good everyone. and morning, Tom, Thanks,
in call you many now nine about is as Weston. weeks. the of my role Lamb earnings As been CFO first for know, this I've of
person coming to meet on over you as of pleasure the meeting am into those I haven't industry and you back forward we in of investor line the events. For in met, looking phone. many over get that the the person it's to cadence months I a meetings
we the macro of performance about the in chain. going our well from Tom affecting category As some challenges first quarter from benefit the our pricing and health as discussed, the improve to top-line that recent we we taking as gross actions, margins other will our actions our feel of are and expect good mitigate as forward supply
Specifically, sales increased the up XX% in X%. price $XXX volume XX% to million and mix quarter, with up
quarter recovery driver of outside growth, volume quarter. first fiscal fry this the relatively well of prior to in growth private-label demand As the sales the international Overall, in impacted Lower soft before a in it largely demand. the was low key losses of of as what first during segment result ongoing XXXX sales about of Retail partially shipments expected, our as sales our the primary comparison pandemic was as year was some incremental and the reflecting volume business. home in U.S. quarter of volume offset in the margin markets, the XX% the
to Moving our an of and favorable actions mix business core increase drove pricing, in mix pricing in each segments. price
unrealized higher quarter to million costs. cost The sales benefit As more pricing through profit of in in offset detail I'll cost higher benefit of to for include transportation goods higher our charged customers to prices delivery product an the pound in in the as cost the $XX this higher includes pass freight $X quarter. cost was million $X discuss is and three more Gross the rising a adjustments, than factors. on current profit declined gross gain transportation gain in effort of sold. decrease a actions later, $X offset a decline million by pound, The with prior related manufacturing per in increase in which year in The mark-to-market also per includes compared and to quarter primarily a basis. the million
oils incurred key such which for that containerboard and costs packaging. batter a versus saw were notably, Other as edible coatings for than used quarter. wheat as inflation include most the and inputs, we prior inflation year increased make cost also ingredients, commodity have double-digit labor time. over incurred significant more expense unplanned more we from First, starches and inputs factor to and other doubled plastic Higher film
to increased rates costs struggle. continue freight logistics transportation networks rising to our as due Second, global
the higher Our to inflation extraordinary costs an pound. transportation to of rail of in approximately as deliver quarters mix for products increase also commodity our versus due Together, took customers. our and accounted inputs three cost per rose trucking for to unfavorable cost we steps
factor run-rates production and at incremental lost unplanned was from in the cost costs inefficiencies. in This and days lower driving third increase our production per and resulted pound plants downtimes. The throughput
the is this delivery other timely upstream ongoing vendor including key attributable services. and disruptions, supply materials and of inputs of to supplied Some chain
volatile shortages impact the most availability attributable However, our was labor on run-rates across of network. manufacturing and to
our mitigate costs stabilize and are we price. what to So, First, doing higher chain? supply these
our announced We these recently price segments of are and across implementation are of business increases each our actions track. on executing pricing
rates mitigate are cost We've freight also increases. to better increases quarter, cost of and price our up inflationary with in to the we needed, cost Our progressively pricing it additional If to will cost will as adjustments of we product the actions of to changes customers will rates. inflation. year. increased catches impact them to and build these adjusting second due from have implement We'll the to increases. more through improve frequently the benefit market These that we reflect delivery, see continue some price charge the lagged the rounds further past the also cost begin relationship recover
saw we benefit benefit of quarter. While quarter, a see more expect first beginning the to some the in in second we
In addition, use we are rate spot higher significantly of restricting cost the trucking.
optimizing Second, we are portfolio. our
SKUs simplification underperforming and to management through procurement, eliminating of inventory are terms in production, savings We distribution. drive
We are poor potato raw lower modifications crop our from to also quality. potato partnering some product the as mitigate reduced as of food with without specifications safety of compromising crop, of potato will and well impact year's help utilization quality. impact that These yields from this modify the customers results
increasing we savings productivity program. As are with One our Win Third,
While manufacturing to-date throughput. execute still as logistics, and improve commodity small, is began programs reduction utilization, to been demand procurement, management fairly new, programs the well cost around inventory given we specific realized that initiative as savings planning have and waste, to
personal build other and reduces more control are schedule as unplanned finally, changing provides our these employees, productivity availability programs This which from crews, savings our and and includes steadily volatility. supply schedules labor And predictability we our chain will we how labor expect managing and their stabilizes. time. over over We
make and reviewing tools are other and We each an choice incentives as the is sure compensation of communities. levels This our addition of an signing such local remain employer retention also bonuses. to to in we recruiting
quarter. on in increased cost from This by SG&A three was million Moving sales, increase driven $XX of our factors. the largely
About commercial the $X operations million productivity and are represents that technology, this behind our supply quarter the should reflects ERP-related expenses. making improve long-term. non-recurring chain over First, initiatives we information investments it
items prior compensation in third, prior and Retail an branded expense; compares a behind advertising reflects benefits our low million $X increase the year in support and includes to higher new base we million. activities This when per pandemic. additional launch of and the at onset adjusted the quarter in EBITDA segment. it promotional the earnings was Diluted Second, it million, reduced the of $XXX from ventures joint in $X.XX, first share $XXX the of was A&P down while significantly down $X.XX year from including
volume with to especially Global American our segment Sales chain North the XX% up up X%. total in for due shipments XX% trending restaurant the segments. pre-pandemic were are levels our strength in to up above Overall, and Moving quarter at QSRs. our mix price segment's business,
charged congestion higher worldwide mix. benefit Global’s higher in gross quarter variant. transportation approached well reflected manufacturing West due of mix. exports, disrupt cost favorable to international to Our of at shipping more as price escalators and Input is pound, declined and profit higher the spread Asia product volume to per price increase Ports benefit customer margin, for prices offset the our price shipments the favorable Delta softening million. less as XX% shortage freight, and expenses inflation-driven advertising as and levels $XX as container contribution promotional despite cost inflation, sales well Coast also which the pre-pandemic than X% continuing demand in The and the mix of the in
Sales increased increase small volumes XX% in with year-over-year volume Foodservice up independently X%. shipments the price Moving and The to largely strong chains sales restaurant recovery and to owned and XX% up regional our segment. restaurants. in reflected mix
across labor However, U.S. end-customers plants, shipments inability by to was demand Volume availability. to to our August along growth full to with Delta of lower to also variant in throughput the due run-rates customer the August service traffic production the tempered and due due largely slowed restaurant surge at the in these
price of mix largely cost of Our to of benefit fourth margin and the to levels more than offset price were contribution charged well favorable non-commercial reflected the actions, improved quarter entertainment during XXXX. non-commercial manufacturing mix sequentially $XX Foodservice’s product XX% to and fiscal strengthen. pricing prices for Higher up million. continued pound. about higher including the channels to from volumes as cost higher through Overall, the education, freight. in input The XX% inflation, shipments lodging rose increase quarter to XX% shipments XX% customers per as sales transportation as and pre-pandemic
Sales prices from benefited support by a incremental higher XX% product million. mix levels. quarter price, manufacturing were charged pound, products remain increase decline of declined pre-pandemic Retail was year consumption in-home volume in segment. transportation favorable in of Moving largely branded XX% XX% well margin very The demand above down and prior launch E&P declined including up low freight. from increase The new of for business. from cost down decline. driven $XX that of with to due Input volume strong shipments price resulting mix volumes inflation, the products lower per drove pandemic, Retail’s higher to margin expenses Sales slightly lower and sales contribution but reflects our X%. million products the cost and price largely that losses private-label certain to sales a $X the high
earnings. about million million $XX spent due We In our cash generated to That's and dividends. the expenditures lower operations. paid liquidity versus move from we first to in position. million in year down and than Let's more capital $XXX flow quarter, $XX quarter, $XX primarily prior cash of the million nearly
million bought worth typically also double prior what repurchased have about stock $XX We nearly or of quarters. back in we
hand. from revolver million During undrawn its extended billion the had its increase XXXX. our and the quarter, maturity of on At to our quarter, date the $XXX to we cash end $XXX was to revolver million we first of nearly August and amended capacity $X
X.X about $X.XX including was net ratio debt total our Our joint times. billion debt-to-EBITDA ventures was and
turn let's Now to outlook. updated our
continue during we second relatively driven the be target of sales growth second lap to higher our volume the continue comparison will a to low to the quarter, We mid-single-digits. pandemic. fiscal be of anticipate growth quarter XXXX largely in long-term sales soft by as due XXXX fiscal our expect to to shipments to we In above
versus QX all We that in remain mix in segments be execution as expect on our will up of the track. price sequentially the X% we actions delivered of pricing
volume pricing our balance prior and half softer we of sales of build. the For to benefit to comparisons of some growth a the a year higher to from reflect earlier mix actions and year, lap expect the volume from the second as as of we continue price continue more our improved begin will
inflation Our be as this significantly pre-pandemic to It however growing due of logistics from Outside we of may tempered yields and the domestic previous shortages of With and approaching of regions. EBITDA such earnings to poor be volume gradually crop. transportation to of quality affects crops continue expectation the from and gradually container poor costs XXXX. crops costs approached and in also assumed potato macro challenges, previously year. continue labor tempered lower by pressured for oils, potatoes, industry the the we levels year. Driving that that respect earnings, a would a averages. most growth by the the raw shipments. through global of and as half historical these key in net expect resulting through production factory change expect disruptions during will ease both may We is expectation adjusted income assumed second joint previously our inputs We change second export half production begin to potato well ventures our double-digit as edible of fiscal and higher to quality including be our had fiscal XXXX. That's packaging
in our with that we actions our and production improve will and said, operations, run-rates expect challenges progresses. also One the cost manage supply initiatives expect continue along through and have stabilize As us productivity XXXX. as the that Win We described gradually transportation help macro continue labor the the chain slowed throughput I turnaround fiscal That earlier, to to year
points may margin margin to be rate at XX%. XX% our gross year, For we to our least eight annual of the normalized full below expect five
and a in that quarterly this pressures update will in our will results equity of of other gross our cost in pressured input both we the costs, operations couple a as an SG&A long-term, remain prior U.S. be the We've expense wide degree uncertainty continue quarter high recognize of will updated Below early range, with regarding it second and we the when January. volatility provide years to I've over understanding expect cost is crop’s a we our due months we inflation and margin, our the to earnings year. discussed. our better next reflects have the couple of impact we the investments Consistent release while high manufacturing the financial While improve the and for targets XXs also in higher Europe likely we will
reduced spring shift our our and to capital in million million on significant XX%. And we've track XXXX into in expenditures, fall effectively China and effective estimate estimate First, previous million. our XXXX. $XXX reduction expansion to XX%, large from approximately and remain capital between our to estimate of behind reducing to the timing - of projects This expenditure spend the is due open the to from of early the XXXX Despite XX% fiscal our our spend estimated full projects $XXX shifts of $XXX rate in respectively. second, we're year and down Idaho tax previous
estimates million and around $XXX expense approximately total million remain unchanged. and Our of depreciation amortization expense interest $XXX of for total
first but our recovery higher top-line helped strong manufacturing the in summary, to in fuel earnings. costs lower So led quarter, in and distribution growth demand the
quarter our macro the steps taking our from the the actions earnings behind will remainder of improve earnings we to of our continue be crop mid-single-digits, above the higher to begin due inflationary pricing potato but pressured net we both to and be poor costs. year Nonetheless, for persistent and target expect growth XXXX, fiscal we that will see For second improve a to long-term our in cost expect are and sales to challenges.
comments. for Now, some here is Tom closing
