Q3 2023 Kraft Heinz Co Earnings Call - Pre Recorded

Miguel Patricio: --President of Kraft Heinz to run through our quarterly results in more detail.

In more detail.

Carlos Abrams-Rivera: Thank you, Miguel, in the Q3.

Carlos Abrams-Rivera: Thank you, Miguel, in the Q3. We grew top line and improved profitability. Organic Net Sales increased 1.7% with constant currency, Adjusted EBITDA and Adjusted EPS growing at a much faster pace, 12.9% and 14.3%, respectively. The increase in profitability was driven primarily by gross profit margin expansion, which was a result of unlocking efficiencies across our value chain and pricing to inflation. In line with our strategy, we're reinvesting unlocked efficiencies back into the business to grow organically. We are increasing year to date investments in SG&A across marketing, R&D, and technology, and CapEx by approximately $385 million versus last year.

Carlos A. Abrams-Rivera: Thank you Miguel. In the third quarter, we grew top line and improved profitability. Organic net sales increased 1.7% with constant currency adjusted EBITDA and adjusted EPS growing at a much faster pace, 12.9 and 14.3, respectively.

Carlos Abrams-Rivera: We grew top line and improved profitability.

The third quarter regrouped top line and improve profitability. <unk> sales increase 1.7%. Constant currency adjusted EBITDA and adjusted EPS growing at a much faster pace 12, four nine and 14.3, respectively.

Carlos Abrams-Rivera: Organic Net Sales increased 1.7% with constant currency, Adjusted EBITDA and Adjusted EPS growing at a much faster pace, 12.9% and 14.3%, respectively.

<unk> sales increase 1.7%. Constant currency adjusted EBITDA and adjusted EPS growing at a much faster pace 12, four nine and 14.3, respectively.

Constant currency adjusted EBITDA and adjusted EPS growing at a much faster pace 12, four nine and 14.3, respectively.

Carlos Abrams-Rivera: The increase in profitability was driven primarily.

The increase in profitability was driven primarily by gross profit margin expansion, which was a result of unlocking efficiencies across our value chain and pricing to inflation. And in line with our strategy, we are reimbursing unlocked efficiencies back into the business to grow organically. We are increasing year-to-date investments in SG&A across marketing, R&D, and technology and Capex by approximately $385 million versus last year.

Carlos Abrams-Rivera: By gross profit margin expansion, which was a result of unlocking efficiencies across our value chain and pricing to inflation.

Carlos Abrams-Rivera: In line with our strategy, we.

And in line with a strategy, we are reimbursed and unlock efficiencies back into the business to grow organically.

Carlos Abrams-Rivera: We're reinvesting unlocked efficiencies back into the business to grow organically.

Carlos Abrams-Rivera: We are increasing year to date investments.

We are increasing year-to-date investments in SG&A across marketing, R&D, and technology and Capex by approximately $385 million versus last year.

Carlos Abrams-Rivera: In SG&A across marketing, R&D, and technology, and CapEx by approximately $385 million versus last year.

Carlos Abrams-Rivera: As Miguel mentioned, we are continuing to.

As Miguel mentioned, we are continuing to. Fuel Organic Net Sales through growth across all three pillars. In Q3, Foodservice sales grew approximately 9%. Emerging Markets organic net. Sales grew 10% and our growth platforms in the US retail Organic Net Sales grew 3%. Our Foodservice business gained market share. As our consolidated 9% sales growth outpaced the industry both in North America and International.

As Miguel mentioned, we are continuing to fuel organic net sales through growth across all three pillars. In the third quarter, quick service sales grew approximately 9%, emerging markets organic net sales grew 10% and [inaudible] platforms in the US retail organic net sales grew 3%.

Carlos Abrams-Rivera: Fuel Organic Net Sales through growth across all three pillars.

Carlos Abrams-Rivera: In Q3, Foodservice sales grew approximately 9%. Emerging Markets organic net.

Carlos Abrams-Rivera: Sales grew 10% and our growth platforms in the US retail Organic Net Sales grew 3%.

Marcus or getting a sales grew 10% and that'll grow platforms in the U S retail <unk> net sales group three per cent.

Carlos Abrams-Rivera: Our Foodservice business gained market share.

Our food service business gained market share and our concluded 9% sales growth outpaced the industry, both in North America and international. For the full year, we expect food service to grow low to mid double digits versus the prior year.

Carlos Abrams-Rivera: As our consolidated 9% sales growth outpaced the industry both in North America and International.

Carlos Abrams-Rivera: For the full year, we expect Foodservice.

For the full year, we expect Foodservice to grow low to mid double digits versus the prior year. As you may recall, our food service. Growth strategy consists of three levers. First, we drive sales through our CHAS. Chefs-Led Model, leveraging our dedicated chef network. To create tailored menu solutions for our customers. Second, we are prioritizing higher-margin spaces. By expanding across attractive channels like non-commercial with higher growth and higher margin. Lastly, using Foodservice as a flywheel. For innovation allows us to better customize. Solutions for our customers and launch insight-driven innovation.

For the full year, we expect food service to grill low to mid double digits versus the prior year.

Carlos Abrams-Rivera: To grow low to mid double digits versus the prior year.

Carlos Abrams-Rivera: As you may recall, our food service.

As you may recall, our food service growth strategy consists of three layers. First, we drive sales through our chat-led model, leveraging our dedicated chat networks to create tailor made menu solution. Second, we are prioritizing higher margins spaces by expanding across attractive channels like non-commercial with higher growth and higher margins. And lastly, using food service as the flywheel for innovation allows us to better customize solutions for our customers and launch inside driven innovation.

Carlos Abrams-Rivera: Growth strategy consists of three levers.

Carlos Abrams-Rivera: First, we drive sales through our CHAS.

First we drive sales through our Cieslik model, leveraging our dedicated chest networks to create tailor made menu solution.

Carlos Abrams-Rivera: Chefs-Led Model, leveraging our dedicated chef network.

Carlos Abrams-Rivera: To create tailored menu solutions for our customers. Second, we are prioritizing higher-margin spaces.

Second we are prioritize higher margins spaces by expanding across attractive channels like non commercial with all your growth and higher margins.

Carlos Abrams-Rivera: By expanding across attractive channels like non-commercial with higher growth and higher margin.

Carlos Abrams-Rivera: Lastly, using Foodservice as a flywheel.

And lastly, using food service as the flywheel for innovation allows us to better customize solutions for our customers and launch inside driven innovation.

Carlos Abrams-Rivera: For innovation allows us to better customize.

Carlos Abrams-Rivera: Solutions for our customers and launch insight-driven innovation.

Now, let's turn to emerging markets. We continue to deliver double digit organic net sales growth in emerging markets. In the third quarter, organic net sales grew 10% [inaudible]. We generated high double digit [inaudible] growth in two out of three of our business units [inaudible].

Carlos Abrams-Rivera: Now let's turn to Emerging Markets.

Now let's turn to Emerging Markets. We continue to deliver double digit organic. Net Sales growth in Emerging Markets. In Q3, Organic Net Sales grew 10% outpacing global. We generated high double-digit organic net. Sales growth in two out of three of our business units, Latam and East. However, we experienced temporary softness in Asia. We expect to return to normal level. Of growth in Asia in Q4, and we expect to continue to deliver double-digit growth in Emerging Markets. We plan to continue to drive growth. In emerging markets through our differentiated strategy consisting of three levers.

No.

Emerging markets. We continue to deliver double digit organic.

Carlos Abrams-Rivera: We continue to deliver double digit organic.

We continue to deliver double digit organic.

Carlos Abrams-Rivera: Net Sales growth in Emerging Markets. In Q3, Organic Net Sales grew 10% outpacing global.

Two O as in emerging markets. In the third for <unk>, 10% of patients tore into nursing. We generated high double digital carried nashville's growth and two out of three of our business units Latin and east.

In the third for <unk>, 10% of patients tore into nursing.

Carlos Abrams-Rivera: We generated high double-digit organic net.

We generated high double digital carried nashville's growth and two out of three of our business units Latin and east.

Carlos Abrams-Rivera: Sales growth in two out of three of our business units, Latam and East.

Carlos Abrams-Rivera: However, we experienced temporary softness in Asia. We expect to return to normal level.

However, we experienced temporary staff resignation. We expect to return to normal level of growth in Asia in the fourth quarter, and we expect to continue to deliver double digit growth in emerging markets.

We expect to return to normal level of growth in Asia in the fourth quarter, and we expect to continue to deliver double digit growth in emerging markets.

Carlos Abrams-Rivera: Of growth in Asia in Q4, and we expect to continue to deliver double-digit growth in Emerging Markets.

Carlos Abrams-Rivera: We plan to continue to drive growth.

We plan to continue to drive growth in emerging markets through our differentiated strategy consisting of three levers: perfect data driven, repeatable go-to-market model to drive distribution, designed to capture opportunity with the right products in the right market. By the end of 2023, we expect to have approximately 90 per cent of our emerging markets go-to-market model designed and ready for implementation.

Carlos Abrams-Rivera: In emerging markets through our differentiated strategy consisting of three levers.

Carlos Abrams-Rivera: First is data-driven repeatable go-to.

First is data-driven repeatable go-to. Market model to drive distribution designed to capture opportunities with the right products in the right market. By the end of 2023 we expect. To have approximately 90% of our emerging markets go to market model design and ready for implementation. Second, it's through the power of our Heinz brand which extends well beyond ketchup. Local jewels complement Heinz across several of our international market. And third, our food service business, which we are underpenetrated with less than 5%. Share in global market of approximately $1.4 billion.

Perfect data driven repeatable go to market model to drive distribution designed to capture it up with two g's with the right product in the right market.

Carlos Abrams-Rivera: Market model to drive distribution designed to capture opportunities with the right products in the right market.

Carlos Abrams-Rivera: By the end of 2023 we expect.

By the end of 2023, we expect to have approximately 90 per cent of our emerging markets go-to-market model designed and ready for implementation.

Carlos Abrams-Rivera: To have approximately 90% of our emerging markets go to market model design and ready for implementation. Second, it's through the power of our Heinz brand which extends well beyond ketchup.

Second, through the power of our Heinz brand, which extends well beyond ketchup, local [inaudible] compliment Heinz across several of our international market. And third, our foodservice business, which we are underpenetrated with less than five per cent share in global markets of approximately $1.4 billion.

Through the power of our highest brand which extends well beyond ketchup. <unk> compliment highs across several of our international market.

Carlos Abrams-Rivera: Local jewels complement Heinz across several of our international market. And third, our food service business, which we are underpenetrated with less than 5%.

<unk> compliment highs across several of our international market.

In third hour foodservice business. Which we are underpenetrated with less than five per cent share in global markets of approximately $1.4 billion.

Which we are underpenetrated with less than five per cent share in global markets of approximately $1.4 billion.

Carlos Abrams-Rivera: Share in global market of approximately $1.4 billion.

Carlos Abrams-Rivera: Finally, let's look at the US retail growth platforms in our North America zone.

Finally, let's look at the US retail growth platforms in our North America zone. In Q3, our North America. Organic Net Sales declined 0.1% versus prior year while our growth platforms in the US grew 3.3%. Total North America results were primarily impacted. By declining volumes in our meat business. As a reminder, the meat category is. A part of our Energized platform and we are focused on rebuilding profitability, acting rationally, and protecting our adjusted EBITDA dollars. This approach continues to work as we generated higher adjusted EBITDA on lower guiding net sales in meat in Q3.

And finally, let's look at the US retail grilled platforms in the North America Zone. In the third quarter, our North America organic net sales declined 0.1% versus prior year while our growth platforms in the US grew 3.3%. Total North America results were primarily impacted by declining volumes in our meat business.

Carlos Abrams-Rivera: In Q3, our North America.

In the third quarter hour North America. Sales declined 1% versus prior year. <unk>, 3.3%. Total North America results were primarily impacted by declining volumes and repeat business.

Carlos Abrams-Rivera: Organic Net Sales declined 0.1% versus prior year while our growth platforms in the US grew 3.3%.

Sales declined 1% versus prior year. <unk>, 3.3%. Total North America results were primarily impacted by declining volumes and repeat business.

<unk>, 3.3%. Total North America results were primarily impacted by declining volumes and repeat business.

Carlos Abrams-Rivera: Total North America results were primarily impacted.

Total North America results were primarily impacted by declining volumes and repeat business.

Carlos Abrams-Rivera: By declining volumes in our meat business.

Carlos Abrams-Rivera: As a reminder, the meat category is.

As a reminder, the meat category is a part of our energize platform and we are focused on rebuilding profitability, acting rationally, and protecting our adjusted EBITDA dollars. This approach continues to work as we generated higher adjusted EBITDA on lower organic sales in meat in the third quarter.

Carlos Abrams-Rivera: A part of our Energized platform and we are focused on rebuilding profitability, acting rationally, and protecting our adjusted EBITDA dollars. This approach continues to work as we generated higher adjusted EBITDA on lower guiding net sales in meat in Q3.

We are focused on rebuilding profitability acting rationally and protecting our adjusted EBITDA dollars. This approach continues to work as we generated higher adjusted EBITDA lower regarding the sales and meet in the third quarter.

This approach continues to work as we generated higher adjusted EBITDA lower regarding the sales and meet in the third quarter.

Carlos Abrams-Rivera: In the third quarter the meat category.

In the third quarter the meat category. Had a negative 1.2 percentage point impact on total North America Organic Net Sales growth. Within US Retail growth platforms, Taste Elevation Organic Net Sales grew an impressive 7%, and Easy Meals Organic Net Sales grew 5% in Q3. Ketchup, mayonnaise, and Mexican sauces in Taste. Elevation and frozen potatoes in Easy Meals led the year-over-year growth. Now turning to market share as Miguel had previously mentioned, our action plans are working. They are driving sequential improvement in both share and volume trends. As a reminder, these plans consist of. Executing joint business plans with key customers to drive shelf space and quality merchandising. With a 1.5 percentage point year to. Data improvement in US share shelf index.

In the third quarter, the meat category had a negative 1.2 percentage points impact in the total North America organic sales growth. Within US retail growth platforms [inaudible] organic net sales grew an impressive 7% and [inaudible] organic net sales grew 5% in Q3. Ketchup, mayonnaise, and Mexican sauces, [inaudible] and frozen potatoes and easy meals led the year over year growth.

Carlos Abrams-Rivera: Had a negative 1.2 percentage point impact on total North America Organic Net Sales growth.

America getting nestled growth. Wishing you with retail grow platforms tastes celebration or got Internet failed grew an impressive 7%. D C meals or getting a sales grew 5% in Q3. Catsup mayonnaise, a Mexican sauces, and taste elevation frozen potatoes, easy meals led the year over year growth.

Carlos Abrams-Rivera: Within US Retail growth platforms, Taste Elevation Organic Net Sales grew an impressive 7%, and Easy Meals Organic Net Sales grew 5% in Q3.

Wishing you with retail grow platforms tastes celebration or got Internet failed grew an impressive 7%. D C meals or getting a sales grew 5% in Q3. Catsup mayonnaise, a Mexican sauces, and taste elevation frozen potatoes, easy meals led the year over year growth.

D C meals or getting a sales grew 5% in Q3. Catsup mayonnaise, a Mexican sauces, and taste elevation frozen potatoes, easy meals led the year over year growth.

Carlos Abrams-Rivera: Ketchup, mayonnaise, and Mexican sauces in Taste.

Catsup mayonnaise, a Mexican sauces, and taste elevation frozen potatoes, easy meals led the year over year growth.

Carlos Abrams-Rivera: Elevation and frozen potatoes in Easy Meals led the year-over-year growth.

Carlos Abrams-Rivera: Now turning to market share as Miguel had previously mentioned, our action plans are working. They are driving sequential improvement in both share and volume trends.

Now turning to market share, as Miguel has previously mentioned, our actions plans are working. They are driving sequential improvement in both share and volume trends. As a reminder, these plans consist of executing joint business plans with key customers to drive shelf space and quality merchandising with a 1.5% point year-to-date improvement in US shelf index versus prior year. Increasing marketing investment 25 per cent versus prior year with a focus on grilled platforms. Ramping up innovation throughout the year, supported by an increase of 8% versus prior year in R&D spend and so the remaining isolated supply constraints. This is behind us in most categories with a [inaudible] rating in the high nineties at the end of Q3.

Let me go have previously mentioned our actions plans are working they are driving sequential improvement and bullshit and boat insurance.

Carlos Abrams-Rivera: As a reminder, these plans consist of.

As a reminder, this plans consist of executing joining business plans with T customers to drive shelf space and quality merchandise with.

Carlos Abrams-Rivera: Executing joint business plans with key customers to drive shelf space and quality merchandising.

Carlos Abrams-Rivera: With a 1.5 percentage point year to.

With a 1.5% year to date improvements in U S show shelf index versus prior year.

Carlos Abrams-Rivera: Data improvement in US share shelf index.

Carlos Abrams-Rivera: Versus prior year, increasing marketing investment 25%.

Versus prior year, increasing marketing investment 25%. Versus prior year with a focus on growth platforms, ramping up innovation throughout the year supported by an increase of 8% versus prior year in R&D spend and solving remaining isolated supply constraints. This is behind us in most categories. With a case fill rate in the. High 90s at the end of Q3. As you can see, these investments are paying off. Looking at our US dollar share, we. Have recovered from the low levels experienced earlier this year.

Increasing marketing investment 25 per cent versus prior year with a focus on grilled platforms. Ramping up innovation throughout the year, supported by an increase of 8% versus prior year in R&D spend and so the remaining isolated supply constraints. This is behind us in most categories with a [inaudible] rating in the high nineties at the end of Q3.

Carlos Abrams-Rivera: Versus prior year with a focus on growth platforms, ramping up innovation throughout the year supported by an increase of 8% versus prior year in R&D spend and solving remaining isolated supply constraints. This is behind us in most categories.

Ramping up innovation throughout the year supported by an increase of 8% versus Broward year in R&D span.

And so the remaining isolated supply constraints. This is behind us in most categories with a cave feel right in the high nineties at the end of Q3.

Carlos Abrams-Rivera: With a case fill rate in the.

Carlos Abrams-Rivera: High 90s at the end of Q3.

Carlos Abrams-Rivera: As you can see, these investments are paying off.

As you can see, these investments are paying off. Looking at our US dollar share, we have recovered from the low levels experienced earlier this year. As you recall, we face expected headwinds after pricing 75 per cent of our portfolio and the reduction of net benefits earlier this year. We have planned for [inaudible] to return to more normal levels and that's what we have seen.

Carlos Abrams-Rivera: Looking at our US dollar share, we.

Looking at a U S dollar sure we have recovered from the low levels experienced earlier this year.

Carlos Abrams-Rivera: Have recovered from the low levels experienced earlier this year.

Carlos Abrams-Rivera: As you recall, we face expected headwinds after pricing 75% of our portfolio and the reduction of SNAP benefits earlier this year. We have planned for electricity to return to more normal levels, and that's what we have seen.

As you recall, we face expected headwinds after pricing 75% of our portfolio and the reduction of SNAP benefits earlier this year. We have planned for electricity to return to more normal levels, and that's what we have seen. In July at a point when volume. Losses in cold cuts were at the highest. We hit the lowest share levels of the year. Since then we have improved volume as year-over-year price gaps have narrowed in Taste Elevation and Easy Meals, which are represented by the light blue line. We have steadily improved and are now. Gaining market share from branded players. If you recall from last quarter, our.

As you recall, we face expected headwinds after pricing 75 per cent of our portfolio and the reduction of net benefits earlier this year.

We have plan for 50 to return to more normal levels and that's what we have seen.

Carlos Abrams-Rivera: In July at a point when volume.

In July, at a point when volume loss and cost cuts were the highest, we hit the lowest share levels of the year. Since then we have improved volume as year over year price gap has narrowed. In taste elevation and easy meals, which are represented by the light blue line, we have steadily improved and are now gaining market share from branded players.

Carlos Abrams-Rivera: Losses in cold cuts were at the highest. We hit the lowest share levels of the year. Since then we have improved volume as year-over-year price gaps have narrowed in Taste Elevation and Easy Meals, which are represented by the light blue line.

And tastes elevation and easy meals, which are represented by the light Blue line, we have steadily improved and right now gaining market share from Brenda players.

Carlos Abrams-Rivera: We have steadily improved and are now.

Carlos Abrams-Rivera: Gaining market share from branded players.

Carlos Abrams-Rivera: If you recall from last quarter, our.

If you recall from last quarter, our share loss was concentrated on three categories: cream cheese, cold cuts, and kids single serve beverages. Across cream cheese and cold cuts, we have seen recovering share, particularly in the month of September. In cream cheese, off tree packaging constraints in the first half of last year impacted our ability to promote in key windows and as a result, we lost display and considerable share to private label.

Carlos Abrams-Rivera: Share loss was concentrated in three cream cheese, cold cuts, and kids' single-serve beverage. Across cream cheese and cold cuts. We have seen recovery in share, particularly in the month of September, in cream cheese. Upstream packaging constraints in the first half of last year impacted our ability to promote in key windows, and as a result we lost display and considerable share to private label. We started recovering share in July as we work with key retailers to rebuild display. Now, October month-to-date, we are growing approximately 50 basis points of share versus prior year in cream cheese.

Share loss was concentrated in three cream cheese, cold cuts, and kids' single-serve beverage. Across cream cheese and cold cuts. We have seen recovery in share, particularly in the month of September, in cream cheese. Upstream packaging constraints in the first half of last year impacted our ability to promote in key windows, and as a result we lost display and considerable share to private label. We started recovering share in July as we work with key retailers to rebuild display. Now, October month-to-date, we are growing approximately 50 basis points of share versus prior year in cream cheese.

Cream cheese and pockets, we have seen recovering sure, particularly in the month of September.

<unk> off tree packaging constraints in the first half of last year impact your ability to promote and key windows and as a result, we lost display and considerable share to private label wished.

We started recovering share in July as we worked with key retailers to rebuild display. Now October most to date, we're growing approximately 50 basis points of share versus prior year in cream cheese. In cold cuts, we are investing to hit the right price points, which is helping to drive an improvement in our share performance.

October most of the day, we're growing approximately 50 basis point of share versus proud year in cream cheese. <unk>, we are investing to hit the right price points, which is helping to drive an improvement in our share performance.

Carlos Abrams-Rivera: In cold cuts, we are investing too.

In cold cuts, we are investing too. Hit the right price points, which is. Helping to drive an improvement in our share performance. Additionally, we plan to continue to focus on improving service in our value portfolio.Where case fill rates are still in the low 80s. We are expecting improvement by the end. Of the year in kids single-serve beverage. Our share continues to be pressured, primarily. Driven by the reduction in the SNAP benefits as well as lapping competitive out of stock in the prior year. We have improvement plans in place which include increasing advertising support as well as new consumer promotions and displays activations.

<unk>, we are investing to hit the right price points, which is helping to drive an improvement in our share performance.

Carlos Abrams-Rivera: Hit the right price points, which is.

Carlos Abrams-Rivera: Helping to drive an improvement in our share performance.

Carlos Abrams-Rivera: Additionally, we plan to continue to focus on improving service in our value portfolio.

Additionally, we plan to continue to focus on improving service in a value portfolio where case fill rates are still in the low eighties. We expect an improvement by the end of the year.

Carlos Abrams-Rivera: Where case fill rates are still in the low 80s. We are expecting improvement by the end.

We expect an improvement by the end of the year.

Carlos Abrams-Rivera: Of the year in kids single-serve beverage.

In kids single serve beverage, our share continues to be pressured, primarily driven by the reduction in the snap benefits as well as [inaudible] competitive out of stock in the prior year. We have improvement plans in place, which includes an increase in advertising support as well as new consuming promotions and displaced activations.

Carlos Abrams-Rivera: Our share continues to be pressured, primarily.

Carlos Abrams-Rivera: Driven by the reduction in the SNAP benefits as well as lapping competitive out of stock in the prior year. We have improvement plans in place which include increasing advertising support as well as new consumer promotions and displays activations.

We have improvement plans in place, which includes an increasing advertising support as well as new consuming promotions and displaced activations.

Carlos Abrams-Rivera: As previously mentioned, to support our action.

As previously mentioned, to support our action. Plans and to continue building for the future, we are investing in SG&A across marketing, R&D, and technology. In the Q3 we increased our. Spending marketing by 25%, R&D by 8%. Technology by approximately 24% versus the. Q3 in 2022. In Q3 we increased marketing spend by 25% year over year. By leveraging the power of iconic brands like Heinz, we continue to generate best in class marketing activations. We are embracing a holistic and sustainable. Approach to marketing, inserting ourselves into culture. For example, our global Heinz creative approach is multidimensional. It's currently live in more than 16. Countries including the UK, Egypt, and China. With a multi-category approach across more than just ketchup and also in categories such as beans, soups, and mayonnaise.

As previously mentioned, to support our action plans and to continue building for the future, we are investing in SG&A across marketing, R&D, and technology. In the third quarter, we increased our spend in marketing by 25%, R&D by 8%, and technology by approximately 24% versus the third quarter in 2022.

Carlos Abrams-Rivera: Plans and to continue building for the future, we are investing in SG&A across marketing, R&D, and technology.

<unk> after of marketing R&D and technology. The third quarter, we increase our spending marketing by 25% R&D by 8%. Technology by approximately 24% versus the third quarter in 2022.

Carlos Abrams-Rivera: In the Q3 we increased our.

Carlos Abrams-Rivera: Spending marketing by 25%, R&D by 8%.

The third quarter, we increase our spending marketing by 25% R&D by 8%. Technology by approximately 24% versus the third quarter in 2022.

Carlos Abrams-Rivera: Technology by approximately 24% versus the.

Technology by approximately 24% versus the third quarter in 2022.

Carlos Abrams-Rivera: Q3 in 2022.

Carlos Abrams-Rivera: In Q3 we increased marketing spend by 25% year over year.

In the third quarter, we increased marketing spend by 25% year over year. By leveraging the power of iconic brands like Heinz, we continue to generate best-in-class marketing activations.

Carlos Abrams-Rivera: By leveraging the power of iconic brands like Heinz, we continue to generate best in class marketing activations.

Carlos Abrams-Rivera: We are embracing a holistic and sustainable.

We are embracing a holistic and sustainable approach to marketing, inserting ourselves into culture. For example, our global Heinz creative approach is multidimensional. It's currently live in more than 16 countries, including the UK, [inaudible] and China with a multi category approach across more than just ketchup and also in categories such as beans, soup, and mayonnaise, and it's working. At the 2023 [inaudible] International Festival of Creativity, Heinz was the most awarded food brand and the fourth most awarded brand overall.

Carlos Abrams-Rivera: Approach to marketing, inserting ourselves into culture.

Carlos Abrams-Rivera: For example, our global Heinz creative approach is multidimensional. It's currently live in more than 16.

For example, our global highest creative approach is multidimensional. Currently live in more than 60 countries, including the U K E as in China with a multi category approach across more than just ketchup and also in categories, such a bean soup some mayonnaise. And is working. At 223, <unk> International Festival of creativity <unk> was the most of all the food, Brian and the fourth most award a brand overall.

Currently live in more than 60 countries, including the U K E as in China with a multi category approach across more than just ketchup and also in categories, such a bean soup some mayonnaise.

Carlos Abrams-Rivera: Countries including the UK, Egypt, and China. With a multi-category approach across more than just ketchup and also in categories such as beans, soups, and mayonnaise.

Carlos Abrams-Rivera: It's working. At the 2023 Cannes Lions International Festival.

It's working. At the 2023 Cannes Lions International Festival. Of Creativity, Heinz was the most awarded food brand and the fourth most awarded brand overall. At the same time, we are moving. At the speed of culture. After the Ketchup and Seemingly Ranch sauce. Combination went viral in under 24 hours. Irish teams jumped on that trend. Ketchup and Seemingly Ranch became an overnight. Sensation sweeping the news online, even spreading international. With consumers clamoring to get their hands on the product. We were even able to get from Idea to Shelf as a limited release with a national customer in less than three weeks.

And is working.

At 223, <unk> International Festival of creativity <unk> was the most of all the food, Brian and the fourth most award a brand overall.

Carlos Abrams-Rivera: Of Creativity, Heinz was the most awarded food brand and the fourth most awarded brand overall.

Carlos Abrams-Rivera: At the same time, we are moving.

At the same time, we are moving at the speed of culture. After the ketchup and seemingly ranch sauce combination went viral, in under 24 hours our teams jumped on that trend. Ketchup and seemingly ranch became an overnight sensation, sweeping the news online, even spreading international with consumers clamoring to get their hands on the product. We were even able to get from idea to shelf as a limited release with a national customer in less than three weeks. This launch demonstrates our powerful agility and how our teams are using [inaudible] scale to move at the speed of culture.

Carlos Abrams-Rivera: At the speed of culture.

Carlos Abrams-Rivera: After the Ketchup and Seemingly Ranch sauce.

After the ketchup and seemingly ranch sauce combination wooden barrel under 24 hours are steamed jumped on that train. Ketchup and seemingly ranch became an overnight sensation sweep in the news online even spreading international.

Carlos Abrams-Rivera: Combination went viral in under 24 hours. Irish teams jumped on that trend.

Carlos Abrams-Rivera: Ketchup and Seemingly Ranch became an overnight.

Ketchup and seemingly ranch became an overnight sensation sweep in the news online even spreading international.

Carlos Abrams-Rivera: Sensation sweeping the news online, even spreading international.

Carlos Abrams-Rivera: With consumers clamoring to get their hands on the product.

<unk> to get their hands on the product.

Carlos Abrams-Rivera: We were even able to get from Idea to Shelf as a limited release with a national customer in less than three weeks.

We were even able to get from idea to shelf as a limited release with a national customer in less than three weeks. This launch demonstrate are powerful agility and how our teams are using agila scale to move at the speed of culture.

Carlos Abrams-Rivera: This launch demonstrates our powerful agility and.

This launch demonstrates our powerful agility and. How our teams are using Agile at Scale to move at the speed of culture. Turning to R and D, we continue. To build our innovation pipeline enabled by our Agile Innovation engine. First, we are utilizing intellectual patent protected. Technology to create disruptive platforms with our new grilled cheeses, the first product of many expected to come out of our exclusive 360 Crisp platform. Second, we are expanding into new aisles. Across multiple locations and host foods through. Innovation launches such as Frozen Kraft Mac and Cheese and our Heinz Culinary Tomatoes line in the UK.

This launch demonstrate are powerful agility and how our teams are using agila scale to move at the speed of culture.

Carlos Abrams-Rivera: How our teams are using Agile at Scale to move at the speed of culture.

Carlos Abrams-Rivera: Turning to R and D, we continue.

Turning to R&D, we continue to build our innovation pipeline enabled by our [inaudible] innovation engine. First, we're utilizing intellectual patent protected technology to create disruptive platform to the new grill cheese, the first product of many expected to come out of our exclusive 360, [inaudible] platform. Second, we are expanding into new aisles across multiple locations and host foods. Through innovation launches, such as frozen Kraft Mac and Cheese, and our highest culinary tomatoes line in the UK. Third, we are leveraging our iconic brands to meet evolving consumer trends, such as wellness snacking and plant base to compete in priority growth spaces. And lastly, we are adapting to local taste and creating unique flavor combinations across the world, particularly international where our goal is to become the number one in taste elevation.

Carlos Abrams-Rivera: To build our innovation pipeline enabled by our Agile Innovation engine.

10 years to build our innovation pipeline enable by our I <unk> innovation and just. Utilizing intellectual patent protected technology to create disruptive platform to the new grill cheese. The first product of many expect it to come out of our exclusive 360, Chris platform.

Carlos Abrams-Rivera: First, we are utilizing intellectual patent protected.

Utilizing intellectual patent protected technology to create disruptive platform to the new grill cheese. The first product of many expect it to come out of our exclusive 360, Chris platform.

Carlos Abrams-Rivera: Technology to create disruptive platforms with our new grilled cheeses, the first product of many expected to come out of our exclusive 360 Crisp platform. Second, we are expanding into new aisles.

Second we are expanding into new aisles across multiple locations and host foods. Through innovation lunches, such as frozen Kraft, Mac and cheese, and our highest culinary Tomatoes line in the U K.

Carlos Abrams-Rivera: Across multiple locations and host foods through.

Carlos Abrams-Rivera: Innovation launches such as Frozen Kraft Mac and Cheese and our Heinz Culinary Tomatoes line in the UK.

Through innovation lunches, such as frozen Kraft, Mac and cheese, and our highest culinary Tomatoes line in the U K.

Carlos Abrams-Rivera: Third, we are leveraging our iconic brands.

Third, we are leveraging our iconic brands. To meet evolving consumer trends such as wellness, snacking, and plant-based to compete in priority growth spaces. Lastly, we are adapting to local taste and creating unique flavor combinations across the world, particularly international where our goal is to become the number one in Taste Elevation. In fact, this year we are honored to announce that both Heinz Remix and 360 Crisp were named to TIME's Best Inventions of 2023 list. For over two decades, TIME has developed. An annual list dedicated to the year's top inventions which are evaluated based on criteria including originality, ambition, and impact.

Third we are leveraging our iconic brands to meet evolving consumer trends, such as wellness snacking and plan base to competing priority gross spaces.

Carlos Abrams-Rivera: To meet evolving consumer trends such as wellness, snacking, and plant-based to compete in priority growth spaces. Lastly, we are adapting to local taste and creating unique flavor combinations across the world, particularly international where our goal is to become the number one in Taste Elevation. In fact, this year we are honored to announce that both Heinz Remix and 360 Crisp were named to TIME's Best Inventions of 2023 list.

And lastly, we are adapting to local taste and create a unique flavor combinations across the world.

particularly international where our goal is to become the number one in taste elevation.

And in fact, this year, we are honored to announce that both Heinz [inaudible] and 360 [inaudible] were named on the Time Magazine's best inventions of 2023 list.

Carlos Abrams-Rivera: For over two decades, TIME has developed.

For over two decades, Times has developed an annual list dedicated to the year's top inventions, which are evaluated based on criteria, including originality, ambition, and the impact. Kraft Heinz is the only large food company to make the 2023 list and we are the only company to have more than one invention featured in the food and drink category.

Carlos Abrams-Rivera: An annual list dedicated to the year's top inventions which are evaluated based on criteria including originality, ambition, and impact.

Carlos Abrams-Rivera: Kraft Heinz is the only large food.

Kraft Heinz is the only large food. Company to make the 2023 list, and we are the only company to have more than one invention feature in the food and drink category. Finally, through Agile at Scale and strategic partnerships, we are delivering solutions across our value. Chain to accelerate growth and help drive efficiencies. As part of Agile at Scale, our teams are building digital-first solutions to power Kraft Heinz to get to better insights faster. These digital solutions are helping to contribute. To our annual growth efficiency target, which has accelerated to $500 million for 2023.

<unk> is the only large food company to make the 2023 list and we are the only company to have more than one invention feature in the food and drink category.

Carlos Abrams-Rivera: Company to make the 2023 list, and we are the only company to have more than one invention feature in the food and drink category.

Carlos Abrams-Rivera: Finally, through Agile at Scale and strategic partnerships, we are delivering solutions across our value.

Finally through agile scale and strategic partnerships, we are delivering solutions across our value chain to accelerate growth and help drive efficiencies.

Carlos Abrams-Rivera: Chain to accelerate growth and help drive efficiencies. As part of Agile at Scale, our teams are building digital-first solutions to power Kraft Heinz to get to better insights faster.

As part of agile scale, our teams are building diesel first solutions to power Kraft Heinz to get to better insights faster. These solutions are helping to contribute to our annual growth efficiency targets, which have accelerated to $500 million for 2023.

Our teams are building D. Two first solutions to power <unk> to get the better insights faster.

Carlos Abrams-Rivera: These digital solutions are helping to contribute.

This veto solutions are helping to contribute to our annual growth efficiency targets, which have accelerated to $500 million for 2023.

Carlos Abrams-Rivera: To our annual growth efficiency target, which has accelerated to $500 million for 2023.

Carlos Abrams-Rivera: Our investments in capabilities and technology are helping us drive transformation across several areas of the business. Importantly, we're not the only ones benefiting from these improvements.

Our investments in capabilities and technology are helping us drive transformation across several areas of the business. Importantly, we're not the only ones benefiting from these improvements. Our customers and suppliers are as well. Our US Kantar scores are improving each. Year and we have been recognized with our first-ever World Procurement Award for Supplier Collaboration and Innovation. Not only are we stepping up our. Investments in 2023 to unlock new growth and efficiency opportunities throughout our business, but we are also investing for the future. Through our ESG goals and our responsibility. To consumers, our employees, and the planet.

Our investments in capabilities and technology are helping us drive transformation across several areas of the business. Fortunately, we're not the only ones benefiting from these improvements, our customers and suppliers are as well. Our US cancer scores are improving each year and we have been recognized with our first-ever world procurement award for supply collaboration and innovation.

Fortunately, we're not the only ones benefiting from this improvements our customers and suppliers are as well.

Carlos Abrams-Rivera: Our customers and suppliers are as well. Our US Kantar scores are improving each.

Are you with cancer scores are improving each year and we have been recognized with our first ever world procurement of war for supply collaboration and innovation.

Carlos Abrams-Rivera: Year and we have been recognized with our first-ever World Procurement Award for Supplier Collaboration and Innovation.

Carlos Abrams-Rivera: Not only are we stepping up our.

Not only are we stepping up our investments in 2023 to unlock new growth and efficiency opportunities through our business, but we are also investing for the future through our ESG goals and our responsibility to consumers, our employees, and the planet.

Carlos Abrams-Rivera: Investments in 2023 to unlock new growth and efficiency opportunities throughout our business, but we are also investing for the future.

Carlos Abrams-Rivera: Through our ESG goals and our responsibility.

Carlos Abrams-Rivera: To consumers, our employees, and the planet.

Carlos Abrams-Rivera: We released our 2023 ESG report Together.

We released our 2023 ESG report Together. at the Table on 16 October 2023. It reflects key progress across each of our three ESG pillars: healthy living and community support, environmental stewardship, and responsible sourcing. Now I would like to give credit to our employees as they are the key to our success. I'm incredibly inspired by the passion and. Commitment to making Kraft Heinz a place. We all want to be and a. Place others want to join. Each year we are being certified as a Great Place to Work in more. And more countries, including being named as one of the 100 most loved workplaces in America in 2023 by Newsweek.

We released our 2023 ESG report together at the table on October 16th. It reflects key progress across each of our three ESG pillars: healthy living and community support, environmental stewardship, and responsible solution.

Carlos Abrams-Rivera: at the Table on 16 October 2023. It reflects key progress across each of our three ESG pillars: healthy living and community support, environmental stewardship, and responsible sourcing.

Total is 16. Flex key progress across each of our three <unk>. Healthy living in community support environmental stewardship and responsible solution.

Flex key progress across each of our three <unk>. Healthy living in community support environmental stewardship and responsible solution.

Healthy living in community support environmental stewardship and responsible solution.

Carlos Abrams-Rivera: Now I would like to give credit to our employees as they are the key to our success.

Now I would like to give credit to our employees as they are the key to our success. I'm incredibly inspired by the passion and commitment to making Kraft Heinz a place we all want to be and a place others want to join. Each year, we are being certified as a great place to work in more and more countries, including bring name as one of the 100 most loved workplaces in America in 2023 by Newsweek. These are a testament to how far we have come and a benchmark for all who dare to do better.

Carlos Abrams-Rivera: I'm incredibly inspired by the passion and.

Carlos Abrams-Rivera: Commitment to making Kraft Heinz a place.

Carlos Abrams-Rivera: We all want to be and a.

Carlos Abrams-Rivera: Place others want to join.

Carlos Abrams-Rivera: Each year we are being certified as a Great Place to Work in more.

Each year, we are being certify is a great place to work in more and more countries, including bin name is one of the 100, most love workplaces in America in 2023 by Newsweek.

Carlos Abrams-Rivera: And more countries, including being named as one of the 100 most loved workplaces in America in 2023 by Newsweek.

Carlos Abrams-Rivera: These are a testament to how far.

These are a testament to how far. We have become a benchmark for all who dare to do better. Before I hand it off to Andre. I would like to start by saying that I'm so proud of what we have been able to achieve across the business and as we have executed our. Strategy, delivering results in 2023 and building momentum for 2024. I also would like to highlight that this morning we announced three changes to. Our leadership and organizational structure to best support accelerated profitable growth and to lead the future of food.

These are a testament to how far we have come and a benchmark for all who dare to do better.

Carlos Abrams-Rivera: We have become a benchmark for all who dare to do better.

Carlos Abrams-Rivera: Before I hand it off to Andre.

Before I hand it off to Andre, I would like to start by saying that I'm so proud of what we have been able to achieve across the business as we have executed a strategy, delivering results in 2023 and building momentum for 2024. I also would like to highlight that this morning, we announced three changes to our leadership and organizational structure to best support accelerated profitable growth and to lead the future of food. First, we name our new EVP and President of North America [inaudible] is a consumer goods veteran and currently is the president of taste meals and away from home for the North America Zone.

Carlos Abrams-Rivera: I would like to start by saying that I'm so proud of what we have been able to achieve across the business and as we have executed our.

Carlos Abrams-Rivera: Strategy, delivering results in 2023 and building momentum for 2024. I also would like to highlight that this morning we announced three changes to.

Liberating results in 2023 and building momentum for 2024.

I also would like to highlight that this morning, we unknown three changes to our leadership and organizational structure to best support accelerated profitable growth and to lead the future of food.

Carlos Abrams-Rivera: Our leadership and organizational structure to best support accelerated profitable growth and to lead the future of food.

Carlos Abrams-Rivera: First, we name our new EVP and.

First, we name our new EVP and. President of North America, Pedro Navio. Pedro is a consumer goods veteran and. Currently, our President of Taste Meals and Away From Home for the North America Zone. Second, we have elevated our growth and omnichannel functions to a global level, providing the structure and support to leverage centralized expertise and resources. The goal of this structure and these. Investments is to drive growth and disruptive innovation across the business where we provide optimal service to our customers and put our consumers first. Third, we have divided our international zone into three zones.

First we name our new EVP impressions of North America <unk>. Or as a consumer gets better and currently president of taste meals and away from home for the North America Zone.

Carlos Abrams-Rivera: President of North America, Pedro Navio.

Carlos Abrams-Rivera: Pedro is a consumer goods veteran and.

Carlos Abrams-Rivera: Currently, our President of Taste Meals and Away From Home for the North America Zone. Second, we have elevated our growth and omnichannel functions to a global level, providing the structure and support to leverage centralized expertise and resources.

Or as a consumer gets better and currently president of taste meals and away from home for the North America Zone.

Second, we have elevated our growth and omnichannel functions to a global level provide infrastructure and support to leverage centralized expertise and resources. The goal of this structure and these investments is to drive growth [inaudible] innovation across the business where we provide optimal service to our customers and put our consumers first.

Carlos Abrams-Rivera: The goal of this structure and these.

Carlos Abrams-Rivera: Investments is to drive growth and disruptive innovation across the business where we provide optimal service to our customers and put our consumers first. Third, we have divided our international zone into three zones.

The goal of this structure in these investments. Drive growth and disruptive innovation across the business, what we provide optimal service to our customers and put our consumers first.

Drive growth and disruptive innovation across the business, what we provide optimal service to our customers and put our consumers first.

Third, we have divided our international zone into three zones. They are Europe and Pacific developed markets, which includes Europe, Australia, New Zealand, Japan, and South Korea, West and East emerging market, which includes Latin Eastern Europe, and the Middle East, and Asian emerging markets, which include the rest of our Asian business outside of Japan and South Korea. We recognize this market required different set of strategies and skills and this new structure provides the necessary focus and resources to optimize our growth potential.

Carlos Abrams-Rivera: They are Europe and Pacific Developed Markets.

They are Europe and Pacific Developed Markets. Which include Europe, Australia, New Zealand, Japan, and South Korea, West and East Emerging Markets, which include Latin, Eastern Europe, and the Middle East, and Asian Emerging Markets. which include the rest of our Asia. Business outside of Japan and South Korea. We recognize these markets require different sets of strategies and skills and this new structure provides the necessary focus and resources. To optimize our growth potential. I am proud to say that every single one of these leadership appointments supporting these changes have been sourced internally.

They are Europe, and Pacific developed markets, which includes Europe, Australia, New Zealand, Japan, and South Korea. Western East emerging market, which includes Latin eastern Europe, and the Middle East.

Carlos Abrams-Rivera: Which include Europe, Australia, New Zealand, Japan, and South Korea, West and East Emerging Markets, which include Latin, Eastern Europe, and the Middle East, and Asian Emerging Markets.

Western East emerging market, which includes Latin eastern Europe, and the Middle East.

An Asian emerging markets, which include the rest of our agent business outside of Japan, and South Korea.

Carlos Abrams-Rivera: which include the rest of our Asia.

Carlos Abrams-Rivera: Business outside of Japan and South Korea. We recognize these markets require different sets of strategies and skills and this new structure provides the necessary focus and resources.

We recognize this mark is required different set of strategies and skills and this new structure provides the necessary focused and resources to optimize our growth potential.

Carlos Abrams-Rivera: To optimize our growth potential.

Carlos Abrams-Rivera: I am proud to say that every single one of these leadership appointments supporting these changes have been sourced internally.

I am proud to say that every single one of this leadership appointment supporting these changes have been sourced internally. This speaks to the exceptional quality of the talent at Kraft Heinz and the focus on value we place on people, development, and growth. Let me now hand it over to Andre to provide more details on our third quarter financial results and to discuss our outlook for the remainder of the year.

Carlos Abrams-Rivera: This speaks to the exceptional quality of.

This speaks to the exceptional quality of. The talent at Kraft Heinz and the focus and value we place on people development and growth. Let me now hand it over to Andre to provide more details on our third quarter financial results and to discuss our outlook for the remainder of the year.

This speaks to the exception of quality or the <unk> and the focus on value we place on people development and growth. Let me know hand, it over to Andrea to provide more details on our third quarter financial results and to discuss our outlook for the remainder of the year.

Carlos Abrams-Rivera: The talent at Kraft Heinz and the focus and value we place on people development and growth. Let me now hand it over to Andre to provide more details on our third quarter financial results and to discuss our outlook for the remainder of the year.

Let me know hand, it over to Andrea to provide more details on our third quarter financial results and to discuss our outlook for the remainder of the year.

Andre Maciel: Thank you, Carlos, for total Kraft Heinz.

Andre Maciel: Thank you, Carlos, for total Kraft Heinz. Organic Net Sales grew 1.7% in the. Quarter fueled by our three pillars of growth. Price grew 7.1 percentage points over the. Same period, partially offset by a 5.4. Percentage point decline in volume mix. Our volume trends have improved on a. Sequential basis as the impact of pricing. Wins and our action plans have started to take shape. We expect volume trends to continue to improve.

Andre Maciel: Thank you Carlos. For total Kraft Heinz, organic net sales grew 1.7 per cent in the quarter, fueled by our three pillars of growth. Price grew 7.1 percentage points over the same period, partially offset by a 5.4 percentage point decline in volume mix.

Andre Maciel: Organic Net Sales grew 1.7% in the.

Andre Maciel: Quarter fueled by our three pillars of growth.

by our three pillars of growth. Price grew 7.1 percentage points over the same period, partially offset by a 5.4 percentage point decline in volume mix.

Andre Maciel: Price grew 7.1 percentage points over the.

Brice grew 7.1 percentage points over the same period, partially upset by a 5.4 percentage point declining phyto mix.

Andre Maciel: Same period, partially offset by a 5.4.

Andre Maciel: Percentage point decline in volume mix. Our volume trends have improved on a.

Our volume trends have improved on a sequential basis as the impact of pricing ways and our action plans have started to take shape. We expect the volume trends to continue to improve.

Andre Maciel: Sequential basis as the impact of pricing.

Andre Maciel: Wins and our action plans have started to take shape. We expect volume trends to continue to improve.

We expect the volume France to complete a drink roof.

Andre Maciel: In North America, Organic Net Sales declined 0.1%.

In North America, Organic Net Sales declined 0.1%. This was driven primarily by our meats. Business, which had a negative 1.2%. Point impact on total North America Organic Net Sales growth. From an adjusted EBITDA perspective, total Kraft Heinz grew 11.9% versus prior year and our adjusted EBITDA margin increased 2.3 percentage points, driven by adjusted gross profit margin expansion and partially offset by increased investments in SG&A. Adjusted gross profit margin increased approximately 400 basis points versus Q3 2022.

In North America, organic net sales declined 0.1%. This was driven primarily by our meat business, which had a negative 1.2 percentage points impact on total North America organic net sales growth.

Andre Maciel: This was driven primarily by our meats.

This was driven primarily by our needs to business, which you had a negative 1.2 percentage points impact on total North America organic in net sales growth.

Andre Maciel: Business, which had a negative 1.2%.

Andre Maciel: Point impact on total North America Organic Net Sales growth.

Andre Maciel: From an adjusted EBITDA perspective, total Kraft Heinz grew 11.9% versus prior year and our adjusted EBITDA margin increased 2.3 percentage points, driven by adjusted gross profit margin expansion and partially offset by increased investments in SG&A.

From an adjusted EBITDA perspective, total Kraft Heinz grew 11.9% over the prior year and our adjusted EBITDA margin increased 2.3 percentage points, driven by adjusted gross profit margin expansion and partially offset by increased investments in SG&A. 

The highest <unk>, 11.9% of <unk> and our adjusted EBITDA margin increased 2.3 percentage points driven by adjusted gross profit margin expansion Empire. Partially offset by increasing fast months <unk>.

Partially offset by increasing fast months <unk>.

Andre Maciel: Adjusted gross profit margin increased approximately 400 basis points versus Q3 2022.

Our adjusted gross profit margin increased approximately 400 basis points versus the third quarter of 2022. This expansion was driven by pricing previous executed to offset inflation, strong supply chain efficiencies and positive mix in North America as growth platforms outpaced our lower margin business.

Andre Maciel: This expansion was driven by pricing previously executed to offset inflation, strong gross supply chain efficiencies, and positive mix in North America as growth platforms outpaced our lower margin meats business. When comparing to Q3 of last year, it is important to note.

This expansion was driven by pricing previously executed to offset inflation, strong gross supply chain efficiencies, and positive mix in North America as growth platforms outpaced our lower margin meats business. When comparing to Q3 of last year, it is important to note. That adjusted gross profit margin was the. Lowest quarterly margin of the year as we experienced peak dilutive impact of pricing to offset inflation compared to pre-pandemic levels. In Q3 2019, our Q3. Adjusted gross profit margin increased approximately 160 basis points.

These expansion was driven by pricing previous executed that you've set inflation, a strong grasp supply chain efficiencies and positive mix in North America as grow platforms outpaced our lower margin business.

When compared to the third quarter of last year, it is important to note that adjusted gross profit margin was the lowest quarterly margin of the year as we experienced peak diluting impact of pricing to offset inflation.

Andre Maciel: That adjusted gross profit margin was the.

Andre Maciel: Lowest quarterly margin of the year as we experienced peak dilutive impact of pricing to offset inflation compared to pre-pandemic levels.

Compared to pre-pandemic levels in third quarter of 2019, our third quarter adjusted gross profit margin increased approximately 160 basis points. This increase was primarily driven by the divesture of our lower margin [inaudible] and cheese businesses as well as improved productivity.

Andre Maciel: In Q3 2019, our Q3.

Third quarter of 2019. Third quarter adjusted gross profit margin increased approximately 160 basis points.

Andre Maciel: Adjusted gross profit margin increased approximately 160 basis points.

Third quarter adjusted gross profit margin increased approximately 160 basis points.

Andre Maciel: This increase was primarily driven by the.

This increase was primarily driven by the. Divestiture of our lower margin nuts and cheese businesses as well as improved productivity. In terms of Adjusted EPS, we grew 14.3% or $0.09 versus Q3 2022, primarily driven by strong Adjusted EBITDA performance partially offset by a higher effective tax rate. We have continued our disciplined approach to promotions, maintaining structurally lower levels relative to 2019. In Q3 we reduced our volume sold on promotion in the US. By 7 percentage points versus 2019 compared. To a four percentage point reduction by branded competition and now returns on investment. Have improved 15 percentage points over the same period.

These increase was primarily driven by the disaster of our lower margin notes and choose businesses as well as improve it productivity.

Andre Maciel: Divestiture of our lower margin nuts and cheese businesses as well as improved productivity.

Andre Maciel: In terms of Adjusted EPS, we grew 14.3% or $0.09 versus Q3 2022, primarily driven by strong Adjusted EBITDA performance partially offset by a higher effective tax rate.

In terms of adjusted EPS, we grew 14.3% or nine cents compared to the third quarter of 2022, primarily driven by strong adjusted EBITDA performance, partially offset by a higher effective tax rate.

Primarily driven by strong adjusted EBITDA performance, partially offset by a higher effective tax rates.

Andre Maciel: We have continued our disciplined approach to promotions, maintaining structurally lower levels relative to 2019. In Q3 we reduced our volume sold on promotion in the US.

We have continued our discipline approach to promotions, maintaining structurally lower levels relative to 2019. In the third quarter, we reduced our volume [inaudible] promotional [inaudible] by seven percentage points versus 2019 compared to a four percentage point reduction by branded competition.

In the third quarter, we reduce our volume Saddam promotional <unk> by seven percentage points versus 2019. Compared to a four percentage point reduction by Brenda competition.

Andre Maciel: By 7 percentage points versus 2019 compared.

Andre Maciel: To a four percentage point reduction by branded competition and now returns on investment.

Compared to a four percentage point reduction by Brenda competition.

Andre Maciel: Have improved 15 percentage points over the same period. This demonstrates that investments in our revenue.

And now return on investments have improved with 15 percentage points over the same period. This demonstrates that investment in our revenue management team and technology are paying off.

This demonstrates that investments in our revenue. Management team and technology are paying off. In Q4. We're expecting a higher level of promotions. Which is consistent with our strategy to promote around key occasions and is contemplated in our guidance. We continue to generate higher gross efficiencies. As we drive continuous improvement throughout our supply chain and we remain on track for our gross efficiency target of $2.5 billion by 2027. We closed Q3 pacing well ahead of our $500 million annual target. Surpassing our 4% of COGS benchmark.

<unk> <unk>, an hour of Avenue management team and technology are paying off.

Andre Maciel: Management team and technology are paying off.

Andre Maciel: In Q4.

Andre Maciel: We're expecting a higher level of promotions.

In the fourth quarter, we're expecting a higher level of promotions, which is consistent with our strategy to promote around [inaudible] and is contemplated in our guidance.

Andre Maciel: Which is consistent with our strategy to promote around key occasions and is contemplated in our guidance.

Andre Maciel: We continue to generate higher gross efficiencies.

We continue to generate higher growth efficiencies as we drive continuous improvement throughout our supply chain and we remain on track for our growth efficiency target of $2.5 billion by 2027.

Andre Maciel: As we drive continuous improvement throughout our supply chain and we remain on track for our gross efficiency target of $2.5 billion by 2027.

And we remain on track for our grass efficiency targets of $2.5 billion by 2027.

Andre Maciel: We closed Q3 pacing well ahead of our $500 million annual target.

We closed the third quarter facing well ahead of our 500 million dollar annual target, surpassing our four per cent of COGs benchmark, a material improvement from approximately 3% of COGs in 2022.

Andre Maciel: Surpassing our 4% of COGS benchmark.

<unk>, our four per cent of Cogs benchmark uhm active.

Andre Maciel: Material improvement from approximately 3% of COGS in 2022.

Material improvement from approximately 3% of COGS in 2022. Turning to inflation, we see moderation but are still experiencing pockets of persistent inflation. Including in labor, tomatoes, and sugar. We are now expecting mid single digit. Inflation for the full year. We continue to strengthen our balance sheet. Generating year-to-date Free Cash Flow Conversion of 68% while at the same. Time increasing investment in CAPEX by approximately. $150 million over the same period versus 2022, supporting long-term growth of the business.

Improvement from approximately 3% of Cogs in 2022.

Andre Maciel: Turning to inflation, we see moderation but are still experiencing pockets of persistent inflation.

Turning to inflation, we see moderation, but are still experiencing pockets of persistent inflation, including in labor, tomatoes, and sugar. We are now expecting mid single digit inflation for the full year.

Andre Maciel: Including in labor, tomatoes, and sugar. We are now expecting mid single digit.

We are not expecting mid single digit inflation for the full year.

Andre Maciel: Inflation for the full year.

Andre Maciel: We continue to strengthen our balance sheet.

We continued to strengthen our balance sheet generating year-to-date free cashflow conversion of 68% while at the same time, increasing investments in Capex by approximately $150 million over the same period in 2022, supporting long term growth of the business.

Andre Maciel: Generating year-to-date Free Cash Flow Conversion of 68% while at the same.

Andre Maciel: Time increasing investment in CAPEX by approximately.

Why why at the same time, increasing investments in Capex by approximately $150 million over the same spirit professors 2022, supporting long term growth of the business.

Andre Maciel: $150 million over the same period versus 2022, supporting long-term growth of the business.

Andre Maciel: The majority of the improvement in Free Cash Flow Conversion versus the prior year is related to the lapping of the.

The majority of the improvement in Free Cash Flow Conversion versus the prior year is related to the lapping of the. $620 million tax payment on divestiture proceeds in 2022. We also reduced net leverage to 2.9x, reaching our long-term target of approximately 3x. Turning to our outlook for the year, we now expect Organic Net Sales for. The fiscal year 2023 to be at the low end of our 4 to 6% range. At approximately 4% versus 2022, we are raising our constant currency adjusted EBITDA guidance to 5 to 7% growth versus 2022 from the prior range of 4 to 6% growth.

The majority of the improvement in free cash flow conversion versus the prior year is related to the lapping of the 620 million dollar tax payment on divestiture proceeds in 2022. 

Andre Maciel: $620 million tax payment on divestiture proceeds in 2022. We also reduced net leverage to 2.9x, reaching our long-term target of approximately 3x.

We also reduced net leverage to 2.9 times, reaching our long term targets of approximately three times. Turning out to look for the year, we now expect organic net sales for the fiscal year 2023 to be at the low end of our 4-6% range at approximately 4% versus 2022.

Andre Maciel: Turning to our outlook for the year, we now expect Organic Net Sales for.

Furniture out to look for the year, we now expect organic and that's sales for the fiscal year 2023 to be at the low end of our fortunes six per cent ranch at approximately 4% versus 2000 and send it to.

Andre Maciel: The fiscal year 2023 to be at the low end of our 4 to 6% range. At approximately 4% versus 2022, we are raising our constant currency adjusted EBITDA guidance to 5 to 7% growth versus 2022 from the prior range of 4 to 6% growth.

We are raising our constant current adjusted EBITDA guidance to 5-7% growth versus 2022 on the prior range of 4-6% growth. 

Andre Maciel: Our constant currency Adjusted EBITDA outlook includes.

Our constant currency Adjusted EBITDA outlook includes. A negative 2 percentage point impact from lapping the 53rd week in 2022. Based on current exchange rates, we now. Expect a 1 percentage point adjusted EBITDA headwind from currency on the full year. For Adjusted Gross Profit Margin. We are increasing our expected year over year expansion to a range of 200 to 250 basis points from a prior range of 150 to 200 basis points. Current Adjusted EPS, we are raising our. Guidance to a range of $2.91 to 2.99 reflecting 5.8% growth versus 2022 from our previous range of $2.83 to 2.91.

Our constant current adjusted EBITDA outlook includes a negative two percentage points impact from lapping the 53rd week in 2022.

Andre Maciel: A negative 2 percentage point impact from lapping the 53rd week in 2022.

Andre Maciel: Based on current exchange rates, we now.

Based on current exchange rates, we now expect a one percentage point adjusted EBITDA headwind from currency on the full year.

Andre Maciel: Expect a 1 percentage point adjusted EBITDA headwind from currency on the full year.

Andre Maciel: For Adjusted Gross Profit Margin.

For adjusted gross profit margin, we are increasing our expected year over year expansion to a range of 200 to 250 basis points from a prior range of 150 to 200 basis points.

Andre Maciel: We are increasing our expected year over year expansion to a range of 200 to 250 basis points from a prior range of 150 to 200 basis points.

Andre Maciel: Current Adjusted EPS, we are raising our.

Turning to adjusted EPS, we are raising our guidance to a range of $2.91 to $2.99, reflecting 5-8% growth versus 2022 from our previous ranch of $2.83 to $2.91.

Andre Maciel: Guidance to a range of $2.91 to 2.99 reflecting 5.8% growth versus 2022 from our previous range of $2.83 to 2.91. Our Adjusted EPS outlook includes negative currency impact of approximately $0.04 at current exchange rates, approximately a negative $0.03 impact from non-cash pension and post-retirement benefits, and a negative $0.06 impact from left in the 53rd week in 2022.

From our previous ranch of $2.83 to $2.91.

Our Adjusted EPS outlook includes negative currency impact of approximately $0.04 at current exchange rates, approximately a negative $0.03 impact from non-cash pension and post-retirement benefits, and a negative $0.06 impact from left in the 53rd week in 2022. Our outlook also contemplates an effective tax rate on adjusted EPS of 19% to 20%. With that, let me pass it to Miguel for some closing comments.

Our adjusted EPS outlook includes negative currency impact of approximately four cents at the current exchange rates, approximately negative three cent impact from non-cash pension and post retirement benefits and [inaudible] week in 2022. Our outlook also contemplates an effective tax rate on adjusted EPS of 19 to 20 per cent.

approximately negative three cent impact from non-cash pension and post retirement benefits and [inaudible] week in 2022.

Andre Maciel: Our outlook also contemplates an effective tax rate on adjusted EPS of 19% to 20%.

Our outlook also contemplates an effective tax rate on adjusted EPS of 19 to 20 per cent.

Andre Maciel: With that, let me pass it to Miguel for some closing comments.

With that, let me pass it to Miguel for some closing comments.

Miguel Patricio: Thank you, Andre. I would like to reiterate that I'm so proud of what we have achieved. We are generating accelerated profitable growth fueled by our three pillars. Share and volume trends are improving as a result of the action plans we implemented, and we continue to strengthen our balance sheet, hitting our target net leverage of approximately three times. On a more personal note, this is my last earnings call as CEO of Kraft Heinz. It's been an honor and a privilege to lead this great iconic company and to play a role in this chapter of our transformation story. I'm absolutely thrilled and so excited about where Carlos will take this company. I could not be prouder to continue partnering with him next year as I continue in my role as a Board Chair.

Miguel Patricio: Thank you, Andre. I would like to reiterate that I'm so proud of what we have achieved. We are generating accelerated profitable growth fueled by our three pillars. Share and volume trends are improving as a result of the action plans we implemented, and we continue to strengthen our balance sheet, hitting our target net leverage of approximately three times. On a more personal note, this is my last earnings call as CEO of Kraft Heinz. It's been an honor and a privilege to lead this great iconic company and to play a role in this chapter of our transformation story. I'm absolutely thrilled and so excited about where Carlos will take this company. I could not be prouder to continue partnering with him next year as I continue in my role as a Board Chair.

Miguel Patricio: Thank you Andre. I would like to reiterate that I'm so proud of what we have achieved. We are generating accelerated profitable growth, fueled by our three pillars. Share and volume trends are improving as a result of the action plans we've implemented and we continue to strengthen our balance sheet hitting our target net leverage of approximately three times. 

I would like to reiterate that I'm. So proud of what we have achieved.

We are generating excellent radio profitable growth fueled by our three pillars. Share and volume trends are improving as a result of the action plans we implemented, and we continue to strengthen our balance sheet hitting our target net leverage of approximately three times.

By our three pillars. Sure and Voila, France are improving as a result of the action plans will be implemented. And we continue to strengthen our balance sheet heating our target net leverage of approximately three times.

Sure and Voila, France are improving as a result of the action plans will be implemented. And we continue to strengthen our balance sheet heating our target net leverage of approximately three times.

And we continue to strengthen our balance sheet heating our target net leverage of approximately three times.

On a more personal note, this is my last earnings call as CEO of Kraft Heinz. It's been an honor and a privilege to lead this great, iconic company and to play a role in this chapter of our transformation story. I'm absolutely thrilled and so excited about where Carlos will take this company.

It's been an honor and a privilege to lead this great iconic company and to play a role in this chapter of our transformation story.

Absolutely thrilled. So excited about where Carlos will take this company.

So excited about where Carlos will take this company.

I could not be prouder to continue partnering with him next year as I continue in my role as the Board Chair. I thank those of you in the investment community for always asking me the hard question, for challenging us, for provoking us to think even more strategically about the business that we are so fortunate to lead. But most of all, I want to say, thank you to our people, the 37,000 employees of Kraft Heinz who get up day in and day out working so hard to bring our company purpose, let's make life delicious to live. I can honestly say that each one of you has made my life more delicious. And I cannot wait to see how you and this company will further succeed under Carlos' dynamic leadership. Thank you for your time and interest in Kraft Heinz.

Miguel Patricio: I thank those of you in the investments community for always asking me the hard question, for challenging us, for provoking us to think even more strategically about the business that we are so fortunate to lead. But most of all, I want to say thank you to our people, the 37,000 employees of Kraft Heinz who get up day in and day out, working so hard to bring our company purpose, Let's make life Delicious, to life. I can honestly say that each one of you has made my life more delicious. And I cannot wait to see how you and this company will further succeed under Carlos's dynamic leadership. Thank you for your time and interest in Kraft Heinz.

I thank those of you in the investments community for always asking me the hard question, for challenging us, for provoking us to think even more strategically about the business that we are so fortunate to lead. But most of all, I want to say thank you to our people, the 37,000 employees of Kraft Heinz who get up day in and day out, working so hard to bring our company purpose, Let's make life Delicious, to life. I can honestly say that each one of you has made my life more delicious. And I cannot wait to see how you and this company will further succeed under Carlos's dynamic leadership. Thank you for your time and interest in Kraft Heinz.

I think those of you in the investment community for all it's asking me the hard question. Challenging us for Provost he has to think even more strategically about the business that we are so fortunate to lead.

Challenging us for Provost he has to think even more strategically about the business that we are so fortunate to lead.

But most of all I want to say, thank you to our people.

7000 employees of craft behind who get up day in day out working so hard to bring our company purpose.

Make life delicious to life. I can honestly say that each one of you has made my life more delicious.

I can honestly say that each one of you has made my life more delicious.

And I cannot wait to see how you in this company will further succeed Carlos dynamically the ship.

Thank you for your time and interest in crop times.