Deverl. Thanks,
meaningful in progress direct driven marked margins ship by channels. our improvements, quarter another product margins both by second period Fiscal gross Our expansion highlighted higher of DSD significantly and and
variant local traffic, constricted to have in channels to track during trends as While recovery quarter, uptick presented been on policy fiscal that ability the the the changes been. of the had omicron of labor, some and across many past year they due first earlier and our operate recent to challenges continue customers’
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delivery of higher impact second the and to price implemented quarter, costs. During mitigate another surcharges the supply increase, fiscal across including we DSD chain network our product
more However, these be January and fully thereafter. will in changes realized
to protect delivery or conditions or customers needs improve future We if will any margin reduce those remain for our proactive areas. regarding in fuel surcharges any
Turning direct down to the and direct ship with XX.X% channel, period. year to ship sales prior we compared pounds quarter the the X.X% ended down
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coffee for period prior by increased $XX saw offset other to higher the of transportation higher by routes. period. million the $XXX.X the sold recovery in volume processed second freight, from year-over-year higher sales fiscal by or in second prices we by quarter had to Overall, compared volumes XX.X% addition and to year-over-year This year the quarter sold, that to also impact in increase XX.X% prior are due pandemic or due Gross partially volumes. brewing those improved and higher continued net the that green $X.X to on goods basis. fiscal to Additionally, on on sales million million DSD period. million the year network, culinary, net as a $XX.X spice, sales coffee and prices products pounds coffee of inflated sales DSD and was in beverages, since year-ago more in compared of million Primarily equipment our the primarily $XXX.X $XX.X the million where from to increased profit higher driven as sold cost and costs, tea well we
XX, highest prior margin representing COVID the was XXXX gross quarterly XX.X% our reported in well virus. compared Our the quarter gross any margins was since second fiscal quarter, XX.X% before December of during to year period, the the impact which
goods uncertainties see our the noted challenges began January, higher that We cost trends monitor pressure Still, horizon inventory seeing slowing into that despite will we and via particularly pleased not our the margin. of to closely work price costs. optimize sales margins channel, we're through of hard flowed have our on our the expand the implemented subsequent yet previously December done increase within gross will and product towards end sold the we've the given fully to benefit all business. the DSD sales The and
Additionally, X/X ship national our channels. green flow-through within bean direct our of coffee pounds our accounts
While XX-XX costs business still day we pass to lag us customers. contractual from this does inflationary those through of the there's a plus cost fully protect nature our fully before can increases
recent which see business. challenges we're impact primary both the in for closures, is an customers performance. labor, and our facing As in complexity calendar and around our the and we restaurant enter the a to we're beginning of temporary uptick add weakness driver DSD ourselves, Similarly, partial new year,
Finally, products running weeks. our in supply fill resulting recent decreased chain out challenges stock in specific of rates have
demand and these struggle challenges measures on supply get our to margins. the instances, in financial of resolved, we sales meaningful to everything to Until hands most we can as products. direction outpace are As impacted will on we're key continues such more doing continue to provide these
included to Our loss period million million as in prior-year million an improved the loss from of loss period. We quarters. related year EBITDA fiscal adjusted the higher of the in second in a quarter. mentioned million to plan net to prior medical million post-retirement $X.X $X.X from benefit the the gains of compared posted a amortized $X.X year-over-year $XX.X note, last Of curtailment year, $X.X prior
expenses. to of impact, fiscal the margin large adjusted gross year-over-year, in part this EBITDA in Excluding prior-year period. in million by the offset by X.X% partially improved operating XXXX, in margin quadrupled was by a compared EBITDA quarter was Adjusted recovery driven $X.X that or higher second X.X%
second administrative sale compared mainly our from which period, reduction the of $X.X increase prior by million due million in quarter, gains partially fiscal severance expense and period. year was were the During net of both expenses decrease $X.X a by million fixed impairment and general the which expenses. The decrease due the absence a selling in in of a operating $X.X $X.X in primarily $XXX,XXX administrative general set a increased lower the in debt to and offset to a year and million one-time costs expenses was branch, to prior of
to remains Of structure While rates XX.X%, sales the more XX.X% percent increases due the distribution efficiency increase prior variable were of sales period to for in Increasing a focus Rialto, year. last compared efficient a in at our than well was the of cost with as sales California. associated operating costs, including selling the company. we year associated the drive as operating expenses note, higher our expenses expenses center payroll as new as with in primarily volumes,
remain decades specifically, inventory remains accounted the is As and seen chain highest delayed, ocean the supply and increased of supply our goods and headwinds. to more Again, inbound increasing upfront. line prices need Coffee in labor and cost we've item. which challenges among and inflationary green mentioned, for cost freight, be impacting coffee, significantly present our the of stressed
customers. our And finished So we our more time. along balances costs these we inventory passing carry costs in of these in to ship some to do over direct experience delays start goods
through still or ability hedged higher surcharge positions position time. any updates and with market, feel reduced our to we to in to needed in hedge prices due good coffee over execute we our fiscal our year, been price on While due protection this see has the we're the
efforts to continued We invest optimization in our efficiencies quarters. future to in ensure operational continue
DSD to fiscal six Our capital strategic million of purchase higher capital of completed period. projects. $X.X for to fiscal expenditures to a the capital $X.X December brewing key spend prior for savings, The as $X.X for due were as million by initiatives have investment helped to DFW including IT offset decline to drive months compared million, compared lower maintenance purchases higher several equipment maintenance of ended DSD volumes year prior in our XX, with continue XXXX volumes coffee was smaller period. year partially plant This our Several the brewing coffee improved, XXXX, million have during and the along a focus on $X.X equipment to due mainly is reduce XXXX, of capital the refurbished customers cost initiatives sales recover.
Turning balance now and COVID costs, as In it registration and shelf expired, waited a registered to shelf related due to restore good of and securities. corporate hygiene. the we to matter November, a the that used we sheet. We have our to refreshed any
flexible provides currently near-term channel issue plans new shelf the a we any shares to shares, issue with under and no While us the have efficient to agreement.
improved our QX, At debt. Our compared of XXXX down focus end. remains generating June $XX cash XXth, at million well million paying $XX our to as borrowings outstanding on total year fiscal were flow the and end fiscal
slightly Our cash season realized the the primarily position three cash a branch to goods, the $X.X peak to compared funding second as balance at our hedging offset and change was increased purchases cash higher incentive XXth, and during XXst, from payments fiscal by of December quarter-end XXXX, $XX.X for due of quarter, representing our cost gains. of $X.X ended our million of months June sale decrease was million. million in The all first of properties the quarter, which six proceeds during fiscal during were of XXXX,
fiscal second the plan investments made to call $XX.X primarily define cash for equivalents, With at that, compared in back total million we and XXXX, inventory was quarter, over year-end incentive payments. turn now due the operator $XX.X I'll borrowings, our cash questions. of and the fiscal which less debt, net million any end to outstanding Our at as to Operator?
