• Sweet spot for earnings – Q1-2 FY3/26 results were ahead of expectations in our view, demonstrating sustained growth momentum at the Food Group. All core business segments reported YoY sales growth, demonstrating broad-based progress and execution. The Direct Selling Group continues to focus on spending for customer retention and acquisition for residential customers in the Clean Service business, but there was a segmental improvement in profitability QoQ in Q2 FY3/26; we estimate a pronounced improvement here YoY in FY3/27 as the impact of these upfront costs tapers off. FY3/26 guidance has been maintained, which appears conservative in our view, with re-arrangement of segment forecasts highlighting resilient strength at the Food Group.
