A：Beginning in fiscal 2026, the snacking and meals and beverages retail business in Latin America is managed under the Meals and Beverages segment.

A：The challenges discussed include a decrease in organic net sales, a decline in consumption, and cost increases and top line headwinds. The performance indicators include maintaining marketing support for the brands while mitigating cost pressures, as well as continuing to focus on consumer needs and evolving behaviors.

A：The strategic priorities outlined involve a focus on consumer and their evolving needs, using a consumer-led innovation framework to guide brand activations and ensuring an attractive value proposition for success.

A：The meals and beverages leadership brands saw stable share performance in the first quarter despite consumption down 1%, with several brands benefiting from at-home cooking behavior.

A：Consumer behavior, particularly with younger generations, has driven the momentum in the company's soup portfolio, with Swanson posting script consecutive quarters of millennial buy rate gains and the Pacific brand experiencing dollar consumption growth and volume consumption gains.

A：Pacific and Rails were strong performers that gained share on both a dollar and volume basis, however, select price increases put pressure on the mainstream RTS portfolio consumption, resulting in market share declines.

A：The condensed soup portfolio highlights include over half of the portfolio being cooking soups, with Uncle Ned's cooking soups achieving growth in dollar share and consumption for the past 14 quarters, driven by holiday recipes and everyday occasions.

A：The company entered into agreements to acquire a script interest in Ed larona entities, which are privately held producers of tomato-based pasta sauces. This will solidify the strategic partnership with the Rio family, provide access to high-quality ingredients, expand innovation capabilities, and reinforce the commitment to producing pasta sauces with the finest ingredients.

A：The snacks business is adapting by providing healthier options such as avocado oil in their chips portfolio and has an innovation pipeline for both short and long-term to further improve health and wellness benefits, aligning with consumer growth pillars.

A：Organic net sales declined by 1% due to volume declines, partially offset by positive net price realization and the impact of partnering contract brands. The company is focusing on share recovery in pretzels and crackers, prioritizing consumer value, and accelerating their innovation pipeline.

A：The peppered farm, fresh bakery, and cookies business had relatively flat consumption but saw standout performance in cookies, where they outperformed the category with successful innovation launches and gained share in both dollars and volume.

A：The salty portfolio, particularly the Kettle brand, is performing well with consumers looking for better-for-you offerings, benefitting from a club promotion that shifted into the first quarter from Q2 last year.

A：The pretzels business is facing share and consumption pressure, but Snack Factory saw share and volume gains for the quarter. Strategies for growth include a new white Peppermint LTO for the holiday season, Club impact, and a new visual identity to boost shelf presence.

A：The company is encouraged by Goldfish's successful Back to School campaign, which beat key competitors and helped Goldfish finish Q1 as the cracker share leader. Despite this, consumption declined in the quarter, and the company is confident in returning Goldfish to growth, leveraging incremental marketing support, innovation, and a strategic approach to value.

A：The company's strategic priorities include strong day to day execution, a well-positioned portfolio with leadership brands, the ability to provide at home cooking options, elevated experiences, high quality food at the right value, continued focus on omnichannel execution, brand activation, and innovation, particularly in meals and beverages. The company remains focused on brands and offerings that will shape at home cooking momentum and is committed to enhancing its snacks portfolio, with a top priority of reigniting Goldfish. Additionally, the company is focused on productivity and cost savings initiatives to mitigate inflation and invest in brands while strengthening its overall foundation to drive sustainable, profitable growth.

A：The key financial highlights of the first quarter include organic net sales decreased 1%, adjusted EBIT decreased $Ly to $MP dollars, adjusted EPS decreased 14 cents, net sales were $Ly billion dollars, and adjusted marketing and selling expenses decreased $urine prior year. The decrease in adjusted EBIT was primarily due to lower adjusted gross profit, which was partially offset by lower adjusted administrative and marketing expenses. Gross tariffs had a negative impact of script basis points on the adjusted gross profit margin in the quarter.

A：The company plans to manage the impact of tariffs in the second quarter by increasing promotional activity and marketing investment to further strengthen top line performance. The company expects adjusted marketing and selling expenses to be at the upper end of the target range of 9% to 10% of net sales. Adjusted administrative expenses are expected to decrease 9%, mainly due to the benefit from cost savings initiatives and lower incentive compensation.

A：The impact of tariffs on the company's first quarter was a decrease of 14 cents to adjusted EBIT and a net impact of 4 cents to EPS. Lower interest expense provided a 1 cent benefit, but there was a 1 basis point increase in the adjusted tax rate, which was EPS dilutive by 1 cent. The divestiture of Nusa also had a 1 cent negative impact for the quarter.

A：The decrease in reported net sales for the meals and beverages division in the first quarter was mainly driven by declines in US soup, Canada spaghetti & paste, Mexican sauces, and 8-E beverages, partially offset by gains in Rallies. An unfavorable volume mix decline of script was partially offset by favorable net price realization of Ly.

A：The snacks segment reported a script decrease in net sales, which included the impact of the Pop Secret divestiture. Organic net sales decreased due to lower net sales in third-party partner and contract brands, with Snyders of Hanover Pretzels, Fresh Bakery, Goldfish crackers, and Cape Cod potato chips partially offset by gains in Peppers farm cookies. The organic net sales were impacted by an unfavorable volume mix decline of Ed and a favorable net price realization of Ed.

A：In the first quarter, the company generated $224 million in operating cash flow, which was in line with the prior year. Capital expenditures were $107 million, and the company paid out $100 million in dividends and repurchased $24 million in anti-dilutive share repurchases. As of November 2025, the company has approximately $174 million remaining under its anti-dilutive share repurchase program.

A：The company reaffirms its full year fiscal script guidance ranges provided earlier and states that the La Romano acquisition is expected to be neutral to the reaffirmed fiscal script adjusted EPS guidance for the year. The company anticipates closing the transaction in the second half of fiscal 2025. Further details on the acquisition can be found in the company's form 8-K filed with the Securities and Exchange Commission.

A：The company's strategy to mitigate the impact of tariffs includes continued inventory management, supplier collaboration, alternative sourcing opportunities, productivity and cost savings, and where necessary, surcharge and responsible pricing actions. The company expects to mitigate approximately 60% of the impact through these actions.

A：The investment in La Regina is significant for Rails as it supports the company's conviction in the rail segment and strengthens the partnership with the proprietary producer of tomato-based sauces. It ensures a secure supply of high-quality rail source and underpins the growth story of the brand. Moreover, the partnership with the Romano family will facilitate collaboration in areas like innovation to support the growth of the brand.

A：The investment structure involves acquiring 49% of La Regina for $286 million, representing a high single-digit EBITDA multiple. It is expected to be EPS neutral in fiscal 26. There will be two payments: a $146 million cash payment in the second half of the year, followed by a $140 million payment in the second year for the remaining 51% ownership. Additionally, there is a call option to purchase the remaining stake four years after the close of the transaction.

A：For the second half of the fiscal year, the company expects the snack category to stabilize as comps become easier, which should allow for an improvement in overall category performance. The company is focusing on what it can control and is encouraged by green shoots in performance across various subcategories, such as the back to school period for goldfish. However, it is critical to ensure that initiatives like goldfish recovery translate into sustainable growth and inform the trajectory of the snacks business in the second half.

A：The company's strategy involves elevating the focus on consumer needs across the organization, which has been a priority since the CEO's appointment. They are approaching this by identifying mega trends such as premiumization, flavor exploration, health and wellness, and cooking and comfort for snacking, and ensuring that innovation is consumer-focused.

A：The three key pillars the company is focusing on are enhancing the consumer experience, which ties back to premiumization and flavor exploration; prioritizing health and wellness; and offering what the company calls 'premium snacking'.

A：The company aims to maintain a focus on value that is important across the overall consumer spectrum. This strategy applies to both divisions and is crucial in ensuring affordability and value in all aspects of the business.

A：The soup business has faced challenges with the need to raise prices to cover costs while also providing value to consumers, leading to share losses in eating soup. The company has taken pricing actions in response to inflation and is being surgical about it. Although this has led to short-term pressures, the company is taking selective incremental actions to ensure competitiveness during the soup season, resulting in a stabilization of market share and slight growth in the RTS category.

A：The acquisition of La Regina is expected to have a favorable impact on operations and margins. The company will consolidate 100% of La Regina's P&L into its business, resulting in a significant gross margin impact. A minority interest line will account for 51% of La Regina's earnings, and there will also be additional interest expense. Over time, the deal is expected to be neutral to earnings per share (EPS) but is believed to be accretive. This acquisition provides flexibility to invest in the business, impacting the brand and channel strategy more positively.

A：The new leader is focused on the company's ability to grow, recognizing the powerful brands they have and the quality of the people within the organization. The priority is on ensuring the company focuses on the right things, has the right people working on them, and makes the right investments.

A：The new leader brings experience from working with both larger cap food companies and smaller, higher growth companies. This background provides a unique perspective on how larger and smaller companies operate and how they can be nimble. The aim is to apply this knowledge over the next several years to add value and streamline the company's operations.

A：To reignite growth in the snacks segment and specifically with Goldfish, the focus is on several areas: ensuring Goldfish's message and presence are clear, innovation within the brand portfolio like the Goldfish pretzel innovation, optimizing price and pack architecture, and improving omnichannel execution. The aim is to provide the full power of the franchise while reinforcing what Goldfish stands for.

A：The company has been handling inflation by offsetting 70% of the cost pressures, primarily through the efforts of the supply chain team. Inflationary impacts are expected to continue throughout the year, with Q2 seeing a similar margin pressure as Q1. However, as the year progresses, the impact is expected to decrease, particularly in the second half, due to lapping some of the Q4 tariff impacts and the realization of cost improvement initiatives. The company is not satisfied with the current gross margins but has cost initiatives in place to improve them over time.