us. joining for Thanks everyone. morning, Good
Third divestiture from sales as X%, pricing quarter X% anticipated. In and a business reflecting X% and from Basics exit a period X% and product the sales year ago in in to the of by increased the in growth decline offset constant other all mix. grew actions, Russia from Kitchen decline X% low-margin volume currency, decline partially the and XX% attributable India consumer business
third the as and effective our quarter environment. Our of broad strength Using third against XXXX both baseline, Flavor actions pricing segments. of portfolio global three-year the or momentum a reflecting constant business up pre-pandemic annual and a growth execution backdrop a as sales the growth volatile rate, grew underlying compounded of CAGR, our operating in sustained the as our our reflects well X%, quarter Consumer across at currency Solutions strategies
down down XX% constant in XX%. earnings or share income XX% to profit, adjusted was was operating Moving currency adjusted per
chain challenges longer supply and quarter, taking than constrained third the is of During continued recovery certain expected. materials
Flavor meet demand our segment. elevated Solutions to costs We incur high continue to in
is lower-than-optimal we focused the period. longer margin levels eliminating than realization than pressure more gross and from moderated the on managing cost profit elevated our supply expected, expected, the taking though chain, where trends remain in While segment, in Across our inefficiencies, of we chain experiencing current are leverage. Consumer supply in quickly inventory normalization and operating demand consumption
eliminating be supply chain coming months, aggressively will we the Over inefficiencies.
began quarter, third levers that catching been in in pace the cost significantly expected segment. inflation with had the cost we our recover other the of outpacing actions up We are inflation price as and both Importantly, to segments. the increases pricing both our Consumer had in
plan inflation next time. We expect year we will over into fully offset continue the as to this
performance discussing third on starting I'd more detail, our Before Slide quarter our segment to in X. chain comment like on plan, supply
sustained flight and levels. We we that where that Improvement support both eliminating of in where leverages structure levels established discipline flexibly been normalizing demand, to have are has our focused our a higher Comprehensive CCI and moderated, it the and plan customer program at to able or cost inventory while Continuous has it ensure both inefficiencies
well underway. are actions Our
supporting high Our demand and top of period to this keeping supply of demand. growth. meet There in supply our that areas supply levels their remains business our extended customers chain have priority sustained and has an for chain our are pressured been
have grow several that will our our they their service We importantly, chain us business. supply so customers to our and increase resiliency capacity, strengthen initiatives can enable progress in
from seen and incurred develop a service we have we have past demand several have responded from our cost shipped volatility the perspective, in Maryland online service additional costs support to expanding above the manufacturing as we're growth. over costs to was Logistics seasoning strong our pallet support supply flavor earlier XXXX. Solutions early we inefficiencies capacity, our These customers in FONA's momentum our Peterborough our U.K. our with first inflation growth opened new be And week, chain. example, And facility recently which investing in to Solutions Center. will are additional to years, footprint new For absorbed. this just quick Flavor Flavor We're We restaurants.
on not into passed our pricing actions. have customers We
benefit significant $XXX built up. least at with have normalized costs a moving aggressively that XXXX. and levels in inefficiencies We are eliminate as as take to inventory out targeting of well We're million these to costs these
actions repatriation of more of We're both better capacity. and from on and increase enable our normal production excessive investing areas and Some to of co-packers. manufacturing expensive include to ship returning our surge capacity reliability use service bottleneck schedules reducing customer spend in to
customer other lower already and beginning temporary are are environment the freight overtime costs reduce well well We seeing labor In as already less-than-truckload normalized costs benefit as as this to transportation of reductions. and inefficiencies. expedited more as we through shipping collaboration,
material supply packaging issues. raw and resolving are We
are For are and to during return come closure Long-running of of half inventory shortage mustard at gourmet stock through certain mix quarter. levels, drove protect A the will first blast XXXX facility of new U.S. quick were we disruption. dry our molds online of supply discontinuation major our announced qualification organic our to which resolved French's of supplier also in fourth plans which we September on second mitigated as executing historical alternative we the component supply recipe be bottle beyond to packaging raised of disruption supplier. bottles And an example, line. in of the supply, perspective, the spices, a and shortages safety impacted from against a a
and half profit impact to lower first our importantly, in expect and realization the XXXX. levels to We of our beginning chain increase the supply normalize costs, actions meet our increase efficiency inventory our ability of our demand,
optimize challenges managed performance have been year. experienced confidence has bolstering structure. the progress last building various then, our Since of several our and with disruption years peak supply chain through third to cost our improvement plan steady the there over in our We quarter operational last in and the enhance
While of look XXXX progress we outlook. preannouncement our by We - quantify the more as chain. needs, to to continued cost within January, resolving meeting We've supply since our the month. I'm increased customers' specific define we our in we when to prioritize encouraged our we our provide within and shared be with sharing inefficiencies the approach supply plans our disciplined details chain actions will would elimination always last driving we forward in and you
Now status the acceleration actions, quarter pricing update moving in business first each expected. our segments. line X actions sales segment Starting third for quarter with third the our the Consumer of our of our quarter of reflect and we on Slide to versus effective all year, with three with impact half what of an of in regions, pricing the pricing our in the
some lower on originally pressure took had from broad elasticity. seen inflation, we elasticity focused Consumers' elastic pricing of less our quarter, heightened levels. than recent price third which actions, where the lending elasticities U.S. we our historical While effect pricing cost as as in areas the and And than during our higher products resulted most that anticipated, remain we began highest on are not fourth take on quarter, in our we did which
with the some further for region, highlights Now, starting Americas. by
were branded since in in highlights the in shipments. portfolio been comparisons with and high has indicated at consumption. how last brands. the U.S. total combined majority baking years, leading And the a remained has by unlike consumption to most with Health consumption has created continues mix grown IRI in grew improve some seasonings items data our categories. result, related three lines, the high three-year and our such consumption of Drilling-related seen with unmeasured consumer in items, share which categories X%, but over Our years. our XXXX, divested were as This for in as level continue growth line sustained to on X%, of shift a although of strong channels consumption which pre-pandemic has In of We challenging gain. past all-time our performance, is and And have core Spices we in CAGR the pre-pandemic. are one our three focused this have as in versus demand lapping grew as increased only a Demand resources strongest U.S. categories we [indiscernible] drive grilling strong had highs where Kitchen year the versus our we our brand meat over still the conditions of levels. brand consistently quarter we products it recipe better stock fourth and last our with was our consecutive as returned impacted the to share years prices, outpace early business. categories. by product Basics pre-pandemic August,
packaging distribution been certain and as Our by which largely resolved consumers by shortage inflation. prices, a spices well has and certain who service-related down organic seasoning trading share broad-based of was some losses, as items from remain pressured pressure under
solid revenue recently category EMEA, Europe using France. and performance seasoning Eastern our our strength spices U.K., capabilities offset new now. and In The to herbs, which category our management to and distribution, leadership realize Italy, presence in seasonings we're we We and continue brands share of are won us in strengthen performance softer by on spices somewhat have shelf. beginning at and our the has to
expand Cholula RedHot in Frank's build are gain this we brand that continuing beginning market. into with U.K., to on we to momentum are share We the and as
as and we XXXX, the quarter year-to-date year, the For growth. versus driving as U.K. since category hot sauce well last are
brand a to, to baseline unlike our Bottone categories. product more dessert in products pre-pandemic flows, baking unique return region, in homemade other again, Our to line EMEA a of have France, we of seen level EMEA as our
ocean Asia experienced constraints that the region such third the and freight to impact to Turning lapping region. Pacific supply contributed quarter. capacity in the chain growth challenges Last as year,
Recently, consumer and monitoring are the needed several realization second strategies, track our an on expectations. in the lockdowns throughout achieving following insights and third situation. experienced pantry we're cities resurgence China growth on and of executing is COVID-related other our have expected performance proven began China new is consumer quarter, the in eased we action the we in the in cities in contributing our some our as resulting Central and with Additionally, we plans pivoting are continually to Overall, which primary segment, operations, our price and on environment. Across based replenishment Wuhan extended our COVID we regions all trade growth. the market Shanghai lockdown as China, quarter,
planned investments the We We have brands. increased investments for fourth and the third continue our behind quarter to additional brand marketing in quarter. invest
our them value our we sacrificing and flavor. to In highly without our digital and emphasize stretch grocery help their how addition pivoted show consumers holiday inspiring dollars messaging effective messaging, to have products
format This product of of We to sizes. Super And launched smaller of needs are better items efforts our We've value. about all value for we point large-size spices. have innovation XX regions. launched a size format of range markets consumers consumers their Lawry's per the concerned the looking than day every resealable is meet top-selling lines is In across the best-performing greater the Americas, large-sized focusing ounce opening XX% one Deal also in branded a budgets. approximately price new are pouches as our
planned right for price increase and performance program we points as profitability we In for terms the of assortment are customers. category customers optimize always, the on our collaborating category a to our to with And season. management, and holiday strong ensure have shelf merchandising
in confident are innovation to marketing We investments, initiatives, strong category which management continue will drive and our brand growth.
to Solutions Slide on X. Turning Flavor
in by for sales quarter the with first actions with growth in was Our increase expected. performance our led all of our effective an we regions pricing three versus the half as strong, year the pricing
driven our highlights. In was strong foodservice summer and remained continues entire institutional savory customers the foodservice Now as are growth the for continued travel EMEA, restaurant we also strengthen foodservice by strong some to importantly, And snack expanding base. to In fuel and and seasonings, Demand regional customer distribution. Americas, across products. flavors strong branded growth consumption. branded mobility
activities. led more by acceleration promotional markets economical And driven in foodservice partially an QSR, branded in to as shift formats. by restaurant, growth service demand expanded all quarter customers quick momentum was of or seeing we're distribution our third and Our customers' strong
of spectrum growth. driving is across points full Our price solutions
our third are in new We winning flavors from growth growth ago contributed Americas, with both the period, momentum. quarter product by and Nutrition new products in beverage, flavors. approximately than snacks savory regions Performance year the XX% in more In driven
our We in new we launches earlier introductions third And And the win expect in share year. categories. new product are for these the accelerated to versus product EMEA, continuing in year, to full XXXX. quarter outpace
performance appreciate strong fueling menu customers, demand. we are menu limited well of the Americas parts driving Overall, and strong heat as many winning some regions, their EMEA offers growth items with as our in our Flavor future service are our further penetration and supply QSR we new growth. business in certain to time offerings. cases, light are we're In with And to taking of this still realizing and our continues pressured extraordinary said working chain APG, In I We core we their high be Solutions has earlier, flavor. we for costs spicy to see the We from ahead. on meet customers customers. our us, as remained
comments summary turning it some over before Now to Mike.
our Flavor our great Turning have X. focused growth, categories to Global differentiate intentionally the we will of and Slide remains continue demand that fast-growing on to for foundation sales performance.
ever and to accelerated increased digital We demand and long-term cooking, on These purpose-minded are global brands capitalize the the consumer rising trends that trends healthy continue taste today during portfolio. McCormick than reach at trusted our flavorful strong pandemic, with them practices. a for more and taste with long-term great the generations relevant and on engagement of great younger the global positioned to is greater fueling for uniquely demand breadth flavor this capitalize the rate.
delivering are customers' growth. through products occasion driving meal are products experiences our flavor We for every and and our
values made so We strategies are goals, end-to-end remain focused We that have and on flavor. the long-term us successful.
the including over through have and and periods of other pandemic the that We volatility. compounded years grown growth
work business performance growth of in of a benefits business global on our expand while objectives the achieving to want and of in capabilities thank our and the drive our performance realization. on costs position focus remains products The model, of navigate our to driver Mike. our compounding continues environment. of sales execution balanced us momentum changes drove and on experienced the and dynamic turn sales and give McCormick variety will them engagement. their adapting resiliency of our our growth relentless strong, as And our growth. accordingly, through long-term earnings to employees, momentum growth our the that well focus growth, strategies I strength for historical as of focus ability record industry-leading our by The sustainable long-term solid and it leaders, our and efforts people realize lowering McCormick and success to to our value now I confidence dedicated over team The Our to long-term fundamentals the profit track with margins to proven conditions market our and of highlights