Consumer environment and 2027 outlook
Q: Andrew Lazar with Barclays asked about the current state of the consumer in key regions.
A: Dirk Van de Put noted that emerging markets remain resilient, Europe is stable but cautious, and North America remains soft with a K-shaped economy.
Q: Andrew Lazar with Barclays asked about the puts and takes for the 2027 EPS outlook.
A: Amit Banati stated the company is maintaining its 2026 outlook and remains confident in strong EPS growth for 2027, driven by volume-led growth, emerging market strength, and productivity savings.
Q: Alexia Howard with Bernstein asked about the sales growth outlook for 2027.
A: Amit Banati noted it is premature to provide 2027 sales guidance but emphasized the company is focused on driving volume.
Regional performance and pricing
Q: Peter Galbo with Bank of America asked about the North American strategy regarding pricing and volume.
A: Luca Zaramella highlighted solid Q3 performance, share gains, and refined promotion strategies, noting they will be selective with pricing in 2027.
Q: Peter Galbo with Bank of America asked about pricing expectations in Europe.
A: Luca Zaramella explained that pricing appears light due to lapping prior year increases, but the business remains focused on GP dollar growth.
Q: Chris Carey with Wells Fargo Securities asked about the durability of volume growth in Latin America.
A: Luca Zaramella stated that Argentina is the primary volume drag, but excluding that, performance is positive, with Brazil chocolate showing improvement.
Q: Chris Carey with Wells Fargo Securities asked for color on Q4 expectations.
A: Amit Banati stated the company expects continued volume mix growth and strong gross profit and OI dollar growth.
Q: Alexia Howard with Bernstein asked if negative price growth in Europe would continue.
A: Luca Zaramella confirmed that pricing will continue to be impacted by lapping prior year increases for the next couple of quarters.
M&A and cocoa costs
Q: Rob Dickerson with U.S. Bancorp asked about the rationale for the Undercover Snacks acquisition.
A: Dirk Van de Put described the brand as a healthy, gluten-free, and allergy-friendly product that is highly incremental to the portfolio.
Q: Rob Dickerson with U.S. Bancorp asked for a perspective on cocoa costs.
A: Dirk Van de Put noted the market is in a different position than in 2024, with a projected 500,000 tonnes surplus for the 2025/2026 cycle and sufficient supply to absorb potential deficits.
Q: Tom Palmer with JPMorgan asked about the cost environment regarding freight, fuel, and ingredients.
A: Dirk Van de Put acknowledged inflation in dairy, oil, and packaging but expressed confidence in 2027 EPS growth supported by productivity programs.
Q: Tom Palmer with JPMorgan asked about M&A appetite.
A: Dirk Van de Put stated the strategy remains focused on bolt-on acquisitions in the $0.5 billion to $1 billion range.
Gross profit and emerging markets
Q: Max Gumport with BNB asked what drove the gross profit delivery.
A: Amit Banati cited strong volume growth, productivity programs, and the timing of lower cocoa costs.
Q: Max Gumport with BNB asked about the upside for distribution in emerging markets.
A: Luca Zaramella noted that the universe of point of sales is growing and there is still 25% numeric distribution runway in markets like China, India, and Brazil.
