Tate & Lyle PLC — Call Transcript 2026

Good morning, welcome to the conference call for Tate & Lyle's Q3 trading statement. Your speakers today are Nick Hampton, Chief Executive, and Sarah Kuijlaars, Chief Financial Officer. I will now hand you over to Nick Hampton for some opening remarks. Thank you, operator. Good morning, everyone, and thank you for joining this third 1/4 conference call. I will start by making a few remarks on our performance and strategic progress, and then we'll open it up to Q&A. Trading in the third 1/4 was in line with our expectations and consistent with the first 1/2. Our guidance for the full year remains unchanged. On a pro forma basis and in constant currency, revenue was 2% lower in the 1/4, reflecting continued muted market demand, with performance in all regions broadly in line with the first 1/2. On a reported basis, which includes CP Kelco from the date of acquisition on the 15th of November 2023, group revenue was 15% higher. For the 9 months to the 31st of December 2023, on a pro forma basis, revenue in the Americas was 2% lower, with modestly higher pricing more than offset by lower volume. In Europe, Middle East and Africa, lower pricing resulted in 5% lower revenue, while in Asia Pacific revenue was up 1% driven by higher volumes. Turning to the renewal of customer framework agreements for the 2024 calendar year, which is well advanced. With our number 1 priority returning the business top line growth, we have selectively chosen to invest to drive volume and revenue growth. This is the right thing to do for the business, giving us a stronger platform for future growth. We are pleased with the engagement from customers to our expanded offering. We are making good progress on the series of actions we set out with our interim results to drive top line growth and improve performance. Let me give you 1 or 2 examples of progress. We continue to accelerate the rollout of our solutions chassis program with a focus on mouthfeel. We launched 2 new mouthfeel chassis in the 1/4, 1 to improve the stability of pourable salad dressings and another to support egg reduction. The level of customer engagement on our enlarged portfolio remains high, with the value of cross-selling opportunities in our new business pipeline increasing by more than a third in the 1/4. Revenue synergies from the CP Kelco combination are growing in line with our expectations. We remain confident that run rate cost synergies will exceed our target of $50 million by the end of the 2026 financial year. Finally, our 5-year, $200 million productivity program continues to operate well, with further savings delivered in the 1/4. Overall, I am pleased with the progress we are making. There is a real determination and focus across the business to deliver on the actions we are taking, and I am confident that in the near term they will improve the top line performance of the business. We will give you more detail of our progress when we announce our full year results in May. At that time, as usual, we will also provide guidance for the 2027 financial year. To conclude, with our leading positions in sweetening mouthfeel and fortification, we remain well placed to benefit from the global trends towards healthier and more nutritious food and drink. With the breadth of our portfolio, our formulation expertise and the targeted investments we are making to accelerate customer wins in key growth areas, we are well positioned to drive profitable revenue growth over time. With that, Sarah and I would be happy to take any questions. Thank you, sir. If you wish to ask a question at this time, please signal by pressing star 1 on your telephone keypad. Please make sure the mute function on your phone is switched off to allow your signal to reach our equipment. If you wish to cancel your request, please press star 2. Again, it is star 1 to ask a question. We will now take our first question from Karel Zoete from Kepler Cheuvreux. Please go ahead. Yes. Good morning, all. Thanks for taking the question. I've 2 questions. The first 1 is in regards to the price investment you mentioned to sustain volume growth or to improve volume growth. Can you be a bit more specific which markets you decided to invest and then what that might mean for pricing going forward? The other question is around fibers. I think more and more evidence or discussions in the public domain about fiber being the new protein, et cetera. What kind of engagement do you see with your customers on the fiber ingredients you sell? Thank you. Okay, Karel. Let me pick up on the fiber question first. I think it's an important 1, and I'll let Sarah handle the selective view on pricing. Look, I mean, fiber clearly is a big global trend. You know, in fact, there was an article yesterday in Bloomberg about fibermaxxing, and we're seeing, you know, very encouraging progress with customers on our fiber portfolio, both products going into market, locally, mostly in the U.S. market, where, you know, in both beverages and dairy, we're seeing fiber fortification as a trend and increasing their pipeline for fiber is growing. It's a global trend as well, and we're seeing that trend across Europe and Asia too. you know, I expect that to continue as we think about the continued desire to create more nutritious processed foods, especially in a world where people have a significant shortfall of fiber in their diets. All of the nutritional trends we're seeing point towards Fiber addition is a strong growth opportunity for us going forward. Thanks, Nick. Karel, good morning. When you think about, you know, our framework agreements, I think it's worth taking a step back. We're all very aware that market demand remains muted. As we've stated, you know, our number 1 priority is to deliver the top line growth, so that's volume and mix driven top line growth. We've taken the decision to set our business up stronger for the future, is that we're selectively investing to drive that volume momentum and the revenue growth. We always want to think about this as, you know, it would be very selective, so it's by product, by customer, by region to ensure that we're setting ourselves up for that growth given we now have the broader portfolio following the acquisition of CP Kelco. Okay, thank you. Thank you. Our next question is from Ranulf Orr from Citi. Please go ahead. Hi. Thanks for taking the question. Just 1 from me. I mean, you talked a bit in the past about the sort of 4Q improvements. Could you just provide a bit of an update on that? You know, what's going well and where you have visibility on some of those sort of factors coming through? Thank you. You mean in the 4th 1/4? Yes. Yeah. I just wanted to get clarity on the question. Look, so, I mean, I think we're seeing encouraging signs of increased customer engagement on reformulation. It's very clear the sentiments in the market is my customers at least are increasingly thinking about the need to put price back in to drive momentum. But we're not assuming any improvements in market outlook in the 4th 1/4 in our underlying guidance for this financial year. What we saw in the third 1/4 was, you know, consistent performance from the first 1/2 and very clearly in line with our expectations. So far as we've entered the 4th 1/4, we'd say the same. Always, as you go from Q3 to Q4 across a calendar year, you get some kind of pluses and minuses between December and January from a phasing perspective. We're seeing the kind of customer demand that we would be expecting given the underlying guidance given for this year. Okay. That's very clear. Just 1 more, if I may. On the price investments for the year ahead, can you give any kind of quantification or indication of the scale of those, maybe in relation to the current year? Thank you. Look, I mean, I think we haven't finished yet because we're still closing out the renewal of the agreements for this calendar year. We'll give you a precise view on that when we get to our main results as things have settled down. I think it's fair to say that doing a little bit more this year than we did in this calendar year than we did in the last calendar year to ensure that we're really driving momentum with key customers. You're obviously offsetting that with real focus on productivity and the benefits of the combination coming through in both cost synergies and the revenue synergies, of course. Let's not forget, this is now the second year of the new business. This is the first year we're entering as 1 combined business. Thank you. We'll move to our next question from Joan Lim from BNP Paribas. Please go ahead. Hello. Morning, all. Quite a few of my questions have been asked, but maybe just, could you provide more color on trends by regions and category? Like for example, which category has been doing well or you're seeing more uptake with customers? You mentioned a bit about fiber. You know, is that more driven by innovation in beverages, for example, and supported by GLP-1 users taking more fiber? My second question is, do you have any indication of how ForEx will be like for the next year? Lastly, maybe an update on CP Kelco's volume and margin recovery, please. Thank you. Okay. Let me give you some headlines on the overall shape of what we're seeing in the market, and then maybe Sarah can pick up on the ForEx and the CPK question. I mean, overall what we saw in the third 1/4 was quite consistent with the first 1/2. You know, in the Americas we're seeing modestly higher pricing more than offset by lower volume. That's very consistent with the volume data that we saw in the first 1/2, where you saw volume down and value driven by pricing, which was, you know, in part to pass through the tariffs at the time, as you remember. That's been pretty consistent. In Europe, volume pretty flattish. Volume mix with, you know, the pricing investment driving lower revenue. In Asia, encouragingly some revenue growth driven by higher volume. Some signs of momentum. I think underlying that though, it is important to say what we're seeing with customers in terms of trends is some clear benefits of the combination flowing through. In the 1/4, the cross-selling pipeline was up over a third, having been strong at the first 1/2. We're seeing double-digit growth in our innovation pipeline to customers. That's driven by some key themes. As we've already talked on the call, we're clearly seeing a focus on fiber fortification across many categories. Dawn, I think it may well be driven by this need for nutritional density, driven by nutritional needs for processed food and the GLP-1 point you made. We're seeing that especially in beverages and dairy in the U.S. you know, in EMEA, we're seeing dairy and beverages being more resilient, bakery and snacks a bit softer. In Asia actually, overall robust category performance. We talked about recovery in China at the 1/2 driven by CPK. beyond fiber fortification, the other trends we're seeing is renovation for value, so, you know, cost efficiency and product renovation. We're also seeing continued focus on sugar reduction and that link to mouthfeel that we talked about at the 1/2 where, you know, as you take sugar out, being able to control the texture and mouthfeel of a product is really important. That's where the combination is really helping us build a stronger pipeline, which we expect to build as we go into next year. Thanks, Nick. and then, next question is about ForEx. Indeed we saw a headwind given the U.S. in the first nine months, which is approximately 2%-3% of revenue, and that we expect to continue. That is partly offset by the strength in Europe. Remember with the acquisition of CPK, we now have a broader footprint, so there's also some impact of (uncertain), et cetera. Overall, you're a headwind in the sort of the 2%-3% on the top line. That's a slightly higher impact on EBITDA given the important contribution from the profitable North American business. Turning to CPK. Clearly the integration continues to go well. Cost synergies well in hand. As Nick has spoken about now obviously the attention on the pipeline growth of those cross sales. It's been really powerful going into the conversation this year as a combined portfolio, fronting up our, you know, the combined commercial staff really demonstrating the ability and the strengthening capabilities of the portfolio, and the stronger together has been very powerful, good to see. Very helpful. Thank you. Our next question is from Seta Sharma from Barclays. Please go ahead. Hi. My question is on the selective investments. How should we think about the margin impact of these re-investments as we move into FY25? Are you viewing this as a one-year re-reset to drive volume recovery or a more structural change in pricing intensity? My second question would be regarding like, to what extent can the ongoing productivity program and CP Kelco cost and revenue synergies can offset the margin impact of these investments? Should we expect net margin pressure or stability as we bridge from FY24 into FY25? Okay. I would think... Let me start by saying, we'll give very clear guidance on fiscal 2027 when we get to our full year results. We need to complete our planning process for next year and see how trading evolves in 1/4 1 of the calendar year. The way I think about it is if you think about the building blocks going to next year, we're clearly because of the market demand remaining muted, putting some selective investments into price, to drive the top line, both volume and revenue. Alongside that, we've got clear offsets from productivity delivery and accelerating the benefits of the CP Kelco combination. Different to last year, we've also got the benefits of the combination flowing through in terms of the pipeline and the cross-selling opportunities to support the framework of renewed renewal. We're confident that that builds a strong platform for growth. Where that leads us to on overall earnings severity and margins, we'll be much clearer about when we get to our full year results. The key here is the quality of the portfolio to build the growing pipeline of business with customers. As we see markets start to improve and the trends that are, you know, our friend from a positioning of the business perspective, we fully expect to drive profitable growth going forward into the medium term. We'll give very clear guidance on the nearer term when we get to our annual results. Thanks for that. Just a follow-up on the fiber thing. Thanks for giving some color on that. Are you seeing a meaningful increase in customer briefs or RSP activity linked to high fiber, high fiber formulations? How does the current pipeline compare with the time last year? If you think about our pipeline in the last 1/4, it grew double digits overall. That is driven by a focus on things like fiber fortification. I think the question though always is at what pace do those pipeline projects convert into innovation in the market? As you know, we've probably seen, you know, we haven't really seen an increase in innovation pace yet, but we're anticipating that coming as these projects start to flow through. Nick, maybe I would just add, it's not simply just adding fiber to a product. With fiber, you really need the mouthfeel, and that's really where it plays to our sweet spot because you really need the appealing mouthfeel to for the fortified product to be successful in the market. Thank you. That's quite helpful. Yeah. Thank you. We'll now move to our next question from Samantha Darbyshire from Goldman Sachs. Please go ahead. Good morning. Thanks for taking my question. I just kind of want to talk about some of the themes you're seeing in the market longer term. We had a lot of feedback at CAGNY last week about clean label reformulation, including away from artificial sweeteners like sucralose and several emulsifiers, some of which I think are in your portfolio. What proportion of products are being reformulated this way? Is the increased customer opportunity that you're seeing with CP Kelco's from fortification and protein and fiber, is that enough to offset this headwind? Are you still seeing structural growth in the way that customers are reformulating with your ingredients? Thank you. Sara, thanks for the question. I mean, all of those trends that we talked about at CAGNY this month actually plays to the reshaping of the portfolio. I think it's important to say that, you know, sucralose clearly is an important part of our portfolio as our artificial sweetener of choice. It's growing in demand. You know, we're selling every kilo of sucralose that we can make because it's the best tasting artificial sweetener out there. It would be also important to say that if there was a shift away from artificial sweeteners, we've got lots of non-nutritive natural sweeteners in the portfolio. Everything from stevia. We're the only company with a all-America supply chain for stevia, for example, through to monk fruits and allulose. We're well placed for the reformulation to more natural and clean label. Emulsifiers actually are part of our portfolio. We do a lot of replacements of emulsifiers, and that's where the CP Kelco portfolio comes in as well. All of the trends that we're seeing people talk about are the trends we really believe the combination of our three core platforms can help customers with. Because that sugar replacement or artificial sweetener replacement we talked about also comes with the need for mouthfeel modulation, as Sara just talked about. The things that we heard from CAGNY are precisely the reason that we repositioned the business the way we have done over the last 5 years. Thank you. I'll move to our next question from Matthew Abraham from Berenberg. Please go ahead. Morning, all. Thanks for taking my questions. I just want to relate to the fiber fortification services you touched on. I was just wondering if you can provide a sense of the margins from those services relative to the rest of the group. If fiber demand does accelerate meaningfully, could there be a broader impact on overall group margins? The second question just relates to the price investment commentary that you provided. Is that a reflection of a perception of improved demand elasticity, or is it more a reflection that demand is such that it requires stimulation through price investment? Thank you. On your first question on fiber, you know, our fiber portfolio generates very nice margins for us. You know, obviously it depends on a customer by customer basis, how much fiber we're using, what other components we're putting in to help with that solution. I think the key is the fiber fortification trend is driving a solutions model where typically that business is stickier business and good margin business. It's certainly helpful in that regard. In terms of your question on price and price elasticity, we're clearly in a world where consumers are more challenged. Food is 20%-30% more expensive than it was pre-pandemic because of all of this, all of the geopolitical challenges we've seen over the last three or 4 years. There clearly is a requirement for some price stimulation to drive demand. More importantly for us, we're trying to balance the way we think about growing our business to make sure we're well positioned for growth through the cycle. In a cycle where demand is more muted, we want to make sure we're stimulating growth so that we're well positioned as markets start to improve. Excellent. Thank you. I'll pass it on. Thank you. As a reminder to ask a question, please signal by pressing star 1. The next question is from Lisa De Neve from Morgan Stanley. Please go ahead. Hi. Thank you for taking my questions. I have 2. First, can we talk a little bit about what you're seeing in APAC? Various players in this reporting season have noted an improvement in China specifically, and I believe your sequential local currency growth is modestly better in APAC. Any color on that would be great. That's 1. Secondly, can you provide us a little bit of color on how your raw materials are trending into this year on average? How should we think about the direction for cost input inflation or deflation? Thank you. Maybe let me pick up the APAC question, and Sara can pick up the input cost 1. I mean, we're encouraged by the progress we're seeing in Asia. As you mentioned, we did see some improvements in China in the first 1/2 and that continued through the third 1/4. I mean, it's difficult to talk about Asia as 1 region. It's such a vast, vast area. We're seeing good progress in China, solid demand in North Asia, across Japan and Korea. That gives us some encouragement for the future. If you look at APAC in the broadest sweep, you know, we've grown our business significantly over the last 5 years. We're, you know, we're now a $500 million business revenue where we were sort of roundabout 105 years ago. It's a huge growth opportunity for us still because there's 60% of the world's population and a lot of the trends we've talked about on the call are true in Asia as well. The opportunity there is very clear. The fact that we're starting to see some stability and improvement is very encouraging as we go into the next 12 months. Thanks, Nick. Lisa, on the raw material, I think it's worth reminding you that we've now got a much broader array of raw materials, post the acquisition of CPK. It's not just corn, but it's also, you know, pectins and seaweed, et cetera. Broadly, the more benign environment, there's not a strong inflationary push coming through there. It's more benign, and we're well-diversified. Thank you. I think it's fair to say we're seeing pretty flat year-on-year. Yeah. -year costs in overall. I mean, there's some ups and downs, but nothing significant. Yeah. Mm-hmm. Thank you. It appears there are currently no further questions. Pardon. We have a follow-up question from Joan Lim from BNP Paribas. Please go ahead. Hello. Sorry, I'm just squeezing in 1 more question because everyone seems to be asking about margins. Nick, you've historically talked about how important it is to protect unit margins. Has this changed? Are you confident of maintaining unit margins this year? I think the focus on unit margins hasn't changed at all. I think in the near term, we're trying to balance all the levers we have to get the business back into top line growth. Doing that in an environment where markets are more sluggish means we're having to make some choices about where we invest and what choices we make. Fundamentally, over time, we expect to focus on maintaining unit margins and using mix to improve margins to sort of quality the portfolio. We're in a cycle at the moment where we're having to make some choices. Okay. It's reassuring to hear that you're confident of maintaining the unit margins. Thank you very much. Thank you. With this, I'd like to hand the call back over to Nick Hampton for any closing remarks. Thank you, operator, and thank you, everybody, for your questions. Just to summarize, trading in the third 1/4 was in line with our expectations and consistent with the first 1/2. Importantly, our guidance for the full year remains unchanged. As we've talked a lot about on the call, our number 1 priority is returning the business to top line growth. We're clear on the actions we're gonna take to improve top line performance of the business in the near term. We remain focused on top line growth, execution, and delivering for our customers. Thank you for your time and questions, and I wish you all a very good day. Thank you. This concludes today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.

Speaker 6: Good morning, welcome to the conference call for Tate & Lyle's Q3 trading statement. Your speakers today are Nick Hampton, Chief Executive, and Sarah Kuijlaars, Chief Financial Officer. I will now hand you over to Nick Hampton for some opening remarks. Good morning, welcome to the conference call for Tate & Lyle's Q3 trading statement. good morning welcome to the conference call for tate & lyle's q3 trading statement Your speakers today are Nick Hampton, Chief Executive, and Sarah Kuijlaars, Chief Financial Officer. your speakers today are nick hampton chief executive and sarah kuijlaars chief financial officer I will now hand you over to Nick Hampton for some opening remarks. i will now hand you over to nick hampton for some opening remarks

Speaker 5: Thank you, operator. Good morning, everyone, and thank you for joining this third 1/4 conference call. I will start by making a few remarks on our performance and strategic progress, and then we'll open it up to Q&A. Trading in the third 1/4 was in line with our expectations and consistent with the first 1/2. Thank you, operator. thank you operator Good morning, everyone, and thank you for joining this third 1/4 conference call. good morning everyone and thank you for joining this third 1/4 conference call I will start by making a few remarks on our performance and strategic progress, and then we'll open it up to Q&A. i will start by making a few remarks on our performance and strategic progress and then we'll open it up to q&a Trading in the third 1/4 was in line with our expectations and consistent with the first 1/2. trading in the third 1/4 was in line with our expectations and consistent with the first 1/2 Our guidance for the full year remains unchanged. On a pro forma basis and in constant currency, revenue was 2% lower in the 1/4, reflecting continued muted market demand, with performance in all regions broadly in line with the first 1/2. On a reported basis, which includes CP Kelco from the date of acquisition on the 15th of November 2023, group revenue was 15% higher. Our guidance for the full year remains unchanged. our guidance for the full year remains unchanged On a pro forma basis and in constant currency, revenue was 2% lower in the 1/4, reflecting continued muted market demand, with performance in all regions broadly in line with the first 1/2. on a pro forma basis and in constant currency revenue was 2% lower in the 1/4 reflecting continued muted market demand with performance in all regions broadly in line with the first 1/2 On a reported basis, which includes CP Kelco from the date of acquisition on the 15th of November 2023, group revenue was 15% higher. on a reported basis which includes cp kelco from the date of acquisition on the 15th of november 2023 group revenue was 15% higher For the 9 months to the 31st of December 2023, on a pro forma basis, revenue in the Americas was 2% lower, with modestly higher pricing more than offset by lower volume. In Europe, Middle East and Africa, lower pricing resulted in 5% lower revenue, while in Asia Pacific revenue was up 1% driven by higher volumes. For the 9 months to the 31st of December 2023, on a pro forma basis, revenue in the Americas was 2% lower, with modestly higher pricing more than offset by lower volume. for the 9 months to the 31st of december 2023 on a pro forma basis revenue in the americas was 2% lower with modestly higher pricing more than offset by lower volume In Europe, Middle East and Africa, lower pricing resulted in 5% lower revenue, while in Asia Pacific revenue was up 1% driven by higher volumes. in europe middle east and africa lower pricing resulted in 5% lower revenue while in asia pacific revenue was up 1% driven by higher volumes Turning to the renewal of customer framework agreements for the 2024 calendar year, which is well advanced. With our number 1 priority returning the business top line growth, we have selectively chosen to invest to drive volume and revenue growth. This is the right thing to do for the business, giving us a stronger platform for future growth. We are pleased with the engagement from customers to our expanded offering. Turning to the renewal of customer framework agreements for the 2024 calendar year, which is well advanced. turning to the renewal of customer framework agreements for the 2024 calendar year which is well advanced With our number 1 priority returning the business top line growth, we have selectively chosen to invest to drive volume and revenue growth. with our number 1 priority returning the business top line growth we have selectively chosen to invest to drive volume and revenue growth This is the right thing to do for the business, giving us a stronger platform for future growth. this is the right thing to do for the business giving us a stronger platform for future growth We are pleased with the engagement from customers to our expanded offering. we are pleased with the engagement from customers to our expanded offering We are making good progress on the series of actions we set out with our interim results to drive top line growth and improve performance. Let me give you 1 or 2 examples of progress. We continue to accelerate the rollout of our solutions chassis program with a focus on mouthfeel. We launched 2 new mouthfeel chassis in the 1/4, 1 to improve the stability of pourable salad dressings and another to support egg reduction. We are making good progress on the series of actions we set out with our interim results to drive top line growth and improve performance. we are making good progress on the series of actions we set out with our interim results to drive top line growth and improve performance Let me give you 1 or 2 examples of progress. let me give you 1 or 2 examples of progress We continue to accelerate the rollout of our solutions chassis program with a focus on mouthfeel. we continue to accelerate the rollout of our solutions chassis program with a focus on mouthfeel We launched 2 new mouthfeel chassis in the 1/4, 1 to improve the stability of pourable salad dressings and another to support egg reduction. we launched 2 new mouthfeel chassis in the 1/4 1 to improve the stability of pourable salad dressings and another to support egg reduction The level of customer engagement on our enlarged portfolio remains high, with the value of cross-selling opportunities in our new business pipeline increasing by more than a third in the 1/4. Revenue synergies from the CP Kelco combination are growing in line with our expectations. We remain confident that run rate cost synergies will exceed our target of $50 million by the end of the 2026 financial year. The level of customer engagement on our enlarged portfolio remains high, with the value of cross-selling opportunities in our new business pipeline increasing by more than a third in the 1/4. the level of customer engagement on our enlarged portfolio remains high with the value of cross-selling opportunities in our new business pipeline increasing by more than a third in the 1/4 Revenue synergies from the CP Kelco combination are growing in line with our expectations. revenue synergies from the cp kelco combination are growing in line with our expectations We remain confident that run rate cost synergies will exceed our target of $50 million by the end of the 2026 financial year. we remain confident that run rate cost synergies will exceed our target of $50 million by the end of the 2026 financial year Finally, our 5-year, $200 million productivity program continues to operate well, with further savings delivered in the 1/4. Overall, I am pleased with the progress we are making. There is a real determination and focus across the business to deliver on the actions we are taking, and I am confident that in the near term they will improve the top line performance of the business. Finally, our 5-year, $200 million productivity program continues to operate well, with further savings delivered in the 1/4. finally our 5-year $200 million productivity program continues to operate well with further savings delivered in the 1/4 Overall, I am pleased with the progress we are making. overall i am pleased with the progress we are making There is a real determination and focus across the business to deliver on the actions we are taking, and I am confident that in the near term they will improve the top line performance of the business. there is a real determination and focus across the business to deliver on the actions we are taking and i am confident that in the near term they will improve the top line performance of the business We will give you more detail of our progress when we announce our full year results in May. At that time, as usual, we will also provide guidance for the 2027 financial year. To conclude, with our leading positions in sweetening mouthfeel and fortification, we remain well placed to benefit from the global trends towards healthier and more nutritious food and drink. We will give you more detail of our progress when we announce our full year results in May. we will give you more detail of our progress when we announce our full year results in may At that time, as usual, we will also provide guidance for the 2027 financial year. at that time as usual we will also provide guidance for the 2027 financial year To conclude, with our leading positions in sweetening mouthfeel and fortification, we remain well placed to benefit from the global trends towards healthier and more nutritious food and drink. to conclude with our leading positions in sweetening mouthfeel and fortification we remain well placed to benefit from the global trends towards healthier and more nutritious food and drink With the breadth of our portfolio, our formulation expertise and the targeted investments we are making to accelerate customer wins in key growth areas, we are well positioned to drive profitable revenue growth over time. With that, Sarah and I would be happy to take any questions. With the breadth of our portfolio, our formulation expertise and the targeted investments we are making to accelerate customer wins in key growth areas, we are well positioned to drive profitable revenue growth over time. with the breadth of our portfolio our formulation expertise and the targeted investments we are making to accelerate customer wins in key growth areas we are well positioned to drive profitable revenue growth over time With that, Sarah and I would be happy to take any questions. with that sarah and i would be happy to take any questions

Speaker 6: Thank you, sir. If you wish to ask a question at this time, please signal by pressing star 1 on your telephone keypad. Please make sure the mute function on your phone is switched off to allow your signal to reach our equipment. If you wish to cancel your request, please press star 2. Again, it is star 1 to ask a question. We will now take our first question from Karel Zoete from Kepler Cheuvreux. Please go ahead. Thank you, sir. thank you sir If you wish to ask a question at this time, please signal by pressing star 1 on your telephone keypad. if you wish to ask a question at this time please signal by pressing star 1 on your telephone keypad Please make sure the mute function on your phone is switched off to allow your signal to reach our equipment. please make sure the mute function on your phone is switched off to allow your signal to reach our equipment If you wish to cancel your request, please press star 2. if you wish to cancel your request please press star 2 Again, it is star 1 to ask a question. again it is star 1 to ask a question We will now take our first question from Karel Zoete from Kepler Cheuvreux. we will now take our first question from karel zoete from kepler cheuvreux Please go ahead. please go ahead

Speaker 2: Yes. Good morning, all. Thanks for taking the question. I've 2 questions. The first 1 is in regards to the price investment you mentioned to sustain volume growth or to improve volume growth. Can you be a bit more specific which markets you decided to invest and then what that might mean for pricing going forward? Yes. yes Good morning, all. good morning all Thanks for taking the question. thanks for taking the question I've 2 questions. i've 2 questions The first 1 is in regards to the price investment you mentioned to sustain volume growth or to improve volume growth. the first 1 is in regards to the price investment you mentioned to sustain volume growth or to improve volume growth Can you be a bit more specific which markets you decided to invest and then what that might mean for pricing going forward? can you be a bit more specific which markets you decided to invest and then what that might mean for pricing going forward The other question is around fibers. I think more and more evidence or discussions in the public domain about fiber being the new protein, et cetera. What kind of engagement do you see with your customers on the fiber ingredients you sell? Thank you. The other question is around fibers. the other question is around fibers I think more and more evidence or discussions in the public domain about fiber being the new protein, et cetera. i think more and more evidence or discussions in the public domain about fiber being the new protein et cetera What kind of engagement do you see with your customers on the fiber ingredients you sell? what kind of engagement do you see with your customers on the fiber ingredients you sell Thank you. thank you

Speaker 5: Okay, Karel. Let me pick up on the fiber question first. I think it's an important 1, and I'll let Sarah handle the selective view on pricing. Look, I mean, fiber clearly is a big global trend. You know, in fact, there was an article yesterday in Bloomberg about fibermaxxing, and we're seeing, you know, very encouraging progress with customers on our fiber portfolio, both products going into market, locally, mostly in the Okay, Karel. okay karel Let me pick up on the fiber question first. let me pick up on the fiber question first I think it's an important 1, and I'll let Sarah handle the selective view on pricing. i think it's an important 1 and i'll let sarah handle the selective view on pricing Look, I mean, fiber clearly is a big global trend. look i mean fiber clearly is a big global trend You know, in fact, there was an article yesterday in Bloomberg about fibermaxxing, and we're seeing, you know, very encouraging progress with customers on our fiber portfolio, both products going into market, locally, mostly in the you know in fact there was an article yesterday in bloomberg about fibermaxxing and we're seeing you know very encouraging progress with customers on our fiber portfolio both products going into market locally mostly in the U.S. market, where, you know, in both beverages and dairy, we're seeing fiber fortification as a trend and increasing their pipeline for fiber is growing. It's a global trend as well, and we're seeing that trend across Europe and Asia too. U.S. market, where, you know, in both beverages and dairy, we're seeing fiber fortification as a trend and increasing their pipeline for fiber is growing. u.s market where you know in both beverages and dairy we're seeing fiber fortification as a trend and increasing their pipeline for fiber is growing It's a global trend as well, and we're seeing that trend across Europe and Asia too. it's a global trend as well and we're seeing that trend across europe and asia too you know, I expect that to continue as we think about the continued desire to create more nutritious processed foods, especially in a world where people have a significant shortfall of fiber in their diets. All of the nutritional trends we're seeing point towards Fiber addition is a strong growth opportunity for us going forward. you know, I expect that to continue as we think about the continued desire to create more nutritious processed foods, especially in a world where people have a significant shortfall of fiber in their diets. you know i expect that to continue as we think about the continued desire to create more nutritious processed foods especially in a world where people have a significant shortfall of fiber in their diets All of the nutritional trends we're seeing point towards Fiber addition is a strong growth opportunity for us going forward. all of the nutritional trends we're seeing point towards fiber addition is a strong growth opportunity for us going forward

Speaker 9: Thanks, Nick. Karel, good morning. When you think about, you know, our framework agreements, I think it's worth taking a step back. We're all very aware that market demand remains muted. As we've stated, you know, our number 1 priority is to deliver the top line growth, so that's volume and mix driven top line growth. Thanks, Nick. thanks nick Karel, good morning. karel good morning When you think about, you know, our framework agreements, I think it's worth taking a step back. when you think about you know our framework agreements i think it's worth taking a step back We're all very aware that market demand remains muted. we're all very aware that market demand remains muted As we've stated, you know, our number 1 priority is to deliver the top line growth, so that's volume and mix driven top line growth. as we've stated you know our number 1 priority is to deliver the top line growth so that's volume and mix driven top line growth We've taken the decision to set our business up stronger for the future, is that we're selectively investing to drive that volume momentum and the revenue growth. We always want to think about this as, you know, it would be very selective, so it's by product, by customer, by region to ensure that we're setting ourselves up for that growth given we now have the broader portfolio following the acquisition of CP Kelco. We've taken the decision to set our business up stronger for the future, is that we're selectively investing to drive that volume momentum and the revenue growth. we've taken the decision to set our business up stronger for the future is that we're selectively investing to drive that volume momentum and the revenue growth We always want to think about this as, you know, it would be very selective, so it's by product, by customer, by region to ensure that we're setting ourselves up for that growth given we now have the broader portfolio following the acquisition of CP Kelco. we always want to think about this as you know it would be very selective so it's by product by customer by region to ensure that we're setting ourselves up for that growth given we now have the broader portfolio following the acquisition of cp kelco

Speaker 2: Okay, thank you. Okay, thank you. okay thank you

Speaker 6: Thank you. Our next question is from Ranulf Orr from Citi. Please go ahead. Thank you. thank you Our next question is from Ranulf Orr from Citi. our next question is from ranulf orr from citi Please go ahead. please go ahead

Speaker 7: Hi. Thanks for taking the question. Just 1 from me. I mean, you talked a bit in the past about the sort of 4Q improvements. Could you just provide a bit of an update on that? You know, what's going well and where you have visibility on some of those sort of factors coming through? Thank you. Hi. hi Thanks for taking the question. thanks for taking the question Just 1 from me. just 1 from me I mean, you talked a bit in the past about the sort of 4Q improvements. i mean you talked a bit in the past about the sort of 4q improvements Could you just provide a bit of an update on that? could you just provide a bit of an update on that You know, what's going well and where you have visibility on some of those sort of factors coming through? you know what's going well and where you have visibility on some of those sort of factors coming through Thank you. thank you

Speaker 5: You mean in the 4th 1/4? You mean in the 4th 1/4? you mean in the 4th 1/4

Speaker 7: Yes. Yeah. Yes. yes Yeah. yeah

Speaker 5: I just wanted to get clarity on the question. Look, so, I mean, I think we're seeing encouraging signs of increased customer engagement on reformulation. It's very clear the sentiments in the market is my customers at least are increasingly thinking about the need to put price back in to drive momentum. But we're not assuming any improvements in market outlook in the 4th 1/4 in our underlying guidance for this financial year. I just wanted to get clarity on the question. i just wanted to get clarity on the question Look, so, I mean, I think we're seeing encouraging signs of increased customer engagement on reformulation. look so i mean i think we're seeing encouraging signs of increased customer engagement on reformulation It's very clear the sentiments in the market is my customers at least are increasingly thinking about the need to put price back in to drive momentum. it's very clear the sentiments in the market is my customers at least are increasingly thinking about the need to put price back in to drive momentum But we're not assuming any improvements in market outlook in the 4th 1/4 in our underlying guidance for this financial year. but we're not assuming any improvements in market outlook in the 4th 1/4 in our underlying guidance for this financial year What we saw in the third 1/4 was, you know, consistent performance from the first 1/2 and very clearly in line with our expectations. So far as we've entered the 4th 1/4, we'd say the same. Always, as you go from Q3 to Q4 across a calendar year, you get some kind of pluses and minuses between December and January from a phasing perspective. What we saw in the third 1/4 was, you know, consistent performance from the first 1/2 and very clearly in line with our expectations. what we saw in the third 1/4 was you know consistent performance from the first 1/2 and very clearly in line with our expectations So far as we've entered the 4th 1/4, we'd say the same. so far as we've entered the 4th 1/4 we'd say the same Always, as you go from Q3 to Q4 across a calendar year, you get some kind of pluses and minuses between December and January from a phasing perspective. always as you go from q3 to q4 across a calendar year you get some kind of pluses and minuses between december and january from a phasing perspective We're seeing the kind of customer demand that we would be expecting given the underlying guidance given for this year. We're seeing the kind of customer demand that we would be expecting given the underlying guidance given for this year. we're seeing the kind of customer demand that we would be expecting given the underlying guidance given for this year

Speaker 7: Okay. That's very clear. Just 1 more, if I may. On the price investments for the year ahead, can you give any kind of quantification or indication of the scale of those, maybe in relation to the current year? Thank you. Okay. okay That's very clear. that's very clear Just 1 more, if I may. just 1 more if i may On the price investments for the year ahead, can you give any kind of quantification or indication of the scale of those, maybe in relation to the current year? on the price investments for the year ahead can you give any kind of quantification or indication of the scale of those maybe in relation to the current year Thank you. thank you

Speaker 5: Look, I mean, I think we haven't finished yet because we're still closing out the renewal of the agreements for this calendar year. We'll give you a precise view on that when we get to our main results as things have settled down. I think it's fair to say that doing a little bit more this year than we did in this calendar year than we did in the last calendar year to ensure that we're really driving momentum with key customers. Look, I mean, I think we haven't finished yet because we're still closing out the renewal of the agreements for this calendar year. look i mean i think we haven't finished yet because we're still closing out the renewal of the agreements for this calendar year We'll give you a precise view on that when we get to our main results as things have settled down. we'll give you a precise view on that when we get to our main results as things have settled down I think it's fair to say that doing a little bit more this year than we did in this calendar year than we did in the last calendar year to ensure that we're really driving momentum with key customers. i think it's fair to say that doing a little bit more this year than we did in this calendar year than we did in the last calendar year to ensure that we're really driving momentum with key customers You're obviously offsetting that with real focus on productivity and the benefits of the combination coming through in both cost synergies and the revenue synergies, of course. Let's not forget, this is now the second year of the new business. You're obviously offsetting that with real focus on productivity and the benefits of the combination coming through in both cost synergies and the revenue synergies, of course. you're obviously offsetting that with real focus on productivity and the benefits of the combination coming through in both cost synergies and the revenue synergies of course Let's not forget, this is now the second year of the new business. let's not forget this is now the second year of the new business This is the first year we're entering as 1 combined business. This is the first year we're entering as 1 combined business. this is the first year we're entering as 1 combined business

Speaker 6: Thank you. We'll move to our next question from Joan Lim from BNP Paribas. Please go ahead. Thank you. thank you We'll move to our next question from Joan Lim from BNP Paribas. we'll move to our next question from joan lim from bnp paribas Please go ahead. please go ahead

Speaker 1: Hello. Morning, all. Quite a few of my questions have been asked, but maybe just, could you provide more color on trends by regions and category? Like for example, which category has been doing well or you're seeing more uptake with customers? Hello. hello Morning, all. morning all Quite a few of my questions have been asked, but maybe just, could you provide more color on trends by regions and category? quite a few of my questions have been asked but maybe just could you provide more color on trends by regions and category Like for example, which category has been doing well or you're seeing more uptake with customers? like for example which category has been doing well or you're seeing more uptake with customers You mentioned a bit about fiber. You know, is that more driven by innovation in beverages, for example, and supported by GLP-1 users taking more fiber? My second question is, do you have any indication of how ForEx will be like for the next year? Lastly, maybe an update on CP Kelco's volume and margin recovery, please. Thank you. You mentioned a bit about fiber. you mentioned a bit about fiber You know, is that more driven by innovation in beverages, for example, and supported by GLP-1 users taking more fiber? you know is that more driven by innovation in beverages for example and supported by glp-1 users taking more fiber My second question is, do you have any indication of how ForEx will be like for the next year? my second question is do you have any indication of how forex will be like for the next year Lastly, maybe an update on CP Kelco's volume and margin recovery, please. lastly maybe an update on cp kelco's volume and margin recovery please Thank you. thank you

Speaker 5: Okay. Let me give you some headlines on the overall shape of what we're seeing in the market, and then maybe Sarah can pick up on the ForEx and the CPK question. I mean, overall what we saw in the third 1/4 was quite consistent with the first 1/2. You know, in the Americas we're seeing modestly higher pricing more than offset by lower volume. Okay. okay Let me give you some headlines on the overall shape of what we're seeing in the market, and then maybe Sarah can pick up on the ForEx and the CPK question. let me give you some headlines on the overall shape of what we're seeing in the market and then maybe sarah can pick up on the forex and the cpk question I mean, overall what we saw in the third 1/4 was quite consistent with the first 1/2. i mean overall what we saw in the third 1/4 was quite consistent with the first 1/2 You know, in the Americas we're seeing modestly higher pricing more than offset by lower volume. you know in the americas we're seeing modestly higher pricing more than offset by lower volume That's very consistent with the volume data that we saw in the first 1/2, where you saw volume down and value driven by pricing, which was, you know, in part to pass through the tariffs at the time, as you remember. That's been pretty consistent. In Europe, volume pretty flattish. Volume mix with, you know, the pricing investment driving lower revenue. That's very consistent with the volume data that we saw in the first 1/2, where you saw volume down and value driven by pricing, which was, you know, in part to pass through the tariffs at the time, as you remember. that's very consistent with the volume data that we saw in the first 1/2 where you saw volume down and value driven by pricing which was you know in part to pass through the tariffs at the time as you remember That's been pretty consistent. that's been pretty consistent In Europe, volume pretty flattish. in europe volume pretty flattish Volume mix with, you know, the pricing investment driving lower revenue. volume mix with you know the pricing investment driving lower revenue In Asia, encouragingly some revenue growth driven by higher volume. Some signs of momentum. I think underlying that though, it is important to say what we're seeing with customers in terms of trends is some clear benefits of the combination flowing through. In the 1/4, the cross-selling pipeline was up over a third, having been strong at the first 1/2. We're seeing double-digit growth in our innovation pipeline to customers. In Asia, encouragingly some revenue growth driven by higher volume. in asia encouragingly some revenue growth driven by higher volume Some signs of momentum. some signs of momentum I think underlying that though, it is important to say what we're seeing with customers in terms of trends is some clear benefits of the combination flowing through. i think underlying that though it is important to say what we're seeing with customers in terms of trends is some clear benefits of the combination flowing through In the 1/4, the cross-selling pipeline was up over a third, having been strong at the first 1/2. in the 1/4 the cross-selling pipeline was up over a third having been strong at the first 1/2 We're seeing double-digit growth in our innovation pipeline to customers. we're seeing double-digit growth in our innovation pipeline to customers That's driven by some key themes. As we've already talked on the call, we're clearly seeing a focus on fiber fortification across many categories. Dawn, I think it may well be driven by this need for nutritional density, driven by nutritional needs for processed food and the GLP-1 point you made. We're seeing that especially in beverages and dairy in the U.S. That's driven by some key themes. that's driven by some key themes As we've already talked on the call, we're clearly seeing a focus on fiber fortification across many categories. as we've already talked on the call we're clearly seeing a focus on fiber fortification across many categories Dawn, I think it may well be driven by this need for nutritional density, driven by nutritional needs for processed food and the GLP-1 point you made. dawn i think it may well be driven by this need for nutritional density driven by nutritional needs for processed food and the glp-1 point you made We're seeing that especially in beverages and dairy in the U.S. we're seeing that especially in beverages and dairy in the u.s you know, in EMEA, we're seeing dairy and beverages being more resilient, bakery and snacks a bit softer. In Asia actually, overall robust category performance. We talked about recovery in China at the 1/2 driven by CPK. beyond fiber fortification, the other trends we're seeing is renovation for value, so, you know, cost efficiency and product renovation. you know, in EMEA, we're seeing dairy and beverages being more resilient, bakery and snacks a bit softer. you know in emea we're seeing dairy and beverages being more resilient bakery and snacks a bit softer In Asia actually, overall robust category performance. in asia actually overall robust category performance We talked about recovery in China at the 1/2 driven by CPK. beyond fiber fortification, the other trends we're seeing is renovation for value, so, you know, cost efficiency and product renovation. we talked about recovery in china at the 1/2 driven by cpk beyond fiber fortification the other trends we're seeing is renovation for value so you know cost efficiency and product renovation We're also seeing continued focus on sugar reduction and that link to mouthfeel that we talked about at the 1/2 where, you know, as you take sugar out, being able to control the texture and mouthfeel of a product is really important. That's where the combination is really helping us build a stronger pipeline, which we expect to build as we go into next year. We're also seeing continued focus on sugar reduction and that link to mouthfeel that we talked about at the 1/2 where, you know, as you take sugar out, being able to control the texture and mouthfeel of a product is really important. we're also seeing continued focus on sugar reduction and that link to mouthfeel that we talked about at the 1/2 where you know as you take sugar out being able to control the texture and mouthfeel of a product is really important That's where the combination is really helping us build a stronger pipeline, which we expect to build as we go into next year. that's where the combination is really helping us build a stronger pipeline which we expect to build as we go into next year

Speaker 1: Thanks, Nick. and then, next question is about ForEx. Indeed we saw a headwind given the U.S. in the first nine months, which is approximately 2%-3% of revenue, and that we expect to continue. That is partly offset by the strength in Europe. Thanks, Nick. and then, next question is about ForEx. thanks nick and then next question is about forex Indeed we saw a headwind given the U.S. in the first nine months, which is approximately 2%-3% of revenue, and that we expect to continue. indeed we saw a headwind given the u.s in the first nine months which is approximately 2%-3% of revenue and that we expect to continue That is partly offset by the strength in Europe. that is partly offset by the strength in europe Remember with the acquisition of CPK, we now have a broader footprint, so there's also some impact of (uncertain), et cetera. Overall, you're a headwind in the sort of the 2%-3% on the top line. That's a slightly higher impact on EBITDA given the important contribution from the profitable North American business. Turning to CPK. Clearly the integration continues to go well. Cost synergies well in hand. Remember with the acquisition of CPK, we now have a broader footprint, so there's also some impact of (uncertain) , et cetera. remember with the acquisition of cpk we now have a broader footprint so there's also some impact of (uncertain) et cetera Overall, you're a headwind in the sort of the 2%-3% on the top line. overall you're a headwind in the sort of the 2%-3% on the top line That's a slightly higher impact on EBITDA given the important contribution from the profitable North American business. that's a slightly higher impact on ebitda given the important contribution from the profitable north american business Turning to CPK. turning to cpk Clearly the integration continues to go well. clearly the integration continues to go well Cost synergies well in hand. cost synergies well in hand

Speaker 9: As Nick has spoken about now obviously the attention on the pipeline growth of those cross sales. It's been really powerful going into the conversation this year as a combined portfolio, fronting up our, you know, the combined commercial staff really demonstrating the ability and the strengthening capabilities of the portfolio, and the stronger together has been very powerful, good to see. As Nick has spoken about now obviously the attention on the pipeline growth of those cross sales. as nick has spoken about now obviously the attention on the pipeline growth of those cross sales It's been really powerful going into the conversation this year as a combined portfolio, fronting up our, you know, the combined commercial staff really demonstrating the ability and the strengthening capabilities of the portfolio, and the stronger together has been very powerful, good to see. it's been really powerful going into the conversation this year as a combined portfolio fronting up our you know the combined commercial staff really demonstrating the ability and the strengthening capabilities of the portfolio and the stronger together has been very powerful good to see

Speaker 1: Very helpful. Thank you. Very helpful. very helpful Thank you. thank you

Speaker 6: Our next question is from Seta Sharma from Barclays. Please go ahead. Our next question is from Seta Sharma from Barclays. our next question is from seta sharma from barclays Please go ahead. please go ahead

Speaker 10: Hi. My question is on the selective investments. How should we think about the margin impact of these re-investments as we move into FY25? Are you viewing this as a one-year re-reset to drive volume recovery or a more structural change in pricing intensity? Hi. hi My question is on the selective investments. my question is on the selective investments How should we think about the margin impact of these re-investments as we move into FY25? how should we think about the margin impact of these re-investments as we move into fy25 Are you viewing this as a one-year re-reset to drive volume recovery or a more structural change in pricing intensity? are you viewing this as a one-year re-reset to drive volume recovery or a more structural change in pricing intensity My second question would be regarding like, to what extent can the ongoing productivity program and CP Kelco cost and revenue synergies can offset the margin impact of these investments? Should we expect net margin pressure or stability as we bridge from FY24 into FY25? My second question would be regarding like, to what extent can the ongoing productivity program and CP Kelco cost and revenue synergies can offset the margin impact of these investments? my second question would be regarding like to what extent can the ongoing productivity program and cp kelco cost and revenue synergies can offset the margin impact of these investments Should we expect net margin pressure or stability as we bridge from FY24 into FY25? should we expect net margin pressure or stability as we bridge from fy24 into fy25

Speaker 5: Okay. I would think... Let me start by saying, we'll give very clear guidance on fiscal 2027 when we get to our full year results. We need to complete our planning process for next year and see how trading evolves in 1/4 1 of the calendar year. Okay. okay I would think... i would think Let me start by saying, we'll give very clear guidance on fiscal 2027 when we get to our full year results. let me start by saying we'll give very clear guidance on fiscal 2027 when we get to our full year results We need to complete our planning process for next year and see how trading evolves in 1/4 1 of the calendar year. we need to complete our planning process for next year and see how trading evolves in 1/4 1 of the calendar year The way I think about it is if you think about the building blocks going to next year, we're clearly because of the market demand remaining muted, putting some selective investments into price, to drive the top line, both volume and revenue. Alongside that, we've got clear offsets from productivity delivery and accelerating the benefits of the CP Kelco combination. The way I think about it is if you think about the building blocks going to next year, we're clearly because of the market demand remaining muted, putting some selective investments into price, to drive the top line, both volume and revenue. the way i think about it is if you think about the building blocks going to next year we're clearly because of the market demand remaining muted putting some selective investments into price to drive the top line both volume and revenue Alongside that, we've got clear offsets from productivity delivery and accelerating the benefits of the CP Kelco combination. alongside that we've got clear offsets from productivity delivery and accelerating the benefits of the cp kelco combination Different to last year, we've also got the benefits of the combination flowing through in terms of the pipeline and the cross-selling opportunities to support the framework of renewed renewal. We're confident that that builds a strong platform for growth. Where that leads us to on overall earnings severity and margins, we'll be much clearer about when we get to our full year results. Different to last year, we've also got the benefits of the combination flowing through in terms of the pipeline and the cross-selling opportunities to support the framework of renewed renewal. different to last year we've also got the benefits of the combination flowing through in terms of the pipeline and the cross-selling opportunities to support the framework of renewed renewal We're confident that that builds a strong platform for growth. we're confident that that builds a strong platform for growth Where that leads us to on overall earnings severity and margins, we'll be much clearer about when we get to our full year results. where that leads us to on overall earnings severity and margins we'll be much clearer about when we get to our full year results The key here is the quality of the portfolio to build the growing pipeline of business with customers. As we see markets start to improve and the trends that are, you know, our friend from a positioning of the business perspective, we fully expect to drive profitable growth going forward into the medium term. The key here is the quality of the portfolio to build the growing pipeline of business with customers. the key here is the quality of the portfolio to build the growing pipeline of business with customers As we see markets start to improve and the trends that are, you know, our friend from a positioning of the business perspective, we fully expect to drive profitable growth going forward into the medium term. as we see markets start to improve and the trends that are you know our friend from a positioning of the business perspective we fully expect to drive profitable growth going forward into the medium term We'll give very clear guidance on the nearer term when we get to our annual results. We'll give very clear guidance on the nearer term when we get to our annual results. we'll give very clear guidance on the nearer term when we get to our annual results

Speaker 10: Thanks for that. Just a follow-up on the fiber thing. Thanks for giving some color on that. Are you seeing a meaningful increase in customer briefs or RSP activity linked to high fiber, high fiber formulations? How does the current pipeline compare with the time last year? Thanks for that. thanks for that Just a follow-up on the fiber thing. just a follow-up on the fiber thing Thanks for giving some color on that. thanks for giving some color on that Are you seeing a meaningful increase in customer briefs or RSP activity linked to high fiber, high fiber formulations? are you seeing a meaningful increase in customer briefs or rsp activity linked to high fiber high fiber formulations How does the current pipeline compare with the time last year? how does the current pipeline compare with the time last year

Speaker 5: If you think about our pipeline in the last 1/4, it grew double digits overall. That is driven by a focus on things like fiber fortification. I think the question though always is at what pace do those pipeline projects convert into innovation in the market? As you know, we've probably seen, you know, we haven't really seen an increase in innovation pace yet, but we're anticipating that coming as these projects start to flow through. If you think about our pipeline in the last 1/4, it grew double digits overall. if you think about our pipeline in the last 1/4 it grew double digits overall That is driven by a focus on things like fiber fortification. that is driven by a focus on things like fiber fortification I think the question though always is at what pace do those pipeline projects convert into innovation in the market? i think the question though always is at what pace do those pipeline projects convert into innovation in the market As you know, we've probably seen, you know, we haven't really seen an increase in innovation pace yet, but we're anticipating that coming as these projects start to flow through. as you know we've probably seen you know we haven't really seen an increase in innovation pace yet but we're anticipating that coming as these projects start to flow through

Speaker 9: Nick, maybe I would just add, it's not simply just adding fiber to a product. With fiber, you really need the mouthfeel, and that's really where it plays to our sweet spot because you really need the appealing mouthfeel to for the fortified product to be successful in the market. Nick, maybe I would just add, it's not simply just adding fiber to a product. nick maybe i would just add it's not simply just adding fiber to a product With fiber, you really need the mouthfeel, and that's really where it plays to our sweet spot because you really need the appealing mouthfeel to for the fortified product to be successful in the market. with fiber you really need the mouthfeel and that's really where it plays to our sweet spot because you really need the appealing mouthfeel to for the fortified product to be successful in the market

Speaker 3: Thank you. That's quite helpful. Yeah. Thank you. thank you That's quite helpful. that's quite helpful Yeah. yeah

Speaker 6: Thank you. We'll now move to our next question from Samantha Darbyshire from Goldman Sachs. Please go ahead. Thank you. thank you We'll now move to our next question from Samantha Darbyshire from Goldman Sachs. we'll now move to our next question from samantha darbyshire from goldman sachs Please go ahead. please go ahead

Speaker 8: Good morning. Thanks for taking my question. I just kind of want to talk about some of the themes you're seeing in the market longer term. We had a lot of feedback at CAGNY last week about clean label reformulation, including away from artificial sweeteners like sucralose and several emulsifiers, some of which I think are in your portfolio. Good morning. good morning Thanks for taking my question. thanks for taking my question I just kind of want to talk about some of the themes you're seeing in the market longer term. i just kind of want to talk about some of the themes you're seeing in the market longer term We had a lot of feedback at CAGNY last week about clean label reformulation, including away from artificial sweeteners like sucralose and several emulsifiers, some of which I think are in your portfolio. we had a lot of feedback at cagny last week about clean label reformulation including away from artificial sweeteners like sucralose and several emulsifiers some of which i think are in your portfolio What proportion of products are being reformulated this way? Is the increased customer opportunity that you're seeing with CP Kelco's from fortification and protein and fiber, is that enough to offset this headwind? Are you still seeing structural growth in the way that customers are reformulating with your ingredients? Thank you. What proportion of products are being reformulated this way? what proportion of products are being reformulated this way Is the increased customer opportunity that you're seeing with CP Kelco's from fortification and protein and fiber, is that enough to offset this headwind? is the increased customer opportunity that you're seeing with cp kelco's from fortification and protein and fiber is that enough to offset this headwind Are you still seeing structural growth in the way that customers are reformulating with your ingredients? are you still seeing structural growth in the way that customers are reformulating with your ingredients Thank you. thank you

Speaker 5: Sara, thanks for the question. I mean, all of those trends that we talked about at CAGNY this month actually plays to the reshaping of the portfolio. I think it's important to say that, you know, sucralose clearly is an important part of our portfolio as our artificial sweetener of choice. It's growing in demand. Sara, thanks for the question. sara thanks for the question I mean, all of those trends that we talked about at CAGNY this month actually plays to the reshaping of the portfolio. i mean all of those trends that we talked about at cagny this month actually plays to the reshaping of the portfolio I think it's important to say that, you know, sucralose clearly is an important part of our portfolio as our artificial sweetener of choice. i think it's important to say that you know sucralose clearly is an important part of our portfolio as our artificial sweetener of choice It's growing in demand. it's growing in demand You know, we're selling every kilo of sucralose that we can make because it's the best tasting artificial sweetener out there. It would be also important to say that if there was a shift away from artificial sweeteners, we've got lots of non-nutritive natural sweeteners in the portfolio. Everything from stevia. We're the only company with a all-America supply chain for stevia, for example, through to monk fruits and allulose. You know, we're selling every kilo of sucralose that we can make because it's the best tasting artificial sweetener out there. you know we're selling every kilo of sucralose that we can make because it's the best tasting artificial sweetener out there It would be also important to say that if there was a shift away from artificial sweeteners, we've got lots of non-nutritive natural sweeteners in the portfolio. it would be also important to say that if there was a shift away from artificial sweeteners we've got lots of non-nutritive natural sweeteners in the portfolio Everything from stevia. everything from stevia We're the only company with a all-America supply chain for stevia, for example, through to monk fruits and allulose. we're the only company with a all-america supply chain for stevia for example through to monk fruits and allulose We're well placed for the reformulation to more natural and clean label. Emulsifiers actually are part of our portfolio. We do a lot of replacements of emulsifiers, and that's where the CP Kelco portfolio comes in as well. All of the trends that we're seeing people talk about are the trends we really believe the combination of our three core platforms can help customers with. We're well placed for the reformulation to more natural and clean label. we're well placed for the reformulation to more natural and clean label Emulsifiers actually are part of our portfolio. emulsifiers actually are part of our portfolio We do a lot of replacements of emulsifiers, and that's where the CP Kelco portfolio comes in as well. we do a lot of replacements of emulsifiers and that's where the cp kelco portfolio comes in as well All of the trends that we're seeing people talk about are the trends we really believe the combination of our three core platforms can help customers with. all of the trends that we're seeing people talk about are the trends we really believe the combination of our three core platforms can help customers with Because that sugar replacement or artificial sweetener replacement we talked about also comes with the need for mouthfeel modulation, as Sara just talked about. The things that we heard from CAGNY are precisely the reason that we repositioned the business the way we have done over the last 5 years. Because that sugar replacement or artificial sweetener replacement we talked about also comes with the need for mouthfeel modulation, as Sara just talked about. because that sugar replacement or artificial sweetener replacement we talked about also comes with the need for mouthfeel modulation as sara just talked about The things that we heard from CAGNY are precisely the reason that we repositioned the business the way we have done over the last 5 years. the things that we heard from cagny are precisely the reason that we repositioned the business the way we have done over the last 5 years

Speaker 8: Thank you. Thank you. thank you

Speaker 6: I'll move to our next question from Matthew Abraham from Berenberg. Please go ahead. I'll move to our next question from Matthew Abraham from Berenberg. i'll move to our next question from matthew abraham from berenberg Please go ahead. please go ahead

Speaker 4: Morning, all. Thanks for taking my questions. I just want to relate to the fiber fortification services you touched on. I was just wondering if you can provide a sense of the margins from those services relative to the rest of the group. If fiber demand does accelerate meaningfully, could there be a broader impact on overall group margins? Morning, all. morning all Thanks for taking my questions. thanks for taking my questions I just want to relate to the fiber fortification services you touched on. i just want to relate to the fiber fortification services you touched on I was just wondering if you can provide a sense of the margins from those services relative to the rest of the group. i was just wondering if you can provide a sense of the margins from those services relative to the rest of the group If fiber demand does accelerate meaningfully, could there be a broader impact on overall group margins? if fiber demand does accelerate meaningfully could there be a broader impact on overall group margins The second question just relates to the price investment commentary that you provided. Is that a reflection of a perception of improved demand elasticity, or is it more a reflection that demand is such that it requires stimulation through price investment? Thank you. The second question just relates to the price investment commentary that you provided. the second question just relates to the price investment commentary that you provided Is that a reflection of a perception of improved demand elasticity, or is it more a reflection that demand is such that it requires stimulation through price investment? is that a reflection of a perception of improved demand elasticity or is it more a reflection that demand is such that it requires stimulation through price investment Thank you. thank you

Speaker 5: On your first question on fiber, you know, our fiber portfolio generates very nice margins for us. You know, obviously it depends on a customer by customer basis, how much fiber we're using, what other components we're putting in to help with that solution. On your first question on fiber, you know, our fiber portfolio generates very nice margins for us. on your first question on fiber you know our fiber portfolio generates very nice margins for us You know, obviously it depends on a customer by customer basis, how much fiber we're using, what other components we're putting in to help with that solution. you know obviously it depends on a customer by customer basis how much fiber we're using what other components we're putting in to help with that solution I think the key is the fiber fortification trend is driving a solutions model where typically that business is stickier business and good margin business. It's certainly helpful in that regard. In terms of your question on price and price elasticity, we're clearly in a world where consumers are more challenged. Food is 20%-30% more expensive than it was pre-pandemic because of all of this, all of the geopolitical challenges we've seen over the last three or 4 years. I think the key is the fiber fortification trend is driving a solutions model where typically that business is stickier business and good margin business. i think the key is the fiber fortification trend is driving a solutions model where typically that business is stickier business and good margin business It's certainly helpful in that regard. it's certainly helpful in that regard In terms of your question on price and price elasticity, we're clearly in a world where consumers are more challenged. in terms of your question on price and price elasticity we're clearly in a world where consumers are more challenged Food is 20%-30% more expensive than it was pre-pandemic because of all of this, all of the geopolitical challenges we've seen over the last three or 4 years. food is 20%-30% more expensive than it was pre-pandemic because of all of this all of the geopolitical challenges we've seen over the last three or 4 years There clearly is a requirement for some price stimulation to drive demand. More importantly for us, we're trying to balance the way we think about growing our business to make sure we're well positioned for growth through the cycle. In a cycle where demand is more muted, we want to make sure we're stimulating growth so that we're well positioned as markets start to improve. There clearly is a requirement for some price stimulation to drive demand. there clearly is a requirement for some price stimulation to drive demand More importantly for us, we're trying to balance the way we think about growing our business to make sure we're well positioned for growth through the cycle. more importantly for us we're trying to balance the way we think about growing our business to make sure we're well positioned for growth through the cycle In a cycle where demand is more muted, we want to make sure we're stimulating growth so that we're well positioned as markets start to improve. in a cycle where demand is more muted we want to make sure we're stimulating growth so that we're well positioned as markets start to improve

Speaker 4: Excellent. Thank you. I'll pass it on. Excellent. excellent Thank you. thank you I'll pass it on. i'll pass it on

Speaker 6: Thank you. As a reminder to ask a question, please signal by pressing star 1. The next question is from Lisa De Neve from Morgan Stanley. Please go ahead. Thank you. thank you As a reminder to ask a question, please signal by pressing star 1. as a reminder to ask a question please signal by pressing star 1 The next question is from Lisa De Neve from Morgan Stanley. the next question is from lisa de neve from morgan stanley Please go ahead. please go ahead

Speaker 3: Hi. Thank you for taking my questions. I have 2. First, can we talk a little bit about what you're seeing in APAC? Various players in this reporting season have noted an improvement in China specifically, and I believe your sequential local currency growth is modestly better in APAC. Hi. hi Thank you for taking my questions. thank you for taking my questions I have 2. i have 2 First, can we talk a little bit about what you're seeing in APAC? first can we talk a little bit about what you're seeing in apac Various players in this reporting season have noted an improvement in China specifically, and I believe your sequential local currency growth is modestly better in APAC. various players in this reporting season have noted an improvement in china specifically and i believe your sequential local currency growth is modestly better in apac Any color on that would be great. That's 1. Secondly, can you provide us a little bit of color on how your raw materials are trending into this year on average? How should we think about the direction for cost input inflation or deflation? Thank you. Any color on that would be great. any color on that would be great That's 1. that's 1 Secondly, can you provide us a little bit of color on how your raw materials are trending into this year on average? secondly can you provide us a little bit of color on how your raw materials are trending into this year on average How should we think about the direction for cost input inflation or deflation? how should we think about the direction for cost input inflation or deflation Thank you. thank you

Speaker 5: Maybe let me pick up the APAC question, and Sara can pick up the input cost 1. I mean, we're encouraged by the progress we're seeing in Asia. As you mentioned, we did see some improvements in China in the first 1/2 and that continued through the third 1/4. I mean, it's difficult to talk about Asia as 1 region. It's such a vast, vast area. Maybe let me pick up the APAC question, and Sara can pick up the input cost 1. maybe let me pick up the apac question and sara can pick up the input cost 1 I mean, we're encouraged by the progress we're seeing in Asia. i mean we're encouraged by the progress we're seeing in asia As you mentioned, we did see some improvements in China in the first 1/2 and that continued through the third 1/4. as you mentioned we did see some improvements in china in the first 1/2 and that continued through the third 1/4 I mean, it's difficult to talk about Asia as 1 region. i mean it's difficult to talk about asia as 1 region It's such a vast, vast area. it's such a vast vast area We're seeing good progress in China, solid demand in North Asia, across Japan and Korea. That gives us some encouragement for the future. If you look at APAC in the broadest sweep, you know, we've grown our business significantly over the last 5 years. We're seeing good progress in China, solid demand in North Asia, across Japan and Korea. we're seeing good progress in china solid demand in north asia across japan and korea That gives us some encouragement for the future. that gives us some encouragement for the future If you look at APAC in the broadest sweep, you know, we've grown our business significantly over the last 5 years. if you look at apac in the broadest sweep you know we've grown our business significantly over the last 5 years We're, you know, we're now a $500 million business revenue where we were sort of roundabout 105 years ago. It's a huge growth opportunity for us still because there's 60% of the world's population and a lot of the trends we've talked about on the call are true in Asia as well. The opportunity there is very clear. The fact that we're starting to see some stability and improvement is very encouraging as we go into the next 12 months. We're, you know, we're now a $500 million business revenue where we were sort of roundabout 105 years ago. we're you know we're now a $500 million business revenue where we were sort of roundabout 105 years ago It's a huge growth opportunity for us still because there's 60% of the world's population and a lot of the trends we've talked about on the call are true in Asia as well. it's a huge growth opportunity for us still because there's 60% of the world's population and a lot of the trends we've talked about on the call are true in asia as well The opportunity there is very clear. the opportunity there is very clear The fact that we're starting to see some stability and improvement is very encouraging as we go into the next 12 months. the fact that we're starting to see some stability and improvement is very encouraging as we go into the next 12 months

Speaker 9: Thanks, Nick. Lisa, on the raw material, I think it's worth reminding you that we've now got a much broader array of raw materials, post the acquisition of CPK. It's not just corn, but it's also, you know, pectins and seaweed, et cetera. Broadly, the more benign environment, there's not a strong inflationary push coming through there. It's more benign, and we're well-diversified. Thanks, Nick. thanks nick Lisa, on the raw material, I think it's worth reminding you that we've now got a much broader array of raw materials, post the acquisition of CPK. lisa on the raw material i think it's worth reminding you that we've now got a much broader array of raw materials post the acquisition of cpk It's not just corn, but it's also, you know, pectins and seaweed, et cetera. it's not just corn but it's also you know pectins and seaweed et cetera Broadly, the more benign environment, there's not a strong inflationary push coming through there. broadly the more benign environment there's not a strong inflationary push coming through there It's more benign, and we're well-diversified. it's more benign and we're well-diversified

Speaker 3: Thank you. Thank you. thank you

Speaker 5: I think it's fair to say we're seeing pretty flat year-on-year. I think it's fair to say we're seeing pretty flat year-on-year. i think it's fair to say we're seeing pretty flat year-on-year

Speaker 9: Yeah. Yeah. yeah

Speaker 5: -year costs in overall. I mean, there's some ups and downs, but nothing significant. -year costs in overall. -year costs in overall I mean, there's some ups and downs, but nothing significant. i mean there's some ups and downs but nothing significant

Speaker 9: Yeah. Yeah. yeah

Speaker 3: Mm-hmm. Mm-hmm. mm-hmm

Speaker 6: Thank you. It appears there are currently no further questions. Pardon. We have a follow-up question from Joan Lim from BNP Paribas. Please go ahead. Thank you. thank you It appears there are currently no further questions. it appears there are currently no further questions Pardon. pardon We have a follow-up question from Joan Lim from BNP Paribas. we have a follow-up question from joan lim from bnp paribas Please go ahead. please go ahead

Speaker 1: Hello. Sorry, I'm just squeezing in 1 more question because everyone seems to be asking about margins. Nick, you've historically talked about how important it is to protect unit margins. Has this changed? Are you confident of maintaining unit margins this year? Hello. hello Sorry, I'm just squeezing in 1 more question because everyone seems to be asking about margins. sorry i'm just squeezing in 1 more question because everyone seems to be asking about margins Nick, you've historically talked about how important it is to protect unit margins. nick you've historically talked about how important it is to protect unit margins Has this changed? has this changed Are you confident of maintaining unit margins this year? are you confident of maintaining unit margins this year

Speaker 5: I think the focus on unit margins hasn't changed at all. I think in the near term, we're trying to balance all the levers we have to get the business back into top line growth. Doing that in an environment where markets are more sluggish means we're having to make some choices about where we invest and what choices we make. Fundamentally, over time, we expect to focus on maintaining unit margins and using mix to improve margins to sort of quality the portfolio. We're in a cycle at the moment where we're having to make some choices. I think the focus on unit margins hasn't changed at all. i think the focus on unit margins hasn't changed at all I think in the near term, we're trying to balance all the levers we have to get the business back into top line growth. i think in the near term we're trying to balance all the levers we have to get the business back into top line growth Doing that in an environment where markets are more sluggish means we're having to make some choices about where we invest and what choices we make. doing that in an environment where markets are more sluggish means we're having to make some choices about where we invest and what choices we make Fundamentally, over time, we expect to focus on maintaining unit margins and using mix to improve margins to sort of quality the portfolio. fundamentally over time we expect to focus on maintaining unit margins and using mix to improve margins to sort of quality the portfolio We're in a cycle at the moment where we're having to make some choices. we're in a cycle at the moment where we're having to make some choices

Speaker 1: Okay. It's reassuring to hear that you're confident of maintaining the unit margins. Thank you very much. Okay. okay It's reassuring to hear that you're confident of maintaining the unit margins. it's reassuring to hear that you're confident of maintaining the unit margins Thank you very much. thank you very much

Speaker 6: Thank you. With this, I'd like to hand the call back over to Nick Hampton for any closing remarks. Thank you. thank you With this, I'd like to hand the call back over to Nick Hampton for any closing remarks. with this i'd like to hand the call back over to nick hampton for any closing remarks

Speaker 5: Thank you, operator, and thank you, everybody, for your questions. Just to summarize, trading in the third 1/4 was in line with our expectations and consistent with the first 1/2. Importantly, our guidance for the full year remains unchanged. Thank you, operator, and thank you, everybody, for your questions. thank you operator and thank you everybody for your questions Just to summarize, trading in the third 1/4 was in line with our expectations and consistent with the first 1/2. just to summarize trading in the third 1/4 was in line with our expectations and consistent with the first 1/2 Importantly, our guidance for the full year remains unchanged. importantly our guidance for the full year remains unchanged As we've talked a lot about on the call, our number 1 priority is returning the business to top line growth. We're clear on the actions we're gonna take to improve top line performance of the business in the near term. We remain focused on top line growth, execution, and delivering for our customers. Thank you for your time and questions, and I wish you all a very good day. As we've talked a lot about on the call, our number 1 priority is returning the business to top line growth. as we've talked a lot about on the call our number 1 priority is returning the business to top line growth We're clear on the actions we're gonna take to improve top line performance of the business in the near term. we're clear on the actions we're gonna take to improve top line performance of the business in the near term We remain focused on top line growth, execution, and delivering for our customers. we remain focused on top line growth execution and delivering for our customers Thank you for your time and questions, and I wish you all a very good day. thank you for your time and questions and i wish you all a very good day

Speaker 6: Thank you. This concludes today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect. Thank you. thank you This concludes today's conference call. this concludes today's conference call Thank you for your participation, ladies and gentlemen. thank you for your participation ladies and gentlemen You may now disconnect. you may now disconnect