchanged from the previous quarter. Regarding the buyback, Grass clarified it was "good housekeeping" to refresh an expiring authorization and there were no immediate, specific execution plans.

Ask Fintool Equity Research AI

Answer

CEO Geoff Tanner explained that the deceleration in Owen's growth was fully anticipated as the company laps significant prior-year distribution gains. CFO Chris Bealer clarified that they expect Owen's consumption growth in FY26 to be similar to Q3's ~24%. Regarding the Q4 outlook, Bealer advised that while H1 FY26 will be challenged by cost pressures, H2 should see improvement as productivity and pricing benefits are realized.

Ask Fintool Equity Research AI

Answer

CFO Kofi Bruce explained that top-line growth phasing will be impacted by tough comparisons in the first half of the year due to trade expense timing, with comps easing in the second half. He clarified that the company is not counting on a significant rebound in category growth and is instead focused on its own competitive performance.

Ask Fintool Equity Research AI

Answer

CFO Kofi Bruce explained that the top-line progression will be affected by challenging trade expense phasing comparisons in the first half of the year, which are expected to ease in the second half. He also noted that the company's guidance does not assume a significant rebound in category growth, instead focusing on improving its own competitive performance.

Ask Fintool Equity Research AI

Answer

CFO Tucker Marshall explained that SD&A is also impacted by lapping TSA income and the reset of incentive programs, alongside the planned marketing increase. Regarding phasing, he stated Q1 will be the lowest EPS quarter, Q2 and Q3 will see declines but be consistent with each other, and Q4 is expected to show growth.

Ask Fintool Equity Research AI

Answer

CFO Jeremy Smeltser explained that providing a precise net impact is difficult as the company has pivoted its operating model by halting new orders from China, making gross calculations on prior sourcing volumes irrelevant. He expects Q3 to be similar to Q2, with Q4 being the most uncertain. CEO David Maura clarified that capital allocation is not a pivot; the company is still actively repurchasing its undervalued stock but is also preserving its strong balance sheet to capitalize on M&A opportunities, particularly to expand the Pet division into higher-growth, higher-multiple categories.

Ask Fintool Equity Research AI

Answer

CEO David Maura stated that the company's undervalued stock price is its 'biggest opportunity' and they will continue to capitalize on it while investing in the business. Regarding the HPC transaction, Maura explained that the recent and fluid tariff situation creates uncertainty for potential buyers trying to price cash flows. He believes it will take a couple of months for the 'dust to clear' and for the new 'rules of the road' to become certain before more fruitful conversations can resume.

Ask Fintool Equity Research AI

Answer

Chairman and CEO David Maura explained that improving the HPC business's fundamentals was the first priority, noting its EBITDA grew from $40M to over $75M. He stated that the U.S. election and Middle East conflict caused a general M&A slowdown but confirmed active talks with two buyers. Regarding guidance, Maura highlighted that significant Q4 ad spend impacted reported EBITDA but is vital for future growth. CFO Jeremy Smeltser added that the low single-digit sales growth forecast is consistent across segments but driven by different factors: a tough premium environment for Global Pet Care (GPC), a difficult comparison for Home & Garden, and historical trends for HPC. He also noted headwinds from ocean freight and an expired tariff exclusion.

Ask Fintool Equity Research AI

Answer

CEO William Newlands highlighted that Q1 of the prior year was the strongest quarter for both the company and the industry, creating a very difficult comparison. He advised to expect volatility as the year progresses due to this tough overlap and the ongoing socioeconomic pressures, while reiterating that the company's brand health remains a key long-term strength.

Ask Fintool Equity Research AI

Answer

CFO Garth Hankinson confirmed that the company still expects full-year shipments and depletions to be largely aligned. Regarding the gap to Circana data, he reiterated that Circana only captures about half of their sales activity and has shown significant volatility, suggesting that questions about the data's methodology are better directed to Circana.

Ask Fintool Equity Research AI

Answer

CFO Garth Hankinson explained that the quarterly share of volumes should align with fiscal '24, with a reversal occurring in Q3 as shipment growth is expected to be below depletion growth due to maintenance activities. CEO William Newlands disagreed with the characterization of the high end of guidance as 'aspirational,' stating that the range is provided to account for both positive and challenging scenarios.

Ask Fintool Equity Research AI

Answer

CEO Michael Hsu explained that reduced usage frequency is a dynamic seen in informal economies where consumers with tighter budgets may use fewer products per day rather than exit the category. CFO Nelson Urdaneta added that while 2025 growth will be driven by volume and mix, the year-over-year growth rate will be impacted by a tougher comparison in Q1, which was the strongest quarter of 2024.

Ask Fintool Equity Research AI

Answer

Hilton Schlosberg, Vice Chairman and Co-CEO, explained that the mid-October cutoff for the old price made it a very difficult exercise to isolate the pull-forward impact. On commodities, he noted significant increases in aluminum, which is subject to tariffs, while other inputs present a mixed but 'relatively manageable' cost environment.

Ask Fintool Equity Research AI