Kevin Grundy

Luc defended the elevated payout as transitory pending gross-margin recovery and reaffirmed the decade-long dividend-growth commitment.

Linda said low-income consumers under additional pressure, requires right price-pack architecture. Have made selective price investments already in trash and home care. RGM capabilities enable faster, more targeted adjustments. Private label up only 0.1 share point, consumers still want brands. Won't get in position of losing significant penetration because price is out of whack. Strong margin position funds investments if needed.

Luc confirmed $0.90 add-back to FY26 EPS gives run-rate for FY27. Linda said environment playing out as expected (consumer, categories, competitive activity all in line). Nothing changed in confidence. Only adjustment was ERP implementation blip. Right investment level at ~11% advertising/sales promotion.

Luc said essentially at 18% once noise settles, should be there by next year (FY27). Then continue 25-50bps expansion. Drivers: continued gross margin focus + SG&A productivity from ERP (no productivity benefit captured yet). Linda added AI investments already embedded, transformation creates virtuous cycle.

Linda said priority is delivering strong earnings in uncertain environment, then competing in marketplace. Strong balance sheet and cash flow ready for opportunities at right value. But job one is ensuring core is healthy.

Linda said requires consumers feeling certain/strong employment to trade up again. Confirmed low end of 3-5% fair in steady-state macro. Currently volume growth offset by promo. Open question is timing of macro recovery.

Luc emphasized continuity on financial discipline and capital allocation. Focus now on growth and transformation given restored margins. ERP implementation is the near-term priority.

Kevin declined to provide specific sourcing breakdown but emphasized near-shoring/on-shoring efforts. No major disruption expected.

Rick said consumers are pressed with elevated elasticities, so CHD is fighting inflation with productivity and promotion optimization before resorting to pricing.

CEO acknowledged portfolio shifted from 40-60 to 60-40 premium/value mix but sees multiple tailwinds: high-end consumer still strong, problem-solution brands transcending categories, barbell demand at club.

CEO believes AI recommendations will favor strong brands with good reviews and sales velocity. CHD's agility (2% to 23% e-com in 10 years) is competitive advantage vs larger peers.

CEO emphasized promotions already locked in for H2. Back-half promotional calendar set 6-9 months ago. Laundry share gains continuing in June and July driven by promotion plus innovation (Deep Clean).

CEO committed to running vitamin business at full effort during review. Retailers want VITAFUSION to succeed. Decision partly driven by disproportionate management time vs business size.

CEO indicated more divestitures possible if businesses don't hit KPIs. Vitamins decision deferred to post-Q2. Annual review is ongoing, not one-time.

CFO highlighted team execution, innovation focus, and M&A discipline as early strengths. Plans to contribute experience while learning the business.

Laguarta said every option is open and flagged accelerating U.S. refranchising, but gave no view on a North America/International or snacks/beverages split.

Laguarta cited category volume growth and share gains as wins, but conceded Q2 volume missed on a weaker consumer (gas prices) and delayed price-investment execution now resolved.

Steve confirmed the guidance outlook is unchanged: 2-4% full year with upper end in the back half, balanced first half / second half financial performance.

Ramon acknowledged broader GLP-1 adoption ahead; outlined multiple responses: portion control (70%+ food already single serve), hydration via Gatorade/Propel, fiber for digestive needs, protein, and new cooking methods like air frying.

Ramon described multi-pronged energy strategy: CELSIUS ownership stake, distribution value creation, Starbucks JV for energy-plus solutions, and potential future innovation combining sports drinks and energy.

Ramon framed recast as growth-oriented: separating FOBO vs COBO internationally for focus, integrating Quaker into food segment as already operating, and creating NA integration for efficiency.

Ramon reaffirmed 4-6% long-term organic growth and high-single-digit EPS targets, pointing to strong 5-year track record of above-algorithm delivery.

Jejurikar argued adjacencies and core activation can restore high growth rates and cited FabricAir, power oral care and Zevo, but did not directly answer the portfolio reconsideration question.

Andre deflected the gross margin question, saying the exact margin outcome matters less than whether the underlying activity system drives top line and earnings growth. Would not project FY27 margins.

Shailesh described the 'day one loop' review, defended daily-use focus, cited restructuring exits, flagged health and beauty as ongoing opportunity areas.

Andre noted private label volume share flat, value share down; cited dissatisfaction metrics as innovation runway; Tide evo premium growth example.

Andre cited Turkey pressure, India mid-single digit growth, LatAm stabilizing; no FY26 guide offered.

Jon ruled out growth-driven M&A due to #1 positions; personal healthcare and specialty beauty remain the two open categories.

Andre tied the softer 28-of-top-50 read to pricing and timing, and reframed household penetration and volume share as the real KPI.

Noel expressed satisfaction with advertising ROI, citing better measurement via data and digital, and framed higher spend as long-term brand-health investment.

Wallace reported Prime 100 results ahead of plan. Science-driven, vet-endorsed brand positioned in derm space. Currently watch-and-learn mode for potential global application. Profitable business with supply chain improvements underway.

Wallace acknowledged categories at low levels vs 4-5% in 2024. Believes mostly cyclical vs historical averages but taking steps to accelerate regardless. Not waiting for market recovery.

Wallace acknowledged North America margin restoration as significant priority through premium innovation, broader category focus beyond Oral Care, and productivity initiative resource allocation.

Sutula detailed China-US bilateral tariffs as primary source, roughly linear Q2-Q4. CL reduced China supply chain exposure. Mitigation via productivity, RGM, formulation, sourcing.

Wallace emphasized efficiency over incremental spend, programmatic media, personalization, data analytics driving improving ROIs. Ad spend up 9% this quarter on top of 80% in year ago.

Peters said the brand and product portfolio is second to none, the balance sheet and free cash flow are the strongest in the industry and underappreciated, and his role is to accelerate margin-improvement and organic-growth actions, drawing on nearly 20 years operating in cyclical environments.

Cunningham emphasized the strong balance sheet and normalized free cash flow supporting an increasing dividend and lower future capex. Whiting called questions about dividend capacity 'borderline absurd' given free cash flow, and reiterated he does not expect dramatic pricing changes next year, relying on innovation and revenue growth management.

Lawson acknowledged not much new on structural vs cyclical debate. GLP-1 oral pill potential is future headwind but not current. Trade-down is additional cyclical evidence. Brown-Forman's own performance improving even if environment hasn't. Leanne declined to narrow guidance range given continued volatility, noted H2 will see normalization of Blackberry and distributor loading plus New Mix comps.

Lawson confirmed more resources being allocated to emerging markets including Brazil, Turkey, UAE, India, and Asia. Not reallocating away from U.S. which remains most profitable. Japan own distribution now in place for about a year. India identified as meaningful opportunity needing incremental resources. Acknowledged difficulty predicting whether established markets return to 4-5% TDS growth.

Lawson noted U.S. whiskey pricing basically flat with big players being rational. Tequila pricing down 2% but not collapsing. Highlighted 80% of U.S. spirits dollar growth in 375mL and 50mL sizes as cyclical consumer pressure signal. Leanne detailed 30+ years in RTD business with New Mix expanding to U.S. and Jack & Coke geographic expansion continuing.