Kellanova

Good morning and welcome to the Kellogg Company's second quarter 2023 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session with publishing analysts. At this time, I will turn the call over to John Renwick, Vice President of Investor Relations and Corporate Planning for Kellogg Company. Mr. Renwick, you may begin your conference call.

Thank you, Operator. Good morning, and thank you for joining us today for a review of our second quarter results and an update on our outlook for 2023. I'm joined this morning by Steve Cahillane, our Chairman and Chief Executive Officer, and Amit Bhanati, our Vice Chairman and Chief Financial Officer. Slide number three shows our forward-looking statements disclaimer. As you are aware, certain statements made today, such as projections for Kellogg Company's future performance, are forward-looking statements. Actual results could be materially different from those projected. For further information concerning factors that could cause these results to differ, please refer to the third slide of this presentation as well as to our public SEC filings. A recording of today's webcast and supporting documents will be archived for at least 90 days on the investor page of KelloggCompany.com. As always, When referring to our results and outlook today, unless otherwise noted, we will be referring to them on an organic basis for net sales and on a currency neutral adjusted basis for operating profit enterings per share. And now I'll turn it over to Steve.

Thanks, John, and good morning, everyone. We're pleased to report another better than expected quarter featuring two key elements depicted on slide number five. Not only did we sustain top line growth that remained better than our long-term targets, But we did so across our portfolio and geographies, with growth in all major category groups in each of our four regions. And we did so even as we lapped the prior year's retail inventory replenishment and particularly strong in-market performance. We also continued to experience a sooner than expected recovery in our gross profit margin. Much of this is related to bottlenecks and shortages diminishing. This recovery is ahead of schedule, and it was a principal driver behind our better than expected profit and earnings this quarter. Also encouraging is the momentum we've continued to see in our biggest, most differentiated brands shown on slide number six. These advantage brands made up half of our net sales in 2022, and they continue to outpace our overall growth, creating both top line momentum and a favorable margin mix. So, when we put it all together, the earlier than expected margin recovery and the sustained top line growth across our portfolio, you can see why we feel comfortable raising our full year sales, profit and earnings guidance again. We also remain very active on our social and environmental program, Kellogg's Better Days Promise. Slide number seven shows just a few examples of actions we took during the quarter, including donations and volunteering in the area of hunger, and tie-ins to important commercial programs with customers. The slide also shows another wave of recognitions that we have received, simply confirming what we already know, that doing what is right is in our DNA. In the center of the slide, you can see that we have published an update regarding our progress toward our Better Days targets. On social goals, like addressing hunger, or environmental goals, like reducing our admissions, or in diversity goals like gender representation and management, we remain ahead of pace on our better days goals. And of course, we remain very busy in getting ready for our pending separation. Indeed, on slide number eight, most of what you see under the Q1, Q2, and the Q2, Q3 phases are now complete. The team has done an exceptional job of digging into every detail, every brand, every process, every role. to make sure we have left no stone unturned in our quest to create two successful value-creating companies. And as you look to the Q3 phase, you can see a few milestones that are very much upon us. On July 24th, WK Kellogg Co.' 's Form 10 was filed publicly, providing you with important information about management, strategy, capital structure, and carve-out financials. On July 30th, Just this past Sunday, we began to run WK Kellogg Co. and Kellanova in parallel. By running the water through the pipes, so to speak, we can identify and address any process gaps and other opportunities well before the separation takes place. Employees in new roles can transition properly. Services under the transition services agreement can be ironed out more completely. And while this requires incremental expenses, They are already incorporated into our guidance. And then, less than a week from today, on August 9th, we will host our Day at K investor event at which leaders of both WK Kellogg Co. and Kellenova will present to the strategies, the capital structures, and the financial outlooks for both companies. And we still expect the separation transaction to take place during the fourth quarter because we can't know the exact timing of the various customary approvals We can't be more specific than that quite yet, but we have every confidence that it is on track. In sum, the second quarter was another very good quarter in terms of financial results, sustainability actions, and progress toward our spinoff. And now, let me turn it over to Amit to take you through our financial results and outlook in more detail. Thank you, Steve, and good morning, everyone.