0001628280-26-027937
SEC filingRevenue grew 8.2% to $10.1B on higher pricing and favorable FX, but operating cash flow fell to $467M from $1.1B due to lower cash earnings and working capital outflows.
Net revenue increased 8.2% to $10.1 billion in the first quarter of 2026, compared to $9.3 billion in the prior year. The growth was primarily driven by higher net pricing and favorable foreign exchange, partially offset by unfavorable volume/mix. Unfavorable volume/mix reflected volume declines due to pricing elasticity impacts, particularly in chocolate, candy, and beverages, partially offset by gains in meals, biscuits & baked snacks, and gum. Regionally, volume/mix was unfavorable in Europe, Latin America, and North America, driven by pricing elasticity in Europe and Latin America, as well as soft biscuits & baked snacks consumption in North America.
Net cash provided by operating activities decreased to $467 million from $1.1 billion in the prior year, primarily due to lower cash earnings and unfavorable working capital changes. Capital expenditures increased to $312 million from $277 million, reflecting investments in capacity and ERP system implementation. Free cash flow, defined as operating cash flow minus capital expenditures, was $155 million, down from $815 million in the prior year. The company continues to monitor commodity trends and manage input costs through hedging and productivity initiatives.
The company continues to navigate significant market and geopolitical uncertainty, including fluctuating consumer demand, inflationary pressures, supply constraints, and exchange rate volatility. Following military strikes, production at the Bahrain facility was briefly stopped and is now operating at reduced capacity. The company cannot predict if the recent strength in its Russian business will continue. Management remains focused on cost-effective sourcing and productivity to mitigate input cost pressures.