Q3 2025 General Mills Inc Earnings Call - Pre-recorded

Earnings.

Later this morning, we will hold a separate live question and answer session on today's results, which you can hear via webcast on our Investor Relations website joint.

Operator: Progresso's Protein and Fiber Benefits.

Jeffrey Harmening: We have a strong support plan in Q4 behind Progresso Protein and our new Old El Paso soup line.

We have a strong support plan in Q4 behind Progresso protein and our new old El Paso soup line.

Speaker Change: Joining me for this morning's presentation are Jeff Harmening, our chairman and CEO and Kofi Bruce our CFO.

Jeffrey Harmening: and we're launching a new line of Progresso soups in partnership with Pitmaster ahead of summer grilling season in the U.S. This Progresso Pitmaster line delivers on the increased protein benefits our core consumers are increasingly seeking in their daily routine.

And we're launching a new line of Progresso soups and partnership with Pitmaster ahead of summer grilling season in the U S. This progresso pitmaster lie and delivers on the increased protein benefits our core consumers are increasingly seeking in their daily routines.

Speaker Change: Before I hand things over to them, let me first touch on a few housekeeping items.

Speaker Change: First on our website you will find our press release that posted this morning, along with a copy of the presentation and a transcript of these remarks. Please.

Jeffrey Harmening: While we've made progress in important parts of our NARA portfolio, we've seen challenges in others, including recent softness in U.S. snacks, including snack bars, fruit snacks, and salty snacks. Here too, our response starts with remarkability. We are investing to bring consumers added value through price-back architecture changes and by addressing key price gaps.

While we've made progress in important parts of our portfolio, we've seen challenges in others, including recent softness in U S snacks, including snack bars fruit snacks and salty snacks here too. Our response starts with <unk> ability, we are investing to bring consumers added value through price pack architecture changes and by addressing key price.

Speaker Change: Please note that today's remarks include forward looking statements that are based on management's current views and assumptions.

Speaker Change: The second slide in today's presentation lists several factors that could cause our future results to be different than our current estimates.

Jeff Harmening: We are investing to bring consumers added value through price pack architecture changes and by addressing key price gaps. We're launching strong new products in core renovation and in fruit snacks. We're introducing exciting new licensing partnerships including a partnership with Warner Bros. to launch Harry Potter Fruit Snacks this summer. On snack bars, we're innovating to bring more consumer relevant benefits like indulgence and protein. In fact, General Mills brands account for eight of the top 10 new products in the snack bar category in fiscal 2025. Moving forward, our focus for North America retail is to deliver more of the elements of remarkability that resonate for consumers.

We are investing to bring consumers added value through price pack architecture changes and by addressing key price gaps. We're launching strong new products in core renovation and in fruit snacks. We're introducing exciting new licensing partnerships including a partnership with Warner Bros. to launch Harry Potter Fruit Snacks this summer. On snack bars, we're innovating to bring more consumer relevant benefits like indulgence and protein. In fact, General Mills brands account for eight of the top 10 new products in the snack bar category in fiscal 2025. Moving forward, our focus for North America retail is to deliver more of the elements of remarkability that resonate for consumers.

Jeff Harmening: And with that I'll turn it over to Jeff.

Speaker Change: Thank you, Jeff and good morning, everyone.

This gaps, we're launching strong new products and core renovation and in fruit snacks, we are introducing exciting new licensing partnerships, including a partnership with Warner brothers to launch Harry Potter fruit snacks. This summer.

Jeffrey Harmening: We're launching strong new products in core renovation and in Fruit Snacks, we're introducing exciting new licensing partnerships, including a partnership with Warner Brothers to launch Harry Potter Fruit Snacks this summer. On snack bars, we're innovating to bring more consumer-relevant benefits like indulgence and protein. In fact, General Mills brands account for eight of the top ten new products in the snack bar category in fiscal 25.

Jeff Harmening: Let me start with today's key messages.

Jeff Harmening: Our Q3 results finished below our expectations driven largely by greater than expected retailer inventory headwinds and a slowdown in snacking categories.

Jeff Harmening: Two developments, we initially called out at the Cagny Conference last month.

On snack bars, we're innovating to bring more consumer relevant benefits like indulgence in protein and Fat General Mills brands account for eight of the top 10, new products in the snack bar category in fiscal 'twenty five.

Jeff Harmening: We've continued to improve our market share trends across our pet foodservice and international businesses with each segment posting positive pound share results in the third quarter.

Jeffrey Harmening: Moving forward, our focus for North America retail is to deliver more of the elements of remarkability that resonate for consumers. Stepping up product news with a focus on bold flavors and functional benefits. Enhancing our brand communication with data-driven marketing. Leading in omni-channel execution with improved distribution, display, and e-commerce visibility. And bringing consumers more value by addressing price gaps and stepping up our price-back architecture work.

Moving forward our focus for North America retail is to deliver more of the elements of our marketability of that resonate for consumers.

Jeff Harmening: We delivered improved performance in U S refrigerated dough and Haas next two businesses, where we made incremental investments last quarter, though our share and other snacks categories was more challenged.

Jeff Harmening: Stepping up product news with a focus on bold flavors and functional benefits, enhancing our brand communication with data-driven marketing, leading in omnichannel execution with improved distribution, display, and e-commerce visibility, and bringing consumers more value by addressing price gaps and stepping up our price pack architecture work, successfully executing these plans on our core brands will be the key to returning North America Retail to growth across North America Retail. Pet, we drove another quarter of pound share growth on Blue Buffalo in Q3 with performance led by our Life Protection Formula dry dog food business. Our results on LPF have been driven by strong media investment and activations across key retail partners. We also recently launched our biggest new product of the year, Life Protection Formula Salmon. Salmon is an on-trend protein variety geared toward pet parents who are increasingly seeking chicken-free options.

Stepping up product news with a focus on bold flavors and functional benefits, enhancing our brand communication with data-driven marketing, leading in omnichannel execution with improved distribution, display, and e-commerce visibility, and bringing consumers more value by addressing price gaps and stepping up our price pack architecture work, successfully executing these plans on our core brands will be the key to returning North America Retail to growth across North America Retail. Pet, we drove another quarter of pound share growth on Blue Buffalo in Q3 with performance led by our Life Protection Formula dry dog food business. Our results on LPF have been driven by strong media investment and activations across key retail partners. We also recently launched our biggest new product of the year, Life Protection Formula Salmon. Salmon is an on-trend protein variety geared toward pet parents who are increasingly seeking chicken-free options.

Stepping up product news with a focus on bold flavors and functional benefits enhancing our brand communication with data driven marketing, leading an omnichannel execution with improved distribution display and ecommerce visibility and bringing consumers more value by addressing price gaps and stepping up our price pack architecture work.

Jeff Harmening: On our Q3 results and moderated expectations for Q4, we've adjusted our fiscal 2025 guidance and we're adapting our plans and stepping up our investment to address these recent headwinds strengthen our competitiveness as we close the year and deliver improved growth for fiscal 'twenty six.

Jeffrey Harmening: Successfully executing these plans on our core brands will be the key to returning North America retail to growth.

Successfully executing these plans on our core brands will be the key to returning North America retail to growth.

Jeff Harmening: To fund that investment, we're targeting industry, leading levels of holistic margin management cost savings and anticipated new initiatives in fiscal 'twenty six designed to further boost efficiency to enable investment for growth.

Jeffrey Harmening: Across North America Pet, we drove another quarter of pound share growth on Blue Buffalo in Q3, with performance led by our life protection formula, Dry Dog Foodbit. Our results on LPF have been driven by strong media investment and activations across key retail partners.

Pat: Across North America, Pat we drove another quarter of pound share growth on Blue Buffalo in Q3 with performance led by our life protection Formula dry dog food business.

Pat: Our results on Lps have been driven by strong media investment and Activations across key retail partners. We also recently launched our biggest new product of the year life protection Formula Salmon Salmon is an on trend protein variety geared towards pet parents, who are increasingly seeking chicken free options.

Jeff Harmening: Our Q3 results are summarized on slide five organic net.

Jeff Harmening: Net sales were down 5%, which was below our expectations for three main reasons.

Jeffrey Harmening: We also recently launched our biggest new product of the year, Life Protection Formula Salmon. Salmon is an on-trend protein variety geared toward pet parents who are increasingly seeking chicken-free options. This addition to our LPF portfolio has already received strong retail enthusiasm and early distribution.

Jeff Harmening: First our Nielsen measured retail sales were down 1% in the quarter.

Jeff Harmening: This addition to our LPF portfolio has already received strong retail enthusiasm and early distribution wins. Our Wilderness line continues to show year-to-date improvement and is now posting retail sales growth across some of our key customers. Successful innovation is a theme here too, with our latest launch of grain-free varieties performing above our initial expectations and highly incremental to our core Wilderness offerings. We're excited about adding the Whitebridge business to our pet portfolio this quarter. The Tiki Cat brand continues to drive great momentum with retail sales for wet cat food up 19% over the past 52 weeks. While we're proud of the improvements we made to our pet business in recent quarters, we know there is more work to be done to get back to the level of growth we aspire to over the long term.

This addition to our LPF portfolio has already received strong retail enthusiasm and early distribution wins. Our Wilderness line continues to show year-to-date improvement and is now posting retail sales growth across some of our key customers. Successful innovation is a theme here too, with our latest launch of grain-free varieties performing above our initial expectations and highly incremental to our core Wilderness offerings. We're excited about adding the Whitebridge business to our pet portfolio this quarter. The Tiki Cat brand continues to drive great momentum with retail sales for wet cat food up 19% over the past 52 weeks. While we're proud of the improvements we made to our pet business in recent quarters, we know there is more work to be done to get back to the level of growth we aspire to over the long term.

Jeff Harmening: The four point gap between organic sales and retail sales growth was driven primarily by unexpected retailer inventory headwinds in <unk> and pet <unk>.

Pat: This addition to our Lps portfolio has already received strong retail enthusiasm and early distribution wins are.

Jeff Harmening: Which we referenced at Cagny and did not see a reversal as we closed the quarter and.

Jeffrey Harmening: Our Wilderness line continues to show year-to-date improvement and is now posting retail sales growth across some of our key customers. Successful innovation is a theme here too, with our latest launch of grain-free varieties performing above our initial expectations. and highly incremental to our core wilderness office.

Pat: Our wilderness line continues to show year to date improvement and is now posting retail sales growth across some of our key customers successful innovation is a theme here too with our latest loss of grain free variety is performing above our initial expectations and highly incremental to our core wilderness offerings.

Jeff Harmening: And by the expected reversal of favorable timing items from Q2.

Jeff Harmening: Second we saw a deceleration in U S snacks retail sales trends in the quarter, driven by softer category growth and increased competitive activity.

Jeff Harmening: And third we saw a slowdown in demand and U S away from home channels in Q3 that pressured organic sales growth in North America foodservice, even as we continue to gain share in those channels.

Jeffrey Harmening: And we're excited about adding the Whitebridge business to our pet portfolio this quarter. The Tiki Cat brand continues to drive great momentum with retail sales for wet cat food up 19% over the past 52 weeks. While we're proud of the improvements we've made to our pet business in recent quarters, we know there's more work to be done to get back to the level of growth we aspire to over the long term.

Pat: And we're excited about adding the white bridge business to our portfolio this quarter.

Pat: The Tiki cap brand continues to drive great momentum with retail sales for wet cat food up 19% over the past 52 weeks.

Jeff Harmening: In response to these headwinds we've moved quickly to adjust our plans leveraging what's working on businesses like Pillsbury, totino's and blue Buffalo and applying it more broadly across our portfolio with a goal of driving improved growth moving forward.

Pat: While we're proud of the improvements we've made to our pet business in recent quarters. We know there's more work to be done to get back to the level of growth, we aspire to over the long term.

Jeff Harmening: We'll look to continue building on our positive momentum in Q4, supported by another strong increase in media investment in North America Foodservice. We've continued to drive strong market share gains in our priority channels in fiscal 2025, including more than 70% of our measured business growing or holding share in Q3. We're maintaining our leadership in K-12 schools where we stayed ahead of the competition through a regulation-ready portfolio of reduced sugar cereals, individually wrapped muffins, and whole grain cereal bars. And we're leveraging our industry-leading capabilities in dough to expand our presence in frozen baked goods, bringing in-store bakeries, restaurants, and non-commercial operators remarkable products while helping them minimize back-of-house labor. In International, our performance in fiscal 2025 has been mixed with strong market share results in most regions offset by headwinds from a tougher consumer environment.

We'll look to continue building on our positive momentum in Q4, supported by another strong increase in media investment in North America Foodservice. We've continued to drive strong market share gains in our priority channels in fiscal 2025, including more than 70% of our measured business growing or holding share in Q3. We're maintaining our leadership in K-12 schools where we stayed ahead of the competition through a regulation-ready portfolio of reduced sugar cereals, individually wrapped muffins, and whole grain cereal bars. And we're leveraging our industry-leading capabilities in dough to expand our presence in frozen baked goods, bringing in-store bakeries, restaurants, and non-commercial operators remarkable products while helping them minimize back-of-house labor. In International, our performance in fiscal 2025 has been mixed with strong market share results in most regions offset by headwinds from a tougher consumer environment.

Jeffrey Harmening: will look to continue building on our positive momentum in Q4, supported by another strong increase in media investment. In North America food service, we've continued to drive strong market share gains in our priority channels in fiscal 25, including more than 70% of our measured business growing or holding share in Q3. We're maintaining our leadership in K-12 schools, where we stayed ahead of the competition through a regulation-ready portfolio of reduced sugar cereals, individually wrapped muffins, and whole grain cereal bars. And we're leveraging our industry-leading capabilities in dough to expand our presence in frozen baked goods, bringing in-store bakeries, restaurants, and non-commercial operators remarkable products while helping them minimize back-of-house labor.

Pat: We will look to continue building on our positive momentum in Q4 supported by another strong increase in media investment.

Jeff Harmening: Slide six outlines our three key priorities for fiscal 2025.

Pat: In North America Foodservice, we've continued to drive strong market share gains in our priority channels in fiscal 'twenty, five including more than 70% of our measured business growing or holding share in Q3.

Jeff Harmening: Our number one priority is to accelerate organic sales growth by delivering remarkable consumer experiences across our leading food brands, resulting in stronger volume and improved market share performance.

Pat: We're maintaining our leadership in K through 12 schools, where we stayed ahead of the competition through our regulation ready portfolio of reduced sugar cereals individually wrapped muffins and whole grain cereal bars, and we're leveraging our industry leading capabilities in DAU to expand our presence in frozen baked goods, bringing in store bakeries restaurants and noncommercial.

Jeff Harmening: Second we are focused on creating fuel for investment by generating strong levels of H M M cost savings to offset inflation and reinvest back into our brands and third we will continue to drive strong cash generation, while maintaining our disciplined approach to capital allocation.

Jeff Harmening: A remarkable experience framework is how we assess our brands across five key areas product packaging brand communication omnichannel execution and value to identify where we are differentiated and where we lacked a distinct competitive advantage using learnings from this framework, we are better able to identify where we lead.

Pat: Operators remarkable products, while helping them minimize back of house labor.

Jeffrey Harmening: In international, our performance in Fiscal 25 has been mixed, with strong market share results in most regions offset by headwinds from a tougher consumer environment in China, our largest market outside North America. Our focus remains on driving remarkability to improve growth on our global platforms and other core markets, while working to stabilize our performance in China. Outside of China, our focus on innovation, brand building, and distribution in our core products contributed to 6% retail sales growth in Q3 for Haagen-Dazs in retail outlets across our top markets. In Brazil, we drove share growth in four of our top five categories, and we delivered another quarter of growth in our distributor markets, capitalizing on distribution opportunities for Haagen-Dazs, Old El Paso, and Nature Valley.

Pat: In international our performance in fiscal 'twenty five has been mixed with strong market share results in most regions offset by headwinds from a tougher consumer environment in China, our largest market outside North America our.

Jeff Harmening: In China, our largest market outside North America, our focus remains on driving remarkability to improve growth on our global platforms in other core markets while working to stabilize our performance in China. Outside of China, our focus on innovation, brand building, and distribution on our core products contributed to 6% retail sales growth in Q3 for Häagen-Dazs in retail outlets across our top markets. In Brazil, we drove share growth in four of our top five categories, and we delivered another quarter of growth in our distributor markets, capitalizing on distribution opportunities for Häagen-Dazs, Old El Paso, and Nature Valley. We're also encouraged by the strong momentum for our Edgard &amp; Cooper European pet food business, which continued to post double-digit net sales growth, including benefits from the recently launched cat treats line.

In China, our largest market outside North America, our focus remains on driving remarkability to improve growth on our global platforms in other core markets while working to stabilize our performance in China. Outside of China, our focus on innovation, brand building, and distribution on our core products contributed to 6% retail sales growth in Q3 for Häagen-Dazs in retail outlets across our top markets. In Brazil, we drove share growth in four of our top five categories, and we delivered another quarter of growth in our distributor markets, capitalizing on distribution opportunities for Häagen-Dazs, Old El Paso, and Nature Valley. We're also encouraged by the strong momentum for our Edgard &amp; Cooper European pet food business, which continued to post double-digit net sales growth, including benefits from the recently launched cat treats line.

Pat: Our focus remains on driving remark ability to improve growth on our global platforms and other core markets, while working to stabilize our performance in China.

Jeff Harmening: <unk> versus where we have worked to improve our total product offering.

Jeff Harmening: We're putting this framework into action.

Jeff Harmening: <unk> me provide a few examples of how it is making a measurable impact on our brands.

Pat: Side of China, our focus on innovation brand building and distribution on our core products contributed a 6% retail sales growth in Q3 for haagen dazs and retail outlets across our top markets and Brazil, we drove share growth in four of our top five categories and we delivered another quarter of growth in our distributor markets capitalizing on.

Jeff Harmening: Last quarter, we highlighted challenges and our pillsbury refrigerated dough business more specifically that are value for consumers was not right, which didn't allow for innovation renovation and brand communication to resonate with consumers. We quickly put into action a series of initiatives to reverse the trends in this business I am pleased to share that these initiatives are saying.

Pat: Opportunities for Hagen, Dazs old El Paso and nature Valley.

Jeff Harmening: Good returns with refrigerated dough retail pound volume up 10% in the month of February driven by value improvements expanded product news investment behind our cookies platform and increased brand building featuring our iconic Pillsbury doughboy.

Jeffrey Harmening: We're also encouraged by the strong momentum for our Edgar and Cooper European pet food business, which continue to post double-digit net sales growth, including benefits from their recently launched Cat Treats line.

Pat: We're also encouraged by the strong momentum for our Edgren Cooper European Pet food business, which continued to post double digit net sales growth, including benefits from the recently launched cat treats line.

Jeff Harmening: Our second priority for fiscal 2025 is to create fuel for reinvestment back into our brands and our business. We're leveraging our best-in-class holistic margin management program to identify and deliver cost savings measures that enable investment in the long-term growth of our brands and the capabilities we'll need to compete today and tomorrow. We remain on track to generate 5% COGS HMM savings this fiscal year, which is ahead of our long-term trend and our third priority, driving strong cash generation. We remain on track to deliver 95% free cash flow conversion in fiscal 2025, with free cash prioritized toward capital investment, dividends, and M&A. In the near term, we remain focused on completing the US yogurt divestiture and ensuring smooth transitions for our Canada yogurt divestiture and North America Whitebridge Pet Brands acquisition.

Our second priority for fiscal 2025 is to create fuel for reinvestment back into our brands and our business. We're leveraging our best-in-class holistic margin management program to identify and deliver cost savings measures that enable investment in the long-term growth of our brands and the capabilities we'll need to compete today and tomorrow. We remain on track to generate 5% COGS HMM savings this fiscal year, which is ahead of our long-term trend and our third priority, driving strong cash generation. We remain on track to deliver 95% free cash flow conversion in fiscal 2025, with free cash prioritized toward capital investment, dividends, and M&A. In the near term, we remain focused on completing the US yogurt divestiture and ensuring smooth transitions for our Canada yogurt divestiture and North America Whitebridge Pet Brands acquisition.

Jeffrey Harmening: Our second priority for fiscal 2025 is to create fuel for reinvestment back into our brands and our business. We're leveraging our best-in-class holistic margin management program to identify and deliver cost savings measures that enable investment in the long-term growth of our brands and the capabilities we'll need to compete today and tomorrow. We remain on track to generate 5% COGS HMM savings this fiscal year, which is ahead of our long-term trend. And our third priority, driving strong cash generation, we remain on track to deliver 95% free cash flow conversion in fiscal 2025 with free cash prioritized toward capital investment and dividends.

Pat: Our second priority for fiscal 2025 is to create fuel for reinvestment back into our brands and our business. We're leveraging our best in class holistic margin management program to identify and deliver cost savings measures that enable investment in our long term growth of our brands and our capabilities will need to compete today and tomorrow.

Jeff Harmening: Similarly, we drove improved trends in our <unk> Hot snacks business in Q3, leveraging a remark ability approach leading into value forward messaging robust merchandising plans and improved in store execution, our hot snacks business drove 3% retail pound volume growth in February which represents a significant step up versus.

Pat: We remain on track to generate 5% Cogs H M. M savings this fiscal year, which is ahead of our long term trend.

Jeff Harmening: Last year's results. These improved trends give us continued confidence that when we leverage our remarkable experienced framework, we can unlock significant improvements in competitiveness across our brands.

Pat: And our third priority driving strong cash generation, we remain on track to deliver 95% free cash flow conversion in fiscal $2025 with free cash prioritized toward capital investments and dividends.

Jeff Harmening: Retail sales for our U S cereal business were down mid single digits in Q3, which we anticipated due to more difficult comparisons from Q3 last year, including the shift in Thanksgiving timing as well as increased competitor service levels Q.

Jeffrey Harmening: On M&A in the near term, we remain focused on completing the U.S. yogurt divestiture and ensuring smooth transitions for our Canada yogurt divestiture and North America White Bridge Pet Brands acquisition. As we look ahead, we'll continue to look for bolt-on acquisitions that improve the growth profile of our business and give us long-term opportunities to do what we do best, grow bold and iconic brands.

Pat: On M&A in the near term, we remain focused on completing the U S yogurt divestiture in ensuring smooth transitions for our Canada yogurt divestiture and North America White Bridge Pet brands acquisition.

Jeff Harmening: Q3 was also our lightest quarter of the year in terms of media support and in store activation.

Jeff Harmening: As we look ahead, we'll continue to look for bolt-on acquisitions that improve the growth profile of our business and give us long-term opportunities to do what we do best: grow bold and iconic brands, and on share repurchases. We now expect a 4% reduction to average diluted shares versus our previous estimate of 3% based on our strong share repurchase activity to date. Stepping back, it's been a challenging year in fiscal 2025 with prolonged value-seeking consumer behaviors and volatility in the operating environment creating significant headwinds. Still, we know that our job is to adapt quickly to the external environment and grow.

As we look ahead, we'll continue to look for bolt-on acquisitions that improve the growth profile of our business and give us long-term opportunities to do what we do best: grow bold and iconic brands, and on share repurchases. We now expect a 4% reduction to average diluted shares versus our previous estimate of 3% based on our strong share repurchase activity to date. Stepping back, it's been a challenging year in fiscal 2025 with prolonged value-seeking consumer behaviors and volatility in the operating environment creating significant headwinds. Still, we know that our job is to adapt quickly to the external environment and grow.

Jeff Harmening: As we shift to Q4, we expect to drive improved momentum on cereal as we exit the quarter supported by the strength of our plans leveraging relevant product news brand partnerships and media support.

Pat: As we look ahead, we will continue to look for bolt on acquisitions that improve the growth profile of our business and give us long term opportunities to do what we do best real bold and iconic brands.

Jeffrey Harmening: And on share repurchases, we now expect a 4% reduction to average diluted shares versus our previous estimate of 3% based on our strong share repurchase activity to date. Stepping back, it's been a challenging year in Fiscal 25, with prolonged value-seeking consumer behaviors and volatility in the operating environment creating significant headwinds. And still, we know that our job is to adapt quickly to the external environment and grow. As we look ahead to Fiscal 26, we are fully committed to improving our organic sales growth following the playbook that has successfully returned Blue Buffalo to share growth, strengthened our share leadership in food service channels, and more recently, improved our performance on Pillsbury and Totino.

Jeff Harmening: In terms of product news cheerios protein is off to a great start since launching in January with both flavors turning in the top third of the category at key retailers and bringing new consumers into the cheerios franchise.

Pat: And on share repurchases, we now expect a 4% reduction to average diluted shares versus our previous estimate of 3% based on our strong share repurchase activity to date.

Jeff Harmening: We're continuing to build distribution on this line and we will add a third variety cookies and cream in the fourth quarter we.

Pat: Stepping back it's been a challenging year in fiscal 'twenty, five with prolonged value seeking consumer behaviors and volatility in the operating environment, creating significant headwinds and still we know that our job is to adapt quickly to the external environment and grow as we look ahead to fiscal 'twenty six we are fully committed to.

Jeff Harmening: We have an exciting partnership with Marvel and Q4 that features the fantastic four across our core cereal brands and we'll activate this news through in store displays and promotions in partnership with our retailers and will support this news with a double digit increase in media investment.

Jeff Harmening: As we look ahead to fiscal 2026, we are fully committed to improving our organic sales growth following the playbook that has successfully returned Blue Buffalo to share growth, strengthen our share leadership in food service channels, and more recently improved our performance on Pillsbury and Totino's. We're planning to increase our investment centered on key elements of remarkability. This includes stepping up our innovation with more Big Bet launches focused on taste value and relevant functional benefits, increasing our investment behind compelling digitally enabled brand communication, elevating our execution in store and online, and improving value for consumers by offering a broader array of pack sizes, reducing price gaps, and more. We'll fund that investment with increased cost savings.

As we look ahead to fiscal 2026, we are fully committed to improving our organic sales growth following the playbook that has successfully returned Blue Buffalo to share growth, strengthen our share leadership in food service channels, and more recently improved our performance on Pillsbury and Totino's. We're planning to increase our investment centered on key elements of remarkability. This includes stepping up our innovation with more Big Bet launches focused on taste value and relevant functional benefits, increasing our investment behind compelling digitally enabled brand communication, elevating our execution in store and online, and improving value for consumers by offering a broader array of pack sizes, reducing price gaps, and more. We'll fund that investment with increased cost savings.

Pat: Improving our organic sales growth following the playbook that has successfully return blue Buffalo to share growth strengthen our share leadership in foodservice channels and more recently improved our performance on Pillsbury and <unk>.

Jeff Harmening: On soup, our retail pound volume was up in fiscal 'twenty, five and we expect to strengthen our momentum in Q4, leveraging our data driven marketing tools. We've introduced highly successful media campaigns to drive growth with targeted audiences, including both <unk>, one and 55, plus consumers who are seeking progresso protein and fiber benefits.

Jeffrey Harmening: We're planning to increase our investment centered on key elements of Remarkability. This includes stepping up our innovation with more big-bet launches focused on taste, value, and relevant functional benefits, increasing our investment behind compelling digitally-enabled brand communication, elevating our execution in-store and online, and improving value for consumers by offering a broader array of pack sizes, reducing price gaps, and more. We'll fund that investment with increased cost savings. We have good visibility to delivering another year of at least 5% HMM cost savings in fiscal 26, which translates to more than $600 million in gross productivity savings, driven by further advancement of digital supply chain initiatives leveraging connected data, autonomous planning, and AI-enabled execution.

Pat: We're planning to increase our investment centered on key elements of our Mark ability. This includes stepping up our innovation, but more big bet launches focused on taste value and relevant functional benefits, increasing our investment behind compelling digitally enabled brand communication elevating our execution in store and online and improving value for <unk>.

Jeff Harmening: We have a strong support plan in Q4 behind Progresso protein and our new old El Paso soup line.

Jeff Harmening: And we're launching a new line of Progresso soups and partnership with Pitmaster ahead of summer grilling season in the U S. This progresso pitmaster lie and delivers on the increased protein benefits our core consumers are increasingly seeking in their daily routines.

Pat: Tumors by offering a broader array of pack sizes, reducing price gaps and more.

Jeff Harmening: We have good visibility to delivering another year of at least 5% HMM cost savings in fiscal 2026, which translates to more than $600 million in gross productivity savings driven by further advancement of digital supply chain initiatives, leveraging connected data, autonomous planning, and AI-enabled execution. In addition, we're reviewing new cost efficiency initiatives that are anticipated to generate at least $100 million in additional savings in fiscal 2026, with further savings expected in fiscal 2027 and beyond. With that, let me turn it over to Kofi to go into more details on our third quarter results and the assumptions behind our updated outlook for the year.

We have good visibility to delivering another year of at least 5% HMM cost savings in fiscal 2026, which translates to more than $600 million in gross productivity savings driven by further advancement of digital supply chain initiatives, leveraging connected data, autonomous planning, and AI-enabled execution. In addition, we're reviewing new cost efficiency initiatives that are anticipated to generate at least $100 million in additional savings in fiscal 2026, with further savings expected in fiscal 2027 and beyond. With that, let me turn it over to Kofi to go into more details on our third quarter results and the assumptions behind our updated outlook for the year.

Pat: We will fund that investment with increased cost savings, we have good visibility to delivering another year of at least 5% H M M cost savings in fiscal 'twenty six.

Jeff Harmening: While we've made progress in important parts of our portfolio, we've seen challenges in others, including recent softness in U S snacks, including snack bars fruit snacks and salty snacks here too our response starts with <unk> ability.

Pat: Which translates to more than $600 million in gross productivity savings driven by further advancement of digital supply chain initiatives leveraging connected data autonomous planning and AI enabled execution.

Jeff Harmening: We are investing to bring consumers added value through price pack architecture changes and by addressing key price gaps, we're launching strong new products and core renovation and in fruit snacks, we are introducing exciting new licensing partnerships, including a partnership with Warner brothers to launch Harry Potter fruit snacks. This summer.

Jeffrey Harmening: In addition, we're reviewing new cost efficiency initiatives that are anticipated to generate at least $100 million in additional savings in Fiscal 26, with further savings expected in Fiscal 27 and beyond.

Pat: In addition, we're reviewing new cost efficiency initiatives that are anticipated to generate at least $100 million in additional savings in fiscal 'twenty six with further savings expected in fiscal 2007 and beyond.

Kofi Bruce: With that, let me turn it over to Kofi to go into more details on our third quarter results and the assumptions behind our updated outlook for the year. Thanks, Jeff, and hello, everyone. Our third quarter financial results are summarized on slide 12. Reported net sales of $4.8 billion were down 5% and organic net sales were also down 5% reflecting lower pound volume and lower price As Jeff noted, these results trailed our Nielsen-measured retail sales performance by roughly four points in the quarter, due largely to unexpected retailer inventory headwinds and the reversal of certain Q2 timing benefits which we had anticipated.

Coffee: With that let me turn it over to coffee to go into more details on our third quarter results and the assumptions behind our updated outlook for the year.

Kofi Bruce: Thanks Jeff and hello everyone. Our third quarter financial results are summarized on slide 20. Reported net sales of $4.8 billion were down 5%, and organic net sales were also down 5%, reflecting lower pound volume and lower price mix. As Jeff noted, these results trailed our Nielsen measured retail sales performance by roughly four points in the quarter due largely to unexpected retailer inventory headwinds and the reversal of certain Q2 timing benefits which we had anticipated. Adjusted operating profit of $801 million was down 13% in constant currency driven by input cost inflation, unfavorable price mix, lower volume, and supply chain deleverage, partially offset by HMM cost savings.

Kofi Bruce: Thanks Jeff and hello everyone. Our third quarter financial results are summarized on slide 20. Reported net sales of $4.8 billion were down 5%, and organic net sales were also down 5%, reflecting lower pound volume and lower price mix. As Jeff noted, these results trailed our Nielsen measured retail sales performance by roughly four points in the quarter due largely to unexpected retailer inventory headwinds and the reversal of certain Q2 timing benefits which we had anticipated. Adjusted operating profit of $801 million was down 13% in constant currency driven by input cost inflation, unfavorable price mix, lower volume, and supply chain deleverage, partially offset by HMM cost savings.

Jeff Harmening: On snack bars, we're innovating to bring more consumer relevant benefits like indulgence in protein and Fat General Mills brands account for eight of the top 10, new products in the snack bar category in fiscal 'twenty five.

Coffee: Thanks, Jeff and Hello, everyone.

Coffee: <unk> third quarter financial results are summarized on slide 20 reported net sales of $4 $8 billion were down 5% and organic net sales were also down 5%, reflecting lower pound volume and lower price mix as Jeff noted. These results trailed our Nielsen measured retail sales performance by roughly four points in the quarter.

Jeff Harmening: Moving forward our focus on North America retail is to deliver more of the elements of our marketability that resonate for consumers.

Jeff Harmening: Stepping up product news with a focus on bold flavors and functional benefits enhancing our brand communication with data driven marketing, leading an omnichannel execution with improved distribution display and ecommerce visibility and bringing consumers more value by addressing price gaps and stepping up our price pack architecture work successfully executing.

Coffee: Due largely to unexpected retailer inventory headwinds and the reversal of certain Q2 timing benefits, which we had anticipated.

Kofi Bruce: Adjusted operating profit of $801 million was down 13% in constant currency, driven by input cost inflation, unfavorable price mix, lower volume, and supply chain deleverage partially offset by HMM cost savings. Adjusted diluted earnings per share totaled $1 in the quarter and were down 15% in constant currency. Driven by lower adjusted operating profit, a higher adjusted effective tax rate, and higher net interest expense, partially offset by a lower share of capital.

Coffee: Adjusted operating profit of $801 million was down 13% in constant currency driven by input cost inflation unfavorable price mix lower volume and supply chain deleverage, partially offset by <unk> cost savings.

Jeff Harmening: <unk> plans on our core brands will be the key to returning North America retail to growth.

Jeff Harmening: Across North America Pet, we drove another quarter of pound share growth on Blue Buffalo in Q3 with performance led by our life protection Formula dry dog food business.

Kofi Bruce: Adjusted diluted earnings per share totaled $1 in the quarter and were down 15% in constant currency driven by lower adjusted operating profit, a higher adjusted effective tax rate, and higher net interest expense partially offset by a lower share count. Slide 21 summarizes the components of total company net sales growth. Organic net sales decreased 5% in the quarter driven by both lower organic pound volume and unfavorable organic price mix. Foreign exchange was a one-point headwind, and the net impact of acquisitions and divestitures was a one-point benefit to net sales in Q3. Our North America retail results are summarized on Slide 22. As a reminder, we closed our Canada yogurt divestiture in late January, and we continue to expect the US yogurt divestiture to close in calendar 2025. Third quarter organic net sales for North America retail were down 6%, which lagged.

Adjusted diluted earnings per share totaled $1 in the quarter and were down 15% in constant currency driven by lower adjusted operating profit, a higher adjusted effective tax rate, and higher net interest expense partially offset by a lower share count. Slide 21 summarizes the components of total company net sales growth. Organic net sales decreased 5% in the quarter driven by both lower organic pound volume and unfavorable organic price mix. Foreign exchange was a one-point headwind, and the net impact of acquisitions and divestitures was a one-point benefit to net sales in Q3. Our North America retail results are summarized on Slide 22. As a reminder, we closed our Canada yogurt divestiture in late January, and we continue to expect the US yogurt divestiture to close in calendar 2025. Third quarter organic net sales for North America retail were down 6%, which lagged.

Coffee: Adjusted diluted earnings per share totaled $1 in the quarter and were down 15% in constant currency driven by lower adjusted operating profit a higher adjusted effective tax rate and higher net interest expense, partially offset by a lower share count.

Jeff Harmening: Our results on Lps have been driven by strong media investment and Activations across key retail partners. We also recently launched our biggest new product of the year life protection Formula Salmon Salmon is an on trend protein variety geared towards pet parents, who are increasingly seeking chicken free options. This addition to our Lps.

Kofi Bruce: Slide 21 summarizes the components of total company net sales growth. Organic net sales decreased 5% in the quarter, driven by both lower organic pound volume and unfavorable organic price mix. Foreign exchange was a one-point headwind, and the net impact of acquisitions and divestitures was a one-point benefit to net sales in Q3.

Coffee: Slide 21 summarizes the components of total company net sales growth organic net sales decreased 5% in the quarter driven by both lower organic pound volume and unfavorable organic price mix Foreign exchange was a one point headwind and the net impact of acquisitions and divestitures was a one point benefit.

Jeff Harmening: <unk> has already received strong retail enthusiasm and early distribution wins.

Jeff Harmening: Our wilderness line continues to show year to date improvement and is now posting retail sales growth across some of our key customers successful.

Coffee: Net sales in Q3.

Jeff Harmening: Successful innovation is a theme here too with our latest loss of grain free variety is performing above our initial expectations and highly incremental to our core wilderness offerings and.

Kofi Bruce: Our North America retail results are summarized on slide 22. As a reminder, we closed our Canada yogurt divestiture in late January, and we continue to expect the U.S. yogurt divestiture to close in calendar 2025. Third-quarter organic net sales for North America retail were down 6%, which lagged our Nielsen-measured U.S. retail sales by approximately 4 points. Consistent with the enterprise results, this gap primarily reflected unexpected retailer inventory headwinds and the reversal of Q2 timing benefits. As Jeff noted, we were encouraged by the improved retail sales trends we drove in Q3 on Pillsbury refrigerated dough and Totino's hot...

Coffee: Our North America retail results are summarized on slide 22.

Coffee: As a reminder, we closed our Kennedy yogurt divestiture in late January and we continue to expect the U S yogurt divestiture to close in calendar 2025.

Jeff Harmening: And we're excited about adding the white bridge business to our portfolio this quarter.

Jeff Harmening: The Tiki Cat brand continues to drive great momentum with retail sales for wet cat food up 19% over the past 52 weeks.

Coffee: Third quarter organic net sales for North America retail were down 6%.

Kofi Bruce: Our Nielsen measured US retail sales by approximately 4 points. Consistent with the enterprise results, this gap primarily reflected unexpected retailer inventory headwinds and the reversal of Q2 timing benefits. As Jeff noted, we were encouraged by the improved retail sales trends we drove in Q3 on Pillsbury Refrigerated Dough and Totino's Hot Snacks, two businesses that we targeted last quarter for incremental investment. However, this improvement was offset by slow retail sales in US cereal, which we anticipated, and in US snacks, where the combination of slower category growth and increased competitive activity drove results below our expectations. On the bottom line, constant currency segment operating profit NAR was down 14% driven by lower volume input cost inflation and unfavorable price mix partially offset by HMM cost savings. Through nine months, NAR organic net sales were down 2% and segment operating profit was down 6% in cost and currency.

Our Nielsen measured US retail sales by approximately 4 points. Consistent with the enterprise results, this gap primarily reflected unexpected retailer inventory headwinds and the reversal of Q2 timing benefits. As Jeff noted, we were encouraged by the improved retail sales trends we drove in Q3 on Pillsbury Refrigerated Dough and Totino's Hot Snacks, two businesses that we targeted last quarter for incremental investment. However, this improvement was offset by slow retail sales in US cereal, which we anticipated, and in US snacks, where the combination of slower category growth and increased competitive activity drove results below our expectations. On the bottom line, constant currency segment operating profit NAR was down 14% driven by lower volume input cost inflation and unfavorable price mix partially offset by HMM cost savings. Through nine months, NAR organic net sales were down 2% and segment operating profit was down 6% in cost and currency.

Coffee: Lagged our Nielsen measured U S retail sales by approximately four points.

Jeff Harmening: While we're proud of the improvements we made to our pet business in recent quarters. We know there's more work to be done to get back to the level of growth, we aspire to over the long term.

Coffee: Consistent with the enterprise results this gap, primarily reflecting unexpected retailer inventory headwinds and the reversal of Q2 timing benefits.

Jeff Harmening: We will look to continue building on our positive momentum in Q4 supported by another strong increase in media investment.

Coffee: As Jeff noted we are encouraged by the improved retail sales trends, we drove in Q3 on Pillsbury refrigerated dough and <unk> Hot snacks, two businesses that we targeted last quarter for incremental investment.

Jeff Harmening: In North America Foodservice, we've continued to drive strong market share gains in our priority channels in fiscal 'twenty, five including more than 70% of our measured business growing or holding share in Q3.

Kofi Bruce: two businesses that we targeted last quarter for incremental investment. However, this improvement was offset by slow retail sales in U.S. cereal, which we anticipate And in US Snacks, where the combination of slower category growth and increased competitive activity drove results below our expectations. on the bottom line. Constant Currency Segment Operating Profit, NAR, was down 14%, driven by lower volume, input cost inflation, and unfavorable price mix, partially offset by HMM cost savings.

Coffee: However, this improvement was offset by slower retail sales in U S cereal, which we anticipated and in U S snacks, where the combination of slower category growth and increased competitive activity drove results below our expectations.

Jeff Harmening: We're maintaining our leadership in K through 12 schools, where we stayed ahead of the competition through our regulation ready portfolio of reduced sugar cereals individually wrapped muffins and whole grain cereal bars, and we're leveraging our industry leading capabilities in DAU to expand our presence in frozen baked goods, bringing in store bakeries restaurants and noncommercial.

Coffee: On the bottom line cost.

Coffee: Constant currency segment operating profit was down 14% driven by lower volume input cost inflation and unfavorable price mix, partially offset by H M M cost savings through.

Jeff Harmening: Operators remarkable products, while helping them minimize back of house labor.

In international our performance in fiscal 'twenty five has been mixed with strong market share results in most regions offset by headwinds from a tougher consumer environment in China, our largest market outside North America our.

Kofi Bruce: Through 9 months, NAR Organic Net Sales were down 2% and Segment Operating Profit was down 6% in cost and currency.

Coffee: Through nine months, our organic net sales were down 2% and segment operating profit was down 6% in constant currency.

Kofi Bruce: North America Pet segment results are highlighted on slide 23. Our Q3 operating performance includes results from the North America Whitebridge Pet Brands acquisitions, which closed in late December and is reported on a one month lag. Third quarter organic net sales for North America Pet were down 5%, leaving our year to date organic net sales in line with last year. We estimate consumer takeaway across all channels was roughly flat in the quarter with the five point gap to organic sales growth primarily driven by unexpected retailer inventory headwinds. We continued to compete effectively amid a slower than expected US pet food category this year with Blue Buffalo pounds share up again in Q3. Including the retailer inventory headwinds, net sales in the quarter were down mid single digits for dry food, up mid single digits for wet food, and up mid single digits for treats.

North America Pet segment results are highlighted on slide 23. Our Q3 operating performance includes results from the North America Whitebridge Pet Brands acquisitions, which closed in late December and is reported on a one month lag. Third quarter organic net sales for North America Pet were down 5%, leaving our year to date organic net sales in line with last year. We estimate consumer takeaway across all channels was roughly flat in the quarter with the five point gap to organic sales growth primarily driven by unexpected retailer inventory headwinds. We continued to compete effectively amid a slower than expected US pet food category this year with Blue Buffalo pounds share up again in Q3. Including the retailer inventory headwinds, net sales in the quarter were down mid single digits for dry food, up mid single digits for wet food, and up mid single digits for treats.

Kofi Bruce: North America pet segment results are highlighted on slide 23.

Coffee: North America Pet segment results are highlighted on slide 23.

Jeff Harmening: Our focus remains on driving remark ability to improve growth on our global platforms and other core markets, while working to stabilize our performance in China.

Kofi Bruce: Our Q3 operating performance includes results from the North America White Bridge Pet Brands Acquisitions, which closed in late December and is reported on a one-month. Third quarter organic net sales for North America Pet were down 5%, leaving our year to date organic net sales in line with last year. We estimate consumer takeaway across all channels was roughly flat in the quarter, with the five point gap to organic sales growth primarily driven by unexpected retailer inventory headwinds. We continued to compete effectively amid a slower-than-expected U.S. pet food category this year, with Blue Buffalo Pound's share up again in Q3.

Coffee: Our Q3 operating performance includes results from the North America White Bridge Pet brands acquisition, which closed in late December and is reported on a one month lag third quarter organic net sales for North America were down 5%, leaving our year to date organic net sales in line with last year, we estimate consumer takeaway across all channels with Russ.

Jeff Harmening: Outside of China, our focus on innovation brand building and distribution on our core products contributed to 6% retail sales growth in Q3 for haagen dazs and retail outlets across our top markets and Brazil, we drove share growth in four of our top five categories and we delivered another quarter of growth in our distributor markets capitalizing on disk.

Coffee: With flat in the quarter with a five point gap to organic sales growth, primarily driven by unexpected retailer inventory headwinds.

Jeff Harmening: Abuse and opportunities for Hagen Dazs old El Paso and nature Valley.

Coffee: We continue to compete effectively amid a slower than expected U S. Pet food category. This year with Blue Buffalo pound share up again in Q3, including the retailer inventory headwinds net sales in the quarter were down mid single digits for dry food up mid single digits for wet food and up mid single digits for trees on the bottom line.

Jeff Harmening: We're also encouraged by the strong momentum for our Edgren Cooper European Pet food business, which continued to post double digit net sales growth, including benefits from the recently launched cat treats line.

Kofi Bruce: Including the retailer inventory headwinds, net sales in the quarter were down mid-single digits for dry food, up mid-single digits for wet food, and up mid-single digits for On the bottom line, third quarter North America pet segment operating profit was down 20% in constant currency, driven by a double-digit increase in media investment as well as higher input costs. Through nine months, Segment Operating Profit was up 6% in costs and current. North America Food Service organic net sales were up 1% in the quarter, driven by positive price mix, partially offset by lower pound volume. Strong net sales growth on cereal and breads was partially offset by a decline in bakery flour, including a one-point headwind from index prices.

Kofi Bruce: On the bottom line, third quarter North America PET segment operating profit was down 20% in constant currency driven by a double digit increase in media investment as well as higher input costs. Through nine months, segment operating profit was up 6% in constant currency. North America Foodservice organic net sales were up 1% in the quarter driven by positive price mix partially offset by lower pound volume. Strong net sales growth on cereal and breads was partially offset by a decline in bakery flour including a one point headwind from index pricing. Though industry growth in away from home channels slowed in Q3, we continued to drive market share gains including strong performance in K12 schools, health care, and colleges and universities.

On the bottom line, third quarter North America PET segment operating profit was down 20% in constant currency driven by a double digit increase in media investment as well as higher input costs. Through nine months, segment operating profit was up 6% in constant currency. North America Foodservice organic net sales were up 1% in the quarter driven by positive price mix partially offset by lower pound volume. Strong net sales growth on cereal and breads was partially offset by a decline in bakery flour including a one point headwind from index pricing. Though industry growth in away from home channels slowed in Q3, we continued to drive market share gains including strong performance in K12 schools, health care, and colleges and universities.

Jeff Harmening: Our second priority for fiscal 2025 is to create fuel for reinvestment back into our brands and our business. We're leveraging our best in class holistic margin management program to identify and deliver cost savings measures that enable investment in our long term growth of our brands and our capabilities will need to compete today and tomorrow.

Coffee: Third quarter, North America Pet segment operating profit was down 20% in constant currency driven by a double digit increase in media investment as well as higher input costs through.

Through nine months segment operating profit was up 6% in constant currency.

Jeff Harmening: We remain on track to generate 5% Cogs H M. M savings this fiscal year, which is ahead of our long term trend.

Coffee: North America Foodservice organic net sales were up 1% in the quarter driven by positive price mix, partially offset by lower pound volume strong net sales growth on cereal and breads was partially offset by a decline in bakery flour, including a one point headwind from index pricing.

Jeff Harmening: And our third priority driving strong cash generation, we remain on track to deliver 95% free cash flow conversion in fiscal $2025 with free cash prioritized toward capital investment and dividends.

Kofi Bruce: Though industry growth and away-from-home channels slowed in Q3, we continued to drive market share gains, including strong performance in K-12 schools, health care, and colleges and universities. On the bottom line, third quarter North America food service segment operating profit was up 1% in constant currency, driven by favorable price mix and HMM cost savings, partially offset by input cost inflation and higher other supply chain costs. Through nine months, North America food service organic net sales were up 3% and constant currency segment operating profit was up 15%.

Coffee: Though industry growth in away from home channels slowed in Q3, we continued to drive market share gains, including strong performance in K through 12 schools healthcare and colleges and universities on the bottom line third quarter North America Foodservice segment operating profit was up 1% in constant currency driven by favorable price mix and H M M.

Jeff Harmening: On M&A in the near term, we remain focused on completing the U S yogurt divestiture in ensuring smooth transitions for our Canada yogurt divestiture and North America White Bridge Pet brands acquisition.

Kofi Bruce: On the bottom line, third quarter North America Foodservice segment operating profit was up 1% in constant currency driven by favorable price mix and HMM cost savings, partially offset by input cost inflation and higher other supply chain costs. Through nine months, North America Foodservice organic net sales were up 3% and constant currency segment operating profit was up 15%. Moving to slide 25, third quarter organic net sales for our international segment were down 3% driven by declines in China and Brazil, partially offset by continued growth in our distributor markets as well as Europe and Australia.

On the bottom line, third quarter North America Foodservice segment operating profit was up 1% in constant currency driven by favorable price mix and HMM cost savings, partially offset by input cost inflation and higher other supply chain costs. Through nine months, North America Foodservice organic net sales were up 3% and constant currency segment operating profit was up 15%. Moving to slide 25, third quarter organic net sales for our international segment were down 3% driven by declines in China and Brazil, partially offset by continued growth in our distributor markets as well as Europe and Australia.

Jeff Harmening: As we look ahead, we'll continue to look for bolt on acquisitions that improve the growth profile of our business and give us long term opportunities to do what we do best ROE bold and iconic brands and.

Coffee: Cost savings, partially offset by input cost inflation and higher other supply chain costs.

Jeff Harmening: And on share repurchases, we now expect a 4% reduction to average diluted shares versus our previous estimate of 3% based on our strong share repurchase activity to date.

Coffee: Through nine months North America Foodservice organic net sales were up 3% in constant currency segment operating profit was up 15%.

Jeff Harmening: Stepping back it's been a challenging year in fiscal 'twenty, five with prolonged value seeking consumer behaviors and volatility in the operating environment, creating significant headwinds and still we know that our job is to adapt quickly to the external environment and grow as we look ahead to fiscal 'twenty six we are fully committed to.

Kofi Bruce: Moving to slide 25, third quarter organic net sales for our international segment were down 3%, driven by declines in China and Brazil, partially offset by continued growth in our distributor markets, as well as Europe and Australia. While lower traffic in China shops remains a headwind for Haagen-Dazs, we drove good retail sales growth in Q3 on Haagen-Dazs in Europe and Australia, and more broadly, we delivered market share growth across our measured categories in Europe and Australia and Brazil in Q3. Third quarter segment operating profit totaled $18 million and was down 20% in cost and currency, driven primarily by unfavorable price mix and input cost inflation, partially offset by HMM cost savings.

Coffee: Moving to slide 25 third quarter organic net sales for our international segment were down 3% driven by declines in China, and Brazil, partially offset by continued growth in our distributor markets as well as Europe and Australia.

Kofi Bruce: While lower traffic in China shops remains a headwind for Häagen-Dazs, we drove good retail sales growth in Q3 on Häagen-Dazs in Europe and Australia, and more broadly, we delivered market share growth across our measured categories in Europe, Australia, and Brazil. In Q3, third quarter segment operating profit totaled $18 million and was down 20% in constant currency, driven primarily by unfavorable price mix and input cost inflation, partially offset by HMM cost savings through nine months. International organic net sales were down 2%, and segment operating profit totaled $63 million versus $103 million a year ago. Slide 26 summarizes our joint venture results in Q3. Cereal Partners Worldwide net sales were down 1% in constant currency, driven mainly by a decline in the UK, partially offset by growth in Asia and Latin America.

While lower traffic in China shops remains a headwind for Häagen-Dazs, we drove good retail sales growth in Q3 on Häagen-Dazs in Europe and Australia, and more broadly, we delivered market share growth across our measured categories in Europe, Australia, and Brazil. In Q3, third quarter segment operating profit totaled $18 million and was down 20% in constant currency, driven primarily by unfavorable price mix and input cost inflation, partially offset by HMM cost savings through nine months. International organic net sales were down 2%, and segment operating profit totaled $63 million versus $103 million a year ago. Slide 26 summarizes our joint venture results in Q3. Cereal Partners Worldwide net sales were down 1% in constant currency, driven mainly by a decline in the UK, partially offset by growth in Asia and Latin America.

Coffee: While lower traffic in China shops remains a headwind for Hagen Dazs, we drove good retail sales growth in Q3 on Hagen Dazs in Europe in Australia, and more broadly we delivered market share growth across our measured categories in Europe, and Australia, and Brazil in Q3.

Improving our organic sales growth following the playbook that has successfully return blue Buffalo to share growth strengthen our share leadership in foodservice channels and more recently improved our performance on Pillsbury and <unk>.

Coffee: Third quarter segment operating profit totaled $18 million and was down 20% in constant currency, driven primarily by unfavorable price mix and input cost inflation, partially offset by <unk> cost savings through nine months International organic net sales were down 2% and segment operating profit totaled <unk> 63.

Jeff Harmening: We're planning to increase our investment centered on key elements of our <unk> ability. This includes stepping up our innovation, but more big bet launches focused on taste value and relevant functional benefits, increasing our investment behind compelling digitally enabled brand communication elevating our execution in store and online and improving value for <unk>.

Kofi Bruce: Through nine months, international organic net sales were down 2%, and segment operating profit totaled $63 million versus $103 million a year ago.

Coffee: Versus $103 million a year ago.

Jeff Harmening: Tumors by offering a broader array of pack sizes, reducing price gaps and more.

Kofi Bruce: Slide 26 summarizes our joint venture results. In Q3, serial partners' worldwide net sales were down 1% in constant currency, driven mainly by a decline in the U.K., partially offset by growth in Asia and Latin America. Agenda's Japan net sales were up 10% in constant currency, reflecting strong innovation on both cup and handheld formats. Third quarter combined after-tax earnings from joint ventures totaled $14 million, compared to $18 million a year ago, driven by an asset impairment charge at CPW, partially offset by lower SG&A expenses and higher volume at Haagen-Dazs Japan. Turning to margin results, our third quarter adjusted growth margin was down 60 basis points to 33.4% of net sales, driven by input cost inflation, unfavorable price mix, and supply chain de-leverage partially offset by HMM cost savings.

Coffee: Slide 26 summarizes our joint venture results in Q3 cereal partners worldwide net sales were down 1% in constant currency driven mainly by a decline in the U K, partially offset by growth in Asia and Latin America.

Jeff Harmening: We will fund that investment with increased cost savings, we have good visibility to delivering another year of at least 5% <unk> cost savings in fiscal 'twenty, six which translates to more than $600 million in gross productivity savings driven by further advancement of digital supply chain initiatives leveraging connected data autonomous plan.

Kofi Bruce: Häagen-Dazs Japan net sales were up 10% in constant currency, reflecting strong innovation on both cup and handheld formats. Third quarter combined after tax earnings from joint ventures totaled $14 million compared to $18 million a year ago, driven by an asset impairment charge at CPW, partially offset by lower SCNA expenses, and higher volume at Häagen-Dazs Japan. Turning to margin results, our third quarter adjusted gross margin was down 60 basis points to 33.4% of net sales, driven by input cost inflation, unfavorable price mix, and supply chain deleverage, partially offset by HMM cost savings. Our third quarter adjusted operating profit margin decreased 140 basis points to 16.5%, driven by a lower adjusted gross margin and higher SG&A expenses as a percent of net sales.

Häagen-Dazs Japan net sales were up 10% in constant currency, reflecting strong innovation on both cup and handheld formats. Third quarter combined after tax earnings from joint ventures totaled $14 million compared to $18 million a year ago, driven by an asset impairment charge at CPW, partially offset by lower SCNA expenses, and higher volume at Häagen-Dazs Japan. Turning to margin results, our third quarter adjusted gross margin was down 60 basis points to 33.4% of net sales, driven by input cost inflation, unfavorable price mix, and supply chain deleverage, partially offset by HMM cost savings. Our third quarter adjusted operating profit margin decreased 140 basis points to 16.5%, driven by a lower adjusted gross margin and higher SG&A expenses as a percent of net sales.

Coffee: Im going to ask Japan, net sales were up 10% in constant currency, reflecting strong innovation on both cup and handheld formats.

Jeff Harmening: <unk> and AI enabled execution.

Coffee: Third quarter combined after tax earnings from joint ventures totaled $14 million compared to $18 million a year ago, driven by an asset impairment charges CPW, partially offset by lower SG&A expenses and higher volume at Hagen Dazs, Japan.

Jeff Harmening: In addition, we're reviewing new cost efficiency initiatives that are anticipated to generate at least $100 million in additional savings in fiscal 'twenty six with further savings expected in fiscal 2007 and beyond.

Speaker Change: With that let me turn it over to coffee to go into more details on our third quarter results and the assumptions behind our updated outlook for the year.

Coffee: Turning to margin results, our third quarter adjusted gross margin was down 60 basis points to 33, 4% of net sales driven by input cost inflation unfavorable price mix and supply chain deleverage, partially offset by <unk> cost savings.

Speaker Change: Thanks, Jeff and Hello, everyone.

Speaker Change: <unk> third quarter financial results are summarized on slide 20 reported net sales of $4 $8 billion were down 5% and organic net sales were also down 5%, reflecting lower pound volume and lower price mix as Jeff noted. These results trailed our Nielsen measured retail sales performance by roughly four points in the quarter.

Kofi Bruce: Our third quarter adjusted operating profit margin decreased 140 basis points to 16.5%, driven by a lower adjusted gross margin and higher SG&A expenses as a percent of net sales.

Coffee: Our third quarter adjusted operating profit margin decreased 140 basis points to 16, 5% driven by a lower adjusted gross margin and higher SG&A expenses as a percent of net sales.

Kofi Bruce: Moving to other noteworthy Q3 income statement items, adjusted unallocated corporate expenses decreased $16 million in the quarter driven by favorable one-time items. Third quarter net interest expense increased $15 million driven by higher average long-term debt balances. The adjusted effective tax rate was 21% compared to 18.4% a year ago driven primarily by certain non-recurring discrete tax benefits in the third quarter of fiscal 2024, partially offset by favorable earnings mix by jurisdiction in fiscal 2025, and average diluted shares outstanding in the quarter were down 3% to 555 million, reflecting our continued net share repurchase activity. Our nine-month fiscal 2025 results are summarized on Slide 29. Net sales of $14.9 billion were down 1% on an organic basis year-to-date.

Moving to other noteworthy Q3 income statement items, adjusted unallocated corporate expenses decreased $16 million in the quarter driven by favorable one-time items. Third quarter net interest expense increased $15 million driven by higher average long-term debt balances. The adjusted effective tax rate was 21% compared to 18.4% a year ago driven primarily by certain non-recurring discrete tax benefits in the third quarter of fiscal 2024, partially offset by favorable earnings mix by jurisdiction in fiscal 2025, and average diluted shares outstanding in the quarter were down 3% to 555 million, reflecting our continued net share repurchase activity. Our nine-month fiscal 2025 results are summarized on Slide 29. Net sales of $14.9 billion were down 1% on an organic basis year-to-date.

Speaker Change: Due largely to unexpected retailer inventory headwinds and the reversal of certain Q2 timing benefits, which we had anticipated.

Kofi Bruce: Moving to other noteworthy Q3 income statement items. Adjusted unallocated corporate expenses decreased $16 million in the quarter driven by favorable one-time items. Third-quarter net interest expense increased $15 million, driven by higher average long-term debt dominance. The adjusted effective tax rate was 21 percent, compared to 18.4 percent a year ago, driven primarily by certain non-recurring discrete tax benefits in the third quarter of fiscal 2024, partially offset by favorable earnings mixed by jurisdiction in fiscal 2025. And average diluted shares outstanding in the quarter were down 3 percent to 555 million, reflecting our continued net share repurchase activity.

Coffee: Moving to other noteworthy Q3 income statement items adjusted.

Coffee: Adjusted unallocated corporate expenses decreased $16 million in the quarter driven by favorable onetime items third quarter net interest expense increased $15 million driven by higher average long term debt balances.

Speaker Change: Adjusted operating profit of $801 million was down 13% in constant currency driven by input cost inflation unfavorable price mix lower volume and supply chain deleverage, partially offset by <unk> cost savings.

Coffee: The adjusted effective tax rate was 21% compared to 18, 4% a year ago, driven primarily by certain non recurring discrete tax benefits in the third quarter of fiscal 2024, partially offset by favorable earnings mix by jurisdiction in fiscal 2025 and.

Speaker Change: Adjusted diluted earnings per share totaled $1 in the quarter and were down 15% in constant currency driven by lower adjusted operating profit a higher adjusted effective tax rate and higher net interest expense, partially offset by a lower share count.

Coffee: And average diluted shares outstanding in the quarter were down 3% to $555 million, reflecting our continued net share repurchase activity.

Speaker Change: Slide 21 summarizes the components of total company net sales growth organic net sales decreased 5% in the quarter driven by both lower organic pound volume and unfavorable organic price mix Foreign exchange was a one point headwind and the net impact of acquisitions and divestitures was a one point benefit.

Kofi Bruce: Our nine-month fiscal 2025 results are summarized on slide 29. Net sales of $14.9 billion were down 1% on an organic basis. Year-to-date adjusted operating profit of $2.7 billion was down 3% in constant currency, while adjusted diluted earnings per share totaled $3.47 and were down 1% in constant Turning to cash flow on slide 30, nine-month operating cash flow declined to $2.3 billion, driven primarily by changes in net earnings, excluding impairment charges and investiture gains. Year-to-date capital investments totaled $405 million, and we returned $1.9 billion in cash to shareholders in the first nine months of the year through dividends and net share repurchase.

Coffee: Our nine month fiscal 2025 results are summarized on slide 29.

Coffee: Net sales of $14 9 billion were down 1% on an organic basis.

Kofi Bruce: Adjusted operating profit of $2.7 billion was down 3% in constant currency, while adjusted diluted earnings per share totaled $3.47 and were down 1% in constant currency. Turning to cash flow, on slide 39, nine-month operating cash flow declined to $2.3 billion driven primarily by changes in net earnings excluding impairment charges and divestiture gains. Year-to-date capital investments totaled $405 million, and we returned $1.9 billion in cash to shareholders in the first nine months of the year through dividends and net share repurchases. On slide 31, we provided a few key assumptions for the fourth quarter. We expect our underlying Q4 sales trends to look similar to Q3 excluding the impact of retailer inventory and other timing factors, and note that we do not anticipate material changes in retailer inventory in the fourth quarter.

Adjusted operating profit of $2.7 billion was down 3% in constant currency, while adjusted diluted earnings per share totaled $3.47 and were down 1% in constant currency. Turning to cash flow, on slide 39, nine-month operating cash flow declined to $2.3 billion driven primarily by changes in net earnings excluding impairment charges and divestiture gains. Year-to-date capital investments totaled $405 million, and we returned $1.9 billion in cash to shareholders in the first nine months of the year through dividends and net share repurchases. On slide 31, we provided a few key assumptions for the fourth quarter. We expect our underlying Q4 sales trends to look similar to Q3 excluding the impact of retailer inventory and other timing factors, and note that we do not anticipate material changes in retailer inventory in the fourth quarter.

Speaker Change: Net sales in Q3.

Coffee: Year to date adjusted operating profit of $2 7 billion was down 3% in constant currency, while adjusted diluted earnings per share totaled $3 47.

Speaker Change: Our North America retail results are summarized on slide 22.

Speaker Change: As a reminder, we closed our Kennedy yogurt divestiture in late January and we continue to expect the U S yogurt divestiture to close in calendar 2025.

Coffee: And were down 1% in constant currency.

Coffee: Turning to cash flow on slide 39 month operating cash flow declined to $2 3 billion.

Speaker Change: Third quarter organic net sales for North America retail were down 6%.

Coffee: We've been primarily by changes in net earnings excluding impairment charges and divestiture gains.

Speaker Change: Lagged our Nielsen measured U S retail sales by approximately four points.

Speaker Change: Consistent with the enterprise results this gap, primarily reflecting unexpected retailer inventory headwinds and the reversal of Q2 timing benefits.

Coffee: Year to date capital investments totaled $405 million, and we returned $1 $9 billion in cash to shareholders in the first nine months of the year through dividends and net share repurchases.

Speaker Change: As Jeff noted we are encouraged by the improved retail sales trends, we drove in Q3 on Pillsbury refrigerated dough and <unk> Hot snacks, two businesses that we targeted last quarter for incremental investment.

Kofi Bruce: On slide 31, we provided a few key assumptions for the fourth quarter. We expect our underlying Q4 sales trends to look similar to Q3, excluding the impact of retailer inventory and other timing factors. And note that we do not anticipate material changes in retailer inventory in the fourth quarter. We anticipate fourth quarter results will be negatively impacted by trade expense phasing related to additions to our trade plans made in previous quarters. This phasing impact will be a 1.5 point headwind to net sales and a 9 point headwind to operating profit in the quarter. We expect increased commercial investments will be a 13-point headwind to operating profit in Q4.

Coffee: On slide 31, we provided a few key assumptions for the fourth quarter.

Coffee: We expect our underlying Q4 sales trends to look similar to Q3, excluding the impact of retailer inventory and other timing factors and note that we do not anticipate material changes in retailer inventory in the fourth quarter.

Speaker Change: However, this improvement was offset by slower retail sales in U S cereal, which we anticipated and in U S snacks, where the combination of slower category growth and increased competitive activity drove results below our expectations.

Kofi Bruce: We anticipate fourth quarter results will be negatively impacted by trade expense phasing related to additions to our trade plans made in previous quarters. This phasing impact will be a 1.5 point headwind to net sales and a nine point headwind to operating profit in the quarter. We expect increased commercial investments will be a 13 point headwind to operating profit in Q4. This includes investments in trade promotion, a double digit increase in media expense, and early investments to support significant new product launches in fiscal 2026. Finally, we expect the net impact of MA to be a two point headwind to operating profit in Q4 due to the vested Canada yogurt profits and an inventory step up related to the Whitebridge acquisition partially offset by added operating profit from Whitebridge. With these assumptions in mind, our updated annual fiscal 2025 financial outlook can be seen on slide 32.

We anticipate fourth quarter results will be negatively impacted by trade expense phasing related to additions to our trade plans made in previous quarters. This phasing impact will be a 1.5 point headwind to net sales and a nine point headwind to operating profit in the quarter. We expect increased commercial investments will be a 13 point headwind to operating profit in Q4. This includes investments in trade promotion, a double digit increase in media expense, and early investments to support significant new product launches in fiscal 2026. Finally, we expect the net impact of MA to be a two point headwind to operating profit in Q4 due to the vested Canada yogurt profits and an inventory step up related to the Whitebridge acquisition partially offset by added operating profit from Whitebridge. With these assumptions in mind, our updated annual fiscal 2025 financial outlook can be seen on slide 32.

Coffee: We anticipate fourth quarter results will be negatively impacted by trade expense phasing related to additions to our trade plans made in previous quarters.

Speaker Change: On the bottom line cost.

Speaker Change: Constant currency segment operating profit was down 14% driven by lower volume input cost inflation and unfavorable price mix, partially offset by H M M cost savings through.

Coffee: This phasing impact will be a one five point headwind to net sales and a nine point headwind to operating profit in the quarter we.

Coffee: We expect increased commercial investments will be a 13 point headwind to operating profit in Q4. This includes investments in trade promotion, a double digit increase in media expense and early investments to support significant new product launches in fiscal 2026.

Speaker Change: Through nine months, our organic net sales were down 2% and segment operating profit was down 6% in constant currency.

Kofi Bruce: This includes investments in trade promotion, a double-digit increase in media expense, and early investments to support significant new product launches in fiscal 2026. Finally, we expect the net impact of M&A to be a two-point headwind to operating profit in Q4 due to the best-of-candy yogurt profits and an inventory step-up related to the Whitebridge acquisition, partially offset by added operating profit from Whitebridge.

Speaker Change: North America Pet segment results are highlighted on slide 23.

Speaker Change: Our Q3 operating performance includes the results from the North America White Bridge Pet brands acquisition, which closed in late December and is reported on a one month lag third quarter organic net sales for North America were down 5%, leaving our year to date organic net sales in line with last year, we estimate consumer takeaway across all channels with Russ.

Coffee: Finally, we expect the net impact of M&A to be a two point headwind to operating profit in Q4 due to divested Canada yogurt profits and an inventory step up related to the White Ridge acquisition, partially offset by added operating profit from white goods.

Kofi Bruce: With these assumptions in mind... Our updated annual fiscal 2025 financial outlook can be seen on slide 32. Organic net sales are now expected to be down 2% to down 1.5% for the year. Adjusted operating profit and adjusted diluted EPS are now expected to be down 8% to down 7% in constant currency, and we continue to expect free cash flow conversion to be at least 95% of adjusted after-tax earnings. Note that our outlook does not include the impact of the pending U.S. yogurt divestiture as that transaction has yet to close. And while recent new U.S. tariffs on steel and aluminum and Chinese imports are not expected to be material to our fiscal 2025 results, we have not included any impact from potential tariffs that are paused or may be enacted in the future as the trade environment is rapidly evolving at this time.

Coffee: With these assumptions in mind.

Speaker Change: The flat in the quarter with five point gap to organic sales growth, primarily driven by unexpected retailer inventory headwinds.

Coffee: Our updated annual fiscal 2025 financial outlook can be seen on slide 32.

Kofi Bruce: Organic Net Sales are now expected to be down 2% to down 1.5% for the year. Adjusted Operating Profit and Adjusted Diluted EPS are now expected to be down 8% to down 7% in constant currency, and we continue to expect Free Cash Flow Conversion to be at least 95% of adjusted after-tax earnings. Note that our outlook does not include the impact of the pending US Yogurt divestiture as that transaction has yet to close. And while recent new US tariffs on steel and aluminum and Chinese imports are not expected to be material to our fiscal 2025 results, we have not included any impact from potential tariffs that are paused or may be enacted in the future as the trade environment is rapidly evolving at this time. With that, let me turn it back to Jeff for some closing remarks.

Organic Net Sales are now expected to be down 2% to down 1.5% for the year. Adjusted Operating Profit and Adjusted Diluted EPS are now expected to be down 8% to down 7% in constant currency, and we continue to expect Free Cash Flow Conversion to be at least 95% of adjusted after-tax earnings. Note that our outlook does not include the impact of the pending US Yogurt divestiture as that transaction has yet to close. And while recent new US tariffs on steel and aluminum and Chinese imports are not expected to be material to our fiscal 2025 results, we have not included any impact from potential tariffs that are paused or may be enacted in the future as the trade environment is rapidly evolving at this time. With that, let me turn it back to Jeff for some closing remarks.

Coffee: Organic net sales are now expected to be down 2% to down one 5% for the year adjusted operating profit and adjusted diluted EPS are now expected to be down.

Speaker Change: We continue to compete effectively amid a slower than expected U S. Pet food category. This year with Blue Buffalo pound share up again in Q3, including the retailer inventory headwinds net sales in the quarter were down mid single digits for dry food up mid single digits for wet food and up mid single digits for treats on the Bottomline.

Coffee: 8% to down 7% in constant currency and we continue to expect free cash flow conversion to be at least 95% of adjusted after tax earnings.

Speaker Change: Third quarter, North America Pet segment operating profit was down 20% in constant currency driven by a double digit increase in media investment as well as higher input costs.

Coffee: Note that our outlook does not include the impact of the pending U S. Yogurt divestiture is that transaction has yet to close and while recent new U S tariffs on steel and aluminum and Chinese imports are not expected to be material to our fiscal 2025 results. We have not included any impact from potential tariff that are paused or maybe.

Speaker Change: Through nine months segment operating profit was up 6% in constant currency.

Speaker Change: North America Foodservice organic net sales were up 1% in the quarter driven by positive price mix, partially offset by lower pound volume strong net sales growth on cereal and breads was partially offset by a decline in bakery flour, including a one point headwind from index pricing.

Coffee: Enacted in the future as the trade environment is rapidly evolving at this time with that let me turn it back to Jeff for some closing remarks.

Jeffrey Harmening: With that, let me turn it back to Jeff for some closing remarks. Thanks, Kofi. Let me close by saying that while we've made good progress in competing more effectively across many parts of our portfolio, we are not satisfied with our Q3 results, and we are moving quickly to make the necessary changes to improve our momentum.

Jeff Harmening: Thanks Kofi. Let me close by saying that while we've made good progress in competing more effectively across many parts of our portfolio, we are not satisfied with our Q3 results and we are moving quickly to make the necessary changes to improve our momentum. I continue to have great confidence that deploying our remarkable experience framework against our billion dollar brands will be the key to restoring our competitiveness and leading growth for our categories. The entire General Mills team is working aggressively to adapt to the changing environment, deliver for our consumers, and get back to growth.

Jeff Harmening: Thanks Kofi. Let me close by saying that while we've made good progress in competing more effectively across many parts of our portfolio, we are not satisfied with our Q3 results and we are moving quickly to make the necessary changes to improve our momentum. I continue to have great confidence that deploying our remarkable experience framework against our billion dollar brands will be the key to restoring our competitiveness and leading growth for our categories. The entire General Mills team is working aggressively to adapt to the changing environment, deliver for our consumers, and get back to growth.

Jeff: Thanks, Kofi, let me close by saying that while we've made good progress in competing more effectively across many parts of our portfolio. We are not satisfied with our Q3 results and we are moving quickly to make the necessary changes to improve our momentum.

Speaker Change: Though industry growth in away from home channels slowed in Q3, we continued to drive market share gains, including strong performance in K through 12 schools healthcare and colleges and universities on the bottom line third quarter North America Foodservice segment operating profit was up 1% in constant currency driven by favorable price mix and <unk>.

Jeffrey Harmening: I continue to have great confidence that deploying our remarkable experience framework against our billion-dollar brands will be the key to restoring our competitiveness and leading growth for our categories. The entire General Mills team is working aggressively to adapt to the changing environment, deliver for our consumers, and get back to business.

Jeff: I continue to have great confidence that deploying a remarkable experience framework against our $1 billion brands will be the key to restoring our competitiveness and leading growth for our categories. The entire general Mills' team is working aggressively to adapt to the changing environment deliver for our consumers and get back to growth.

Speaker Change: Cost savings, partially offset by input cost inflation and higher other supply chain costs.

Speaker Change: Through nine months North America Foodservice organic net sales were up 3% in constant currency segment operating profit was up 15%.

Jeff: Yeah.

Speaker Change: Moving to slide 25 third quarter organic net sales for our international segment were down 3% driven by declines in China, and Brazil, partially offset by continued growth in our distributor markets as well as Europe, and Australia, while lower traffic in China shops remains a headwind for Hagen Dazs, we drove good retail.

Speaker Change: Sales growth in Q3 on Hagen Dazs in Europe in Australia, and more broadly we delivered market share growth across our measured categories in Europe, and Australia, and Brazil in Q3.

Speaker Change: Third quarter segment operating profit totaled $18 million and was down 20% in constant currency, driven primarily by unfavorable price mix and input cost inflation, partially offset by <unk> cost savings through nine months International organic net sales were down 2% and segment operating profit totaled 63.

Speaker Change: Versus $103 million a year ago.

Slide 26 summarizes our joint venture results in Q3 cereal partners worldwide net sales were down 1% in constant currency driven mainly by a decline in the U K, partially offset by growth in Asia and Latin America.

Speaker Change: Im going to ask Japan, net sales were up 10% in constant currency, reflecting strong innovation on both cup and handheld formats.

Speaker Change: Third quarter combined after tax earnings from joint ventures totaled $14 million compared to $18 million a year ago, driven by an asset impairment charge at CPW, partially offset by lower SG&A expenses and higher volume in Hagen Dazs, Japan.

Speaker Change: Turning to margin results, our third quarter adjusted gross margin was down 60 basis points to 33, 4% of net sales driven by input cost inflation unfavorable price mix and supply chain deleverage, partially offset by <unk> cost savings.

Speaker Change: Our third quarter adjusted operating profit margin decreased 140 basis points to 16, 5% driven by a lower adjusted gross margin and higher SG&A expenses as a percent of net sales.

Speaker Change: Moving to other noteworthy Q3 income statement items adjusted.

Speaker Change: Adjusted unallocated corporate expenses decreased $16 million in the quarter driven by favorable onetime items third quarter net interest expense increased $15 million driven by higher average long term debt balances.

Speaker Change: The adjusted effective tax rate was 21% compared to 18, 4% a year ago, driven primarily by certain non recurring discrete tax benefits in the third quarter of fiscal 2024, partially offset by favorable earnings mix by jurisdiction in fiscal 2025.

Speaker Change: And average diluted shares outstanding in the quarter were down 3% to $555 million, reflecting our continued net share repurchase activity.

Speaker Change: Our nine month fiscal 2025 results are summarized on slide 29, net sales of $14 9 billion were down 1% on an organic basis year to date adjusted operating profit of $2 7 billion was down 3% in constant currency, while adjusted diluted.

Speaker Change: Earnings per share totaled $3 47.

Speaker Change: And were down 1% in constant currency.

Speaker Change: Turning to cash flow on slide 39 month operating cash flow declined to $2 3 billion.

Speaker Change: Driven primarily by changes in net earnings excluding impairment charges and divestiture gains.

Speaker Change: Year to date capital investments totaled $405 million, and we returned $1 $9 billion in cash to shareholders in the first nine months of the year through dividends and net share repurchases.

Speaker Change: On slide 31, we provided a few key assumptions for the fourth quarter.

Speaker Change: We expect our underlying Q4 sales trends to look similar to Q3, excluding the impact of retailer inventory and other timing factors.

Speaker Change: And note that we do not anticipate material changes in retailer inventory in the fourth quarter.

Speaker Change: We anticipate fourth quarter results will be negatively impacted by trade expense phasing related to additions to our trade plans made in previous quarters.

Speaker Change: This phasing impact will be a one five point headwind to net sales and a nine point headwind to operating profit in the quarter.

Speaker Change: We expect increased commercial investments will be a 13 point headwind to operating profit in Q4. This includes investments in trade promotion, a double digit increase in media expense and early investments to support significant new product launches in fiscal 2026.

Speaker Change: Finally, we expect the net impact of M&A to be a two point headwind to operating profit in Q4 due to invest Canada yogurt profit and inventory step up related to the White Ridge acquisition, partially offset by added operating profit from white goods.

Speaker Change: With these assumptions in mind.

Our updated annual fiscal 2025 financial outlook can be seen on slide 32.

Speaker Change: Organic net sales are now expected to be down 2% to down one 5% for the year adjusted operating profit and adjusted diluted EPS are now expected to be down.

Speaker Change: 8% to down 7% in constant currency and we continue to expect free cash flow conversion to be at least 95% of adjusted after tax earnings.

Speaker Change: Note that our outlook does not include the impact of the pending U S. Yogurt divestiture is that transaction has yet to close and while recent new U S tariffs on steel and aluminum and Chinese imports are not expected to be material to our fiscal 2025 results. We have not included any impact from potential tariffs that are paused or maybe.

Jeff Harmening: Enacted in the future as the trade environment is rapidly evolving at this time with that let me turn it back to Jeff for some closing remarks.

Jeff Harmening: Thanks, Kofi, let me close by saying that while we've made good progress in competing more effectively across many parts of our portfolio. We are not satisfied with our Q3 results and we are moving quickly to make the necessary changes to improve our momentum.

Jeff Harmening: I continue to have great confidence that deploying a remarkable experience framework against our $1 billion brands will be the key to restoring our competitiveness and leading growth for our categories. The entire general Mills' team is working aggressively to adapt to the changing environment deliver for our consumers and get back to growth.

Jeff Harmening: Yeah.