pre-tax a to business, constant Net delivered In grew sales quarter, our in we and return Thank and reduce and on underlying debt We invest everyone. revenue results. while this income net shareholders. grew achieved XX.X%. continuing Gavin, you, XX.X% hello, the second currency tremendous basis, to cash
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about business, grew net taken to from premiumization. sales partially in was X.X% the consolidated than in pricing driven we quarter a The our brand performance. This higher some and in increased geographic benefits and increases strength our Financial second by XXXX due by pricing that, to Americas rollover driven decline X% the increased mix APAC hectoliter volume sales in Net EMEA volume drivers positive talk by before was business. get offset growth volume and favorable Now quarter. the driven of global of X%. by let's per and mix typical
per costs. to X.X%. cost Underlying Turning hectoliter up were
As a pressures continue expected, headwind. to inflationary be
we As COGS bucket into three may areas. recall, you
and and is inflation cost manufacturing The costs, and First bucket cost other is materials was cost savings. other increase depreciation, due mix; and by third XX% or offset second drove is inflation, items; the deleverage. cost partially cost leverage includes to savings inflation which mostly volume higher of
a of which drivers quarter leverage the margin for on positive positive per for basis Volume premiumization. was impact hectoliter. in COGS due included This a of point benefit. the hectoliter increase. And Other accounted per the had is remainder negative mix, meaningfully the brands XXX a it for providing a hectoliter largely as as COGS, is while premiumization well to non-owned impact gross per COGS
general higher expenses Underlying compensation to marketing The operating is as incentive higher well and expense increased our tied variable administrative expense, as by performance, marketing, a X.X%. increase which driven investments. was
net XX.X% units. results XXXX. net sales pricing pricing The than growth at increased revenue In per grew in underlying benefits Now the hectoliter X.X%, as higher look from let's typical included region pre-tax and our sales pricing positive net XX%. income well grew net US the strong across Americas sales Canada business by favorable benefiting mix. quarter as Americas, from and
part third reminder, and begin each and fall, increases, US in to last last We a full year's took spring September. X%. this quarter a the lapped will averaging XXXX, in two the year's in increase As we lap increase approximately spring
was X%. due segment in by a US in increase consumer within Financial premium the volume shipments, to due in a domestic higher to This purchasing driven brand volumes largely quarter. shift the X.X% increased behavior
was American quarter second brewing shipments labor Latin due and to cycling in year. Quebec increased This offset impact contract Canada the by lower partially strike addition, in In the last volumes. the part of
Coors Americas driven flavor. strength Light, increased X.X% volumes up our Growth Above brand by to Banquet led Lite was brand Premium largely growth up X%. in and double-digits. due also were Coors portfolio our in brands with by US Miller all volume core
volume brand XX.X%. Canada, In increased
Canadian While strike was America, region. also growth industry of a in regions. we our largely some our down in driver, was brand softness due sparkling labor Quebec to in X.X%, the major achieved Latin In markets each of that volume
of hectoliter was investments, the compensation innovations increase, was per and incentive the leading X.X%. Americas partially of COGS increased key MG&A volume driver and higher by On logistics underlying leverage costs. the Spiked. up like on Inflation cost lower offset remained but side, particularly for higher the Simply impact benefits marketing
underlying related in to and from EMEA brands to XX.X%. increases per grew Net the and increased increased XX.X%. of revenue XXXX, by positive sales hectoliter APAC. driven sales and pricing largely was UK, Net pre-tax the sales This Turning strength the premiumization XX.X%, in mix. favorable like and by taken Madri continued rollover benefits fueled geographic net mix positive income
Financial X%, with down volume relatively was in line declined volume, which brand X.X%.
to in on But on-premise Eastern market, softness, to the volume UK well of performance by and the as was this the industry our continued impact strong brand the financial pressures higher by consumer on consumer. due due UK brand resilience Looking than more the inflationary the volume Europe in counts strong grew the factor offset Central sales. including as and of
Underlying cost the materials improvement brewing hectoliter of months primarily as $XXX was as logistics income cash year, six increased due due costs MG&A to affected mix the was brands. this and per COGS higher packaging XX.X%. free of the lower of an for net well cash side, was and million, premiumization high was to largely flat. On This $XXX and relatively expenditures. underlying and inflation-related the impact capital first million flow and
timing that six focus for $XX allocation. capital continue Golden This expenditures drive savings. to our to areas our and Brewery capital in to year. on expanding expenditures believe capabilities were efficiencies Turning of the Capital Capital and projects. we down $XXX the and was paid due million the first million was modernization months of
We net reduced XXXX, CADXXX in in debt by our with $XXX upon XX. December cash million debt $X.X July billion. on net debt we quarter maturity XX, since repaid the its And ending of July, million second our
rates. debt our is fixed As a essentially reminder, outstanding at all
balance floating and maintain our end. which had intention paid quarter of a Our dividend. is And dividend we paper a sustainably $X.XX limited outstanding debt rate share exposure and increase of revolving to zero to both facilities, per commercial credit cash quarterly our the at to
longer-term EBITDA lower times. our debt, and reached X.X Given performance net strong to target debt our leverage as quarter end, our ratio of net EBITDA ratio underlying of
Our our capital cash committed priorities to time, net investment-grade rating remain our remain and return maintaining allocation in debt shareholders. business, in as to reduce improving to invest we and
us and financial utilize But our greatly the optionality will return best to anticipated increased determine priorities improved flexibility our our provide does among for we these models shareholders.
first, our rates Now, currency. year-over-year let's growth discuss outlook. cite But please recall that constant we in
XXXX seeing the industry our while the brands consumer. in We US, the around raising are the mindful strength are continued softness guidance the financial to and of we caution continued core remaining beer in our reflect key in
of cash single-digit We billion, previously. minus We $X.X XX% minus low compared underlying income XX% plus now now revenue expect as to growth single-digit to to underlying high as previously. billion X pre-tax or as flow low or expect net compared compared free also XX% growth XX% now And single-digit to growth we sales expect previously. growth, plus
Now me now US, of given guidance some the a down rate only expect driven not top to in the perspective, be let strong line From break by the growth demand but of we to by But the that volume. termination US at XXXX. headwind related begun the continue also expect end of we to agreement ahead large down its contract a brewing wind has to assumptions.
declines our in under quarter. the discussed this we contract first As quarter expect fourth accelerate on call, volume to
quarter. For X% headwind volume the expected X% be America's to of in the is impact context, to of this financial fourth approximately
we freeing this continue capacity up volume of in a from a headwind and margins. perspective, for contract view is of the us believe it while We terms positive enhancing a as to because termination positive,
we before higher inventory first the of for inventories distributor prior had versus levels at As year this the both end distributor US that the quarter year.
inventory However, given following levels the Memorial both distributor demand, Day fourth, declined July and the in US the of strong holidays.
will they expect Day the Labor holiday. further We decline following
summer shoulder the as this holidays held fourth are the rebuilding distributor inventory and first Also, the in Recall quarters anticipate that being typical. inventory usual, we particularly quarters. declines post our through period and during in
our an brewery job is tight, of supply operations have while the meeting demand. currently done So excellent
brands, given a taking of this pricing be for increase this our the fall. expect levels US with industry At X%. to to in our point, As continue annual the we in average line pricing, of strength historical to increase anticipate we general X%
In of in half. moderate expect it impact terms costs, a COGS of the but year, second headwind the to we to the expect for we inflation continue on to be
for While companies commodity number program, of stock expect in impact the pricing. we hedging have will like most a smooth have of swings declined, largely which commodities rates out a we, CPG
APAC Further, experience our relatively inflationary is continue and business high to pressure. EMEA expected to in
In expect to This, increases. leverage margin favorable drive premiumization combined partially brewing expected expansion for gross lower with volume to the addition, contract continued are year. volumes we cost and offset
due up approximately to people half first second expenses XX% Underlying higher well This $XXX as MG&A primarily is be higher to expected be up second $XXX the XXXX. costs of approximately as which related to the half expected versus half period marketing compared the year this to same as in and of spend, as to million is compared the last is year. higher million, approximately
million, the for effective tax X%, million, $XXX plus and minus secondary we XX%. plus to minus and incurred continue to or capital expenditures underlying XX% of guidance As X% amortization rate or of an our range expect depreciation of metrics, in $XXX underlying
income levels rates compared decrease borrowings plus interest plus and higher expense X% the to due million by or guidance million July short-term of of cash This However, X% on minus we anticipated. previously to minus interest lower $XXX debt payoff deposits previously. are the as and than driven million to maturity, interest is or reducing our $XXX net higher higher Canadian $XXX
quarter we our with closing, second are pleased extremely performance. In
the financial not confident to invest the have continue our not beyond. that we sustainably across price in have in year bottom flexibility also us strategy shifts us our all but enables consumer and segments full With positioned strong line foreseen of deliver growth a portfolio could ability seen to second that we our only began behavior has are in brands that in the to we While prudently business, quarter, well. in top XXXX, and
we more initiatives, look October at We look term strategic forward on on to that, Xrd. your answering our longer outlook details Strategy forward Operator? capital questions. and to With allocation our upcoming sharing Day
