EBITDA Guidance and Cadence
Q: You had a strong Q1; why not raise EBITDA guidance?
A: Management believes it is prudent to reaffirm guidance after the first quarter of the first full year as the business performed as expected. They remain confident and prefer to maintain guidance until they have more data. "

Margin Outlook and Expectations
Q: What's the outlook for gross margin throughout the year?
A: The company expects full-year gross margin to be roughly in line with Q1 performance of 29.2%, with smaller fluctuations between quarters. Q1 benefited from higher volume. "

Supply Chain Modernization and Margin Expansion
Q: How will investments in supply chain unlock margin improvements?
A: The company plans to expand margins by 500 basis points, from 9% to 14% run rate by 2026, through supply chain modernization. Margin enhancement will follow investments over the next few years, impacting both margins and top-line growth. "

Volume Outlook and Market Share Progress
Q: Is the outlook for volume decline of low single digits still reasonable?
A: Management anticipates full-year volume to be down slightly, with a return to flat dollars between -1% to +1%. The gap between price and volume is narrowing, which is positive for the business and category. "

CapEx Expectations and Free Cash Flow
Q: CapEx was light in Q1; what's the expectation for CapEx this year?
A: Full-year CapEx expectations remain unchanged; the timing of some investments was pushed out, causing lighter Q1 CapEx. CapEx is expected to increase in Q2 and Q3, with full-year numbers unaffected. "

Top-Line Drivers
Q: Where do you see key top-line improvement drivers ahead?
A: Supply chain improvements are a catalyst for top-line growth, enabling a return to normal promotional activity. The new sales force is gaining experience, improving relationships, and driving business forward. Positive results are seen in growth of 4 of the big 6 brands, like Frosted Flakes, using new marketing models. "

Price/Mix Expectations
Q: How do you expect price/mix to evolve through the year?
A: Price realization benefited from lapping last year's price increase and improved supply reliability in Q1, allowing more promotional activity. Going forward, the company aims to continue realizing price gains, though less significantly than in prior years due to fewer large price actions. "

Seasonality of Business
Q: How do you think about seasonality, especially Q4 vs. Q1?
A: Q1 is traditionally the highest volume quarter due to New Year activations and promotional activity, while Q4 is lower due to holiday disruptions like Thanksgiving and Christmas, which divert focus from routine purchases. "

Master Brand Advertising Strategy
Q: Has anything changed with your master brand advertising strategy?
A: The company will continue its multi-brand advertising approach, which effectively markets multiple brands simultaneously with a similar message, yielding better returns by reaching consumers more efficiently. "

Trade Inventory Load Impact
Q: How much did trade inventory load push sales into Q1 from Q2?
A: There was about a 1 percentage point impact on first-quarter volume due to timing of shipments, which is expected to reverse in Q2, directly affecting gross profit and EBITDA. "

Confidence in Guidance
Q: Do you have more visibility in achieving full-year guidance?
A: Management remains confident in their guidance, with the business performing as expected and momentum building. They noted the lapping of a one-time $16 million insurance payment from last year, which growth will absorb. "

Consumer Behavior Shift Impact
Q: Are you seeing benefits from consumers shifting to food at home?
A: Currently, the company is not observing any meaningful change in the business trajectory from consumers economizing by shifting to food at home, though they acknowledge it could be a potential tailwind in the future. "