We'll our Slide everyone. XX. morning, quarter a with good results and summary on financial of start two brief Steve, Thanks,
two Cereals Our net to faster levels of than This again assumed. came better It as not driven planned. momentum, Other sales North result in in growth and also projected. good as a price Noodles elasticity & was had we as recovery in returning was happening historical by quarter than America particularly well snacks quickly as
first and Our on high industry-wide adjusted lost basis incremental growth into XX% in two. stemming strike disruptions sales better business brings despite North half supply year-on-year in from operating our a half growth. second a currency-neutral This in fire inflation, Cereal and basis costs XXXX. the America it expected profit quarter comes and was than our and grew This of cost
first a basis on X% adjusted share and two our projections ahead Our was flow per basis, than year. Cash to X%. last a earnings significantly currency-neutral the year-to-date better-than-expected growth grew quarters higher through our of up bringing
So entered juncture. be clearly, this thought was strong it quarter, we at second where ahead half and we we'd of a the
did sales Through disruptions, negative X%, volume America half, inflation. detail. Volume by and was look had Price anticipated. the we growth revenue elasticity first in Cereal all as organic bottlenecks two initiatives. all net price sales not of in the an out recovered to quarter we is the complement more input X all elevated our amidst let's as dollars On Price/mix net quarter productivity enormously utilized America of levers high accelerating components effort gross XX order but profit North shipments remained to protect and growth decline expected. in and much more remained each by these of Now organically notably our This shortages, into basis, cost moderate than sales inventory even year. the business quarter growth Cereal faster price/mix in than grew two, an Slide metrics increase in And two. than in of closer recorded XX% this supply most impacts expected. in elasticity. offsetting growth management as our pressured lays net North regions with
translation by currency net in dollar. organic growth more as of globe impacted currencies each year. sales shows growth two around negatively X quarters first percentage basis Slide the U.S. net the quarter XX of rates sales against region this points the weakened X further than the Foreign during
have in We regions X even unusual year-to-date, North generated America. disruptions principally solid growth in all supply despite
to trade a regions, quarter expect complemented in second the multi-quarter continue see elasticity, volume. by sales already the return a growth replenishment. for management half. Overall, be we price drive our revenue growth, a quarter snacks, continuation levels for multi-year further we reflecting lost are normal larger taken two to the planning impact taking continued For actions including international as in half, gradual recovery to in North On of and as well America stance strength second of our a strong assuming better-than-expected the And trend. we growth face our reflected and volume, two was RGM price/mix growth of activity region, inventory cereal, Russia to additionally, executed from
region lost transactional Slide cost disruptions, captures COGS from the inflation and create all foreign impactful input been These exchange need now factors well metrics at in XX how adverse have across inflation productivity metric to to supply growth expensive that captures more which of utilize the cost absorption savings and spot rate the changes markets. also to kilo has mix. impact. protect a each utilized supply dollar cost help and gross glimpse offers to Turning as revenue management disruptions profit just per input as how is to profit. a
teens you is is year-on-year As of this even the covering cost can was teens, net low sizable see price/mix, after the cost the inflation. in input first half, which portion that kilo our on we The productivity measure our news in per savings. in a how kilo, chart, up per high good comprehensive sales up the is
related unpredictable able second impacts However, last year's supply of strike. and to impacts it's not disruptions and the fire half to cover
the and Our later wouldn't or half level it is strike's impact high remains shows were X. profit pre-COVID year. as can. the gross protect environment not for our Slide XXXX businesses Moreover, half divested quarter during been have we first residual the it without to this fire that higher dollars our first objective that down than XX we in with much year-on-year, unusually through cost gross but it as profit is
our an upward been on dollars even pressured So trajectory. margins gross our have by remain though profit the current environment,
we get longer As half, the we have no second impact. strike into fire and
in we now In quarter ahead RGM it Input no fact, to we quarter shortages lap bottlenecks moderation of and until likely offsets, is and productivity in inflation our remain X. assume X. and cost
the strike. second and profit continue quarter began XXXX refrain the to as returned grew believe to out the in as in travel as on pandemic-related SG&A disruptions, with expense, to mainly quarter years. when profit was XX and continue a Leaving starting growth so can restore two to up, half Slide result, incentive it and strike in gross its when we will and first case shortages with year-on-year prior the only half. you and on worst will North second shoppers activity the and translation. in commercial and and small together, see without to Slide worsening then America we fire Cereal, XXXX, the in outlook the But half pull half. improved investment. quarter in our operating X then shows resume first return context investment quarter year-on-year with we direction X we As This do by related operating narrow aside deficit by in This year-on-year us stocking and and and profit two. higher be on to in lap from meetings. compensation of which our two dollars from which two X and during in all in started the will operating Putting performance meanwhile, remains we our should see how the we XX opposite swing profit decline to of to a quarter stood of SG&A fire year-on-year quarter an quarter trajectory. work a our And SG&A second the upward growth forced bottlenecks lift during currency see increased A&P A&P for half driven how well back supply way in this to relatively investment
second sustain of to this profit dollar pressures and spite well increased trajectory investment. upward cost and the in supply as expect half We in
Slide in slightly items lower Turning growth two, Interest debt. now average to expense again year-on-year XX. the first our collectively half. was negative down to were to only These on owing EPS the and for quarter items below-the-line in quarter positive
and by be an of more portion XX% previously in lower a into a the down income, this the our comeback a lower and the expense, half. expense meaningfully of of of will the interest higher quarter on fixed first asset is And of the half, second other pension values sizable second rates financial predominantly the headwind to interest the rising income nonoperating half remainder debt Other the in values, interest year's year-on-year swing the second half, in asset equity in year, markets In update as and However, sharply pension year. roughly floating rates two markets at pull barring the is significant that over the decreased will in XXXX lower will beginning income well. headwind attributable year-on-year than forecast. reflecting which this
rate line the with was in rate year. the Our was full expect quarter the tax we through it year-on-year. up But effective first in XX% right two approximately half, for
to to midyear and our consolidating income, Africa JV interest in some joint Our negative collectively net minority of at XXXX. less were ventures earnings thanks
now outstanding item. decreased so X. outstanding longer line accelerated options average on We higher than is to less consolidation reflection no decrease have this share it slightly shares a shares exercises And price, of during stock the we year. quarter tailwind our now and that for year-on-year, lapped full buybacks X.X% a Based for expect
this by pandemic, our And been with a years, what while now see it cash of XXXX ratio at flow discipline that priority done conversion various effects adjusted our focus flow, improve was can on us. the net cash cash recent into distorted we've income an made shows Slide Let's of to to earnings has of and starting In flow cash trajectory. shown on our upward flow. our basis Slide look you for has XX. conversion the XX ratio
enhanced lower to reduce this dividend proceeds you XXXX shares. flexibility, increase continued buy financial side, absolute This cash an two. has from leading enabled leverage that our left And side, ratios. net see has with you given flow, to and upward on debt, the us that can this remained have us continued has our even quarter back see divestiture, and On our to cash right-hand the trajectory, flow can we our in along on as
Slide Let's full year. guidance the to a now turn our and for discussion about XX
strong As our momentum Steve enough feel mentioned, guidance our our X all first that on enough half we was comfortable durable and metrics. raising
outlook to X% our net for sales of to previous our increase a from X%, growth We sizable are full year growth. raising of X% organic approximately guidance
our X% currency-neutral X% profit basis, to X% year full basis of on previous guidance operating to are raising to We from a for outlook up growth. growth significantly our X% adjusted
item. earlier. basis held previous a our approximately per currency-neutral X% guidance remeasurement is of only back X% from raising This a are X% outlook basis, noncash to We full growth earnings the by we share nonoperating for discussed our adjusted year growth. pension This is to up on
approximately year higher of earnings, to but outlays previous incorporates to cash reflects not billion, billion $X.X upcoming separation This are raising full billion. our flow for from up a transactions. incremental only cash $X.X in it the our We upfront to $X.X related outlook XXXX guidance also cash
on feel we as condition to the summarize about our enter Slide financial half. XX, very So good second we
continues mentioned, Steve separations. As work towards the the
earnings estimate profit As costs for these costs we'll the external between its readying the company To results of that incur to XXXX to disclose from adjusted upfront operating upfront reporting. ongoing $XX related its into basis will in businesses, transactions. them in share exclude visibility $XX ensure million we now, the and of and the per million in
portion year into our our the can are while which we to incorporated disruption to cash on going about metrics could shareowners more strong of all always. We financial to work business we costs, as to guidance health a of today lengths going estimate this is upfront good to Meanwhile, cash cash half businesses. these that flow raise flow these expenses, while our our of using both about sheet. the are guidance business we ensure preserve and on. enough return pleased great be full with strong no However, balance And key feel our cash our we're
now back for our regions. Let review turn Steve of a me it to