Good for morning, joining you everyone, thank us. and
Let begin focusing line drivers. me in will with cover an will overview on top fourth what start results, by of we year-over-year I this morning's call. our sharing quarter
briefly into full in the improve depth to performance I year building the plans begin go reflect XXXX some closing volume of and fourth our Next, as share our our priorities then XXXX key financial more our including and will first will And I full on share and blocks as financial finally, quarter your on XXXX. CEO. Mike year I comments, results details my before questions, outlook. will
and in working, We portfolio. volume our key was drove I our that to initiatives decelerated however, areas consumer the -- their There turning as strategies improvement a X. highlight which top in as that our to on in I relative want by several our are underscoring moment. quarter. will on We now did, pressure behavior, impacted see to third greater-than-expected sequential acknowledging changes results growth. the trends within results meet fourth expectations not our Slide for start the line our that quarter did
in increasing improving dedicated recognize do uncertainty basket trips, volumes. reducing purchases, consumer are to be we and shopping that even are environment. to we that they clear creating want said, making consumers further just-in-time the I value-seeking size exhibiting behavior, more are That
volume-led you We have year results, prioritizing expect and growth, improvement return are to refined and into and and over coming to beyond. drive our our investments should plans and impactful sustainable XXXX and differentiated the
go performance our detail. more fourth to Now let's in quarter
Turning impact volume to reflecting constant In contribution a currency. and sales grew mix. fourth including a increased which in quarter, sales by our X%, a favorable product from Slide was X% X. X% pricing, currency, X% partially offset from decline In X%,
the exit the delivery, direct strategic benefit our expected, DSD, line was of offset the in gaming exit decisions bag the part was divestiture As from Solutions of private recovery impact store Giotti China a label of which the the business, EMEA. fully Flavor Americas, to and a spices in product our our operations by Hispanic of small of and
food like broadly with greater in anticipated than volume prepared macro challenging in, expectations. Consumer, and was the Starting In expected consistent the more we of that differed Asian. participate performance we declines due the with trends But frozen we where Americas results and from the these categories categories. decline was to
down driving low through Americas, our wins. XXXX is improve distribution volume in the plan our price extremely price trends label points narrowing private consumption dollars. increasing category in impacted mustard in and importantly, and, gaps, We promotions For to by
previous the crossing price stress in showed key points to mixes Americas increased Recipe from due actions. pricing
experienced within EMEA. volumes the our In group these Flavors customers our greater have growth. in softness their consumer We own more business, and we expected return volume food to category, Americas a address packaged plan to in of product than to both some
in customers Pacific, related experiencing some quick of are service Flavor growth events. Solutions Within boycotts our Southeast restaurant slower-than-expected by was of and restaurants Asia Pacific. and impacted traffic to EMEA our Asia Finally, in geopolitical Asia
XXXX. situation this volume customer's into these continued continue to in monitoring softness and anticipate are We
growth volume what across the to row expectations line volume. from in for China, strong the which of service, Turning met Outside was quarter. to America all our the second growth volumes. and beginning we COVID-related had the portfolio the recovery actions Asia growth, volume strong China drove pricing our quarter. categories. quarter EMEA by food In the the in with Consumer, our seasonings. in expectations a in branded at for quarter, driven We spices disruptions our was quarter, growth was third consistent double-digit In In in with pressured of across our Consumer, contributed
already on our notably have I'd brand within some Now initiatives in packaging growth our to renovation, products build marketing, and increased of the trends price strengthen volume management, new like further levers, areas. proven targeted which to gap key
our chosen the we in areas most significant intentionally they have these generate returns. believe as We investments will
will our in positioning to 'XX, XXXX confident expect more, to and for results success improved forward. we investments are in going We continue further us drive and invest
our us, customers. First, for both area growth spices and is and profitable seasonings our priority given potential for investment a category and its McCormick leadership
during are sales sequentially again the fourth quarter holiday strength growth, at terms quarter, to trends volume looking continue fourth initiatives in the both dollars And we of branded driving share units. consumption, U.S. with Our performance. in improve in and
have the gap actions are have We America's attractive grow packaging meaningful begun support and price marketing initiatives in and step-up this activate right management, to to that and category. And taking right materialize, continue for seasonings. a plans we innovation, in the spices brand demonstrating to of the results
continues fully that our in the quarter, velocity. notably, At we shelf of of experienced our out according core began second plan. end shifted on everyday XXXX, of renovation to had the herb SKUs. and about of stronger spice fourth have transitioned the And U.S. to products which quarter roll XX% The renovated portfolio,
increased continue with which XXXX a in be renovation contribution results our to to shelves We growth confidence will date, strong are our our transition. that as customers' pleased our this to
lost are on due We distribution was to supply progress past that making restoring issues.
wins and distribution. secured have We new
have seeing a I year. in coinciding making flight we largely throughout Overall, robust in and expect actions would with our gains in to We most volume anticipate results progress shelf of growth our lead of the expect customers' share our initiatives set in units to the impact resets. trends. our of start and mid-XXXX,
as other driving volume seasonings markets. and in share a Similar in are initiatives on spices gains Canada, key U.S. and Spending Australia. growth and the and France moment
our and We and and also as the shipping herb U.S. the new Asia, began EMEA, packaging the in in portfolio fourth innovative with Southeast spice same renovated quarter. products the
are with the marketing increased this We supporting transition quarter. spend first in
foodservice, segments. branded across in Next, customer growth we strong all achieved volume
sauce to to value customer our Our distribution, well costs. menu and a expanded options, fraction of tabletop, with and seasonings expand foodservice their operators in share heat. spices wins to hot as drove new our in great as well their and products taste as are gains deliver as they continue products, turning of for menu increased We expertise share our penetration,
globally total McCormick, the as accelerator rest growth customers a be this to portfolio outpacing flavor and consumers alike profile. continues in of demand for the drive continue Heat to
fourth growth. New quarter products contributed to
salsas Mild the are service For Nashville Cholula in Mexican our and Sauce category. Hot distribution consumers instance, our the new branded continue building items, U.S., and food bringing in to the at. Frank's Frank's aisle And to perform
Australia, we squeeze U.K., national quarter. and the shelf. Dill dips category RedHot are In the on And format, launch of sauce secured Pickle. a with are during gaining hot flavors we popular Cholula as first in momentum the our growth In sauce quarter, U.S., the in Frank's hot new bottle distribution new launching as we Frank's driving well
into summary, going investments highlighted impacted period. positioned performance well are areas I the in for our both volume Super key favorably our Bowl and In the quarter. merchandising our just margin We
Moving to gross margin.
the progressed. pleased improve to with our as are We year performance, which continued
focus of our the optimization results effective by reflect key in driven mix, product cost optimization realization, and price portfolio Our and favorable areas. structure our
While continued business historical in line. drive ability investments use in profitability our our margin to confident our to term, to top fuel return will in our we the to our in improvements profile near
throughout We performance are position the strong work improving margin to have growth. in impact we that's given from driving that on the volume able expect flywheel are and been to intentionally benefit sustainable areas business. focus the on investments And expansion the greatest will a our virtuous we profit of done
our our we made in and right in growth performance, is advancing returning of Reflecting our long-term I proud am full our year the the on on XXXX business flow, to improving position focused with algorithm, All progress a of have cash team focus a McCormick our invest further paying growth. on our to margins, in and strength leverage debt put our ratio. significantly reducing direction down strengthening our
strong. is foundation Our
proven confidence and powerful our from results brands, have and the in strategies we and We provide our are seeing plans the and of strengthened investments. effectiveness refined
generate on to drive new come. levels quality macroeconomic our and trends Our will initiatives focus headwinds. half, notwithstanding to sustainable to the to year during investing recovery take margin the any The growth volume we materialize, improve volume sales pace is and time of throughout historical as years to will earnings second for expect time take to growth
we on intentionality more differently an key are want approaching our that and towards in growth also share posture our I driving highlight to greater plans with categories. competitive performance, even
Now engagement. customer brand me drive ways in our our category differentiated new which some let management, growth marketing, will through technologies we proprietary highlight and products,
a on category management, the discipline we history for pricing building our have retailer. optimizing shelf key revenue in our several with have Consumer and of and segment is Starting a McCormick benefit where management, been both to years in capability management revenue
our private to efforts As recent gaps even we important managing label environment, you seeing current approach are would results. in taking surgical has across various branded the price products become competitors, are In and years. expect, to accelerating this more a and our
In the elasticities experiencing. selected based our category, believe items spices on would we most be we and were responsive we individual the seasonings
product Pepper lines, effective. instance, our to For actions Vanilla in Black proved and be iconic our
are lines. increasing growth and buyers, household driving the in recapturing that are We category product these profitable growth outpacing penetration volume volume is
execution As also price our leaning recipe are I in in points into and mentioned this key mixes category. revenue across America's management earlier,
For example, drove a as contributing holiday in which results, our gravy successful the holiday focused we key item, on season. fourth to quarter,
results we from to as actions our through expect further see We portfolio. the work
price to greater drive innovation, our everyday Across in and growth. over improved These allows look use as our portfolio all price well our diverse us We management margins price result investments effectiveness. pricing flexibility our pack as optimize to volumes we gap architecture both returns time. promotional including in and at make markets,
Importantly, better respective are performance, in customers and businesses. category that driving share seeing growth recommendations their are our adopting is volume and McCormick
brand fueling We our and investments. consumers with marketing, connecting with are increased growth prioritizing
plan We a again XXXX. brands XXXX, brand We have behind with first to did of a so are start history aggressive well strong which marketing for investments our investing underway. in quarter and
year, for a expect We concentrated increase half. first to the the significant
We We continue channels. various to buy in rates media. with focus invest retail to penetration further will drive household across plan increase additional and
Southeast and quarter our Also our U.S. the mentioned our supporting EMEA. and first an increasing and increased include I in campaigns plans Asia, value-focused spices packaging mix in our earlier all the regions, everyday messaging that in recipe for seasonings in both Christmas products Our U.S. promoting new holiday and renovations
to new are our in Turning to growth segments. Solutions products, Consumer In and XXXX in Flavor key Consumer which expected are substantially launches contribute to growth a driver both segment, our XXXX. the
instance, British Nadia Hussain, from with seasonings mixes we For thrilled with early the our the EMEA, results in chef quarter. we that and range recipe fourth Schwartz launched of we entered are a celebrity as
our contributed the households range this was We category brand. other U.K. are into in and double the in products expanding younger The which household in and distribution mixes, fourth new quarter new bringing along to our growth with penetration, expanded rate. recipe recipe mixes
to on collaborating innovation Across meet portfolio, the key of our our needs. customers innovation customers Flavor success. be Solutions, driver with continues consumers' continue focus to to a on In
in in and value-oriented winning foodservice with on-trend better-for-you heat flavors operators. platform our We for products are foodservice, products and, with flavors; branded and
with expected. compared sales accelerate we and the contributed performance our prior to as are from products, to which XXXX We our growth pleased new year,
of have and share in Solutions, freshness, we products lineup will more And are carrying a at Consumer in XXXX, pipeline robust and our products new CAGNY convenience into segment positioning in we of new exploration XXXX, spanning success. a we flavor McCormick Importantly, for strong also for value, which about February. our Flavor heat, customers
to technologies categories are innovation win attract in support customers. to solutions and to our flavor attractive our We proprietary high-growth new share and leveraging
profitable approach, engagement as innovators as high-growth mid-market customer growth. who to leaders are share In and customer targeting our across addition, a are drive gains category with our customer differentiated intentionally we and our base portfolio base diversifying well
actions are results. yielding Our
beverage With market. in growth though by performance we leadership investments, targeting to instance, differentiated segments category the and partially we our the flavor the fourth decelerated, even our category, in nutrition portfolio. and fully fuel outpaced quarter, sales For are drove committed category the [indiscernible]. volume high-growth within high-value growth growth significantly with And in continued our
half of and year plans, growth throughout the during the We year. have confidence the our we'll in yield build which back volume
are to right the categories where We dedicating more resources we continue to have win. to
our our execution our areas results growth We actions strengthen and that momentum leadership. be our and the consumers, plans We a in McCormick, drive believe we where will solid and focused. differentiate will win categories seeing have are of for which
a turn as will Now has to be McCormick, miss XX retiring over provide comment before who has in March. the Directors. financial grateful it our on to as outlook, details served for Freeman and XXXX the to our significantly contributions, Board director from his performance service him. quarter would and more Board for changes of years, end will I benefited like which of on I Mike Hrabowski, of recent fourth and we I am
for through Officer his look make has Flowers the Terry Terry his working joined role contributions with I our extensive to Board. McCormick. that. experience consumer Chief expertise Unilever product at global Foods,and as also and will Terry want Thomas, Growth industry prior current he to I forward brings to to welcome who
