Overview
- Adjusted EPS for the third quarter was $0.61, topping estimates, while sales of $6.237 billion missed expectations as net sales fell 2.3% and organic net sales slipped 2.5%.
- Full-year adjusted EPS guidance was lowered to $2.50–$2.57, and organic net sales are now expected to decline 3.0%–3.5%, reflecting softer U.S. retail demand and slower growth in Indonesia.
- North America revenue declined 3.8% to $4.641 billion as volume/mix fell 3.5 percentage points, with weakness concentrated in coffee, cold cuts, frozen snacks, select condiments, and Indonesia.
- Profitability deteriorated with gross profit down 9% to $1.99 billion, gross margin down 230 basis points to 31.9%, and adjusted operating income down 16.9% to $1.1 billion.
- The board declared a $0.40 quarterly dividend payable Dec. 26 to holders of record Nov. 28, and the stock traded near its 52-week low around $24.96, down about 2%.