us our execute in for track back with those to the growth into team's half the priorities to commitments, deliver the of keep and everyone. expectations drive on morning, Good results Thank on you, David. year. clear had our quarter importantly, ability heading second our and in most demonstrate the results line quarter, We
this to year, and morning update on for our structure, our made Planters I the Forward results Before margin by outlook have operating want improving progress continuing of dive and an quarterly I the levels, our reaffirmed we start stabilizing the deeper into implementation Go inventory model. providing the addressing business
to utilize like caused the sell the This we second to made top quarter, levels. to elevated areas a supply bring where in was company inefficiencies we capacity, rectifying back facilities, exceeding our and by internal and took supply in inventory available immediate to manufacturing to processes. demand several into implemented slow the priority during I'd inventories better outside our demand First, new we was allowing excess discuss the planning us progress production and and to nonproductive actions changes
actions the anticipated, these had margin necessary levels quarter, to greater balance. but bring a impact during inventory As were into
For responsibly levels and outlook. half all these associated the inventory we are with actions of have costs to lower place back manage in further the for plans year, accounted and in the
we control, our distressed result, to in a better an from with and and fiscal begin sales XXXX from higher income expect improvement cycle. expenses, lower lower resulting cash As investment freight warehousing benefits process
evidenced by as sequential with margins levels. continue even the progress during a reduce quarter, inventory to structure improving actions our in we make increase Second, elevated margin to operating our
to and addition are continuous improvement. improvement actions programs, costs through gradual supply inflation-justified In savings chain pricing driving managing to leading our margin
and actions quarter are third We additional accordingly. end of evaluating have on pricing the actions the further announced at pricing targeted effective items retail
leading compete. advertising by which categories brands the are promotions, responsibly with spend We is shifting growing actively margin for improving spend. some to working this discipline and we and our optimizing way quarter structure our returns to advertising they in retail that best partners drive Another demonstrated by the promotional our
focused a on of to we our fourth from expecting our are margin leading see and the half Specific aimed teams brands. and improve reducing projects quarter. support the second to We spend expect several to the are at structure, return still further in by advertising of increase complexity some projects year, a cost year-over-year to our these
the to took business. improve we Planters action Third,
and in new brand. saw quarter, consumption the with And end quarter, the regained started resources part We we promotional to the which varieties. and by the second corn increase to drive Planters nuts distribution the Planters cashews for the much-needed aided second placements for the for shipping shipments brand promotional at of X% strong significant shifted The brand, execution. innovation introduced we During quarter. the flavored category
that data growth the showing While for latest brand seeds outpacing and the and XX-week category nuts early, for is the and cashews. a peanuts indicates packaged Planters basis is takeaway volume on period positive
flavored summer, we this new cashews This for to running our business. for national maintain momentum a campaign are also
Our change category. to the do point second trajectory the Nuts accelerating we a and of in we Nuts on entertaining Corn the of pace teams for Snack fully focused We the Planters. need quarter brand, turnaround strategy change. what remains progress during proof Planters positive and and Planters business and brand know committed to the our are our represents the center the of snacking the to at are
made we Go the excellence. of our implementing up and center Forward further progress operating Finally, fuel model brand standing
work Jennie-O better streams chain the some Forward. the temporarily at We advancing place, projects of and other implementation the With supply actions the work Snack of our integration Orion. Turkey mostly long-term prioritize resource now Store can Go we structure stream transformational the Nuts in business, of back Project Planter as scaled we including
some chain supply important entire the the highest-return stream roadmap. The work of deliverables Orion on most represents and Project
new provide detail and in to multiyear network. at of project kicked as improvements continued a implement to working of our branded projects our Investor the the global these system, processes off also modernization food ways a large-scale We across as as a have Day end-to-end to series pilot of We more manufacturing strategic as order-to-cash evolution plan and on October. planning our well company projects such a
influenza a X%. Volume fall. attributed pathogenic in with due line largely or perspective, declined were were our supply avian quarter volume expectations. X% topline of second HPAI a to turkey impacts the for in chain supply last our reduction From to chain declines across the Results on highly sales
In addition from during negatively bacon effect the sales quarter. had foodservice retail deflation portfolios. the most by were on to This the value-added net headwind profound and turkey, pork significant the large affected
address pension and net related turkey Diluted operating the impact earnings tax a $X.XX. into Earnings' headwinds levels, per conditions our share for strategic quarter heading included rate. business, in actions higher the quarter understood China, Planters to were costs sales, and feed challenging and stabilize was margin the higher to lower inventory to investments
growth during the benefit bottom-line offset segments. the relief from segment results quarter areas the Turning from to Retail in the foodservice the segments. and cost Strong certain was International lower from and by
relationships, sliced portfolio toppings sausage and premium long-standing for deflation. drive team net in turkey meats, more differentiated our reflecting the Again, commodity and material and this we quarter, growth lower growth pricing, direct foodservice breakfast business. volumes categories Volume pizza raw to by sales leveraged the product sales offset of than and our lower was net impact
Our foodservice extremely business remains well positioned.
and such constrained last regain especially We categories have to the available key to in lost X supply, bacon toppings. pizza years due capacity as business over
Food lean offset of the our and Forward We the to costs. mix from retail, items benefited At pricing culinary brands, of our partially innovative into from we higher will continue world-class leading helping the business to strength and impact our further mentality, competition. differentiate actions unfavorable also all operating which team, and
and results During sales volumes segment, the offset of verticals. played the flavors turkey quarter, net were lower lower primary impact global better drivers net elasticities vertical Like lower expected as retail than most out foodservice sales topline was the than categories. in by the pricing growth the from more of other lower across the bacon
to gains vertical Herdez another pipeline, also outstanding from continued and and sales items earnings. housed to avocado and the our due Wholly, with and brands. was prices. led quarter. Label combat pressures, of The in La on delivered flavors are Black Guacamole refrigerated global expect this our have lower to actions sauces. across quarter had significant favorable The MegaMex another this demand Victoria from and business by portfolio equity commodity benefit inflationary Elasticities for on distribution bacon innovation leading year-over-year relief strong The coupled pricing to strong we in and brand including inputs we gains vertical belly business taken results remain growth Net Herdez
bacon takeaway quarter exceeded Black for Label the in raw XX% volume sales.
We growth Stew including growth chili, meals and convenient market Butter, bacon continued are and anticipate penetration, Peanut household of in branded refrigerated Kitchen category The sales while benefiting well entrees, its and the executing verticals Table, SKIPPY extremely hash. Square Moore in share Dinty products, from many saw cost favorability. and Mary from protein
the due for vertical, quarter brands meals favorable. contract half Overall the Net sales customer activity grew penetration branded Planters double for the net manufacturing household declined net business businesses. growth our has additional distribution increased secured declined primarily categories, X% Hormel year. for as for to due And the the the results to compared volume the sales year. higher-margin of prioritize digits entertaining Columbus and brand to for we pepperoni remain convenient branded previous lower last Gatherings sales while brands trends strong the proteins and snacking Hormel and promotional The vertical year. and back
chicken drove earlier, offset the in year. vertical, we sausage of Applegate channel distribution the its business channel from channel. for its And to e-commerce the expect on items in resets the frozen natural its Distribution mass half noted business customer exposure, back for and our growth of In strength the brands items. favorable continued breaded Planters As its pepperoni are breakfast organic continue to helping gains and long-term Applegate from gains is in diversify and the benefit the emerging growth. which to the key to business weaknesses some and
leading affected was value-added net by final turkey and The availability, most volume vertical, meats lower declines. sales heavily to
to to a Turkey trends positive deli. this strong finish the due vertical the volumes expect in Jennie-O higher from year and We
deliver environment and the our to Go remains us position retail our competitive half focus of we've and year. Forward extremely second resource to better in The seen the well teams the benefits plans from
lower turkey security and challenged, excellent another comparison the In team Segment foodservice the profit sales export sales to While in loading as year. to China, significantly pantry food in throughout helping sales offset and retail the difficult team to last China sales. the and lower growth quarter Brazil. programs sequentially growth the Planters of quarter, improved due for drove SKIPPY the declined International from segment brands well as remained
in The have recovery earlier policy has seen Though slower drive year. year. last of than in turkey on commodity anticipated. half results our improved has turkey and volumes the foodservice the as following aggressive in back year in results compared been continued an China to exports the restrictions turkey to Limited export place we business a our affect in XX% business, retail the in to supplies COVID-related plans team declined changes acceleration
we expect year. in magnitude supplies, turkey half back in the this headwind of rebound the to the With lessen in
second also companies the quarter and of Garudafood, first quarter largest in one The marked in Indonesia. beverage of full the food ownership minority
look and line to during is business the capabilities in companies in Southeast quarter, structurally returns of forward the with delivered Garudafood and increasingly International strengths to expectations further and sound expand business the we both Asia. leveraging Indonesia balanced. and
confident abate, our We the are accelerated delivering dynamics will growth. gradually to allowing near-term that teams resume
sequential our improvement businesses from contributions half the world. expect in We back of around multinational branded on year and the partnerships exports, the
long-term Finally, industry, businesses. from to the resources from to reduce made have pork for to we benefit to our align platforms commodity our that supply exposure value-added we supply our multi-year and businesses earnings' a the decisions value-added reduce XXXX, are trends exposure. efforts to volatility the it's experiencing direct many guarantee commodity important and chain note to of Since align
commodity In difficult environment, bellies. and this a benefited of buyer as net we have trim
on the absorbed have industry. we significant So our in harvest like others losses operations
long-term trends chain. that will We long-standing our monitor and value-added outlook. and to growth adjustments of supportive throughout industry partnerships Shifting necessary, the to are strategies continue make our our where supply
half growth Growth back earnings' the of foodservice of inflection year. are and sales year-over-year the be expected to the an from expect segment We gains. International in and segment in the drivers the primary
nuts, benefit the to we volumes and as the customers for with have sales marketing support our the up on our fill expected and progress family front, we in brands, from Go our brand of ready in such are teams significant operators. commitments SPAM pepperoni, key confident rebound products. standing Coupled to better resourcing we turkey categories snack California. of improved made to needs made a bacon, to On to leading remain our as we customers, business in Forward, fuel, our investments restructuring rates including meet outlook businesses the consumers a and and have All growth in related continue the and our teams serve
been have operations XX in we our that compliant of since our Prop January cost of supply, absorbing of on pork time. As XXXX, a compliance portion the
we new year these guidance later serving begin we per our begin factors, are sales this California expect ranges. and we net the Considering As earnings reaffirming net market diluted from month, to regulations these recovering important investments. cost the under full share
net expect $X.XX. We sales and X% to share earnings net to growth per diluted of of $X.XX X%
are we over second I challenges made urgency drivers impacting We this on team's have Smiley color will by to encouraged turn key Jacinth to the the of the At to near-term to outlook. discuss financial detailed address time, our and related additional progress call our the business. to the information quarter and sense