Yasmin Beswandi

An analyst from Bank of America asked for details on the Q2 North America organic sales outlook, seeking to quantify impacts from Easter timing, a plant closure, and lapping last year's Lunchables issues. They also questioned if North American volumes must turn positive in the second half to meet guidance.

Answer

Executive Andre Maciel explained that Q2 top line is expected to be better than Q1, with a 90-100 bps tailwind from the Easter shift. He anticipates improvements in the ACCELERATE platforms and Lunchables. Crucially, he stated that the midpoint of the company's full-year guidance does not assume that total company volume will turn positive in any quarter.

An analyst for Yasmin Beswandi asked for a breakdown of Q2 North America organic sales drivers, including the impact of Easter timing and prior-year Lunchables issues, and whether positive volume is needed in the second half to meet guidance.

Answer

CFO Andre Maciel projected that Q2 top line would improve over Q1, benefiting from a 90-100 bps tailwind from the Easter shift. He also anticipated growth restoration in ACCELERATE platforms like Ore-Ida and improvement in Lunchables. Critically, Maciel clarified that the midpoint of the full-year guidance does not assume North American volumes will turn positive in any quarter.

An analyst from Bank of America asked for details on Q2 North America organic sales drivers and whether positive volume growth was needed in the second half to meet guidance.

Answer

EVP & Global CFO Andre Maciel projected Q2 top-line improvement over Q1, citing a 90-100 bps tailwind from the Easter timing shift and better performance in ACCELERATE platforms and Lunchables. He clarified that the full-year guidance midpoint does not require total company volume to turn positive in any quarter.