Q1 2026 General Mills Inc Earnings Call - Pre-Recorded

September 17, 2025

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

Jeff Siemon: For our Fiscal 2026 first quarter earnings. Later this morning, we will hold a separate live question-and-answer session on today's results, which you can hear via webcast on our Investor Relations website. Joining me for this morning's presentation are Jeff Harmening, our Chairman and CEO, and Kofi Bruce, our CFO. Before I hand things over to them, let me first touch on a few housekeeping items. First, on our website, you will find our press release that posted this morning, along with a copy of the presentation and a transcript of these remarks. Please note that today's remarks include forward-looking statements that are based on management's current views and assumptions. The second slide in today's presentation lists several factors that could cause our future results to be different than our current estimates.

Jeff Siemon: For our fiscal 2026 first quarter earnings, later this morning, we will hold a separate live question and answer session on today's results, which you can hear via webcast on our Investor Relations website. Joining me for this morning's presentation are Jeff Harmening, our Chairman and CEO, and Kofi Bruce, our CFO. Before I hand things over to them, let me first touch on a few housekeeping items. First, on our website, you will find our press release that posted this morning, along with a copy of the presentation and a transcript of these remarks. Please note that today's remarks include forward-looking statements that are based on management's current views and assumptions. The second slide in today's presentation lists several factors that could cause our future results to be different than our current estimates.

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

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

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

Note that today's remarks include forward looking statements that are based on management's current views and assumptions.

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

Additionally, I am pleased to announce that general mills will be hosting an investor day event at our World headquarters in Minneapolis, Minnesota on Tuesday October 14th.

Jeff Siemon: Additionally, I'm pleased to announce that General Mills will be hosting an Investor Day event at our world headquarters in Minneapolis, Minnesota, on Tuesday, 14 October. We will webcast a presentation and Q&A session with senior management, highlighting our strategic priorities and long-term growth plans focused on driving remarkability across our global brands, and we hope you will join us online for that session. In-person attendees will have the opportunity to engage with a broad set of business and functional leaders, experience our product news and innovation, get a firsthand view of our digital capabilities, and tour our global R&D center. For more information, please email our Investor Relations team at investor.relations@generalmills.com. With that, I'll turn it over to Jeff.

Additionally, I'm pleased to announce that General Mills will be hosting an Investor Day event at our world headquarters in Minneapolis, Minnesota, on Tuesday, 14 October. We will webcast a presentation and Q&A session with senior management, highlighting our strategic priorities and long-term growth plans focused on driving remarkability across our global brands, and we hope you will join us online for that session. In-person attendees will have the opportunity to engage with a broad set of business and functional leaders, experience our product news and innovation, get a firsthand view of our digital capabilities, and tour our global R&D center. For more information, please email our Investor Relations team at investor.relations@generalmills.com. With that, I'll turn it over to Jeff.

Jeff Siemon: Additionally, I'm pleased to announce that General Mills will be hosting an Investor Day event at our World Headquarters in Minneapolis, Minnesota, on Tuesday, October 14. We will webcast a presentation and Q&A session with senior management, highlighting our strategic priorities and long-term growth plans focused on driving remarkability across our global brands. We hope you will join us online for that session. In-person attendees will have the opportunity to engage with a broad set of business and functional leaders, experience our product news and innovation, get a firsthand view of our digital capabilities, and tour our global R&D center. For more information, please email our Investor Relations team at investor.relations@generalmills.com. With that, I'll turn it over to Jeff.

We will webcast the presentation and Q&A session with senior management, highlighting our strategic priorities and long term growth plans focused on driving remarkably across our global brands and.

And we hope you will join us online for that session.

In person attendees will have the opportunity to engage with a broad set of business and functional leaders experience our product news and innovation.

A firsthand view of our digital capabilities and tour, our global R&D Center.

For more information please email our Investor relations team at Investor Relations at General Mills Dot Com.

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

Thank you, Jeff and Hello to everyone. Let me start with today's key messages.

Jeff Harmening: Thank you, Jeff, and hello to everyone. Let me start with today's key messages. The most important job we have in fiscal 2026 is restoring volume-driven organic sales growth. To achieve this, we're leaning into what makes our brands remarkable for consumers. That means investing to strengthen our value, product news, innovation, advertising, and visibility in store and online. Price remains an important tool, especially in today's environment, but it is not sufficient to drive lasting growth. Sustainable, profitable growth comes from making sure that all elements of remarkability (product, packaging, messaging, omnichannel execution, and value) truly resonate with consumers. We've already seen proof points that give us confidence that this is the right path. In the second half of fiscal 2025, we invested to bring consumers more value in targeted businesses like Pillsbury, Totino's, and Fruit Snacks, which enabled our product news, advertising, and in-store execution to break through more meaningfully.

Jeff Harmening: Thank you, Jeff, and hello to everyone. Let me start with today's key messages. The most important job we have in fiscal 2026 is restoring volume-driven organic sales growth. To achieve this, we're leaning into what makes our brands remarkable for consumers. That means investing to strengthen our value, product news, innovation, advertising, and visibility in store and online. Price remains an important tool, especially in today's environment, but it is not sufficient to drive lasting growth. Sustainable, profitable growth comes from making sure that all elements of remarkability—product, packaging, messaging, omnichannel execution, and value—truly resonate with consumers. We've already seen proof points that give us confidence that this is the right path. In the second half of fiscal 2025, we invested to bring consumers more value in targeted businesses like Pillsbury, Totino’s, and Fruit Snacks, which enabled our product news, advertising, and in-store execution to break through more meaningfully.

The most important job that we have in fiscal 2026 is restoring volume driven organic sales growth.

To achieve this we are leaning in to what makes our brand's remarkable for consumers that means investing to strengthen our value product news innovation advertising and visibility in store and online.

<unk> remains an important tool, especially in today's environment, but it is not sufficient to drive lasting growth sustainable profitable growth comes from making sure that all elements of our marketability product packaging messaging omnichannel execution and value truly resonate with consumers.

Price remains an important tool, especially in today's environment, but it is not sufficient to drive lasting growth. Sustainable, profitable growth comes from making sure that all elements of remarkability (product, packaging, messaging, omnichannel execution, and value) truly resonate with consumers. We've already seen proof points that give us confidence that this is the right path. In the second half of fiscal 2025, we invested to bring consumers more value in targeted businesses like Pillsbury, Totino's, and Fruit Snacks, which enabled our product news, advertising, and in-store execution to break through more meaningfully.

Already seeing proof points that give us confidence that this is the right path in the second half of fiscal 2025, we invested to bring consumers more value and targeted businesses like Pillsbury totino's and fruit snacks, which enabled our product news advertising and in store execution to breakthrough more meaningfully.

And the early results were encouraging with noticeable improvement in pounds and volume share for those businesses.

Jeff Harmening: The early results were encouraging, with noticeable improvement in pounds and volume share for those businesses. We've expanded our investment in remarkability in fiscal 2026, and through the first quarter, our top-line performance was in line with our expectations. We expected that the combination of higher investments and the impact of the North American yogurt divestitures would pressure our reported sales results this year. We've been closely watching our Nielsen-measured in-market performance to measure success. Thus far, we've been pleased with the results, with improved pound trends and increased volume share across most of our top 10 categories. Looking forward, we're focused on driving further improvement behind continued execution of our price investments, new advertising campaigns, stronger in-store events, and exciting innovation like Blue Buffalo’s new Love Made Fresh line of fresh pet food, which started shipping this week.

Jeff Harmening: And the early results were encouraging, with noticeable improvement in pounds and volume share for those businesses. We've expanded our investment in Remarkability in Fiscal 2026, and through Q1, our top-line performance was in line with our expectations. We expected that the combination of higher investments and the impact of the North American yogurt divestitures would pressure our reported sales results this year. So we've been closely watching our Nielsen-measured in-market performance to measure success. Thus far, we've been pleased with the results, with improved pound trends and increased volume share across most of our top 10 categories. Looking forward, we're focused on driving further improvement behind continued execution of our price investments, new advertising campaigns, stronger in-store events, and exciting innovation like Blue Buffalo's new Love Made Fresh line of fresh pet food, which started shipping this week.

And the early results were encouraging, with noticeable improvement in pounds and volume share for those businesses. We've expanded our investment in Remarkability in Fiscal 2026, and through Q1, our top-line performance was in line with our expectations. We expected that the combination of higher investments and the impact of the North American yogurt divestitures would pressure our reported sales results this year. So we've been closely watching our Nielsen-measured in-market performance to measure success. Thus far, we've been pleased with the results, with improved pound trends and increased volume share across most of our top 10 categories. Looking forward, we're focused on driving further improvement behind continued execution of our price investments, new advertising campaigns, stronger in-store events, and exciting innovation like Blue Buffalo's new Love Made Fresh line of fresh pet food, which started shipping this week.

We've expanded our investment in <unk> ability in fiscal 2026 and through the first quarter. Our topline performance was in line with our expectations. We expected that the combination of higher investments and the impact of the North American yogurt divestitures would pressure our reported sales results this year.

So we have been closely watching our Nielsen measured in market performance to measure success. Thus far we've been pleased with the results with improved pound trends and increased volume share across most of our top 10 categories.

Looking forward, we're focused on driving further improvement behind continued execution of our price investments new advertising campaigns stronger in store events and exciting innovation like Blue Buffalo's, New Love made fresh line of fresh pet food, which started shipping this week.

With early momentum continued disciplined focus on execution and confidence in our strategies, we reaffirmed our full year fiscal 2006 guidance. This morning.

Jeff Harmening: With early momentum and continued discipline focused on execution and confidence in our strategies, we reaffirmed our full-year fiscal 2026 guidance this morning. Our first quarter results are summarized on slide five. We improved our competitiveness, including holding or growing pound share in eight of our top 10 US categories and driving continued strong share performance in international and foodservice channels. Organic volume was down 1%, and organic net sales were down 3%, which were in line with our expectations and included the impact of price investments and trade-facing headwinds, as well as shipment timing headwinds in our North America pet segment. Our adjusted operating profit and adjusted EPS results were both down double digits, though they finished a bit ahead of our expectations. The profit and EPS declines in the quarter were driven largely by an eight-point reduction in reported volume, including the impact of the yogurt divestitures.

With early momentum and continued discipline focused on execution and confidence in our strategies, we reaffirmed our full-year fiscal 2026 guidance this morning. Our first quarter results are summarized on slide five. We improved our competitiveness, including holding or growing pound share in eight of our top 10 US categories and driving continued strong share performance in international and foodservice channels. Organic volume was down 1%, and organic net sales were down 3%, which were in line with our expectations and included the impact of price investments and trade-facing headwinds, as well as shipment timing headwinds in our North America pet segment. Our adjusted operating profit and adjusted EPS results were both down double digits, though they finished a bit ahead of our expectations. The profit and EPS declines in the quarter were driven largely by an eight-point reduction in reported volume, including the impact of the yogurt divestitures.

Jeff Harmening: With early momentum, a continued disciplined focus on execution, and confidence in our strategies, we reaffirmed our full-year fiscal 2026 guidance this morning. Our first quarter results are summarized on slide five. We improved our competitiveness, including holding or growing pound share in eight of our top 10 U.S. categories and driving continued strong share performance in international and food service channels. Organic volume was down 1%, and organic net sales were down 3%, which were in line with our expectations and included the impact of price investments and trade phasing headwinds, as well as shipment timing headwinds in our North America pet segment. Our adjusted operating profit and adjusted EPS results were both down double digits, though they finished a bit ahead of our expectations.

Our first quarter results are summarized on slide five we improved our competitiveness, including holding or growing pound share in eight of our top 10 U S categories and driving continued strong share performance in international and foodservice channels.

Organic volume was down 1% and organic net sales were down 3%, which were in line with our expectations and included the impact of price investments and trade facing headwinds as well as shipment timing headwinds in our North America segment.

Our adjusted operating profit and adjusted EPS results were both down double digits, though they finished a bit ahead of our expectations.

Profit and EPS declines in the quarter were driven largely by an eight point reduction in reported volume, including the impact of the yogurt divestitures.

Jeff Harmening: The profit and EPS declines in the quarter were driven largely by an eight-point reduction in reported volume, including the impact of the yogurt divestitures. We continue to manage through an evolving operating environment in fiscal 2026, with cautious consumer behavior connected to economic uncertainty, global conflicts, and changing food policy regulations. We continue to see consumers seeking value and prioritize their spending on key benefits like protein, bold flavors, and feelings of nostalgia for brands they love. In pet, we expect pet parents to continue to look for more elevated and humanized pet offerings while maintaining a focus on value. Against this consumer backdrop, we are executing against three key priorities for fiscal 2026. First, we are working to return North America retail to volume growth by investing in remarkable experiences to strengthen pound share and household penetration for our brands.

We continue to manage through an evolving operating environment in fiscal 2026 with cautious consumer behavior connected to economic uncertainty global conflicts and changing food policy regulations, we continue to see consumers seeking value and prioritize their spending on key benefits like protein bold flavors and feelings.

Jeff Harmening: We continue to manage through an evolving operating environment in Fiscal 2026, with cautious consumer behavior connected to economic uncertainty, global conflicts, and changing food policy regulations. We continue to see consumers seeking value and prioritize their spending on key benefits like protein, bold flavors, and feelings of nostalgia from brands they love. And in pet, we expect pet parents to continue to look for more elevated and humanized pet offerings while maintaining a focus on value. Against this consumer backdrop, we are executing against three key priorities for Fiscal 2026. First, we are working to return North America retail to volume growth by investing in remarkable experiences that strengthen pound share and household penetration for our brands.

We continue to manage through an evolving operating environment in Fiscal 2026, with cautious consumer behavior connected to economic uncertainty, global conflicts, and changing food policy regulations. We continue to see consumers seeking value and prioritize their spending on key benefits like protein, bold flavors, and feelings of nostalgia from brands they love. And in pet, we expect pet parents to continue to look for more elevated and humanized pet offerings while maintaining a focus on value. Against this consumer backdrop, we are executing against three key priorities for Fiscal 2026. First, we are working to return North America retail to volume growth by investing in remarkable experiences that strengthen pound share and household penetration for our brands.

Mr Al different brands, they love and in Pet, we expect pet parents to continue to look for more elevated in humanized pet offerings, while maintaining a focus on value.

Against this consumer backdrop, we are executing against three key priorities for fiscal 'twenty six.

First we are working to return North America retail to volume growth by investing in a remarkable experiences to strengthen pound share and household penetration for our brands.

Second we will accelerate our North America pet growth, including improving our core blue Buffalo businesses, and driving new opportunities with our love made fresh launch our recently acquired <unk> business and the rollout of Egerton Cooper Super premium dog food in the U S.

Jeff Harmening: Second, we will accelerate our North America pet growth, including improving our core Blue Buffalo businesses and driving new opportunities with our Love Made Fresh launch, our recently acquired Tiki Cat business, and the rollout of Edgar and Cooper Super Premium Dog Food in the U.S. Third, to help fund these investments, we'll drive efficiencies to reinvest in growth. This means continuing to deliver best-in-class holistic margin management, or productivity and transforming how we work to free up our teams to focus on growth. As I mentioned earlier, our plans to reinvigorate growth for our brands are guided by our remarkable experience framework. By evaluating how our brands perform across five key dimensions: product, packaging, brand communication, omnichannel execution, and value, we can clearly see where we are meeting consumer expectations and where we need to raise our game to be more competitive.

Jeff Harmening: Second, we will accelerate our North America pet growth, including improving our core Blue Buffalo businesses and driving new opportunities with our Love Made Fresh launch, our recently acquired Tiki Cat business, and the rollout of Edgard & Cooper Super Premium Dog Food in the US. And third, to help fund these investments, we'll drive efficiencies to reinvest in growth. This means continuing to deliver best-in-class Holistic Margin Management, or productivity, and transforming how we work to free up our teams to focus on growth. As I mentioned earlier, our plans to reinvigorate growth for our brands are guided by our remarkable experience framework. By evaluating how our brands perform across five key dimensions: product, packaging, brand communication, omnichannel execution, and value, we can clearly see where we are meeting consumer expectations and where we need to raise our game to be more competitive.

Second, we will accelerate our North America pet growth, including improving our core Blue Buffalo businesses and driving new opportunities with our Love Made Fresh launch, our recently acquired Tiki Cat business, and the rollout of Edgard & Cooper Super Premium Dog Food in the US. And third, to help fund these investments, we'll drive efficiencies to reinvest in growth. This means continuing to deliver best-in-class Holistic Margin Management, or productivity, and transforming how we work to free up our teams to focus on growth. As I mentioned earlier, our plans to reinvigorate growth for our brands are guided by our remarkable experience framework. By evaluating how our brands perform across five key dimensions: product, packaging, brand communication, omnichannel execution, and value, we can clearly see where we are meeting consumer expectations and where we need to raise our game to be more competitive.

And third to help fund these investments will drive efficiencies to reinvest in growth. This means continuing to deliver best in class holistic margin management or HMA productivity and transforming how we work to free up our teams to focus on growth.

As I mentioned earlier, our plan is to reinvigorate growth for our brands are guided by a remarkable experience framework by evaluating how our brands perform across five key dimensions product packaging brand communication omnichannel execution and value.

We can clearly see where we are meeting consumer expectations, and where we need to raise our game to be more competitive.

This framework is the lens through which we will continue to make brand investment decisions and ensuring each business has a defined path to stronger remark ability and greater impact for consumers. Let me show you, how we use <unk> ability to deliver results in Q1.

Jeff Harmening: This framework is the lens through which we will continue to make brand investment decisions, ensuring each business has a defined path to stronger remarkability and greater impact for consumers. Let me show you how we use remarkability to deliver results in Q1. In North America retail, our team is focused on a multi-year journey to improve the remarkability of our brands, and we have robust plans in place to strengthen all elements of the framework. We saw positive results from these plans in the first quarter, with eight of our top 10 U.S. categories holding or growing pound share, building on improved momentum we delivered in Q4 of fiscal 2025. We saw our pound trends improve sequentially from Q4 to Q1 across seven of our top 10 U.S. categories, and we grew household penetration for our U.S. portfolio for the first time in three years.

Jeff Harmening: This framework is the lens through which we will continue to make brand investment decisions, ensuring each business has a defined path to stronger remarkability and greater impact for consumers. Let me show you how we use remarkability to deliver results in Q1. In North America retail, our team is focused on a multi-year journey to improve the remarkability of our brands, and we have robust plans in place to strengthen all elements of the framework. We saw positive results from these plans in the first quarter, with eight of our top 10 US categories holding or growing pound share, building on improved momentum we delivered in Q4 of fiscal 2025. We saw our pound trends improve sequentially from Q4 to Q1 across seven of our top 10 US categories, and we grew household penetration for our US portfolio for the first time in three years.

This framework is the lens through which we will continue to make brand investment decisions, ensuring each business has a defined path to stronger remarkability and greater impact for consumers. Let me show you how we use remarkability to deliver results in Q1. In North America retail, our team is focused on a multi-year journey to improve the remarkability of our brands, and we have robust plans in place to strengthen all elements of the framework. We saw positive results from these plans in the first quarter, with eight of our top 10 US categories holding or growing pound share, building on improved momentum we delivered in Q4 of fiscal 2025. We saw our pound trends improve sequentially from Q4 to Q1 across seven of our top 10 US categories, and we grew household penetration for our US portfolio for the first time in three years.

In North America retail our team is focused on a multiyear journey to improve the remark ability of our brands and we have robust plans in place to strengthen all elements of the framework. We saw positive results from these plans in the first quarter with eight of our top 10 U S categories, holding or growing pounds here building on improved momentum we delivered in Q4.

A fiscal 'twenty five.

We saw our pound trends improved sequentially from Q4 to Q1 across seven of our top 10 U S categories and we grew household penetration for our U S portfolio for the first time in three years.

Our dollar performance lagged our pound performance in Q1, as we expected due to investments to address key price cliffs and gaps.

Jeff Harmening: Our dollar performance lagged our pound performance in Q1, as we expected, due to investments to address key price cliffs and gaps. We expect this to continue through fiscal 2026, though we think the gap between pounds and dollars will begin to narrow in the second half as we start to lap the initial price investments we made a year ago. Our progress in Q1 in North America retail was driven by our investments to improve brand remarkability across each of the five elements of our framework. On product superiority, our Q1 innovation lineup was a great success, with customer acceptance, distribution, and volume all tracking ahead of our expectations for new items like Cheerios Protein, Progresso Pitmaster soups, and Mott's fruit-filled bars. We continue to expect our total net sales from innovation in NAR will be up 25% this year.

Our dollar performance lagged our pound performance in Q1, as we expected, due to investments to address key price cliffs and gaps. We expect this to continue through fiscal 2026, though we think the gap between pounds and dollars will begin to narrow in the second half as we start to lap the initial price investments we made a year ago. Our progress in Q1 in North America retail was driven by our investments to improve brand remarkability across each of the five elements of our framework. On product superiority, our Q1 innovation lineup was a great success, with customer acceptance, distribution, and volume all tracking ahead of our expectations for new items like Cheerios Protein, Progresso Pitmaster soups, and Mott's fruit-filled bars. We continue to expect our total net sales from innovation in NAR will be up 25% this year.

Jeff Harmening: Our dollar performance lagged our pound performance in Q1, as we expected, due to investments to address key price cliffs and gaps. We expect this to continue through fiscal 2026, though we think the gap between pounds and dollars will begin to narrow in the second half as we start to lap the initial price investments we made a year ago. Our progress in Q1 in North America retail was driven by our investments to improve brand remarkability across each of the five elements of our framework. On product superiority, our Q1 innovation lineup was a great success, with customer acceptance, distribution, and volume all tracking ahead of our expectation for new items like Cheerios Protein, Progresso Pitmaster Soups, and Mott's Fruit-Filled Bars. We continue to expect our total net sales from innovation and NAR will be up 25% this year.

We expect this to continue through fiscal 'twenty six that we think the gap between pounds and dollars will begin to narrow in the second half as we start to lap the initial price investments, we made a year ago.

Our progress in Q1 in North America retail was driven by our investments to improve brand remark ability across each of the five elements of our framework.

On the product superiority, our Q1 innovation lineup was a great success with customer acceptance distribution in volume all tracking ahead of our expectation for new items like Cheerios protein Progresso Pitmaster soups and motts fulfilled bars, we continue to expect our total net sales from innovation NR.

We'll be up 25% this year.

Jeff Harmening: On remarkable package design, we leveraged our price pack architecture toolkit to deliver new sizes and package formats to meet key price points for consumers in Q1, helping drive Nielsen-measured pounds up high single digits on salty snacks and up low single digits on fruit snacks. On brand communication, we launched new social-first media campaigns on some of our biggest brands, including Cheerios, Pillsbury, and our Fruit Snacks franchise. We continue to see improved ROIs on our media investment driven by advanced data-driven marketing capabilities. On omnichannel execution, we leveraged our broad portfolio to execute a fully omnichannel back-to-school event themed "Free Snacks for Every Backpack," where we delivered significant value to consumers during a stressful back-to-school shopping season. We were able to gain differential retailer engagement on this event, with strong increases in display, distribution, and merchandising lift.

On remarkable package design, we leveraged our price pack architecture toolkit to deliver new sizes and package formats to meet key price points for consumers in Q1, helping drive Nielsen-measured pounds up high single digits on salty snacks and up low single digits on fruit snacks. On brand communication, we launched new social-first media campaigns on some of our biggest brands, including Cheerios, Pillsbury, and our Fruit Snacks franchise. We continue to see improved ROIs on our media investment driven by advanced data-driven marketing capabilities. On omnichannel execution, we leveraged our broad portfolio to execute a fully omnichannel back-to-school event themed "Free Snacks for Every Backpack," where we delivered significant value to consumers during a stressful back-to-school shopping season. We were able to gain differential retailer engagement on this event, with strong increases in display, distribution, and merchandising lift.

Jeff Harmening: On remarkable package design, we leveraged our Price Pack Architecture toolkit to deliver new sizes and package formats to meet key price points for consumers in Q1, helping drive Nielsen-measured pounds up high single digits on salty snacks and up low single digits on fruit snacks. On brand communication, we launched new social-first media campaigns on some of our biggest brands, including Cheerios, Pillsbury, and our Fruit Snacks franchise, and we continue to see improved ROIs on our media investment driven by advanced data-driven marketing capabilities. On omnichannel execution, we leveraged our broad portfolio to execute a fully omnichannel back-to-school event themed "Free Snacks for Every Backpack," where we delivered significant value to consumers during a stressful back-to-school shopping season. We were able to gain differential retailer engagement on this event, with strong increases in display, distribution, and merchandising left.

On brand communication, and we launched new social first media campaigns on some of our biggest brands, including Cheerios Pillsbury and our fruit snacks franchise and we continue to see improved rois on our media investment driven by advanced data driven marketing capabilities.

On Omnichannel execution, we leverage our broad portfolio to execute a fully omnichannel back to school event themed free snacks for every backpack, where we delivered significant value to consumers during a stressful back to school shopping season.

We're able to gain differential retailer engagement on this event with strong increases in display distribution and merchandising left <unk>.

Finally, we expanded our work to deliver compelling value to consumers by investing to address key price cliffs and gaps as we said at the start of the year. Our goal is to make price value adjustments and roughly two thirds of our in our portfolio in fiscal 'twenty six we got a bit more than half of that reflected in the market in Q1 with elasticity is in.

Jeff Harmening: Finally, we expanded our work to deliver compelling value to consumers by investing to address key price cliffs and gaps. As we said at the start of the year, our goal is to make price value adjustments in roughly two-thirds of our NAR portfolio in fiscal 2026. We got a bit more than half of that reflected in the market in Q1, with elasticities in line with our expectations. We expect to complete the remainder of that work in Q2, and we'll track closely and adjust where necessary to ensure we continue to see ROIs in line with our expectations. We continue to see more and more evidence that when we deliver greater remarkability for consumers across all elements of the framework, our business grows. We saw this play out in Q1 on Cinnamon Toast Crunch, the number two brand in the US cereal category.

Finally, we expanded our work to deliver compelling value to consumers by investing to address key price cliffs and gaps. As we said at the start of the year, our goal is to make price value adjustments in roughly two-thirds of our NAR portfolio in fiscal 2026. We got a bit more than half of that reflected in the market in Q1, with elasticities in line with our expectations. We expect to complete the remainder of that work in Q2, and we'll track closely and adjust where necessary to ensure we continue to see ROIs in line with our expectations. We continue to see more and more evidence that when we deliver greater remarkability for consumers across all elements of the framework, our business grows. We saw this play out in Q1 on Cinnamon Toast Crunch, the number two brand in the US cereal category.

Line with our expectations, we expect to complete the remainder of that work in Q2 and will track closely and adjust where necessary to ensure we continue to see rois in line with our expectations.

We continue to see more and more evidence that when we deliver greater and marketability for consumers across all of them all elements of the framework. Our business grows we saw this play out in Q1 on cinnamon toast Crunch. The number two brand in the U S cereal category we.

Emphasized the great taste of Senate desk on are truly remarkable product, adding a new flavor variety highlighted value through multiple pack sizes and amplified it all with a truly remarkable new social led must into dust campaign that generated a 500% increase in social engagement for the brand.

Jeff Harmening: We emphasized the great taste of Cinnadust on our truly remarkable product, adding a new flavor variety, highlighted value through multiple pack sizes, and amplified it all with a truly remarkable new social-led Mutt Cinnadust campaign that generated a 500% increase in social engagement for the brand. By leaning into all aspects of remarkability, we were able to drive growth in pounds, pound share, and dollar share for Cinnamon Toast Crunch in Q1. As we transition to Q2, we have strong plans in place that address all aspects of remarkability to further strengthen our offering for consumers. We'll bring more compelling product news, highlighting our Bakes Up Bigger renovation on Pillsbury refrigerated dough. We'll introduce more remarkable innovation, like our Totino's Ultimate Pizza, and we'll expand availability for protein innovation like Annie's Supermac, which is already turning in the top third of the category at major customers.

We emphasized the great taste of Cinnadust on our truly remarkable product, adding a new flavor variety, highlighted value through multiple pack sizes, and amplified it all with a truly remarkable new social-led Mutt Cinnadust campaign that generated a 500% increase in social engagement for the brand. By leaning into all aspects of remarkability, we were able to drive growth in pounds, pound share, and dollar share for Cinnamon Toast Crunch in Q1. As we transition to Q2, we have strong plans in place that address all aspects of remarkability to further strengthen our offering for consumers. We'll bring more compelling product news, highlighting our Bakes Up Bigger renovation on Pillsbury refrigerated dough. We'll introduce more remarkable innovation, like our Totino's Ultimate Pizza, and we'll expand availability for protein innovation like Annie's Supermac, which is already turning in the top third of the category at major customers.

Jeff Harmening: We emphasized the great taste of Cinnadust on our truly remarkable product, adding a new flavor variety, highlighted value through multiple pack sizes, and amplified it all with a truly remarkable new social-led Must Cinnadust campaign that generated a 500% increase in social engagement for the brand. By leaning into all aspects of remarkability, we were able to drive growth in pounds, pound share, and dollar share for Cinnamon Toast Crunch in Q1. As we transition to Q2, we have strong plans in place that address all aspects of remarkability to further strengthen our offering for consumers. We'll bring more compelling product news, highlighting our Bake Up Bigger renovation on Pillsbury refrigerated dough. We'll introduce more remarkable innovation, like our Totino’s Ultimate Pizza, and we'll expand availability for protein innovation like Annie’s Super Mac, which is already turning in the top third of the category at major customers.

By leaning into all aspects of our marketability.

We're able to drive growth in pounds pounds share and dollar share for cinnamon toast crunch in Q1.

As we've transitioned to Q2, we have strong plans in place that address all aspects of our market related to further strengthen our offering for consumers.

We'll bring more compelling product news, highlighting our bakes a bigger renovation on pillsbury refrigerated dough.

It is more remarkable innovation like our Totino is ultimate pizza and will expand availability for protein innovation like any supermac, which is already turning in the top third of the category of major customers.

We will deliver value to consumers, who are remarkable package design, featuring new brand partnership with Wednesday, and Wicked expanding price pack architecture formats and increased seasonal offerings.

Jeff Harmening: We'll deliver value to consumers through remarkable package design, featuring a new brand partnership with Wednesday and Wicked, expanding Price Pack Architecture formats, and increased seasonal offerings. We'll strengthen our brand communication with increased investment behind new campaigns across many of our global brands, including Old El Paso, Cheerios, Pillsbury, and Nature Valley. We'll elevate our omnichannel execution with another strong game-day event planned in Q2, including partnerships with NFL All-Star wide receivers Justin Jefferson, Ja'Marr Chase, and Amon-Ra St. Brown, who will be featured on Big G cereals. We have terrific plans for baking and soup seasons, leveraging consumer-relevant innovation, renovation, and in-store visibility. We'll continue to improve our value for consumers by completing our work to address key price cliffs and gaps across our NAR portfolio. Stepping back, I'm pleased with the progress we made in driving greater remarkability across NAR in Q1.

Jeff Harmening: We'll deliver value to consumers through remarkable package design, featuring new brand partnership with Wednesday and Wicked, expanding Price Pack Architecture formats, and increased seasonal offerings. We'll strengthen our brand communication with increased investment behind new campaigns across many of our global brands, including Old El Paso, Cheerios, Pillsbury, and Nature Valley. We'll elevate our omnichannel execution with another strong game day event planned in Q2, including partnerships with NFL All-Star wide receivers Justin Jefferson, Ja'Marr Chase, and Amon-Ra St. Brown, who will be featured on Big G Cereals. We have terrific plans for baking and soup seasons, leveraging consumer-relevant innovation, renovation, and in-store visibility. We'll continue to improve our value for consumers by completing our work to address key price cliffs and gaps across our NAR portfolio. Stepping back, I'm pleased with the progress we made in driving greater remarkability across the NAR in Q1.

We'll deliver value to consumers through remarkable package design, featuring new brand partnership with Wednesday and Wicked, expanding Price Pack Architecture formats, and increased seasonal offerings. We'll strengthen our brand communication with increased investment behind new campaigns across many of our global brands, including Old El Paso, Cheerios, Pillsbury, and Nature Valley. We'll elevate our omnichannel execution with another strong game day event planned in Q2, including partnerships with NFL All-Star wide receivers Justin Jefferson, Ja'Marr Chase, and Amon-Ra St. Brown, who will be featured on Big G Cereals. We have terrific plans for baking and soup seasons, leveraging consumer-relevant innovation, renovation, and in-store visibility. We'll continue to improve our value for consumers by completing our work to address key price cliffs and gaps across our NAR portfolio. Stepping back, I'm pleased with the progress we made in driving greater remarkability across the NAR in Q1.

We will strengthen our brand communication with increased investment behind new campaigns across many of our global brands, including old El Paso, Cheerios, Pillsbury and nature Valley.

Elevator omnichannel execution with another strong game day event planned in Q2, including partnerships with NFL All star wide receivers, just in Jefferson, Jim marches, and Amman Raw St. Brown, who will be featured on big G. Cereals, and we have terrific plans for baking in soup season, leveraging consumer relevant innovation renovation.

And in store visibility and.

And we'll continue to improve our value for consumers by completing our work to address key price cliffs and gaps across our <unk> portfolio.

Stepping back I am pleased with the progress we've made in driving greater remark ability across nor in Q1 I am confident in our plans for Q2 and I think we're on the right track to returning this business to volume growth in fiscal 'twenty six.

Jeff Harmening: I'm confident in our plans for Q2, and I think we're on the right track to returning this business to volume growth in fiscal 2026. Now turning to North America pet, our plan for fiscal 2026 is to improve growth on our core Blue Buffalo business and accelerate into faster-growing segments of the category, like fresh feeding. Our performance on the core was mixed in Q1, with a slowdown in dog feeding offset by improvements in treats, while our cat feeding business continued to lead our growth. For the quarter, we held or grew pound share across dog feeding, cat feeding, and treating. On dog feeding, our main challenge continues to be our Wilderness subline, which slowed sequentially from Q4 to Q1.

I'm confident in our plans for Q2, and I think we're on the right track to returning this business to volume growth in fiscal 2026. Now turning to North America pet, our plan for fiscal 2026 is to improve growth on our core Blue Buffalo business and accelerate into faster-growing segments of the category, like fresh feeding. Our performance on the core was mixed in Q1, with a slowdown in dog feeding offset by improvements in treats, while our cat feeding business continued to lead our growth. For the quarter, we held or grew pound share across dog feeding, cat feeding, and treating. On dog feeding, our main challenge continues to be our Wilderness subline, which slowed sequentially from Q4 to Q1.

Now turning to North America Pet our plan for fiscal 'twenty six is to improve growth on our core blue Buffalo business and accelerate into faster growing segments of the category like fresh feeding.

Our performance on the core was mixed in Q1 with a slowdown in dog feeding offset by improvements in treats while our cat feeding business continued to lead our growth for the quarter, we held or grew pound share across dog feeding cat feeding and treating.

Dog feeding our main challenge continues to be our wilderness sub line, which slowed sequentially from Q4 to Q1 to address this we're doing work on all elements of our <unk> ability to ensure we are delivering the right combination of product news brand communication in store execution and value that will help a wilderness better resonate with pet.

Jeff Harmening: To address this, we're doing work on all elements of remarkability to ensure we're delivering the right combination of product news, brand communication, in-store execution, and value that will help Wilderness better resonate with pet parents. At the same time, we're continuing to support Life Protection Formula to maintain a strong track record of growth. On treats, we drove encouraging improvement in Q1 behind stronger in-store visibility and selected price investments to improve value for pet parents, resulting in mid-single-digit pound growth and stable dollars across all channels. As we move to Q2, we expect to continue this momentum behind our new Nudges Game Day campaign and seasonal treat offerings.

To address this, we're doing work on all elements of remarkability to ensure we're delivering the right combination of product news, brand communication, in-store execution, and value that will help Wilderness better resonate with pet parents. At the same time, we're continuing to support Life Protection Formula to maintain a strong track record of growth. On treats, we drove encouraging improvement in Q1 behind stronger in-store visibility and selected price investments to improve value for pet parents, resulting in mid-single-digit pound growth and stable dollars across all channels. As we move to Q2, we expect to continue this momentum behind our new Nudges Game Day campaign and seasonal treat offerings.

Jeff Harmening: To address this, we're doing work on all elements of remarkability to ensure we're delivering the right combination of product news, brand communication, in-store execution, and value that will help Wilderness better resonate with pet parents. At the same time, we're continuing to support Life Protection Formula to maintain its strong track record of growth. On treats, we drove encouraging improvement in Q1 behind stronger in-store visibility and selective price investments to improve value for pet parents, resulting in mid-single-digit pound growth and stable dollars across all channels. As we move to Q2, we expect to continue this momentum behind our new Nudges game-day campaign and seasonal treat offerings.

Parents at the same time, we're continuing to support life protection Formula to maintain its strong track record of growth.

On trees, we drove encouraging improvement in Q1 behind stronger in store visibility and selective price investments to improve value for pet parents, resulting in mid single digit pound growth and stable dollars across all channels.

As we move to Q2, we expect to continue this momentum behind our new Nudges game day campaign and seasonal treat offerings.

And we continue to deliver great results for our core Blue Buffalo cap feeding business with retail sales for our tasteful sub line up mid single digits behind increased support for our head to head taste preference advertising and new trial pack formats to recruit new pet parents into the brands.

Jeff Harmening: We continue to deliver great results for our core Blue Buffalo cat feeding business, with retail sales for our Tastefuls subline up mid-single digits behind increased support for our head-to-head taste preference advertising and new trial pack formats to recruit new pet parents into the brand. On our pet accelerators, we're making good progress and continue to see exciting opportunities to build a stronger presence in high-growth segments of the pet food category. Just this week, we started shipping Love Made Fresh, Blue Buffalo’s first full line of refrigerated fresh pet food for dogs. We're launching nationally with a broad array of roll and tub offerings in a variety of proteins and breed sizes. We've had strong retailer acceptance, and we expect to be in roughly 5,000 coolers by the end of our second quarter.

Jeff Harmening: We continue to deliver great results for our core Blue Buffalo cat feeding business, with retail sales for our Tastefuls subline up mid-single digits behind increased support for our head-to-head taste preference advertising and new trial pack formats to recruit new pet parents into the brand. On our pet accelerators, we're making good progress and continue to see exciting opportunities to build a stronger presence in high-growth segments of the pet food category. Just this week, we started shipping Love Made Fresh, Blue Buffalo's first full line of refrigerated fresh pet food for dogs. We're launching nationally with a broad array of roll and tub offerings in a variety of proteins and breed sizes. We've had strong retailer acceptance, and we expect to be in roughly 5,000 coolers by the end of our Q2.

We continue to deliver great results for our core Blue Buffalo cat feeding business, with retail sales for our Tastefuls subline up mid-single digits behind increased support for our head-to-head taste preference advertising and new trial pack formats to recruit new pet parents into the brand. On our pet accelerators, we're making good progress and continue to see exciting opportunities to build a stronger presence in high-growth segments of the pet food category. Just this week, we started shipping Love Made Fresh, Blue Buffalo's first full line of refrigerated fresh pet food for dogs. We're launching nationally with a broad array of roll and tub offerings in a variety of proteins and breed sizes. We've had strong retailer acceptance, and we expect to be in roughly 5,000 coolers by the end of our Q2.

On our pet accelerators, we're making good progress and continue to see exciting opportunities to build a stronger presence in high growth segments of the pet food category.

Just this week, we started shipping love made fresh Blue Buffalo's first full line of refrigerated fresh pet food for dogs were launching nationally with a broad array of role and tub offerings and a variety of proteins and breed sizes. We've had strong retailer acceptance and we expect to be in roughly 5000 coolers by the end of our second quarter.

We will support the launch with a national media campaign Rolling out this quarter geared towards driving awareness and trial and highlighting our ingredient superiority and are a compelling kimball plus fresh positioning.

Jeff Harmening: We'll support the launch with a national media campaign rolling out this quarter, geared toward driving awareness and trial and highlighting our ingredient superiority and our compelling kibble plus fresh positioning. We're taking a thoughtful approach to our growth plans for Love Made Fresh to maximize our odds of success. We expect this business will start small and build over time as we grow distribution, drive trial, and eventually generate repeat and increased turns at the shelf. For those interested in learning more, be sure to attend our Investor Day event next month. In addition to Love Made Fresh, we have two more accelerators that are adding growth for our North America pet segment this year. We launched Edgar and Cooper in the U.S. earlier this summer through an exclusive partnership with PetSmart, and we're already seeing a great response from pet parents after just a few months in market.

Jeff Harmening: We'll support the launch with a national media campaign rolling out this quarter, geared toward driving awareness and trial, and highlighting our ingredient superiority and our compelling Kibble Plus Fresh positioning. We're taking a thoughtful approach to our growth plans for Love Made Fresh to maximize our odds of success. We expect this business will start small and build over time as we grow distribution, drive trial, and eventually generate repeat and increased turns at the shelf. For those interested in learning more, be sure to attend our Investor Day event next month. In addition to Love Made Fresh, we have two more accelerators that are adding growth for our North America pet segment this year. We launched Edgard & Cooper in the US earlier this summer through an exclusive partnership with PetSmart, and we're already seeing a great response from pet parents after just a few months in market.

We'll support the launch with a national media campaign rolling out this quarter, geared toward driving awareness and trial, and highlighting our ingredient superiority and our compelling Kibble Plus Fresh positioning. We're taking a thoughtful approach to our growth plans for Love Made Fresh to maximize our odds of success. We expect this business will start small and build over time as we grow distribution, drive trial, and eventually generate repeat and increased turns at the shelf. For those interested in learning more, be sure to attend our Investor Day event next month. In addition to Love Made Fresh, we have two more accelerators that are adding growth for our North America pet segment this year. We launched Edgard & Cooper in the US earlier this summer through an exclusive partnership with PetSmart, and we're already seeing a great response from pet parents after just a few months in market.

We're taking a thoughtful approach to our growth plans for love made fresh to maximize our odds of success. We expect this business will start small and build overtime as we grow distribution drive trial, and eventually generate repeat and increase turns at the shelf for those interested in learning more be sure to attend our Investor day event.

Next month.

In addition to love made fresh we have two more accelerators, there adding growth for our North America segment. This year, we launched Edgar Lee Cooper in the U S. Earlier this summer through an exclusive partnership with Petsmart and we're already seeing a great response from pet parents. After just a few months end market.

We acquired the Super premium European brand, a little more than a year ago and we're excited for the opportunity to bring this line of high quality products to more pet parents across 1000 stores in the U S.

Jeff Harmening: We acquired the Super Premium European brand a little more than a year ago, and we're excited for the opportunity to bring this line of high-quality products to more pet parents across 1,000 stores in the US. Finally, our recent acquisition of the North America White Bridge business is further adding to our pet growth. The Tiki Cat brand is the jewel of this portfolio, and it is driving double-digit retail sales growth behind remarkable innovation and distribution expansion. We're working to accelerate that growth through innovation, like our recent launch of Tiki Cat Solutions. Turning to our North America Foodservice segment, our focus in Fiscal 2026 is driving growth by leading in breakfast through nutrition and by expanding our frozen baked goods portfolio. I'm pleased to share we're off to a great start on both.

We acquired the Super Premium European brand a little more than a year ago, and we're excited for the opportunity to bring this line of high-quality products to more pet parents across 1,000 stores in the US. Finally, our recent acquisition of the North America White Bridge business is further adding to our pet growth. The Tiki Cat brand is the jewel of this portfolio, and it is driving double-digit retail sales growth behind remarkable innovation and distribution expansion. We're working to accelerate that growth through innovation, like our recent launch of Tiki Cat Solutions. Turning to our North America Foodservice segment, our focus in Fiscal 2026 is driving growth by leading in breakfast through nutrition and by expanding our frozen baked goods portfolio. I'm pleased to share we're off to a great start on both.

Jeff Harmening: We acquired the super premium European brand a little more than a year ago, and we're excited for the opportunity to bring this line of high-quality products to more pet parents across 1,000 stores in the U.S. Finally, our recent acquisition of the North America Whitebridge business is further adding to our pet growth. The Tiki Cat brand is the jewel of this portfolio, and it is driving double-digit retail sales growth behind remarkable innovation and distribution expansion. We're working to accelerate that growth through innovation, like our recent launch of Tiki Cat Solutions. Turning to our North America food service segment, our focus in fiscal 2026 is driving growth by leading in breakfast through nutrition and by expanding our frozen baked goods portfolio. I'm pleased to share we're off to a great start on both.

Finally, our recent acquisition of the North America White Bridge business is further adding to our pet growth.

The <unk> brand is a jewel of this portfolio and it is driving double digit retail sales growth behind remarkable innovation and distribution expansion.

Working to accelerate that growth through innovation like our recent launch of Tiki care solutions.

Turning to our North America Foodservice segment, our focus in fiscal 'twenty six is driving growth by leading in breakfast through nutrition and by expanding our frozen baked goods portfolio I'm pleased this year, we're off to a great start on both on breakfast our cereal market share was up another full point in Q1 led by continued strong growth.

Jeff Harmening: On breakfast, our cereal market share was up another full point in Q1, led by continued strong growth in K through 12 schools. We're driving our strong share momentum with our regulation-ready portfolio, including our commitment to removing certified colors by the summer of 2026, which is ahead of USDA regulations. We're also investing behind growth initiatives like frozen breakfast, offering a broad array of solutions that meet school nutrition guidelines and minimize challenges for K through 12 operators. On our frozen baked goods portfolio, we're driving share growth with relevant innovation like our new blondie bars. Our continued efforts to reinvest in the remarkability of our Biscuits platform have resulted in almost three points of share growth fiscal year to date. Turning to our international business, we're pleased with the growth we delivered in the first quarter across our global brands.

On breakfast, our cereal market share was up another full point in Q1, led by continued strong growth in K through 12 schools. We're driving our strong share momentum with our regulation-ready portfolio, including our commitment to removing certified colors by the summer of 2026, which is ahead of USDA regulations. We're also investing behind growth initiatives like frozen breakfast, offering a broad array of solutions that meet school nutrition guidelines and minimize challenges for K through 12 operators. On our frozen baked goods portfolio, we're driving share growth with relevant innovation like our new blondie bars. Our continued efforts to reinvest in the remarkability of our Biscuits platform have resulted in almost three points of share growth fiscal year to date. Turning to our international business, we're pleased with the growth we delivered in the first quarter across our global brands.

Jeff Harmening: On breakfast, our cereal market share was up another full point in Q1, led by continued strong growth in K through 12 schools. We're driving our strong share momentum with our regulation-ready portfolio, including our commitment to removing certified colors by the summer of 2026, which is ahead of USDA regulations. We're also investing behind growth initiatives like frozen breakfast, offering a broad array of solutions that meet school nutrition guidelines and minimize challenges for K through 12 operators. On our frozen baked goods portfolio, we're driving share growth with relevant innovation, like our new Blondie bars. Our continued efforts to reinvest in the remarkability of our biscuits platform have resulted in almost three points of share growth fiscal year to date. Turning to our international business, we're pleased with the growth we delivered in the first quarter across our global brands.

In K through 12 schools, where.

We're driving our strong share momentum with our regulation ready portfolio, including our commitment to removing certified colors by the summer of 2026, which is ahead of USDA regulations.

We're also investing behind growth initiatives like frozen breakfast offering a broad array of solutions that meet school nutrition guidelines.

And minimize challenges for K through 12 operators.

On our frozen baked goods portfolio, we're driving share growth with relevant innovation like our new Blondie bars, our continued efforts to reinvest in their marketability of our biscuits platform have resulted in almost three points of share growth fiscal year to date.

Turning to our international business, we're pleased with the growth we delivered in the first quarter across our global brands outside.

Outside of shops retail sales for Haagen Dazs were up double digits, driven by increased distribution of our core flavors as well as strong performance on our renovated European stick bar line.

Jeff Harmening: Outside of shops, retail sales for Häagen-Dazs were up double digits, driven by increased distribution of our core flavors, as well as strong performance on our renovated European stick bar line. In China, a relaunch of our stick bar business helped drive high single-digit growth for Häagen-Dazs in retail channels. Old El Paso remains the global category leader in Mexican food, and we see tremendous opportunity for long-term growth for this brand. Others have seen this opportunity too, which has translated into increased competitive activity and resulted in flat retail sales for the brand in Q1. We have plans to improve our competitiveness by investing in brand building and innovation to reach new households and to encourage existing consumers to make Old El Paso a more frequent part of their meal routine.

Outside of shops, retail sales for Häagen-Dazs were up double digits, driven by increased distribution of our core flavors, as well as strong performance on our renovated European stick bar line. In China, a relaunch of our stick bar business helped drive high single-digit growth for Häagen-Dazs in retail channels. Old El Paso remains the global category leader in Mexican food, and we see tremendous opportunity for long-term growth for this brand. Others have seen this opportunity too, which has translated into increased competitive activity and resulted in flat retail sales for the brand in Q1. We have plans to improve our competitiveness by investing in brand building and innovation to reach new households and to encourage existing consumers to make Old El Paso a more frequent part of their meal routine.

In China, a relaunch of our snack bar business helped drive high single digit growth for Haagen Dazs and retail channels.

Old El Paso remains the global category leader in Mexican food, and we see tremendous opportunity for long term growth for this brand.

Others have seen this opportunity too which has translated into increased competitive activity and resulted in flat retail sales for the brand in Q1.

We have plans to improve our competitiveness by investing in brand building and innovation to reach new households, and to encourage existing consumers to make old El Paso, a more frequent part of their meal routine and on nature Valley. We drove high single digit retail sales growth in Q1 led by continued strong performance in France, where our brand building investment and.

Jeff Harmening: On Nature Valley, we drove high single-digit retail sales growth in Q1, led by continued strong performance in France, where our brand building investment and distribution gains helped us expand our number one market share position in the snack bar category. To support our growth plans and investments in remarkability, we continue to drive efficiency across our business. Our efforts are focused in two key areas: holistic margin management cost savings and our global transformation initiative. We're building on our industry-leading productivity track record, with good visibility to delivering another year of 5% savings in cost of goods sold in fiscal 2026. These results have been enabled by our increased use of digital and AI tools within our supply chain, helping drive efficiencies in our sourcing, manufacturing, and logistics networks.

Jeff Harmening: On Nature Valley, we drove high single-digit retail sales growth in Q1, led by continued strong performance in France, where our brand-building investment and distribution gains helped us expand our number one market share position in the snack bar category. To support our growth plans and investments in Remarkability, we continue to drive efficiency across our business. Our efforts are focused in two key areas: Holistic Margin Management cost savings and our global transformation initiative. We're building on our industry-leading productivity track record with good visibility to delivering another year of 5% savings in cost of goods sold in fiscal 2026. These results have been enabled by our increased use of digital and AI tools within our supply chain, helping drive efficiencies in our sourcing, manufacturing, and logistics networks.

On Nature Valley, we drove high single-digit retail sales growth in Q1, led by continued strong performance in France, where our brand-building investment and distribution gains helped us expand our number one market share position in the snack bar category. To support our growth plans and investments in Remarkability, we continue to drive efficiency across our business. Our efforts are focused in two key areas: Holistic Margin Management cost savings and our global transformation initiative. We're building on our industry-leading productivity track record with good visibility to delivering another year of 5% savings in cost of goods sold in fiscal 2026. These results have been enabled by our increased use of digital and AI tools within our supply chain, helping drive efficiencies in our sourcing, manufacturing, and logistics networks.

<unk> gains.

Helped us expand our number one market share position in the snack bar category.

To support our growth plans and investments and remarkably we continue to drive efficiency across our business. Our efforts are focused in two key areas holistic margin management cost savings and our global transformation initiative on H M. M. We're building on our industry, leading productivity track record with good visibility to delivering another year of 5% saving.

And cost of goods sold in fiscal 'twenty six these.

These results have been enabled by our increased use of digital and AI tools within our supply chain, helping drive efficiencies in our sourcing manufacturing and logistics networks.

On our global transformation initiative, we are streamlining our end to end processes and identifying new ways of working that mass today's evolving environment.

Jeff Harmening: On our global transformation initiative, we are streamlining our end-to-end processes and identifying new ways of working that match today's evolving environment. One specific example where we're seeing good progress is in demand forecasting. We started from a position of strength, benchmarking in line with leading peers in terms of demand forecast accuracy. By leveraging advancements in AI and machine learning, our transformation work is reducing our team's efforts while still delivering top-tier accuracy. We're in the process of transitioning more business to no-touch demand forecasting with no manual interventions. For these businesses, this has created time savings for our brand teams of greater than 50%. We think we can reach 75% time savings over time, enabling greater focus on demand generation. As an added benefit, these efforts have resulted in our highest operational demand forecast accuracy on record, which has driven measurable waste reduction and improved customer service.

Jeff Harmening: On our global transformation initiative, we are streamlining our end-to-end processes and identifying new ways of working that match today's evolving environment. One specific example where we're seeing good progress is in demand forecasting. We started from a position of strength, benchmarking in line with leading peers in terms of demand forecast accuracy. By leveraging advancements in AI and machine learning, our transformation work is reducing our team's efforts while still delivering top-tier accuracy. We're in the process of transitioning more business to no-touch demand forecasting with no manual interventions. For these businesses, this has created time savings for our brand teams of greater than 50%. And we think we can reach 75% time savings over time, enabling greater focus on demand generation. As an added benefit, these efforts have resulted in our highest operational demand forecast accuracy on record, which has driven measurable waste reduction and improved customer service.

On our global transformation initiative, we are streamlining our end-to-end processes and identifying new ways of working that match today's evolving environment. One specific example where we're seeing good progress is in demand forecasting. We started from a position of strength, benchmarking in line with leading peers in terms of demand forecast accuracy. By leveraging advancements in AI and machine learning, our transformation work is reducing our team's efforts while still delivering top-tier accuracy. We're in the process of transitioning more business to no-touch demand forecasting with no manual interventions. For these businesses, this has created time savings for our brand teams of greater than 50%. And we think we can reach 75% time savings over time, enabling greater focus on demand generation. As an added benefit, these efforts have resulted in our highest operational demand forecast accuracy on record, which has driven measurable waste reduction and improved customer service.

One specific example, where we're seeing good progress as in demand forecasting we started from a position of strength benchmarking inline with leading peers in terms of demand forecast accuracy by leveraging investments in AI and machine learning our transformation work is reducing our team's efforts, while still delivering top tier accuracy.

In the process of transitioning more business to know type demand forecasting with no manual interventions for these businesses. This is create a time savings for our brand teams of greater than 50% and we think we can reach 75% time savings over time, enabling greater focus on demand generation.

As an added benefit these efforts have resulted in our highest operational demand forecast accuracy on record, which has driven measurable waste reduction and improved customer service.

With good progress on our priorities in Q1 and strong plans to drive further improvement in the year to go.

Jeff Harmening: With good progress in our priorities in Q1 and strong plans to drive further improvement into the year to go, we remain on track to deliver the financial outlook we provided for fiscal 26. Now let me turn it over to Kofi to go into more detail on our first quarter fiscal 26 results. Thanks, Jeff, and hello, everyone. Our first quarter financial results are summarized on slide 19. As a reminder, we expected our price investments, the divestiture impact, and trade expense timing would put significant pressure on sales and profit results in the first half of the year before favorable trade timing comparisons, a 53rd week, and improved volume trends drive positive results in the second half. Reported net sales of $4.5 billion were down 7%, including a four-point headwind from the net impact of divestitures and acquisitions.

With good progress in our priorities in Q1 and strong plans to drive further improvement into the year to go, we remain on track to deliver the financial outlook we provided for fiscal 26. Now let me turn it over to Kofi to go into more detail on our first quarter fiscal 26 results.

Jeff Harmening: With good progress on our priorities in Q1 and strong plans to drive further improvement into the year to go, we remain on track to deliver the financial outlook we provided for fiscal 2026. Now, let me turn it over to Kofi to go into more detail on our first quarter fiscal 2026 results. Thanks, Jeff, and hello, everyone. Our first quarter financial results are summarized on slide 19. As a reminder, we expected our price investments, the divestiture impact, and trade expense timing would put significant pressure on sales and profit results in the first half of the year. Before favorable trade timing comparisons, a 53rd week and improved volume trends drive positive results in the second half. Recorded net sales of $4.5 billion were down 7%, including a four-point headwind from the net impact of divestitures and acquisitions.

We remain on track to deliver the financial outlook, we provided for fiscal 'twenty six now let me turn it over to coffee to go into more detail on our first quarter fiscal 'twenty six results.

Thanks, Jeff and Hello, everyone.

Our first quarter financial results are summarized on slide 19, as a reminder, we expected our price investments the divestiture impact and create expense timing would put significant pressure on sales and profit results in the first half of the year before favorable trade timing comparisons a 50 <unk> week and <unk>.

Kofi Bruce: Thanks, Jeff, and hello, everyone. Our first quarter financial results are summarized on slide 19. As a reminder, we expected our price investments, the divestiture impact, and trade expense timing would put significant pressure on sales and profit results in the first half of the year before favorable trade timing comparisons, a 53rd week, and improved volume trends drive positive results in the second half. Reported net sales of $4.5 billion were down 7%, including a four-point headwind from the net impact of divestitures and acquisitions.

<unk> volume trends drive positive results in the second half.

Reported net sales of $4 $5 billion were down 7%, including a four point headwind from the net impact of divestitures and acquisitions.

Organic net sales were in line with our expectations at down 3%, driven primarily by unfavorable price mix due to our price investments and unfavorable trade expense timing.

Jeff Harmening: Organic net sales were in line with our expectations at down 3%, driven primarily by unfavorable price mix due to our price investments and unfavorable trade expense timing. On the bottom line, our Q1 results finished a bit ahead of our expectations, driven by favorable phasing of input cost inflation and timing benefits in international, both of which we expect will largely unwind in Q2. Adjusted operating profit of $711 million was down 18% in constant currency, driven by lower volume and higher input costs, partially offset by favorable product mix stemming from the North American yogurt divestitures. Adjusted diluted earnings per share totaled $0.86 in the quarter and were down 20% in constant currency, driven primarily by lower adjusted operating profit.

Jeff Harmening: Organic net sales were in line with our expectations at down 3%, driven primarily by unfavorable price mix due to our price investments, and unfavorable trade expense timing. On the bottom line, our Q1 results finished a bit ahead of our expectations, driven by favorable phasing of input cost inflation and timing benefits in international, both of which we expect will largely unwind in Q2. Adjusted operating profit of $711 million was down 18% in constant currency, driven by lower volume and higher input costs, partially offset by favorable product mix stemming from the North American yogurt divestitures. Adjusted diluted earnings per share totaled $0.86 in the quarter and were down 20% in constant currency, driven primarily by lower adjusted operating profit.

Organic net sales were in line with our expectations at down 3%, driven primarily by unfavorable price mix due to our price investments, and unfavorable trade expense timing. On the bottom line, our Q1 results finished a bit ahead of our expectations, driven by favorable phasing of input cost inflation and timing benefits in international, both of which we expect will largely unwind in Q2. Adjusted operating profit of $711 million was down 18% in constant currency, driven by lower volume and higher input costs, partially offset by favorable product mix stemming from the North American yogurt divestitures. Adjusted diluted earnings per share totaled $0.86 in the quarter and were down 20% in constant currency, driven primarily by lower adjusted operating profit.

On the bottom line. Our Q1 results finished a bit ahead of our expectations driven by favorable phasing of input cost inflation and timing benefits and international both of which we expect will largely unwind in Q2.

Adjusted operating profit of $711 million was down 18% in constant currency, driven by lower volume and higher input costs, partially offset by favorable product mix stemming from the North American yogurt divestitures adjusted diluted earnings per share totaled 86 cents in the quarter and were down 20% in constant currency driven primarily.

By lower adjusted operating profit.

Moving to the components of total company net sales growth in the quarter organic net sales declined 3% in the quarter driven by lower organic price mix in pound volume.

Jeff Harmening: Moving to the components of total company net sales growth in the quarter, organic net sales declined 3% in the quarter, driven by lower organic price mix, and pound volume. Organic pound volume was down 1%, including the impact of a shipment timing headwind in North America pet. In terms of inorganic items, foreign exchange was immaterial to net sales, and the net impact of divestitures and acquisitions was a four-point headwind to net sales in Q1. Shifting to segment results, first quarter organic net sales for North America retail were down 5%. Our organic net sales lagged Nielsen-measured US retail sales by roughly one point, driven primarily by a previously anticipated headwind from trade expense timing. Including the North America yogurt divestitures, reported net sales declined double digits for the Big G Cereals and Canada operating unit, which represents the combination of the previous US.

Moving to the components of total company net sales growth in the quarter, organic net sales declined 3% in the quarter, driven by lower organic price mix, and pound volume. Organic pound volume was down 1%, including the impact of a shipment timing headwind in North America pet. In terms of inorganic items, foreign exchange was immaterial to net sales, and the net impact of divestitures and acquisitions was a four-point headwind to net sales in Q1. Shifting to segment results, first quarter organic net sales for North America retail were down 5%. Our organic net sales lagged Nielsen-measured US retail sales by roughly one point, driven primarily by a previously anticipated headwind from trade expense timing. Including the North America yogurt divestitures, reported net sales declined double digits for the Big G Cereals and Canada operating unit, which represents the combination of the previous US.

Jeff Harmening: Moving to the components of total company net sales growth in the quarter, organic net sales declined 3% in the quarter, driven by lower organic price mix and pound volume. Organic pound volume was down 1%, including the impact of a shipment timing headwind in North America pet. In terms of inorganic items, foreign exchange was immaterial to net sales, and the net impact of divestitures and acquisitions was a four-point headwind to net sales in Q1. Shifting to segment results, first quarter organic net sales for North America retail were down 5%. Our organic net sales lagged Nielsen-measured U.S. retail sales by roughly one point, driven primarily by a previously anticipated headwind from trade expense timing. Including the North America yogurt divestitures, reported net sales declined double digits for the Big G cereal and Canada operating unit, which represents the combination of the previous U.S.

Organic pound volume was down 1%, including the impact of a shipment timing headwind in North America.

In terms of inorganic items foreign exchange was immaterial to net sales and the net impact of divestitures and acquisitions was a four point headwind to net sales in Q1.

Shifting to segment results first quarter organic net sales for North America retail were down 5%.

Our organic net sales lagged Nielsen measured U S retail sales by roughly one point driven primarily by a previously anticipated headwind from trade expense timing.

Including the North America yogurt divestitures reported net sales declined double digits for the Big G. Cereal in Canada operating unit, which represents the combination of the previous U S morning Foods and Canada operating units.

Net sales were down high single digits for U S snacks, and low single digits for U S meals and baking solutions.

Jeff Harmening: Morning Foods and Canada operating units. Net sales were down high single digits for U.S. snacks and low single digits for U.S. meals and baking solutions. As Jeff noted, our increased consumer value, innovation, and product news drove improved pound competitiveness in Q1, including pound share growth in eight of our top 10 U.S. categories. On the bottom line, constant currency segment operating profit was down 24% in the quarter, due primarily to lower volume, including the impact of yogurt divestitures. Net sales for our North America pet segment increased 6%, including the impact of the Whitebridge acquisition. Organic net sales were down 5%, driven largely by a four-point shipment timing headwind in the quarter. Including the Whitebridge acquisition, reported net sales in the quarter were up double digits for cat feeding and pet treating, and down mid-single digits for dog feeding.

Jeff Harmening: Morning Foods and Canada operating units. Net sales were down high single digits for US snacks and low single digits for US meals and baking solutions. As Jeff noted, our increased consumer value, innovation, and product news drove improved pound competitiveness in Q1, including pound share growth in eight of our top 10 US categories. On the bottom line, constant currency segment operating profit was down 24% in the quarter, due primarily to lower volume, including the impact of yogurt divestitures. Net sales for our North America pet segment increased 6%, including the impact of the White Bridge acquisition. Organic net sales were down 5%, driven largely by a four-point shipment timing headwind in the quarter. Including the White Bridge acquisition, reported net sales in the quarter were up double digits for cat feeding and pet treating, and down mid-single digits for dog feeding.

Morning Foods and Canada operating units. Net sales were down high single digits for US snacks and low single digits for US meals and baking solutions. As Jeff noted, our increased consumer value, innovation, and product news drove improved pound competitiveness in Q1, including pound share growth in eight of our top 10 US categories. On the bottom line, constant currency segment operating profit was down 24% in the quarter, due primarily to lower volume, including the impact of yogurt divestitures. Net sales for our North America pet segment increased 6%, including the impact of the White Bridge acquisition. Organic net sales were down 5%, driven largely by a four-point shipment timing headwind in the quarter. Including the White Bridge acquisition, reported net sales in the quarter were up double digits for cat feeding and pet treating, and down mid-single digits for dog feeding.

As Jeff noted our increased consumer value innovation and product news drove improved pound competitiveness in Q1, including pound share growth in eight of our top 10 U S categories on the bottom line constant currency segment operating profit was down 24% in the quarter due primarily to lower volume, including the impact.

Active yogurt divestitures.

Net sales for North America, Pet segment increased 6%, including the impact of the <unk> acquisition.

Net sales were down 5% driven largely by a $4 shipment timing headwind in the quarter.

Including the White Bridge acquisition reported net sales in the quarter were up double digits for cat feeding in pet treating and down mid single digits for dog feeding.

We maintained our pound competitiveness in Q1, holding pound share and Doug fee cat feeding and treating.

Jeff Harmening: We maintained our pound competitiveness in Q1, holding pound share in dog feeding, cat feeding, and treating. On the bottom line, first quarter North America pet segment operating profit was down 5% in constant currency, driven by higher input costs and higher SG&A expenses, including investments ahead of our upcoming fresh pet food launch, partially offset by favorable price mix. North America food service organic net sales were up 1% in the quarter, driven by good growth in cereal and biscuits, partially offset by a two-point headwind from market index pricing on bakery flour. We continued our strong competitiveness in the quarter, with 80% of our priority businesses holding or growing share, driven by positive results in non-commercial channels, including healthcare, K through 12 schools, and colleges and universities.

We maintained our pound competitiveness in Q1, holding pound share in dog feeding, cat feeding, and treating. On the bottom line, first quarter North America pet segment operating profit was down 5% in constant currency, driven by higher input costs and higher SG&A expenses, including investments ahead of our upcoming fresh pet food launch, partially offset by favorable price mix. North America food service organic net sales were up 1% in the quarter, driven by good growth in cereal and biscuits, partially offset by a two-point headwind from market index pricing on bakery flour. We continued our strong competitiveness in the quarter, with 80% of our priority businesses holding or growing share, driven by positive results in non-commercial channels, including healthcare, K through 12 schools, and colleges and universities.

And on the bottom line first quarter North America Pet segment operating profit was down 5% in constant currency driven by higher input costs and higher SG&A expenses, including investments ahead of our upcoming fresh pet food launch, partially offset by favorable price mix.

North America Foodservice organic net sales were up 1% in the quarter driven by good growth in cereal and biscuits, partially offset by a two point headwind from market index pricing on bakery flour.

We continued our strong competitiveness in the quarter with 80% of our priority business is holding or growing share driven by positive results in non commercial channels, including health care K through 12 schools and colleges and universities on the Bottomline North America Foodservice segment operating profit was down 1% in Q1.

Jeff Harmening: On the bottom line, North America Foodservice segment operating profit was down 1% in Q1, with a headwind from the yogurt divestitures, largely offset by growth on the remaining businesses. Shifting to our international segment, we generated good growth in net sales and operating profit, helped in part by certain timing benefits totaling approximately 3% of segment net sales that are expected to unwind in the remainder of this year, primarily in the second quarter. First quarter organic net sales were up 4%, driven primarily by growth in India, North Asia, and Europe. Our net sales performance in China improved in Q1 relative to our fiscal 2025 trend, with a relatively small decline resulting from the closure of certain underperforming Häagen-Dazs shops.

On the bottom line, North America Foodservice segment operating profit was down 1% in Q1, with a headwind from the yogurt divestitures, largely offset by growth on the remaining businesses. Shifting to our international segment, we generated good growth in net sales and operating profit, helped in part by certain timing benefits totaling approximately 3% of segment net sales that are expected to unwind in the remainder of this year, primarily in the second quarter. First quarter organic net sales were up 4%, driven primarily by growth in India, North Asia, and Europe. Our net sales performance in China improved in Q1 relative to our fiscal 2025 trend, with a relatively small decline resulting from the closure of certain underperforming Häagen-Dazs shops.

Jeff Harmening: On the bottom line, North America Foodservice segment operating profit was down 1% in Q1, with a headwind from the yogurt divestitures, largely offset by growth on the remaining businesses. Shifting to our International segment, we generated good growth in net sales and operating profit, helped in part by certain timing benefits totaling approximately 3% of segment net sales that are expected to unwind in the remainder of this year, primarily in the second quarter. First quarter organic net sales were up 4%, driven primarily by growth in India, North Asia, and Europe. Our net sales performance in China improved in Q1 relative to our fiscal 2025 trend, with a relatively small decline resulting from the closure of certain underperforming Häagen-Dazs shops.

With the headwind from the yogurt divestitures, largely offset by growth on the remaining businesses.

Shifting to our international segment, we generated good growth in net sales and operating profit helped in part by certain timing benefits totaling approximately 3% of segment net sales that are expected to unwind in the remainder of this year, primarily in the second quarter.

First quarter organic net sales were up 4% driven primarily by growth in India, North Asia and Europe.

Our net sales performance in China improved in Q1 relative to our fiscal 2025 trend with a relatively small decline, resulting from the closure of certain underperforming Hagen dazs shops, excluding shops, we delivered net sales growth in China, driven by Hagen Dazs retail and foodservice channels and our Wanchai ferry dumplings business.

Jeff Harmening: Excluding shops, we delivered net sales growth in China, driven by Häagen-Dazs retail and food service channels, and our Wanchai Ferry dumpling business, giving us more confidence that our long-term plans for China are on the right track. We continued to compete effectively in international Q1, including holding or growing dollar share in roughly half of our priority businesses. Inclusive of timing benefits, first quarter segment operating profit totaled $66 million compared to $21 million last year, driven by favorable price mix, partially offset by higher SG&A expenses. Slide 25 summarizes our joint venture results. Cereal Partners Worldwide net sales were down 2% in constant currency in Q1, driven by declines in Latin America and Europe, partially offset by growth in Asia, Oceania, and Africa. Häagen-Dazs Japan net sales were up 7% in constant currency, reflecting growth on our core cup and handheld formats.

Excluding shops, we delivered net sales growth in China, driven by Häagen-Dazs retail and food service channels, and our Wanchai Ferry dumpling business, giving us more confidence that our long-term plans for China are on the right track. We continued to compete effectively in international Q1, including holding or growing dollar share in roughly half of our priority businesses. Inclusive of timing benefits, first quarter segment operating profit totaled $66 million compared to $21 million last year, driven by favorable price mix, partially offset by higher SG&A expenses. Slide 25 summarizes our joint venture results. Cereal Partners Worldwide net sales were down 2% in constant currency in Q1, driven by declines in Latin America and Europe, partially offset by growth in Asia, Oceania, and Africa. Häagen-Dazs Japan net sales were up 7% in constant currency, reflecting growth on our core cup and handheld formats.

Jeff Harmening: Excluding shops, we delivered net sales growth in China, driven by Häagen-Dazs retail and foodservice channels and our Wanchai Ferry dumpling business, giving us more confidence that our long-term plans for China are on the right track. We continued to compete effectively in International Q1, including holding or growing dollar share in roughly half of our priority businesses. Inclusive of timing benefits, first quarter segment operating profit totaled $66 million compared to $21 million last year, driven by favorable price mix, partially offset by higher SG&A expenses. Slide 25 summarizes our joint venture results. Cereal Partners Worldwide net sales were down 2% in constant currency in Q1, driven by declines in Latin America and Europe, partially offset by growth in Asia, Oceania, and Africa. Häagen-Dazs Japan net sales were up 7% in constant currency, reflecting growth on our core cup and handheld formats.

US more confidence that our long term plans for China are on the right track.

We continued to compete effectively in international in Q1, including holding or growing dollar share in roughly half of our priority businesses.

Inclusive of timing benefits first quarter segment operating profit totaled $66 million compared to $21 million last year, driven by favorable price mix, partially offset by higher SG&A expenses.

Slide 25 summarizes our joint venture results cereal partners worldwide net sales were down 2% in constant currency in Q1, driven by declines in Latin America, and Europe, partially offset by growth in Asia, Oceania and Africa.

In Japan net sales were up 7% in constant currency, reflecting growth on our core Cup and handheld formats.

First quarter combined after tax earnings from joint ventures decreased to $7 million compared to $19 million in the same period in fiscal 2025, driven primarily by asset impairment charges and transaction costs related to assets held for sale at CPW.

Jeff Harmening: First quarter combined after-tax earnings from joint ventures decreased to $7 million compared to $19 million in the same period in fiscal 2025, driven primarily by asset impairment charges and transaction costs related to assets held for sale at CPW. Turning to margin performance, adjusted gross margin of 34.2% of net sales was down 120 basis points versus last year, driven primarily by higher input costs, partially offset by favorable mix impact from the North American yogurt divestitures. Our first quarter adjusted operating profit margin was down 210 basis points to 15.7%, driven by lower adjusted gross margin and higher SG&A expenses as a percent of net sales. Moving to other noteworthy Q1 income statement items, adjusted unallocated corporate expenses increased $11 million in the quarter, driven by the lapping of favorable one-time items from last year.

First quarter combined after-tax earnings from joint ventures decreased to $7 million compared to $19 million in the same period in fiscal 2025, driven primarily by asset impairment charges and transaction costs related to assets held for sale at CPW. Turning to margin performance, adjusted gross margin of 34.2% of net sales was down 120 basis points versus last year, driven primarily by higher input costs, partially offset by favorable mix impact from the North American yogurt divestitures. Our first quarter adjusted operating profit margin was down 210 basis points to 15.7%, driven by lower adjusted gross margin and higher SG&A expenses as a percent of net sales. Moving to other noteworthy Q1 income statement items, adjusted unallocated corporate expenses increased $11 million in the quarter, driven by the lapping of favorable one-time items from last year.

Turning to margin performance adjusted gross margin of 34, 2% of net sales was down 120 basis points versus last year, driven primarily by higher input costs, partially offset by favorable mix impact from the North American yogurt divestitures.

Our first quarter adjusted operating profit margin was down 210 basis points to 15, 7% driven by lower adjusted gross margin and higher SG&A expenses as a percent of net sales.

Moving to other noteworthy Q1 income statement items adjusted unallocated corporate expenses increased $11 million in the quarter driven by the lapping of favorable one time items from last year. As a reminder, we expect corporate unallocated expenses to be up significantly for the full year driven by normalization.

Jeff Harmening: As a reminder, we expect corporate unallocated expenses to be up significantly for the full year, driven by a normalization of corporate incentive compensation after last year's below-average payout. First quarter net interest expense was up $9 million, driven by higher average long-term debt balances. The adjusted effective tax rate was 24.1% compared to 21.9% a year ago due to certain non-recurring discrete tax benefits in fiscal 2025 and unfavorable earnings mix by jurisdiction in fiscal 2026. Finally, average diluted shares outstanding in the quarter were down 4% to 542 million, reflecting our continued net share repurchase activity. Turning to the balance sheet and cash flow on slide 28, first quarter operating cash flow decreased year over year to $397 million, driven primarily by lower net earnings, including the impact of divested earnings related to the North American yogurt divestitures, as well as unfavorable changes in core working capital.

Jeff Harmening: As a reminder, we expect corporate unallocated expenses to be up significantly for the full year, driven by a normalization of corporate incentive compensation after last year's below-average payout. First quarter net interest expense was up $9 million, driven by higher average long-term debt balances. The adjusted effective tax rate was 24.1% compared to 21.9% a year ago due to certain non-recurring discrete tax benefits in fiscal 2025 and unfavorable earnings mix by jurisdiction in fiscal 2026. Finally, average diluted shares outstanding in the quarter were down 4% to $542 million, reflecting our continued net share repurchase activity. Turning to the balance sheet and cash flow on slide 28, first quarter operating cash flow decreased year over year to $397 million, driven primarily by lower net earnings, including the impact of divested earnings related to the North American yogurt divestitures, as well as unfavorable changes in core working capital.

As a reminder, we expect corporate unallocated expenses to be up significantly for the full year, driven by a normalization of corporate incentive compensation after last year's below-average payout. First quarter net interest expense was up $9 million, driven by higher average long-term debt balances. The adjusted effective tax rate was 24.1% compared to 21.9% a year ago due to certain non-recurring discrete tax benefits in fiscal 2025 and unfavorable earnings mix by jurisdiction in fiscal 2026. Finally, average diluted shares outstanding in the quarter were down 4% to $542 million, reflecting our continued net share repurchase activity. Turning to the balance sheet and cash flow on slide 28, first quarter operating cash flow decreased year over year to $397 million, driven primarily by lower net earnings, including the impact of divested earnings related to the North American yogurt divestitures, as well as unfavorable changes in core working capital.

<unk> of corporate incentive compensation after last year's below average payout.

First quarter net interest expense was up $9 million driven by higher average long term debt balances.

Adjusted effective tax rate was 24, 1% compared to 21, 9% a year ago due to certain nonrecurring discrete tax benefits in fiscal 'twenty, five and unfavorable earnings mix by jurisdiction in fiscal 2026.

Finally average diluted shares outstanding in the quarter were down 4% to $542 million, reflecting our continued net share repurchase activity.

Turning to the balance sheet and cash flow on slide 28, first quarter operating cash flow decreased year over year to $397 million driven primarily by lower net earnings, including the impact of divested earnings related to the North American yogurt divestitures as well as unfavorable changes in core working capital cash.

Our investments in the quarter totaled $110 million, we paid $330 million to shareholders in dividends in Q1, and with the divestiture of our U S. Yogurt business closing in June we received $1 $8 billion in gross proceeds after taxes and transaction costs. We utilize the majority of the net proceeds to pay down debt.

Jeff Harmening: Capital investments in the quarter totaled $110 million. We paid $330 million to shareholders in dividends in Q1, and with the divestiture of our U.S. yogurt business closing in June, we received $1.8 billion in gross proceeds. After taxes and transaction costs, we utilized the majority of the net proceeds to pay down debt, which will help us make progress on our deleveraging goal for the year. Finally, we returned $500 million in cash to shareholders in the quarter through net share repurchases. I'll wrap up my comments by summarizing our reaffirmed fiscal 2026 outlook. We expect organic net sales to range between down 1% and up 1%.

Jeff Harmening: Capital investments in the quarter totaled $110 million. We paid $330 million to shareholders and dividends in Q1. With the divestiture of our US yogurt business closing in June, we received $1.8 billion in gross proceeds. After taxes and transaction costs, we utilized the majority of the net proceeds to pay down debt, which will help us make progress on our deleveraging goal for the year. Finally, we returned $500 million in cash to shareholders in the quarter through net share repurchases. I'll wrap up my comments by summarizing our reaffirmed fiscal 2026 outlook. We expect organic net sales to range between down 1% and up 1%.

Capital investments in the quarter totaled $110 million. We paid $330 million to shareholders and dividends in Q1. With the divestiture of our US yogurt business closing in June, we received $1.8 billion in gross proceeds. After taxes and transaction costs, we utilized the majority of the net proceeds to pay down debt, which will help us make progress on our deleveraging goal for the year. Finally, we returned $500 million in cash to shareholders in the quarter through net share repurchases. I'll wrap up my comments by summarizing our reaffirmed fiscal 2026 outlook. We expect organic net sales to range between down 1% and up 1%.

Which will help us make progress on our deleveraging goal for the year.

Finally, we returned $500 million in cash to shareholders in the quarter through net share repurchases.

I'll wrap up my comments by summarizing our reaffirmed fiscal 2026 outlet.

We expect organic net sales to range between down 1% and up 1% adjust.

Jeff Harmening: Adjusted operating profit and adjusted diluted earnings per share are both expected to be down 10% to 15% in constant currency, including the impact of significant growth investments, a five-point headwind from the net impact of divestitures and acquisitions, and a three-point headwind from the normalization of corporate incentive expense. While there have been changes to our forecast on tariffs over the past three months, we continue to expect the gross impact of tariffs to add another 1% to 2% of COGS. We continue to work to mitigate as much of that impact as possible through product reformulation, ingredient substitution, and strategic revenue management actions. Finally, we continue to expect free cash flow conversion of at least 95% of adjusted after-tax earnings. With that, let me turn it back to Jeff for some closing remarks. Thanks, Kofi. Let me wrap up with a few closing thoughts.

Adjusted operating profit and adjusted diluted earnings per share are both expected to be down 10% to 15% in constant currency, including the impact of significant growth investments, a five-point headwind from the net impact of divestitures and acquisitions, and a three-point headwind from the normalization of corporate incentive expense. While there have been changes to our forecast on tariffs over the past three months, we continue to expect the gross impact of tariffs to add another 1% to 2% of COGS. We continue to work to mitigate as much of that impact as possible through product reformulation, ingredient substitution, and strategic revenue management actions. Finally, we continue to expect free cash flow conversion of at least 95% of adjusted after-tax earnings. With that, let me turn it back to Jeff for some closing remarks.

And while there have been changes to our forecast on tariffs over the past three months, we continue to expect the gross impact of tariffs to add another 1% to 2% of Cogs and we continue to work to mitigate as much of that impact as possible through product re formulation ingredient substitution and strategic revenue management actions.

Finally, we continue to expect free cash flow conversion of at least 95% of adjusted after tax earnings.

With that let me turn it back to Jeff for some closing remarks.

Thanks, Duffy, let me wrap up with a few closing thoughts are.

Our number one goal for this year remains clear.

Jeff Harmening: Thanks, Kofi. Let me wrap up with a few closing thoughts.

Restoring volume driven organic sales growth and the path to that goal is equally clear investing to improve their marketability of our total product offerings. We've been encouraged by the fact that where we've made investments we've seen the returns we had expected including in Q1 and while we're pleased with our progress we are by no means.

Jeff Harmening: Our number one goal for this year remains clear: restoring volume-driven organic sales growth. The path to that goal is equally clear: investing to improve the remarkability of our total product offerings. We've been encouraged by the fact that where we've made investments, we've seen the returns we've expected, including in Q1. While we're pleased with our progress, we are by no means yet satisfied. We remain sharply focused on executing our plans and getting back to growth. I have confidence in our plan and in our team, whose track record of execution is excellent. I look forward to reporting our progress as we execute our priorities, accelerate our growth, and drive returns for our shareholders.

Our number one goal for this year remains clear: restoring volume-driven organic sales growth. The path to that goal is equally clear: investing to improve the remarkability of our total product offerings. We've been encouraged by the fact that where we've made investments, we've seen the returns we've expected, including in Q1. While we're pleased with our progress, we are by no means yet satisfied. We remain sharply focused on executing our plans and getting back to growth. I have confidence in our plan and in our team, whose track record of execution is excellent. I look forward to reporting our progress as we execute our priorities, accelerate our growth, and drive returns for our shareholders.

Yes satisfied we remain sharply focused on executing our plans and getting back to growth I have confidence in our plan and in our team whose track record of execution is excellent I look forward to reporting our progress as we execute our priorities accelerate our growth and drive returns for our shareholders.

Q1 2026 General Mills Inc Earnings Call - Pre-Recorded

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