everyone. Good Tom. Thanks, morning,
up X% balance and led due was good mix a by we're to price solid actions and mix. quarter, in X% mix. growth our results increased results to both for segment quarter, by volume $XXX Global net in more pricing base the than increased Volume noted, as with our million, our business favorable price pleased driven in sales Europe, Tom the As in softness of improved X%, specifically offset
this Some of year. fiscal new growth the accounting of beginning our we the a reflects that of adopted standard impact at
we recognize Specifically, that's standard such we sales we recognized limited products using offering that recipe, for a a or unique new the product as effects we the time products, manufacture customer revenue manufactured recurring, legally once McDonald's customized customer. a for Since define products an received customized a which quarter-to-quarter on time standard, order. as there and of new which much French a customized payment, purchase have of basis. products the customer's are we made impact of when fry, have single a right is at the generally enforceable a been we've sales hasn't to product Under
quarter, timing, a and million period. savings gain related of the drove of Gross short, mix the Overall than third increase favorable higher from volatility. loss to adjustments input, impact relatively prior in in inflation. in may $XXX supply incremental material increased and compares quarter-to-quarter in chain efficiency new higher growth increased to contracts. volume costs the a LTO million gross the However, is prices, all activity, transportation The In customized million. purchase offsetting unrealized products. profit we standard $XX or to create modest which of $X.X received increase, profit number orders year manufacturing $X million XX% more for a effect This mark-to-market hedging the reflects the also
excluding XX expanded margin percentage margin more than basis by gross points. adjustments, expanded the XX%, points to basis mark-to-market gross XXX Our
in recall, this pressure to after there quarter, more we accelerating As part fiscal half second some in the due pricing. you may that when we gross margin year, could updated of percentage guidance indicated inflation be with back cost coupled on the modest
increase raw supply of cost we chain This by digit result low potato teams, was with inflation in overall key in very a strong of despite third quarter. coupled to our mid-single had lower anticipated cost, our inputs than way. execution breaking prices some However, the was
enjoy Specifically allowed edible we exposure increases. benefits the falling structures that during limiting on prices to quarter, for oils while price of the to capitalized contract us
to the us trucking. helped software dropped facilities. new mix oil our continue We unrealized and As quarter, between transportation manufacturing impact prices culture realize will the by optimize settle we implementing contracts mark-to-market efficiencies our in to that efficiently rail we operating more drive future the inflation in that including benefit, costs leverage Lamb period. Weston tools And part mitigated during the at
of compatibility sales, increased to impacting initiatives, relatively we remain chain in was will and cost excluding million. supply and growth support to in technology $X expense to our capabilities a modest information these inflation million items expect SG&A about drive efficiencies. $XX due As the marketing, operating in result investments fourth operating SG&A increase quarter. The
and implement or and quarter operating further fiscal cost million. $XXX $X about new third build income system. in we into ERP expect expense to In to $XX advertising fourth million. and addition, million we in was continued XX% as XXXX build up increased and the them to rise promotional quarter, the Adjusted a IT
sales method Europe Lamb profit gross As I've Weston/Meijer just growth. which our Weston/RDO from outlined, in this was by strong and Minnesota investment Lamb in Equity joint $XX and million. include unconsolidated ventures, were earnings driven
to sales equity and associated about hedging crop. lower potato adjustments contracts, raw related with earnings to down poor largely million, mark-to-market were higher Excluding $X the due Europe volumes costs in
This remaining another plus two including EBITDA unconsolidated by EBITDA our acquisition put, million interest our about from million. million growth the Weston/BSW $X Lamb our venture. by increased $XXX million ventures. driven of in base EBITDA business, was or joint proportional partially the X% adjusted was to from unconsolidated offset in EBITDA gains together, our from the joint all it $XX a $XX million ventures decline joint putting So Simply operating in $XX of
which Moving total to million down million, of the is lower more income about decline statement, $X was $XX debt. a expense interest than average due
items up the tax effective last impact excluding XX%, rate comparability from about about XX% was of year. Our
rate in of our Tax implementing last recall, relatively U.S. timing was may low you the As Reform. year to tax related QX
share, in under to base per by a was partially The EPS included driven adjusted $X.XX related operating by was benefit $X.XX taxes. sales lower earnings $X.XX. of higher the gains products which earnings new customized and to offset business, increase additional Turning to up standard, diluted equity revenue our
which the review primarily U.S. all Price standard. as with the mix X%, Global well rose based additional customized reflecting segments. X under with points new the XX%. grew related our to as of about up revenue let's for X% chains, results top adjustments associated America contracts. Now XXX multi-year pricing outside products sales Volume for were business sales of our each Sales segment, North includes
Tom volume or and promotional quality the offerings time we As volume Sales U.S. in we X and sales X% of that contribution profit, remaining product chain American delivered Asia supply new growth Service the the savings as led of improved we Food XX%. pricing our inflation. branded product by delivered revenue initiated expanded mentioned, well and to the points. increased increased $X by by reflecting services both partially chain of increased by increased supply by fell segment customers cost Its food the points increase, gross contribution efficiency fall the growth driving as Weston for customized Sales of were contribution American Volume mix. limited advertising X% the XX as offset restaurant mix, product the in to Services savings customers increases percentage margin largely increased increased benefit and million our was expense X% products mix margin mix Europe. with strategic price The to which growth affected and and Global’s We're modest additional sales in quarter, by margin pleased U.S. key efficiency and the Favorable Food outside short basis basis the X% North X%, growth, drove margin, driven segment restaurant sales or Retail restaurant very partially modest mix. XX growth increased Global's customers top favorable customers XXX million especially price high chains points. international increased to lapped by Price is as year. and markets, XXXX, in mix in with distributors including of of due expanded the cost volume offset crop in volume chain were $XX new improved including less percentage which the benefit under prior in North inflation. X%. as X%, Lamb Sales products. well contribution price by actions standard,
lapped the the As that expected, delivered we XXXX. quarter fiscal of in X% as we growth volume volume XX% third declined
branded with as branded input mid-teens quarter, the offset private Idaho Grown year higher distribution recall, lower products. gains benefited growth $X in mix. the inflation may volumes Retail’s advertising label favorable other contribution led of in timing to or our promotional manufacturing, X% you mix quarter, As second price cost products continue margin and product as million Grown the of current and improve from along last from more transportation we declined product Idaho. shipments as well by in than by driving In and expense modestly QX
contribution fell margin a product basis XX As percentage result, points.
cash to X adjusted Moving about times. to total the the $X.X our balance This puts flow, end debt billion. net sheet debt and of quarter at EBITDA our our ratio at was
We remained nine cash acquisition of that leverage months continue explore which X to up first the ratio opportunities. million generated the XXXX. earnings fiscal year, to strong With growth. nine about flow, was in of months cash target continue the range to That's respect of as of and X.X potential from a below operations, driven being to comfortable times million first we by during $XXX $XXX from the we
same. remain cash net Our priorities deploying in the
far business and of our spent in year Hermiston, capital on line new Oregon. about so expenditures, fry top to including our million continue we Our is $XXX the in invest construction this to priority
the Tom track line Hermiston be operational May. mentioned, to As on is in
interest Another Lamb we've expanded million. global completed the top purchase This of Marvel about is acquisitions. remaining Weston/BSW of in the priority our million $XX footprint for the and year, $XX Packers for with acquisition
to dividends in paying about Finally, XXX,XXX the first in million we're nearly $XX million. returning repurchasing nine months, shareholders, cash $X including shares and for
our outlook, to we Turning close momentum good to confident year. our as continue out XXXX we're ability fiscal our updated in the operating
from we've we growth estimate high-single for mid After our the digits. to our strong sales earnings As rate high of XXXX. high fiscal implies grow results raised expect previous and sales a result, mid single at sales the fourth outlook third quarter. single digit to to digit in quarter, This now posting in
versus the ventures and unconsolidated new range million, million the profit we've of For growth a $XX earnings, about or million $XXX $XXX at million, are increase the of up including XX% joint EBITDA, $XXX an range. that's a $XXX for raised Sales year, our of to million range driving target adjusted from nearly to last of to midpoint increase. gross
in inflation profit the anticipated the mix. For gross gross growth to with well higher in least Previously, line and with still as expense. depreciation year lag we of targeting transportation, manufacturing input the year, full and as half inflation we're higher potential at more growing and due increased that than sales, price mix offsetting profit may second sales the unfavorable productivity growth for favorable costs
of input drive transportation growth with and I as been our third performing enabled us than However, inflation expected, gross described the manufacturing earlier, has the to grow been impact This have and facilities margin expansion lighter well. along in strong line solid to quarter. top
the to to fourth in modest operating to remain efficiencies. manufacturing we expect our relatively continue quarter, For deliver facilities inflation
production of absorbing profit we associated least million result, at with be in line our around $X gross As growth, a expect will growth even after sales startup likely costs Hermiston with line.
begin our step Regarding behind to we as to the continue marketing, our especially we capabilities investments quarter in ERP anticipate operations SG&A, system. in fourth will and IT build, innovation, spending sales, up
continue investments be couple behind elevated a previously we've we these spending noted, to will of expect for years. As
SG&A sales promotional expense We to X.X% target X% total over and long-term. continue to to excluding return a range to the advertising of of
due mentioned, Our to we earnings effect we anticipated. and prior the short versus out earnings, the sales as in will higher equity fourth year, of Europe largely In is crop equity costs quarter, largely volumes. Tom the decline as potato the expect lower playing had
to growth updated good high-single drive at digit sales and growth balance high of year. the we're price growth, mix. improved to fourth level, the with our looking we So a expect outlook In overall volume a quarter, single full high sales for digit targeting at mid
ventures including to unconsolidated million softer for joint Europe. million expect be to will $XXX higher of quarter, In growth deliver we earnings, increase year. the $XXX drive gross profit adjusted tempered SG&A the and in will investments and business fourth results sales by in base EBITDA, and For our in
the from venture. acquisition BSW other also the We million benefit $X have expect about of of our half a to joint
couple We other a our also changes financial targets. of to made
XX%. previous effective of now from year estimate the we an tax down taxes, rate XX% to For full our that's expect XX% for of
to For we anticipate be XX%. it will quarter, the fourth that about continue
be For from slightly it now $XXX to capital million. about million, estimate we're $XXX of around expenditures, targeting previous down our
other of amortization $XXX full Our same, of remain for approximately $XXX including interest depreciation million, targets financial the expense total the expense year total and around million.
Let me to back Tom, comments. turn the call over for closing
