Nomad Foods Limited (NOMD) 9 May 242024 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to Nomad Foods First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I would now like to turn the conference over to Amit Sharma. Please go ahead, sir.

Hello, and welcome to Nomad Foods First Quarter 2024 Earnings Call. have of Stefan and Samy ended Descheemaeker, CFO. By everyone Head the joined Zekhout, March Sharma, earnings now, by the was call our should X:XX XX, Amit XXXX, Investor the published I'm Relations, on our release that I'm for to approximately period a.m. access CEO; and Time. Eastern The and investor Foods www.nomadfoods.com. at press presentation Nomad release website are available on be is call being This on company's website. a will webcast, the available replay and

based may on include prospects, uncertainties, will conference presentation, to our are our with includes in the at statements This press language. risks discussed view forward-looking company's investor filings our which cautionary that the expectations this call of time. differ and intentions and and SEC are our release, Actual which results due in

non-IFRS These the our reconciliations We considered be in at read the and to Investors of replacement the the measures available our financial the measures appendices IFRS financial website. will should together during also results. be on non-IFRS release should not our slide call earnings discuss find end with for and a can presentation IFRS within today. non-IFRS

that certain figures XXXX having within foreign comments translation costs, M&A-related noted, from XXXX. adjustments, items those this financial presentation price exceptional for and figures share-based adjusted charges represents refer and otherwise to adjusted currency payroll All adjusted adjusted payment numbers. here for Unless Nonoperating taxes. information and primarily and expenses note employee Please on related will acquisition gains. purchase

call to will I the With over hand that, Stefan.

to quarter of wheel outlook we before another as we to outlook. Nomad on solid a review line from like made Samy performance. results it handing by our for top quarterly our Foods bottom financial and delivered will detailed XXXX then comments of our as offer quarter few and a the growth accelerated our We'd over deploy a slide I begin highlights Amit. you, growth to year. Thank a solid start few first offering

First consecutive sales and by sales growth. including or X.X%, seventh of quarter quarter organic increased sales organic net X.X% positive growth of

Our a our returning clear and on volume volume in XXXX. basis, very trends on improved substantially back which both to encouraging growth is sequentially positive given focus year-over-year

validate to made past our trends fueled will XX long-term choices further volume position health during during over to difficult productivity growth brands. targeted favorable the recovery. the protect are we months the agenda, being XX We to the believe investments accelerating margins quarter investments These higher cash our cost and quarter the drive to potential recovery for quarter us we to and boost dividend this made accelerate. Our profit by the which through and hold growth the begins by generation. about supported take strong to initiatives cash momentum and excited our opportunistic I'm our as of strong growth stock, our building deliver of profitable and begin rest year. first buyers paid to remain our sustained during We quarterly volume the

X% of EUR XX% range to with large are we in EUR to and share of Adjusted EBITDA positive X.X, X% growth. XXXX implies reiterating X.XX including growth. volume result, X% X% growth the a sales net As to to X% which of growth guidance, our and EPS

provide first few performance. on let quarter a me highlights With that, our

X.X%, strong we to a complemented significantly from products our quarter, as sales mix begin and of declines Quarterly net quarter toolkit X.X%. key management with markets moderated growth volume and by revenue First deploy growth increased favorable last ForEx categories. customer across organic accompanied

we pricing lapped strong as contribution expected, year-ago from actions. pricing As moderated

lower margins. provide cost, than inventory being higher details margin First to offset the quarter the points basis trajectory margins, dipped is more underlying focus mix our due optimize of favorable will which driven Samy XXX improving gross about margin with sheet productivity, valuation to underlying on pleased XX.X%, and I'm as the revaluation the by by impact, promotions. but headwind clear onetime expected more balance

more favorable our enabling we in to of ahead, to gross expectations invest our cost remain us Given environment brands. margins a continue the for in confident delivering full year, higher

adjusted EUR from of from ago both of quarter. of EUR EUR nearly EBITDA We declined XXX year million EPS quarter, Adjusted million X.XX share XX in a the XX flow ago and cash quarter. year significant per million free adjusted the generated the improvement in EUR

the continues the activation frozen with upgraded renewed This consumers improvement many driven of and sales even significant ale retail turned to a Austria. and is being positive full including U.K. and to Nielsen key volume bring of IQ, our and as brands. flywheel our markets our level, reported our As recovery to drive the engagement by by to quarter, share and in show back greater during

Winning we flywheel and to winning the winning consumers, and brands key our our with made are investment customers the it. pillars with with in the quarter of first achieve intended

XX% than and aspect to we expanded campaign greater remind relevant more by our markets loved drive master brand increased and to with additional their our consumers relationship with to engagement spending as brands. most A&P the on of to Our them iconic

delivering At data, promotion people in business We markets to greater maximize favorable the it and benefit resource by and opportunities transformation align quarter and and seasonality first activities better same merchandising of the largest ongoing interest the helped analytics, time, timed data-driven project, the deeper with in events from spend, center our optimize Enabled to excellence capabilities investments are to reallocating frozen winning additional consumer our to potential to our stores. our ongoing our insights in promotion pricing us execute eyes. local shelf.

Our our a us more granular at toolkit promotional to much enabling comprehensive level. -- management fine-tune and is frequencies revenue growth

at consumers to to and our and level support our deter to price and category bring strategy our We attractive points have brands. the country to customized aisle back frozen them

XX profits for even of greater opportunities. sales of these recent I the recovery and X/X a top of focus and sales CAGNY fine delivered the overall And top growth our of a battles machine volume best of As Planned anticipated of positive received an margin driver The volume accounted our gross battles. increasing the share is key in presentation, share our our our growth discussed in machine at must-win our XX of on these biggest nearly as business growth quarter. XX and large expected, battles top disproportionately including investments. excess

me Let stories of quarter. highlight a these from success the few

one in is Italy volume growth elements have initial all growth penetration. regain first strong performance drive fish material value The business The trends. to turnaround results Italy. initiative our finger all and we flywheel deployed a a key in including rebound difficult a our our volume great been and a strong outstanding. XXXX, from our this growth in After of in brand improvement frozen delivered fish Findus, in metrics,

sale. Our along market improving rate with is share of rebounding

the is velocity the and penetration bringing Findus fact, frozen the segment entire by of fish consumers back In lifting category. to

first is up Our as we example U.K., focused our volume U.K. strong performance were market, our largest of volumes strongly, and another our approach quarter in in even gained share.

was as the influencer-led chicken word sweet part We momentum with promotions to And as of lean, poultry protein great by campaign. highlighting value content, mid We positive affordable strong guarantee consumer a of our launched series the number by activation dipping we celebration. of our of awareness. frozen frozen years of highlighted the vegetable drive of for a the driven highlight backed campaign XXX strategic relative consumers fees. superiority supported continuation of our to a portfolio U.K. Our with our

quarter. My to first and story an share points Globe Austria, the final leading in value success is to volume basis showing expansion Oil brand nearly outstanding where stabilizing highlight is XX turnaround a share

slots volume while value Our Austria fed outperformed and as sales campaign our meaningfully more leveraging well life portfolio our greater to engagement. drive secured growth overall promotional customer in we

Our power great our as flywheel confidence priority strong our in our gives starts spin us performance and of testament opportunities is to in these the flywheel to growth high faster. of a --

which agenda, renewed Our enabled highly our continues manner. productivity by our flywheel across to in effective is particularly a chain, operate growth supply

to rising bar quarter. operating our with volatility the are of in greater of with underlying continue we customers' and raise our to terms during the greater levels to take our record flexibility nimbleness same We of our advantage to well many the service and in time, building highs in plans the even demand At positioned commodities. remain coverage meeting agility

on our chain. Accomplishing supply focus efficiencies across it and productivity increasing with

our are warehouse optimizing network. manufacturing, and logistics We

our many relationships co-packer reducing our of reevaluating and throughout chain. are supply complexity We

it Our has chain supply deliver even as our products expect fixed contribution savings, to a greater the in been XXXX, particularly we cost and key recovery enabler for lifts absorption. volume expected

In conclusion, start. to off solid is XXXX a

on Our And I our comments, trends improved as positioned that it's reflect we trajectory heads. for even believe we and better are clear quarterly volume share sequentially.

is people. and flywheel disciplined investments our capabilities it growth making faster spin are by operations to fueling we in our our in brands, in even in and Our working,

are our reiterating full guidance. year We

our which for shareholders. lead well is positioned bottom Foods the strategy balanced capital top term, will allocation top our growth deliver Over with and returns line superior tier, Nomad longer to attractive, coupled to

With that, Samy let Samy? greater call results detail. the over in to review our me first hand to quarter

you, good morning, quarter Thank at pleased present to solid Foods. am I everyone. Nomad of and another performance Stefan,

deliver X.X% we increased sales benefited FX first during markets quarterly positive favorable as mark while our were increased contributed from quarter fourth X.X%, in and the customer EUR lapped year. Organic revenues reported favorable in to sales. quarter, by and a quarter, and For the as mix return million. net the Quarterly volume to growth pricing year X.X% by on X% of ago High-rise for volumes track a X.X%, full contributed down remain XXX from product key to mix. to down X.X% we the many

declined XXX profit by quarter X.X% million. EUR First to

the quarter first gross As to year XX.X%. expected, decreased quarter by from basis XXX ago points margin

Let quarter. our me on spend margin a during few performance minutes the gross

gross as to call, year-over-year impact reset I in from cost change for earnings anticipated impacts inflation. mentioned sheet January. our by last margins we balance our This on inventory in inventory is our were purely margins and mechanical unit revaluation the only first quarter quarter pressured our changes first account As

mix our benefited basis, optimized and increasing moderating margin margin higher from the costs, promotions. On underlying gross productivity,

to margin to expect expenses. higher for million the lower in full to the through XXX enable We operating by higher gross profits deliver and Adjusted of gross to these and year quarter rest a decreased EUR XX.X% us the EBITDA due the year. drivers continue

expense year which increased in adjusted by due than investments, the step-up our by increased the operating Our E&P XX.X% planned ago to from XX%. more quarter

to and upgrade continue invest absorb XX% capabilities FX by described quarter indirect little including and to noncommodity due I our by our EUR per and as ordinary for expenses income net $X X.XX, wage declined X.X million X.XX to of First by shares other inflation. adjusted the nearly margin EUR a we earnings largely -- increased Adjusted earlier. repurchased X% X.X%, to than We share declined million. less headwind

buyback We share our current million have authorization. $XXX $XXX under million left

during cash the a Our generated working as We cash very higher off EUR interest. offset our XXXX. are XX strong quarter than flows free more in cash start of million improvements to strong capital adjusted

Specifically, EUR inventory working capital days the was quarterly declined as a benefit to substantially. of cash XX our flows million

project-driven capabilities our record enabled even Business robust high improved inventory management to and a level much more increased have our transformation service levels. volumes

the headwind On million expense of the the EUR other We conversion $X.XX was nearly quarterly allocation reprice. CapEx cash driven as free share million cash our term capital delivered XX of returns. from mainly flows EUR loan year commitment cash strong of our effective by phasing during last XX quarter. decreased per interest hand, cash modestly our shareholder we our XX% deliver timing dividend enhanced highlighting of and to last second our consistent declared to week, flow

to Turning for guidance our XXXX.

enabling quarter performance us guidance. first with our and We momentum, to reiterate our year our building are full pleased

X%, of per X.XX share XX% and We and X% the EBITDA adjusted revenue in continue to to EPS net adjusted to conversion to XX% of adjusted expect free X% EUR EUR X% range. growth of to flow X.XX cash growth

balanced XXXX with Our to volume sales for growth be X% volume and X% growth to full net the year. positive between relatively price/mix in is expected

consolidated the positive response in and volumes second to renewed turn to improvements sequential by our the begin faster our continued expect certain half We quarter as growth in flywheel investments. second

As expansion. well are deliver full earlier, tracking to year our mentioned margins underlying gross I

plans greater flexibility to flat to relatively full some and key our the coverage are year to costs of inflation lower in in continue potentially building lower benefit from We commodities. modestly for our expect

improving Our to to trajectory being continue volume high commitment in invest reinforce growth. our

in adjusted X, of elevated to share guidance U.S. We $X.XX the and continue first half. remain our $X.XX earnings to rate euro exchange XX% At particularly to to as in implies growth. expect our A&P translates EPS X% May spending into per dollar year-over-year XXXX,

to repurchases. shareholders opportunistic XX% deliver share dividends year conversion committed to track on flow the are cash including We returning adjusted remain to full through effective free and and capital capital XX% highly allocation, for quarterly to

It's quarter. a in I our to pleased the workforce. testament am the our and momentum work of with dedication first hard talented

we beyond. top-tier in in even more and growth confident and And line delivering are XXXX Our growth bottom top working. strategies are

I questions. over your call will operator for now to turn the the

Dickerson [Operator Instructions] Rob first from Our Jefferies. question of comes

speak question. maybe the could Just year like back year. turning growth I volume sometime, half of a seemed year-over-year quick positive QX. a and just then the of the for also to let's If I QX. couple back heard It was into in quarters, go go originally, maybe late we expectation it Samy volumes say, of positive think kind the

just So still forward kind bit. volumes that's like just based maybe up it's being the QX. the like end moved assuming upon feels a timing could It wind deployment. towards of And positive of little of I'm

building be brand And fully initiatives? that one, in curious, is would expect of I'm correct? terms say then you your when deployed to two, So you

start Well, with Rob. data, me let the

is trajectory in itself. the interesting think volume I

So minus X%, quarter QX this the last minus piece. minus year, QX, is is XX%; this so first QX X%;

is So do interesting," "very way. the this trajectory would I

we line and piece in during really pleased is trajectory HX full we way crossing volume basis. but overall Well, us. you positive see at expect The said, the being By should the the second in we're the growth, CAGNY, year key the continues is what way, a point on with also a And we the trajectory. said which before. yes, for

So that's where are. we

with full game. because flywheel. of last raised elements your the of resources, terms the really it's In of it's to We started year. the really all really point, end interesting QX a It of deployment A&P

QX. continued We in

be last in plus QX versus more year. something higher going continued the than versus way, QX. to last And XX% like even in it's by We year

it motion that I'll way, a on So back positive by are And you can and has, really still our see battles, that to in well. you very in the the starting impact do later. come --

that's piece. the big So

and come X big mid months piece a terms promo-based. consumers first would come that of all consumers really in environment living, RGM. back deliberate. what are back is that We the The to second would sure And wanted the It's make would of cost in the that them obviously, quality, some then and in. at was come the to that's the other like exactly what us, kick components superiority to innovation flywheel, we're point, really wanted And back. stage, and of obviously, we start to And seeing. the A&P

has compared nothing to So from that CAGNY. changed standpoint,

way, see market let's are XX which we we is see what terms, X%, in we're private mix what pleased in battles, gross minus We volume, these than, X%, with margin simple, also terms trajectory, in obviously minus different this categories, big faster that for of us. Because only must-win things of to for of The of there matters really is terms are in just but the minus make XX%, it reiterating and said components. volumes, share, not goes mix. least in by see terms say, to the the label top the terms we when within example,

of what what see see to that's in beyond. going we're QX combination the also we and and that's So right now,

for follow-up, the believe occurring margin Samy, the I on one should gross then expansion forthcoming. be do dynamics mean my understand I margin side. clearly, And gross Super. there I this in just Okay. QX,

QX think period you QX QX. I the of the relative a you dynamic have the in year, of nice the QX other for the applying the do rest same quarters. usually said to At seasonal quarters, time, each to to

is kind margin to step-up I'm like speaking in that should on in to year-over-year on also of a mean curious, half, QX. relative the fairly side. improvement through be but back just move QX by you're in including sounds QX the maybe we driven partially basis year, just So the what productivity I seasonality, it QX, as to then relative gross there a the seasonal material But

the gross So and I'm the for just rest essentially trying year-over-year margin year. of cadence to gauge expansion the potential

dynamic growth, as combined is gearing between is category. RGM declining prices. QX, with there even are intervention helping interpretation and and gross making say, from We're is pattern intended with well but the stabilizing inflation I interest let's on productivity together top I is grow, to your getting to and I standpoint made mean a in on for going is a of Rob, and with savings we year. that's particularly onetime which effective the the cost as taken absolutely the effectively mean moderately volume that we from low We've the resignation standpoint adjustment us potentially some point our exactly this scale where line have. such correct. a we're seen to margin the mean,

mentioned. the that factor point and you have will effectively seasonality in QX for QX that We

we and for growth in a see QX in in QX year the mean It's to effectively commitment, a So whole lower our and would I will step gross year. that margin bit the then be up leading QX. a

question comes of Steve Bank. from Deutsche Our next Powers

The again you as you commercial and into year, the where to that of in through you've question from February, at on January, seen month seen of at market and that will like see quarter-over-quarter data you perhaps the improvement was first Rob's quarterly I But somewhat continue progression XH? recalibration little about go from improvement least guess of look share the third first talk volumetrically bit the the the question, in the first that were Stefan, looks spoke when wise. the on what you just of I could we confidence month-over-month, March investments. you've the it maybe that sequential a a response that, to back step outside, we gives corresponds

clear. very to -- it's Well, linear that -- was I knew point, these -- it think never we think That's I your things. it's

and that you with I come think the it. the actions need is what to trend also see

the management. PX, promote QX revenue with -- growth very we in driven, PX was that So line solid knew

then PX. to And is I least phase we that's a lighter of, do. exactly in wouldn't pause, say, so but at of in what And terms bit there a promo wanted

So that was expected.

you difference going The obviously, promo. promo, by where lighter very we things. by to all go we're with the month -- sometimes revenue piece that what driven think stand. much big have a the as it So past depending is more, the past, higher on know, say, We're going month bit is now these everything probably and countries let's management. In was growth to

that's So different. very

kick the starting a really of it's then in Obviously, now. of We flywheel And really coming talk time innovation utilization back. the thing, full about between X the to us. big bit later, hopefully. Now, promo obviously, and flywheel innovations coming for the -- rest

piece. the that's So

And so what you think need of trajectory. X/X the the we your like point, to see about talking election, the you're is I year, first to

other we we trajectory see PX. words, is what So April in like terms -- of in in

so only provide minus nothing know see. not and XX%, has what way, way, to volume, the the So I is fundamental. by And you -- we the need by that changed we in is we X% of absolutely think why, these it's -- the absolutely volume, by terms compared volume the elements minus X%, to but we give And that's key. never contrary yes, CAGNY said what minus

we and we this. let's see But which what mix our of terms see price So portfolio. other we not is like forget within the and mix, in piece,

my that part next leads Very Very to And good. of question. good. actually, a

to -- your year. do price go forward. is from forward, year It So the mix calls as on sort is more here, full signaling And year which guidance, pricing contribution for a just implies relative less that Or you I I'm and that balance think above as curious, been we point expect between investments think you've do pricing? time prior we as volume Just go in about but to advertising curious promotion clear line here promotion above-the-line and otherwise? -- the your about think net about of investments very or how perhaps we incremental in earlier the we you how price? investments foresee, I'm innovation with from the

Steve, clear one be point So just super just of clarification, to there.

volume sales, price and say, We mix and together. adjusted net by say, have highlighting let's perspective comments let's

sharing focus that a volume with mix. you highlight that to has that the look earlier reason you number you mix, and I been clearly price volume, for at volume hence effectively important Stefan that on main the think it mentioning the because For were variable was us volume --

that So we was that have and just the addendum momentum of so have in huge enables see perspective to. you X, And actually the that but dynamics the volume us we see really provided alluding to there. the that around reconciliation the strong

slightly effectively I the into now pricing declining we last we we and of is that some less year-over-year, fact commodities, will that impact see moderately, the what from mean, right now as this becoming seeing you if So are environment to lap the standpoint. on year want

and by highly fact sheer large of side, other the growing. must-win profitable categories, are behind focusing countries, the meaning, our On that battle, let's businesses big investments say,

stronger We likely a few as will have move mix we effect forward.

of a going will positive the be and It's see promoting positively on will at development it's form to because have that time, a So you pricing very pricing every come volumes more going to At so will is the one will starts develop while some GM through we mix all the alluding solid mix legs but starting making going in of to see, your to and if side. volume do across skewed VM. X. moderating do thing you some be the gradual way. it that as what But But on moderate, to you towards be see price/mix not we'll we we'll same of than the will clearly just time, stronger single those this areas inflation, where be our to same was Stefan in to

comes of from CJS Securities. Jon Tanwanteng question next The

them. the seen they we have little that just there forward? Or bit you do I haven't I nice or XX volume maybe been the Stefan, a Win as the think, out It could XX about you you wondering Is Battles. wondering the talk Must was to if because of we talk make go if adjustments XX, of, grew to you was other was XX later? hear yet. to out I activated haven't that any of in could growth

point, we classifying -- are think know we your to E&C. things between I we are Well,

remember, like definition of by on means start. And may Must you you the Win XX, XX% XX, focus XX% Win So do which Battles the that by sales. started Obviously, to Battles, definition, we the become again. the have with we Must And around our of exist B the we these something the the XX, more again. have sales. and obviously X/X then focused much They represents we're highest it have A, C. And highest also let's the and again, the our we're share say, market And obviously, A of And and they margin. have doing around highest very progression.

of So doing and X% within we're also this in can you by imagine X.X% where far. Obviously, best, of minus terms sales that's volume. the

The Must probably others, is there Win [indiscernible] something of numbers. let's like Battles, these XX% say,

I line, our in doing of And reflective well, which very but the with money and in also say, also they're that's the promotion, where of just is business. but fine, putting rest we're So would E&P.

to this of we're the big terms increasing with is a increased increased this E&P, big A focusing demand, that's begin but the in time A difference. not demand Must also E&P, Battles, double only to we're brand which a increase. So And interesting see to the Win

rest neglecting it nutshell, in of Must So -- with of the the Win B they're at that to the Battles. a as business, put it's A in make I simple Must They would Battles. it doing, XX% the Win represent mean line say, let's not doesn't around business. we're total And the

the is. very clear. what of So allocation resources there is That's And exactly difference. that's a

the we coverage the you're But think about flywheel spending the execution just clear. on very of talk Stefan, saying one, the indeed I of profitable in will and Lithobid what a there, that's started context accelerating and and the XX%, of flywheel the we have of when big couple the most the

And sequencing QX really important the assets, quarter. of not the really But doesn't But prioritization allocate the we or So the your It's us continuing the effect of on momentum you highest of is mean do QX very are a it was for the is you in investing we what's the there's of not assets continue your the element maximized. an where part and for advertising when want the to important rest to growth where considering must-invest rest. there. in potential established profitability portfolio. in

much very that decline commodities That's your or mentioned think and how secured go have this it. of then from -- lower percentage does how seen the lower or to kind your compare remarks. seen inputs Stefan you you we much what so -- have that in Got seeing year? so in you've you as year? you Samy, helpful. And of you through prepared benefit many How future Or both that, leave I are the And far? how prices far inputs much room

frankly, balancing So best at price, that we XX% we and flexibility but want left produce the keep have, helps we supply are about possible context we about development say, at commodities to intervention enable we at effective full margin the with same improve you can to to our declining if performance let's probably slightly this year stage, the of that some us to a to you of us commodity to XX% want if effectively the and moderated in RGM covered overall. -- position and requirement us even some what uncovered -- have -- our intervention reinvest quite make on promo manage good sure our time allow prices to now

Mizuho John Securities. comes Instructions] next of [Operator The Baumgartner question from

With that volume we're wanted the should the recovery how I demand guess off sort aisle. the fish of promotion sustain seasonally you're touch Stefan, mix. non-price less lift promo and we for placing until from in and you freezers coming frozen that does drivers I outside of increases becomes for the non-price change a the QX? expect demand to also seasonally first to promotion on get support and the promote display summer, that and price to portable Maybe seeing specifically

And there is difference to the be change. is it structured than now material think don't be past. that going no, Well, I to more it's the a used in

used is at and So it's days these then or it's to one the a to this regional of great situation on show let's non-promo at tool what they really tool. promote. the great the not category-wise, is really go say, with the flywheel trade-wise We a only depending because decide that should level. And may really you but used center, it's then,

So country, structured the it's it's that very different difference way. right is country I now the really But be by way. would

countries regions. quite non-promo the countries we mention, are way are it's we're in are is the I And is still can there -- big. I Adriatic, can we pleased also where where some with working, we're likely testing then there tell some for very absolutely. obviously, results. it working, example, we you using of And So the in non-promo countries other side the And

the on Samy, was XX%. spending was but that only QX up blunted the the of growth? mentioned your if XX%, line, expense what A&P it productivity? What of then, And about Was total those I up to rate was is the And OpEx offset all? expectations XXXX? are timing a for operating shift there think Great. Was at there OpEx duration it sustain Stefan for total efficiencies,

that that definitely with now where on but trend year from and phasing, frankly trying effective the in there. flywheel up as the say, programs the as you we from, of we're But as synchronize same shift we well differentiation A&P efficiencies, -- across the gross have one say we from a see that of move is, I manufacturing standpoint, from within a trying with as that the to is I the overall effectively, same whole in-store step-up month-to-month, are forward. both but event, seen the we mean, point have exactly and move which a there productivity end. hence the flywheel different our do the And standpoint, program let's fact effectively good, at operating, a standpoint, I expense is cost-saving now our would are mean, the will on may being the spending been the I RGM, line synchronization activities gradual seeing that there, we the syncline, the below in then profit has operating step as a we elements I there on our would we some mean be that side time, effect the have I we of to way from elements effectively So mean, say, of -- bit

and the step change, The QX the even I year. from ramp-up more let's combined mean, point. clear, as XX% you will in intervention we the say, look have QX in mean, expense, And at E&P marketing so as of indirect audit And the QX. there investments them is a of and there's year, be together some productivity that combo in total with standpoint, of a an over increase we if I above

question comes Securities. next Jon from of CJS Our Tanwanteng

we Not taking before, to if you month-to-month that? April spoke and too be snapshot could that's how volumes and a but the much as should in on us trended focus you give of with

to I CAGNY. I way. monthly up it trajectory. we it's see. that an with interesting come am would would And those with very obviously what we much said say here at for in it's results, but what put I line

into are very head in row it X you years there make then comparisons strong had a puts from there. And difficult it to seasonally You've the there? comp? the about any and just as stronger AGX, quarters enough. think And to year-over-year Fair does takes Okay. a

the coated Well, the it's quite they're have you see to QX, X do frankly, as simple on it's starting let's all of to question. they, this What and seasonal, and I last is And which its know, when cream, rest these doing would over way from the this. And of with is in end finalized. bags be which We with performed switched business much let's fish of also prepay something more of commoditized, in also line things, business rest in changing which That's categories in margin fish. business, to terms vegetable deliberately which, and was is have lower frozen our have a point, really well vegan really where the quite fish, a nutshell, great these We're and was terms we're in QX fingers, say, April it's seen X margin business increasing sides, it things. say, of the years, volumes, your the Adriatic, and of more as food. have, that in all also in big the let's then because during QX, really we've the high-margin. And say, the you QX well. switching you well, to the QX, frozen QX, you food, -- commoditized QX ice in a they because we're is, piece a but margin. then it your big fish point, it business,

That's And reswitching ice food with earlier, to see takes It's time. low to cream. expand we margin. switch, frozen the finishing of try later. a we thing, business, from margin starting one second, the we are what is First, higher of seasonality

So you doesn't just -- we don't that Serbia we And rest we the and and as what's great standpoint, It have better in have that's of have know, Croatia, by we reinvent have mean it. We that great the to the have business. check people but way, coated volumes, great, wheel. what's you to fish to And gaining what the in are from we have just the is fingers, matters. we have have volumes, great they available change fish.

veg great have We business.

So a in a low-risk a list it's enlarge -- launch. a nutshell, quick really it's it's but innovation, [indiscernible] innovation. it's -- It's that's and

So we land the trajectory.

we have they the -- quite don't contrary. that they reached, think have So

from Yes, the point and effective that from progress benefiting note to Adriatic coming as on say, well. margin the into on that are let's the that important important the not say, dynamics actually, impact QX you the gross given in from cost the it's are coming you of was let's base the saw moving, will quite, only say, of top in QX earlier mix But let's the we well the translating see margin gross improvement making that as is margin over is the QX business. line that have I rest the but on and year for

we the of question-and-answer will over now gentlemen, Stefan and I for Ladies hand closing session. the have to reached remarks. end

and Judith, participation Thank thank your for on you, call. today's you

track have a growth. uninterrupted record proven of delivering We

you faster, to me even forward the the to of look is weeks. making opportunities about more confident meeting flywheel beginning growth spin of Our many our coming by us in and ahead excited I'm

attending, and disconnect and for now concludes sir. lines. you very today's Thanks your you may much, Ladies Thank event. that gentlemen,