Thank our morning, everyone. you, Steve, by and financial good pandemic. outlook and results Clearly, affected have the been
to So the do takes. and my I’ll puts through financial best sort
protocols. temperature Slide since invested the began. incremental our Employee #XX financial supplies, in have priority in outlines safety crisis safety approach top area, and is and this cleaning checks, the we
working Additionally, we remotely. technology information invested facilitate to in
people production quickly, supply with benefits. had to our with on focusing bonuses and market rewarding the To we’ve and increase SKUs priority food,
We’ve we’ve flexibility. to as to our also invested ensure worked in logistics addition, get to food customers In financial possible. as quickly
been year, leverage already this know, more on markets. of we debt environment becomes and focused an and important you had reducing this economic volatile As our recession even financial in
cost We’ve been continue cash We markets debt. of commercial also balances and the rates, around access long-term to built proactive up to world. into have interest locking our good paper lower we our have reducing about
Meanwhile, divestiture, our we to investing one, year-on-year us we in investments did increase But remain and brand-building before crisis us in has activity some quarter the the future. forced defer The in commercial second-half. March. mostly the excluding to really the to hit committed crisis
our there a financial let’s Now my few for so best moving them. turning bucket results Slide to quarter. the #XX, do Obviously, are look I’ll parts, to at
Even First, was sales our bass of impact, continues organic pandemic ahead our even to expectations. very the and our excluding well. before net business growth strong, perform
had our we a toward gross accelerated ago. shifts months of and XXXX promotion spite margin in announced objective advertising we investments We stabilizing few emerging off incremental making towards were importantly, kicked profit that also mix And had markets. progress of the
the The is was behind our at already divestiture XXXX. us, that July of second end something major factor
this As we had business, owing is for its a divested to indicated Girl Scout cookies. previously, outlier seasonal quarter one
QX, divestiture growth in So net X% growth XX%. operating our by negative the impacted sales and our to by about year-on-year profit XX%
decisions as increased and in additional for The drove half is demand made to safety, base growth The from March. foods early growth our consumption and logistics due affected quarter costs organic as packaged margins contributed sales in at The approximately This IT, next well one. started low growth at-home net investments around that sales business. probably of in surge our increased the factor profit pandemic.
crisis sharp our results. a did strengthening impact As dollar the much you trigger on know, of creating key currencies, negative against foreign reported larger-than-expected a the U.S.
planned, pension on to per at benefit outstanding shares the our debt as our the asset float while our Lastly, prioritize year-on-year And bid expected share, fund year. earnings decrease higher of pension reduction we from valuation expense expense beginning saw interest the higher. did decision
a earnings feel ahead result well these moment. timing-related, as that is pace, of we The per all largely but an share in that discuss is of in of came we’ll
going pace, which is economic well as Importantly, slowdown. prioritize an our cash flexibility also flow into of important is financial ahead we
So and the through results bit are in the more pandemic you them a other factors, detail. walk we’ll by affected but
with grew base of Slide in accelerating the of base organic In top year-on-year sales drove of again. the at was excluding start impact business Let’s sequentially other pandemic the net rate X%. quarter. on We this the suggesting yet basis, growth impact, growth even #XX. to sales growth, estimate words, half our On a growth that X% surged our about pandemic its about the business net P&L at
distribution as X%, surged quarter the Multipro a pandemic-related to by strong price portion as Volume West negative Africa. shift a growth mix the for orders, quarter. reason in our more the particularly is our well big mix in towards This led Multipro, business slightly than of was by
for the negative, while positive. total fact, company remained mix pricing was In the
Our all divestiture groups The foods and and impact sales across noodles organic regions all other. growth we four region: discussed. category was net across and each already cereals, snacks, four frozen within
two’s negative are impact, impact negative, quarter a like Now like X%. quarter less impact that partial to X% looking only XXXX’s Girl past quarter more and four to three, be Scout divestiture X% quarter X% with we negative impact: this season, will of lapping
also one, of dollar a as even pandemic Based headwind this expect mentioned, currencies hit. quarter turned be negative more on to can I in key currency on we strengthened As forward. forward rate, against the us more going as the
on gross #XX. margin Slide Now to profit let’s turn
level of year-on-year. previously, gross is towards mix a requires input towards profit not within As in we’ve markets finishing as arm some West sequentially as those mix mix markets businesses. at shift These offsetting goal stable our underlying emerging the markets our discussed do This well shifts are Africa. of in not improve as our natural operations a notably they most any continue to a and inflation, margin, portfolio, XXXX developed costs shifts our cannibalize to concern, distribution
To productivity pack offset management, notably growth impact, formats. variety specific working the price building on-the-go that revenue initiatives, on been we’ve most several in know in lines, and addressing of you through emerging levers, margins markets, a scale realization product through
continue While QX in this we did usual, as business but area. progress make was anything to
the divested profit businesses, can you by nearly flat I our as aided just actions year-on-year absence listed. the margin was the As see, as of well gross
was Some progress of input cost this by inflation. offset
Remember, year pandemic. as we costs, gross during continue This crisis incur costs cleaning, and around towards full-year logistics we goal. out employee safety food variability incremental and investments will profit incremental progress and of and related production will most create to and our donations margin, the the to we make hedged benefits, but some
structure #XX. capital to turn and flow Let’s cash on Slide
our slide, businesses July. one, significantly strong cash despite quarter the in the was divested year-on-year, on we of absence flow shown last As up
profit capital investments and inventory restructurings. it of pandemic. management performance, strength outlays this underlying good of was cash in reflects reduced during capital But to Some depletion timing related it was of and working delays from also the some four quarter and our
The slide next our net the chart debt on shows position.
us see You down divestiture last balances. a combination carry and durable that can enabled proceeds of year’s pay have higher-than-usual flow and debt to cash cash
you’ll quarter-end. was fact, position billion that our at $X In cash over see
environment. This operating proactive financial in approach is a uncertain simply to an flexibility
liquidity Our good. is
$X.X In billion balances, we to paper funding addition facilities. good have and access retained cash to backup high we our commercial of
We sufficient are in solid flexibility. financial shape with
discuss with our now starting full-year Let’s Slide outlook #XX.
really outlook time viewed Our three be periods. should in
because how in because First, on the our of pandemic. underlying of performing demand there these results brought by of one. both business are was the the quarter and Clearly, results actual surge actual came better-than-expected, in
has The quarter Next, there obviously two. persisted. is pandemic
be we consumption. leverage logistics soft. have channels sales partly our far food operating offset There as in positive elevated costs consumption plants at-home from at lift, remains moderated, by levels growth of away-from-home do net so. should so may as utilization, even to seen continued has April, And incremental very see We labor and running less high
then is four, quarter quarter year. of there the And three the and second-half
knows this we persist. lockdown consumption can At that sometime with rates how one take channels and albeit back the a correction will related will no recover. course, normal Of prepare best the long away-from-home do markets, of time, is for to in developed pandemics to
to markets, emerging brand-building vulnerable tend we that already weakened. have first-half. be impacts have addition, In whose ready and have be been investments And to increased softness to for other recessionary more we’ll currencies the the potential have and from which in delayed
fact, already in emerging QX. and in saw In slowdowns markets we certain devaluation late currency
So out the and the see shift second-half. to profit and expect first-half we sales of a of into
on are forming second-half. the will prudent think growth that #XX this unusually crisis. through see Organic way question the We is You’ll growth our manage whether and the the to sales the to slows how as Slide plan The strong of guidance it in now, we offset enough is net right we slow much full-year first-half. guidance today.
well they the Currency-neutral, and the opportunities, sales profit sales themselves. to shifting suggest variables adjusted has first-half and some ranges. it weighted more to invest our through buys net and desire Because basis retain and profit investment of operating would first-half high-end our the from of pace full-year to now one, in as flexibility ahead quarter business additional of are our profit some currency-neutral present guidance
a significant it would could volatility or it expect, supply we’ve uncertain First, does you or major As beyond what to not not the would guidance related This this like be economic already warehouse two disruptions. be include any however, or shutdown plant any elements does economic include experienced. something pandemic, macro
what We can now. on we know and we are unprecedented in times, based guide right only
quarter. reflected impact. currencies in And second, in major basis. a remember, both impacted month operating in that emerging by This shocks than X% and is really And a U.S. and currency-neutral negative triggered profit against oil that foreign sales, on late in dollar EPS markets. and developed only the growth growth all net of pandemic X.X% our less in marked one the guidance a of to strengthening The quarter
go A we this full much these exchange recent of the an these had currency quarter have of where magnitude of rates you that dollar can predict can’t would more here, but negative will movements. Obviously, give the from idea impact.
turn businesses. that, major with review of Steve to each let a And back me of our for it
