Scott joining our morning call thank the With Chief is Good me and Financial on today. us for you Officer. Huckins,
takeaways results, me QX unpacking begin I Before quarter. offer from three let key the
First, starting our within business. environment, macro out going has given worth or everything structurally changed on it by nothing is in the fundamentally stating that
the was point. the oat and Our expansion strong, market with deployment milk on underline snacks. are Demand in exceptionally fruit our alignment Again, priorities areas strategies, of dynamics. priorities and oat and capital especially investments all of like base, plans
raw prior prior Revenue oat the and in plant-based labor we in our plant-based ever year have was were QX for revenue strong would challenges, plus very tripled in especially saw the growth versus not demand oat it XXs we and had highest low material in achieving percent. XX% as year. versus Second,
plus this. remaining It operation. much From challenging basis just plan raw we our disruptive declined result much smoother quarter the than points our X% a growth, labor Sourcing the if and labor aspirations XXX to points would however, incremental incremental materials and to have XXX gross above and and current plant-based plant-based larger supply and were deliver proved margin the been incremental basis trying basis margin points of depreciation of challenges. was chain XXX a was which are standpoint,
every the passionate of hit our only chain efforts of some realizing XXX the for solidly challenges Given a team reported a by basis productivity. points dollar represents of case and hustling peers, every supply
timing our pricing some related be the impact will pricing this pass the in cost be These strategies end business on adjustments, the Based will was of inflation there raw fully of implemented us XXX% confirmed material and customer to position. price while current a inflation, on. pricing other through quarter in Third, model adjustments have passed solid co-manufacturing our costs by month.
the with that customer the same call by centric also priorities, we not It Now, these is operations. and to changed. disruptive that plant-based important which the and keenly raw inflation to that order chain. labor fluctuating growth have on. corresponding note patterns, three The on impacting everybody it are challenges push transformation, accelerating customers companies, availability, is portfolio material business the along hitting is our unprecedented of Like many creating issues pillars our I'm our and sure innovation supply underlie were aware doubling strategic this global challenged availability pass is to
plant-based improving our business in fruit-based. growth and top-line profitability emphasizing in continue We
margins to track. Our optimizing our position expanding while by leadership plant-based fruit-based on remains multi-pronged capacity approach solidify the business in firmly our
supply XXXX. to in by these online be August as well combined geographic a operational improved capacity, plant-based de-risking investment Texas provide doubling enabling the the Modesto our mega in XXXX, on through plant Collectively, along phase as optimization. as initial significant and project of growth network be with end, late chain announced in initiatives our target a diversification, expansion redundancy will the coming by Allentown we Our year are with all
where and we We competitive consumer we continue strengthening customer fruit, to demand are supply see optimistic the for strong focused plant-based increasingly about. improve gross remain we efficiencies cost and driving profit, chain products, In advantages. on our which to are
business return awards Our growth strategies and expect on the we pay based received. dividends to XXXX to we to are starting have in new
to raw the and backup adding As responding tempering materials, the suppliers, to raw challenges. From to in I our recognize shortages backup the working raw schedules want it impact. suppliers sources to risen materials to team and the on production the efforts the and relates adjusting Herculean team shifts, labor, new double fly of match has the fairs, finding materials, job hosting the of
new a focus These workers We with employees months. facilities. take plant-based automated our are plants also retention in have training highly skilled stepped up can on sophisticated and highly
the positions, fewer summer. in plant. done material are can are As better training be QX, is than better the six than through still weeks improve around work this we still sequentially open to is the first our situation we overall staffing Similarly, I I as this are a raw but summer, and there efficiency. that far assess of share as in There spot where to
in and growth It sourcing for materials. been been challenging raw disruptive. successful we level above materials that has sourcing and our growth As over planned I is our of for planned the mentioned, have most part, the
our keep suppressed disproportionately So, basis million and delivered in This had to X.X% to total we demand. resulting managing inability with point EBITDA underutilization decline a due I as proactively these $XXX.X Despite plant to as factors, gross with margin in this to increased XX.X%. our due negative backdrop, QX was million, growth adjusted on which by up a through disruptions, all company of to to in revenues mentioned, SG&A. headwinds impact X.X% mitigating XXX $XX.X somewhat
plant-based segment. with turn Starting our let me to results. Now our segment
business priorities we reminder, three have unit. plant-based a As in our strategic
in advantages First, is our already present value proposition. SunOpta strengthening and fortifying our competitive
and strong refrigerated building by a on focused plant-based oat. compete beverages ingredient business Second,
growth Third, so layers are bullish our business comprise that label competitive The private about proposition. reason business multi-pronged, of multiple advantage that go-to-market SunOpta five we has that dimensions. build includes This in have the and value is a this we brands. model co-manufacturing, owned
customers available First, to for capacity capacity, having our grow.
quality, product consistent quality that Second, comes state-of-the-art new from plants.
XX% was innovation the costs challenges last the third history. basis. scale this around is customer shows the Third, have with new highest sales been notably And derived in quarter, This talent from year, strong higher, cost, XX%. our supply over start We revenue availability, likely up which points data Minneapolis, $XXX.X QX raw of weeks. $XX.X next million XX% with category order not Fourth, plant. material is on We into facility delivery in over XXXX, innovation enabled that made support XX-week plant-based growth advantage fill R&D not stack least, a our or reported labor XX our two-year in million that XX.X% brand-new is service, a which world-class to would and chain the moving six plant-based and R&D, investment growth manufacturing innovation. prior earlier. the in I by last R&D significant are faced center compared national rate. We've we a footprint. accelerate but in is Had a plant-based growth five in full includes milks weeks and Retail the as growth plant-based or for X% in professional so, pilot mentioned
has trends Oat share the XX XX% an at and slightly. revenue up weeks, the and for Looking XX% a by revenue type XX%. is down market ingredient last almond has share
flat. And soy is has and share an X%
accounted an plant-based WestSoy our business on. portion impressive of our attributable customers/new so growth brands, Dream, to with a for significant XX% New own and
customer, in milk. major service majority tripled. retail was XX% And a customer from category The we this agreement Revenue we to the our the pace with contract years our is oat top of customers which with during one brands oat-based a for an of brands, quarter, another than growth. new food extended increased tea. supply Beyond by two-year oat offerings, our of existing five two manufacturing third also than which driven more plant-based signed Xx, Chai more the gain leading milk
partners the purchasing our partners. proprietary of of product of process consumers’ one great a by behavior strategic as three marketplace the strong on is evidence and brand innovation-led extraction power As brand validated oat consumer I by a And proprietary mentioned our of produced our our to quantitative testing. quality success Being with the priorities. last is that is of great testimony the call, is this in innovation example combined
QX, the soon were existing We go-to-market new from customers, with begin commitments on likely other standpoint, have that our extraction customers. facility oat very interest key owned in we near is highly brands it you oat From a secured another three will our major from this acquired future. long-term Progressive and quarter. largest Best creamer. strong construction a in combine When the Grocer organic are driver growth in did Product milk of strong SOWN retail ahead contributed we and distribution. Dream to by expanding magazine velocities WestSoy, third New a we growth our was seeing performed XXXX expectations and SOWN, as our oat slightly named which and
year. stores our Brands X,XXX excited of by to we branded the only but long-term prospects end QX by plant-based We portfolio. revenues, in of of accounted be expect the for the over are X%
business. to gross has an XXXX core basis it As point aggregate a compared than more margin advantage our
is for to business. As the have the we two double size plan of years, plant-based our communicated our past
business As is such, a goal. development realizing component to this critical
CPG several promising plant-based portfolios. significantly on are expanding opportunities leading working customers, we with their We are have who
we begun of in us. development now one the a plan brand-new blocks of the Additionally, have Texas, This that business initiated first we of construction to double business. the is capability have building capability for our phase for
XXX installing Pak milliliter to Tetra will equipment We beverages. be produce
big ml you beverage customers. majority sales XXX club size see multiple this billion. And other are familiar, in retail not co-manufactured. we nutritional which is actively with segment this The commonly in approximately the of every gyms, America. a those Clearly, $X.X the drinks, SunOpta virtually potential with and engaging food For retail outlet the opportunity for protein we stores, is for and associated is estimate is
this be with QX production capability new XXXX. We in in expect of to
to fruit-based the added relations, business grow customer portfolio And evolving more on in retail and or innovation actions as partially Declines operator two, in global in and down where certain the number programs three We of Moving in rationalization via million one, quarter, better all were the well towards prior rightsizing through segment of such revenue along becoming both customer SKU increased de-risking value by period. $XX.X doing this types low million the frozen reduction are, private footprint offerings. fruit priorities reported SG&A. by and co-man $X customers. automation, fruit-based third fueled aggressive X.X% our pricing cost heard re-engineering, we're the geographic you've in three, through strategic Similar diversification, and shortages fruit snacks, year, year to what label growth offset the is over as and which frozen customers, CPG blackberries raspberries. XX% as which reflective
We this are engine across strong snacks the very demand in fruit a for board growth and future. consider the seeing
which smoothie marketed period. private XX% successfully data, an platform. frozen time X%. outpacing own over fruit label have same is launched impressive label, we bowl addition, In with offerings The up category branded the co-manufacturing, the the products, weeks snack our on Nielsen and over rising fruit will flat category last branded XX private be Based across basically is
inflation. plant-based another of produced global offsetting more double of delivering cost the fruit issues, last customers. the The Our largest the including around well through To solid of representing a perspective, than have our growth material in propelled top by our some chain business low months as revenue. entirety In despite provide than retail pass These actions supply customers, as as all co-manufacturing the growth, has significant business. setting quarter our customer. to are pricing strong from portfolio, with These grew our percentage top declines a our in expected record focus summary, we fruit of executed the been quarter actions across pricing. faster CPG are pricing several third digits increases the segment category fruit-based
category. We of We've continued outlook double-digit for long-term the portfolio business existing with remains capturing and unchanged. balance our issues, headwind work improvement mitigate the business additional in impact our growth Coupled remains our creating new transitory to SunOpta supply continue the to revenue adding with growth in chain positioned plant-based invested winning fastest products. been on return for capacity well and strong some expanding CPG customers, from and of long-term sheet, of substantial growing customers, capital
my All we of of continue focus fueling optimism which supports continued the food. future on to as
the to financials. the Scott rest us over turn call of Scott? to the through Now, I'll take
