Thank you, Howard, and good everyone. morning,
the organic growth second resilience significant year, reflect our X.X% Our again results portfolio. quarter optimizing while growth delivered Despite we category. our the proactively snack in lapping of of prior salty
expanded positioned and strong margin-enhancing executing are we thank would we Utz a team EBITDA I In we well entire addition, like margins programs. XXXX. as for to for their contributions, adjusted the remain our
gross this $XXX.X an net detail, sales basis increased Turning results with declined margin conversions. second to expectations to negative in IO more our includes XX Adjusted our X.X% of and quarter to points in our XX%. points impact And from was basis line XXX approximate million.
adjusted Excluding this last impact, XX points basis about contracted margins year. gross versus our
quarter mentioned reasons. than we margin the decline As for gross was in primarily larger Howard two the expected earlier,
year's Arizona than normal yields the First, the crop plants. in country potato last were Washington Western lower our and supply that part of
new we was this nature these we drove Given potatoes region, transitioned inbound potato Midwest are crop have out support freight but and in costs into to to both from seeing higher, source and the harvest growth in a fully we This are the now decided in plants. more production as cost West sourced. temporary
second transitory Second, deleverage program. our volume associated than during with expected we larger the optimization quarter, experienced network
closure we to originally We our plants plant a quicker the facility reminder, we production in down As April. network. shift in of the anticipated in Birmingham than more announced efficient to our ramped production
As complete. than The now a standard expected is result, higher transition experienced cost. we
network are second optimization sales co-manufacturers production benefit of and combined behind transitory the productivity in margin and the us these expansion of volumes, stepped Importantly, year. from up will in-sourcing drive our gross and with the impacts half efforts,
margins the the month of in context, in and gross quarter, was April our the month improved the margin lowest each across quarter. successive month For
in year-over-year improved our percent continue X.X% year sales. by to Pulling unchanged and declined of the a remain XXX as gross basis points expansion. SD&A expect Adjusted we of million expectations all together, this expense half the and second $XX.X margin to
given is cost our within freight As SD&A a our DSD reminder, vast our resides operations and outbound majority freight, sold. which the expense of goods expense of not
our to market productivity the freight result, in logistics focused strong As improved with combined helped a drive from initiatives, the conditions, quarter. expense on leverage benefits
million a percent to Finally, EPS in with year, per net $XX.X Adjusted interest of last share our X.X% by as due largely of expense. EBITDA XX.X% sales. net both adjusted income million and to line increased adjusted higher were $XX.X of or $X.XX
with additional Moving net for sales. the some to details, P&L starting
organic was by sales of net X.X%. X.X%, Our growth growth the driven in quarter
net sales sales RSP In by routes company-owned conversion independent were which X.X%. total the of growth the addition, net impacted reduced to operators, from
sales Our growth realization mix by net organic offset we X.X% X%, price by lower volume expected. partially of of was led as
to optimize our rationalization In as our SKUs and we manufacturing are addition, unlock initiatives low aggressively improve business. capacity to we mix, focus portfolio on SKU branded ongoing producing margin
a began combined approximately actions, our XXX that estimate XXXX points grew was year's we by last late program basis quarter SKU the with second we the impacted our this in adjust When This the quarter. of for wraparound the led power brands. X.X% proactively in volume year, by and volume from impact proactive our actions mix into quarter first rationalization actions, through new
quarter actions. for of EBITDA second the points, from consecutive margin favorable mix sales, quarter, X.X% sales price of which, benefit mix the In Decomposing our X%, our adjusted increased basis and quarter, of margins Howard positive drivers in improvements mentioned, driven was adjusted XX.X% of productivity EBITDA basis points of change XX expansion. margin volume include X.X% largely as rationalization to second by and expanded benefit XX SKU a the the
impact drivers positive and were and driven infrastructure investments supply selling in these our marketing, X% growth. labor commodity margin continued chain unfavorable of expense due inflation impact to and our selling of offsetting Partially capabilities by to people, and X.X% the administrative support
margin margin second primary enhancing against good performance execution adjusted reflects our Our EBITDA initiatives. quarter
trade architecture actions program to inflation, we pack optimize pricing our our continue countering spend, last and leveraging year enhance improved capabilities. Our are while price
our actions benefit mixed power while service a distribution in Our providing margin up free network higher and are margins, rationalization us business. we to capacity our brand SKU plants aggressive to help
deliver in as productivity approximately on Our of percent are COGS. to a continue and programs expect to X% we XXXX of track, productivity
to management capabilities plan, integrated more productivity. deliver to is demand balanced our helping and business example, levels a are of supply For higher starting which drive
Lastly, optimization in-sourcing manufacturing we while also program are have network progressing where volume our capacity. we
and Kings been Birmingham, announced we have Hanover, Mountain, production shifting manufacturing facilities which North connection severance in impairments. first the Pennsylvania. of we in of the quarter, and an of includes million completed As to Of the our note, million April, we million Carolina with $X.X closure in operation our Alabama. related And second in in costs we recorded $X.X and closure, asset in expense fixed $X.X
to the first sheet. cash with balance turning was Now with in half in the million. flow flow, normal and year operations cash $X.X flow seasonality, Beginning cash consistent used of
quarter have improvement functional made our our our to we cash second as reflects across efforts conversion operations. cycle The cross foundational improvements improve
priority XXXX, programs up Capital were and stepped and of in the the supporting manufacturing expect progress in half which quarter the back to cash flow the our related leverage we company. fiscal our $XX.X the our expansion remains expenditures in on first continue net for Kings productivity fiscal year drive reduction in second million Mountain. a free half as We major of conversion, stronger primarily to
end at the EBITDA Finishing adjusted million million. of with debt $XXX.X sheet, trailing $XXX.X months balance quarter normalized or was X.Xx net XX
stated would cash heavier our in leverage progress our half on earlier, the the use we I reduction of net and As a is first fiscal back year. expect half of
our sales outlook growth full and for increased outlook outlook. to our we Today, turning EBITDA adjusted reaffirmed fiscal growth year net XXXX. our Now
outlook performance As look ahead organic our the X% X%. to and sales total our is first of sales net the we and X% remainder of to X% to half unchanged net consider of growth growth for year,
with largest our Our to year, expected volume to be X%. assuming with independent growth from net approximately is impact contributor And shift rationalization is mix a to to consistent by growth last X% expected sales to SKU our actions. growth, operators the price impact total
rates, the a we favorability than by quarter. the the expect to impact less From gross transitory SD&A deliver sourcing second offset profitability to perspective, in expansion recorded were given in freight XXXX, is in potato Higher previous in continue although outbound margin expectations our expense. which costs
P&L is unchanged. inflation, our shifts geography cost of outlook total input for While this inflation gross single digits high
given expect adjusted expansion and in to together, adjusted this costs, productivity but SD&A all And year, come to it our to than SD&A now the expected outlook stronger we from it we EBITDA from better XX% leverage Pulling delivery majority X% are of our raising continue XX%. EBITDA X% expense growth leverage. margin benefits will expense to
approximately Moving to capital investments XX we expense support XX% expansion. continue year million down XXXX XX XX% effective our and interest the to to to to approximately adjusted full of manufacturing expect between P&L, million rate primarily XX capacity and tax be million of
working generation Finally, stronger profits, from and we expect higher the free cash year our flow in second initiatives. half of seasonality, the capital normal
we Our consistent, adjusted end capital reduce to and year half the a by X.Xx leverage remain turn XXXX EBITDA. normalized priorities and expect in below fiscal
expansion our our XXXX, delivering while in we and are closing, momentum, of operating invest in cost structure, with year confident top continued performance another In optimization of strong in line in margins we capabilities.
call And for open operator, the to like would questions. now, we
