Good morning, Thanks joining us. everyone. for
increase We are XXXX. profit solid strong delivered that realization pleased We reflect the to with demand and the from our year. quarter results results of in first early start actions our
of reflects our global performance our execution portfolio effective sales the and of broad the Our strategies. strength
results, in is from gross or our cost making The full effectiveness, on operating our savings global which urgency reflects we are with line with GOE progress optimizing with points year in cost quarter to diligent These addressing Our our results expectations. portfolio continue combined across and year. last we approach the strong and bolster structure, the our margin level our the to our program, with expect plan of pressure first confidence demand are our outlook. improvement we yielding XXXX
or sales to in first Slide X% we currency. growth X% Turning X. the In constant drove quarter,
to decline decline divestiture consumption product towards normal Russia, China, business mix, pricing, expected quarters. and consumer expect Our X% underlying and decline consumption offset to due planned year-over-year X% business with X% by in our return from currency volume disruption an performance in an trends coming XX% a constant we growth which partially of the in see from contribution in lower COVID-related exit and from reflected sales underlying basics strong volume the in a a
for continued the top year. positions us of first the sales quarter well balance for line underlying Our performance growth
our sales Flavor in regions. by growth was Our the underlying quarter in continuing with growth In segment first segment, three Solutions outstanding region. in our our Consumer was led positive performance Americas the momentum led by all
to Moving profit.
income in of currency per to first increased resulting quarter adjusted in X%. constant quarter, our the operating income rate expense X% offset adjusted and growth higher and earnings the effective year Higher last comparable decline in was interest adjusted Our more than in a operating tax share. a
our detail say in words performance, performance gross discussion his like of moments. a income our in growth We Mike drivers a in in few our about adjusted margin in cover quarter. margin which considerable I'd gross operating more to will first improvement drove the few
cost programs. Our as GOE from as reflects the savings gross or two pricing the of cost margin inflation last well the years continued over and CCI our lagged recovery
As our previously we we've as fully current previously, actions lagged levers. in our said plan and pricing well XXXX, to recover year other pricing the offset through inflation inflation as
and remains our program. through planned key is margin our a reflects gross the in of Our cost progressing result our diligence focus. GOE This optimizing as also
and normalize the the our in savings and to of the which scale program expect organization. remain to will We we XXXX, actions as our supply to we track our million cost chain realize impact of streamline GOE take up of $XX line to year on to because our progresses, bottom costs
of in we themselves, driving the strong. is optimizing right the rate driving that and It's have and structure Demand place confident results speak for our profitable effectively. are growth expect our year. an cost right the profile the our for early, in and but we plans improvement at We're continue to first quarter actions. accelerated We still remain margin taking balance
as well of segments quarter first to our of plans. growth business for as move let's discussion Now updates our each
to Turning on Consumer segment X. Slide our
underlying Our XXXX consumption quarter in lapping positive our performance even pricing of our to momentum China. reflecting the and with continuing of due was regions. strong, of the the in first EMEA execution by COVID-related in the trend, of the disruption to the actions effective elevated performance and our impacts and Basics, was at-home related offset That Kitchen Americas Russia the partially the sale exit in consumption Omicron
exit year, activation our Beginning initiatives, growth. in the growth is as year's segment in China the second of exit and exciting consumer of an consumer shutdowns in impact to drive began last to Russia, business expected the lapping of quarter acceleration which of well the quarter, last as of in our COVID-related we the second
Now Americas. for the some highlights with by region, starting
Our channels, grew branded and unmeasured our as with consumption, with indicated portfolio total our X% data by combined consumption U.S. line shipments. in IRI
As we begun dynamics we inventory holiday anticipate retail the between greater beyond normalize and we anticipated, alignment levels consumption consumption as have season to the and impact, shipments forward. and going move between
was on quarter realization. fourth than price performance quarter better volume our Importantly, the higher the first in
both from dollars seasonings, units positive. accelerated our the and spices Early both largest launch to innovation and everyday which seasoning last consumption pre-pandemic, convenience exploration. in flavor of range, provide spice results continue sequentially strength sense with quarters, Lawry's consumers In be several blends, and our our
We to seeing sales category. incremental and are the profit
overall Cholula are of U.S. category. and the Frank's purchases with fire both virus the new sauce Over and half to on in to RedHot Hot and of incremental the remains Canada. growth double-digit from McCormick
continue hot most the build gaming. generation, brand through initiatives We reached younger to sauce recently our excitement with and marketing
that's and partnership version game big Flavor, billion pack RedHot game chicken chicken a North in campaign, a DoorDash, This our was TGI Frank's Fridays And with X the players immersive of flavor had the during quarter, and Fortnite, volcano included shaped free navigating capturing an offer. big is best Floor in our put campaign our wings over America. and impressions wing island
bottles, resolution long-running the the consumption over of consecutive drove And second of shortage for mustard with XX% growth the French's we quarter.
this year. flavor coming year launch muster launch very last with perform creamy well, Our continues to another
in returns on new drive high realizing gaining but Americas, investments, new products. and the and with growing continue our we e-commerce, growth seasonings, in by customers Finally, we're double-digit spices consumption to led
start a great their both For Frank's instance, earlier and packs introductions to following McCormick seasonings variety year. Corn online off this are
discount EMEA, have to of Italy, to in and share solid in gaining offset the U.K. continuing and are driving share category We're the momentum in Europe building spices Frank's progress the RedHot softer We're in France. sauce with our the In somewhat and Eastern meaningful hot We're on U.K., expanding the U.K. performance taking gain Cholula. region performance seasonings continue distribution growth. fast-growing by channel. share herbs, and we across
after Pacific In quarter marketing, low-margin was are and as products will merchandising growth new India, investments to in the in be the quarter this year region, by for the in COVID-related business brand the Asia Our well exit have proving China. effective impacted the and we as disruptions driving in growth. which lapped of
we return As a to have are past seeing moved the New Year, normalization. Chinese we
second to in beginning from impact the last a expect the We benefit of continue disruptions. quarter year's lapping
Outside Cholula new power have marketing of Frank's into was Australian we was and driven Southeast Cholula initiatives. RedHot growth of the brand region by launched Bay and performance the China and in India our strong and and products impact, the extending market into brands, Old Asia. Australia the in
our our will growth drive for plans our about expect of growth well Consumer fuel and brands we management executing acceleration they new products growth initiatives. the We're year. marketing, as we're and power brand the segment an as always, category continue As with of to balance the of excited the
stronger in First, atmosphere are leveraging our of the seal core aroma. Best spice the trademark The oxygen, with renovating freshness. remove Snap-type which means flavor technology. bottle lid top. and date as on printing as well The U.S. color product visibly CAGNY, easy-to-read modern through an mentioned nitrogen brighter the and at consumer-preferred aroma to we we in new everyday We're names Buy the fresher is seals flushed flavor, completely packaging also portfolio new and as
and highlights quality current bottle bottle and plastic, and and XX% our approximately the carbon made new from XX% of herbs, design footprint is The the reduction label recycled package. spices high-quality post-consumer transparency of a the
a really among changes excited XX% so session, are and Testing buyers. Xx XX% confirmed loyalty and in increase higher these freshness current are about higher per consumers. We preference has
The campaign past spend The our the course store products the last the out with of five began month. years. marketing highest supported on happen transition over shelves brand of will rolling year,
packaging the for partners Importantly, performance. is stock. a retail seamless we shelf right new our transition This existing drive category the fits to into that expect
we new with introductions, total outlined distribution through year mention at coupled go minute, our initiative, stabilized share product the other we a with will as I'll levels, month CAGNY. last This improvement market as along points in build service and
We're also in new Cholula authentic with expanding aisle Mexican Mexican flavor into formats. of fast-growing the
tomatoes Mexican are and. on as formulas Cholula as well We Taco sourced using and launching based locally sauces fresh authentic crafted in Mexico recipe
they of authenticity second acceptance products consumers and will will yesterday Retail on the began Product been are shelves for of, new the the and soon. U.S. find shipping over continue and looking these the course ahead rollout strong quarter. has
new half We're consumers the grilling launching in are of with products these can you hardwood the consumers as In from as flavor FONA opinions as smoke three real well kicking different the XXXX with off flavor. flavors Stubs rubs dry marinate for. And the excited really we exploration Choice technology to we're made season looking acquisition, first about new use are Americas, new inspire Griller's a our series authentic Master flavors. our seasoning including capture
launching new new we're flavors, are we flavors club creamy line. French's with channel, channels, as formats successes to roasted a mustard. direct-to-consumer, line testing in ground world Leveraging we're extending the flavors and and In brown of we innovative and a platform XXXX, our also grow product continue launching a Tabitha the into garlic our
including the to of recipe. products as enabling introducing market to old taste U.K. consumers the In brand, leveraging by new we're Bay favorites of as French's a line EMEA, the introducing discover authentic well American America
In Garden launched a we've Keane's taste. basis, recipes beating meal Schwartz a both paste, gravy, lemon competitor exploration are making the which flavor top just be launching recently brand SD U.K., also In and on the consumers favorite easier. Gourmet will launched we APZ,
resealable it China, that convenient up for moisture. consumers life our for locking with In product port extends Bullion makes new we've pouch a Chicken cap open by shelf a product, the and introduced packaging
spicy blend sauce We're and with China, platform Nashville year, tequila with regions forecast continuing heat iconic of of and U.S., agent Pickle U.K. Gourmet spicy our Cholula hot hot then Chinese Frank's introducing the new season, all Vietnam's crafted city XXX% launch season. in mixes. flavor recipe a sale the and In across including the reserve to RedHot we're RedHot Frank's the our products, Dill chicken build
investments regions, increasing marketing brand XXXX increase in the quarter. all Across most and we're expect the our in year-over-year second significant
support to support resolved, for specifically, the and a flavor launched with capitalize launch campaign Cholula mother our our the mustard and brands the continue or we've on superiority with on. everyday and issues messaging our flavors of of ingredients elevating sauce, will on campaign We and use, format to of more new value supply mustard
And growth consumers, with campaign. McCormick, and season categories win gives our of and positive quarter, flavor reach We starting the customers, continuing just A grillers strengthening momentum. be core us for all and drive in categories. course, will grilling plan leadership to us believe robust to confidence flavor even with during our our differentiating they flame a plan more in we
Flavor Slide Turning Solutions X. on to
Our sales performance our growth. quarter was with This this in eighth outstanding. segment double-digit sales be continues consecutive to
Our by as growth in quarters. accelerated which we all three was quarter versus first regions, actions pricing led previous expected,
highlights. for regional Now
fueled customers' product quarter capacity strong bringing volume our of service began we're our sales snack new to seasoning the growth customers iconic their ability was our we products, our related to Flavors category. by the to first well including and was Flavors, products growth realize as improved strong partially benefit Americas marketing as online. strengthen as led Our by Within growth
end applications health continue strong our to contributed Flavors and double-digit for market Performance we driving performance also growth. as Nutrition sales
drier of customers have are business. must of and cold part the the winning low-margin year. December pruning very alcoholic by Volume been our of to beverage with tempered on lower impact than due January products. of a last was and what a We new portfolio quarter some in the volume away-from-home new flavors The
led hot our quarter. was Overall, China, driven higher quick realization quarter. In in of APC, by the from last heat up growth outside demand first their we nearly EMEA, solid the and our service offerings. broad-based drive And restaurant volume or spicy in quick service products to sales across which price in we doubled customers to versus continue restaurants, to delivered growth portfolio, for by our QSRs, the markets
particularly and in our strong, Americas Overall, labor EMEA solutions has demand remained parts business of certain regions. our in
their both we As appreciate capacity and cost continue bring patience we and to customers, our the pressure additional online to service supply collaboration. reduce and extraordinary chain
in our momentum our segment, achieve we We're Flavor and positive keep while customers our McCormick and profitability and continuing margin supply for in solutions, we're this both restoring growth margin we confident in We're sales will driving growth committed ensuring to recovery. customers. recovering
call, continuing increases pricing earnings price an two of is lag will and with cost in rates our to set Flavor greater up recovery. earlier, inflation or have to contribute our we margin which In quarter. through begun the Solutions This at inflation even to our pace beginning I the program, first were segment. lead in cost discussed years. January we had last the the in just Flavor a significant recover catch impact And the two GOE will Solutions the
in minutes driving as product continue growth portfolio the focus volume Americas I flavor region. a to ago growth few we high-margin such finally, on category And our in of the parts mentioned
the continue share executing growth our growth we're momentum. drive excited to expect Now to plans on will and I'm
Flavor our culinary and for differentiation, our differentiated our advantage, powerful our to foundation, growth our passion customers segment including continue our unique We consumer using experience. proprietary fuel with and our a collaborative insights providing Solutions technologies
While specific carried we XXXX, a product development, robust XXXX. too innovation strong year we pipeline of product get following into in about a new cannot
such are As continued targeting the opportunities growth Applications grow and robust our specifically as alcoholic at as CAGNY, high-growth quarter. momentum and and end we market shared, growth in Nutrition to outpaced have we first savory beverages mentioned just I Performance snacks, in markets.
categories built of creating line expect the top balance we year, for it As opportunities. these capabilities the will significant the we are
offering FONA new and greater future customers. exceeding acquisition and on fuel capitalizing opportunities McCormick expectations. is to for to drive to cross-selling power comprehensive sales across our We're increase opportunities continues product We're of our our leveraging and This capabilities by to together growth. The customers our growth. target global existing more footprint
confectionery process in of as our in performance for We flavors customer. are into the localizing nutrition well FONA Canada currently expanding as
agenda, new culinary Global Finally, foodservice, launching and XXXX, Hot, more Cholula in package. including double a we than French's branded RedHot, Nashville have McCormick in portion Frank's the XXXX than of line Tacos, robust innovation a items blend control Street a
quick customers, our with plans partnerships, leverage including growth Our to menu include with and ideas with service placement away-from-home activities. menus, promotional inspire win on culinary continuing restaurants our drive
Our leadership. growth robust Flavor Flavor growth plans our give and also us confidence in our in Solutions trajectory Solutions continuing drive
to summary for comments Mike. before over turning Now it
we've of XX. Turning will remains our to that demand sales to great intentionally fast-growing flavor our on Global focused Slide differentiate continue categories for performance. foundation the growth, and
engagement, We and continue trends, to capitalize and trusted on the long-term consumer brands practices. healthy flavorful cooking, increased digital purpose-minded
capitalize of of taste, environment. products our reach on are is and us in of dynamic our and momentum the flavor continue global we the are portfolio, value we customers' give McCormick capabilities to the the and growth, for flavor mobile confidence and driving flavor. and end-to-end every great our strength ability execution occasion. positioned business to and The its proven experiences our strategies growth model, products navigating demand products our breadth our strong with delivering Through meal our uniquely are for of
ahead and to capitalizing demand, of our on year, As look growth. continue cost McCormick sustainable to optimizing strong focus the positioning the deliver balance on will structure we we to
place We growth have momentum and new profit to heat plans commitment robust on platform our our delivering building increasing realization. including with and our products are in
growth profitable and will the successful We with confident of planned drive in actions we concrete execution our are XXXX.
we as our customers, around momentum unique recognize to patients beyond and performance at thank I fundamentals environment will our as growth, collaboration only sales the industry-leading for financial and want of historical McCormick and strong move since intact, to to are investors the return continue drive want their all we've the also deliver they pandemic. the onset shareholder not we drove but in we employees remain total world The suppliers that I drive of success. also confident and operating been our pace. an
it I'll over turn Now, Mike. to
