Oct 1, 2026 earnings call — Quarterly results and Unilever Foods deal update
Total sales grew 17% in constant currency, with organic growth of 2% and adjusted EPS of $0.86.
Revenue $2.0B (est $2.0B) · EPS $0.86 (est $0.76)
Key quotes
"Our priorities are clear: expanding distribution, accelerating portfolio renovation and refining revenue growth management to address increased price sensitivity in select segments, including through optimized price pack architecture."
"Total net sales grew 17% in constant currency and included 2% in organic growth, with the balance driven by acquisition contribution from McCormick de Mexico."
Analyst Q&A 9
US consumer volume recovery steps
Q (Andrew Lazar · Barclays): Analyst asked how successful the Q3 actions were to improve Americas Consumer volumes and what else is needed in Q4.
A: Management said they saw improvement in Americas Consumer shipments and consumption, but consumer pressure and slower implementation limited progress; they will continue levers like price-pack architecture, search spend, sharper promotions, and assortment work into Q4.
"We definitely saw improvement in our business, especially in the Americas Consumer, not only on shipments, but also consumption for the quarter." — Brendan Foley (CEO·CHAIR)
Packaging supplier problem
Q (Peter Galbo · BofA): Analyst asked for timeline and details on recovery for recipe mixes and then specifics on the packaging supplier issue and remediation.
A: Management said the recovery for recipe mixes will be gradual and focused on Cholula in Mexican aisle and restoring core aisle strength, with tactics like retail media and pricing. For packaging, they said it affects a specific packaging component in Consumer Americas, is a conversion issue not raw material, and they are mitigating with other packaging formats.
"So as we work through that, and it tends to be -- it's more of an industry issue, it's not just impacting us." — Brendan Foley (CEO·CHAIR)
Cost inflation timing and impact
Q (Thomas Palmer · JPMorgan): Analyst asked whether input cost pressures are a lasting headwind into 2027 or mostly a timing issue between Q3 and Q4.
A: Management said some expenses shifted from Q3 into Q4 and they raised their inflation guide to about 7% for Q4; they expect continued inflation into 2027 and will use their CCI program and other levers while providing more on 2027 in January.
"If you take a step back, we came into the year with an expectation of 60 basis points gross margin expansion versus 2025." — Marcos Gabriel (CFO)
Unilever Foods momentum before close
Q (Stephen Robert Powers · Deutsche Bank): Analyst asked how confident management is that Unilever Foods momentum can improve before deal close and how that affects synergies.
A: Management said they cannot fully comment on Unilever's business but think it likely faces similar consumer and cost pressures; they are not more concerned about the combination's long-term thesis and expect to work collaboratively after close.
"So that is primarily the support that we're going to get from TSA for about 2 years." — Marcos Gabriel (CFO)
Slowdown with CPG customers
Q (Robert Moskow · TD Cowen): Analyst asked what caused slower momentum with CPG customers and whether reformulations or new-product work was delayed.
A: Management said the slowdown was mainly from an acceleration of industry volume declines, softer QSR traffic and softer-than-expected consumption by CPG customers; they believe some impacts were short term and their innovation and customer diversification helped offset declines.
"I think it was more based on overall acceleration of volume declines that we saw in the industry over the course of the third quarter." — Brendan Foley (CEO·CHAIR)
US price strategy and assortment examples
Q (Alexia Howard · Bernstein): Analyst asked if US pricing will turn negative in 2027 and for examples of portfolio assortment optimization.
A: Management said they do not expect pricing to go negative, though pricing contribution may be lower; assortment optimization means focusing on top-selling flavors, ensuring those are on shelf, implementing price-pack architecture, and replacing low-turning items with innovation.
"It certainly will be perhaps less pricing contribution than what we've seen year-to-date, but we don't anticipate it to go negative." — Brendan Foley (CEO·CHAIR)
Consumer demand and what fixes it
Q (Robert Dickerson · U.S. Bancorp): Analyst asked what will fix weak consumer demand and whether actions like renovation, assortment, and brand spend are the right path when consumers stay value-conscious.
A: Management said they are not relying on a healthier consumer and expect the environment to remain mostly status quo; their approach is to meet consumers where they are by delivering value, growing in e-commerce and club channels, and keeping a flavor-focused portfolio with strong on-shelf competitiveness.
"We think about this environment is pretty much remaining status quo, if you will, especially as we look at perhaps 2027." — Brendan Foley (CEO·CHAIR)
Ability to withstand supply chain pressure
Q (Max Andrew Gumport · BNP Paribas): Analyst asked if the company is better able to withstand rising freight and supply pressures now versus the COVID bottleneck years.
A: Management said they have focused on resiliency and that their long-running CCI program has been elevated, with process standardization and technology helping efficiency; they feel more confident entering 2027 than in 2019, though headwinds remain.
"I would add that our CCI program has really stepped up over the last couple of years, Max." — Marcos Gabriel (CFO)
McCormick de Mexico drivers
Q (Scott Marks · Jefferies): Analyst asked what drove stronger-than-expected performance at McCormick de Mexico and the outlook into Q4 and next year.
A: Management said strong execution in the mayonnaise category and growth in herbs and spices drove the performance; they remain positive on long-term growth in Mexico and see more upside in categories like herbs and spices.
"I would go back to that and -- the performance of the mayonnaise category was really pretty strong overall." — Brendan Foley (CEO·CHAIR)