Full Year 2024 Danone SA Earnings Call

February 26, 2025

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Speaker Change: Good day and thank you for standing by welcome to the Danone Twenty-twenty full annual results conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session.

To ask a question during the session you will need to press star one to one on your telephone you with any an automated message advising you'll hunters raised.

Ms. Utility: Please be advised that today's conference is being recorded I would now like to hand, the conference over to your first speaker today Ms utility head of Investor Relations. Please go ahead.

Speaker Change: Thank you and good morning, everyone matches, what you're speaking thank you for being with US. This morning, So Dennis 2020 for full year results call I'm here with our CEO on 20% actually cannot yeah. So youre going to say, we'll go through some prepared remarks before taking your questions.

Speaker Change: And before we start I draw your attention to the disclaimer on slide 42 of the presentation related to forward looking statements and the definition of financial indicators that we will refer to during the presentation and with that let me Andy silver too often thank you.

Speaker Change: Material and.

Speaker Change: Good morning, everyone, a very warm welcome to our 24 <unk>.

Speaker Change: <unk> presentation.

Speaker Change: Youre going to and I am delighted to be with you today to share what is another strong set of results.

Speaker Change: These results are a particular, meaning to all of us as they mark the successful close of the first chapter of renewed Dino <unk>.

Speaker Change: Chapter, we opened three years ago.

The strategy, which we initiated then you're starting to bear fruits and gives us a solid base as we enter the next chapter of renewed.

Speaker Change: We are progressively becoming a different company.

Speaker Change: Truly selling space and consumer and patient focused company, which stands for health through food.

Speaker Change: Any which is rediscovering the power of execution and consistency.

Speaker Change: And for all of this and before anything else I'd like to express my gratitude to all Dinos.

Speaker Change: We are making this happen day in day out so big thing to you guys.

Speaker Change: Let's move to the results on slide number three.

Speaker Change: As you will have seen in the press release.

Speaker Change: Ladies and yoga will cover in more details later, we delivered a strong like for like sales growth of plus four 7% in quarter four leading to a plus four 3% growth for the full year of 2004.

Speaker Change: Importantly, and as we intend to renew that on strategy.

We have kept improving the quality of our growth transitioning over the past three years from a negative to consistently positive volume mix delivering a plus 3% contribution in 2004.

Speaker Change: With a volume mix back through our factories.

Speaker Change: We are benefiting from operating leverage and this enhanced by another year of record productivity.

Speaker Change: This is allowing us to further invest behind our brands and capabilities and to proactively drive our categories, while expanding our profitability.

Speaker Change: In 2004, we increased our operating margin by 39 basis points versus 'twenty three bringing.

Speaker Change: Bringing it to 13%.

Speaker Change: It is the way we intended the renewable business model to work.

Speaker Change: The strong financial discipline, we apply to the business starts showing on many levels.

Speaker Change: At EPS level.

As a plus two 5% increase.

Speaker Change: When it comes to free cash flow is an impressive 3 billion delivery.

Speaker Change: By strong working capital management.

Speaker Change: And last but certainly not least it is an important one to us we are back in double digit Roissy territory.

Speaker Change: Third 10 basis points increase in just two years.

Speaker Change: So all of them.

Speaker Change: Surely financial side as well, we start seeing the power of venue.

Speaker Change: And importantly, we do all of this while driving sustainability focused rich impactful way as we are convinced it is critical for the long term residents of our business. We move to the first space of the <unk> index from number four in 2003.

So we are delivering on their new strategy.

Speaker Change: Trying to be very consistent and systematic.

Speaker Change: Addressing what needs to be addressed but also facing to what still needs improvements.

Speaker Change: Let's now move into a bit more detail on slide four.

As I said earlier, we have been over the last three years working at rebalancing our growth model.

Speaker Change: <unk> price and volume mix.

Speaker Change: We have made consistent progress.

Quarter, four marks the sixth consecutive quarter of volume mix improvements.

Speaker Change: Our categories are showing good growth.

The resilience of our portfolio is improving step by step our.

Speaker Change: While we didnt platforms are again growing double digit in 2004, including high protein coffee creation and medical nutrition.

Speaker Change: We are making progress on our core.

As shown by a positive volume mix in Edp Europe for five consecutive quarters. After 10 years of decline.

Speaker Change: The journey is not over and there is still plenty to do.

Speaker Change: From a sharpening silk in the U S to continuously strengthening axial <unk>.

Speaker Change: To quote two of our large brands.

Speaker Change: We have also proven that with proper focus and discipline.

Speaker Change: We can turn around the underperformers.

Speaker Change: My zone.

Good example of it it has again grown double digit in 2004 on the back of stronger fundamentals combined with relevant innovation, our electrolyte products, which many of you had tasted in June.

Speaker Change: Showing encouraging results.

Now moving to slide five.

Speaker Change: As you may recall from our June CME.

Speaker Change: We are convinced that the food industry is at a tipping points.

Speaker Change: And that we feel equipped and.

Speaker Change: For the world to come.

Speaker Change: We start seeing some tangible signs of its firstly.

Categories in which we are playing keep growing faster than the average of fruit gotthelf the microbiome.

Speaker Change: Teens healthy hydration immunity.

Speaker Change: More relevant than ever.

Speaker Change: Secondly, our portfolio is about health through food and recognized as such.

We were extremely proud to have been ranked number one by <unk>. This year as I mentioned earlier.

Speaker Change: What's even more important is that our products deliver not only on taste, but also health close to 90% of our portfolio was caused III and the hub stores or more in their head star rating system.

Speaker Change: We do not only play in healthy and growing categories.

Speaker Change: Also play in healthy and drawing channels in 'twenty for more than 50% of ourselves we're outside mass retail.

Speaker Change: And we are growing in these channels such as wafer more hospital pharmacy and home care two to three times faster than in mass retail.

Speaker Change: We reached more people.

Speaker Change: In different places at different moments in their life this contributes as well.

<unk> of our model.

Speaker Change: Now moving to slide six.

Speaker Change: To remain relevant and competitive in the long run we are focused and we will keep focusing.

Speaker Change: What makes the difference.

Speaker Change: We will keep investing into brands and capabilities.

Speaker Change: We keep focusing on operational excellence, but also on differentiating science.

Speaker Change: We also work at improving the quality of our spending we test more we.

Speaker Change: We have a better balance of working between own work can be done.

Speaker Change: There are some good progress.

Speaker Change: Some way to go.

Speaker Change: On average over the last three years, we have invested additionally, around 100 bps per year behind our brands and capabilities.

Speaker Change: And we didn't only increased the amounts while we invested in future growth drivers. We are also focusing on execution excellence and operational efficiencies.

Speaker Change: And it shows in the numbers.

Speaker Change: With above industry average productivity or high levels of customer service.

Speaker Change: And therefore, we are investing for the future in 2004, we opened a new integrated planning centers with a focus on leveraging AI to provide a further drive of future operational efficiencies.

Speaker Change: We told you in <unk> almost two years ago and you touched last June.

Speaker Change: That science was back at the heart of what we are doing.

Speaker Change: Just starting to show very concretely.

Speaker Change: We are accelerating the number of scientific paper, we publish and the number of patents we filed.

Speaker Change: Our scientific and technological resources towards key areas.

Speaker Change: Taking into account emerging trends and insights into many aspects of nutrition.

Speaker Change: We also successfully deploying digital health technology as key value levers for balanced brands collecting millions of health data points.

Speaker Change: And submitting digital health Tech patents.

So now moving to slide seven.

Speaker Change: The name of the game for US is not only to invest in future looking science Brito.

Speaker Change: Both of them you see to turn the science into all event consumer and patient centric innovation.

Speaker Change: And in doing so.

Speaker Change: To drive the growth of our categories.

We see this happening for example in North America in many different ways for instance, with our initiative out there seeing diabetes.

Speaker Change: In recent digital campaigns, we noted the increase in our yogurt consumption.

Speaker Change: As consumers looking for reduced sugar options.

Speaker Change: We're also providing valuable nutritional support dedicated to individuals on the weight loss journey.

Speaker Change: We see a broader trends around consumers living a more active lifestyle.

Speaker Change: Knowing that both of these journeys driving each for <unk> and for better good health and it shows our iqos hypoxia and proposition in the U S.

Speaker Change: Retail sales value.

Speaker Change: Of over $1 billion.

Speaker Change: What is true for yogurt is even more relevant for infant formula We are a science driven innovation plays a critical role.

Speaker Change: New York curious are pioneering innovation based on advanced breast milk research was launched softly in Hong Kong only a few months ago and shows encouraging early signs.

Speaker Change: It comes on the back of a census.

Speaker Change: Several top premium formats launched in China in late 'twenty three.

Speaker Change: Which is not meaningfully adding to our growth in China.

Speaker Change: Across our portfolio, we are engaged in a very systematic approach to consumer all of that shipyard.

Speaker Change: Sure.

In taste and experience as foods is about pleasure.

Speaker Change: <unk> when it comes to been issues as <unk> is about health and nutrition.

Speaker Change: We are progressing step by step as you can see for instance, <unk>, we always start reclaiming the guesthouse territory.

Speaker Change: <unk>.

Speaker Change: Benefits such as muscle recovery.

Speaker Change: But this is only the start of our journey.

Speaker Change: Lots to be done more opportunities to be addressed.

Speaker Change: Moving to slide eight.

Speaker Change: All of this is enabled by a deep cultural change, which we initiated when we start to renew.

Speaker Change: And which we will keep embedding in the coming years.

Speaker Change: A culture, where we play to win rather than playing not to lose.

Speaker Change: Culture, where things move on a different rhythm.

Speaker Change: <unk> reviews keep growing with.

Speaker Change: And intensity to push the limits and achieve even more.

Speaker Change: And importantly, our culture much more focused and open to the world working in partnership to learn to benchmark and are to set the bar higher there too the journey is far from over and keeps going up.

Speaker Change: And with this let me hand over to yoga and George over to you.

George: Thank you Angela and good morning, everyone, let's begin our financial review with Slide number 10, and our net sales performance.

George: We are very pleased to end the year with a strong finish reaching in this fourth quarter like for like sales calls of as much as plus four 7%.

George: This was the strongest quarter of the year not just in terms of the overall growth, but more importantly also in terms of its quality.

George: Volume mix contributed more than 4% driven by multiple growth platforms across the regions by pricing remains within the expected corridor at plus <unk>, 6%.

George: It is great to see increasingly the benefits of our strategy in action.

George: The results were very intentional reinvestment approach.

George: And it is probably best explained when moving to the next slide slide number 11.

George: Our full year growth reached plus four 3% like for like in 2024 and is illustrated here all our regions in all of our categories are contributing to it.

This is important as we are leveraging today, a portfolio, which has a large number of new platforms.

George: It makes our delivery more and more resilient and balance our key assets in this volatile world.

George: You may be interested to know that the component of volume mix alone.

George: Also been positive for all categories, and all regions, which is another proof point of the underlying quality of our growth.

George: If we come shortly to the performance have you by regions. Let me just briefly comment on the dynamics by category.

George: Our edp business delivered solid growth of plus three 8% in 2024, we are very pleased with the continued strong performance in countries like U S, Canada or Japan.

George: In Europe the portfolio transformation is now gearing fruits.

George: We've been delivering a positive volume mix contribution in each quarter of the year. After so many years of neglect.

George: Our leading platform of high protein continues to grow double digit and we have landed this year meaningful innovations, notably the domestic recovery claims on high protein as.

George: As well as a new great tasting key for your product in Europe under the <unk> TV right.

George: Specialized nutrition sales were up plus four 6% in 2020 for this growth was driven by our medical nutrition business with China again growing double digit in the statements.

George: By the way the medical segment continued its stellar growth trends infant milk formula posted yet another year of solid growth.

George: Our premium innovation strategy is working well with strong growth in the upcoming brands doing all year 2024.

George: And lastly in water, where our business grew by plus five 1% in 2024.

George: Notably strong double digit growth of the laser platform in China as Antoine mentioned before.

George: Worth mentioning here also the very strong performance of our <unk> brand in Europe as well as in North America.

Winning market share in many markets with its premium positioning.

George: Before commenting on the regions lets move on to the traditional <unk>, which.

George: Slide number 12.

George: The plus four 3% like for like growth was driven by a plus 3% volume mix, while the pies effect continue to normalize switching plus one 3%.

George: Outside of the like for like <unk>, and others had a negative effect of minus <unk>, 3%, reflecting.

George: Reflecting not upbeat or depreciation of emerging market currencies against the euro partially offset by the impact of hyper inflation.

George: Scope also had a negative impact at minus four 8%.

Mainly resulting from the deconsolidation of our Edp, Russia as well as the horizon organic businesses.

George: In total reported sales were slightly down this minus <unk>, 9% for 2020, bringing our net sales to $27 4 billion euros.

George: It is important to better understand the like for like performance by region, and so I propose to start with Europe.

George: Slide number 13.

George: In Q4, 2024, Europe sales were up plus one 8% on a like for like basis with volume mix at plus 3% in price at minus one 2%.

George: <unk> adjusted the fifth consecutive quarter of positive volume mix, demonstrating the step by step progress of our Edp business.

George: In the dairy category the growth is driven by products such as our high protein range as well as by the immunity platform. This activator.

George: So confirming a solid growth contribution from the <unk> brand in the plant based segment.

George: It is now baked into competitive growth momentum since several quarters.

George: In specialized nutrition, we delivered good growth, especially in our medical nutrition business with both brands <unk> as well as <unk> growing double digits and.

George: And in water.

George: Posted strong growth in this last quarter of year.

George: Driven by the <unk> <unk> and <unk> brands.

George: Looking at the full year Europe delivered plus one 7% like for like sales growth was plus one 4% contribution from volume mix.

George: Operating margin increased by plus 48 bps to 11, 9%.

We are pleased with the fact that we increased the region's profit margins through operating leverage.

George: At the same moment to reinvest significantly into our business.

George: To further step up the superiority of our products services and brands.

George: And with that let's move on to North America on slide number 14.

George: In North America quarter, four sales were up with a stellar plus seven 7% on a like for like basis.

George: Volume mix up plus five 9% and price up plus one 9% in.

George: In dairy the performance was driven by the exceptional growth of our high protein platform, namely local support.

George: Which of course benefiting in this last quarter for particularly strong demand for the yogurt category.

George: Also our coffee creations portfolio delivered another quarter of strong growth driven by both brands International delight and Stoke coffee.

George: Specialized nutrition growth was led by our medical nutrition platform and here, especially by the pediatric specialties portfolio.

George: In water, we have seen continued strong demand for our <unk> brand, which is expanding its market shares in the premium segment.

George: And finally plant based where the teams are applying the learnings from our successful IPO turnaround in Europe.

George: Positioning the brand of key occasions and consumer needs.

George: At the same moment, we are complementing the Sig branded portfolio with added value innovations like the <unk> range, which we launched in this last quarter of the year 2024.

George: Looking at the full year, North America closed with like for like sales up plus five 2%.

George: Strong contribution from volume mix at plus four 1% margin was significantly up plus 174 bps to 11, 4%, mainly driven by operating leverage and the high level of productivity in our supply chain.

George: And with that lets now move on to China, and North Asia and Oceania region.

George: Slide number 15.

George: Q4 sales in the region were up plus six 8% on a like for like basis with strong volume mix at plus nine 8% and price at minus 3%.

George: Non solar product in China remains very high demonstrated by the almost double digit volume mix performance.

George: At the same moment invested into expanding our distribution, particularly for our innovations in the IMF space.

George: What's driving the price effect temporarily down important to say that this price effectively normalize that other soon in 2025.

George: Our new portfolio is now placed successfully in the market.

George: Few comments on the different business areas.

George: Specialized nutrition, our infant milk formula continued to deliver significant market share gains.

George: In the category, which is showing further signs of improvement.

George: Our premium innovation strategy is working well and indeed, we are particularly pleased with what we call the incentives platform, which we launched over the last quarters into the ultra premium segment.

George: This incentive range is already contributing greatly to our market share performance.

George: In parallel our medical nutrition business maintained its strong momentum with again double digit growth for the quarter driven by both the neutral zone.

George: And <unk> brands.

George: And finally in waters My zone confirmed its momentum with another quarter of solid growth.

George: While edp sustained its strong performance in Japan with the continued success of Iqos and Activision brands.

For the full year sales in the region grew plus 8% with volume mix of plus nine 1% to full year operating margin was down slightly to 29, 4%, reflecting the additional investments allocated to drive further market share gains in this specialized nutrition space.

George: And with that let's turn to Latin America on slide number 16.

George: In Latin America, Q4 sales were up plus four 7% on a like for like basis with volume mix up plus one 2% and price up plus three 5%.

In Edp, we posted solid growth.

George: Despite being impacted by the licensing our <unk> business in Brazil. Thanks.

George: Thanks to the strong performance of our Danone dot net and Yoplait.

George: Specialized nutrition delivered strong growth led by <unk>.

George: <unk> benefited from the normalization of the weather conditions, which caused a softer third quarter as you may remember.

George: For the full year like for like sales were up plus four 2% for the full year margin was down minus 60, a bit impacted as in the first semester of 2024 by the consequences of the hyperinflation in Argentina. What is important is what is happening with the underlying performance and here. We can report more competitive margin progression outside of <unk>.

George: Currency effects of hour plus 90 bps.

George: You could be able to see the benefits of that positive margin development reported in our numbers once inflation and devaluation is normalizing.

George: And here you see first encouraging signs for year 2025.

George: And finally, let's have a look at our EMEA EMEA region on slide number 17.

George: Net sales in this region increased in the last quarter by plus five 4% on a like for like basis with volume mix up plus one, 7% and price up plus 3% visit growth.

George: Growth was notably led by the solid performance of specialized nutrition.

George: <unk> brand is growing again.

George: Right.

George: Worth mentioning the strong performance in India, especially in the IMF Super premium segment.

George: Going two times faster than the market as well as with our protein powders, namely our putty next diabetes scale.

George: In Edp Dairy Africa showed continued progress, particularly in Morocco, where we are now delivering the number of quarter solid growth numbers.

George: The business model, which is further stepping up its profitability and cash.

George: Yes.

George: For the full year effect of the region were up plus five 7% with volume mix up plus one 4% and requires a plus 2%.

George: <unk> margin was pretty steady at 10, 4%, reflecting both a significant increase of the gross margin as well as meaningful reinvestment to be able to capture future growth opportunities of this result.

George: I suggest we conclude here. This is all a review and move on to the margin bridge for the full year 2024 on slide number 18 there.

George: Although they are cutting operating margin reached 13% in 2024, marking an improvement of 39 bps compared to previous year.

George: And this is where we can confirm that our business model is working our focus on quality growth and record productivity is driving a strong increase in the margin from operations up as much as plus 242 bps.

George: This has enabled us to reinvest into the business by as much as 173 bps into A&P research and innovation into sales and marketing capabilities.

George: On the back of this we have worked our portfolio renovated many of our brands to drive superiority and bring meaningful innovations as we move into year 2025, and as our share of voice is now much more aligned with our sales market, we will turn our attention to more category leadership initiatives continuing to invest for few.

George: Growth.

George: Lastly, what we call the slide other effects that reflects notably the impact of scope arising from the aforementioned deconsolidation of dilutive businesses, which are more than offset by a negative forex impact for a combined effect of minus 40 bps.

George: Let's now move on to the EPS bridge on slide number 19.

George: The recurring EPS reached three year was <unk> 63 in 2024, which presents plus two 5% increase compared to last year importantly, the main contributor of recurring EPS growth was a strong operational performance, which we've just been through at plus 14, 2%.

George: At the same time able to increase the benefits from tax associates and minorities. Thanks to our strong managerial focus by the team.

George: Those two positive building blocks were partially offset by a negative impact from currency as well as a negative scope effect, resulting from the deconsolidation of our businesses.

George: Already discussed.

And now let's look at some of our other financial results on slide number 20.

George: You will remember from our CME presentation in June last year that we have an ambition to turn our company into a consistent value compound out in.

George: In 2024, a strong step up in earnings combined with a continued focus on working capital management.

George: Has enabled us to post a record free cash flow, reaching as much as 3 billion, an increase of 14% compared to last year.

George: We cannot yet claim to be a structure with $3 billion of free cash flow company. We have made another important step versus these objective demonstrating the ability of our organization to drive high cash conversion.

George: The cash flow of $3 billion is enabling us to reduce significantly our debt leverage with net debt, reducing 286 billion in 2020 for bringing us to the lower end of our target leverage covered at one nine times.

Speaker Change: At the same moment. We are also very pleased that Antoine mentioned that with we have increased our NYSE back to double digit at 10%.

Speaker Change: First time since the acquisition of Lightwave in year 2016, driven by the increase in earnings fast. This marks a very important milestone in our value creation journey as we ambition to maintain the structurally.

Speaker Change: Actually in double digits and.

Speaker Change: And finally, let me mention that we will propose a dividend of <unk> 15 per share keeping our dividend payout ratio stable at 59%.

Speaker Change: Those good numbers combined with the underlying strong dynamics of our categories and brands make us confident to deliver our future value equation ambition.

Speaker Change: She leaves me very naturally to my last slide.

Speaker Change: Slide number 21 on our financial guidance we.

We have successfully demonstrated over the past three years that our business model is effective in delivering consistent results. We have taken difficult decisions in order to make our portfolio future fit and has the right assets the right culture and the right capabilities to start becoming a true value component of the.

The midterm guidance, we provided at our capital markets is also defining our ambition for this coming year 2025, we want to be in line with these midterm guidance, achieving net sales growth of plus three to plus 5% like for like with recurring operating income to grow faster than our net sales.

Antoine: And with that let me hand, it back to Antoine for the conclusion. Thank you yogurt.

Antoine: As we close this call and before we open to questions I want to leave you with a few thoughts.

Speaker Change: I mean, the first one and let's move to slide 23.

Speaker Change: Just to repeat what we told you at the June capital market events.

Speaker Change: We believe that the industry is at.

Speaker Change: Tipping point as people come to realize that health and nutrition.

Speaker Change: More intertwined than ever.

Speaker Change: We see changes in the way people eat age and leave a structural tailwind for Dino.

Speaker Change: We also believe that the markets play.

Speaker Change: Two what makes us unique I'll focus on the health.

Speaker Change: Our deep science, all brands and the categories in which they play which are proving months after months should be growth categories.

Speaker Change: We have helped also by the fact that in what's our becomes a multiple a world.

Speaker Change: We own a truly grill coop mobile.

Speaker Change: So we see the opportunity and we believe we can address it as we all know as you've seen a different company from what we were three years ago.

Speaker Change: Moving to the final conclusion charts.

Speaker Change: There is plenty we can improve.

Speaker Change: We believe that we all are stronger than we were asked I was just saying more resilient certainly ready for more.

Speaker Change: As I told you in June the next chapter of our renewed unknown.

Speaker Change: Is fundamentally about a few things.

Speaker Change: It starts and it is very important we're doubling down on renewed alone fundamentals driving consistent value creation, and a culture of continuous improvement on capabilities culture and talent.

Speaker Change: It is about <unk> the way, we look at our categories broadening our reach and our business model to become a truly multichannel company and further expanding our geographic footprint.

Speaker Change: You choose about moving to the front fruit on portfolio strategy and become more acquisition.

Speaker Change: While staying very financially disciplined.

Speaker Change: In India and it is about becoming as our you can just set a value compounded by consistently delivering on watches a long term business model. So we believe the best is still to come and with that I had.

Speaker Change: Hand over back to <unk>.

Speaker Change: Thank you Gwen.

Speaker Change: We'll now open the Q&A and start with the first question from Matt <unk>.

Speaker Change: Yes.

Speaker Change: Thank you Michel and good morning, Ottawa in yogurt.

Speaker Change: Two questions for me. Please the first one would be on your raw material and the pricing outlook for 2025.

Speaker Change: So curious to hear the kind of commodity cost inflation you are anticipating for this year and how it compares to 2024 and as a result pricing wise do you expect this kind of continued muted development. So in line with the previous three quarters you reported would you.

Speaker Change: Looking for a gradual buildup through the course of the year for pricing and maybe on this pricing element can you just shed a bit more light on what happened in specialized nutrition in Q4 because pricing.

Speaker Change: Negative all of a sudden.

Speaker Change: And then my second question is on your level of Reinvestments.

Speaker Change: Because it keeps on increasing year after year, if I remember well I think we were at 60 basis points in 2020 to 100 basis points in 2023, and now 170 basis points.

Speaker Change: So question here would be what are the key areas, where this 330 basis points over the last three years have gone are you getting the traction you were initially hoping for and I guess more importantly, looking ahead as you enter the new chapter of renewed <unk>. What do you think is the right.

Speaker Change: Level of reinvestment. So should we stay at these kind of elevated levels or would you expect some kind of normalization starting in 2025. Thank you very much.

Speaker Change: Good morning.

Speaker Change: We will do as usual address.

Speaker Change: On that one let me start with the second question I'm sure you're going to be complements and take the I'll take the first one.

Speaker Change: As you said, we have been reinvesting very consistently and the way we have invested is basically on the on three elements.

Speaker Change: We progressively rebuilt.

Speaker Change: Our share of voice to show a markets, we reinvested behind our brands.

Speaker Change: In our media and they are the journey is not over and the journey is not over because.

Speaker Change: Obviously, we moved toward a place where we are massively under investor, though to a place where we are getting closer to our fair share, but the name of the game when you're category to category.

Speaker Change: No.

John: John There is not so well.

John: By the way, it's a mix of our investing but also making sure that our investments are being impactful inefficient. So as I said during my opening statements.

John: We are much more disciplined in what we test how we tested we are raising the bar on our thresholds to make sure that.

John: Your invest it gets more traction.

John: The second area of investment was really our capabilities.

John: I mean broadly.

John: Divide it into two buckets, one is research and development.

John: We believe in silence all we all are.

John: Science based consumer and patient driven.

John: Science makes a difference.

John: All fields.

John: In addition, our in.

John: And you see it impacting the market there is a whole field.

John: The world of microbial.

John: I mean that you're opening lots of opportunities both by the way.

John: Our core businesses.

John: Of Edp, but also in in essence. So same story, we are extremely disciplined in the way we spend the money, but we will keep investing in.

John: In R&R, thus points are the last big block is what we do in our data.

John: Sure.

John: And that applies across the company I mentioned in my speech. We are we are improving the way we are planning for instance.

John: <unk> our game applying artificial intelligence through it all we apply artificial intelligence by the way too.

Speaker Change: K achieve.

Speaker Change: In advertising, so we stopped doing really good things in terms of.

Speaker Change: Content publisher, we obviously leverage in.

Speaker Change: In our scenario in R&D.

Speaker Change: You start combining things.

Speaker Change: Really different way so they are to the journey is not over which is why the.

Speaker Change: We have the model that we have.

Speaker Change: Sure.

Speaker Change: Choose are delivering consistently.

Speaker Change: Quality topline reinvesting into the long term of our business while.

Speaker Change: Increasing our profitability and we stick to that.

Speaker Change: We stick to that model, maybe on price Julien good morning.

Speaker Change: Starting with our Cogs inflation Youre, absolutely right that 'twenty 'twenty four we were benefiting from especially the first half in fact from some lower commodity prices, which have bounced back in a number of areas, which makes that we foresee for year 2025, what I would call an almost back to normal level of inflation remain.

Speaker Change: This in a reasonable corridor.

Speaker Change: But what we know today and that's important this inflation will be driven mainly by mid may.

Speaker Change: <unk> ingredients and few components of packaging.

Speaker Change: I mean, we are living in a volatile world.

Speaker Change: And so there could be some ups and downs ups and downs, which could come from energy ups and downs, which could come from potential custom duties.

In the news every day in the newspaper so the way we are going to manage it is three fold.

Speaker Change: First driving again productivity to the MX and <unk> was talking about digital investments a lot of this growth in equity into supply chain and you have seen is driving record productivity into in year 'twenty three 'twenty four and the same ambition is.

Speaker Change: For year 2025, you want to maximize the operational leverage by growing again, our volumes in year 2025 is a big lever for us, especially in Edp.

Speaker Change: And lastly, increasing our prices and here again in a targeted manner not broad based but it will be again consumer led.

Speaker Change: We will go especially for dose product, which has a more differentiated.

Speaker Change: Setting in the in the shelf.

Speaker Change: For those products, which have more functional and emotional benefits and.

Speaker Change: Our belief is that we have the right recipe to drive quality topline and quality bottlenecks.

Speaker Change: <unk> volume by region by region, because the profile of inflation is very different region by region.

Speaker Change: We value based on consumer focus.

Speaker Change: India and what makes the most sense for the consumer and gives us the best balance between I mean.

The leverage of our assets the competitiveness of our products. So we run we run a full mix of fashion and maybe just a quick one because you asked about specialized nutrition in pricing, which is very much driven by what you saw in China, which is which is a very temporary impact.

Speaker Change: Third we have been launching very successfully the census for range in China. We made sure that we got very fast to the necessary level of distribution and that's particularly in the back end of the year to carve outs also all of the GBS.

Speaker Change: <unk> so the OLED.

Speaker Change: <unk> products. So you will see that normalizing very fast in year 2025, but it was indeed very good investment, which is a big quite immediate.

Speaker Change: Thank you very much.

Jon Cox: Thank you. The next question is from Jon Cox.

Speaker Change: Okay.

Speaker Change: Thanks very much.

Speaker Change: Just a couple of questions from me on the free cash flow, you're saying, you're maybe not quite as.

Speaker Change: Structurally a 3 billion Euro company, we don't have all the financials, but I can see the working capital improvement.

Speaker Change: Why should that deteriorate all of a sudden just just trying to help us with the modeling I think if you look at consensus people have around two 5 billion free cash flow and maybe a bit of change on that over the next couple of years, but nowhere near 3 billion close to 3 billion should we be.

Speaker Change: Already for 2025.

Speaker Change: Question, just on momentum in terms of the <unk>.

Speaker Change: Q4 organic sales growth overall.

Speaker Change: It was very decent.

Speaker Change: <unk> seen that sort of continued momentum into the first quarter.

Speaker Change: Sort of as an add to that we've obviously seen this extraordinary growth going on in yogurt protein products in North America.

Speaker Change: Maybe maybe not helped by what's happening with <unk> et cetera are you seeing any signs of this coming into Europe. Yet obviously you are improving your business there.

Speaker Change: Do you think you will see a similar thing you talk about the whole holds the food industries.

Speaker Change: At a tipping point do you see that sort of acceleration coming through what do you think maybe Europe is maybe overly saturated when it comes to yoga anyway.

Speaker Change: Maybe you won't see that sort of trend emerge into into Europe. Thanks very much.

Speaker Change: So let me hi, John Good morning, Let me take the second question and.

Speaker Change: I'll take the first one first as you know, we don't give quarterly guidance. So I will.

Speaker Change: Don't get into any form of quarterly.

Speaker Change: Guidance on the on the trend.

Speaker Change: I mean, obviously the trend of GOP, one Israeli significance of USD talk.

Speaker Change: It's between 6% and 15% of people that are on <unk>.

Speaker Change: Is the are in the U S with the effect that you're seeing in the effect is of the council will make it to the effect of all the people is the risk of muscle loss. So you need <unk>.

Speaker Change: Some form of good disorder. So.

Speaker Change: Growth with protein.

The absolutes.

Speaker Change: Through our watches or deep trend.

Speaker Change: We see by the way no slowing down of the GOP one trend are in the.

Speaker Change: In the U S.

Speaker Change: Interestingly, we see are in the U S.

Speaker Change: <unk>.

Speaker Change: More natural and healthier food waste.

Speaker Change: The administration.

Speaker Change: It happens to be very much in sync with what we are.

Speaker Change: Selling so.

Speaker Change: We look at the market with some appetite.

Speaker Change: When it comes to Europe I.

Speaker Change: I think you start to question of saturation, but Europe has always been slower.

Speaker Change: In.

Speaker Change: Adopting our new trends or new fashion.

Speaker Change: Our problem of obesity.

Speaker Change: Or is the same in Europe and to a slightly different degree EBIT with kind of our businesses.

Speaker Change: Very important.

Speaker Change: Europe.

Speaker Change: Lisa I think both hold me on that towards the adoption is a bit sore obviously.

Speaker Change: The legalities of registering the legalities of OEM dosing on lots of investment in Europe.

Speaker Change: A much more complicated and longer than in the U S where do I see this time coming at some point in Europe, yes.

Speaker Change: Yes, we do.

Speaker Change: Which is why we keep doing what we are doing which is re anchoring our activity.

Speaker Change: And two are in.

Speaker Change: <unk> are driving our tissue holding out what we do.

Speaker Change: What we do with <unk>.

Speaker Change: So step by step by step.

Speaker Change: Not only strengthening our already digital toward Europe, virtually all getting at our future production. The timing is going to be the same at some point.

Good morning, Good morning, John on the cash flow, obviously very happy with the delivery of year 2024, with the 3 billion Youll, which you could see which has driven actually by two components an increase in our.

Speaker Change: Underlying absolute earnings and Thats important and Thats, something which is going to continue as much as a further step up of working capital, which contributed greatly to the 3 billion in 2020, if I could just now reaching minus eight 5% on net sales while and this is very important at the same moment, we have been increase.

Our capex investment as we have been discussing in June last year.

Speaker Change: Why are we not yet declaring victory that we already have fluctuated 3 billion your company because.

Speaker Change: Because we want to make sure that we increase our absolute earnings step by step.

Speaker Change: As a value component as <unk> was saying before we're making step by step so the annual contribution of working capital structure at minus eight 5% via del.

Speaker Change: But repeating every year 500 million of contribution if we have seen it in year 2024.

Speaker Change: This is not an easy one so very important step towards our objective beyond the right path to focus as they are and the business model is focused exactly on desk API.

Speaker Change: I hope that's how people start geologic they're structurally.

Speaker Change: We are delivering free cash flow, which is above the two and a half.

Speaker Change: Mark as we said at the CME.

Speaker Change: Thanks and welcome.

Speaker Change: Thanks.

Speaker Change: Thanks, Ken.

Speaker Change: Next question is from Shirley from had them.

Speaker Change: Yes, Thanks, good morning, John.

Speaker Change: Yes.

Speaker Change: Well I was wondering if you could give an update on the North America Edp business across high protein, but then also.

Chris: And you're right Chris.

Speaker Change: Your original yogurt sorry.

Speaker Change: And have you updated your marketing in U S yogurt for the USDA to crude planes around type two diabetes yet thank you.

Charlie: Yes, so good morning, Charlie.

Speaker Change: <unk>.

Speaker Change: Let me start with the end of your question.

Speaker Change: If you go on the if you look at our digital campaigns actually all we have the digital campaign to help people that are.

Speaker Change: <unk>.

Speaker Change: Diabetes.

Speaker Change: Issues to give them advice and we see by the way.

Speaker Change: Good uptake on yogurt, which is more important.

In this population so there is I mean.

Speaker Change: We should I should I coalition and received.

Speaker Change: The impact of it.

Speaker Change: If we look at our.

Speaker Change: The total workforce altogether, it's our it's running very very well we are still thinks and we're very open about it there are few things that we.

Speaker Change: Improved.

Speaker Change: Making good progress on our two good risk.

Speaker Change: <unk>.

Speaker Change: <unk> made on our key dredge for instance.

Speaker Change: Everything we do around our key mirrors and.

Speaker Change: Everything we do around coffee is doing very very well.

Speaker Change: We still have.

Speaker Change: Progress to make on our silk, although by the way, we are making progress step by step by step.

Speaker Change: It's a long term.

Speaker Change: So long term fixed so it's aman altogether are going into our dollar churn.

Speaker Change: Due to a number of things to be fixed which is why we built.

Speaker Change: Any kind of victory by the way you won't see www because in the last time, you always have a business that is challenged so when something will be fixed some thing else will have to be judicious, but altogether.

Speaker Change: You see the development of the liquids.

Speaker Change: Yes.

Speaker Change: High value dynamic can be.

Speaker Change: In the U S.

Speaker Change: We see a stabilization in <unk>.

Speaker Change: Plant based but not yet.

Well, we watch it.

Speaker Change: Well, we wanted to do and you'll see that.

Speaker Change: The category is doing pretty well.

Speaker Change: Thank you and then my second one was just on China IMS and can you maybe just talk about the rollout of sensors, where we are in that Craig.

Speaker Change: It goes into 2025, and then also your view on the stabilization.

Speaker Change: In China, where do you think this could be a longer term trend or if it's just driven by the year of the dragon. Thank you.

Speaker Change: So.

Speaker Change: Our stabilization of growth rate the honest answer is I don't know.

Speaker Change: We will know it will take a bit more time, obviously, it was really encouraging to see the stabilization.

Speaker Change: Obviously, there must be something that is linked to the dog, but there is also <unk>.

Speaker Change: We are intentional push from the Chinese government to stabilize gross rate whats the promotional growth I don't know at this stage, but thats, one youre touching very very.

Speaker Change: Close.

Speaker Change: To be honest I mean.

Speaker Change: We're super happy with the stabilization as you know when there are a number of abusing it carries over.

Speaker Change: From a public standpoint.

Speaker Change: For the first two of the life of the baby so.

John: I'll take the first John I'm looking for the segment.

Speaker Change: <unk>.

Speaker Change: As you know we launched in the in the back half of last year. The first results are encouraging.

Obviously, the sourcing in China.

Speaker Change: Public just catching.

Speaker Change: Through the shelf.

Speaker Change: We are impactful packaging the churn to distribute <unk> job.

Speaker Change: We are launching so we're getting quite a bit of quite a bit of traction or beyond the census, and.

Speaker Change: You see it reflected in the overall results in.

Speaker Change: In China, So we are quite.

Speaker Change: We've got quite helps.

Speaker Change: Grateful to China for consistently doing a very good job.

Angela: Thanks Angela.

Speaker Change: Thank you Sandy.

Speaker Change: Next question is from Warren Ackerman from Barclays.

Warren Ackerman: Good morning, Antoine Yoga and the material.

Warren Ackerman: Barclays couple from me as well as the first one is on the free cash flow obviously, great results, but the obvious question now is where does that cash get spent.

Warren Ackerman: I heard you talk about that.

Warren Ackerman: Some of the range.

Warren Ackerman: Are you talking about acquisitions.

Warren Ackerman: Are you able to <unk> talk a little bit about your M&A priorities by category or by region. Your hurdle rates and how ROIC plays into that I know that you've been in India, you're talking about India is a big priority, but you also want to build out specialized nutrition.

Warren Ackerman: I mean, what kind of size are you thinking we're talking bolt ons or something big just the whole topic around where does where does that cash get used and how youre thinking about it.

Warren Ackerman: And then secondly.

Warren Ackerman: Can we maybe dive into European Edp trends.

Warren Ackerman: <unk>.

Warren Ackerman: I saw it correctly European the ADP organic growth in the fourth quarter in isolation I think it was flat.

Warren Ackerman: And then within that Im sure Youll seeing slightly positive volumes and negative.

Warren Ackerman: Pricing can you talk a bit about what's actually happening on the ground in terms of your everyday.

Warren Ackerman: <unk> is the high protein rollouts.

Warren Ackerman: Your kind of outlook is because on the scanner data, we can see still showing some weakness.

Warren Ackerman: I just wanted to ask looking forward what your plans are on some of the big kind of.

Warren Ackerman: Brands, like Activia, which still seem to be ceding market share. Thank you.

Warren Ackerman: Hey, Juan will do probably.

Warren Ackerman: So on that let me start with a question on acquisition, obviously, you are not going to.

Warren Ackerman: Thank you.

Warren Ackerman: Where how much and at which price as you would expect.

Warren Ackerman: But clearly we want to move to the phone switch on.

Warren Ackerman: All acquisition.

Warren Ackerman: So until we choose doses.

Warren Ackerman: It's all improve our market shares always <unk> does it improve our market shares.

Warren Ackerman: Does it improve our market position in places, where we are not there.

Warren Ackerman: Does it bring us or businesses or capabilities in places, where we all look I mean lacking those capabilities.

Warren Ackerman: And we want to do that in a way that are financially responsible to making sure that.

Warren Ackerman: Impact on alloys.

Warren Ackerman: Are there any muted in time.

Warren Ackerman: And.

Warren Ackerman: Where that acquisition is structurally improving.

Warren Ackerman: The quality of our business so that's the future.

Warren Ackerman: Permanent.

Warren Ackerman: Luke.

Warren Ackerman: True.

Warren Ackerman: We really do that.

Look at everything in the field of specialized nutrition. There is no secret we have been buying some homecare businesses.

Warren Ackerman: Last year.

Warren Ackerman: Couple of geographies, so all I'll tell nutrition.

Warren Ackerman: You've seen us make a move on our tissue.

Warren Ackerman: In the U S. I mean, the two points that are common are between that is products, where our science can make a difference.

Warren Ackerman: That's at the heart of our mission of.

Warren Ackerman: Delivering.

Warren Ackerman: Through our food so that is the I mean.

Warren Ackerman: That is the future.

We are pretty active but you will understand that I'm not going to share more details on where and at which price or what kind of element yoga, yes, just and just to reiterate one thing, which Antoine said, we have been celebrating this morning, the fact that the.

Warren Ackerman: Has been posting a 10% NYSE since year 2016, and when you talk about hurdle rates, but its very important that we as things structurally and in double digit territory I.

Warren Ackerman: I think is a very important in our framework for M&A.

Warren Ackerman: Thanks all.

Speaker Change: On Edp.

Speaker Change: Well first we are happy to see that volume mix is.

Speaker Change: In the positive territory and not for one quarter.

Speaker Change: Coming out of 10 years of.

Speaker Change: <unk>. So the work is starting to.

Speaker Change: Sure.

Speaker Change: You also have the option of things too.

Speaker Change: Plenty of things to be done interestingly are in.

Speaker Change: You don't have one Europe.

Speaker Change: You are very very different.

Speaker Change: You are very very different situations or country by country saw you take actions that we start seeing also.

Speaker Change: An improvement in the volume mix or a part but actually the things are very spread depending on the countries, which in some countries, where it's getting markedly better which has some other countries was more work to do so we'll keep going at it.

Speaker Change: We improve it.

Speaker Change: <unk> is I mean, the relaunch that we've made and the work that we are making us.

Speaker Change: Universally positive.

Speaker Change: Well.

Speaker Change: We are all working.

Speaker Change: On the <unk>.

Speaker Change: Volumes of our core.

Speaker Change: Sure.

Speaker Change: We are getting traction on volume and we've made a choice to go for volume because it gives us leverage in our factories also drives the penetration into.

Speaker Change: Into the category and then country by country, you really are things that treaty to retrofits.

Speaker Change: My preferred brand in the French portfolio.

Speaker Change: Thats, not where I want them to be.

Speaker Change: So and so.

Speaker Change: It's a country by country.

Speaker Change: But altogether the direction is the right. One we worked at every level of the portfolio much more discipline are trolling alto winning sales, but we also very practical when something's working say in France, and Belgium, Spain.

Speaker Change: Well, we work in our spend while we keep diving in.

Speaker Change: So thats.

Speaker Change: That should be the way we look at.

Speaker Change: Quite a bit of progress versus where we have been for the last 10 years, but nowhere near the end of the journey.

Speaker Change: Thanks.

Ryan: Thank you Ryan.

Ryan: So for the last question and we'll have next time, we update for that.

Ryan: Definitely.

Ryan: Thank you very much.

Ryan: I have one.

Speaker Change: Total clarification question and one general when I look at your performance in developed versus emerging markets, particularly on the margins versus expectations, we're seeing somewhat weaker dynamics around emerging markets is it just a function of.

Cost of goods sold and coverage around raw material inflation or are there other aspects related to pricing or you are maybe bottom operating initiatives.

Speaker Change: And my second question is obviously in several categories, but one which stands now at where you were very successful with coffee creations. One of your core competitors has been increasing.

Speaker Change: Capacity in this kind of doubling down on the category are you seeing anything happening in terms of your market share challenges or tougher competitive environment and are you doing anything to pre.

Speaker Change: Duct and growing our market share for that.

Speaker Change: For U S coffee creamers. Thank you.

Speaker Change: No. Thanks Vittorio will.

Speaker Change: They are doing well.

Speaker Change: George on computation to be honest I mean, there has been competition overall private label have been very aggressive.

Speaker Change: He is doing a very good job.

Speaker Change: Another competitor announced that they recommend so.

Speaker Change: Competition is good.

Speaker Change: It will grow their category, which metros enormously.

Speaker Change: Sure.

Speaker Change: First of all our tools, which matters enormously as well so I.

Speaker Change: I mean.

I mean I love competition.

Speaker Change: Do we see something that she is a horrible right now no we didn't get to feel it's always get tougher and in some ways. It's group.

Speaker Change: Because it will avoid that we become complacent.

Speaker Change: Completions.

Speaker Change: On the emerging markets, we do address.

Speaker Change: Youre going to take me mentioned Oneworld.

Speaker Change: Our introduction, besides all which we wouldn't explain alternatives and all the rest of it.

Speaker Change: <unk> been very very systematic at our cleaning our portfolio cleaning all business model cleaning the way we go at.

Speaker Change: Markets in emerging markets and we've done that in a number of different choice.

Speaker Change: Our existence.

Speaker Change: A number of categories. So you take what we did in Brazil.

Speaker Change: <unk>.

Speaker Change: <unk>, which we licensed out.

Speaker Change: Sure some of our business model and what multiple to Bronco exiting because you're gaining momentum we are becoming.

Speaker Change: We are becoming.

Speaker Change: Much better.

Speaker Change: We have allocated the Ikea parcel items to some of those countries.

Speaker Change: Since you said guys couldn't care less about volume couldn't care less about.

Speaker Change: About your market share is frankly unique to fixture business model.

Speaker Change: Showing progression in the Gulf countries to work to bring some of those.

Speaker Change: Actually there's not a lot to add to what I, just said that happened.

Speaker Change: Of the remaining Underperformers in this still sit in this pocket of the emerging markets, which we indeed see as an opportunity moving forward.

Speaker Change: And on the coverage.

Speaker Change: Im not talking about hedging strategies coverage of your cost dynamics are there any differences, we should bear in mind the cost inflationary in.

Speaker Change: In line with the emerging markets and developed ones.

Speaker Change: Structurally no.

Speaker Change: The difference between emerging markets and developed market. It's a question of business model and one was looking further into that and to make sure that we're delivering the right product at.

Speaker Change: At the right level of differentiation for each and every of those markets. So again, we see that as an opportunity than anything else.

Speaker Change: Thank you very much.

Speaker Change: Thank you Vic and with that we close the Q&A for today.

Speaker Change: Thank you everyone.

Speaker Change: I'm sure, we'll see a number of you in the coming.

Speaker Change: As of the week, so looking forward to continue.

Speaker Change: Conversation and good day to everyone.

Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.

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Speaker Change: Good morning, everyone mezzanine as well just speaking thank you for being with US. This morning for denim 2020 for full year results call.

Im here with our CEO and 20% that we cannot CFO yoga Nessa, who will go through some prepared remarks before taking your questions.

Speaker Change: During the presentation and with that let me Andy offline, Thank you materials and <unk>.

Good morning, everyone, a very warm welcome to our 24 full year results presentation.

Speaker Change: Youre going to and I am delighted to be with you today to share what is another strong set of results.

Speaker Change: This results have a particular, meaning to all of us as they mark the successful close of the first chapter of renewed.

Speaker Change: Chapter, we opened three years ago.

The strategy, which we initiated then is starting to bear fruits and gives us a solid base as we enter the next chapter.

Speaker Change: Of renewed.

Speaker Change: We are progressively becoming a different company.

Speaker Change: Truly sign space, and consumer and patient focused company, which stands for health through food.

Speaker Change: Penny, which is rediscovering the power of execution and consistency.

Speaker Change: And for all of this and before anything else I'd like to express my gratitude to all Dinos.

Speaker Change: They are making this happen day in day out so big thing to you guys.

Speaker Change: Let's move to the results on slide number three.

Speaker Change: As you will have seen in the press.

Speaker Change: Ladies and yoga will cover in more details later.

Speaker Change: We delivered a strong like for like sales growth of plus four 7% in quarter four.

Leading to a plus four 3% growth for the full year 2004.

Speaker Change: Importantly, and as we intend to renew that on strategy, we have kept improving the quality of our growth transitioning over the past three years from a negative to consistently positive volume mix delivering a plus 3% contribution in 2004.

Speaker Change: With a volume mix back to our factories, we are benefiting from operating leverage and this enhanced by another year of record productivity.

Speaker Change: Is allowing us to further invest behind our brands and capabilities and to proactively drive our categories, while expanding our profitability.

Speaker Change: In 2004, we increased our operating margin by 39 basis points versus 'twenty three.

Speaker Change: Bringing it to 13%.

Speaker Change: It is the way we intended the renewable business model to work.

Speaker Change: The strong financial discipline, we apply to the business starts showing on many levels.

Speaker Change: At EPS level.

Speaker Change: He is a plus two 5% increase.

Speaker Change: When it comes to free cash flow was an impressive 3 billion delivery.

Speaker Change: By strong working capital management.

Speaker Change: And last but certainly not least it is an important one to us we are back in double digit ROIC GTI Tory.

Speaker Change: Third 10 basis points increase in just two years.

Speaker Change: So all of them.

Speaker Change: Surely financial side as well, we start seeing the power of the new data.

Speaker Change: And importantly, we do all of this while driving sustainability focused rich impactful way as we are convinced it is critical for the long term residents of our business. We moved to the first place of the <unk> index from number four in 2003.

Speaker Change: So we are delivering on our new strategy.

Speaker Change: Trying to be very consistent and system.

Speaker Change: Addressing what needs to be addressed but also facing to what still needs improvements.

Speaker Change: Let's now move into a bit more detail on slide four.

Speaker Change: As I said earlier, we have been over the last three years working at rebalancing our growth model.

Speaker Change: <unk> price and volume mix and there we have made consistent progress.

Speaker Change: Quarter, four marks the sixth consecutive quarter of volume mix improvements.

Speaker Change: Our categories are showing good growth.

Speaker Change: And the resilience of our portfolio is improving step by step our.

Speaker Change: Our winning platforms are again growing double digit in 2004, including high protein coffee creation and medical nutrition.

Speaker Change: We are making progress on our core.

Speaker Change: As shown by a positive volume mix in Edp Europe for five consecutive quarters. After 10 years of decline.

Speaker Change: The journey is not over and there is still plenty to do.

Speaker Change: From a sharpening silk in the U S to continuously strengthening axial through quarter two of our large brands.

Speaker Change: We have also proven that.

Speaker Change: Harper focus and discipline, we can turnaround the underperformers.

Speaker Change: Zone is a good example of US it has again grown double digit in 2004 on the back of stronger fundamentals combined with relevant innovation, our electronics products, which many of you tasted in June <unk>.

Speaker Change: Encouraging results.

Speaker Change: Now moving to slide five.

Speaker Change: As you may recall from our June CME.

Speaker Change: We are convinced that the food industry is at a tipping points and that we feel equipped and relevance for the world to come.

We start seeing some tangible signs of its firstly.

Speaker Change: The categories in which we are playing keep growing faster than the retrofits gut health with Michael Blum.

Speaker Change: Fourteens healthy hydration immunity.

Speaker Change: More relevant than ever.

Speaker Change: Secondly, our portfolio is about health through food and recognized as such.

Speaker Change: We were extremely proud to have been ranked number one by <unk>. This year as I mentioned earlier.

Speaker Change: What's even more important.

Speaker Change: Thats our products deliver not only on taste, but also on health close to 90% of our portfolio was call it three and a half stores or more in their head star rating system.

Speaker Change: We do not only play in healthy and growing categories.

Speaker Change: Also play in healthy and growing channels in 'twenty for more than 50% of ourselves we're outside mass retail.

Speaker Change: And we are growing in these channels such as wafer more hospital pharmacy, and homecare two to three times faster than in mass retail where it.

Speaker Change: More people.

Speaker Change: In different places at different moments in their life. This contributes as well to go as evidence of our model.

Speaker Change: Now moving to slide six.

Speaker Change: To remain relevant and competitive in the long run we are focused and we will keep focusing.

Speaker Change: What makes the difference.

Speaker Change: We keep investing into brands and capabilities.

Speaker Change: We keep focusing on operational excellence, but also on differentiating science.

We also work at improving the quality of our spending we test more we have a better balance.

Speaker Change: Balance of working to Nonworking media.

Speaker Change: There are some good progress, but still some way to go.

Speaker Change: On average over the last three years, we have invested additionally, around 100 bps per year behind our brands and capabilities.

Speaker Change: And we didn't only increased the amounts while we invested in future growth drivers. We are also focusing on execution excellence and operational efficiencies.

Speaker Change: And it shows in the numbers.

Speaker Change: With above industry average productivity.

Speaker Change: High levels of customer service.

Speaker Change: And there too we are investing for the future in 2004, we opened a new integrated planning centers with a focus on leveraging AI to provide a further drive of future operational efficiencies.

Speaker Change: We told you in <unk>, almost two years ago and refreshed last June.

Speaker Change: That science was back at the heart of what we are doing.

Speaker Change: You're starting to show very concretely.

Speaker Change: We are accelerating the Nomura scientific paper, we publish and the number of patents we filed.

Speaker Change: Our scientific and technological resources towards key areas.

Speaker Change: Taking into account emerging trends and insights.

Speaker Change: Many aspects of nutrition.

Speaker Change: We also successfully deploying digital health technology as key value levers for balanced brands.

Speaker Change: Million of health data points, and submitting digital health Tech patents.

Speaker Change: So now moving to slide seven.

Speaker Change: The name of the game for US is not only to invest in future looking science.

Speaker Change: Breadth of your seat turn the science into all event consumer and patient centric innovation.

Speaker Change: And in doing so.

Speaker Change: To drive the growth of our categories.

Speaker Change: We see this happening for example in North America in many different ways for instance, with our initiative addressing diabetes.

Speaker Change: In recent digital campaigns, we noted direct increase in our yogurt consumption.

Speaker Change: As consumers looking for reduced sugar options.

Speaker Change: We're also providing valuable nutritional support dedicated to individuals on the weight loss journey.

Speaker Change: We see a broader trends around consumers living a more active lifestyle.

Speaker Change: Knowing that boost these journeys driving each for <unk> and for better good health and it shows our <unk> high protein proposition in the U S.

Speaker Change: Retail sales value.

Speaker Change: Of over $1 billion.

Speaker Change: What is true for yogurt is even more relevant for infant formula where science driven innovation plays a critical role.

New theories are pioneering innovation based on advanced breast milk research was launched softly in Hong Kong only a few months ago and shows encouraging early signs.

Speaker Change: It comes on the back of a senses.

Speaker Change: Several top premium formats launched in China in late 'twenty three.

Speaker Change: Which is not meaningfully adding to our growth in China.

Speaker Change: Across our portfolio, we are engaged in a very systematic approach to consumer all event shipyard.

Speaker Change: Sure.

Speaker Change: In taste and experience as food is about pleasure.

Speaker Change: <unk> when it comes to been issues as <unk> is about health and nutrition.

Speaker Change: We are progressing step by step as you can see for instance on <unk>, we always start reclaiming the gatehouse territory.

Speaker Change: <unk>.

Speaker Change: Benefits such as muscle recovery.

Speaker Change: But this is only the start of our journey.

Speaker Change: Lots to be done more opportunities to be addressed.

Speaker Change: Moving to slide eight.

Speaker Change: All of this is enabled by a deep cultural change, which we initiated when we start to renew.

Speaker Change: And which we will keep embedding in the coming years.

Speaker Change: A culture, where we play to win rather than playing not to lose.

Speaker Change: Culture, where things move on a different rhythm.

Speaker Change: <unk> reduced keep growing with.

Speaker Change: And intensity to push the limits and achieve even more.

Yoga: And with this let me hand over to yoga yoga and over to you.

Yoga: Thank you Angela and good morning, everyone, let's begin our financial review with Slide number 10, and our net sales performance.

Yoga: Very pleased to end the year with a strong finish reaching in this fourth quarter like for like sales growth of as much as plus four 7%.

Yoga: It was the strongest quarter of the year not just in terms of the overall growth, but more importantly also in terms of its quality.

Yoga: Volume mix contributed more than 4% driven by multiple growth platforms across the regions by pricing remained within the expected corridor.

Yoga: Four 6%.

Speaker Change: It is great to see increasingly the benefits of our strategy in action team.

<unk> seen the results of our very intentionally investment approach.

Yoga: And it is probably best explained when moving to the next slide slide number 11.

Yoga: Our full year growth reached plus four 3% like for like in 2024 and as illustrated here all our regions in all of our categories are contributing to it.

Yoga: As important as we are leveraging today, a portfolio, which has a large number of new platforms.

Yoga: It makes our delivery more and more resilient and Berlin, a key asset in this volatile world.

Yoga: You may be interested to know that the component of volume mix alone.

Yoga: Also been positive for all categories, and all regions, which is another proof point of the underlying quality of our growth.

Yoga: It will come shortly to the performance review by regions. Let me just briefly comment on the dynamics by category.

Yoga: Our edp business delivered solid growth of plus three 8% in 2024, we are very pleased with the continued strong performance in countries like U S, Canada or Japan.

Yoga: In Europe the portfolio transformation is now gearing fruits.

Yoga: We have been delivering a positive volume mix contribution in each quarter of the year. After so many years of neglect.

Yoga: Our leading platform of high quality and continued to grow double digit and we have landed this year meaningful innovations.

Yoga: Notably the domestic recovery claims on high protein.

Well as a new great tasting key for your product in Europe under the television right.

Yoga: Specialized nutrition sales were up plus four 6% in 2020 for this growth was driven by a medical nutrition business with China again growing double digit in the segments.

Yoga: By the way the medical segment continued its stellar growth strength infant milk formula posted yet another year of solid growth.

Yoga: Our premium innovation strategy is working well.

Yoga: Strong growth in the upcoming brand doing all year 2024.

Yoga: And lastly in water, where our business grew by plus five 1% in 2024.

Speaker Change: Not terribly strong double digit growth of the <unk> platform in China as Antoine mentioned before.

Speaker Change: Worth mentioning here also the very strong performance of our <unk> brand in Europe as well as in North America, winning.

Speaker Change: Winning market share in many markets with its premium positioning.

Speaker Change: Before commenting on the regions lets move on to the traditional <unk>, which.

Speaker Change: Number two.

Speaker Change: The plus five 3% like for like growth was driven by plus 3% volume mix by the price effect continue to normalize reaching plus one 3%.

Speaker Change: Outside of the like for like <unk>, and others had a negative effect of minus <unk>, 3%.

Speaker Change: Reflecting notably the depreciation of emerging market currencies against the euro partially offset by the impact of hyper inflation.

Speaker Change: Scope also had a negative impact at minus five 8%, mainly resulting from the deconsolidation of our Edp, Russia as well as the horizon organic businesses.

Speaker Change: In total reported sales were slightly down as mainland Europe by 9% for 2020, bringing our net sales to $27 4 billion euros.

Speaker Change: It is important to better understand the like for like performance by region. So I propose to start with Europe.

Speaker Change: Light number 13.

Speaker Change: In Q4 2020 for Europe sales were up plus one 8% on a like for like basis with volume mix at plus 3% in price at minus one 2%.

Speaker Change: <unk> adjusted the fifth consecutive quarter of positive volume mix, demonstrating a step by step progress of our Edp business.

Speaker Change: In the dairy category the growth is driven by products such as our high protein range as well as by the immunity platform with activated.

We are also confirming a solid growth contribution from our <unk> brand in the plant based segment, which is now back into competitive growth momentum since.

Speaker Change: Quarters.

Speaker Change: In specialized nutrition, we delivered good growth, especially in our medical nutrition business.

Speaker Change: Both brands soft demand as well as <unk> growing double digits.

Speaker Change: And in water.

Speaker Change: Posted strong growth in this last quarter a year.

Speaker Change: Delivered by the <unk> <unk> and <unk> brands.

Speaker Change: Looking at the full year Europe delivered plus one 7% like for like sales growth was up plus one 4% contribution from volume mix.

Speaker Change: Operating margin increased by plus 48 bps to 11, 9%.

Speaker Change: We are pleased with the fact that we increased the region's profit margins through operating leverage.

Speaker Change: At the same moment as we invest significantly into our business.

Speaker Change: To further step up the superiority of our products services and brands.

Speaker Change: And with that let's move on to North America on slide number 14.

Speaker Change: In North America quarter, four sales were up with a stellar plus seven 7% on a like for like basis led by volume mix up plus five 9% and price up plus one 9%.

Speaker Change: In dairy the performance was driven by exceptional growth of our high protein platform, namely Iqos.

Speaker Change: Could you post benefiting in this last quarter for particularly strong demand for the yogurt category.

Speaker Change: Also our coffee creations portfolio delivered another quarter of strong growth.

Speaker Change: Driven by both brands International delight and Stoke coffee.

Speaker Change: Specialized nutrition the growth was led by our medical nutrition platform and here, especially by the pediatric specialties portfolio.

Speaker Change: In water, we are seeing continued strong demand for our <unk> brand, which is expanding its market shares in the premium segment.

Speaker Change: And finally plant based where the teams are applying the learnings from our successful IPO turnaround in Europe.

Speaker Change: Positioning the brand of key occasions and consumer needs.

Speaker Change: At the same moment, we are complementing the Sig branded portfolio.

Speaker Change: Added value innovations like the kids range, which we launched in this last quarter of the year 2024.

Speaker Change: Looking at the full year North America close with like for like sales up plus five 2% is a strong contribution from volume mix at plus four 1% margin was significantly up plus 174 bps to 11, 4%, mainly driven by operating leverage and the high level of productivity.

Speaker Change: In our supply chain.

Speaker Change: And with that lets now move on to China, North Asia, and Oceania region on slide number 15.

Speaker Change: Q4 sales in the region were up plus six 8% on a like for like basis with strong volume mix at plus nine 8% and price at minus 3%.

Speaker Change: The demand for our product in China remains very high demonstrated by the almost double digit volume mix performance.

Speaker Change: At the same moment invested into expanding our distribution, particularly for our innovations in the IMF space, which is driving the price effect temporarily down important to say that despite effectively normalize that other soon in 2025.

Speaker Change: Our new portfolio is now placed successfully in the market.

Speaker Change: A few comments on the different business areas.

Speaker Change: In specialized nutrition, our infant milk formula continued to deliver significant market share gain.

Speaker Change: In the category, which is showing further signs of improvement.

Speaker Change: Our premium innovation strategy is working well and indeed, we are particularly pleased with what we call the incentives platform, which we launched over the last quarters into the ultra premium segment.

Speaker Change: This incentive range is already contributing greatly to our market share performance.

Speaker Change: In parallel our medical nutrition business maintained its strong momentum with again double digit growth for the quarter driven by both the <unk> and <unk> brands.

Speaker Change: And finally in waters main zone confirmed its momentum with another quarter of solid growth.

Speaker Change: While edp sustained its strong performance in Japan with the continued success of Iqos and television brands.

Speaker Change: For the full year sales in the region grew plus 8% with volume mix of plus nine 1% to full year operating margin was down slightly to 29, 4%, reflecting the additional investments allocated to drive further market share gains in this specialized nutrition space.

Speaker Change: And with that let's turn to Latin America on slide number 16.

Speaker Change: In Latin America, Q4 sales were up plus four 7% on a like for like basis with volume mix up plus one 2% and price up plus three 5%.

Speaker Change: And Edp, we posted solid growth.

Speaker Change: Despite being impacted by the licensing out of our <unk> business in Brazil. Thanks.

Speaker Change: Thanks to the strong performance of our downtown Dot net and <unk>.

Speaker Change: Specialized nutrition delivered strong growth led by <unk>.

Speaker Change: <unk> benefited from the normalization of the weather conditions, which caused a softer third quarter as you may remember.

Speaker Change: For the full year like for like sales were up plus four 2%. The full year margin was down minus 60, a deep impacted <unk> in the first semester of 2024 by the consequences of the hyperinflation in Argentina. What is important is what is happening with the underlying performance and here. We can report more competitive margin progression outside of <unk>.

Speaker Change: Currency effects of hour plus 90 bps.

Speaker Change: You could be able to see the benefits of that positive margin development reported in our numbers once inflation and devaluation is normalizing.

Speaker Change: And here, we see encouraging signs for year 2025.

Speaker Change: And finally, let's have a look at our EMEA region on slide number 17.

Speaker Change: Net sales in this region increased in the last quarter by plus five 4% on a like for like basis with volume mix up plus one, 7% and price up plus 3% visit growth.

Speaker Change: Growth was notably led by the solid performance of specialized nutrition.

Speaker Change: <unk> brand is growing again.

Speaker Change: Right.

Speaker Change: Worth mentioning the strong performance in India, especially in the IMF Super premium segment.

Speaker Change: We're going to start that in the market as well as with our protein powders, namely our party next diabetes scale.

Speaker Change: In Edp Dairy Africa showed continued progress, particularly in Morocco, where we are now delivering the number of quarter solid growth numbers.

Speaker Change: The business model, which is further stepping up its profitability and cash.

Speaker Change: For the full year effect of the region were up five 7% with volume mix up plus one 4% implies a plus 2%.

Speaker Change: <unk> margin was pretty steady at 10, 4%, reflecting both a significant increase of the gross margin as well as meaningful as the investment to be able to capture future growth opportunities of this zone.

Speaker Change: I suggest we conclude here. This is under review and move on to the margin bridge for the full year 2024 on slide number 18.

Speaker Change: Although the cutting operating margin reached 13% in 2024, marking an improvement of 39 bps compared to previous year.

Speaker Change: And this is where we can confirm that our business model is working our focus on quality growth and record productivity is driving a strong increase in the margin from operations up as much as plus 240 <unk>.

Speaker Change: This has enabled us to reinvest into the business by as much as 173 bps into A&P research and innovation into sales and marketing capabilities.

Speaker Change: On the back of this we observed of our portfolio and renovated many of our brands to drive superiority and bring meaningful innovations as we move into year 2025, and as our share of voice is now much more aligned with our sales market, we will turn our attention to more category leadership initiatives continuing to invest for fuel.

Speaker Change: Growth.

Speaker Change: Lastly, what we call the slide other effects that reflects notably the impact of scope arising from the before mentioned deconsolidation of diluted businesses, which are more than offset by a negative forex impact for a combined effect of minus 40 bps.

Speaker Change: Let's now move onto the EPS bridge on slide number 19.

The recurring EPS reached three year was <unk> 63 in 2024, which presents plus two 5% increase compared to last year importantly, the main contributor of recurring EPS growth was a strong operational performance, which had just been through at plus 14, 2%.

Speaker Change: At the same time able to increase the benefits from tax associates and minorities. Thanks to our strong managerial focus by the team.

Those two positive building blocks were partially offset by a negative impact from currency as well as a negative scope effect, resulting from the deconsolidation of our businesses as already discussed.

Speaker Change: And now let's look at some of our other financial results on slide number 20.

Speaker Change: You will remember from our CME presentation in June last year that we have an ambition to turn our company into a consistent value compound.

Speaker Change: In 2024, a strong step up in earnings combined with a continued focus on working capital management.

Speaker Change: Has enabled us to post a record free cash flow, reaching as much as 3 billion, an increase of 14% compared to last year.

Speaker Change: While we cannot yet claim to be a structure with 3 billion free cash flow company. We have made another important step versus these objectives, demonstrating the ability of our organization to drive high cash conversion.

Speaker Change: The cash flow of $3 billion is enabling us to reduce significantly our debt leverage with net debt reducing to $8 6 billion in 2024.

Speaker Change: Pinging us to the lower end of our target leverage coverage at one nine times.

At the same moment. We are also very pleased that Antoine mentioned that with we have increased our NYSE back to double digit at 10%. The first time since the acquisition of Lightwave in year 2016, but driven by the increase in earnings fast. This marks a very important milestone in our value creation journey.

Speaker Change: The ambition to maintain the <unk>.

Speaker Change: Actually in double digits.

Speaker Change: And finally, let me mention that we will propose a dividend of <unk> 15 per share keeping our dividend payout ratio stable at 59%.

Speaker Change: Those good numbers combined with the underlying strong dynamics in our categories and brands make us confident to deliver future value creation ambition.

Speaker Change: She leaves me very naturally to my last slide.

Speaker Change: Slide number 21 on our financial guidance.

Speaker Change: We have successfully demonstrated over the past three years that our business model is effective in delivering consistent results, we have taken difficult decisions in order to make our portfolio future fit enhancing.

Speaker Change: And he is now the right assets, the right culture, and the right capabilities to start becoming a true value compound out.

Speaker Change: The midterm guidance, we provided at our capital markets is also defining our ambition for this coming year 2025, we want to be in line with these mid term guidance, achieving a sales growth of plus three to plus 5% like for like.

Speaker Change: Recurring operating income to grow faster than our net sales.

Antoine: And with that let me hand, it back to Antoine for the conclusion. Thank you again.

Speaker Change: As we close this call and before we open to question I want to leave you with a few thoughts.

Speaker Change: The first one and let's move to slide 23.

Speaker Change: To repeat what we told you at the June capital market events.

Speaker Change: We believe that the industry is at a tipping point as people come to realize that health and nutrition.

Speaker Change: More intertwined than ever.

Speaker Change: We see changes in the way people eat age and leave a structural tailwind for Dino.

Speaker Change: We also believe that the markets play.

Speaker Change: What makes us unique our focus on health.

Speaker Change: Our deep science, all brands and the categories in which they all play.

Speaker Change: Which are proving months after months should be growth categories.

Speaker Change: We have helped also by the fact that in what's our becomes a multiple a world.

Speaker Change: We own a truly <unk> model.

Speaker Change: So we see the opportunity and we believe we can address it as we are now as you have seen a different company from what we were three years ago.

Speaker Change: Moving to the final conclusion charts.

Speaker Change: There is plenty we can improve.

Speaker Change: We believe that we all are stronger than we were asked I was just saying more resilient certainly ready for more.

Speaker Change: As I told you in June the next chapter of our revenue down.

Speaker Change: Is fundamentally about a few things.

Speaker Change: It starts and it's very important we are doubling down on renewed alone fundamentals driving consistent value creation, and a culture of continuous improvement on capabilities culture and talent.

Speaker Change: It is about <unk> the way, we look at our categories broadening our reach and our business model to become a truly multichannel campaign and further expanding our geographic footprint.

Speaker Change: You choose about moving to the front fruit on portfolio strategy and become more acquisition.

Speaker Change: While staying very financially disciplined.

Speaker Change: In India and it is about becoming as Juergen, just said value compounded by consistently delivering on watches a long term business model. So we believe the best is still to come with that.

Hand over back to <unk>.

Speaker Change: Thank you Glenn So we will now open the Q&A and start with the first question from Matt.

Speaker Change: UBS.

Speaker Change: Thank you Michel and good morning <unk>.

Speaker Change: Two questions from me please.

Speaker Change: First one would be on your raw material and pricing outlook for 2025, So curious to hear the kind of commodity cost inflation you are anticipating for this year and how it compares to 2024 and as a result pricing wise do you expect this kind of.

Speaker Change: <unk> muted development so in line with the previous three quarters you reported.

Speaker Change: Would you be looking for a gradual buildup.

Speaker Change: The course of the year for pricing and maybe on this pricing element can you just shed a bit more light on what happened in specialized nutrition in Q4, because pricing turned negative all of a sudden.

Speaker Change: And then my second question is on your level of Reinvestments.

Speaker Change: Because it keeps on increasing year after year, if I remember well I think we were at 60 basis points in 2020 to 100 basis points in 2023, and now 170 basis points.

Speaker Change: Question here would be what are the key areas, where this 330 basis points over the last three years have gone are.

Speaker Change: Are you getting the traction you were initially hoping for and I guess more importantly, looking ahead.

Speaker Change: You entered a new chapter of renew Denon, what do you think is the right level of reinvestment. So should we stay at these kind of elevated levels or would you expect some kind of normalization starting in 2025.

Speaker Change: You very much.

Good morning.

Speaker Change: And we'll do as per usual address.

Speaker Change: On.

Speaker Change: Let me start with the second question I'm sure you're going to be complementary.

Speaker Change: The first one.

Speaker Change: As you said, we have been reinvesting very consistently and the way we are invested is basically on.

Speaker Change: On three elements.

Speaker Change: <unk> simply rebuilt.

Our share of voice to show a market, where we have invested behind our brands.

Speaker Change: In in media and they are the journey is not over and the journey is not over because.

Speaker Change: Obviously, we moved hard place, where we are massively under investor to a place where we are getting closer to our fair share, but the name of the game when you're a category two categories. So the journey is not over by the way, it's a mix of our investing but also making sure that our investments in us.

Speaker Change: All are being impactful inefficient so as I said during my opening statements.

Speaker Change: We are much more disciplined in what we test how we tested we are raising the bar on our thresholds to make sure that every our IOL, we invest it gets more traction there.

Speaker Change: The second area of investment was really our capabilities.

Speaker Change: I mean broadly.

Speaker Change: Divide it into two buckets, one is research and development.

Speaker Change: We believe in science.

Speaker Change: Sure.

Speaker Change: Science based consumer and patient driven comp.

Speaker Change: Science makes a difference.

Speaker Change: Whole fields.

Speaker Change: In addition, our in.

Speaker Change: Protein and you see its impact in the market, there's a whole field.

Speaker Change: The world of microbial and.

You're opening lots of opportunities both by the way in our core businesses.

Speaker Change: I mean <unk> also in <unk>.

Speaker Change: So I mean same story, we are extremely disciplined in the way we spend the money, but we will keep investing in our in R&R. Thus points are the last big block is what we do in our data.

Speaker Change: <unk>.

Speaker Change: And that applies across the company I mentioned in my speech. We are we are improving the way we are planning for instance.

Speaker Change: <unk>, our game applying artificial intelligence to it.

Speaker Change: Artificial intelligence by the way too.

Speaker Change: Steve.

Speaker Change: In advertising, so we stopped doing really good things in terms of.

Speaker Change: Content production, we obviously leverage it in.

Speaker Change: In our scenario in R&D.

Speaker Change: You start combining things arguably differently. So as they are to the G&A is not all of it which is why we have the model that we have.

Speaker Change: Which is our delivering consistently quad.

Speaker Change: Quality topline reinvesting into the long term of our business.

Speaker Change: Increasing our profitability and we stick to that.

Speaker Change: We stick to that model, maybe on price Julien good morning.

Speaker Change: Starting with our Cogs inflation Youre, absolutely right that 'twenty 'twenty four we were benefiting from especially the first half in fact from some lower commodity prices, which have bounced back in a number of areas, which makes that we foresee forget 2025, what I would call an almost back to normal level of inflation remain.

Speaker Change: Earnings in the <unk> corridor.

Speaker Change: From what we know today and that's important this inflation will be driven mainly by mid may.

Speaker Change: <unk> ingredient and few components of packaging.

Speaker Change: I mean, we are living in a volatile world.

Speaker Change: And so there could be some ups and downs ups and downs, which could come from energy ups and downs, which could come from potential custom duty.

Speaker Change: And as the news every day in the newspaper so the way we're going to manage it is three fold.

Speaker Change: First driving again productivity to deluxe and one was talking about digital investments a lot of this growth in equity into supply chain and you have seen is driving record productivity into in year 'twenty three 'twenty four and the same ambition is.

Speaker Change: For year 2025, we want to maximize the operational leverage by growing again, our volumes in year 2025 is a big lever for us, especially in EEP.

Speaker Change: And lastly, increasing our prices and here again in a targeted manner not broad based but it will be again consumer led.

Speaker Change: We will go, especially for those products, which have a more differentiated.

Speaker Change: Setting in the in the shelf.

Speaker Change: For those products, which have more functional and emotional benefits.

Speaker Change: Our belief is that we have the right recipe to drive quality topline and quality bottlenecks.

Speaker Change: <unk> volume by region by region, because the profile of inflation is very different region by region.

Speaker Change: We value based on consumer focus.

Speaker Change: India and what makes the most sense for the consumer and gives us the best balance between.

Speaker Change: The leverage of our assets the competitiveness.

Speaker Change: Our product so we run we run a full mix of fashion and maybe just a quick one because you asked about specialized nutrition in pricing, which is very much driven by what you saw in China, which is.

Speaker Change: It is a very temporary impact as said we have been launching very successfully the incentive for range in China.

Speaker Change: Made sure that we got very fast to the necessary level of distribution and particularly in the back end of the year to carve outs also all of the GDS.

Speaker Change: <unk>, so the OLED the ACP products.

Speaker Change: You will see that normalizing very fast in year 2025, but it was indeed very good investment, which is being baked quite immediate.

Speaker Change: Thank you very much.

Speaker Change: Thank you the next question.

Speaker Change: Question is from Jon Cox.

Speaker Change: Hey, Pat.

Speaker Change: Thanks, very much Fitzgerald.

Speaker Change: Just a couple of questions from me on the free cash flow, you're saying, you're maybe not quite.

Speaker Change: Structurally a 3 billion Euro company, we don't have all the financials, but I can see the working capital improvement.

Speaker Change: Already for 2025.

Speaker Change: Question, just on momentum in terms of the <unk>.

Speaker Change: Q4 organic sales growth overall.

Speaker Change: Was it was very decent.

Speaker Change: <unk> seen that sort of continued momentum into the first quarter.

Speaker Change: And sort of as an add to that we've obviously seen this extraordinary growth going on in yogurt protein products in North America.

Speaker Change: Maybe maybe not helped by what's happening with the GOP once et cetera are you.

Speaker Change: Seeing any signs of this coming into Europe, yet obviously, you are improving your business there.

Speaker Change: Do you think you will see a similar thing you talk about the whole holds the food industries on a at a tipping point do you see that sort of acceleration coming through what do you think maybe Europe is maybe overly saturated when it comes to yoga anyway.

Speaker Change: And maybe you won't see that sort of trend emerge into into Europe. Thanks very much.

Speaker Change: So let me Hi, Joe.

John: John Good morning, let me take the second question.

John: We'll take the first one first as you know, we don't give out quarterly guidance. So.

John: I won't get into any form of quarterly.

John: Guidance on the on the trend.

Speaker Change: I mean, obviously the trend of <unk> Israel significance inaugural talk it's between six and 15% of people that are on <unk>.

Speaker Change: Some form of good disorder. So.

Speaker Change: Yogurt with protein become the absolutes.

Speaker Change: <unk> two.

Speaker Change: Watches.

Speaker Change: Deep trend in the U S.

Speaker Change: We see by the way no slowing down of the GOP one trend are in the.

Speaker Change: In the U S.

Speaker Change: Interestingly, we see are in the U S.

Speaker Change: Push for more natural and healthier food with the new administration, which happens to be very much in sync with what we are.

Speaker Change: So.

Speaker Change: We look at the <unk>.

Speaker Change: Markets with some appetite.

Speaker Change: When it comes to Europe, I think it's not a question of saturation, but Europe has always been slower.

Speaker Change: In adult.

Speaker Change: Adopting our new trends or new fashion.

Speaker Change: I problem of obesity.

Speaker Change: It is the same in Europe, I think to a slightly different degree EBIT the turns of our businesses.

Speaker Change: Very important.

Speaker Change: Europe.

Speaker Change: Lisa I think of adult hold me on that towards the adoption is <unk> obviously.

Speaker Change: The legalities of registering and the legal entities all the reimbursing on Los Angeles and in Europe.

Speaker Change: Much more complicated than longer than in the U S with <unk>.

Speaker Change: I see this time coming at some point in Europe.

Speaker Change: Yes.

Speaker Change: Yes, we do.

Speaker Change: Which is why we keep doing what we are doing which is the anchoring our active you are.

Speaker Change: Into our <unk>.

Speaker Change: <unk> got health are driving our tissue holding out what we do.

Speaker Change: What we do with.

Speaker Change: These proteins, so step by step by step.

Speaker Change: We are not only strengthening our R&D portfolio and Europe, virtually all getting it to our future production. The timing is going to be the same at some point.

Speaker Change: Good morning, Good morning, John on the cash flow, obviously very happy with the delivery of year 2024, with the 3 billion Youll, which you could see which has driven actually by two components an increase in our.

Speaker Change: Underlying absolute earnings and Thats important and Thats, something which is going to continue as much as a further step up of working capital, which contributed greatly to the 3 billion in 2020, if I could just now reaching minus eight 5% on net debt. While it is very important at the same moment, we have been increase.

Speaker Change: Our capex investment as we have been discussing in June last year.

Speaker Change: Why are we not yet declaring victory that we already have fluctuated 3 billion your company because.

Speaker Change: Because we want to make sure that we increase our absolute earnings step by step.

Speaker Change: The value component as <unk> was saying before we're making step by step so the annual contribution of working capital structured at minus eight 5% via del.

Speaker Change: Lots of repeating every year 500 million of contribution as we have seen it in year 2024 is obviously not an easy one so very important step towards our objective beyond the right path. The focus is there and the business model is focused exactly on that caveat.

Speaker Change: Hope that's how people start geologic they're structurally.

Speaker Change: We are delivering free cash flow, which is above the $2 bill.

Speaker Change: 1 billion Mark as we said at the CME.

Speaker Change: Thanks, and well done.

Speaker Change: Thanks.

Speaker Change: Ken So the next question is from Shirley from.

Speaker Change: Hi, Ben.

Speaker Change: Yeah. Thanks, good morning, Antoine could materially.

Speaker Change: I was wondering if you could give an update on the North America Edp business across high protein, but then also base.

Speaker Change: And you're right.

Speaker Change: Your regular yogurt sorry.

Speaker Change: Have you updated your marketing in U S yogurt through the new EBITDA crude planes around type two diabetes yet thank you.

Speaker Change: Yes, so good morning, Charlie.

Speaker Change: Let me start with the end of your question.

Speaker Change: If you go on the if you look at our digital campaigns.

Speaker Change: Actually we have out there digital campaign to help people that are safe.

Speaker Change: Facing.

Speaker Change: At diabetes.

Speaker Change: Issues to give them advice and we see by the way.

Speaker Change: Jake on yogurt, which is more important.

Speaker Change: In this population so there is I mean.

Speaker Change: We should I should I coalition and received.

Speaker Change: The impact of it.

Speaker Change: If we look at our.

Speaker Change: The total of all your workforce altogether, it's our it's running very very well we are still thinks and we're very open about edr skew things.

Speaker Change: Improved.

Speaker Change: Making good progress on our two good we still have.

Speaker Change: <unk> to be made on our key dredge for instance.

Speaker Change: Everything we do around our key mirrors and.

Speaker Change: Everything we do around coffee is doing very very well.

Speaker Change: We still have.

Speaker Change: Progress to make on our silk, although by the way, we are making progress step by step by step.

Speaker Change: It's a long term.

Speaker Change: So long term fix so altogether going into our dollar churn.

Speaker Change: Due to a number of things to be fixed which is why we don't.

Speaker Change: Any kind of victory by the way you won't hear me detail Victoria because in the last time, you always have a business that is challenged so we're.

Speaker Change: When something will be fixed some thing else will have to be.

Speaker Change: But altogether I mean, you see.

Speaker Change: You see the development of the you see the development of the.

Speaker Change: <unk> joined <unk>.

Speaker Change: The U S.

Speaker Change: Stabilization in <unk>.

Speaker Change: Plant based but not yet.

Speaker Change: Well, we watch it.

Speaker Change: We wanted to do.

Speaker Change: The category is doing pretty well.

Speaker Change: Thank you and then my second one was just on China, IMS and <unk>.

Speaker Change: Can you just talk about the rollout of sensors, where we are in that Craig.

Speaker Change: It goes into 2025, and then also your view on the stabilization.

Speaker Change: It's in China, whether you think this could be a longer term trend or if it's just driven by the year of the dragon. Thank you.

Speaker Change: So.

Our stabilization of growth rates. The honest answer is I don't know.

Speaker Change: We will know it will take a bit more tons of your senior or it was really encouraging to see the stabilization.

Speaker Change: Obviously, there must be something that is linked to the <unk>, but there is also <unk>.

Speaker Change: Very intentional push from the Chinese government to stabilize gross rate what is the proportion of growth I don't know at this stage, but thats. One you are talking in very very.

Speaker Change: Close.

Speaker Change: To be honest I mean, we're super happy with the yards standardization as you know when there are a number of babies in one year it carries over.

Speaker Change: From a public standpoint.

Speaker Change: For the first two year of the life of the baby. So I'll take the first John I'm looking for the segment.

Speaker Change: Our senses.

Speaker Change: I mean as you know we launched in the back half of last year. The first results are really encouraging I was in the obviously in the sourcing in China.

Speaker Change: The product is catching.

Speaker Change: Through the shelf.

We are impactful packaging the churn to distribute <unk> job.

Speaker Change: We are launching in it so we are getting quite a bit of quite a bit of traction or beyond new sensors and new seats reflected in the overall result.

Speaker Change: <unk> and <unk>.

Speaker Change: In China, So we are quite.

Speaker Change: We've got quite helps.

Speaker Change: Grateful to China for consistently doing a very good job.

Angela: Thanks Angela.

Thank you Sandy so the next question is from Warren Ackerman from Barclays.

Speaker Change: Good morning, Antoine Yoga and the material is that we're in.

Speaker Change: By Barclays a couple from me as well as the first one is on the free cash flow obviously, great results, but <unk> question now is where does that cash get spent.

Speaker Change: I heard you talk about that at the bottom of the range.

Speaker Change: You're talking about acquisitions.

Speaker Change: Are you able to.

Speaker Change: <unk> talk a little bit about your M&A priorities by category or by region.

Speaker Change: Your hurdle rates and how ROIC plays into that I know that you've been in India, you're talking about India is a big priority, but you also want to build out specialized nutrition.

Speaker Change: What kind of size are you thinking here, we're talking bolt ons or something big just the whole topic around where does where does that cash get used and how youre thinking about it.

Speaker Change: And then secondly.

Speaker Change: Can we maybe dive a bit into European Edp trends I think.

Speaker Change: So it correctly European ADP organic growth in the fourth quarter in isolation I think it was flat.

Speaker Change: And then within that Im sure Youll seeing a slightly positive volumes and negative pricing can you talk a bit about what's actually happening on the ground in terms of your everyday portfolio versus the high protein rollouts.

Speaker Change: Your kind of outlook is because on the scanner data, we can see still showing some weakness and I just wanted to ask looking forward.

Our plans are on some of the big kind of bran.

Speaker Change: Brands, like Activia, which still seem to be ceding market share. Thank you.

Juan: Hey, Juan will do probably.

Speaker Change: With that let me start with your question on the acquisition, obviously, you are not going to.

Speaker Change: Thank you.

Speaker Change: How much and at which price as you would expect.

Speaker Change: But I mean, clearly we want to move to the phone switch on.

Speaker Change: All acquisition.

Speaker Change: With.

Speaker Change: It should tell which is I mean does it improve our market shares always <unk> does it improve our market shares.

Speaker Change: Does it improve our market position in places, where we are not.

Speaker Change: Does it bring us or businesses or capabilities in places, where we all look I mean lagging those capabilities.

And we want to do that in a way that units are financially responsible to making sure that.

Speaker Change: Impact on alloys.

Speaker Change: Our very limited in time.

Speaker Change: And.

Speaker Change: Where that acquisition is structurally improving.

Speaker Change: The quality of our business so that's the future.

Speaker Change: Permanent.

Speaker Change: Luke.

Speaker Change: <unk>.

Speaker Change: We will indeed.

Speaker Change: Look at everything in the field of specialized nutrition. There is no secret we have been buying some homecare businesses.

Speaker Change: Last year.

Couple of geographies, so all I'll tell nutrition.

Speaker Change: You've seen us make a move on our tissue.

Speaker Change: In the U S. I mean, the two points that are common are between that is products, where our science can make a difference.

Speaker Change: That's at the heart of our mission of.

Speaker Change: Delivering.

Speaker Change: Sue.

Speaker Change: Our food so that is the I mean.

Speaker Change: That is the future.

Speaker Change: We are pretty active but you will understand that I'm not going to share more details on where and at which price over kind of element yoga, yes, just and just to reiterate one thing, which Antoine said, we have been celebrating this morning, the fact that the.

Speaker Change: Has been posting a 10% NYSE since year 2016.

Speaker Change: And when you talk about hurdle rates, but it's very important that we are actually in in double digit territory, which I think is a very important in our framework to fall by M&A.

Speaker Change: Thanks all.

Speaker Change: On Edp.

Speaker Change: Well first we are happy to see that volume mix is.

Speaker Change: In the positive territory and not for one quarter coming out of 10 years of.

Speaker Change: <unk> saw the work is starting to.

Speaker Change: It is very clear also that there are some things too.

Speaker Change: Plenty of things to be done.

Speaker Change: Interestingly our in.

Speaker Change: You don't have one Europe.

Value value difference.

Speaker Change: You are very very different situations or country by country saw you take actions that we start seeing also.

Speaker Change: An improvement.

Speaker Change: The volume mix are apart, but actually the things are very spread depending on the countries, which in some countries, where it's getting markedly better which has some other countries was more work to do so or we keep growing and we are.

Speaker Change: We are improving.

Speaker Change: <unk> is I mean, the relaunch that we've made and the work that we are making us.

Speaker Change: Universally positive and it's doing very very well.

Speaker Change: We are all working on the.

Speaker Change: Volumes of our core.

Speaker Change: We are getting traction on volume and we've made.

Speaker Change: Louis.

Speaker Change: Our group for volume because it gives us leverage in our factories, which drives the penetration into.

Speaker Change: Into the category and then count T bar, continuing they are things that we need to retrofits.

Speaker Change: Preferred brand in the French portfolio.

Speaker Change: North where I want it to be.

Speaker Change: So.

Speaker Change: In some ways its accounts payable accounts.

Speaker Change: But altogether the direction is the right. One we worked actively level of the portfolio are much more disciplined are trolling alto winning sales, but we also very practical when something's working say in France and not in Spain.

Speaker Change: Well, we work in our spend while we keep diving in.

Speaker Change: So thats.

That should be the way we look at.

Speaker Change: Quite a bit of progress versus where we have been until the last 10 years, but nowhere near the end of the journey.

Speaker Change: Many thanks.

Speaker Change: Thank you Evan and so far the last question and we'll have Victoria Petrova.

Speaker Change: Right.

Speaker Change: Thank you very much.

Speaker Change: One.

Speaker Change: Total clarification question and one general when I look at your performance in developed versus emerging markets, particularly on the margins versus expectations.

Speaker Change: Being somewhat weaker dynamics around emerging markets is it just a function of.

Speaker Change: Cost of goods sold and coverage around raw material inflation or are there any other aspects related to pricing or you are maybe bottom operating initiatives and.

Speaker Change: And growing our market share for that.

Speaker Change: <unk> U S coffee creamers. Thank you.

Speaker Change: Thanks, Victoria.

Speaker Change: They are doing with.

Speaker Change: The address on computation to be honest I mean, there hasnt been conventional around private label have been very aggressive.

Speaker Change: But he is doing a very good job.

Speaker Change: Another competitor has announced that they recommend so I mean.

Speaker Change: Competition is good.

Speaker Change: It will grow their category, which metros enormously.

Speaker Change: First of all our tools, which matters enormously as well so I mean.

Speaker Change: I mean I love competition.

Speaker Change: Do we see something that she is a horrible right now no we didn't get to feel it's always get tougher and in some ways. It's good.

Speaker Change: Because it will avoid that we'd become complacent.

Speaker Change: Completions.

Speaker Change: On the emerging markets, we have to address.

Speaker Change: You're going to take me, maybe say one world in oil.

Speaker Change: In production.

Speaker Change: So, it's all which we will explain on alternatives and all the rest of it.

Speaker Change: We have been very very systematic at our cleaning our portfolio.

Our business model cleaning the way we go at.

Speaker Change: Markets in the emerging market and we've done that in a number of different ways.

Speaker Change: Our existed.

Speaker Change: Number of categories, So you take which would be in Brazil.

<unk> powered.

Speaker Change: <unk>, which we licensed out.

Speaker Change: We are sure that some of our business model and what we see melco to Banco exiting because we are gaining momentum we are becoming.

Speaker Change: We are becoming.

Speaker Change: Much better.

Speaker Change: We have allocated the Ikea priorities to some of those countries wishes to say guys couldn't care less about volume couldn't care less about.

Speaker Change: About your market share frankly unique to fixture business model.

Speaker Change: Showing progress and in the Gulf countries to work to grow and some others.

Speaker Change: Actually there is not a lot to add to what I, just said that happened.

Speaker Change: Of the remaining Underperformers in this still sit in this pocket of the emerging markets, which we indeed see as an opportunity moving forward.

Speaker Change: And on the coverage.

Speaker Change: Im not talking about hedging strategies coverage of your cost dynamics are there any differences, we should be bearing in mind the cost inflationary in.

Speaker Change: In line with emerging markets and developed ones.

Speaker Change: Structurally no.

Speaker Change: Difference between emerging markets and even though the market is the question of business model and one was looking further into that and to make sure that we are delivering.

Speaker Change: At the right level of differentiation for each and every of those markets.

Speaker Change: So again, we see it as an opportunity than anything else.

Speaker Change: Thank you very much.

Speaker Change: Thank you Vic and with that we close the Q&A for today.

Speaker Change: Thank you everyone.

Speaker Change: Sure, we'll see a number of you in the coming days.

Speaker Change: Days and weeks, who are looking forward to continue.

Speaker Change: Conversation and good day to everyone.

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