and Bill, good everyone. you, morning, Thank
QX usual, performance analysis. will discussion 'XX of results enterprise our focus mainly As comparable our business segmented accompanied on my by fiscal
Let's enterprise get started with our results.
income X%, and in net business, basis. quarter, were increased sales by a enterprise sales comparable XXX% XX% grew reported strong on basis increases our on while The were enterprise affecting enterprise driven income of more the from for detail by which Beer Wine enterprise comparable net The operating results decreased the operating a will For which billion. in decline operating income ongoing business loss the headwinds both goodwill Wine reported address of and shortly. $X.XX our partially I Spirits of and enterprise in reflects impairment performance noncash business. category Spirits offset and a
at raise between grow enterprise at X% month, to X% year to operating level, outlook double-digit 'XX, to ability our noted recent At grow As with as enterprise X% enterprise comparable year. our we decision full we net deliver guidance sales X% expectations updated to fiscal the of for and to now for comparable range our our to $XX.XX in the our initial an in comparable demonstrated confident income EPS to for lower guidance remain set expect now our by that full growth during EPS update $XX.XX. end against last
results. pricing the Now representing of million. net by I'll increase. overall and Beer favorable business $XXX.X X%, net fiscal driven which volume an start, to shipment sales more $XX.X review Beer 'XX grew our of million To turn of sales QX a growth by X.X% our added to This net Beer detailed uplift was
this 'XX. muted well taking net fiscal second full pricing account of both the as year, for of reflecting we X% expect half in as the actions pricing price half sales driven last of to continue fiscal to outsized lapping year, targeted which the by pricing was our to year, For the X% first from we growth, from are
growth. Beer depletions of grew consecutive X.X%, our quarter XXth marking
of second to depletions selling between we top impacted July day variance the in gaining sales, in quarter a or as for high-end to challenging are beer the we particular, said, gaining volume the total impact points share in have once share and and on of points beer. pleased a quarter, growth on second dollar once day X.X again beer rates gained. That the rising sales recent quarter, in of the Beer have category supplier impacted X.X share unemployment depending the lost reminder, business noted, and and has the had as holiday less had by and growing dollar macroeconomic been Fourth the X.X% points, of more have backdrop where sector historically performance behavior. As to X.X Bill outperformed selling Circana the of were in week percentage to X.X consumer Also, our X day, our
for the the up dollar #X and in depletions remains position spot Modelo U.S., on-premise the Our Especial to its approximately the on-premise, X% total while continues volumes. hold Corona our draft by XX% year. accounted from on fiscal Extra #X beer in packaged of grew last #X beer sales
growth beer levels as the proactively completion outpaced quarter, summer shipment second supply growth distributors inventory to the higher-volume For season. managed
shipment and closely line aligned quarterly volumes for absolute share expect the be the those of of For we depletion to full full other fiscal and both those year, year fiscal of metrics with in 'XX. each be across volumes with to
the We of channels take for we earlier. these while month. X% environment. consumers As outlook business, noted net Beer we and remain the for balance announced in a have very cautious, our they seen value-oriented this nature. our And in the they look reflecting are to are fiscal our to to seek packs grow year to manage are spend affecting expected ahead reiterate loyal incremental brands moment headwinds sales between last 'XX, transitory this to like macroeconomic as the their X% the also as headwinds I'd updated consumer year Beer to more to believe fiscal now
to are growth. we control toward to savings can us incremental on line our and and our our initiatives top levers marketing continue overall to cost We the accelerate drive We investments advance allow remain business in confident that managing that Beer focused growth focused we our profile, forward while distribution outperform Hispanic which push innovation the and industry incremental again and our points in sector tailwinds our the agenda continues disciplined from pursue consumers. further building U.S. on to and of loyal as demographic broader with efficiency
of these efficiency benefit initiatives, partially XX.X%. from to offsetting and in over by Beer currency. had the of X%, point but the an now increase is XX% strong savings XXX operating our result grew operating excluding margins. $XX our The inclusive segment and ongoing the income foreign and an million impact to increase a largely turn cost income in savings and Beer The in I'll income performance of volume beer of operating operating margin basis COGS
peso Mexican a approximately are approximately our total and As the for XX% that against COGS the year. to reminder, exposure fiscal of XX% are we exposed hedged
will important is normal For said, absorption we from of will the write-off VAT the 'XX, relative lesser volume some anticipate lap volumes. last offset recall of to it fixed cost will period seasonally cost year-over-year to fixed sequential sales lower COGS lower remainder QX, which due to fiscal favorability we impact same to incremental That seasonality. in not net absorption the due from but provide year, that the
net as the expense percentage quarter. sales a Marketing was of for X.X%
For we brands our X.X% continue approximately college season, with particularly support still line up be and in expectation core our and investments 'XX, football to in during to fiscal of are on full track to NFL QX. ramp as the year we
approximately of was our X.X% largely our full anticipate line expense of And this X% second and due volumes cost SG&A SG&A yielding ratio expect sales. year continue year, with Other a increase half is lower in in net to expense be we absorption. as net to to less percentage sales. we This of the expectation to the
continue fiscal we be to to operating margins, XX% for Overall, 'XX. approximately expect for at Beer
we drive sequentially investments incremental operating in lower just second noted, absorption cost to margins half. As marketing fixed lower the expect and
and the demand business. our The in U.S. weaker in performance due the on fiscal remain second on to we declined Net sales improvement was quarter, the ongoing category, largely in to retailer and ongoing consumer sales the the by Accordingly, decline destocking. the of actions year both the decrease Moving in and this driven in wine the net at a inventory Wine brands. of marketplace beginning tactical Spirits marketing X.X% shipments. to drive wholesale largest segment help particularly shared pricing largely for challenges by XX% driven focused
some just results from releases to higher-end we a incremental and brands our back our early Wine the half seeing to reminder, of initiatives incremental actions. over the as holiday related vintage are as seasonality the as and period to encouraging Spirits year business from for the these we benefits well due historical see noted, fiscal as season, volume from Bill And referenced. As higher continue the demand
approximately relatively Operating margin volumes, Altogether, stable performance contractual $XX a margin. in unfavorable income for primarily Wine XX.X% higher lower of decline flat resulting income operating and mix overall with partially operating distributor relatively in decline business remained offset an Spirits by product were million, shipment payments. the by impacted and and
as line. net of is XX.X%, help a medium-term expense we percent Our near-term sales a which line targets, SG&A net in outlook. our as brands to marketing support in above of as our our largest X.X%, slightly to continue make medium-term coming top And investments was was with percentage our sales
forward business, of incremental seasonally and Looking the higher-end for volumes to from to year our margins previously support in business. the the driven to to execution remainder brands, benefit initiatives and benefits Wine those in cost savings core Beer for the Spirits we expect noted commercial increase from our being previously due executed the operating also benefits and further for mix similar our actions efficiency brands, demand referenced volume to operational
income to due deleverage in guidance. operating to operating fiscal top our XX% for ongoing anticipate year face decline we full XX% larger revised a 'XX headwinds, line As we recently
the expense the driven million a $XX second real benefit reflecting one-off was rest back quarter full $X of continue fiscal a mainly the And $XXX increase In capabilities and expect to and for compensation we investments. of due we the million. benefits marginal 'XX, half by or year-over-year decrease in the million, tax off Corporate XX%, quarter. approximately a expect the Capping increase in P&L. the for of estate year, digital to
X% due for decrease average to from Interest breweries. our $XXX and an the increase in quarter expense our capitalized borrowings million, lower investments from the interest year was in a prior
related year interest our expense to favorability and in previously as the we expected approximately of noted see capitalized lower borrowing million be fiscal is $XXX adjustments cost now guidance, from interest. to for As updated
year. expect effective XX.X% comparable be compared was rate we continue quarter XX.X%. for to XX.X%, the rate full to last corresponding tax And tax Our to our year
net And activities cash finally, free expenditures. less by cash flow, which as we define operating provided capital
the half we prior of For free increase $X.X from period. a 'XX, cash fiscal the first of generated XX% flow billion,
to our provided billion flow cash medium-term free fiscal Beer our of the high expect and outlook between we Day. the billion capital at Investor as watermark we $X.X reached business year expenditures reminder, a in As for be $X.X year
we late we of generation, 'XX. 'XX, initial fiscal uplift free complete the our cash Veracruz flow brewery an 'XX or fiscal phase to Beyond as continue fiscal early by particularly expect new in
and continue monitor to progress in continued and efforts. constantly growth momentum macroeconomic make dynamics, light with ongoing high-return reinvesting brands, these evolving of continue relentless our advancing expansion and conclude, pressures consumers, cost margin and against from of To our headwinds geopolitical such pack brands mitigate to maintain That discipline, from strong to capital efficiency solid architecture to operational as and we consumer, any incremental of opportunities on closely and said, we the priorities. delivering in disciplined for our proactive plan portfolio pursuit and allocation price our possible our of balanced the marketing into take signs to actions we the of savings cost
we've insights continue unfavorable. stakeholders as both to always should we be updates consumers on develop our as And there any to to favorable relevant our material expectations, we provide additional timely done, our will changes or or any
As up, to of as want our to continue I initiatives. support thank execute we for I wrap all your against stated you
take and questions. Bill are that, you. your with happy Thank And to I
