and Lamb by Weston want the year. the for morning, good thanking I Tom, team entire strong the start everyone. Thanks, to off to start
we're of to that We Our strong allowed quarter environment, macro it's the itself, performance in our a has for recognize first challenging entire financial targets. raise us speaks testament team. passion and fiscal Lamb operating dedication performance the a to but our and Weston XXXX
incremental billion. most million the start EMEA Let's XX% Compared our acquisitions sales with was about business. reviewing or $XXX increase year, from results. $X.X from our XX% or to to of increased the $XXX coming with million prior with quarter About first the sales attributable
consolidation to Argentina and quarter, the second continue the EMEA in the operations this the incremental the receive of but quarters. acquisition we'll benefit third lapped from We
to beginning fiscal XXXX, baseline. As a included consolidate last our we those the year's in reminder, began since quarter fourth of results in sales are EMEA sales
International both pricing to incremental input counter actions cost taken inflation. the as the grew in XX%. from acquisitions, XX% and Price/mix up benefited from in sales Excluding manufacturing fiscal and our sales America North XXXX segments net was we our
was to favorable manage as product Mix we our portfolio. also strategically customer and continue
couple by month percentage as began lower-than-expected pricing in progresses. and in a In spending This estimate could fiscal timing quarter largely implementing as the be we the from of with last of addition, be XXXX. we result, a that year actions the associated related, slight the points benefited may price/mix trade a headwind
transportation trade freight offset to spend come prior customers The mostly the have on from headwind the X-point costs to benefit charges year however, was a related in quarter, period. by as lower down roughly passed
margin our is with goal declined is overall reminder, due our their to time. costs line customers so charge our transportation to with was expectations, over decisions volumes a The our As decline In effect that match to X%. sales our profits neutral freight primarily to on certain and international priced growth and exit to X in volume destocking customers our channels management related markets volume. select to a and inventory also revenue contracts our of part of U.S. impacted in continued as retail primarily by lesser initiatives lower lower extent,
have volume inflation-based been destocking of behind to results amount on low. forward. We and actions if effect elasticities should response pricing largely volume is impact, little believe our any, or note generally to actions the these in important have us that the lost of going It's
we and improve as We volume business. volume the with higher-margin the volume year we backfill trends year-over-year to expect exited progresses lap as our
cumulative earnings pricing the increased Moving million of $XXX increased the comparability more of increase productivity Nearly the manufacturing higher increase EMEA and on sales. of per by input Weston and points profit supply timing of impact margin the XX.X%. consolidating driven and from to the Gross the than which cost the lower X/X spending, $XXX items, to Including pound trade gross to was legacy X/X our basis incremental dilutive benefit the acquisition, of of from in attributable our XXX quarter, Lamb comparability items, mix actions, EMEA. million. chain excluding offset remaining roughly volumes.
The improvement percentage, excluding impact in business, was
XX%. lowest While of estimate our margins quarter, we been increase, approaching acquisitions, trade spending would earlier the gross which first margin, quarter mentioned have quarter basis accounted our XXX approximately timing of including points normalized historically that the for I put that first margin
labor, to single Higher open price increase supply due costs. the potatoes continue chain digits a were increase basis. a for potatoes by to costs mid- the and in increases in market The the of lower America. continued pound cost to Input offset for in XX% on savings, crop ingredients increases for high largely and batter partially for by poor prices driven energy XXXX North lower yields per productivity edible from freight contracted was increase and cost The coatings. oils
extent, largely million related from expenses. and IT promotion SG&A incremental SG&A, the a higher to remainder increase to higher the infrastructure items, consolidation The higher and EMEA. than advertising our $XX driven was ERP of increased excluding benefit and to of lesser compensation by $XXX half and More comparability with expenses expenses improving was million. and
and of in profit EBITDA business attributable with led to increasing gross the from adjusted growth, remainder sales XX% earnings consolidating of base to this EMEA. the drove the All to incremental most million. $XXX Higher
we trade Moving sales quarter. includes with primary U.S., new benefit that the XX%, timing North by Price/mix fiscal up and sales spending in in of partially initiatives. effect Mexico, X channels reporting international. segments, our XXXX were the carryover Lower operated and the pricing our across of was from to our favorable XX% is our took North our the revenue in which mix which management in freight increase. segments. customers first in that and the driven offset benefit segment, all of the This Canada we as revenue up actions quarter was each Beginning America sales America growth to channels,
the To X%. second to in primarily don't XXXX. the lower-margin X and contracts largely primarily channels retail Volume destocking began further third and quarters volumes. and also This of declined the anticipate in volume certain extent, customers quarter. retail impact reflects destocking decisions pressured first We sales fiscal to our lesser to after North inventory effects lower-priced a related by from America that our exit
million more impact lower spending and North to than offset of America volumes. $XXX pricing increased carryover and trade pound mix higher $XXX of favorable timing segment benefit the cost adjusted million as actions, EBITDA the the of per
all segment, million EMEA sales grew from International XXX% incremental to customers or $XXX in our of million sales America. acquisitions. Argentina outside the channels of and to and $XXX Sales which Moving North includes included
declined net acquisitions, sales these Excluding X%.
favorable taken mix, as While as XX%, the up lower freight volume fiscal the price/mix revenue of in actions XXXX by well increase. was and pricing offset carryover driven benefit
exit very XX%. acquisitions, As largely sales that XXXX. volumes low price, fiscal margin reflects excluding low our international impact to decisions accounts primarily began decrease fourth expected, our our volume, of The declined quarter to X in
continued destocking extent, is also impacted largely we earlier, But destocking the effect mentioned inventory the lesser believe volumes I a quarter. To as of in over.
as well million volume, in pound of segment's adjusted our business. than and earnings EMEA's Lamb increased a EBITDA the offsetting Incremental per favorable International of cost lower segment impact results drove as Despite from million. volumes decline our consolidation the more XX% $XX $XX in Weston increase, price/mix financial the of legacy most to higher
cash to our liquidity and Moving flow. position
continue to quarter a and cash We with balance billion maintain $XXX no than revolver. liquidity leverage under $X and a ratio. of solid low with We borrowings our more ended U.S. million the ample sheet
expenditures Our to We processing which Netherlands. $X.X generated as from net the year operations million Capital was million capacity primarily about about which million $XXX the leverage Idaho, or million, than is expand were X.Xx. about earnings. in due we billion, to at continue higher quarter, China, $XXX ratio year our due to more about from debt and up quarter, $XXX costs, Argentina puts The construction largely prior the about cash prior $XXX of
shares. open quarter, was window. more return based our cash shareholders, returned as million than including to stock from dividends. all repurchasing million more we of cash opportunistically double than acted of of on what our of performance That's August during Most our $XXX $XXX we we in in repurchased During price million the the $XX XXXX trading
allocation trading returns buyback share continue compensation for our value. targeted offset based equity dilution, on is we and generated program based our stock's to on annual to other solid be opportunistic needs will While capital potential the
year. our Based financial first updated our raised for to performance, the strong fiscal XXXX targets our quarter outlook. Turning on we
While operating the remain demand current overall and challenging, continue to environment to we solid. pricing expect remains conditions macro
Europe we renew discussions In And aggregate. our contracts will with and addition, pre-pandemic with historical America to crops in averages. as how potato in believe generally Tom be pleased growing the we're mentioned, remaining are consistent in the progressing regions North
excluding target to to continue sales which for the during This growth, our of to net to to target gains Specifically, X.X% $X up the EMEA we includes up $X.X $X.X is quarters incremental from year, billion billion sales of annual increased the a estimate. to sales $X.X year our of have and sales our billion previous previous strong first $X.X $XXX is which billion. attributable net X expect This net $X.X acquisitions. from billion to X.X% represents billion, million
targeting low second quarter we're up began lap slow the our as from expect to last we the first means that be the For in quarter which of sequentially year. that the will price increase price/mix XX% actions we in of implementing some year, price/mix double to begin digits, we we that delivered
with potato gradually to While continues be timing half second low will due we we're last as profit down full with business. the some the the to volume as we product category year. chose solid business prior lower-margin that volume and we the year contract progresses year, year to the more year-over-year improve And mid-single profitable to exit volume, low significant as our backfill openers, acquisitions, overall targeting continue the the margin, digits compared we to excluding exited of expect be lap of in of trends
raised midpoint updated we of million $XX this XX% up Using billion about $X.XXX growth $XXX $X.XX million implies versus target of earnings, from range year. estimate the EBITDA billion. the to by or $X.XX adjusted For about billion of $X.XX billion, previous to prior our about our to
left at We our $XXX for to million million. target SG&A unchanged $XXX
to run the first we anticipate a target, continue quarter will our as rate build While year lower suggests progresses. spending
associated target million offset expect to capitalized reduced expansion. by we $XX as with interest partially interest our We our with million more capacity expense interest cash to $XXX
million. depreciation of $XXX expense approximately financial and $XXX capital $XXX expenditures targets same, amortization the of million and to including other remain million Our
inflation-based input In top Volume product chain. and pricing in and line inflation volume and bottom deliver summary, cost generally expect executing we savings actions supply our we're as strategies year trends and progresses. been to have our offsetting through our to actions elasticities productivity driving improving mix by strong customer response improve growth and to portfolio the low, pricing across
category, of we remain raise sales we full targets. the start the consumer, the about the inflation cautious gives the effect us which feel While year to our the earnings about the and and good confidence of on year of health
now comments. for it And closing to back that, with me let over some Tom turn
