Takeaways from the RBC CPG Summit

研报英文原文证据摘录

Takeaways from the RBC CPG Summit

near with mgmt.

working with urgency to make progress. The macro backdrop (tariffs, oil, consumer uncertainty) creates

a more complex path than investors might hope for, but management expressed confidence in CL's P&L

flexibility and its ability to sustain the 3-5% OSG algorithm over time.

CHD: Mgmt. tone was constructively positive with a portfolio well positioned for the current

environment. The two major takeaways were: (1) they believe consumer trade-down dynamic is a

genuine net tailwind for CHD supporting the ~40% of the business that is value-oriented and (2) M&A

optionality is always in consideration (both domestic and international targets) but they will remain

disciplined with their criteria. We believe CHD has multiple pillars of growth (A&H expansion, M&A

optionality, innovation, and distribution gains for brands like Hero/Therabreath/Touchland).

HSY: HSY sounded confident in its plans for 2026 and 2027 and now needs to prove that it can deliver

on its goals. Flexibility built into 2027 plans allows excess cocoa benefit to drop to the bottom line or

fund growth in 2028. The company is planning to re-invest behind premium chocolate and salty snacks

(the company has aspirations to be the #2 player in salty snacks). GLP-1 and SNAP headwinds appear

manageable for now (though the company acknowledged retrenchment in consumption in some waiver

states).

GIS: The operating environment remains challenging for GIS and we expect the company to experience

inflation above its 4% expectation that it previously suggested. Given the inflationary environment,

mgmt expects positive price/mix (via price-pack architecture, promotion adjustment, and mix).

Reinvestment, dividends, and debt paydown are the top capital allocation priorities.