Thanks, X. our Mike. I'll with highlights quarter on Slide third start
partially our broader compared rightsize merchandising. the with $X.X lower particularly X% to margin As and to own material and These improvement trend The net Mike decrease broader sales billion our reflect by year. quarter, the We a conjunction as operations align by about of volume compared in last outlined, favorable to revenues offset This to actions, was pricing manage EBITDA third for of our portfolio recorded was an due efforts our combination of adjusted food cost higher driven in our discipline was beverage change volume, factors, results costs. environment demand focus on supported mostly environment. the quarter but with QX. and a demand resources in to primarily
foodservice, blue-chip volumes aligning volumes cycle. in quarter. down end were to to customers that positioned Overall well X%. Food long-standing markets industry continue by are outperform However, X% over down service the were we outpace our their our the with in
mentioned consumer the during the of industry X%. and as and traffic year-over-year merchandising broader This volumes repositioning, were which patterns reflects decreased the includes impact foot outpaced Mike value well which portfolio as spending over quarter. we X% beverage over down our trends, volume initiatives earlier. However, strategy Food
translate our that we a due we some attractive largely we more impacts Price/mix up of in during As as -- segment. business to as Beverage reflecting favorable to to was segment, growth product the and costs pricing mix the Foodservice mix. plan, X% favorable future we that in quarter, but near-term Food anticipate higher pass-through the execute expect well expect to volumes, and the material Merchandising
a of representing costs costs, volume. decrease higher lower by million, manufacturing lower compared attributable offset product and The favorable segment. is in reflect mill. mix costs This and incentive-based challenges X% in Adjusted Bluff segment material is was favorable Higher in our adjusted year. Merchandising cost pass-through Beverage to and owning primarily decrease manufacturing partially sales EBITDA the $XXX the to at prior net quarter the during EBITDA pricing Food the Pine compensation Foodservice the final
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favorable to cost of the EBITDA. during We to second timing cash of manufacturing perspective, result planned flat free flow Foodservice Food by compared lower partially generated lower the volume. net Merchandising in offset a lower and outflows Adjusted adjusted and quarter. Beverage million, increased significant pricing which in a with mix, due as largely and second sales pricing, higher the increase outage segment. flow cash from From of were and offset effectively pass-through the sales quarter-over-quarter mill quarter, a by Free mix product a material and benefited cash costs the revenues EBITDA favorable primarily was segment favorable XX% volume, favorable $XXX
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effort And on value an to drive deliver leaning in third, customers our are in activity more consumers and promotional volumes. to
points. QSR Importantly, to they increased the quarter-over-quarter, last of manufacturing by Adjusted Thus little X% material Net million a the and quarter. largely adjusted EBITDA their were volume. although in incentive-based affordability to intent increased primarily compared several some margins extend increase reflects due volume offset mix, improved costs, and offset resulted promotions net $XXX cost favorable campaigns customers helped leading into lower of costs. basis have over far, haven't pass-through fourth sales have by pricing, XX to EBITDA year favorable to promotional flat lower issues year-over-year the partially communicated primarily product The compensation near-term higher to consumers. offset by growth for revenues
and favorable manufacturing by XX% and by Adjusted EBITDA cost XXX material EBITDA costs, margins by of driven basis increased by pass-through product increased favorable mix, adjusted points, higher offset costs. lower net pricing partially incentive-based
year-over-year through merchandising to volume to November. our beverage value trends as observed the of second quarter. demand, were during In bird over other we breakeven the quarter driver as volume impacted reflect eating Industry closer during that such effects protein of conditions performed at bakery, Outside in with normalized items, overall shift the continue to impact although Food the flu egg save volumes money. reduced production of us industry well during XX. continue mostly quarter. prioritizing the by Slide by and volumes from In to same early out impacted previous and the strategy. are are the dynamic. Turning to broader staples Consistent order quarters, results have the of was consumers both to eating which continuation in of carton the main consumers be Discretionary like the produce, home quarter, for
target As we several presence that and innovation expanding Mike have mentioned, markets. our underway promising exciting new in and the initiatives
We recognize some our on there be may impact short-term volumes.
foundation will favorable lay a for mix. However, ultimately steps we that important as these the growth and future view business adjustments more
optimistic to value partially our including favorable horizon. by net mostly product sales due mill were to costs. driven decreased on our compared We block by of by versus fine favorable operational costs, and basis about effects higher into and year revenues offset Lower product manufacturing mix partially primarily broader in volume volume. on challenges volume. lower higher all costs, lower operations margins offset EBITDA incentive-based positive XX% prior was compensation demand This focus EBITDA and is and XXX lower this year-over-year. sales X% due the mix. sales the the down account, the Adjusted last manufacturing points environment, declined volume over to Taking year, Adjusted segment are
sequential we were sales XX%, due by planned pass offset volume. during interest such outflows during to lower million, was costs mainly lower pricing, tax to material due reflecting X% attributable which On sales flow sheet $XXX EBITDA and cash cash adjusted Slide a components timing manufacturing corporate increased a lower higher incentive-based have Free Adjusted was XX, balance down by the seasonal and result key On flow. partially volume, EBITDA. favorable of cash due offset pricing actions. net of to cost basis, our and adds QX a quarter, as revenues second costs net from items benefiting partially pricing of highlighted trends, payments. favorable lower the of mill and
debt our track goal ability million to net $XXX with Our us relative reduce the consistent our second down was decreased year-end our strong the to to quarter leverage quarter approximately with by step during X.Xx, generate third allowed on Xx. The our to reaching cash net and flow of expectations.
to future to reinvest opportunity also margin expansion. in cash see flow provides and drive strong the growth our us Our generation operations
of profitability significant on we've cost embarked base concerted expect will advancements diverse our stakeholders, believe and reinforcing operations. effectively to needs that we and customer increasing Over these efforts more achieving the contribute will savings. at improve enhanced our strategic these to the our our aimed also growth to Ultimately, several years, enhancing not sustainable for only We excellence. initiatives our productivity, ability meet commitment streamline past X but returns
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cash the the reduced net our the removal to proceeds to EBITDA leverage and of with of Finally, from adjusted divested as the operations, X.Xx X.Xx ratio negative attributable XX. September net
Turning to Slide XX.
On I'll cover the highlight and also the slides, building XXXX next guidance XXXX. blocks for our X for
are full that was in at We range EBITDA efficiency resulted our the million Bluff mill uplift due updating provide guidance approximately reflects is continued ramp-up to $XX gains. some for as our sequential $XXX support quarter It which lower Pine the between of million volume EBITDA previous with along also operating in to a owning adjusted our QX million. adjusted partially $XXX be challenges This year final and than promotions forecast. during industry
in cost-saving guidance last footprint The what our expected to positions improvement benefit industry expected Our our with demand. and to cost $XX we us from initiatives, we the of response commitment quarter. to shared our cost-saving from initiatives, that optimization also adjust structure effectively realize assumes combined continuous with million benefits consistent
spend to compared full million a to previous year capital in $XXX spend. our million of guidance timing our million of range project to expectations due lowered to $XXX a We shift of XXXX $XXX
is million flow $XXX of Our guidance $XXX free million cash unchanged. to
our expectation reiterate Xx our approximately reduce year-end. net by ratio to to leverage Lastly, we
responded emphasizing note the strategic despite our environment, Slide closing market significant XX. have progress significant to of we objectives mill. Turning that have the our made also Bluff and sale the of uneven while important Pine milestone against to It's
XXXX Looking adjusted original back guidance to range. our EBITDA
EBITDA our for was Pine $X that adjusted we to expected Pine full core $XXX Excluding anticipated XXXX million, $XXX from million. contribution range time, approximately $XXX At Bluff year million Bluff, million million a to of the from for total $XXX operations.
our at the planned we course Over of were reliability in year, mill, the which experienced the QX. challenges some related outage of to
negative on the X Pine $XX we The updated year swing, of EBITDA October timing Bluff sale guidance guidance. which EBITDA factored Luff Additionally, XX end the the effectively and is adjusted months the result X, that from million based of Bluff range. our on adjusted expected full for QX Pine ended contribution removed and million our is which a into generated is September $XX from
to Bluff, forma priorities. $XXX responded strategic XXXX, as deliver to There Excluding and takes range. we pro is compared scaling our to been initial guidance However, broader our operations adjusted million challenging, EBITDA environment are Pine expect our puts to costs macro by which $XXX managing for comparable against we million the of our to original guidance generate has and
Looking to million next XXXX, tailwind our the we'd think we plan. $XX incremental as this our an rate, in run to from expect provides a else million ahead heading using and footprint into pro equal, to year. optimization all forma range $XXX Overall, solid million $XXX earnings momentum achieve cost savings
Before the back like the by I'd recent events. to by I over challenges weather call end addressing Mike, posed to turn
which chains. and Specifically, in power late resulted by Hurricane affected Milton significant unforeseen adversely followed in occurred which challenges October, our supply flooding, Helene, which include These early outages Hurricane difficulties. in September,
loss, marginal encountered backup on production some costs facilities we cleanup and operate repair While able our power. and to were
residual regions there overall and As the you might that the some patterns traffic was storms we broader restaurant purchasing on operate. expect, foot consumer affected had impact in
significant again a our any events operating impact updated not and speaking model. these included we in resilience impact from to the of However, expect has financial our do range, new been durability and guidance
these navigating We back call our that, Mike, times safety their the to well-being appreciate I'll and our Importantly, top turn resilience over to echo dedication are With tough Mike. together. employee and priorities. in truly
