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CFO Ruben Baldew confirmed the strategy to drive supply chain efficiencies and reinvest them remains unchanged, declining to give specific 2025 gross margin guidance but reaffirming the long-term goal of recovery. CEO Stéfan Descheemaeker noted that the M&A valuation gap is narrowing, and the company is considering smaller, synergistic add-on deals while maintaining focus on the core business.

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CFO Bruce Wacha explained that trade spend is the company's primary lever to move volume and that higher trade levels from Q4 2023 were lapped in Q4 2024. CEO Casey Keller added that the 2025 outlook assumes flat to slightly positive pricing, with productivity and cost savings expected to offset modest input cost inflation. Bruce Wacha also reiterated that the Crisco brand is managed to protect gross profit dollars, with pricing adjusted to reflect commodity cost changes.

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President and CEO Russell Diez-Canseco explained that Q1 growth will be meaningfully below the prior year's 24% due to lapping a period of significant inventory sell-through, which is not repeatable this year. He confirmed, however, that year-over-year volume is still expected to grow. CFO Thilo Wrede added that a positive price/mix benefit is anticipated from a continued shift to organic products and reduced promotions.

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CEO Russell Diez-Canseco positioned marketing as a long-term brand-building investment focused on consumer insights. CFO Thilo Wrede elaborated that returns are measured through rising brand awareness in surveys, not direct short-term sales. Regarding gross margin, Thilo Wrede stated that while the company is currently above its long-term target of 35%, factors like increased transportation costs from new farm locations and ongoing maintenance could weigh on margins, but they remain comfortable with the 35% or higher target through 2027.

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CEO Jack Sinclair stated that the discerning nature of their customer base provides some insulation from economic shifts. CFO Curtis Valentine cited macro uncertainty and the challenge of lapping 2024's exceptionally strong comps as reasons for the measured guidance. He also clarified that new stores will be in existing markets through 2026, with expansion into new regions planned for 2027 and beyond.

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EVP and CFO Patrick O'Donnell clarified that the broth business recovery was not fully complete in Q4 and will continue into Q1 2025. Chairman, CEO and President Steven Oakland explained the expectation is primarily for increased branded promotions, which TreeHouse has factored into its guidance. He noted private label promotions are structured differently within retailer contracts and that current price gaps provide a strong value proposition.

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CFO Patrick O'Donnell stated that the financial impacts from the griddle recall and broth recovery are expected to be largely offsetting in Q4. CEO Steve Oakland identified pretzels and in-store baked cookies as particularly strong-performing snack categories where the company is leaning in and has secured new business wins.

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CEO Gary Pilnick confirmed the company leverages its portfolio's breadth by focusing on brands with momentum and growth opportunities. He stated that while the current priority is optimizing cereal (Horizon 1), the infrastructure being built is scalable and will allow for future expansion into new areas (Horizon 2).

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Gary Pilnick, Chairman and CEO, described the strategy as an 'and' approach, utilizing both innovation within core brands like Frosted Flakes and Raisin Bran and exciting in-and-out seasonal items like 'Wednesday' to drive business and category engagement. Regarding promotions, he stated that the environment is largely at historical 2019 norms and that WK Kellogg Co.'s increased activity is a return to normal levels now that supply has improved.

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Gary Pilnick, Chairman and CEO, described the innovation strategy as an 'and' approach, combining innovation within core brands (e.g., Frosted Flakes flavors) with exciting seasonal offerings. On promotions, he stated the environment is largely at historical 2019 norms. He explained that while WK Kellogg's activity is up, it's a return to normal levels after lapping prior supply constraints, and he views ROI-focused promotions as healthy for the category.

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CEO Daniel Fachner attributed the convenience store rebound to strong performance in the pretzel business, driven by a focused team securing new business. For the outlook, executive Shawn Munsell stated the goal is to return to a low 30% gross margin in the second half, with Q2 being a transitional quarter due to lapping strong churros volumes. Fachner expressed confidence in this recovery, citing theater traffic growth and new wins. He also highlighted the successful January launch of Dippin' Dots sundaes with a major nationwide retailer. Munsell described the share repurchase plan as an opportunistic and complementary part of their capital deployment strategy.

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CEO Daniel Fachner stated that the company is focused on promotional activities and 'curb-in' marketing to attract consumers in the convenience channel. Regarding long-term margins, Fachner confirmed the company's goals have not changed, though he emphasized the 'last mile is the hardest.' CFO Ken Plunk supported this by pointing to the 110 basis point improvement in adjusted EBITDA margin in fiscal 2024 as proof the strategy is delivering results.

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CEO Brendan Foley explained that the Q1 price investment is a maintenance of the program established in 2024, not an increase, as they are lapping its initial implementation. He reaffirmed that consumer trends like cooking at home, seeking value, and healthier eating continue to be strong tailwinds, directly fueling demand for their flavor products as consumers buy more fresh ingredients.

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EVP and CFO Mike Smith confirmed the SG&A investments, along with a tougher comparison for unconsolidated income, were key factors. Incoming CFO Marcos Gabriel elaborated that the SG&A increase includes a shift of IT and digital transformation investments into Q4, such as building a data analytics hub. He noted that the digital transformation journey is ongoing and more details would be shared at the Investor Day, deferring specifics on 2025.

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President and CEO Thomas Werner suggested that competitors likely saw the same strong category growth rates pre-COVID and planned expansions accordingly, which are now coming online during a demand slowdown. CFO Bernadette Madarieta firmly reiterated her comfort with the $550 million capital expenditure target for fiscal 2026.

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President and CEO Tom Werner stated that the company is winning back business, with volume benefits expected in Q3 and Q4. However, he cautioned that the overall volume picture could be 'murky' due to challenging restaurant traffic impacting the base business. Both Werner and CFO Bernadette Madarieta confirmed the Connell facility represented about 5% of North American capacity.

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Chairman and CEO Rodney McMullen stated that they feel good about their current position and are tracking slightly ahead of their own expectations. However, he expressed caution due to the five fewer shopping days between Thanksgiving and Christmas this year. He confirmed that most customer segments are beginning to feel more relaxed about their financial situation.

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CFO Tucker Marshall stated that coffee margins, which were strong at 28% in the first half, are expected to decline to the mid-to-low 20s in the second half due to green coffee inflation. He acknowledged the complex interplay of profitability across segments for the back half but deferred a detailed model discussion to a follow-up call.

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CFO Tucker Marshall stated that while coffee margins were strong in the first half (around 28%), they are expected to decline substantially to the mid-to-low 20s in the back half due to green coffee inflation. He acknowledged the moving pieces across segments, with Pet performing better than expected, and suggested a follow-up call to discuss the detailed puts and takes of the model for the second half.

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CFO Matt Mainer confirmed that the guidance assumes a relatively stable volume trajectory throughout the year, without a significant lift baked into the back half. Regarding the cereal category, Mainer described the competitive environment as rational. He noted that while retailers are asking for more promotions, Post would only increase promotional activity in exchange for benefits like improved shelf space or distribution.

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Steven Cahillane, Chairman, President and CEO, explained that the improvement is driven by a return to "full commercial activation," not just one factor. He highlighted that Pringles is leading the momentum, supported by increased distribution from new shelf resets, a full innovation slate now at pre-pandemic levels, and a return to rational promotional activity. He confirmed that volume growth is expected to continue and improve through the third and fourth quarters.

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