Thanks, Tom. Good morning, everyone.
during pandemic ventures quarter. believe earnings $XXX we fourth nearly quarter operating EBITDA and of to growth through increased of including greatly to we disruption $XXX $XX and a providing We sales sectors, that times our X% dramatic. has our the in sequential half our increased million network than for that million has the our two pandemics noted, $XXX costs lows manage ability restaurant and backdrop million profit fiscal sequential The weathered by leverage on doubled from from to effect the QX operations the worst distribution a the as Tom joint the most XXXX. across from and deliver we As us a we to was improved Demand improved of on gross million control increase in and manufacturing chain. first more more
levels, this results financial environment performance down encouraging. the and our pre-pandemic remain our improvement year, versus demand and in While is below prior sequential
million. Net traffic potato down quarter restrictions turning operations. on other was by Sales to service outside frozen to -- our the government demand home year-over-year to $XXX Now imposed restaurant versus prior XX% continued declined year volume sales be XX% as food affected and results.
$XX our million costs fourth from to of million down related supply incurred costs that the this pandemic chain about to compares million, we from cost of quarter. were related that in the performance. incurred production discuss of with $XX shipment food from after increased the our and million service both inventories X% first retail reloading domestic this our in in due progressed. in the to to improved business Profit markets due more reviewing steadily costs million detail inefficiencies and on $XX $XX $XX early fiscal network. That some arising related weekly million declined utilization manufacturing we XXXX. as segment pandemic customers segments. mix of international a related and However, fourth quarter when million for improvements costs $X quarter That about disruptions Gross trends Price most operations. Of is channels about utilization benefit manufacturing in realizing I'll each our in and of our $XX our quarter,
reminder, runtimes impacted a costs network and down, to by As labor sanitize associated products. our for for compensate with modifying is facilities to inefficiencies products shut manufacturing primarily other to across food by related designed to restart relate costs and these cost facilities largely production manufacturing impacted costs retail and incremental and online COVID, and COVID, service reducing schedules
The obligations, and for about of crop, other $XX remaining included supply incremental the of and sanitation as well about XX the raw safety, transportation and $X chain year $X consists to warehousing million costs. costs, employee non-utilization purchase related of XXXX, enhanced expense protocols, million as for million potato
expect inefficiencies. costs to related and we and incur discussed, previously we non-utilization utilization As
expense, pandemic expenses lower non-recurring by efforts, employees. supply method sales offset Cost $X up As offset earnings costs million decline by over efficiency essentially impacted The management long $X year-over-year in including and ERP our and million million, were was million as remaining operations in implementing flat. and reflects $XX our cost SG&A related $X.X mix, certain and in expenses, related adjustments new the $XX are a associated million of sales to reduction from million retaining of quarter system $X change largely pandemic. million promotional mark-to-market price profit gross savings. in a year. $X volumes favorable partially with last chain net largely Equity advertising the manufacturing
half with our the base excluding mark-to-market earnings costs incurred million, in unrealized equity business. adjustments, related However, to we declined similar pandemic due to what of impact $X
the $XX EBITDA About decline due discussed. driven in first While quarter, was down year, European of by gross last million. down in profit. venture. was weekly increased of The I've last to pandemic Diluted the earnings costs related was down EPS steady million, $XX our a well $XXX pandemic shipments including ventures result EBITDA quarter and sales of joint $X.XX significant in as remainder the million or joint improvements the from year. sequentially was decline XX% related in versus by equity as as decline $X.XX costs our lower
includes QSR, X% mix. our Now the were of demand which well top mix negative moving full as of a in quarter. to our U.S. all of as as restaurant segments, sales outside Price due XXX chains, in down decline XX% North segment, for sales the America service and based Volumes the to fell XX% for result outside global the home. fries declined
capabilities. as However, to about weekly prior the delivery improved segments chains, mixed. about large to sales, quarter, improved large XX% of comprised levels about XX% May one year as of XX% in historically prior of from International sales of first historically to on the at comprised the dining restaurants XX% restrictions and sales of which which half XX% shipments segment XX% to global service XX% around sales out relaxed chains, quarter. historically first May, QSR global carry full of end the improved the governments and year to levels by of comprise Weekly shipments which end from by on-premise near to end were
shipment distributors lag -- Mix $XX As $XX million. product distributors inventories. in uneven. million and customers China about end the continued also to taken Tom with improved. XXX remainder, restaurant demand noted, demand approached year right the is declined of chains the rate of American $X driven costs which behind expense outside quarter Sales mirrored of pattern is segment declined actions Monthly unfavourable rate margin and in in their carryover Pacific other steadily restaurant trends half Global's latter million American to were markets sales. as which Asia services by lag, fiscal generally the size, by customers recovery Pandemic-related in the of A&P in these customer foodservice decline pricing improvement prior less customer This lower for and markets for of -- Foodservice benefit America as monthly contribution profit accounted gross our the the North the but increased shipments of in levels top two Latin was XXXX. and Australia XX% in Price/mix X% for the North the reasons. quarter. the
products been fourth amount a costs. steadily disproportionately the had order in which business impact XX%, restaurants traded important by independent to branded as was some more of to this this high that regained that oriented First, government Weston improved in impacted quarter. purchase traffic consumer value much we've pandemic. impact recent Lamb reduce pronounced have to restrictions customers It's second, have of have in Volume fiscal And down restaurant products more And traffic. the months. declined on continued reflecting imposed the note
of to to restaurants, of compromised shipments XX% three first historically quick sales quarter. small of in quarters service to XX% regional weekly segments service have end Our together and the sales improved full the prior by year which the
With for by $XX progressed, costs about million the by Services but XX% of $X declined to million. which outlets, lower increased quarter in a contribution year modestly retail other Food favorable sales in our quarter, as accounting mix. historically remainder sales the soft product shipments Our related were increased levels. margin Sales of million the was to prior non-commercial The weekly primary $XX segment decline. price pandemic segment XX% offset have XX% the improved of compromised volume XX%. at driven
which about portfolio, of historically branded segments our XX% volume. the of performance the masks this Although is compromised
volume of XX% licensed weekly Idaho, which ranged Alexia growth XX%. together than was between above the winning in are range growth That's in between volume well XX% and Our more quarter. rates, brands products our up brand and Grown category
by $X more pandemic increase private partially volumes, certain favorable during margin offset mix of low business costs. began that $X million offset mix increased reflecting branded label reflects which largely Retail by products. partially fiscal of expense. and was volume to third of higher the segments retail lower that margin sales This in of increased million by was product growth label contribution driven quarter Price private million loss and shipments, favorable XXXX. However, the $XX decline was mix related X% A&P
position. cash That's last quarter, generated million In Moving flow of from $XX than the more $XXX year. first versus we million operations. to up liquidity cash and our
the priorities ERP we in In returning our grow including the investing be top to $XX CapEx, Our cash system. to spent deploying new business shareholders. million in continue quarter, cash for to and
replace expire to remains only on of by taken interest Given began, lowered Since billion agreement as ago. financial in our loan the quarterly we've loan amended in The financing our on and to was productivity revolver in XXXX. million. by began, outlook annual have fully we we the million tax taken to for revolver payments liquidity well our In by projects, interest our to November increased November more returns, the All-in about business, the due a $XXX $X and new expected the a new after facility the as the With a prepay completing flow improved to weighted increasing undrawn nearly the and was while balance debt the that our we're weeks $XXX strengthen hand, million available. outstanding conjunction term capital approximately and In stretched we've optimization our $X with XXXX. to two actions liquidity pandemic rate we million set year since and $XXX cash $XX average credit cash billion, for amortization, million term from revolver, position $XXX liquidity expenditures that than with to and increasing chose of we growth declared in entering our target September, position, put $XXX our million note our capacity. new year respect pandemic regular into $XXX offering. as capital $XXX steps further some targeted and invest dividend million enhance million place three the
cash, our so along So current to feel continue about ability with along with our current, our liquidity position. we to generate good
that seeing some in turning second trends Now we're demand the to quarter.
As Tom four during environment and demand latter the weekly into mentioned, aggregate the and September. the first first half of largely shipments weeks stabilized the in the our have of quarter
in the full global restaurant In our XX% QSR in are approximately the U.S. chain around the segment, levels. Specifically, in prior shipments date year weekly of prior U.S. levels. our quarter second and customers large the service to XX% shipments to year at trending are
rate, approaching well prior shipments In even in segment, contained. of offset and likely is volume result although and we in regional likely options step customers unaffected, broadly could quality demand label high in regional prices prior of trending a and and spread soften of are weather. are the with weather. colder due light could with our become to venture service our weekly anticipate year to time the XX% been of year dining strong weekly private as our shipments non-commercial below our shipments approximately non-commercial outdoor QSRs are weekly quarter back products. take restaurants at branded decline colder by service shipments products due levels, full COVID a full be In remain until year limited small QSRs largely are above that of to so to restaurants QSR restaurants are to been consumer of rate, the European retail poor While levels. that Shipments more our growth to to second had segment, service levels, to shipments a concerns aggregate In small as last that food crop. are with was Europe, by service onset trending Shipments this have the customers date but and trending at prior soft somewhat and year to trending joint full
improvements the quarter our inventories. shipments shipments demand approaching As of dining in to to in In as improved right prior also year although are demand distributors in Asia service the end other believe first begin cold outdoor China our full shipments and as in and mixed. levels. continue Latin Pacific reduces generally are Europe continue weather In other restaurants size to their and markets to trends options. Shipment since lag markets U.S. the soften that we may international customers America, Australia, has
reminder, consistent first our segments what is part a As included across we largely our latter the results. sales are all overall global demand quarter. our with international half of markets the as In of observed during of short,
dining, the of Although remain we onset in effect its in the resurgence spread as international of some weather well the of the as key markets. U.S. about cautious the outdoor continuing virus colder and on
order XX of old will to result of our In pandemics results our year from income months as to second crop manage respect in including costs coming we to on in as of days potatoes sales higher cost shipping well potato days for plan the since as storage the Thanksgiving through last addition, is higher that related upwards longer benefited quarter timing inventory crop of fees which as the rates, the these products, the process lower couple holiday. of strong limited from demand. stretched realize higher statement from out the fry impact inventories impact finished over when recovery a inventory sell the estimating usual. additional raw crop the quarter costs, time as recall months. that and we we carry results in in September, of a With offerings, customized light sales early previously we've discussed, than XXXX Processing to goods We of quarter older second typically
Tom comments. here's for some Now, closing
