Half Year 2025 Danone SA Earnings Call

Good day and thank you for standing by welcome to Die down first half 2025 results conference call and webcast.

This time, all participants are in a listen only mode. After the speaker's presentation. There will be a question answer session to ask a question joined that session. Please press star one and one on your telephone you. We then had automated message advising you hadn't raised to withdraw your question. Please press star one and one again.

Please note that today's conference is being recorded I would now like to the conference over to your Speaker Ms. Teal <unk> head of Investor Relations of <unk>. Please go ahead.

Good morning, everyone, Mexico, just speaking at our Investor Relations. Thank you for being with US. This morning for 2025, each one has a call I'm here with our CEO and twin disc fantastic.

Who will go through some prepared remarks before taking your questions.

And before we start I draw your attention to the disclaimer on slide 37 of the presentation related to forward looking statements and the definition of financial indicators.

During the presentation.

And with that let me Andy tells us to ask why not think too much yield a warm welcome to you all and thank you for joining youre going on this morning for <unk> hundred 25 results presentation.

We're obviously pleased to share with you another set of strong and consistent results.

These numbers are more than just.

Numbers firstly, they reflect the hard work and dedication of our diners are their passion for execution there drew.

Drive for innovation and I want to thank all of them for that.

Secondly, they mark the real starts off the next chapter of renew them a chapter that builds on the foundation, we have laid over the past three years and project us firmly into the future.

They are reflective of what we told you a year ago in Amsterdam.

The food market is at a tipping point.

For foods underpinned by science, what we do for a living has never been so relevant and.

And our categories are growth categories.

Which has never been so volatile and uncertain.

We keep performing work transforming.

So let's go into the details and go straight to slide number three.

As highlighted in this morning's press release, we started the year with a strong performance demonstrating consistency in our driving quality growth and reflecting the strength and the residents of our portfolio.

We've carried the momentum and regional from Q1 into Q2.

And this is reflected clearly across all our key metrics.

You mentioned, one we delivered like for like sales growth of plus four 2% a strong result, given the challenging external environment.

Importantly, this growth is well balanced with volume mix contributing plus two 6% and price plus one 7%.

This quality growth combined with disciplined execution and operational productivity.

Drove a plus 49 basis points improvement in operating margin year on year, reaching 13, 2%.

Underlying profit, increasing and a fading impacts from portfolio disposal in quarter two.

We are not seeing this translates into recurring earnings per share, which is up plus five 8% versus the same period in 2004.

And obviously, we continue to maintain a solid financial position.

<unk>, one 2 billion in free cash flow.

For the first stress hubs.

This performance is reflective of the strength and the resilience of our business model, but also as I was mentioning earlier, although relevance of our health focused and signs of a strategy.

Fast changing world.

Let's now turn to slide four to discuss some of these growth drivers.

The relevance of our strategy and the resilience of our categories and of our portfolio is translating in the numbers.

Consistent growth in line with our midterm guidance and importantly quality growth, we just sound volume mix component and multiple growth engine, many of which grew at high single or double digit rates in each one.

Take for example high protein. This is a category benefiting from growing consumer awareness of the health benefits. It brings.

<unk> or <unk> like fitness and performance.

<unk> house like waste management and wellness.

Our fast growing ranch with a focus on strong product shipyard.

<unk> unique functional benefits.

Helping to further drive penetration, especially across the Americas, Europe and Japan.

We also continue to rollout our innovation to new geographies.

And we still all of TV <unk> has shown very mens much room to grow.

In medical nutrition, we are seeing obviously growth in adults or nutrition.

We will Miss all of its role in patient recovery continues to rise.

And we are especially encouraged by the performance of our plant based medical nutrition drinks.

These products not only expand choice and variety for patients, but also enhance turbulence and adherence both essential to unlocking the full benefits of nutritional support.

In Europe, our coal continues to set the pace in the plant based category.

As the number one brands, we are driving category growth through innovation.

I started rings true value added functional yugos focus on high protein and good health benefits we.

We are transforming our whole form new ingredients that attaches to the IL.

True benefit led plant powered nutritional complement to the area.

All that time, you all strategy of premier musician keeps delivering.

Really strong growth in Latin America, China, North Asia, and Oceania, and EMEA and growth as well in volume in Europe.

We have innovated our core range and now rolling out to shipyard, our innovation platforms that meet specific nutritional needs and improve the health and development of children.

<unk> is a clear example of our science based consumer centric approach creating value through differentiation.

So a number of things are encouraging, but let's also be clear not everything is quite where we wanted to be there is more to do and things that need fixing.

This is why as I told a number of you.

The guidance, which we are beta enables us to deliver consistently.

Doing the right thing for the long term fixing what needs to be fixed and investing where we need to invest.

Speaking of places, where it's two more to be done, let's turn to slide five.

Yes.

In daily.

Back in the game.

Not we are not leading the game everywhere.

We are steadily transforming the portfolio to strengthen our position in functional segments, we are making solid progress in innovating and simplifying activia.

Recent launches, including Kitchener and fiber variance in Europe Party with.

<unk> and <unk> in North America.

<unk> built on its trusted benefits in Japan and are following clinical trials. We are able to claim that <unk> is probably a 600 times more effective than <unk>. So good progress.

<unk>, not yet where we want to be.

The same applies to a number of the other brands across our portfolio. We are engaged in a very systematic approach to drive science based.

Consumer relevant innovation and shoe failure.

And to progressively move from competing.

To shaping our category.

And plant based as mentioned earlier, we've reignited growth in Europe through a combination of innovation and great execution.

We are spotlighting the functional benefits of plant based nutrition with refreshed packaging and communication that highlights the five essential nutrients enhancing the unique nutritional profile of our drinks and yogurts.

Alcohol is back in full swing.

In North America, while we are seeing early signs of recovery the job is far from finished.

<unk> by the launch of our kids range due to strong performance of our premiums so delicious cocoa note offering.

<unk> ongoing efforts to optimize shelf presence.

Making it easier for consumers to shop the fixture.

That said the.

There is more to do.

Both to unlock the full potential of the category and to strengthen performance.

And alcohol offers now a proven blueprint.

Pat I Shouldnt, we have made significant progress, we've known to opioids, whereas our guy charged itchy and speed and we are proud to be ranked number 10 in garden, the top 25 supply chain.

From <unk> last year.

This is encouraging and shows how much progress we have made.

We are not yet where we should be we have faced this year our share of challenges we are learning from them.

Further investing into capacity capabilities and quality.

The clear ambition.

Best in class at selling customers and unlocking the full potential of chapter two offering.

This chapter as obviously started moving now to slide six.

When a year ago, we shared with you chapter two of renew that we told you a few things.

We told you we have become a different company.

<unk> focused science based execution driven.

We told you the food markets, we're at a tipping point and we thought they were coming our way.

We told you we would double down on the fundamentals of renew.

While further transforming the business, having the ambition to become a value compounded.

This transformation P protein broadening and expanding is starting to take shape.

We are starting to unlock new growth space with breakthrough innovation.

You may have seen the soft launch of our new shelf stable protein shake in the U S. So obviously early days, but the feedback both from consumers and the trade has been very encouraging.

This shows the strength of <unk> brand as high quality and Trust third party experts and is also a good indication of our intent to leverage science and capabilities to enter new spaces.

In the same spirit, just a few weeks ago based on proven research, we launched a new danone jewel yogurt drink in Japan, which has a unique blend.

Brining politiques trend was a natural sweetener.

Improved metabolism.

We know that metabolism and digestive health are top priorities for many people in Japan. So our team has put a lot of care.

Developing a product that triple dose and tastes great taste, great obviously.

We told you about our intent to further broaden our China footprint.

There is no better example of this than what Youre doing medical nutrition Beach in China.

Build to suit both patient not only in us fetor roots in the communities, where they live beats into home service.

We now provide enteral nutrition in more and more countries.

We are reaching more people.

In more places at different stages of their life.

These strengths Sundar as you didn't have a mobile.

As we continue to grow in channels.

Channels and reduce our reliance on mass retail.

We also told you about further expanding our geographic footprint.

It makes sense.

In specialized nutrition, we are rolling out our infant formula platform to new markets, such as Vietnam parts of Southeast Asia, and North Africa.

Choose our core activity formula.

Or more tailored solutions for microbiome recovery after C section all for iron deficiency.

We're bringing the benefits of Chicago signs to more families around the world to improve health through food.

Moving now to slide seven.

As part of the next chapter.

You also said that we intended to move to the front fruits on acquisitions.

Recently, you've seen us just do that.

Always guide.

<unk> clear strategic intent and disciplined governance.

Firstly, we are pleased to have completed the acquisition of catch farms.

<unk>.

We warmly welcome they are really great team into of the denim family.

Our fast growing medical nutrition business catch farms is are the number one doctor recommended plant based brand in the U S.

<unk> a wide range of organic plant based nutrition products.

Both medical and everyday needs. This is highly this is a highly complementary addition.

Through our North American medical portfolio.

Which starts to diverse real scale.

It strengthens our ability to show more patient consumer and health care professional with a broader high quality offering.

Dillard to Douglas health needs and.

And as I said, Kate farms copes with an amazing team.

We also announced a smaller book.

Strategically significant acquisition.

Cameron share company.

Two decades of pioneering science in biotechs provided the company with a specific boats extreme.

Which has been clinically demonstrated to enforce the good value.

We reduced information and counteract metabolic disorder.

Our unique delivery technology.

Enhances the efficacy of these breakthrough train is train maximizing the positive impact it has on the goods.

As you heard our Isabel and I said before the science of the microbial and the fields of gatehouse.

Not only the historical strengths of definitely search.

Also shield, which offers immense opportunities ranging from consumer goods to obviously medical nutrition.

These acquisitions are a good example of what we want to.

Drug house through foods anchored into science.

They will contribute to enforce our long term value creation model.

While we continue to.

Through delivery.

Distance and resilient performance that you see today and with that I hand over to yoga yoga and over to you. Thank you Angela and good morning to all of you.

<unk> get into the details of our financial results for this first semester 2025, starting with slide number nine.

We are pleased to report another quarter of quality growth with like for like sets up plus four 1%.

Importantly, a significant plus three 2% contribution came from volume mix driven.

Driven by multiple growth engines across regions and categories, while price was a positive at plus 1%.

While in business every quarter upfront of different challenges and opportunities we are happy with the consistency of execution by our teams.

<unk> has been delivering now for many quarters quality growth.

Two plus size range.

To better assess the solid underlying dynamics I propose if you look at the performance by region and category on slide number 10.

In the second quarter, all regions contributed positively to our performance, reflecting as Antoine just highlighted the strength of our health focused portfolio.

If you dive into regional details shortly but let me mention here are really two standouts.

It continues to build momentum is very solid growth led by volumes and mix.

And <unk> that posted an exceptional performance firing on all cylinders in the second quarter.

Regional performance is also reflected in our categories, especially in specialized nutrition posted stellar plus eight 7% net sales growth.

Driven by Optum is broad based market share gains as well as by sustained growth demands in the medical nutrition category across all regions.

Next two specialized nutrition, our ETP business delivered a solid plus 3% like for like growth led by volume growth was driven across geographies by functional dairy high protein in particular.

<unk> posted another quarter of strong competitive.

And lastly, what us that delivered a soft quarter as you can see from the numbers here. This reflects.

Next a mixed situation, we experienced adverse weather conditions in a number of emerging markets, including Mexico, and Indonesia, while on the other side <unk> in China in <unk> and you will continue to perform well.

Stepping back and looking at <unk> numbers on this slide we can confidently say that we delivered not only another quarter of quality growth.

<unk> also demonstrated again do resilience of our portfolio.

Let me now move on to the traditional sales, which on slide 11.

Our strong like for like performance of plus four 1% was as mentioned earlier driven by volume mix of as much as plus three 2% with price contributing another plus 1%.

This like for like growth was offset in the second quarter by currency headwinds.

Appreciation against major currencies, including the U S dollar and the Chinese renminbi led to a minus <unk>, 9% impact on sales.

As you have noticed we no longer have a negative scope effect.

It passed disposes fully annualized from Q2 onwards, overall reported sales and therefore remained stable year on year at around $6 9 billion euros.

Let's now take a closer look at the performance of each region, starting with Europe.

Slide 12.

Europe continued its step by step improvement and delivered like for like sales growth of plus two 2% yes.

We are pretty happy with this growth, which is notably driven by sustained progress in edp.

Positive volume mix for the seventh consecutive quarter.

This progress was fuelled by functional products in particular, our Hypothenar range.

Also the successful rollout of our innovations like ski up and Keith here.

In the plant based segment and the IPO brand continued to deliver strong growth gaining market share with its more functional beverages and yogurt office.

Specialized nutrition saw mid single digit growth. This quarter growth was led by medical nutrition with all major brands, including <unk>, <unk> and <unk> performing well.

In infant milk formula up to mute posted solid growth and market share gains.

Diligent.

In water despite uneven weather conditions across markets, we delivered resilient growth led by solid performance in the premium segment.

But the entire first semester, you will posted like for like growth of plus one plus two 1% entirely driven by volume mix and recurring operating margin of 11, 4% broadly stable versus last year.

And with that let's turn to North America on slide number.

13.

North America posted like for like sales growth of plus two 3% delivered by a plus one 8% increase in volume mix and the positivity or 5% price effects.

Edp high protein yogurt continued to lead the growth with our market, leading iqos whole platform delivering strong double digit performance in a very dynamic segments.

Coffee Creamers are progressively recovering following service challenges during this first semester.

Market share started to improve in the course of Q2.

We have aggressively rebuilding the distribution of the international delight brand the.

Team first focus to bring our <unk> back to the chef.

The complete <unk> portfolio following over the coming months.

Specialized nutrition, particularly medical nutrition delivered another very strong quarter.

In parallel.

Unmentioned integrating that Kate farms company.

Which combined with our existing business to be an even stronger springboard for our future growth trajectory in this region.

Overall this brings our estimate the sales close to plus 3%.

<unk> contribution from volume mix and price.

Recurring operating margin continued to expand up 33.

Basis points year on year, driven by solid gross margin expansion.

Moving on to slide 14.

China, North Asia and Oceania.

The region delivered an exceptional performance in the second quarter with like for like sales, increasing by as much as plus twice, but 4% entirely driven by volume mix.

Importantly, this truly broad based growth as all categories are contributing to it.

We continue to see strong demand for our specialized nutrition product in China growing at double digit pace.

This is notably fueled by our sensus platform in DIY segment, which continues to drive market share gains.

The overall IMF category is benefiting from growth in the stage, one segment, which is as expected expanding into stage two.

In parallel the medical nutrition category is also experiencing strong demand for both infants and preparing the future we are doubling down on and expanding our presence inside and outside the hospital network.

On the beverage side MISO continues to perform very well achieving again strong volume led growth benefiting from a dynamic segment of functional beverages.

In Japan, our two functional oil cost and activity are keeping up their strong momentum as Antoine mentioned, we keep innovating in this highly sophisticated market, where metabolism and gut health are top priorities for our consumers.

But the entire semester the region posted plus 11, 3% growth driven by a plus 11, 9% increase in volume mix.

Operating margin reached 37% up 12.

Bps, reflecting notably positive Kathy Lee.

I suggest you move onto discuss Latin America on the next slide slide number 15.

In a volatile and challenging environment in Latin America demonstrated resilience with a solid plus two 9% like for like growth. This growth was entirely led by a plus five 9% increase in price with volumes down around minus three.

In Edp, we delivered robust growth across the region with all segments performing well.

We have over those past couple of months, particularly active on the innovation front with the successful rollout of our high protein ranges and our dream.

<unk>.

Very pleased with the continued very strong performance of specialized nutrition in both medical nutrition, but also in IMF, where uptime year sustained strong momentum in both Brazil and Argentina.

In waters, our business in Mexico was unfortunately impacted by adverse weather conditions with an exceptionally cold and rainy season.

Looking at the entire first semester diligent posted like for like growth of plus <unk>, 7% recurring operating margin reached plus four 3% with a strong increase versus year ago is bodes well for the second semester, which is structured to run with higher levels of profit and margin.

This region.

Finally, let's have a look at our Africa Middle East and Asia region on Slide number 16.

In EMEA, we posted a solid plus <unk>, 1% like for like sales growth in the second quarter with plus one 4% volume mix and plus two 7% price specialized nutrition delivered another strong quarter, particularly southeast Asia, India and Middle East.

<unk> key.

A key growth engine and we continue to expand the brand to new geographies, such as Vietnam and Nigeria.

Yes power leveling out of our multi brand iron Biotics platform across the region to support the fight against Iron deficiency anemia.

In Edp dairy in north as well as in West Africa maintained its positive momentum driving solid growth alongside the business model that continues to improve its profitability.

For the entire first semester the region posted like for like growth of three 7% driven by a plus three 5% increase in price.

Operating margin reached 10, 1% to 72 bps decrease mainly due to unfavorable currency changes.

I suggest we concluded a zone review and we move on to the margin bridge for the first semester.

Slide number 17.

17.

Our recurring operating margin stood at 13, 2% in the period with improvement of plus 49 bps compared to last year.

We are happy with the affected our margin from operations continues to expand in this first semester by 139 bps. This is a result of our quality growth continued high levels of cost productivity as well as moderate material inflation.

As we move into the next chapter of venue and a non-GAAP starting to shift the investment magnitude and nature. We are moving sequentially towards an investment focus on category leadership and are progressively moderating the level of investment is largely discussed earlier this year.

<unk> Bridge is in this first semester of 2025, reflecting again the way in which we intend to create value for the short and long term.

It shows the power of the Darden business model based on quality growth leverage and very importantly, consistency and discipline.

Let's move now on to the EPS bridge and free cash flow on slide 18.

<unk>.

EPS grew well ahead of sales at plus five 8% in the system is the main contributor to this growth was a strong operational performance, which we just went through at plus six 2%.

The team was at the same moment able to reduce the impact of both financial results, adding positively by <unk>, 7%. Thanks to a great management of our debt position.

H, one and 2025 was the last semester of negative impact from the disposal of horizon organic with a.

Minus two 1% effect why it takes associates <unk> had a minus one 1% impact over the period.

Finally, the negative currency impact on our EPS was more than offset by a positive impact from Ias 29.

It's very solid step up in our earnings as a key lever to deliver our cash ambition. We are matching in this first semester of last year's record of free cash flow generation at one 2 billion euros.

This concludes the financial review for this first semester and I want to extend a big Thank you to the teams who made those results possible.

Moving on all dimensions of sustainable value creation.

Which leads me to conclude with the financial guidance on slide 19.

As we shared with you today, we are very pleased with the strong performance delivered in the first half of the year looking for what we are confident and well on track to achieve our full year 2025 guidance of plus three to plus 5% like for like growth and recurring operating income growing faster than sales in line with our midterm ambition.

And with that let the victoire conclude.

Conclusion, thank you.

Before we open the floor to questions I would like to leave you with a few final thoughts and let's move to slide 21.

The name of the game for US is one of performing consistently.

So projecting ourselves in the future capturing emerging opportunities in what is a fast changing world.

Our first half results are good illustration of what we want to achieve with this new chapter offering you that one.

On the one hand.

Driving to consistently deliver quality results.

<unk> on our core business with discipline.

Fixing what needs to be fixed while leveraging what works well.

And obviously remaining constructively dissatisfied.

In a context that is not getting any easier.

On the other end keep transforming through innovation and acquisition.

Focusing on high growth value added segments segments, where science and health related benefits makes the difference.

The next chapter of renew is underway, but it told me the various thoughts.

Find it quite exciting and we hope that.

You do so as well and with that let me hand back to Matthew to start the Q&A question material over to you.

Thank you our plans. So we are going to open the Q&A and the first question. We have today comes from.

Matt.

UBS.

Thank you very much and good morning.

Matilda.

Two questions from me please.

First one on the Edp in North America.

Another robust print in Q2, despite the normalization in pricing, which I guess was expected versus Q1.

My question is above and beyond protein.

What have been the key growth engines in the quarter for Edp, North America, and I guess are you.

That is fine with your market share development in yogurt for the region because the scanner data seems to signal some contraction since the start of the year.

And then looking ahead under two current Underperformers.

Our coffee Creamers and plant based beverages.

When would you expect these two businesses to contribute positively to like for like sales growth.

And then my second question on specialized nutrition.

C E O.

Second consecutive quarter of like for like sales growth in double digit territory.

Maybe could you help us unpack this strong like for like it seems to have been very much led by volume mix, but could you tell us if it was more mix of more premium amortization.

Volume and penetration gains.

In the quarter, what do you think category growth was for specialized nutrition I mean, just so we can get a feel for your level of outperformance and how sustainable that double digit like for like sales growth is coming.

Coming quarters, Thank you very much.

Good morning, Thanks for the thanks for the questions I mean, let me start.

With North America.

I mean, you said it opportunities is going from strength to strength actually the growth of the market is our is really impressive so actually beating the expectation of.

Of everyone. So we prioritize.

Delivery of what you sort of high value high growing segment and in some cases by the way. It comes at the expense of other parts of our.

All of our business.

We are super happy with the early signs of progress.

Sure <unk>.

Where we see a couple of things are moving in the right our adoption so I mean.

Too early to I mean too early to <unk>.

The first indications are moving in the right direction.

And we are lining up.

Next move we choose are something we have been talking for a while which is revolving.

Dan Ingalls business, so very very strong.

Proteins early.

Encouraging signs on.

On <unk>.

Not material now so.

Not yet translating into shares are and are in the second half we will come back on.

On the animals.

So going in the right not fixed yet.

We still need to be better off from a shelf standpoint, we have a unique portfolio in the U S that covers all offering.

And.

For the moment only pertain.

Diving, we're not leveraging the full months of our portfolio.

So with that I'll ask two good job to.

To the job to be done.

Our creamers and plant based Creamers.

You can set it I think things are starting to move in the right direction.

We're seeing our share starting to move.

Move back in the right direction, our core volumes all back in our distribution mix is obviously over the coming months are to bring the ice of the ranch in our food distribution, so moving in the right direction.

Sure.

We will get sequentially better.

Not.

Yes.

Well warranted.

Our client base I mean, I said it in my presentation was Super excited with Alto in Europe, which is now in full swing, which is winning shares.

Which is giving us a blueprint.

We are starting and we will in the second half of the Youll start deploying some of the learnings of alcohol.

The U S.

Trust me I wish we would be our faster our beautiful titled why.

That risk.

<unk> spent the last couple of those in the U S. A we spend quite.

Quite a bit on the U S last week.

We should do more faster but.

Thats life.

Life of our business so altogether.

Solid trend for.

The U S.

We're also a level of construction such as section more to be done in the.

Our markets are.

<unk> remains an exciting markets are specialized nutrition in China will do address.

With yoga.

<unk> story shorts.

Markets.

Getting better.

Given what we saw with.

Growth rates, which is obviously translating as babies are aging.

Into the next stage of <unk>.

<unk>.

But more importantly.

Our business model is going from strength to strength and it's a combination of our <unk>.

A number of things number one innovation Sn.

Census keeps working extremely well, we keep going we keep winning share.

Our company on.

Base of two things on the basis of a very strong science and great brand building and on the basis of very very disciplined.

Execution in the trader, we told you many times about the quality of our business model and the way.

We grew at market.

I mean, very strong hand on our inventories.

Keeps growing quarter after quarter and its delivery.

<unk> delivers exceptional results this quarter.

Good morning, Jim Young speaking.

Fair to say that at the beginning of the year, we saw the IMF.

That's usually in green on stage. One this is as we expected now progressively extending into stage two when you add together our stage one and stage two you speak about two third of the category.

Overall the China.

And so there are reasons to believe the close of the second half of the year.

We'll be performing.

At the same moment you have seen that the Chinese government is increasing incentives for getting the birth rates are better for the long term and obviously, we hope that this is creating a reside.

<unk> is doing very well we are also very happy with medical nutrition in China. It is important to say on both sides on pizza, which is performing.

Performing extremely well, especially on LNG treatment, but also on the date of the BR Cushing to get modest accretion in hospital and outside the hospital.

Thank you very much.

Yeah.

So we're not going to take the next question from.

Kevin Eliott dancing.

<unk>.

Great. Thank you very much for the question.

I wanted to start with Europe.

You had another quarter of very strong volume growth in Q2.

Yeah, and obviously called out the progress in dairy and specialty functional dairy.

My question is as you look at the data that you have.

From a consumer perspective do you see the same drivers of this acceleration in Europe.

Previously seen in the U S driving functional diarrhea that the course of the past two or three years or is it something different going on in Europe today.

And then my second question is on reinvestment.

You showed in the in the margin bridge yoga and another 90 basis points reinvestment in H one.

170 basis points in 2020 for 100 basis points in 2023.

It's obviously great to see you guys reinvesting in and we can obviously to see the benefits of that given the strong <unk>.

Got it.

Youll, saying.

My question is I think there has been an expectation amongst investors.

The pace of that reinvestment might moderate.

Which were obviously not really seeing yet in an H. One so just hoping to get you to discuss current investment levels, the pace of reinvestment and how happy with where you are today.

Hey, good morning <unk>.

<unk>.

Youre going on that are you starting to.

So you should look at Europe actually.

What we see is a combination of a number of different things.

Obviously.

I mean, what's redo, which use healthful foods underpinned by science Israeli value order books in Europe.

Youre <unk> you.

<unk>.

What renewal.

In Europe.

Europe.

So you see that across.

In all you see that.

Alcohol.

Five ingredients.

On the breakfast moment also the way we claim.

The benefits of alcohol, all merging or REO additions. So that's just one dimension in that 1 billion Chinese version at all.

What you will.

Other parts of the World I think the second thing that we are.

We're seeing in Europe.

Is something we told you about which is a step by step.

The poster.

<unk> or execution.

And sharpening of our.

Sure.

Take our France, which is a good example are in France, 10, Boston Boston.

The performance going up in the country, which is notably difficult I can say that as a as a French proteins.

And you see it moving on all fronts, you take something that is not the most science based products in our portfolio although debates.

Which is very iconic brand in France.

We have not cracked super good advertising.

Cool things from an execution standpoint, and you see the stock.

<unk> of.

Reaction when it comes to the market doesn't mean deaths.

Everything is fixed yet we still are plenty of opportunities are in Europe.

Resections and I'll touch on to be very exciting and places large our U K.

Starting in France, not sold yet.

Spain, so more to be done so.

Consumer trends are more or less the same in everything we do around science is making sense.

Sharon is sharpening, but it's not yet at the end of the G&A.

And we asked you constructively dissatisfied.

And when it comes to the financial algorithm in the level of investment we are actually confirming what we said a good year ago. When we were together for them.

We need to continue to reinvest into our business because it is part of our business model actually and as we said in Amsterdam, we will progressively changes and the magnitude of the investment and the nature of the nature of the investment because if you go from catching up to really invest into category leadership and as you can see.

We are seeing very good returns because those investors will be investment to make sure that we are growing this quality.

Submit device dymista and quarter by quarter looking forward as we said.

As reasons to believe that level of investment model of it.

But we will continue to invest especially into science into our brands.

And into technology, So no change vis vis what we largely discussed.

Okay. Thank you.

Thank you Kevin.

Now going to take the next question.

Ackerman backlog.

Yes. Thank you good morning, Antoine <unk> Barclays.

The first question is.

Just maybe diving a bit more into U S. ETP. Thank you for the comments can you maybe talk just a little bit more about coffee creamers.

How much extra capacity are you adding from Jacksonville.

Are you doing in terms of the trade weighted distribution point, so I'm, just trying to understand a little bit more.

A lot of market share you're rebuilding.

We're still seeing kind of this kind of ATB being very weak are you able to maybe kind of give us a bit more color in terms of what your plans are for international delight going forward and into the into the back half.

And then related to that in the U S. ETP the high protein smoothly in the U S. It looks like a very big market opportunity and the product looks good clean label, but how much of that market do you think you can get.

Given its dominated at the moment by Bell ring, Coke and Pepsi and what's the distribution that youll seeing as it already nationwide in the U S or is it going to be progressively rolled out.

In the second half of the year I'm trying to understand the kind of U S.

Edp outlook I suppose for the second half given the second quarter.

Coffee creamers dropping and should we see some kind of sell in for the high protein smoothies in the U S. In the second half.

That's the first one and then the second one is a bit more like not results that you say, you're one of the big opportunities to improve and you're constructively dissatisfied as on the supply chain.

You want to raise the bar in the supply chain excellence.

I Wonder whether you could maybe talk a little bit about that and what the crime and the team are doing a where youll see the gaps. These best in class and how you think that that can help sort of resource allocation medium time. Thank you.

Thank you. Thank you arent so listen on the.

U S GDP two things on the on the coffee Creamers.

Plenty of capacity.

<unk>.

Jacksonville, So no new capacity already mentioned when it comes to our trophy <unk>. The name of the game for US is really about execution.

As I was saying we are back with the core of the portfolio I think we.

Good levels of our distribution.

<unk> push.

Different states or local.

Types of distributors it was by and large.

The core of the business is back into distribution the next stage.

Our will still take.

A few months will be to bring the rest.

<unk>.

Portfolio into.

<unk> food distribution.

You see on your SEDAR toward in the.

The Nielsen numbers.

Since thoughts going into.

The awards are.

Directions, So we should step by step by step changing our competitiveness on our international yacht.

We are also working on or what is the next thing I shouldn't because you've seen also that mix too.

<unk> traditional fight between coronary and international on the large.

<unk>, new offering are coming to the market so I.

I mean more to come in the second half of the year as consumers are.

Changing.

We have I think opportunities.

We can.

When it comes to our ortho shakes.

It was.

A soft launch we started our with our very limited distribution.

Costco as a as a test.

The early results are in.

Extremely encouraging.

To the point that all the time.

<unk> has been significantly enlarged.

Our food distribution.

Net.

We all should weeks into the launch so I wouldn't.

Post yet, but the first signs are encouraging but.

As Ben and lodge at their request.

Our customers. So early signs are very good.

Encouraging.

We will see.

In the next quarter, how big and how fast, but yet again.

A good start on something where youre at.

Across brands should relevance.

Regroup.

On.

New segments, which is really the guy to 10 billion segments in the.

In the U S.

There are plenty of things.

Can.

Sure.

Anybody has any reason why you don't go largest soon.

<unk> got good result was why didn't you just.

Holding you back from actually going nationwide more quickly.

I mean, we will increase but you know.

I want to prove it.

Before I do a big pipeline.

And our discover that although it is not what attributes so I'd rather.

Disciplined and spend a few more weeks.

Our scaling it up rather than going fully and then when its ruling so its more a matter of discipline anything us first signs yet again super encouraging.

Okay.

In supply chain.

Yeah on supply chain.

There are two things two different all level.

You've seen what's happened.

You've seen what's happened in the U S on printers.

Which is in some ways a known goal so kind of be kind of be happy about that so there is still work in.

Keeping our ship senior member of the number of sites, making sure that the quality of services, making sure that your personal discipline.

Keeps progressing step after step after step we've made.

Some good progress orbits.

As to progress.

To be made.

Sure.

Other thing and then I'll hand over to Archie.

One is while we are we keep raising the floor.

We also raised the ceiling.

Yeah.

So we are engaged.

Okay.

No noise.

The transformation of our planning cycles.

<unk> Central these strategies are enabled by our which we have now step by step moving in.

A number of our regions.

Big transformation that we started a year ago.

Sure.

Now are taking effect, so it's really raising the floor and raising assuming at the same time, yes, and maybe just to add one element of along with money in the last three years and the way we have been working hard to catch up versus the industry average in operations and is what the team has fantastically delivered but you can see actually an hour cooks.

Productivity last three years, well ahead of the average of the industry.

We are not going to stop here. The ambition is to get to world class level of management for supply chain and therefore, our ambition is to continue posting.

Our level of productivity you may have seen what were doing operate in Poland, which is effectively which is really state of the yards from a technology standpoint, and demonstrating at investing into technology and digital has strong returns in supply chain and is what you can expect us to continue doing.

Thank you.

Thank you Ryan.

Your next question.

Please go ahead.

Thank you.

Thank you very much Mike Hilton thank.

Thank you for giving me this opportunity my first question you have.

Any change in leadership in the U S.

So first of all.

Is this impairing rules for Varian is now becoming a constant one or are you looking for someone.

And then Tom you mentioned that you would like Larry said.

<unk> in North America, although ags more than over a year, we have been talking about.

Improvement in turn around.

Yes.

Yes, Kevin the performance Nissan there on the scanner data, we're seeing quake.

Formats, so far you already talked about our program.

Yes.

<unk> being implemented in North America, what has been the obstacles on the way. That's my question number one and my question number two you have that meaningful performance infant formula and specialized nutrition not only in <unk>, but.

Also in other markets my understanding if you did not have MSA since launch there.

He has been driving the more recent acceleration in the market are those market share gains is it any additional innovation.

Outside of China. Thank you so much.

Hey morning, Victoria.

<unk>.

Change of leadership.

Repeat what I said well the first thing is we have a very good I can tell you ticked down.

In North America.

Sure.

In Canada the R V.

Very very strong people that we've put in place.

Over a year ago.

To make sure that whatever happened.

We have a strong team in place I said that.

It was in charge for now and I'll keep repeating because he is in charge for now when.

We have something to announce.

We'll announce it.

For now it's not necessarily a forever.

All are on sale.

I told you, maybe Chris titled which the speed at which we are moving.

I think the good news is we now have a proven model of alcohol.

And we have a model, which is our base about.

Capturing the.

Moments of the breakfast for the start of the day.

Which is about our product <unk>.

Sure.

Our ingredients, which is by the way about outstanding advertising.

Im very strong innovation.

Are.

You cannot just take it and put it as is in the U S. Because our consumers difference because a large part of the business is in.

In the electric Joe to the aisle.

In the U S. While it's mainly engines in Europe. So there is I mean there.

There is a bit of time for.

Adaptation, that's one dimension.

But there was another dimension to be honest, which is a bit of not invented here.

To which we have put in and so you should.

Starting more movement faster.

On your last question, which is our <unk>.

Drill result, youre going on that.

Timing is really firing on all cylinders.

Who are interested in obviously.

You mentioned in Shanghai is doing well both owned by the way insurance and on <unk>.

Medical.

But if you look at 10 million across the across the world.

The mix of very good and disciplined execution all of them innovation when you take a section at.

The beginning of the journey.

Expansion into new geographies, I mean whats reordering.

It is pretty cool.

We are doing Nordstrom to optime, and but on the other brands.

Iron deficiency.

Really cool so we have a number of engine on.

Rich.

The church.

Consistently so it's a mix so great execution.

Great innovation and maybe just just will contribute to this one element I mean up.

Being the largest single largest brand of the <unk> portfolio is growing.

High single digit double digit in all the regions with the same recipe, which is superior formula based on Super strong science and insights from the consumer.

So I think we feel really fantastic asset in our hands next to medical nutrition, which by definition is a strong growth segment, so more to come.

Thank you.

Thank you Vishal and now going to take the next and last question on <unk>.

Go ahead.

Okay.

Thank you. Thank you for that and good morning, everyone.

My first question is on the margin progression gross margin wise.

140 bps and you again, you mentioned the reinvestment, which was high at 92 I just want to understand whether there was any PTC benefit.

<unk>, two and understanding as well.

So at a high level would that lower in the second half.

Yes.

I understand a bit.

Moving to the year.

And then my second question.

And <unk> you mentioned that you have been moving on the front foot on acquisition.

Q detail this morning.

Are you satisfied with the progress you're making down do you think that.

How is the pipeline looking and whether that would be.

<unk> you're looking at.

Thank you Sal and good morning, let me take the second and Youre going to Youre going to take the first well first I'm Super happy with the last two acquisitions.

They are really really excited and actually I was I was having dinner last night with our breadth.

Who is the leader of Kate farm.

What we tend to get out is just amazing.

And he told me it's humming.

The start of which we can do same story I Kevin Shaw.

Largely.

Small company.

But the technology that is in the Super Bowl.

So on.

<unk> strategy discharge sheeting.

<unk> often is that all the relevant ones.

Sub debt of just so the pipeline is a healthy pipeline.

Quite broad when it comes to or through jug options.

So a number of exciting things.

I mean, where they land when they will land I mean as you know acquisition is not a precise.

Science, but it is very clear.

Have a very disciplined.

Management of our acquisition pipeline.

Aggressive, but disciplined it's back to what we said a number of times, which is attached to them makes sense almost strategic standpoint, it has to make sense from a financial standpoint, and both at the same time.

Yes.

More to come.

Working on a number of things when will it come.

To say it because acquisition is not something that comes luxury store growth.

Good.

Good morning fill in a few words on profit margins as you say, we are pretty happy with the first I missed the first semester, where we benefited from the strong organic growth, including a very strong mix effect as you could see from from China in specialized nutrition, but also from.

The last positive scope effect from the horizon organic disposal, which ended in Q1 we.

We leveraged as you said the very solid gross margin expansion to continue reinvesting into our business and.

Sure.

And what it means for the second semester actually the key variables for the second semester, which changed little.

The first one quality growth moderate inflation in your model of inflation will continue to come mostly from agricultural ingredients.

Persist.

We may see a slight increase from tariffs, depending on where things will land.

And we believe that will be.

<unk> be able to continue delivering solid productivity. So in that sense. We are confident that we can continue to expand our profit margins. Despite an expected stronger headwind for currency assuming that the current CEO rates, where they are today and as you know our mantra.

We see additional savings will be gone.

We invest in order to make sure that we deliver the future strong growth.

Okay.

Thank you.

Thank you very much so with that we close the Q&A session and I hand now.

Okay.

Well again, thank you all very much for being early in the morning for a number of you.

<unk>.

So I mean.

We try to deliver.

<unk> consistently on our strategy focusing both on the.

The fundamentals of our business while building the future.

Making our consistent progress both being also constructively dissatisfied on.

A number of things that we need to improve so in some ways a normal life of business with strong and consistent delivery.

As you all see in the field.

This concludes today's conference call. Thank you all for participating you may now disconnect your lines. Thank you.

Okay.

[music].

[music].

[music].

Good morning, everyone, Mexico, just speaking head of Investor Relations. Thank you for being with US. This morning for <unk> 2025, each 100 call I'm here with our CEO and blended fantastic CFO.

Youre going to see who will go through some prepared remarks before taking your questions.

And before we start I draw your attention to the disclaimer on slide 37 of the presentation related to forward looking statements and the definition of financial indicators that will hit us during the presentation.

And with that let me end this over to Antoine. Thank you match yield a warm welcome to you all and thank you for joining youre going on this morning for <unk> 125 results presentation.

We're obviously pleased to share with you another set of strong and consistent results.

These numbers are more than just numbers firstly, they reflect the hard work and the dedication of our diners.

Their passion for execution their drive for innovation and I want to thank all of them for that.

Secondly, the Mark the real start of the next chapter of renew them a chapter that builds on the foundation, we have laid over the past three years and project us firmly into the future.

They are reflective of what we told you a year ago in Amsterdam.

Food market is at a tipping point.

For foods underpinned by science, what we do for a living has never been so relevant and.

And our categories are growth categories.

Which has never been so volatile and uncertain.

We keep performing work transforming.

So let's go into the details and go straight to slide number three.

As highlighted in this morning's press release, we started the year with a strong performance demonstrating consistency in our driving quality growth and reflecting the strength and the residents of our portfolio.

We've carried the momentum and regional from Q1 into Q2.

And this is reflected clearly across all our key metrics.

In H, one we delivered like for like sales growth of plus four 2% a strong result, given the challenging external environment.

Importantly, this growth is well balanced with volume mix contributing plus two 6%.

And price plus one 7%.

This quality growth combined with disciplined execution and operational productivity.

Drove a plus 49 basis points improvement in our recurring operating margin year on year, reaching 13, 2%.

Whereas underlying profit, increasing and a fading impact from portfolio disposal in quarter two.

We are now seeing this translate into recurring earnings per share, which is up plus five 8% versus the same period in 2004.

And obviously, we continue to maintain a solid financial position.

<unk>, one 2 billion in free cash flow.

For the first <unk> half.

This performance is reflective of the strength and the resilience of our business model, but also as I was mentioning earlier, although relevance of our health focused and signs of a strategy.

Fast changing world.

Let's now turn to slide four to discuss some of these growth drivers.

The relevance of our strategy and the resilience of our categories and of our portfolio is translating in the numbers.

Consistent growth in line with our midterm guidance, and importantly quality growth with a sound volume mix component and multiple gross engine many of which grew at high single or double digit rates in each one.

Take for example high protein. This is a category benefiting from growing consumer awareness of the health benefits. It brings.

<unk> or <unk> like fitness and performance to hear to house like weight management and wellness.

Our fast growing ranch with a focus on strong product shipyard.

<unk> unique functional benefits.

Helping to further drive penetration, especially across the Americas, Europe and Japan.

We also continue to rollout our innovation to new geographies.

And we still have all the TV operators shareowner value means much room to grow.

In medical nutrition, we are seeing a heartbeat growth in adults or nutrition.

We will Miss all of its role in patient recovery continues to rise and we are especially encouraged by the performance from our plant based medical nutrition drinks.

Products, not only expand choice and variety for patients, but also enhanced tolerance and adherence both essential to unlocking the full benefits of nutritional support.

In Europe, our coal continues to set the pace in the plant based category.

As the number one brands, we are driving category growth through innovation.

<unk> drinks true value added functional yugos focus on high protein and good health benefits we.

We are transforming our whole form an ingredient led the italics as to the.

True benefit led plant powered nutritional complement to dairy.

All that time, you all strategy of Premier musician keeps delivering reached.

<unk> strong growth in Latin America, China, North Asia, and Oceania, and EMEA and growth as well in volume in Europe.

We have innovated our core range and now rolling out shipyard, our innovation platforms that meet specific nutritional needs and improve the health and development of children.

<unk> is a clear example of our science based consumer centric approach creating value through differentiation.

So a number of things are encouraging, but let's also be clear not everything is quite where we want it to be there is more to do and things that need fixing.

This is why as I told a number of you we are.

The guidance, which we are beta enables us to deliver consistently.

Doing the right thing for the long term fixing what needs to be fixed.

And investing where we need to invest.

There are places, where there's two more to be done, let's turn to slide five.

In daily we are back in the game, but we asked no.

We are still not leading the game everywhere.

We are steadily transforming the portfolio to strengthen our position in functional.

<unk>, we are making solid progress in innovating and simplifying actelion.

Recent launches, including <unk> and fiber volumes in Europe part Steve.

And <unk> in North America.

<unk> built on its trusted benefits in Japan.

Following clinical trials, we are able to claim that at CER as <unk> hundred times more effective than <unk> yogurt. So good progress.

Thats not back yet where we want to be.

And the same applies to a number of the other brands across our portfolio. We are engaged in a very systematic approach to drive science based consumer relevant innovation and shoot failure.

And to progressively move from competing.

To shaping our category.

In plant based as mentioned earlier, we've reignited growth in Europe through a combination of innovation and great execution.

We are spotlighting the functional benefits of plant based nutrition with refreshed packaging and communication that highlights the five essential nutrients enhancing the unique nutritional profile of our drinks and yogurts.

Alcohol is back in full swing.

In North America, while we are seeing early signs of recovery. The job is far from finished we are encouraged by the launch of our kids range due to strong performance of our premiums so delicious coconut offering.

Ongoing efforts to optimize shelf presence.

Making it easier for consumers to shop the fixture.

That said there is more to do.

Both to unlock the full potential of the category.

To strengthen performance.

And alcohol offers now a proven blueprint.

Pat I Shouldnt, we have made significant progress, we've known to opioids, whereas our greater agility and speed and we are proud to be ranked number 10 in Gardner top 25 supply chain.

From <unk> last year.

This is encouraging and shows how much progress we have made.

We are not yet where we should be we have faced this year our share of challenges we are learning from them.

Further investing into capacity capabilities and quality wizardly ambition.

Best in class at selling customers and unlocking the full potential of chapter two offering.

This chapter as obviously started moving now to slide six.

When a year ago, we shared with you chapter two of renew that honor. We told you a few things.

We told you we have become a different company.

Health focused science based execution driven.

We told you the food markets, we're at a tipping points and we thought they were coming our way.

We told you we would double down on the fundamentals of renew.

While further transforming the business, having the ambition to become a value compounded.

This transformation.

<unk> broadening and expanding is starting to take shape.

We're starting to unlock new growth space with breakthrough innovation.

You may have seen the soft launch of our new shelf stable protein shake in the U S. So obviously early days, but the feedback both from consumers and the trade has been very encouraging.

This shows the strength of <unk> brand as high quality and trusted partner expert.

It is also a good indication of our intent to leverage science and capabilities to enter new spaces.

In the same spirit, just a few weeks ago based on proven research, we launched a new danone jewel yogurt drink in Japan, which has a unique blend.

Brining, a positive trend with a natural sweetener to improve metabolism.

We know that metabolism.

Digestive health are top priorities for many people in Japan. So our team has put a lot of care in developing a product distributed both and tastes great taste great. Obviously.

We told you about our intent to further broaden our China footprint.

There is no better example of this than what Youre doing medical nutrition Beach in China.

<unk> two should both patient not only in us veto votes in the communities, where they live between the warmest service.

We now provide enteral nutrition in more and more countries.

We are reaching more people.

In more places at different stages of their life.

These strengths and attributes of our model.

As we continue to grow in strategic channels and reduce our reliance on mass retail.

We also told you about further expanding our geographic footprint, where it makes sense.

Specialized nutrition, we are rolling out our infant formula platforms to new markets, such as Vietnam parts of Southeast Asia, and North Africa.

Whether it changes our core activity formula or more tailored solutions for microbiome recovery. After C section all for iron deficiency.

We are bringing the benefits of Chicago signs to more families around the world to improve health through food.

Moving now to slide seven.

As part of the next chapter.

<unk> also said that we intended to move to the front foods on acquisitions.

Recently, you've seen us just do that.

Always guided by our clear strategic intent and disciplined governance.

Firstly, we are pleased to have completed the acquisition of our catch farms and we warmly welcome they are really great team.

Two of the download family.

Our fast growing medical nutrition business catch farms is are the number one doctor recommended plant based brand in the U S offering a wide range of organic plant based nutrition products for both medical and everyday needs. This is highly this is a highly complementary.

In addition through our North American medical portfolio, which starts to give us real scale.

It strengthens our ability to show more patient consumer and health care professional with a broader high quality offering tailored to diverse health needs.

And as I said, Kate farms Cubs with an amazing team.

We also announced a smaller book.

Digitally significant acquisition.

Kevin share company.

Two decades of pioneering science in biotechs provided the company with a specific boats extreme.

Which has been clinically demonstrated to enforce the good value.

We reduce inflammation and counteract metabolic disorder.

Our unique delivery technology.

And hence as the efficacy of this breakthrough trained as train maximizing the positive impact it has on the goods.

As you heard our Isabel and I said before the science of the microbial and the fields of good health.

Not only are the historical strengths of Denali search you Chi.

<unk> also shield, which offers immense opportunity ranging from consumer goods to obviously medical nutrition.

These acquisitions are a good example of which we want to do.

Drove house through foods anchored into science, they will contribute to enforce our long term value creation model.

While we continue.

To deliver the consistent and resilient performance that you see today and with that I hand over to yoga yoga and over to you. Thank you Angela and good morning to all of you.

Let's get into the details of our financial results for this first semester 2025, starting with slide number nine.

We are pleased to report another quarter of quality growth with like for like sales up plus four 1%.

Importantly, a significant plus three 2% contribution came from volume mix driven.

Driven by multiple growth engines across regions and categories, while price was a positive at plus 1%.

While in business every quarter upfront of different challenges and opportunities we are happy with the consistency of execution by our teams.

<unk> has been delivering now for many quarters quality growth.

Two plus size range.

To better assess the solid underlying dynamics I propose we look at the performance by region and category on slide number 10.

In the second quarter, all regions contributed positively to our performance, reflecting as Antoine just highlighted the strength of our health focused portfolio is it.

Dive into regional details shortly but let me mention here already two standouts.

It continues to build momentum is very solid growth led by volumes and mix.

<unk> that posted an exceptional performance firing on all cylinders in the second quarter.

Regional performance is also reflected in our categories, especially in specialized nutrition posted stellar plus eight 7% net sales growth.

Driven by Optum is broad based market share gains as well as by sustained growth demands.

Medical nutrition category across all regions.

Next two specialized nutrition, our ETP business delivered a solid plus 3% like for like growth led by volume mix growth was driven across geographies by functional dairy high protein in particular.

<unk> posted another quarter of strong competitive growth.

And lastly, what us delivered a soft quarter as you can see from the numbers here. This reflects.

Next a mixed situation, we experienced adverse weather conditions in a number of emerging markets, including Mexico, and Indonesia, while on the other side <unk> in China, and <unk> continued to perform well.

Stepping back and looking at all the numbers on this slide we can confidently say that we deliver not only another quarter of quality growth.

<unk> also demonstrated again do resilience of our portfolio.

Let me now move on to the traditional sales, which on slide 11.

Our strong like for like performance of plus four 1% was as mentioned earlier driven by volume mix of as much as plus three 2% with price contributing another plus 1%.

This like for like growth was offset in the second quarter by currency headwinds.

Appreciation against major currencies, including the U S dollar and the Chinese renminbi led to a minus four 9% impact on sales.

As you have noticed we no longer have a negative scope effect.

It passed disposes fully annualized from Q2 onwards overall reported sales therefore remained stable year on year at around $6 9 billion euros.

Let's now take a closer look at the performance of each region, starting with Europe.

Slide 12.

Europe continued its step by step improvement and delivered like for like sales growth of plus two 2% yes.

We are pretty happy with this growth, which is notably driven by sustained progress in edp.

With positive volume mix for the seventh consecutive quarter.

This progress was fuelled by functional product in particular, our Hypothenar range, but also the successful rollout of our innovations like scale and key field.

In the plant based segment VIP brand continued to deliver strong growth gaining market share, but it's more functional beverages and yogurt office.

Specialized nutrition saw mid single digit growth. This quarter growth was led by medical nutrition with all major brands, including <unk>, <unk> and <unk> performing well while.

While in infant milk formula up to mute posted solid growth and market share gains across the region.

In water despite uneven weather conditions across markets, we delivered resilient growth led by solid performance in the premium segment.

But the entire first semester, you will posted like for like growth of plus one plus two 1% entirely driven by volume mix and recurring operating margin of 11, 4% broadly stable versus last year.

And with that let's turn to North America on slide number 13.

North America posted like for like sales growth of plus two 3% driven by a plus one 8% increase in volume mix and a positive <unk>, 5% price effect.

In Edp high protein yogurt continued to lead the growth with our market, leading iqos whole platform delivering strong double digit performance in a very dynamic segments.

Coffee Creamers are progressively recovering following service challenges during this first semester.

Market share started to improve in the course of Q2 as we are progressively rebuilding the distribution of the international delight brand.

The team first focus to bring our <unk> back to the chef with the complete <unk> portfolio following over the coming months.

Specialized nutrition, particularly medical nutrition delivered another very strong quarter.

We are in parallel as Antoine mentioned integrating that Kate <unk> company.

Which when combined with our existing business and even stronger springboard for our future growth trajectory in this region.

Overall this brings our estimate that sales growth to plus 3%.

<unk> contribution from volume mix and price.

Recurring operating margin continue to expand up 33.

Basis points year on year, driven by solid gross margin expansion.

Moving on to slide 14.

China, North Asia and Oceania.

The region delivered an exceptional performance in the second quarter with like for like sales increasing by as much as plus five 4% entirely driven by volume mix.

Importantly, this is truly broad based growth as all categories are contributing to it.

We continue to see strong demand for our specialized nutrition product in China growing at double digit pace.

This is notably fueled by our <unk> platform in the IMS segment, which continues to drive market share gains.

The overall IMF category is benefiting from growth in the stage, one segment, which is as expected expanding into stage two.

In parallel the medical nutrition category is also experiencing strong demand for both infants and adults preparing the future we are doubling down on and expanding our presence inside and outside the hospital network.

On the beverage side MISO continue to perform very well achieving again strong volume led growth benefiting from a dynamic segment of functional beverages.

In Japan, our two functional oil cost and activity are keeping up their strong momentum as Antoine mentioned, we keep innovating in this highly sophisticated market, where metabolism and gut health are top priorities for our consumers.

The entire semester the region posted plus 11, 3% growth driven by a plus 11, 9% increase in volume mix.

Operating margin reached 37% up two bps.

Bps, reflecting notably positive Kathy Lee.

I suggest you move onto discuss Latin America on the next slide slide number 15.

In a volatile and challenging environment in Latin America demonstrated resilience with a solid plus two 9% like for like growth. This growth was entirely led by plus five 9% increase in price with volumes down around minus three.

In Edp, we delivered robust growth across the region with all segments performing well.

If over those past couple of months, particularly active on the innovation front with the successful rollout of our high protein ranges and our dream.

<unk>.

Yes, it's a very pleased with the continued very strong performance of specialized nutrition in both medical nutrition, but also in IMF, where uptime yield sustained strong momentum in both Brazil and Argentina.

In waters, our business in Mexico was unfortunately impacted by adverse weather conditions with an exceptionally cold and rainy season.

Looking at the entire first semester diligent posted like for like growth of plus <unk>, 7% recurring operating margin reached plus four 3% with a strong increase versus year ago.

Well for the second semester, which is tax free to run with higher levels of profit and margin.

This region.

Finally, let's have a look at our Africa Middle East and Asia region on Slide number 16.

In EMEA, we posted a solid plus four 1% like for like sales growth in the second quarter with plus one 4% volume mix and plus two 7% price specialized nutrition delivered another strong quarter, particularly in southeast Asia, India and Middle East.

<unk> was also a key growth engine and we continue to expand the brand to new geographies, such as Vietnam and Nigeria.

Our later rolling out of our multi brand island Biotics platform across the region to support the fight against Iron deficiency anemia.

In Edp dairy in north as well as in West Africa maintained its positive momentum driving solid growth alongside the business model that continues to improve its profitability.

For the entire first semester the region posted like for like growth of three 7% driven by a plus three 5% increase in price recurring operating margin reached 10, 1%.

72 bps decrease mainly due to unfavorable currency changes.

I suggest we concluded a zone a review and we move on to the margin bridge for the first semester on slide number 17.

Our recurring operating margin stood at 13, 2% in the period with improvement of plus 49 bps compared to last year.

We are happy with the fact that our margin from operations continues to expand in this first semester by 139 bps.

As a result of our quality growth continued high levels of cost productivity as well as moderate material inflation.

As we move into the next chapter of venue and a non-GAAP starting to shift the investment magnitude and nature. We are moving sequentially towards an investment focus on category leadership and are progressively moderating the level of investment is largely discussed earlier this year.

<unk> Bridge is in this first semester of 2025, reflecting again the way in which we intend to create value for the short and long term.

It shows the power of the Darden business model based on quality growth leverage and very importantly, consistency and discipline.

Let's move now onto the EPS bridge and freakish on slide number 18.

EPS grew well ahead of sales at plus five 8% in the system is the main contributor to this growth was a strong operational performance, which we just went through at plus six 2%.

The team was at the same moment able to reduce the impact of our financial results, adding positively by <unk>, 7%. Thanks to a great management of our debt position.

H one 2025 was the last semester of negative impact from the disposal of horizon organic with it.

Minus two 1% effect, where it takes associates Emma notice had a minus one 1% impact over the period.

Finally, the negative currency impact on our EPS was more than offset by a positive impact from Ias 29.

It's very solid step up in our earnings as a key lever to deliver our cash ambition. We are matching in this first semester of last year's record of free cash flow generation at one 2 billion euros.

This concludes the financial review for this first semester and I want to extend a big Thank you to the teams who made those results possible.

Levering on all dimensions of sustainable value creation.

Which leads me to conclude with the financial guidance on slide 19.

As we shared with you today, we are very pleased with the strong performance delivered in the first half of the year looking forward, we are confident and well on track to achieve our full year 2025 guidance of plus three to plus 5% like for like growth and recurring operating income growing faster than sales in line with our midterm ambition.

And with that lengthy analytic to Antoine conclude.

Conclusion, thank you.

Before we open the floor to questions I would like to leave you with a few final thoughts and let's move to slide 21.

The name of the game for US is one of performing consistently.

We're also projecting ourselves in the future capturing emerging opportunities in what is a fast changing world.

Our first half results are good illustration of what we want to achieve with this new chapter offering you that on.

On the one hand.

Striving to consistently deliver quality results.

<unk> on our core business with discipline.

Fixing what needs to be fixed while leveraging what works well.

And obviously remaining constructively dissatisfied.

Context that is not getting any easier.

On the other end keep transforming through innovation and acquisition.

Focusing on high growth value added segments segments, where science and health related benefits makes the difference.

The next chapter of renew is underway, but it told me the various thoughts.

Find it quite exciting Joanne we hope that.

You do so as well and with that let me hand back to Matthew to start the Q&A question Michal over to you.

Thank you our plans. So we are going to open the Q&A and the first question. We have today comes from.

Denmark.

UBS.

Thank you very much and good morning.

Matilda.

Two questions from me. Please the first one on the Edp in North America.

It's been another robust print in Q2, despite the normalization in pricing, which I guess was expected versus Q1.

But my question is above and beyond protein.

What have been the key growth engines in the quarter for Edp North America.

And I guess are you satisfied with your market share development in yogurt for the region because the scanner data it seems to signal some contraction since the start of the year.

And then looking ahead under two current Underperformers.

Coffee Creamers and plant based beverages.

When would you expect these two businesses to contribute again positively to like for like sales growth.

And then my second question on specialized nutrition.

C E O.

Second consecutive quarter of like for like sales growth in double digit territory.

Maybe could you help us unpack this strong like for like it seems to have been very much led by volume mix, but could you tell us if it was more mix more premium amortization, rather than volume and penetration gains.

In the quarter, what do you think category growth was for specialized nutrition I mean, just so we can get a feel for your level of outperformance and how sustainable that the double digit like for like sales growth is coming.

Coming quarters, Thank you very much.

Good morning, Thanks for the thanks for the questions I mean, let me start.

With North America.

I mean, you said it opportunities is going from strength to strength actually the growth of the market is or is really impressive so actually beating the expectation of.

Of everyone. So are we prioritize.

Delivery of high value high growing segment and in some cases by the way it comes at the expense of other parts of our.

All of our business.

We are super happy with the early signs of progress of our <unk>.

We see a couple of things are moving in the Reits are a dive shown so.

Too early to I mean, too early to say about it.

The first indications are moving in the right direction.

And we are lining up.

Next move we choose are something we have been talking for a while which is revolving are down the most business. So very very strong.

Our proteins early.

Encouraging signs on.

On <unk>.

Not material now so not yet.

Yet translating into shares are and are in the second half we will come back on.

On the animals.

So going in the right direction not fixed yet.

You need to be better off from a shelf standpoint, we have a unique portfolio in the U S that covers all offering.

And.

For the moment only protein is.

Diving, we are not leveraging the full months of our portfolio.

So with that I'll ask two good job to.

To the job to be done.

Our creamers and plant based Creamers.

You can sell it I think things are starting to move in the right direction.

We're seeing our share starting to move.

Move back in the right direction, our core volumes all back in our distribution.

The next step is.

Obviously over the coming months are to bring the rise of the <unk>.

Ranch in our food distribution, so moving in the right direction.

We will get sequentially better.

Not.

Yes.

Well warranted.

Sure.

Our plant based I mean, I said it in my presentation, we're super excited with alcohol in Europe, which is now in full swing, which is winning shares.

Which is giving us a blueprint.

We are starting and we will in the second half of the year start deploying some of the learnings of alcohol.

The U S.

Trust me I wish we would be our faster our bridgeport titled why.

That risk.

<unk> spent the last couple of those in the U S. A we spend quite.

Quite a bit on the U S last week.

We should do more faster but.

Thats.

Life of our business, so altogether a solid print for.

The U S.

But also.

Level of construction, such as section more to be done in.

The markets are.

<unk> remains an exciting market.

Our specialized nutrition in China will do address.

With yoga.

Long story short.

Markets are getting better.

Given what we saw with.

Growth rates, which is obviously translating as babies are aging.

Into the next stage of.

<unk>.

But more importantly.

Our business model is going from strength to strength and it's a combination of both.

A number of things number one innovation.

Essence is keeps working extremely well, we keep going we keep winning share.

Our company on the base of two things on the basis of a very strong science and great branding and on the basis of very very disciplined.

Execution in the trade that we told you many times about the quality of our business model and the way.

We grew at market.

I mean.

Strong hand on our inventories.

It keeps growing quarter after quarter.

And it's.

It delivers exceptional results.

Quarter, yes.

Good morning, Jim Young speaking.

Fair to say that at the beginning of the year, we saw the IMF category.

<unk> in Green on stage. One this is as we expected now progressively extending into stage two when you add together our stage one and stage two you speak about two third of the category.

Overall the China.

And so there are reasons to believe that close to the second half of the year the category.

Performing.

At the same moment you have seen that the Chinese government is increasing incentives for getting the birth rates are better for the long term and obviously, we hope that this is creating a reside.

<unk> is doing very well, we also very happy with medical nutrition in China. It is important to say on both sides of pizza, which is performing.

Performing extremely well, especially in allergy treatment, but also on the date of BR Cushing to get modules in hospital and outside the hospital.

Thank you very much.

So we're not going to take the next question.

Kevin Elliott.

Sure.

Great. Thank you very much for the question.

I wanted to start with Europe.

You had another quarter of very strong volume growth in Q2.

Yes, and obviously called out the progress in dairy and specialty functional dairy.

My question is as you look at the data that you have.

From a consumer perspective do you see the same drivers of this acceleration in Europe.

We've previously seen in the U S driving functional area over the course of the past two or three years or is it something different going on in Europe today.

And then my second question is on reinvestment.

You showed in the in the margin bridge yoga and another 90 basis points reinvestment in H one.

170 basis points in 2020 for 100 basis points in 2023.

It's obviously great to see you guys reinvesting and we can obviously to see the benefits of that given the strong <unk>.

Got it right that youll, saying.

My question is I think there has been an expectation amongst investors.

Pace of that reinvestment might moderate.

Which were obviously not really seeing yet NIH. One so just hoping to get you to discuss current investment levels, the pace of reinvestment and how happy with where you are today.

Hey, good morning, Palomar will do a direct with.

Youre going on that are you trying to get.

So you should look at Europe actually.

What we see is a combination of a number of different things.

Do you see.

I mean, what's redo, which shoes healthful foods underpinned by Science, Israel EMEA order books in Europe.

You see the atrophy is the success of <unk> you see that.

S J.

In.

Europe.

So you see that across.

In all Youll see that always alcohol.

Five ingredients.

On the breakfast moment also the way we claim.

The benefits of Hauck <unk> <unk>.

In addition, so that's just one dimension in that Wombat unchanged version at all to what you're seeing.

Other parts of the World I think the second thing that we are.

Sure.

We're seeing in Europe.

Is something we told you about which is a step by step.

The poster.

Improvements or execution or sharpening of our.

Portfolio.

Take our France, which is a good example.

Step by step pasta.

We see the performance going up in the country, which is notably difficult I can say that as a as a transfer.

And you see it moving on all fronts, you take something that is not.

Our science based products in our portfolio, although debits.

Which is very iconic brand in France.

We have not tracked super good advertising.

Cool things from an execution standpoint, and you see there.

Thoughts of.

Reaction when it comes to the market doesn't mean deaths.

Everything is fixed yet we still are plenty of opportunities are in Europe.

Rejections and I'll touch on to be very exciting and places large our U K.

Starting in France, not sold yet.

I'll speak more to be done so.

Consumer trends are more or less the same in everything we do around science is making sense.

Execution is sharpening its not yet at the end of.

The G&A.

And we asked you constructively dissatisfied.

And then it comes to the financials I agree with them and the level of reinvestment. We are actually confirming what we said a good year ago. When we were together in Amsterdam.

We're going to continue to reinvest into our business because it is part of our business model actually and as we said in Amsterdam progressively changes and the magnitude of the investment and the nature of the nature of the investment because if you go from catching up to really invest into category leadership and as you can see.

We are seeing very good returns because those investors will be investment to make sure that we are growing this quality.

Semester by semester and quarter by quarter looking forward as we said.

There is reason to believe that level of investment model of it.

But we will continue to invest especially into science into our brands and into technology. So no change vis vis what we largely discussed at every level.

Okay. Thank you.

Thank you Kevin.

Now going to take the next question.

Ackerman backlog.

Yes. Thank you good morning, Antoine <unk> Barclays.

The first question is.

Just maybe diving a bit more into U S. ETP. Thank you for the comments can you maybe talk to us a little bit more about coffee creamers.

How much extra capacity are you adding from Jacksonville.

Are you doing in terms of the trade weighted distribution point, so I'm, just trying to understand a little bit more.

A lot of market share you're rebuilding.

We're still seeing kind of this kind of <unk> being very weak are you able to maybe kind of give us a bit more color in terms of what your plans are for international delights going forward and into the into the back half.

And then related to that in use CDP the high protein smoothly in the U S. It looks like a very big market opportunity and the product looks good clean label, but how much of that market do you think you can get.

Given its dominated at the moment by Bell ring, Coke and Pepsi and what's the distribution that youll seeing as it already nationwide in the U S or is it going to be progressively rolled out.

In the second half of the year I'm trying to understand the kind of U S.

Edp outlook I suppose for the second half given the second quarter.

Coffee creamers dropping and should we see some kind of sell in for the high protein smoothies in the U S. In the second half.

That's the first one and then the second one is a bit more not results, but you say one of the big opportunities to improve and you're constructively dissatisfied as on the supply chain.

You want to raise the bar in the supply chain excellence.

I Wonder whether you can maybe talk a little bit about that and what the crime and the team are doing a where you see the gaps. These best in class and how you think that that can help sort of resource allocation medium term. Thank you.

Thank you. Thank you so listen on the.

U S GDP two things.

On the coffee Creamers.

Plenty of capacity coming online.

Jacksonville, So no new capacity already mentioned when it comes to our trophy <unk>. The name of the game for US is really about execution.

As I was saying we are back with the core of the portfolio I think we have good levels of our distribution.

<unk> push.

Different states or local.

Types of distributors it was by and large.

The core of the business is back into distribution do next stage, which will still take.

A few months will be to bring the rest.

<unk>.

Portfolio into.

<unk> food distribution.

And you see that hold in the Nielsen numbers are same starts going into our into the watch.

And so we should step by step by step again, our competitiveness on our international yacht.

We are also working on or what is the next thing I shouldn't because you've seen also that mix too.

<unk> traditional a fight between cautionary to an international or the large.

<unk>, new offering coming to the market.

Market so.

I mean more to come in the second half of the year because as consumers are changing.

We have I think opportunities that we can achieve.

When it comes to our auto shakes.

It was <unk>.

It is a soft launch.

We started our <unk> are very limited distribution.

Costco as a as a test.

The early results are.

Extremely encouraging to.

To the point that the test has been significantly enlarged.

Our food distribution.

Yet, we all should weeks into the launch so I wouldn't.

Most all yet Budd.

First signs are encouraging.

<unk>.

And as Ben and Lodge at the request.

Our customers. So early signs are very good.

Encouraging.

We will see.

In the next quarter, how big and how fast, but yet again.

A good a good start on something where Youll cross brand is should relevance where the product group.

On a new segment, which is very busy guy to 10 billion segments in the.

In the U S.

There are plenty of things.

We can.

Sure.

Anybody has any reason why you don't go largest sooner.

You've got good result was why didn't you just.

Holding you back from.

Actually going nationwide more quickly.

I mean, we will increase but you know what.

I want to prove it.

Before I do bid pipeline and our discover that although it is not what attributes so I'd rather do with.

<unk> and spend a few more weeks in our scaling it up rather than going fully and then when it's fueling so it's more a matter of discipline anything us first signs yet again super encouraging.

Okay.

In supply chain.

Yeah on supply chain.

I mean, there are two things two different all everyone.

Youre seeing whats happened.

You've seen what's happened in the U S on printers.

Which is in some ways a known goal so kind of be kind of be happy about that so there is still work in.

Keeping our should seeing a number of things and the number.

Number of sites, making sure that the quality of service, making sure that.

The operational discipline.

Keeps progressing step after step after step we have made some are some.

Grupo guys orbits.

<unk> progress.

To be made.

The other thing and then I'll hand over to Archie.

It's why we are we keep raising the floor.

We also raised the ceiling.

Okay.

So we are engaged.

Hey.

No noise.

The transformation of our planning cycles.

<unk> Central these strategies are enabled by our which we have now step by step moving in.

In a number of our regions.

Big transformation that we started a year ago.

It.

He is now taking effect, so it's really raising the floor and raising the ceiling at the same time and maybe just to add one element one good morning, the last three years and the way we have been working hard to catch up versus the industry average in operations and is what the team has fantastic we delivered.

You can see actually in our Cogs productivity last three years well ahead of the average of the industry. No. We are not going to stop here. The ambition is to get to world class level of management for supply chain and therefore, our ambition is to continue posting also superior level of productivity you may have seen what we're doing.

In Poland, which is effectively which is really state of the yards from a technology standpoint, and demonstrating its investing into technology and digital has strong returns in supply chain and is what you can expect us to continue doing.

Thank you.

Thank you.

The next question.

Thank you.

Thank you very much Ms. Jill and thank you for giving me this opportunity. My first question you have.

Any change in leadership in the U S.

First of all.

Is this impairing rules for Varian is now becoming a constant one or are you looking for someone.

Tom You mentioned that you would like to accelerate in certain.

In North America.

More than over a year would have been talking about.

Improvement in turnaround.

Sure.

Yes, Kevin the performance Nissan there on the scanner data, we're seeing quite weak performance. So far you already talked about our program.

Yes.

<unk> being implemented in North America, what has been their obstacles on the week.

My question number one and my question number two you have damningly performance, even some formula in specialized nutrition, not only <unk>, but also in other market my.

My understanding if you did not have MSA since launch there what has been driving the more recent acceleration in the market are those market share gains is it <unk>.

<unk> innovation.

Outside of China. Thank you so much.

Hey morning, Victoria.

<unk>.

The change of leadership.

Repeat what I said well the first thing is we have a very good I can tell you ticked down.

In North America.

In Canada the R V.

Very very strong and our people that we put in place.

Over a year ago.

To make sure that whatever happened.

We have a strong team in place I said Thats all.

The only closing charge for now and are contributing to the arbitration charge for now.

We have something to announce.

We'll announce it.

For now it's not necessarily a forever.

One on <unk>.

I told you maybe Chris titled was the speed at which we are moving.

I think the good news is we now have a proven model of alcohol.

And we have a model, which is our base about.

Capturing the.

Moments of the breakfast to the start of the day.

Which is about our product <unk>.

Sure.

Our ingredients, which is by the way about outstanding advertising.

I am very strong innovation.

Our.

You cannot just take it and put it as is in the U S. Because our consumer is different because a large part of the business is in.

Electric joy to the aisle.

In the U S. While it's mainly ambulance in Europe. So there is or there isn't.

Built off time for.

Adaptation, that's one dimension.

But there was another dimension to be honest, which is a little not invented here.

To which we have put in and so you should start seeing more movement faster.

On your last question, which is our <unk>.

Drill result, youre going on that.

Timing is really firing on all cylinders and issue our entrust obviously.

You mentioned in China is doing well both owned by the way insurance and all.

Medical.

But if you look at 10 million across the across the world.

The mix of very good disciplined execution.

All of us and traditional utility section.

At the beginning of the G&A.

Pension into new jewelry options I mean, what we are doing.

It is pretty cool, what's we are doing alternative <unk>, but on the other brands.

Iron deficiency.

It's really cool so we have a number of engine on.

Rich.

<unk>.

Consistently so it's a mix so.

Great execution.

Innovation and.

Maybe just just will continue to do is one element I mean up to.

Being the largest single largest brand of the <unk> portfolio is growing.

High single digit double digit in all the region with the same recipe, which is superior formula based on Super strong science and insights from the consumer standpoint.

And so I think we feel really fantastic asset in our hands next to medical nutrition, which by definition is a strong growth segments, so more to come.

Thank you.

Thank you Vishal and now going to take the next and last question on <unk>.

You can go ahead.

<unk>.

Thank you. Thank you for that and good morning, everyone.

My first question is on the margin progression gross margin wise.

140 bps and yoga and you mentioned, the reinvestment, which was high it might you need to I just want to understand whether there was any specific benefit.

<unk> and understanding as well.

Just wondering this mentioned high level would that lower in the second half.

Yes.

I understand a bit.

Moving to the year.

And then my second question.

And when you mentioned that you have been moving on the front foot on acquisition.

You detailed this morning.

Are you satisfied with the progress you're making down do you think that.

How is the pipeline looking and whether that would be.

Paul <unk> you are looking at.

Thank you Cindy and good morning, let me take the second and Youre going to take a youre going to take the first well first I'm Super happy with the last two acquisitions.

They are really really accelerating actually I was I was having dinner last night.

Brett <unk>, who is the leader of Kate <unk>.

Sure.

What we tend to give out.

It's amazing.

And it's holding it's humming.

Thoughts of what we can do same story Kevin.

Kevin Shaw.

Absolutely.

Small component.

But the technology that is in the Super Bowl.

So.

On strategy.

Sean shooting options.

Thats all.

The relevant ones we don't.

Sub debt.

So.

The pipeline is a healthy pipeline.

Quite broad when it comes to or through jug options.

So a number of exciting things.

I mean, where they land when they will land I mean as you know acquisition is not a precise.

As hires.

It is very clear.

Okay.

Discipline.

Management of our acquisition pipeline.

Our aggressive but disciplined it's back to what we said a number of times, which is in test to makes sense almost strategic standpoint, it has to make sense from a financial standpoint, and both at the same time so.

More to come.

Working on a number of things when will it come.

Hard to say because acquisition is not something that <unk> Suisse truckload.

Hey, good morning Simeon.

On profit margins as you say, we are pretty happy with the first I missed the first semester, where we benefited from strong organic growth, including a very strong mix effect as you could see from from China in specialized nutrition, but also from.

The last positive scope effect from the horizon organic disposal, which ended in Q1.

We leveraged as you said the very solid gross margin expansion to continue reinvesting into our business and.

Actually.

And what it means for the second semester actually the key variables for the second semester, which changed little compared to the first one quality growth moderate inflation in your model of inflation will continue to come mostly from agricultural ingredients.

Persist.

We may see a slight increase from targets, depending on where things will land.

And we believe that we do.

Be able to continue delivering solid productivity. So in that sense. We are confident that we can continue to expand our profit margins. Despite an expected stronger headwind for currency assuming that the current CEO rates. The Nols there to date and as you know our mantra.

If you see additional savings will be gone.

As we invest in order to make sure that we deliver future strong growth.

Thank you.

Thank you very much so with that we close the Q&A session.

Sure.

Well again, thank you all very much for being early in the morning for a number of U S.

Yes.

We said I mean.

We try to deliver.

Consistently on our strategy focusing both on the.

The fundamentals of our business while building the future.

Making our consistent progress both being also constructively dissatisfied on the number of things.

We need to improve so in some ways a normal life of business with strong and consistent delivery.

You all saw in the field.