🔹 EPS: $0.66 (Est. $1.05) 🔴
🔹 Revenue: $1.60B (Est. $1.67B) 🔴; DOWN -8% YoY
🔸 Increased share buyback by $250M
CUTS FY25 Guidance:
🔹 Revenue: $6.35B-$6.45B (Prev. $6.6B-$6.8B; Est. $6.65B) 🔴
🔹 Adj EPS: $3.05-$3.20 (Prev. $4.15-$4.35; Est. $4.20) 🔴
🔹 Adj EBITDA: $1.17B-$1.21B (Prev. ~$1.38B) 🔴
Key Q2 Financial Metrics:
🔸 Net Sales: $1.60B (-8% YoY)
🔸 Adjusted Operating Income: $178M (-41% YoY)
🔸 Adjusted EBITDA: $282M (-25% YoY)
🔸 Adjusted Net Income: $95M (-55% YoY)
🔸 Adjusted Diluted EPS: $0.66 (-54% YoY)
Q2 Segment Performance:
North America:
🔸 Revenue: $1.07B (-8% YoY)
🔸 Volume declined 5% due to lower restaurant traffic and customer share losses.
🔸 Price/Mix declined 3% reflecting increased trade support.
International:
🔸 Revenue: $529M (-6% YoY)
🔸 Volume declined 6% due to soft restaurant traffic and competitive pricing.
Restructuring Update:
🔹 Recognized $159M pre-tax charge in Q2 related to the restructuring plan.
🔹 Actions include facility closures, production curtailments, and cost-saving measures to drive $55M in savings for FY2025.
Strategic Updates:
🔸 Increased share repurchase authorization by $250M to a total of $750M.
🔸 Increased quarterly dividend by $0.01 to $0.37/share.
CEO Commentary:
🔸 “Higher manufacturing costs and softer volumes impacted results. We’re taking steps to address near-term challenges with restructuring and cost-saving initiatives while adapting to a dynamic market.”