Steve Powers

Steve Powers asked for more detail on the competitive intensity in the branded bread category, the drivers of weakness in the 'other' category (private label and foodservice), the updated tariff outlook, and the company's capital allocation strategy concerning the dividend payout ratio.

Answer

Chairman & CEO A. Ryals McMullian explained that while the promotional environment is elevated, it's stable, with pressure coming from new lower-priced entrants affecting the traditional loaf segment. He noted weakness in the 'other' category was driven by lost private label bid business and softness in foodservice. CFO R. Steve Kinsey clarified that the tariff outlook update is structural, not a delay, and expects costs to pull back. Regarding capital allocation, he stated the board regularly evaluates the dividend based on performance and cash flow, and there is no stated target payout ratio.

Steve Powers asked for details on competitive intensity, the impact of new lower-priced bread products, and the drivers behind weakness in the non-branded 'other' category. He also questioned the CFO about the updated tariff outlook and the company's capital allocation strategy, noting the narrow gap between the dividend and EPS guidance.

Answer

CEO A. Ryals McMullian acknowledged an elevated but stable promotional environment, with new value products pressuring the traditional loaf segment. He attributed weakness in the 'other' category to lost private label business and softness in foodservice. CFO R. Steve Kinsey clarified that the lower tariff outlook is a structural update, not a delay. Regarding capital allocation, Kinsey stated the board reviews the dividend quarterly and has no stated target payout ratio, while McMullian added that the payout ratio is lower on a cash basis due to high D&A.

Steve Powers asked how the corporate restructuring will specifically enable increased speed and agility in the Americas organization, and sought clarification on the balance of investments between beer and beyond beer, particularly which is seen as the bigger growth driver.

Answer

CEO Rahul Goyal explained that the restructuring aims to bring leaders closer to the customer and consumer agenda, enabling faster execution, regional focus, and driving decision-making and accountability closer to markets. Regarding investments, he stated that marketing pressure will continue on big beer brands, while beyond beer needs to grow to impact the total enterprise, with the balance sheet used to augment the beyond beer portfolio. More details on the specific balance will be shared later.

Steve Powers asked CEO Rahul Goyal how the Americas restructuring would specifically enhance speed and agility. He also sought clarification on the balance of investments between the larger beer business (focusing on premiumization) and the Beyond Beer segment (as a potential larger growth driver), and how this influences capital allocation.

Answer

CEO Rahul Goyal explained the restructuring aims to bring leaders closer to the market, enabling faster execution, regional pivoting, and shifting resources based on opportunities, while driving decision-making and accountability closer to the markets. He stated that strong marketing pressure will continue for big beer brands, and Beyond Beer needs to achieve sufficient scale to impact the enterprise, with the balance sheet used to acquire scale brands. More details on the exact balance of investments are forthcoming.

Steve Powers asked how KDP became comfortable with the risks and opportunity costs of doubling down on coffee and separating it, while maintaining momentum in refreshment beverages. He also inquired about the implications of a partial Beverage Co IPO for KDP's existing debt, specifically whether it would remain with Beverage Co or transfer to Coffee Co.

Answer

CEO Tim Cofer stated that comfort with the undertaking stems from the management team's extensive experience in large acquisitions, integrations, and separations, emphasizing a robust plan, governance, and dedicated teams. He cited Q3 results as an early proof point of maintaining base business performance amidst transformation. SVP of Finance Jane Gelfand explained that the common element across separation options (spin or partial IPO) is a tax-free separation. She noted that a partial IPO could raise primary proceeds to accelerate deleveraging, but decisions on debt structure and allocation are still being actively considered to maximize flexibility.

Steve Powers asked about the company's comfort level with the risks and opportunity costs of doubling down on coffee and separating it while maintaining refreshment beverage performance. He also inquired about the implications of a potential partial BevCo IPO on existing Keurig Dr Pepper debt.

Answer

CEO Tim Cofer emphasized that execution is key, highlighting the management team's experience in large transactions and the robust plan of the Transformation Management Office. SVP of Finance Jane Gelfand stated that a tax-free separation is sacrosanct, and while a partial BevCo IPO is an option to raise primary proceeds and accelerate deleveraging, no decision has been made on the optimal separation mechanism or debt allocation, which is actively being considered.

Steve Powers asked for more perspective on China's market evolution, how P&G's business trended throughout the quarter, and the confidence in sustaining the observed progress.

Answer

Andre Schulten, CFO, highlighted the China team's successful fundamental changes across the business model, including go-to-market strategies, distributor incentives, local insights-driven innovation, and communication. He noted strong progress in baby care (20% growth), SK-II (12% growth), fabric care (5% growth), and Olay, expressing confidence in the interventions despite expected market volatility.

Steve Powers requested further elaboration on the Greater China business, specifically the evolution of the market, its trending throughout the quarter, and the confidence in sustaining the observed progress through the year.

Answer

CFO Andre Schulten attributed China's 5% growth to fundamental changes in the business model, including go-to-market strategy, distributor incentives, strong local innovation, and improved consumer communication and customer collaboration. He cited SK-II (up 12%), baby care (up 20%), fabric care (up 5%), hair care, and Olay as key drivers, expressing confidence in the progress despite expected market volatility.

Steve Powers of Deutsche Bank asked for perspective on incoming CEO Shailesh Jujurukar's unique attributes, Jon Moeller's goals as Executive Chairman, and P&G's strategy to create its own 'tailwinds' for growth in fiscal 2026.

Answer

President, CEO & Chairman Jon Moeller highlighted Shailesh Jujurukar's extensive leadership experience across P&G's largest businesses and markets. Moeller explained that the new restructuring program is a primary example of creating tailwinds by generating financial headroom to reinvest in innovation and commercialization to accelerate growth in a challenging environment.

Steve Powers inquired about Simply Good Foods' strategy for managing future competition within the strong low-sugar, high-protein category, and how these competitive dynamics are factored into fiscal 2026 business planning. He also asked CFO Chris Bealer about the company's appetite and capacity for M&A given current organic challenges and increased CapEx.

Answer

President and CEO Geoff Tanner acknowledged the competitive nature of the high-growth category, emphasizing Simply Good Foods' investments in R&D, sales capabilities, and an agile supply chain. He highlighted the mainstreaming of the category, leading to increased addressable market and focus on expanding physical availability outside traditional aisles. Tanner stressed the need for an agile organization with faster innovation and digital marketing. CFO Chris Bealer stated that the company's cash generation, low net debt, and structured framework allow for simultaneous investment in capital, share buybacks, and M&A, confirming no change in M&A capacity.

Steve Powers asked about Simply Good Foods' strategy for future competition in the high-growth, low-sugar, high-protein category, how competitive views have evolved, and how these are integrated into fiscal 2026 planning. He also questioned the impact of increased CapEx on M&A capacity.

Answer

President and CEO Geoff Tanner highlighted the category's strong growth and Simply Good Foods' investments in R&D, sales capabilities, and an agile supply chain to manage competition. He emphasized the company's focus on increasing organizational output and speed. CFO Chris Bealer affirmed that cash priorities remain unchanged, with the company capable of investing in CapEx, share buybacks, and M&A, given strong cash generation and low net debt levels.

Steve Powers requested more detail on the productivity interventions in PBNA to right-size the fixed cost structure, asking about the progress by the end of 2025 and if more work is needed in 2026. He also inquired about the status of the 'One North America' initiative, which was omitted from the remarks.

Answer

Chairman and CEO Ramon Laguarta clarified that Frito-Lay's interventions include rationalizing inefficient manufacturing nodes, warehouse infrastructure (due to automation and beverage business combinations), and right-sizing go-to-market labor. He noted productivity per FTE is back to levels of a couple of years ago and interventions will continue into 2026. CFO Jamie Caulfield added that significant carryover benefits from these actions are expected in H1 2026. Regarding 'One North America,' Ramon explained it's being tested in Texas, yielding benefits, and the final solution will be nuanced, not a one-size-fits-all approach.

Steve Powers requested more detail on the productivity interventions in PBNA aimed at right-sizing the fixed cost structure. He asked about the expected progress by the end of 2025 and whether more work would be needed in 2026. Additionally, he inquired about the current status of the "One North America" initiative, noting its omission from the current remarks.

Answer

Chairman and CEO Ramon Laguarta detailed Frito-Lay's interventions, including rationalizing inefficient manufacturing nodes, optimizing warehouse infrastructure (partially combining with beverage business), and right-sizing go-to-market labor as the market stabilizes. He noted that productivity per FTE is back to levels seen a couple of years ago due to fixed cost reductions over the past six to seven months, with further interventions expected in 2026 to invest in affordability and new platforms. EVP and CFO Jamie Caulfield added that significant carryover benefits from these actions are expected, especially in the first half of 2026. Regarding "One North America," Laguarta explained it's being tested in Texas, focusing on combining businesses in one warehouse for distribution, and the final solution will be nuanced, not a one-size-fits-all approach.

Steve Powers of Deutsche Bank inquired about the top one to three most critical initiatives for driving top-line momentum in the North American food (PFNA) and beverage (PBNA) businesses, and what success would look like by the end of the year.

Answer

Chairman and CEO Ramon Laguarta outlined key priorities, including stabilizing the food category through value investments, improving competitiveness in subsegments like tortilla chips, and relaunching major brands like Lay's and Tostitos. For beverages, the focus is on no-sugar colas and sports drinks. Laguarta defined success as achieving sequential top-line improvement to return to the low end of the company's long-term growth algorithm in the coming quarters.

Steve Powers asked for more detail on early elasticity analytics and where consumers are likely to be more accepting of pricing versus more price sensitive, as McCormick begins to implement tariff-related pricing in the Consumer business. He also asked Marcos Gabriel about the early planning thoughts for 2026 mitigation, specifically if the balance between pricing and sourcing/savings initiatives is even, or skewed one way.

Answer

Brendan Foley, Chairman, President, and CEO, stated it's too early to provide real insight on trends or outcomes regarding elasticity, as they have very little data. He expressed confidence in their analytics to predict impacts. Marcos Gabriel, Executive Vice President and CFO, stated that 2026 mitigation is more skewed towards savings (CCI, productivity, alternative sourcing) across all lines of the P&L, with the residual being addressed through surgical price initiatives.

Steve Powers asked about McCormick's planning posture regarding pricing implementation in response to tariffs, specifically seeking details on early elasticity analytics in the consumer business and expectations for consumer acceptance of pricing. He also inquired about the early planning thoughts for 2026 mitigation, asking if the balance between savings/productivity initiatives and pricing is skewed towards one over the other.

Answer

Chairman, President, and CEO Brendan Foley stated it's too early to provide real insight into elasticity trends from early pricing data, but expressed confidence in the analytics used. Executive Vice President and CFO Marcos Gabriel indicated that for 2026 mitigation, the approach is more skewed towards savings and productivity initiatives (CCI across all P&L lines, alternative sourcing), with surgical pricing as the residual lever.

Steve Powers questioned the decision to slightly lower the brand marketing outlook rather than reinvesting efficiencies to support top-line growth, and asked if the second-half contribution from innovation and distribution would be evenly spread.

Answer

Chairman, President & CEO Brendan Foley clarified that the outlook change reflects productivity gains from CCI, not a reduction in investment intensity, and that A&P spending will still be up significantly year-over-year in the second half. He confirmed that the benefits from innovation and distribution are expected to be evenly contributed across Q3 and Q4, while any surgical pricing would be more weighted to Q4.

Steve Powers asked why the company slightly reduced its brand marketing outlook instead of reinvesting efficiencies, and whether H2 distribution and innovation gains would be skewed to Q3 or Q4.

Answer

CEO Brendan Foley clarified the change reflects CCI productivity in media buying, not a pullback in investment, which will still increase year-over-year in H2. He noted they constantly reinvest savings, citing hot sauce in Q2. He expects new item and distribution gains to be evenly spread across Q3 and Q4, while any surgical pricing would likely be more weighted to Q4.

Steve Powers asked about Lamb Weston's customer service scorecard in North America, encompassing product quality and order fill rates, inquiring if it is universally strong or if there are still areas prioritized for improvement. He also asked for a timeline for the new Argentina facility to reach target utilization levels and how competitive activity in Brazil might impact its ramp-up.

Answer

CEO Mike Smith acknowledged that there are still opportunities for improvement in customer engagement and key metrics, which the company is actively addressing through structural changes, personnel adjustments, and innovation. He emphasized a continuous drive for higher commitment and service. Regarding the Argentina facility, Mr. Smith confirmed it is operational, actively qualifying products, and ramping up, but noted that reaching target utilization takes time, similar to other line startups, with much of its capacity destined for the Brazilian market.

Steve Powers asked about Lamb Weston's customer service scorecard in North America, specifically if it's universally strong or if there are still areas for improvement. He also inquired about the timeline for the new Argentina facility to reach target utilization levels and the impact of competitive activity in Brazil.

Answer

CEO Mike Smith acknowledged that while they track customer engagement and metrics regularly, there are still opportunities for improvement, which they are addressing through structural changes, personnel adjustments, and innovation, emphasizing a continuous drive for higher service. He confirmed the Argentina plant is operational and ramping up, noting that reaching target utilization takes time, similar to other startups, and much of its capacity will be exported to the Brazilian market.

Steve Powers from Deutsche Bank requested clarity on the 'positive customer momentum' assumed in the fiscal 2026 outlook, asking if it reflects carryover business or new, incremental wins. He also asked how the company is assessing and preparing for risks related to potential new tariffs and trade policy changes.

Answer

President & CEO Mike Smith confirmed the momentum includes both carryover from strong Q4 volumes and new business wins, citing a large QSR chain's transition to frozen fries as an example. CFO Bernadette Madarieta addressed the tariff risk, noting that while they supply most customers regionally, the primary impact would be on imported oil and ingredients. She quantified the potential impact of the proposed August 1 tariffs at approximately $25 million.

Steve Powers sought clarification on the full-year EBITDA guidance, questioning the confidence in staying above $1 billion given tariff headwinds. He also asked if the strategic recalibration in fragrances and cosmetics creates an opportunity cost for the skincare initiatives.

Answer

CFO Laurent Mercier confirmed the math, stating that while H1 EBITDA is pressured by tariffs, productivity actions and savings from the 'all in to win' plan will be at full speed in H2, providing confidence in exceeding $1 billion for the full year. CEO Sue Nabi addressed the strategy question by affirming that while scenting is the primary focus, skincare remains a key part of the company's future. She noted investments in skincare will be more radical and careful, leveraging the brands' small size for natural growth without diverting essential resources from the core fragrance business.

Steve Powers questioned the confidence in the full-year EBITDA guidance of over $1 billion, given the stated tariff headwind. He also asked if the strategic recalibration in fragrances and cosmetics creates an opportunity cost for skincare initiatives.

Answer

CFO Laurent Mercier expressed confidence in exceeding $1 billion in EBITDA, explaining that while tariffs hurt H1, productivity actions and savings from the "All In to Win" plan will accelerate in H2. CEO Sue Nabi stated that while the company is betting heavily on scenting, skincare remains a key part of Coty's future and investments will be managed carefully without detracting from the core business.

Steve Powers of Deutsche Bank asked for a breakdown of the gap between retail sales and net sales shipments entering fiscal 2026, questioning the contribution from trade inventory, discounting, and channel mix, and how this gap is expected to evolve through the year.

Answer

EVP and CFO Akhil Shrivastava stated that inventory was significantly reduced in fiscal 2025 across travel retail, China, and the U.S., and he expects the gap between retail and net sales to narrow going forward. He noted that in North America, the strategic shift to different channels creates some mix dynamics. President and CEO Stéphane de La Faverie added that the company's fiscal 2026 plan includes gradual net sales improvement as retail and net sales become more aligned, with the most significant inventory reduction work in Travel Retail having been completed in fiscal 2025.

Steve Powers noted that case growth outpaced revenue growth, resulting in a lower price per case, and asked for a breakdown of the drivers, such as promotions, geographic mix, or segment mix.

Answer

Hilton Schlosberg, Vice Chairman & CEO, confirmed the analyst's assessment. He explained the lower price per case was a result of several mix shifts, including a record 41% of sales coming from international markets, significant growth in lower-priced 'affordable brands' abroad, and faster growth in the Strategic Brands segment relative to the core Monster Energy Drinks segment.

Steve Powers from Deutsche Bank asked for confirmation of the long-term 25% EBITDA margin target and sought more detail on why management is confident the direct delivery business can 'snap back' to its prior trend after Q3.

Answer

CFO David Hass reaffirmed the 25% long-term EBITDA margin target, noting that significant levers like price harmonization have not yet been pulled. He explained the confidence in a 'snap back' is based on the strong underlying demand seen in other business segments (exchange, refill), robust Q1 growth pre-disruption, and an acceleration in digital customer acquisition, indicating the problem is fulfillment, not demand.

Steve Powers asked about the potential consequences of organically reducing complexity, specifically the potential headwind to organic growth from SKU rationalization and the need for incremental restructuring and associated cash costs.

Answer

CFO Amit Banati stated it was premature to specify the impacts while the strategic review is ongoing, but noted the long tail of SKUs could be addressed 'fairly quickly.' He pivoted to cash flow, highlighting that first-half performance was strong and the full-year outlook for cash remains in the same neighborhood as the prior year, despite lower earnings guidance.

Steve Powers asked about the potential negative impact on organic growth from simplifying the portfolio and reducing complexity, and also inquired about the potential need for incremental restructuring and the associated cash costs to reach the desired operational state.

Answer

CFO Amit Banati responded that it was premature to comment on specifics while the broad strategic review is underway. He noted that addressing the long tail of SKUs is a near-term opportunity. Banati stated that the outcome of the strategic review will inform any future decisions regarding restructuring and associated costs, while also highlighting that cash flow in the first half of the year was ahead of the prior year.

Steve Powers sought clarity on the 2025 objective for the Skin Health & Beauty business, asking whether the goal is merely stabilization or if the company realistically aims for growth next year.

Answer

Executive Thibaut Mongon stated unequivocally, 'We are focused on returning the segment to growth and expect to do that in 2025.' He explained the strategy involves fueling growth in EMEA and countering U.S. category deceleration through better execution of the company's playbook, including improved innovation and marketing campaigns, rather than relying on a recovery in Asian consumer sentiment.

Steve Powers of Deutsche Bank pressed for more detail on Q2 gross margins, questioning why offsets like pricing and the Rhode acquisition wouldn't be more significant. He also sought to confirm the math suggesting the price increase should offset the annualized tariff impact.

Answer

Senior VP & CFO Mandy Fields acknowledged the positive offsets but reiterated a balanced approach due to the flow-through of higher-cost inventory and ongoing tariff uncertainty. CEO & Chairman Tarang Amin confirmed the logic that the price increase could offset the estimated $50 million annualized tariff impact, but emphasized the company is modeling consumer elasticity conservatively until the actual market response is observed.

Sought confirmation on the impact of lapping last year's ERP disruption in the Q3 outlook and asked for details on rising inflationary pressures and the company's pricing strategy for the remainder of 2025 and into 2026.

Answer

Management confirmed that the 2.5% favorable impact from lapping last year's ERP disruption is factored into the Q3 guidance. They noted that full-year inflation expectations have increased from 2.5% to 4.5%, primarily due to poor crop yields from the hot, dry weather. Significant pricing actions to recover these costs are planned for 2026, as most negotiations occur annually in Q1, though some smaller price increases will happen this year.

Steve Powers of Deutsche Bank sought confirmation on the Q3 outlook, considering the favorable lap of a prior-year ERP disruption, and inquired about the scale of recent inflationary pressures and potential pricing actions for 2026.

Answer

CFO Ruben Baldew confirmed the 2.5% favorable ERP comparator for Q3 but cautioned that July started weak due to weather. He detailed that the full-year inflation forecast has risen from 4% to 4.5%, primarily due to poor pea crop yields from the hot, dry weather. Baldew stated that while some pricing will be taken, most of the inflation recovery will be addressed in 2026 negotiations, balanced against the need to remain cost-competitive.

Steve Powers of Deutsche Bank pressed for clarity on why Q4 consumption guidance wasn't stronger given Q3's momentum and sought a definitive answer on whether fiscal 2026 is expected to be a 10%+ growth year.

Answer

CEO Darcy Horn Davenport reiterated that minor puts and takes influenced the outlook, with a short-term pallet gain in Q4 being offset by assumptions of increased competitive pressure. She clarified that while 10%+ growth is the company's long-term algorithm and goal, they are still in the planning process and cannot commit to a specific number for fiscal 2026 at this time.

Steve Powers from Deutsche Bank asked for details on the company's second-half plans to stimulate demand, the role of value-oriented products, and the company's perspective on competition, particularly the upcoming launch from Blue Buffalo.

Answer

CEO Billy Cyr outlined three key drivers for the second half: a new advertising message, expanded distribution including a significant club store test, and new product innovation. COO Nikki Beatty added that the new marketing creative will emphasize health credentials and that they will increase focus on targeted social and digital channels to reach both the general dog population and specific MVP consumers.

Steve Powers asked for details on second-half demand-driving plans, the role of value-focused products, and the company's perspective on competition, particularly the upcoming launch from Blue Buffalo.

Answer

CEO Billy Cyr outlined a multi-pronged approach for the second half, including new advertising messaging, significant distribution expansion in the club channel, and new value-oriented product innovation. COO Nikki Beatty added that the new marketing campaign will emphasize health credentials and will be supported by increased spending in targeted channels like social and digital to complement broad awareness efforts.

Steve Powers of Deutsche Bank asked about the VMS (vitamin) business, specifically how easily separable it is and what the stranded overhead considerations might be. He also questioned how the company benchmarks its spending and capabilities against peers who are launching major restructuring programs.

Answer

President and CEO Rick Dierker explained that the vitamin business is fairly compartmentalized with separate manufacturing and dedicated functional teams, though some corporate costs would need to be addressed in a sale. Regarding spending, Dierker emphasized the company's 'pay as you go' philosophy, preferring to embed long-term investments into its evergreen model rather than pursuing large, one-off restructuring programs.

Steve Powers of Deutsche Bank sought more detail on the prioritization of innovation within the 2030 strategy. He asked whether the focus would be on more innovation overall, more premium products, or innovation with better ROI, building on the success of the 2025 strategy.

Answer

Chairman, CEO & President Noel Wallace clarified that the new strategic focus is on enhancing H2 (breakthrough) and H3 (transformational) innovation, which requires longer development times and more resources for incubation. He also noted a need to improve the agility of H1 (incremental) innovation in a few specific geographies where the company needs to be quicker.

Steve Powers questioned the current pricing environment, asking for Kimberly-Clark's outlook on pricing, competitive promotional activity, and the potential for consumer acceptance of any future price increases amid inflationary pressures.

Answer

Chairman and CEO Mike Hsu stated the company's philosophy is to drive volume and mix while maintaining discipline on pricing net of commodity costs (PNOC), aiming for it to be zero or positive. He clarified that promotions are used tactically for innovation trials, not for base growth, and that promotional intensity remains below pre-COVID levels. He affirmed confidence in their ability to use pricing to offset commodity inflation where necessary.

Steve Powers from Deutsche Bank sought confirmation that the normalized EPS run-rate exiting fiscal 2026 is around $7 after adjusting for ERP impacts. He also asked about the potential risk of structural destocking by retailers as they leverage Clorox's improved capabilities.

Answer

CFO Luc Bellet confirmed that adding the ERP impact back to the midpoint of the guidance range is the correct way to approximate the normalized EPS base. CEO Linda Rendle stated she does not see a structural destocking risk, as the ERP implementation primarily enhances Clorox's internal efficiency and cost structure, rather than fundamentally altering retailer inventory management processes.

Steve Powers from Deutsche Bank asked about the expected rebound timeline for Mexico and India, other potential market watch-points for Q3, and where the implied second-half reinvestment would be targeted.

Answer

Chairman and CEO James Quincey expressed confidence in a rebound for Mexico, citing an easier comparison and strong marketing plans. For India, he remains bullish long-term, pointing to new campaigns and a refranchising deal to boost execution. He confirmed that second-half reinvestment is partly due to productivity savings being realized early and is intended to drive momentum for the rest of 2025 and into 2026.

Steve Powers questioned the company's confidence in returning the Meow Mix and Milk-Bone brands to volume growth, given discretionary headwinds. He also asked about the implied price elasticity on the coffee portfolio outside of the high-growth Café Bustelo brand.

Answer

CEO & Chair of the Board Mark Smucker expressed confidence in Meow Mix due to a growing cat population and brand building, and in Milk-Bone due to its broad portfolio and innovation. CFO Tucker Marshall added that Milk-Bone is lapping a plant shutdown and retailer destocking. He confirmed that with Café Bustelo's strong momentum, the implied elasticity on other coffee brands is higher to reach the 0.5 portfolio average.

Steve Powers sought to clarify if the expected "good balance" of volume, price, and mix in North America for the second half meant all three components would be positive. He also questioned if Kellanova could maintain its return on investment as competitors also increase their spending.

Answer

Steven Cahillane, Chairman, President and CEO, avoided a specific forecast but stressed the return to volume growth is the key focus. He reiterated that the competitive environment is rational and returning to pre-pandemic norms, not becoming overly aggressive. He expressed confidence that investing in strong brands, innovation, and quality merchandising will continue to drive the business effectively in this environment.