Total U.S. retail takeaway increased 7.0%, with candy, mint, and gum (CMG) up 8.1% and gaining market share. However, salty consumer takeaway declined 4.1% and lost market share, indicating varied performance across product categories.

The company completed the implementation of its enterprise resource planning (ERP) system in the beginning of the second quarter of 2024. This is expected to enhance operational functionality and provide timely information to management.

The company's multi-year productivity initiative, Advancing Agility & Automation (AAA), aims to improve supply chain and manufacturing-related spend and optimize expenses. Total pre-tax costs of $200,000 to $250,000 are expected from inception through 2026, with ongoing annual savings of approximately $300,000 expected at the conclusion of the program.

Selling, marketing, and administrative (SM&A) expenses increased 6.3% to $618.0 million, driven by a 12.0% increase in advertising and related consumer marketing expenses and higher investments in capabilities and technology.

Business realignment costs decreased from $0.8 million to $0 million, as the International Optimization Program was completed in 2023. A new Advancing Agility & Automation (AAA) Initiative was approved in February 2024.

Favorable supply chain productivity contributed $57.7 million to the decrease in cost of sales, indicating successful execution of operational efficiency initiatives.

Market prices for cocoa futures have increased approximately 140% since the beginning of the year, leading to higher commodity costs. The company is managing this risk through forward contracts and commodity futures and options contracts.

The company is monitoring for any significant escalation or expansion of economic or supply chain disruptions or broader inflationary costs, which may result in material adverse effects on results of operations.

The implementation of the new ERP system results in material changes to internal controls over financial reporting, and the company is updating the internal controls as appropriate and will continue to monitor the impact of the implementation on financial reporting business processes.

U.S. candy, mint and gum (CMG) consumer takeaway increased 8.1% and experienced a CMG market share increase of 6 basis points. Salty consumer takeaway declined 4.1% and experienced a Salty market share decline of 16 basis points.

Net sales increase reflects a favorable price realization of 5.2% driven by higher list prices primarily within our North America Confectionery and North America Salty Snacks segments.

The International segment experienced volume declines of 4.8% primarily driven by Mexico, indicating challenges in specific international markets.

Favorable supply chain productivity contributed $57.7 million to the decrease in cost of sales, helping to offset higher commodity costs and other inflationary pressures.

The ongoing ERP implementation is aimed at improving operational efficiency and providing timely information to management, suggesting a focus on streamlining operations.

The Advancing Agility & Automation initiative is expected to generate approximately $300 million in ongoing annual savings by 2026, indicating a focus on long-term operational efficiency improvements.

Capital expenditures increased to $213.3 million, primarily to support the ERP system implementation and capacity expansion, indicating investment in technology and infrastructure.

The Advancing Agility & Automation (AAA) initiative aims to leverage new technology and business models to further simplify and automate processes, indicating a focus on technological innovation.

SM&A expenses increased due to higher investments in capabilities and technology, suggesting a focus on enhancing technological capabilities.

The company repurchased shares for $494.2 million, indicating a continued commitment to returning capital to shareholders.

Capital expenditures increased to $213.3 million, primarily to support the ERP system implementation and capacity expansion, indicating strategic investments in infrastructure and technology.

Total dividend payments to holders of Common Stock and Class B Common Stock were $273.4 million during the first three months of 2024, an increase of $66.0 million compared to $207.4 million in the same period of 2023.

The document does not contain any specific information about ESG initiatives or progress. The risk factors mention environmental impacts and stakeholder views on climate change, but there are no concrete commitments or actions described.

The risk factors section mentions risks associated with climate change and other environmental impacts, and increased focus and evolving views of customers, stockholders and other stakeholders on climate change issues, indicating awareness of ESG-related risks.

The company invests in partnerships that make equity investments in projects eligible to receive federal historic and renewable energy tax credits.

The U.S. consumer continued to drive momentum within the economy; however, the company expects some moderation in consumer spending throughout the remainder of 2024 as cost fatigue and labor markets restrict income growth and constrain consumer spending power and purchasing behaviors.

Certain geopolitical events, specifically the conflict between Russia and Ukraine, have increased global economic and political uncertainty. The company is continuing to monitor for any significant escalation or expansion of economic or supply chain disruptions or broader inflationary costs.

The company continues to experience a dynamic macroeconomic environment, including price volatility related to select commodities, resulting in corresponding incremental costs and gross margin pressures.