the independent customers. our morning, we with commentary, everyone. results, XXXX U.S. This Thank growth for of local second in update. case Good you, fiscal continue transition which driven Foodservice results, of represented results primarily first quarter announced segment, segment-specific improved financial close with Kevin. I the second morning, XXXX, into year with quarter then will a business by half fiscal start general and our
$XX billion, the increase to U.S. driven margin increased X.X%. which for X% results of gross $X.X X.X% local and basis a growth sales include quarter Our by second five profit grew of to billion, case was Broadline total Gross Sysco points.
points our in quarter, of the XX.X% Sysco sales products brand which in increased of of to an the $XXX.X U.S. grew XX and XX adjusted points XX.X% second cases growth share saw X.X% local to Adjusted X.X% XX% Adjusted basis operating which $X.XX. during income basis million. resulted to expense operating per earnings increase of total cases. in to U.S. quarter, We increased
grown consecutive now business our segment, Operations. quarterly for period starting X.X% results I the increased Foodservice by case volume our with XX has year quarters. Local to U.S. prior versus will transition and now
our we in managing quarter case total noted, account this disciplined our reflected approach was volume to business, our which growth. As national previously remain in
total operations. of beef $XXX versus was period. growth was Sales the that X% U.S. the impact was the negative for were second million of includes quarter. Premium, which sold X.X% $XX.X year our result, Iowa had fourth Broadline of in quarter volume facility for This a the divestiture processing XXXX, quarter fiscal case prior the an a for As of which increase billion,
X.X% Gross $X for profit billion the quarter. to grew
is we profit driven primarily the growth, dollar pleased key While a XX.X%. are few XX to by margin with declined This basis gross gross levers. points
high we an First, dairy rate beef and the categories. of inflation saw in specifically unusually
As more unable return our impact which efficiently a a result, pricing related, the to year, in profit produce our negative increase still normalized growth. second gross to pass inflation we compared through a a saw Separately customers. to in to quarter dollar we are last sharp but resulted in markets, to
continue third to headwind year-over-year this expect the fiscal quarter. into We
gross less this fuel which appear Lastly, prior period. for surcharges, year were profit in the us, in than year
to costs. Turning our attention
to expenses operating adjusted billion. $X.X increased Our X%
slightly decision to retain to our a in warehouse discussed our were driver higher due labor have and tight we labor As in previous our quarters, costs personnel market.
of to We will quarters. our trends to the evaluate continue over relative model staffing next business couple our
experienced $XXX income period. XX-day during our Denver, Foodservice increased a Additionally, the to Adjusted which strike U.S. in continuing costs resulted X.X% segment. from that added business impact operating we million in serve customers to Operations of within
Moving to International Foodservice Operations, quarter. we had mixed the results for
modestly operating in Our XX.X%. international constant gross changes a income increased impacted were On currency and X.X%, increased adjusted sales exchange rates. decreased results profit X.X%, adjusted basis, foreign operating X.X%, by expenses increased
and Canada economy as the in Our softened slowing customer. results a country parts large a of chain in the of loss some quarter result of a the for business
mixed. were Europe across results business Our
in two operational call, businesses. we is our first businesses offsetting As France, growth other from mentioned arising our which experience continue between the in integration to during international quarter our challenges efforts
through of the fiscal to this We expect end year. continue our
However, despite the uncertainties UK ongoing business around performance Brexit. remained stable
our We modernizing business are growing the around continuing our work and customer base.
independent opportunity and from a Sweden solid Europe company period positive growth in year and Ireland, we stemming versus the positive a business for results In remain We the saw sales be ahead. environment convinced years that the prior growth. will
there for region. about We and growth are well and carry extended our in from Rica in the to more future. this open Panama Latin the America, As performing with our in retail business remain opportunities footprint Costa we excited plans into the companies cash stores
despite saw meaningfully slight In we Costa slowdown despite has economic recent implementation continued year-over-year improved to economic In due Rica, the value-added tax. of a the business growth a contraction. Mexico, solid
of disciplined on continues improved as customers. segment SYGMA remain show Our we focused our to and portfolio profitability
planned we the year points. result, as basis top-line X.X% softness a decreased but period, sales expanded saw XX As gross margin prior versus
on quarter, improved adjusted income within period. million We optimization, we in operating routing are were feel focus year are Adjusted prior operating continued good forward. about and making the expenses SYGMA a by $X versus down confident led an driven to for drive of progress improvement to which the and ability performance business the our going
our is that important it adjusted operating is fairly core note year the X.X% operations as prior well from versus income increased business Finally, period. performing our to
increased the only adjusted corporate discrete expenses to from other prior operating liability due costs Denver and increased However, as the items versus such X.X% several period. claims. year Therefore, our strike income our
first the fiscal to for Sales results Now, XXXX. billion. turning to X.X% $XX.X our of year half increased
to X.X%, the margin in growth total billion, was Gross and case increased points. was case growth local X.X% basis and X.X%. increased $X.X XX Our gross Broadline U.S. profit
Our first management operating increasing with for weeks. solid overall expense the expenses XX was X.X% only adjusted
Adjusted share XXX dollar operating points. profit growth growth and in gap expense gross income to basis adjusted increased to per billion, XX.X% X.X% between earnings $X.XX. resulting a $X.X of operating increased Adjusted by
Net the CapEx a for is about fiscal of line noted X.X% million of our from as first $XXX.X the $XXX.X XXXX. previously year of was was reminder flow operations for half sales, first the in which Cash with million or guidance. half
this well implementation million of flow capital Sysco, fiscal lower Strong ongoing that $XXX.X the as was in million, year. been to in fiscal to XXXX by continue as the last by for see bad The has increase same an is flow improvement half our will always from Free trend impacted transformation road the year. compared we increase free experience as of accounts. strength a cash we are we confident decline to which an $XXX.X the of map challenges an the period was cash and of flow finance end in debt first working cash
for stand a Before would like our I goals where additional performance make to we year. financial about relative outlook and comments few our to our three-year plan the closing,
to Slide on three-year the results plan earnings presentation have a website guidance. chart most We XX recent of our anticipated detailing slides on compared our
case dollar of sales for million, are are X.X% recall, we X.X%; six are X.X%, are are different X.X% tracking $XXX XX.X%. growth about three-year our which for growth These adjusted X%; for tracking we X.X%; to to of which to X.X% operating X.X%; which of case X% for income we local X%, and we earnings-per-share for you X% X%, X%, financial to growth X.X%; included of tracking which profit to approximately to XX%, gross to to for tracking included of or growth which growth to objectives. we plan of tracking growth we As tracking which to are total adjusted
our that fiscal leadership When XXXX generally we of accelerating a announced estimates. senior performance changes month was and year consensus with with noted goal improvements, operating along last growth tracking we
you metrics. to we our three-year see virtually plan from relative to chart, performance can As the continue generate all strong across
quarter clear after considering we our However, even and performance have as outlook. such fiscal adjustments growth, positives an local recent with make second case some acceleration closing to in to decided the
seeing relative opportunities challenges discussed have integration Specifically have strong challenges this deliver to France, plan. investment inflation given noted to are that returns decided overtime, our and and we corporate morning today amend changes, I performance; we related expenses year-to-date certain specifically we discrete see can challenges to earlier, given in
our from three-year million X%. previously to $XXX lowering growth income target guidance we million operating approximately approximately to Specifically, to income $XXX and adjusted are growth communicated $XXX our operating approximately target lowering X% million the to adjusted
We per that still and tax previously these in and the communicated share seeing rate to as would interest such areas added on make line earnings below we investments top-line while flexibility provided delivering our targets. note bottom line benefits are now, the
will to like not investing decision to when communicated long-term, do part invest the we our the the between move achieving short-term choose at of for goal future. for we While given previously a backwards any commitments, or always
we will through efforts focus processes. costs us to improved our are that enhance to investments our manage both The to advance while and will making efficiently customer continue allow accelerating further work growth future
the will include It fueled about to is in that customer-centric leadership incredibly across future, we the foodservice business. in best strategies that associates investments continued our note industry Sysco's the driven by excited are important by one and
that, we With operator, now take are ready questions. to
