Latest news with #COGS
Yahoo
25-07-2025
- Business
- Yahoo
Nestle SA (NSRGF) Q2 2025 Earnings Call Highlights: Navigating Growth Amidst Economic Challenges
Organic Growth: 2.9% in the first half of 2025. UTOP Margin: 16.5%, down 90 basis points. Gross Margin: Decreased by 60 basis points. Pricing: 2.7% increase, with significant increases in confectionery and coffee. RIG (Real Internal Growth): 0.2% in the first half. Advertising and Promotion (A&P): 8.6% of sales in the first half. Fuel for Growth Savings: CHF150 million recognized in H1, targeting CHF700 million for the full year. Net Financing Costs: Slightly higher due to increased average net debt. Underlying Tax Rate: Slightly lower at 22%. Free Cash Flow: Seasonally weaker in H1, impacted by lower EBITDA and higher inventory costs. Net Debt: Increased due to dividend payment, partially offset by CHF2.5 billion from Swiss franc strengthening. Guidance: Full-year UTOP margin expected to be at or above 16%. Warning! GuruFocus has detected 4 Warning Sign with NSRGF. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Nestle SA (NSRGF) achieved a 2.9% organic growth in the first half of 2025, with broad-based sales growth across geographies and categories. The company maintained a solid UTOP margin of 16.5% despite increased investments and headwinds from tariffs and foreign exchange. Nestle's Fuel for Growth program is on track, with over CHF350 million in savings expected to benefit the P&L in the second half, aiming for a CHF700 million target for the full year. Nespresso delivered another quarter of solid growth, maintaining positive RIG and benefiting from pricing ahead of commodity increases. Nestle is implementing strategic initiatives such as the Nestle Virtuous Circle and digital transformation to drive growth and improve market share. Negative Points Margins are expected to be significantly lower in the second half due to increased input costs and tariff impacts. Sales were negatively impacted by foreign exchange movements, particularly due to the strengthening of the Swiss franc. The Greater China market experienced a negative impact on RIG due to a reversal of previous sell-in growth, and the company anticipates a headwind for up to a year as it shifts its model. The VMS business faced challenges due to the discontinuation of some private label business and weaker performance in mainstream brands. Free cash flow was lower in the first half, impacted by higher working capital requirements and FX headwinds, raising concerns about its ability to cover dividends. Q & A Highlights Q: What is your guidance for COGS inflation for this year, and how does it impact pricing strategies, particularly in categories like Coffee and Confectionery? A: Laurent Freixe, CEO, explained that the company faces unprecedented commodity price increases, necessitating pricing actions. Most of these actions have been implemented, and while there might be slight additional adjustments, the majority of pricing changes are already in place. Anna Manz, CFO, added that COGS inflation is expected to remain high single digits for the full year, with efficiencies offsetting some of the impact. Tariffs are expected to have a small impact, estimated at a couple of tens of basis points for the group. Q: Can you elaborate on the strategic reset in Greater China and its expected impact on growth? A: Laurent Freixe, CEO, stated that the strategic reset in China involves rebalancing the focus from distribution to consumer demand, aligning with the government's agenda to support consumption. This adjustment is necessary due to the current deflationary environment and will have a controlled impact over the next quarters. The company is confident in its leadership and market position in China, expecting strong performance once adjustments are made. Q: How is Nestle addressing the challenges in the VMS segment, and what is the scope of the strategic review? A: Laurent Freixe, CEO, mentioned that the focus will be on premium brands like Garden of Life, Solgar, and Pure Encapsulations, which align with Nestle Health Science's strategic goals. The review includes mainstream and value brands, potentially leading to divestments. The non-strategic brands under review represent about CHF1.2 billion in revenue with low single-digit profit margins. Q: What are the current trends and competitive dynamics in the PetCare category, particularly in the US? A: Laurent Freixe, CEO, emphasized the strong fundamentals of the PetCare category, driven by demographic trends like aging populations and urbanization. While there is little input cost inflation, the category remains healthy with significant growth potential. The company is focused on premiumization and innovation to drive future growth. Q: How is Nestle managing its free cash flow and working capital, given the challenges in the first half of the year? A: Anna Manz, CFO, acknowledged the lower free cash flow in H1 due to margin reductions, FX headwinds, and working capital outflows. The company is focused on managing inventory levels and driving efficiencies to improve cash flow. While cash flow is expected to be lower this year, Nestle remains on track to deliver good cash flow, subject to commodity price movements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Business Insider
16-07-2025
- Business
- Business Insider
Stable Dividend Puts Verizon Stock (VZ) on Bullish Growth Trajectory
It's been some time since Verizon Communications' (VZ) stock has put in a strong performance, and its generous dividend is what keeps it from looking even worse. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. For example, this year alone, VZ is up just 3% (around 9% when you factor in dividends), barely edging out the broader market. However, looking longer term, over the past three years, Verizon has declined by about 17%, which is nearly offset by dividends, during a period when the broader market delivered gains of more than 70%. As the U.S. telco sector shows clear signs of saturation and struggles with pricing power, the outlook remains bleak, not disastrous. However, it signals that Verizon is unlikely to accelerate revenue growth (especially above inflation) and will need to maintain tight cost control to preserve margins and continue generating strong cash flows. For now, an attractive and safe dividend yield, along with historically discounted valuations, keeps the investment case appealing. I still rate VZ as a Buy —especially if Treasury yields move lower, which would make the income angle even more compelling. With Q2 earnings set to be published on July 21st, I believe that any signs of ARPU stabilization and stronger pricing power—plus an earnings beat across the board—could be enough to help the stock move more consistently higher in the second half of the year. Verizon's Defensive Income Thesis Assuming that many investors defend the thesis of investing in Verizon as a defensive income payer with a mature business model, I believe it's crucial to highlight a few fundamentals that keep the core of this thesis healthy. The first point worth focusing on is real growth (inflation-adjusted) and profit quality (margins and cost control) as the backbone of the company's operational excellence. For example, in Q1 2025, Verizon's total revenues grew by 1.5%, while COGS increased by 1.4% over the same period. Considering that the latest U.S. Consumer Price Index (CPI) stands at 2.4%, this means revenue growth is actually running below inflation, implying a real drop in purchasing power, especially when factoring in a Q1 ARPU of $31.92, down 1.1% year-over-year. When adjusted for inflation, this suggests a real decline in Wireless retail core prepaid ARPU of around 3.5%. On the other hand, COGS growing below inflation has helped keep gross margins stable, at precisely 61% in both 1Q25 and 1Q24. So, at a minimum, for the income thesis to hold up, Verizon's solid base remains intact, supported by disciplined cost management and resilient margins, which in turn secure a healthy and attractive dividend yield of 6.5%. However, limited real growth and a declining ARPU highlight competitive pressure and weak pricing power, underscoring that the growth angle is more fragile, especially given the ongoing need for heavy infrastructure investment just to stay competitive. Free Cash Flow and Dividends Indicate Strong Finish in 2025 On the one hand, the trend for the year so far, given pricing headwinds and cost control measures, suggests stable operating cash flow, which should also translate to stable free cash flow, although not necessarily growing. However, Verizon's 2025 annual guidance indicates a midpoint that implies approximately 6% growth in CapEx—around $18 billion—while free cash flow is expected to increase by about 12.5% year-over-year, reaching the same $18 billion at the midpoint. What's interesting here is that revenue and EBITDA growth, at 2.4% and 2.75%, respectively, are significantly lower than the projected FCF growth, which suggests improved operational efficiency or better working capital management. This free cash flow growth (~12.5%) outpacing revenue and EBITDA growth hints at ongoing efficiencies driven by Verizon's well-established practices, like optimizing receivables cycles through prepaid plans and automatic debit, and managing supplier payments with longer terms to smooth out cash flow seasonality. Such robust cash flows support likely dividend payouts consistent with the company's historical payout ratio of about 58%, which today translates to a very attractive and, in my view, safe yield of around 6.5%. This is well above the current 10-year bond yields, below the trailing twelve months FCF yield of approximately 9.7%, and still leaves roughly 42% of free cash flow available for capital expenditures and debt reduction. What Verizon's Q2 Means for Investors If Verizon's business remains rock solid in terms of cash flow, why has the stock been drifting sideways or underperforming? In my view, the U.S. wireless market is clearly saturated, with no secular growth story, as Verizon's recent results show, revenues and ARPU are growing below inflation. Verizon also carries a high debt load, with about 63% of its capital structure financed by debt. While this is typical for a telco, it does limit flexibility in tighter credit conditions, such as those we currently have with higher interest rates. These two factors explain some of the market's skepticism around Verizon's outlook. Combine the lack of clear catalysts with sluggish growth and rising sector risks—from intense competition to disruptive technologies like Starlink—and Verizon could face additional pressure on pricing power over time. Still, looking ahead to Q2, expectations are for $33.7 billion in revenue (up 2.6% year-over-year) and a 3.4% EPS increase if Verizon beats the $1.19 consensus. Positive surprises—especially if ARPU stabilizes or declines less than anticipated—could spark renewed investor optimism and upside potential. Trading at a forward EV/EBITDA of around 11x—roughly 30% below the industry average and 6.7% below Verizon's own five-year historical average—Verizon could become a 6.5% dividend yield refuge if Treasury yields decline amid a slowing economy, attracting income-focused investors who value its historically compressed valuation multiples. Is Verizon a Buy, Hold, or Sell? Wall Street experts are currently split on Verizon's outlook. Over the past three months, of the 15 analysts covering the stock, seven are bullish and the other eight are neutral. Not a single analyst is currently bearish. Meanwhile, VZ's average stock price target stands at $47.92, implying about a 15% upside from the current share price. Why Verizon's Yield Still Commands Attention I believe Verizon remains an excellent choice for income-focused investors, offering a high, healthy, and stable yield that should stay steady at least throughout this year. Although long-term concerns about pricing power and disruption persist, much of that skepticism appears to be already priced into historically discounted valuations. Verizon enters Q2 in a relatively stable position, and I don't expect any major surprises, especially not negative ones. That said, signs of ARPU stabilization could boost confidence and help push growth toward the higher end of the company's annual guidance. For now, I see VZ as a Buy.
Yahoo
30-04-2025
- Business
- Yahoo
SunPower Reports Q1'25: $80.2M Revenue, $1.3M Profit¹
First Profitable Quarter In Four Years OREM, Utah, April 30, 2025 (GLOBE NEWSWIRE) -- SunPower, formerly d/b/a Complete Solaria, Inc. ('SunPower' or the 'Company') (Nasdaq: SPWR), a solar technology, services, and installation company, will present its 2024 and Q1'25 results via webcast at 1:00pm ET on Wednesday, April 30. Interested parties may access the webcast by registering here or by visiting the Events page within the IR section of the company website: Please see our SunPower rebranding announcement on the back page of the April 29 print version of the Wall Street Journal or on the mobile app for the WSJ print version, where it will reside for the next week. SunPower chairman and CEO, T.J. Rodgers commented, 'This is the Company's second quarterly report after the SunPower asset purchase on September 30, 2024, and our first report as SunPower, after rebranding with that name on April 21, 2025. The rebranding also fortuitously coincides with SunPower's first profitable quarter in four years.' SunPower Revenue & Operating Income Our First Two Quarters as SunPower GAAP2 NON-GAAP ($1000s, except gross margin) Q1 2025 Q4 2024 Q1 20253 Q4 2024 Revenue 80,174 88,674 80,174 88,674 4 Gross Margin 36 % 47 % 36 % 47 %4 Operating Expenses 27,366 62,769 27,366 62,769 Operating Expenses 12,270 49,870 12,270 49,870 Less Commission Operating Income/(Loss) (8,876 ) (21,501 ) 1,274 (5,940 ) Cash Balance5 13,995 13,308 13,995 13,308 _____________________________________ 1 Operating profit based on the non-GAAP results posted on our website [ To see our audited 2024 GAAP financial statements, go to the SEC 10K filing on our website [ Our non-GAAP financials are used to run the company and differ from the official GAAP report in three ways: 1) no non-cash amortization of intangibles, no employee stock compensation charges (already reflected in share count by dilution) and no one-time events, including favorable and unfavorable events. (See note 4.)4 The Q4'24 revenue and gross margin reported in our unaudited January 21, 2025 shareholder letter were lower, $81,103 and 37%, respectively. These figures were accurate and conformed to our CSLR revenue recognition standards on that date. The numbers presented here are calculated using the harmonized revenue recognition standards for the combined company from the audited 2024 results. Internally, we use our original Q4'24 forecast to judge our performance. For example, the 47% Q4'24 gross margin is inflated by jobs bought from SunPower at no COGS cost, and should not be used in a forward-looking projections.5 Cash balance is exclusive of restricted cash. Fellow Shareholders: Our Q1'25 revenue, earnings and cashflow are given above. They feature identical GAAP and non-GAAP results for the quarter, except for GAAP operating income, which contains charges from depreciation and amortization of intangible assets, stock-based compensation charges, and non-recurring events, mostly from the asset purchase. Rodgers added, 'I congratulate our team for breaking the profit barrier just 180 days after launch, despite enduring layoffs and some hard times in the solar industry. The rest of this report will focus on our other important first-quarter accomplishments.' Summary of SunPower Q1'25 Accomplishments Our $80.2 million Q1'25 revenue was in line with expectations, and it was achieved in the traditionally difficult winter quarter. (For example, Blue Raven operates in the Midwest and often has to remove snow from customers' roofs during winter.) SunPower is now properly and leanly staffed. The new SunPower was launched with the combined headcounts of Complete Solar, SunPower and Blue Raven Solar – 3,499 employees – on October 1, 2024. We reduced the staffing by 3x, to 1,140 one quarter later, as graphed below. Our final headcount target for the combined company was first set at 1,225 and then lowered to 980. We are currently ahead of that plan with 906 employees. We are at the right headcount to be profitable at $300 million in annualized new employees. We are now able to recycle a fraction of the salaries saved from headcount reductions to bring in key industry players. For example, we hired Dr. Richard Swanson, the Stanford technical genius and founder of SunPower, to advise us on technology, as well as our new CTO, Dr. Mehran Sedigh, a storage expert who ran the Enphase Battery business unit and ramped it to its current $500 million in revenue. Our headcount and cost reductions led to $1.3 million operating income in Q1'25. Our continuous cost-cutting measures have improved our operating income over the last three quarters from a $39.6 million loss in Q3'24 (unofficial sum of losses for three companies), to a loss of $5.9 million in Q4'24 (audited), to an operating profit of $1.3 million in Q1'25. Our cash balance grew (slightly). We finished Q1'25 with $14.0 million in cash versus $13.3 million in Q4'24. Outlook We forecast steady revenue and positive operating income again next quarter. We will provide a more detailed forecast and growth plan during our May annual meeting. Subsequent Events We are now SunPower (Nasdaq: SPWR). On April 21, the Company announced it has rebranded as SunPower, a tradename we own. The company's ticker symbols have been changed from 'CSLR' and 'CSLRW' to 'SPWR' and 'SPWRW', respectively, effective April 22, 2025. Strategic partnership with Sunder. We have partnered with Sunder, a large, highly regarded Salt-Lake area solar sales firm. They are now supporting our growth, which should start to show up on the top line in Q3'25. We strengthened our board with three pubic-company ex-CEO directors: Lothar Maier, former CEO of Linear Technology, a $1.4 billion Silicon Valley chip company; Dan McCranie, the former chairman of five high-tech companies, including Freescale and On, the two public companies spun out by Motorola Semiconductor; and Jamie Haenggi, the former CEO of ADT Solar. We have a fully independent board. A current independent director, Ron Pasek, now has been named the Lead Director for the corporation and Dan McCranie has been named as the Compensation Committee Chairman serving respectively for T.J. Rodgers (Chairman) and Tony Alvarez (Compensation Committee Chair) who are not independent directors because they worked for the company or a predecessor company in the last five years. SunPower Board (4/30/25) DIRECTOR STATUS PRIOR DEGREE/UNIVERSITY SOLAR VETERAN (Bolded) Tony Alvarez CEO BEE Georgia Tech, MSEE Georgia Tech Complete Solar, SunEdison, ChipMOS, Cypress* Will Anderson CEO BS Mgmt Science MIT, MBA Stanford Same Day Solar, Complete Solar Adam Gishen I VPIR BS Int'l Studies Univ. of Leeds Credit Suisse, Ondra, Lehman Bros. *Jamie Haenggi I CEO BS Int'l Relations Univ. of Minnesota ADT Solar, Vonage Chris Lundell CEO BS Finance, MBA Finance BYU Vivint, DOMO, Novell *Lothar Maier I CEO BS Chemical Eng UC Berkley Linear Tech, Cypress *Dan McCranie I CEO BS EE Virginia Tech ENVX, Cypress Semi, SEEQ, AMD Ron Pasek I CFO BS Finance SJSU, MBA Santa Clara NetApp, Alterra, Sun Micro T.J Rodgers CEO BA Dartmouth, MA/PhD EE Stanford SunPower, Complete Solar, Enphase, Cypress Tidjane Thiam I CEO BS Ecole Polytechnique, MBA INSEAD Credit Suisse, Prudential, Aviva, McKinsey & Co. Devin Whatley I VC BA East Asian Studies UCLA, MBA Penn Ecosystem Integrity Fund, Zep Solar, Pegasus * New (3) Independent (64%) *Cypress Semiconductor Corporation Rodgers concluded, 'Our successive $80 million-plus quarters re-define our Company with an annualized revenue of $300 million-plus, now producing a $1 million-plus quarterly operating profit. The market is beginning to recognize that fact.' About SunPowerSunPower has become a leading residential solar services provider in North America. SunPower's digital platform and installation services support energy needs for customers wishing to make the transition to a more energy-efficient lifestyle. For more information visit Non-GAAP Financial MeasuresIn addition to providing financial measurements based on generally accepted accounting principles in the United States of America ("GAAP"), SunPower provides an additional financial metrics in this press release that are not prepared in accordance with GAAP ("non-GAAP"). Management believes the non-GAAP financial measures, in addition to GAAP financial measures, are useful measures of operating performance because the non-GAAP financial measure does not include the impact of items that management does not consider indicative of SunPower's operating performance, such as amortization of goodwill and expensing employee stock options in addition to accounting for their dilutive effect, which facilitates the analysis of the company's core operating results across reporting periods. The non-GAAP financial measures do not replace the presentation of SunPower's GAAP financial results and should only be used as a supplement to, not as a substitute for, SunPower's financial results presented in accordance with GAAP. Descriptions of and reconciliations of the non-GAAP financial measures used in this press release are included in the financial table above and related footnotes. We encourage investors to carefully consider our preliminary results under GAAP, as well as our preliminary non-GAAP information and the reconciliations between these presentations, to more fully understand our business. Non-GAAP financial measures are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as 'will,' 'goal,' 'prioritize,' 'plan,' 'target,' 'expect,' 'focus,' 'forecast,' 'look forward,' 'opportunity,' 'believe,' 'estimate,' 'continue,' 'anticipate,' and 'pursue' or the negative of these terms or similar expressions. Forward-looking statements in this press release include, without limitation, our Q1'25 revenue projection, our expectations regarding our Q1'25 and fiscal 2025 financial performance, including with respect to our Q1'25 and fiscal 2025 combined revenues and profit before tax loss, expectations and plans relating to further headcount reduction, cost control efforts, and our expectations with respect to when we achieve breakeven operating income and positive operating income, including our forecast to be operating income breakeven in Q2'25. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to implement further headcount reductions and cost controls, our ability to integrate and operate the combined business with the SunPower assets, our ability to achieve the anticipated benefits of the SunPower acquisition, global market conditions, any adjustments, changes or revisions to our financial results arising from our financial closing procedures, the completion of our audit and financial statements for Q1'25 and fiscal 2025, and other risks and uncertainties applicable to our business. For additional information on these risks and uncertainties and other potential factors that could affect our business and financial results or cause actual results to differ from the results predicted, readers should carefully consider the foregoing factors and the other risks and uncertainties described in the 'Risk Factors' section of our annual report on Form 10-K to be filed with the SEC on April 30, 2025, our quarterly reports on Form 10-Q filed with the SEC and other documents that we have filed with, or will file with, the SEC. Such filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements in this press release speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SunPower assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Preliminary Unaudited Financial ResultsThe selected unaudited financial results for the Q1'25 are preliminary and subject to our quarter and year-end accounting procedures and external audit by our independent registered accounting firm. As a result, the financial results presented in this press release may change in connection with the finalization of our closing and reporting processes and financial statements for Q1'25 and fiscal 2025 and may not represent the actual financial results for such quarter and full year. In addition, the information in this press release is not a comprehensive statement of our financial results for Q1'25 or the 2025 fiscal year, should not be viewed as a substitute for full, audited financial statements prepared in accordance with generally accepted accounting principles, and are not necessarily indicative of our results for any future period. Company Contacts: Dan Foley CFO (858) 212-9594 Sioban Hickie VP Investor Relations & MarketingIR@ (801) 477-5847 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (PRELIMINARY) (In Thousands) COMPLETE SOLARIA, INC. - AS REPORTED SPWR - Unaudited 13 weeks ended 13 weeks ended 13 weeks ended *13 weeks ended *13 weeks ended March 31, 2024 June 30, 2024 29-Sep-24 29-Dec-24 30-Mar-24 GAAP operating loss from continuing operations (7,544) (9,494) (29,770) (21,501) (8,876) Note Depreciation and amortization A 357 329 305 1,745 1,146 Stock based compensation B 1,341 1,229 1,516 (1,019) 5,756 Restructuring charges C 406 2,603 21,072 14,835 3,248 Total of Non-GAAP adjustments 2,104 4,161 22,893 15,561 10,150 Non-GAAP net loss (5,440) (5,333) (6,877) (5,940) 1,274 Notes: (A) Depreciation and amortization: Depreciation and amortization related to capital expenditures. (B) Stock-based compensation: Stock-based compensation relates to our equity incentive awards and for services paid in warrants. Stock-based compensation is a non-cash expense. (C) Acquisition Costs: Costs primarily related to acquisition, headcount reductions (i.e. severance), legal, professional services (i.e. historical carveout audits) and due diligence. *Reflects the acquisition of the SunPower Assets which Complete Solaria acquired on 9/30/24. Source: SunPower Photos accompanying this announcement are available at in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
The Kraft Heinz Co (KHC) Q1 2025 Earnings Call Highlights: Strong Cash Flow and Strategic ...
Top Line Results: Delivered in line with expectations. Cash Flow Performance: Strong performance reported. Balance Sheet: Described as healthy. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Kraft Heinz Co (NASDAQ:KHC) delivered top-line results in line with expectations, demonstrating strong cash flow performance and maintaining a healthy balance sheet. The company is prioritizing investments in marketing, R&D, and technology to enhance consumer-facing marketing and optimize brand and media allocation for better ROI. KHC is scaling up its brand growth system, which has shown success in previous pilots, to cover 40% of its business by the end of the year. The company is seeing growth in emerging markets and expects improvement in key product categories like cream cheese and Ore-Ida in the upcoming quarters. KHC is actively managing costs and exploring alternative sourcing and reformulation to mitigate the impact of tariffs and inflation on COGS. The revised outlook includes a wider operating income guide due to uncertainties in the policy landscape and macroeconomic conditions. KHC is facing increased COGS inflation, particularly in commodities like coffee and meats, with an expected impact of 150 to 200 bps due to tariffs. The company anticipates gross margin pressure in Q2 due to increased promotional activity, hedge losses, and commodity price peaks. Despite investments, KHC's market share performance has been under pressure, with some categories showing softness. The company does not expect North America volume to inflect positively in the second half, relying instead on international growth to meet guidance. Warning! GuruFocus has detected 3 Warning Sign with KHC. Q: Carlos, you mentioned the revised outlook provides flexibility for investments. Is this approach different from previous ones? A: Carlos Abrams-Rivera, CEO: We are choosing to play offense with discipline, prioritizing investments in marketing, R&D, and technology. We are focusing on consumer-facing marketing and optimizing allocation across brands for better ROI. Our brand growth system, which has been successful in pilots, is being scaled up, giving us confidence in our investment strategy. Q: Can you elaborate on the North America organic sales guidance update for this year, particularly for 2Q? A: Carlos Abrams-Rivera, CEO: We expect 2Q top line to be better than 1Q, with a tailwind from Easter timing. Emerging markets are accelerating, and platforms like cream cheese and Ore-Ida are expected to grow. Lunchables will improve as new innovations hit the market. Q: How are you addressing COGS inflation in the revised outlook? A: Carlos Abrams-Rivera, CEO: We had inflation at 3%, now stepped up to 5% due to commodities like coffee and meats. Tariffs add 150-200 bps to COGS, mostly impacting the second half. We are managing this through inventory builds and alternative sourcing. Q: Can you discuss your promotional strategy and its impact on market share? A: Carlos Abrams-Rivera, CEO: We are investing in promotions strategically to support long-term growth, focusing on key consumer periods like Memorial Day and back-to-school. Our strategy is to drive profitable growth, not just short-term volume. Q: What are the bright spots in your portfolio from a market share perspective? A: Carlos Abrams-Rivera, CEO: We are seeing progress in accelerated businesses like ready-to-eat meals and snacking. Innovations like our Philadelphia Cream Cheese and desserts are driving growth. Our focus on better-for-you products and consumer insights is yielding sustainable growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
11-04-2025
- Politics
- Yahoo
UI graduate student union compiles resources after campus learns of visa cancellations
University of Iowa graduate students are working to compile information and resources for international students worried about their visas. (Photo by Brooklyn Draisey/Iowa Capital Dispatch) After news broke of a visa being revoked from an international graduate student at the University of Iowa, UI Campaign to Organize Graduate Students (COGS) President Cary Stough said people immediately started asking the organization and him what can be done to help. Stough said he wasn't surprised to hear about the incident, the latest in a series of visa cancellations hitting international students across the country. International graduate students have been preparing for something like this to happen, he said — deactivating social media, checking on their visas, making sure their university documents are up to date and connecting with immigration lawyers. 'People are very, very terrified right now,' Stough said. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX COGS is compiling resources and contacts to become a hub of knowledge for international students who need help, Stough said, while urging the UI to take a harder stance against actions that hurt its students. The graduate workers union sent out a news release to students and media with information and relevant services. UI Public Relations Manager Chris Brewer said in an email the university is 'aware of students who have been impacted' by changes to their visa, but no details can be provided due to privacy reasons. He did not respond to questions about university recommendations for affected students or procedures in the situation where Immigration and Customs Enforcement, or ICE, officials come to campus looking to detain a student. UI International Programs Dean and Associate Provost Russell Ganim alerted international students and scholars about the revoked visa Thursday morning through an email, which included contact information for the Iowa State Bar Association, UI Student Legal Services and the Iowa Law law clinic. 'International students and scholars are valued members of the Iowa community,' Ganim said in the email. COGS added to the university's list in its news release, naming the American Immigration Lawyers Association, IC Compassion, Iowa City Catholic Worker, Eschucha Mi Voz Iowa and the Prairielands Freedom Fund as helpful organizations in this matter. Many immigration lawyers who have spoken with COGS are saying if a student hasn't heard anything about changes to their visa then they shouldn't leave the country, Stough said. According to the release, if a student sees their student visa listed as revoked in the Student Exchange and Visitor Information System (SEVIS), they should connect with the UI Immigration Law Clinic to check their student status and discuss next steps. So far, communication has stayed primarily within departments relating to international students, Stough said. He was told by university officials that if ICE agents do attempt to enter classrooms or other private spaces on campus, involved parties should contact the university's Office of the General Counsel. International graduate students should also reach out to COGS members to plan how to keep themselves and others safe, the news release stated. 'If push comes to shove, we will protect our neighbors, our friends and our fellow coworkers here at the university to make sure that this is not only a safe space where they can continue to do research and teaching, but also a space where they're welcome,' Stough said. University administration should make their intention to protect international students public, Stough said, and gave the option of paying impacted students' legal fees as a good first step in offering support. If the UI continues to lose graduate students due to state and federal actions, either being forced to go or choosing to leave, Stough said eventually it won't have enough workers to teach courses. This would lead to lower undergraduate enrollment and the loss of revenue. 'The university should be standing up for its international students,' Stough said. 'Diversity here makes us great. It also connects us with a larger community throughout the world, and any infringement upon that should be against the university's mission.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
