morning thank Good us. for and joining you
Joining today is Officer. our Rob Financial me Chief McKeracher,
winning add selected beginning improvements. levels are the continue against pillars our refinements of additional all creation productivity intensify This make added to out further executive future and while at meaningful of new and new pieces sustained to opportunities sales business also and which plant efforts, talent of our initiatives from further key quarter, with go-to-market to to pipeline, our build and plan products. four including the portfolio, The implementation to value our exit we bar progress nutrition food safety
who’ll value performance more on quarter of detailed results our provide Rob, I it walk me an the you Then by you through a financial Let in detail. plan. turn the to business more will followed over update third with creation overview
Rather, product our and portfolio are margin revenue not actions reminder, exits category have through X revenue our and still promotional building with apparent allow focus. build which future we term of levels. that the the the divestitures, ensuring of us of improvements in we current operate and transformation, during a in taken near therefore win we’ve the a Recall, quarter pricing most right not particularly have to in categories as pipeline rationalizations, Phase we are near to As is levels foundation had term to our where Nonetheless, are growth the grow. good success, increasingly sales opportunities. we third from we
there sales. for is long of converting opportunities time pipeline course, in relatively a our lead industry the into Of
As the during a result, half we expect enhanced true activities our to from back reflection a and in see XXXX. tangible of results XXXX sales
as We to decisions are making a future. lay the term we difficult the for foundation committed solid short
in that XX be will quarter. EBITDA was of quarter. example we We basis linear this results consistent an for our had not was have EBITDA quarter as said million, the second relatively sequentially. journey with which the disappointing Adjusted $XX.X the is third financial margin points always improved quarter during
of track remain year our margin year. quarter XX prior the on to points compared decrease our margins basis, the level. as reduction a our basis up in SG&A. a pouch gross continued internal the and underperformance generated below a XX.X% some profit term and of However, impact as adjusted on partly sales shows in bars The enhancement to that offset lower apparent targets in accruals, today activities and with for an productivity were of We enhancements our was result productivity volumes. not incentive by short We the full which a gross relative of the period, performance second reduction to
volume, being have sales However, applied near negatively which productivity the are our impacts the of enhancements of in level enhancements term. and of the many volumes implemented realization dollar lower utilization impacted lower against the the
flow see of will future volume opportunities confident through are time. pipeline the we we building, sales With increases as over margin
For in both fruit our to which beverage example, compared frozen are when reduction hold. in the cost are aseptic consumer volume year, the holding productivity lower our the prior and normalized products taking initiatives illustrates segment margins that and despite
traction average our of fixed we go-to-market in our revenues the margin benefits and leverage As above revitalized strategy expect our our incremental creation be gains plan. the cost XXXX, we new realize to corporate on value as
well the third transitioning from last food service year’s we the and on margins, in to we’ve maintained of while of retail quarter. we as business revenue and million the The acceptable positioned In beverage of experienced fruit of side some pricing. decline. including to year fruit the began generated that last the while frozen the pouches an crop reflected in third revenue levels as During $XXX.X rationalizations to decline ingredients the impacts declines compared product maintain X% new healthy aseptic represented $XXX.X pricing quarter, during wind-down as volumes we million lower the business, fruit, field
In quarter field a to The to is that what addition, to we’re volume trends compared a higher XXXX supply platform ultimately in consumption. headwinds price of also to and exceptionally strong on increased. year in an shortage prices in the jump during to declining frozen supply flat availability quarter to part Furthermore, due same third passed fruit shortage to gap impacted consumption last early face as in third we the year in a between when healthy continued consumers fruit rise from and gave contributed fresh. the
category growing. at syndicated dollar basis the down For the quarter, we prices weak. respectively. week when X, October year still were a is on example, X.X% taking for X.X% category XX we are period and periods categories Based ended during down for the – on the year last we data third the the four This and the rate prices raising was
In to We non-dairy fuel cost and supply, April decline highest we innovation customers. healthy and bringing growth impact large operations, fruit we the lower enhancing the resources experienced service ensuring to sales our food volumes by the the on quality due our efficiencies of aimed the invest to significant in manufacturing for improving at all are private lowest continuing healthy contract and customer focused safety, food driven beverage, into remain timing customer. with with expiration year-over-year solution label broadening
our was result utilization which roughly our of a aseptic pressured XX%, facilities As margin. gross
However, will we anticipate our levels. aseptic remain customers we an from supplier to customers our existing current and important volumes with improve
the category. expansion allowing of in billion leverage penetrating we be resources adjacent our and through feature continue sales a particularly current broth to $X opportunities, by us Additionally, towards pipeline base, such into categories as capabilities asset encouraged new growing product to
bar wins and good initial couple and rates of an of for We by the reorder for to normalizing and our continued pouch the increased future from were be drag pipeline on performance snack up which adjusted to the opportunities during further are $X.X our Healthy impact decisions working quarter. was basis, X% XX% Profit have EBITDA a million with it reported XXXX. on impacted already exit collectively as sales bars. build to and operations, had sales pouches adjusted
Finally, global growth. ingredients generated X.X%
in growth by in supply. a decline domestic international and Solid sourcing markets partly was offset sales
organic quarter of and a with roasted recent strong are led in both the international processing and month new sunflower market. retail materials sources for international both strong Domestically, snacks by with raw bring on We service identifying food channels. invest to the wins pleased and serving continue cocoa ended to the in to focus a trends and capacity we
We see to continue the positioned snacks roasted and specialty as uniquely of ingredients to is key as profitably. grow business organic SunOpta areas well is that
on update value an to the turn me let Now, plan. creation
value As plan efficiencies we $XX XXXX working quarterly the of creation discussed the year. calls, capital $XX is few of EBITDA targeting of implementation have by the million end productivity the annualized of enhancements first over million over phase driven XXXX and of last and the
For and quality, enhance EBITDA several the made million offset go expected capital efficiencies. time as $XX benefits also structural first improvements beyond by functional other operations, recruiting calls in is investment severance safety well The yield and phase. are as XXXX EBITDA to will manufacturing upgrades facilities in these non-structural and manufacturing sales, third-party that the targeted resources to Over the to support, of investments these engineering for food plan being marketing, in investments increased at consulting costs. areas be
quarter, continue four make are pillars to the against we progress productivity of and targeted we the plan, each During enhancements. believe achieve of the on third track to
update our during an on quarter. the progress you give me third Let
business First investing exists that company were where exiting product category. our the efforts advantages are that is lines apparent positioned. portfolio optimization with recent the we the structural product the businesses bar not simplify where is to effectively focus are exiting while our announcement nutrition Recall,
evaluated and We opportunities significant our were the we not meeting initiated our rapid response improve a last and on quarter, As operations. expectations drag the operations profitability. overall resources discussed to representing a bar
right was However, not that out that category. win long did work of have with business effectively and positioned the a in to term the coming conclusion the not
our to Given our substantially be customer decided the by avenues profile end we to the penetrate of label, this size business. business meaningfully private to exit limited anticipate relative year. wound-down to and the We competition, the
investments where right efforts to optimization portfolio Our win. do in also include categories making we the have
fruit and facility snacks. capacity having Mexican operations identified well our progressing roasted our as in we’re frozen the investment Netherlands, investments, are with and in opportunities capabilities in in We expanding as cocoa
enhanced EBITDA SKU and the of we efforts and evaluate to today. operational optimize I excellence efficiency. cost creation $X in positioning and million savings strategic our manufacturing, changes million plan, basis projects. for or coupled going to our portfolio productivity on procurement performance with we While logistics. already improved the initiation of the and our pillar is and benefits. divestiture continue evaluate approximately improvement progress remain offerings of to are operations with annualized we our safety ahead of EBITDA food additional implemented ensure $X portfolio to of expected investment an pleased yield are target The generate product have of expected These focus and quality, Since to value forward, improvements our our operational
becoming At savings safety manufacturing in to and identify initiatives, increase the will our operations continue continue and our focus to in food increase productivity the time, industry. same on logistics. healthy We implement quality across to we procurement the leader diligence and cost and in and lower food
reasonable pouch these our performance margin bar due and and aseptic during some As apparent product in the lines, frozen of nutrition the volumes in impact the flexible aren’t from fruit. third the of benefits underperformance to and significant I lower initiatives of quarter noted
identify today costs are improvements that savings of the have we creation over expected process pipeline, implemented improvements time. our the of as in the process impact build Since and of to positive focus over the revenue initiation and effectiveness convert are we opportunity annualized time. margin As sales EBITDA plan, and confident volumes product sales The will yield under expected profitability results new be evident we the is value pillar and financial existing and improve the sales penetrate approximately benefits. of customer in $X.X to pillar optimize go-to-market to this high-potential channels mix Efforts channels. million growth
continue we fruit quarter, white contract and third private opportunities to which grow space manufacturing label, the and company. the with new wins of of the beverage service During categories fruit represent snack account for the some the future pipeline food recent across opportunities commercial
Chief Since enhanced product We our the team benefits. hiring new line. creation The value and value from to achieve the other business new EBITDA implemented approximately a Marketing of the of the skills pillar focus segment plan. sustain improvements is for Customer the to Officer products have efforts sustainability have consumer the on yield top value that talent to infrastructure, initiation capture further the the with commercial has expected go-to-market systems well will new creation as focus we $X.X of plan, Head the of as ensure and the and and annualized of growing company improvements the million
support we efforts our ongoing the project growing which of Mexican is in a to expand new in fruit supply. Mexico, of During our facility third off source and presence quarter, ERP a key kick frozen our in
We also in be sales continue on support to is capital operations to continue focus and our systems planning working process levels refined. as customer and service
and this the to for Customer Manager of the Including have just new quarter, positions. upgraded the fruit or mentioned, organization. my a since products that manager I added Chief platform, February new for we the third replaced leaders senior frozen consumer appointed General several we year, During Officer eight arrival plant new in
creation and each plan. and experience significant their with I is areas talent new of bring value professionals organization the expertise. creation the and in we of remain pleased achieve value the whom to attracting, quality goals of on opportunity our that the encouraged these leadership our team All SunOpta. execute believe in I to of place functional have see
stated Rob? each earlier, I are third over call go with our our and I the you will now results. Rob, financial to As to look we to quarter on productivity targeted turn progress. savings forward the with track quarter through updating
