Q2 2026 Nomad Foods Ltd Earnings Call- Pre-Recorded

August 13, 2026

Jason English: Website at nomadfoods.com. I am Jason English, Head of Investor Relations and Corporate Strategy, and I am joined by Dominic Brisby, our CEO, and Ruben Baldew, our CFO. In addition to these remarks, we will host an analyst Q&A only session today at 8:30AM Eastern. A replay of this webcast and our subsequent Q&A session will be available on the investor relations section of our website. These prepared remarks will include forward-looking statements that are based on our view of the company's prospects, expectations, and intentions at this time. Actual results may differ due to the risks, uncertainties, which are discussed in our press release, our filings with the SEC, and in our investor presentation, which includes cautionary language. We will also discuss non-IFRS financial measures during the call today. These non-IFRS financial measures should not be considered a replacement for, and should be read together with, IFRS results.

Jason English: Website at nomadfoods.com. I am Jason English, Head of Investor Relations and Corporate Strategy, and I am joined by Dominic Brisby, our CEO, and Ruben Baldew, our CFO. In addition to these remarks, we will host an analyst Q&A only session today at 8:30 AM Eastern. A replay of this webcast and our subsequent Q&A session will be available on the investor relations section of our website. These prepared remarks will include forward-looking statements that are based on our view of the company's prospects, expectations, and intentions at this time. Actual results may differ due to the risks, uncertainties, which are discussed in our press release, our filings with the SEC, and in our investor presentation, which includes cautionary language. We will also discuss non-IFRS financial measures during the call today. These non-IFRS financial measures should not be considered a replacement for, and should be read together with, IFRS results.

Speaker #1: Website at nomadfoods.com. I'm Jason English, Head of Investor Relations and Corporate Strategy, and I'm joined by Dominic Brisby, our CEO, and Ruben Baldu, our CFO.

Speaker #1: In addition to these remarks, we'll host an analyst Q&A-only session today at 8:30 a.m. Eastern. A replay of this webcast and our subsequent Q&A session will be available on the Investor Relations section of our website.

Speaker #1: The following remarks will include forward-looking statements that are based on our view of the company's prospects, expectations, and intentions at this time. Actual results may differ due to risks and uncertainties, which are discussed in our press release.

Speaker #1: Our findings with the SEC and in our investor presentation, which includes cautionary language. We'll also discuss non-IFRS financial measures during the call today. These non-IFRS financial measures should not be considered a replacement for and should be read together with IFRS results.

Speaker #1: Users can find IFRS to non-IFRS reconciliations within our earnings release and in the appendices at the end of the slide presentation available on our website.

Jason English: Users can find IFRS to non-IFRS reconciliations within our earnings release and in the appendices at the end of the slide presentation available on our website. Please note that certain financial information within this presentation represents adjusted figures. All adjusted figures have been adjusted primarily for, when applicable, share-based payment expenses and related employer payroll taxes, exceptional items, foreign currency translation charges or gains, and hedge ineffectiveness. Unless otherwise noted, comments from here on will refer to these adjusted numbers. With that, I will hand it over to Dominic.

Speaker #1: Please note that certain financial information within this presentation represents adjusted figures. All adjusted figures have been adjusted primarily for, when applicable, share-based payment expenses and related employer payroll taxes, exceptional items, foreign currency translation charges or gains, and hedge ineffectiveness.

Speaker #1: Unless otherwise noted, comments from here on will refer to these adjusted numbers. With that, I'll hand it over to Dominic.

Speaker #2: Thank you, Jason. And good morning, everyone. As we pre-announced last month, I am pleased with our second quarter results, which came in modestly ahead of our expectations.

Dominic Brisby: Thank you, Jason, and good morning, everyone. As we pre-announced last month, I am pleased with our Q2 results, which came in modestly ahead of our expectations. The quarter was an important one for Nomad Foods. We made meaningful progress on our operational priorities, resolved key commercial disruptions, strengthened our leadership team, and continued to benefit from the attractive fundamentals of the frozen food category. Let me highlight four key takeaways from the quarter. First, we successfully executed our pricing and productivity initiatives. Our recently implemented price increases drove a positive inflection in price mix, contributing 3% to organic revenue growth during the quarter. At the same time, our productivity programs continued to offset a significant portion of input cost inflation as we advance towards our EUR 200 million three-year cost savings target.

Speaker #2: The quarter was an important one for Nomad Foods. We made meaningful progress on our operational priorities, resolved key commercial disruptions, strengthened our leadership team, and continued to benefit from the attractive fundamentals of the frozen food category.

Speaker #2: Let me highlight four key takeaways from the quarter. First, we successfully executed our pricing and productivity initiatives. Our recently implemented price increases drove a positive inflection in price mix, contributing 3% to organic revenue growth during the quarter.

Speaker #2: At the same time, our productivity programs continued to offset a significant portion of input cost inflation as we advanced towards our $200 million, three-year cost savings target.

Speaker #2: Together, these actions contributed to a 110 basis point improvement in adjusted gross margin, demonstrating our ability to protect profitability while continuing to invest in the business.

Dominic Brisby: Together, these actions contributed to a 110 basis point improvement in adjusted gross margin, demonstrating our ability to protect profitability while continuing to invest in the business. Second, we resolved the retailer disputes that weighed on our performance earlier this year. As we discussed last quarter, these disruptions created a significant headwind to both revenue and earnings, resulting in out of stocks and reduced promotional activity across key customers for much of the quarter. Importantly, those issues were largely behind us by quarter end. Shelves have been replenished, promotional plans are being restored, and we have already begun to see improvements in market share trends. We expect that recovery to continue through the H2 of the year. Third, we continue to strengthen our organization and position the company for future success.

Speaker #2: Second, we resolved the retailer disputes that weighed on our performance earlier this year. As we discussed last quarter, these disruptions created a significant headwind to both revenue and earnings, resulting in out-of-stocks and reduced promotional activity across key customers for much of the quarter.

Speaker #2: Importantly, those issues were largely behind us by quarter-end. Shelves have been replenished, promotional plans are being restored, and we have already begun to see improvements in market share trends.

Speaker #2: We expect that recovery to continue through the second half of the year. Third, we continue to strengthen our organization and position the company for future success.

Speaker #2: During the quarter, we finalized the appointments in the executive team, with half of my direct leadership team now new to the organization. They bring fresh perspectives, deep industry expertise, and a shared commitment to building a high-performance culture focused on growth, execution, and accountability.

Dominic Brisby: During the quarter, we finalized the appointments in the executive team with half of my direct leadership team now new to the organization. They bring fresh perspectives, deep industry expertise, and a shared commitment to building a high-performance culture focused on growth, execution, and accountability. We also completed the restructuring of our marketing organization. As I noted previously, the function had become overly complex and inefficient. We have streamlined the organization, reducing non-working A&P spend, and shifted greater accountability closer to local markets. This will allow us to deploy more resources directly behind consumers, brands, and growth opportunities. Finally, we continue to benefit from strong category growth across Europe. Frozen food remains exceptionally well-positioned as consumers increasingly value convenience, affordability, nutrition, and great taste.

Speaker #2: We also completed the restructuring of our marketing organization. As I noted previously, the function had become overly complex and inefficient. We have streamlined the organization, reduced non-working AMP spend, and shifted greater accountability closer to local markets.

Speaker #2: This will allow us to deploy more resources directly behind consumers, brands, and growth opportunities. Finally, we continue to benefit from strong category growth across Europe.

Speaker #2: Frozen food remains exceptionally well-positioned, as consumers increasingly value convenience, affordability, nutrition, and great taste. Retail value sales for our category increased 2.9% during the most recent 12-week period, with volume growth of 1.2%, while year-to-date value growth reached 3.4% and volume growth 1.6%.

Dominic Brisby: Retail value sales for our category increased 2.9% during the most recent 12-week period, with volume growth of 1.2%, while year-to-date value growth reached 3.4% and volume growth 1.6%. Growth has been broad-based across both categories and geographies. Frozen fish and vegetables are growing roughly 3% year to date across our footprint, while meals and poultry have grown approximately 7% and pizza 5%. Geographically, savory frozen food sales are growing across our major markets, including the UK, Italy, and Germany. Simply put, we operate in an attractive and growing category supported by some of the strongest frozen food brands in Europe. That said, we are not performing at our full potential. As shown on slide 5, our value and volume share declined 90 and 75 basis points, respectively, during the most recent 12-week period, while retail value sell-out decreased 3.2%.

Dominic Brisby: Retail value sales for our category increased 2.9% during the most recent 12-week period, with volume growth of 1.2%, while year-to-date value growth reached 3.4% and volume growth 1.6%. Growth has been broad-based across both categories and geographies. Frozen fish and vegetables are growing roughly 3% year to date across our footprint, while meals and poultry have grown approximately 7% and pizza 5%. Geographically, savory frozen food sales are growing across our major markets, including the UK, Italy, and Germany. Simply put, we operate in an attractive and growing category supported by some of the strongest frozen food brands in Europe. That said, we are not performing at our full potential. As shown on slide five, our value and volume share declined 90 and 75 basis points, respectively, during the most recent 12-week period, while retail value sell-out decreased 3.2%.

Speaker #2: Growth has been broad-based across both categories and geographies. Frozen fish and vegetables are growing roughly 3% year-to-date across our footprint, while meals and poultry have grown approximately 7% and pizza 5%.

Speaker #2: Geographically, savory frozen food sales are growing across our major markets, including the UK, Italy, and Germany. Simply put, we operate in an attractive and growing category, supported by some of the strongest frozen food brands in Europe.

Speaker #2: That said, we are not performing at our full potential. As shown on slide 5, our value and volume share declined 19 and 75 basis points, respectively, during the most recent 12-week period, while retail value sell-out decreased 3.2%.

Speaker #2: Much of this underperformance was driven by the commercial disruptions in Germany and France that we discussed previously. Those disruptions are now largely resolved, but we still have more work to do to achieve the growth potential we believe our brands and categories can deliver.

Dominic Brisby: Much of this underperformance was driven by the commercial disruptions in Germany and France that we discussed previously. Those disruptions are now largely resolved, but we still have more work to do to achieve the growth potential we believe our brands and categories can deliver. While 2026 has been a year of rebuilding our foundation, we are already taking actions to improve competitiveness and accelerate growth. We are increasing investment in both renovation and innovation across our portfolio. For example, we have upgraded the coating on our fish fingers across multiple markets to deliver our crunchiest product ever. Consumer research consistently shows that crunchiness is a key driver of preference, and testing indicates the renovated product significantly outperforms our previous offering. This is exactly the type of superiority-led renovation that strengthens brand equity while providing compelling news to take to consumers.

Speaker #2: While 2026 has been a year of rebuilding our foundation, we are already taking actions to improve competitiveness and accelerate growth. We are increasing investment in both renovation and innovation across our portfolio.

Speaker #2: For example, we have upgraded the coating on our fish fingers across multiple markets to deliver our crunchiest product ever. Consumer research consistently shows that crunchiness is a key driver of preference, and testing indicates the renovated product significantly outperforms our previous offering.

Speaker #2: This is exactly the type of superiority-led renovation that strengthens brand equity while providing compelling news to take to consumers. We also have a robust pipeline of innovation launching across Europe, including high-protein spinach products in Germany, expanded chicken offerings in the UK, new seafood and meal innovations across multiple markets, further development of our ice cream portfolio, and continued expansion of our pizza portfolio into additional countries.

Dominic Brisby: We also have a robust pipeline of innovation launching across Europe, including high-protein spinach products in Germany, expanded chicken offerings in the UK, new seafood and meal innovations across multiple markets, further development of our ice cream portfolio, and continued expansion of our pizza portfolio into additional countries. The specific products are important. More importantly, they reflect a broader shift towards innovation, stronger consumer relevance, and a more growth-oriented mindset across the organization. As you can see, significant work is underway to improve our in-market performance and unlock the full potential of our business. At the same time, over the past several months, we have developed a comprehensive multi-year value creation plan. Nomad Foods possesses a unique combination of assets, iconic brands, a scaled pan-European supply chain, deep customer relationships, and increasingly strong commercial capabilities. These are tremendous competitive advantages operating within a category with attractive long-term growth fundamentals.

Speaker #2: The specific products are important. More importantly, they reflect a broader shift towards innovation, stronger consumer relevance, and a more growth-oriented mindset across the organization.

Speaker #2: As you can see, significant work is underway to improve our in-market performance and unlock the full potential of our business. At the same time, over the past several months, we have developed a comprehensive, multi-year value creation plan.

Speaker #2: Nomad Foods possesses a unique combination of assets: iconic brands, a scaled pan-European supply chain, deep customer relationships, and increasingly strong commercial capabilities. These are tremendous competitive advantages, operating within a category with attractive long-term growth fundamentals.

Speaker #2: Our opportunity now is to fully leverage those strengths. We see meaningful opportunities to drive growth across categories, channels, geographies, and consumers, and we have a clear plan to capture them.

Dominic Brisby: Our opportunity now is to fully leverage those strengths. We see meaningful opportunities to drive growth across categories, channels, geographies, and consumers, and we have a clear plan to capture them. I look forward to sharing that plan and much more at our Analyst and Investor Day in New York this fall. With that, let me turn the call over to Ruben to review our Q2 results and outlook in greater detail. Ruben.

Speaker #2: I look forward to sharing that plan and much more at our analyst and investor day in New York this fall. With that, let me turn the call over to Ruben to review our second quarter results and outlook in greater detail.

Speaker #2: Ruben.

Speaker #1: Thank you, Dominic, and good morning, everyone. Second-quarter results show that pricing and productivity are working, retail disruptions are normalizing, and cash generation remains strong.

Ruben Baldew: Thank you, Dominic, and good morning, everyone. Q2 results show that pricing and productivity are working, retail disruptions are normalizing, and cash generation remains strong. Turning to slides 6 and 7, organic revenue declined 2.9% in the quarter, broadly in line with retail sell-out trends. As expected, the inventory destocking quarter and order timing impacts that affected Q1 results have now largely normalized. Volume declined 5.9%, primarily reflecting the retailer disruptions we discussed previously. Importantly, we believe those headwinds are now largely behind us. Shelves have been replenished, promotional activity is resuming, and we expect the impact on volume trends to moderate as we move through the H2. Price mix contributed 3% to growth during the quarter, reflecting the successful implementation of our planned price increases and a modestly favorable mix. Moving down to P&L. Gross margin increased 110 basis points, marking a return to year-on-year expansion.

Ruben Baldew: Thank you, Dominic, and good morning, everyone. Q2 results show that pricing and productivity are working, retail disruptions are normalizing, and cash generation remains strong. Turning to slides six and seven, organic revenue declined 2.9% in the quarter, broadly in line with retail sell-out trends. As expected, the inventory destocking quarter and order timing impacts that affected Q1 results have now largely normalized. Volume declined 5.9%, primarily reflecting the retailer disruptions we discussed previously. Importantly, we believe those headwinds are now largely behind us. Shelves have been replenished, promotional activity is resuming, and we expect the impact on volume trends to moderate as we move through the H2. Price mix contributed 3% to growth during the quarter, reflecting the successful implementation of our planned price increases and a modestly favorable mix. Moving down to P&L. Gross margin increased 110 basis points, marking a return to year-on-year expansion.

Speaker #1: Turning to slides 6 and 7, organic revenue declined 2.9% in the quarter, broadly in line with retail sell-out trends. As expected, the inventory destocking and quarter-end order timing impacts that affected first-quarter results have now largely normalized.

Speaker #1: Volume declined 5.9%, primarily reflecting the retailer disruptions we discussed previously. Importantly, we believe those headwinds are now largely behind us. Shelves have been replenished, promotional activity is resuming, and we expect the impact on volume trends to moderate as we move through the second half.

Speaker #1: Price mix contributed 3% to growth during the quarter, reflecting the successful implementation of our planned price increases and a modestly favorable mix. Moving down the P&L, gross margin increased 110 basis points, marking a return to year-on-year expansion.

Speaker #1: Pricing and productivity, more than enough, offset inflation, demonstrating the effectiveness of our cost management programs. While there were also some phasing benefits that will reverse later this year.

Ruben Baldew: Pricing and productivity more than offset inflation, demonstrating the effectiveness of our cost management programs, while there was also some pacing benefits that will reverse later this year. Year-to-date productivity initiatives have offset more than 60% of inflation, keeping us firmly on track towards our EUR 200 million savings target. Importantly, our approach to pricing today is very different from what it was during the peak inflation period. in 2022 and 2023, we priced ahead of inflation to protect margin. This year, our aggregate pricing remains below inflation, with productivity funding the difference. We believe this approach strikes a better balance between protecting profitability and maintaining competitiveness in the marketplace. While we continue to expect some near-term elasticity pressure following recent pricing actions, we remain encouraged by the competitive response we've seen thus far.

Speaker #1: Year-to-date productivity initiatives have offset more than 60% of inflation, keeping us firmly on track towards our €200 million savings target. Importantly, our approach to pricing today is very different from what it was during the peak inflation period.

Speaker #1: In 2022 and 2023, we priced ahead of inflation to protect margin. This year, our aggregate pricing remains below inflation, with productivity funding the difference.

Speaker #1: We believe this approach strikes a better balance between protecting profitability and maintaining competitiveness in the marketplace. While we continue to expect some near-term elasticity pressure following recent pricing actions, we remain encouraged by the competitive response we've seen thus far.

Speaker #1: Turning to SG&A, advertising and promotion spending was essentially unchanged year on year, while indirect expenses increased by just over $8 million. Most of that increase reflects the normalization of incentive compensation. As a reminder, during the second quarter of last year, bonus accruals were reversed, making compensation a source of income in the period and creating a difficult year-on-year comparison this year.

Ruben Baldew: Turning to SG&A, advertising and promotion spending was essentially unchanged year on year, while indirect expenses increased by just over EUR 8 million. Most of that increase reflects the normalization of incentive compensation. As a reminder, during the Q2 of last year, bonus accruals were reversed, making compensation a source of income in the period and creating a difficult year-on-year comparison this year. Excluding the bonus impact, overhead expenses were approximately flat versus prior year as productivity savings largely offset inflation and targeted reinvestment. While we also saw a timing benefit. Adjusted EBITDA declined 4.3% in the quarter. Please note that the bonus normalization represented a headwind of more than 7% to adjusted EBITDA across both COGS and SG&A. Adjusted EPS was EUR 0.39 down $0.01 versus the prior year period.

Speaker #1: Excluding the bonus impact, overhead expenses were approximately flat versus the prior year, as productivity savings largely offset inflation and targeted reinvestment. We also saw a timing benefit.

Speaker #1: Adjusted EBITDA declined 4.3% in the quarter. Please note that the bonus normalization represented a headwind of more than 7% to adjusted EBITDA across both COGS and SG&A.

Speaker #1: Adjusted EPS was €0.39, down €0.01 versus the prior year period. Turning to cash flow on Slide 8, our adjusted free cash flow conversion ratio improved to 49% in the first half of the year, compared to 43% in the prior year period.

Ruben Baldew: Turning to cash flow on slide eight, our adjusted free cash flow conversion ratio improved to 49% in the H1 of the year, compared to 43% in the prior year period. Our strong cash generation supported EUR 20 million dividend payments during the quarter, bringing year-to-date dividends paid to EUR 41 million. As announced, our board has also declared a quarterly dividend of $0.17 per share, payable on 27 August. During the quarter, we suspended share repurchases and shifted our capital allocation priority towards reducing net debt and leverage. While our balance sheet remains healthy and our leverage is well within our comfort range, we believe a lower leverage profile will enhance our financial flexibility, broaden our potential investor base, and reduce interest expense over time. in July, we further strengthened our capital structure by refinancing EUR 800 million of notes through the issuance of new long-term dated debt.

Ruben Baldew: Turning to cash flow on Slide 8, our adjusted free cash flow conversion ratio improved to 49% in the H1 of the year, compared to 43% in the prior year period. Our strong cash generation supported EUR 20 million dividend payments during the quarter, bringing year-to-date dividends paid to EUR 41 million. As announced, our board has also declared a quarterly dividend of $0.17 per share, payable on 27 August. During the quarter, we suspended share repurchases and shifted our capital allocation priority towards reducing net debt and leverage. While our balance sheet remains healthy and our leverage is well within our comfort range, we believe a lower leverage profile will enhance our financial flexibility, broaden our potential investor base, and reduce interest expense over time. in July, we further strengthened our capital structure by refinancing EUR 800 million of notes through the issuance of new long-term dated debt.

Speaker #1: Our strong cash generation supported €20 million of dividend payments during the quarter, bringing year-to-date dividends paid to €41 million. As announced, our board has also declared a quarterly dividend of $0.17 per share, payable on August 27.

Speaker #1: During the quarter, we suspended share repurchases and shifted our capital allocation priority toward reducing net debt and leverage. While our balance sheet remains healthy and our leverage is well within our comfort range, we believe a lower leverage profile will enhance our financial flexibility, broaden our potential investor base, and reduce interest expense over time.

Speaker #1: In July, we further strengthened our capital structure by refinancing €800 million of notes through the issuance of new long-term debt. The transaction was leverage neutral and allowed us to extend our maturity profile while also increasing the size of our revolving credit facility.

Ruben Baldew: The transaction was leverage neutral and allowed us to extend our maturity profile while also increasing the size of our revolver credit facility. We now have no meaningful debt due until 2032. Turning to slide nine and our 2026 outlook. We continue to expect full-year results to be in line with the guidance we provided last quarter. Specifically, we continue to expect organic revenue to decline between 2% and 5% and constant currency adjusted EBITDA to decline between 5% and 10%. While our year-to-date performance has been encouraging, we remain mindful of the uncertainty associated with consumer elasticity following our recent pricing actions. We have begun to see competitors respond to our pricing, which is consistent with historical patterns. Although this is good news, it remains too early to determine the ultimate impact of those responses on volumes and market dynamics.

Ruben Baldew: The transaction was leverage neutral and allowed us to extend our maturity profile while also increasing the size of our revolver credit facility. We now have no meaningful debt due until 2032. Turning to Slide 9 and our 2026 outlook. We continue to expect full-year results to be in line with the guidance we provided last quarter. Specifically, we continue to expect organic revenue to decline between 2% and 5% and constant currency adjusted EBITDA to decline between 5% and 10%. While our year-to-date performance has been encouraging, we remain mindful of the uncertainty associated with consumer elasticity following our recent pricing actions. We have begun to see competitors respond to our pricing, which is consistent with historical patterns. Although this is good news, it remains too early to determine the ultimate impact of those responses on volumes and market dynamics.

Speaker #1: We now have no meaningful debt due until 2032. Turning to slide 9 and our 2026 outlook, we continue to expect full-year results to be in line with the guidance we provided last quarter.

Speaker #1: Specifically, we continue to expect organic revenue to decline between 2% and 5%, and constant currency-adjusted EBITDA to decline between 5% and 10%. While our year-to-date performance has been encouraging, we remain mindful of the uncertainty associated with consumer elasticity following our recent pricing actions.

Speaker #1: We have begun to see competitors respond to our pricing, which is consistent with historical patterns. Although this is good news, it remains too early to determine the ultimate impact of those responses on volumes and market dynamics.

Speaker #1: In addition, while our inflation outlook remains in the mid-single-digit range, we expect inflation to finish towards the higher end of that range. Most of the increase is expected in the fourth quarter, where our hedge coverage was lower entering the year.

Ruben Baldew: In addition, while our inflation outlook remains in the mid-single digit range, we expect inflation to finish towards the higher end of that range. Most of the increase is expected in the Q4, where our hedge coverage was lower entering the year. We will address this inflation through pricing, and we are confident that we will be able to secure any incremental pricing that we may need to take while remain competitive. As I noted earlier, we are pricing through much less of the inflation and relying more heavily on our robust productivity program. We intend to continue that approach in 2027 and beyond. This is allowing us to better manage our relative price premium. In the recent weeks, we have seen competition taking additional pricing actions in the market, and this gives us further confidence to also take additional pricing actions starting by the end of this year.

Speaker #1: We will address this inflation through pricing, and we are confident that we will be able to secure any incremental pricing that we may need to take, while we remain competitive.

Speaker #1: As I noted earlier, we are pricing through much less of the inflation and relying more heavily on our robust productivity program. We intend to continue that approach in '27 and beyond.

Speaker #1: This is allowing us to better manage our relative price premium. In recent weeks, we have seen competition taking additional pricing actions in the market, and this gives us further confidence to also take additional pricing actions, starting by the end of this year.

Speaker #1: However, given the timing of these actions, we expect the main benefit of that will come through in 2027. And we're not only focused on price but also the quality of the price-value spectrum.

Ruben Baldew: However, given the timing of these actions, we expect the main benefit of that will come through in 2027. We're not only focused on price, but also the quality of the price value spectrum. We are in a better position than in 2023 from this perspective as well. Our product superiority was approximately 40% in 2023, and it's now closer to 60%. Our innovation moved from approximately 4% of net sales in 2023 to 6% this year. Turning to adjusted EPS, we have updated our outlook to reflect the impact of our recent refinancing transaction and higher variable rates. We now expect adjusted EPS to be in the range of EUR 1.38 to EUR 1.53, compared to our prior range of EUR 1.47 to EUR 1.62. This revision is entirely attributable to higher interest expense and does not reflect any change in our operating outlook.

Ruben Baldew: However, given the timing of these actions, we expect the main benefit of that will come through in 2027. We're not only focused on price, but also the quality of the price value spectrum. We are in a better position than in 2023 from this perspective as well. Our product superiority was approximately 40% in 2023, and it's now closer to 60%. Our innovation moved from approximately 4% of net sales in 2023 to 6% this year. Turning to adjusted EPS, we have updated our outlook to reflect the impact of our recent refinancing transaction and higher variable rates. We now expect adjusted EPS to be in the range of EUR 1.38 to 1.53, compared to our prior range of EUR 1.47 to 1.62. This revision is entirely attributable to higher interest expense and does not reflect any change in our operating outlook.

Speaker #1: We are in a better position than in '23 from this perspective as well. Our product superiority was approximately 40% in 2023, and it's now closer to 60%.

Speaker #1: And our innovation moved from approximately 4% of net sales in '23 to 6% this year. Turning to adjusted EPS, we have updated our outlook to reflect the impact of our recent refinancing transaction and higher variable rates.

Speaker #1: We now expect adjusted EPS to be in the range of 1 euro 38 to 1 euro 53 compared to our prior range of 1 euro 47 to 1 euro 62.

Speaker #1: This revision is entirely attributed to higher interest expense and does not reflect any change in our operating outlook. Over time, we expect to offset much of this impact through continued debt reduction and lower leverage.

Ruben Baldew: Over time, we expect to offset much of this impact through continued debt reduction and lower leverage. In closing, we are encouraged by our H1 performance and the progress we are making across the business. We have strengthened our foundation, improved execution, and begun to shift our focus towards accelerating commercial performance. With leading brands, favorable category dynamics, significant productivity opportunities, and a clear value creation agenda, we remain confident in our ability to unlock substantial long-term value for shareholders. We look forward to sharing more of that at our Analyst and Investor Day this fall.

Speaker #1: In closing, we are encouraged by our first-half performance and the progress we are making across the business. We have strengthened our foundation, improved execution, and begun to shift our focus toward accelerating commercial performance.

Speaker #1: With leading brands, favorable category dynamics, significant productivity opportunities, and a clear value creation agenda, we remain confident in our ability to unlock substantial long-term value for shareholders.