Kevin, everyone. you, morning, good Thank and
gross profit financial improvements Sales, operating As results for driven and expense. the Kevin highlighted, the core quarter our by drivers. were across
across profit, management in margin operating QX positive operating expense business while We sequential rendered leverage in improvements to generated continued product our and segments expansion. broad-based success was portfolio. Our operating adjusted gross
second the at Here have believe our to actions our continued our driving the are levers improvements improvement of We set the in structural business. table for is fiscal across half we Sysco, and P&L year.
of of our X%, XX.X%. positive our on in across segment income few Sysco with quarter. example, from this playbook contributions portfolio, past M&A profit display QX International these are primarily markets growth additions of by gross driven For years the in was full which the into specialty size growth operating and with the performing this The to recent over advantages The adjusted growth sales delivering is all well. continued and X% geographies, along scale momentum
We step expect in second momentum year. half our the of to in up further positive International the
In announce compelling P&L the highlight be that the quarter, results am share would balance of I not strong if plan. addition I repurchase this note, On our pleased to remiss flow that and to generation our competitive robust improved provides. cash advantage upsizing sheet I did
the The year, full to consumer on Further, the remainder we billion. activity of that as seriously shares, dividend of of billion up company years. have to buy for a as year our take past grown prior plan staples fiscal are for further has from this record one our now aristocrat we the role back expect dividend flex of up amount we the depending M&A $X of $X.XX our potential track X both only growth XX-plus year. dividends and For
in to total, share distribute billion dividend now payments. return In repurchase to expect we and are billion shareholders in to we year, to FY on This $X target over 'XX. through $X.XX dividends shareholders
to seek while the generating tools both right the make double-digit invested long and for our as driving TSR the and us financial decisions, short affords sheet flexibility investors. capital and to grow balance term, on term industry-leading for returns our a business we Our
Slide XX. to turning on a starting summary our Now reported for of results the quarter,
Day. For during we sales enterprise X.X%, the line algorithm Investor with quarter, guidance in financial grew in second the shared our our
X.X% Our and by sales SYGMA growing With U.S. growing volume X%. to volume decreased International and impacted X.X% foodservice results increased X.X% by food positively [indiscernible] XX.X%. total respect growing U.S. foodservice X.X%, local volume, driven volumes U.S. local were volumes service and by X.X%.
year. prior lapping disruptions the holiday growth included a On profit, in gross and impact year-over-year X.X% results were growth a year of per sourcing opportunities from are profit our and around this $X.X we National dollar volume margin basis up weather the highest the We in trend as margin well expansion. dollar rates billion gross quarter expanding continued basis, and by strategic on gross produced the headwinds in timing unfavorable encouraged XX.X%. of case Local efforts. also as
Looking expand working to to to breadth to with we buy out secured to suppliers, expect scoping sell the new better. with work existing half, sourcing of on This our to adding for win-win incremental execute better, second and often and depth includes suppliers. the actions looking items opportunities, existing contracts strategic
of lever $X Additionally, us includes billion allowing improvements in our business. America continual our the canadian to scale North which sourcing presence, will come,
we half improvements As enhance expect one second earlier, of strategic in of our gross to structural is profit year. the I fiscal mentioned sourcing example
reflected dollar our ability across X.X% total enterprise, product to profit our our all the of which managing continue through manage teams of came average to This is with pocket at effectively fluctuations. consistent with our gross regularly growth in major inflation, for Our the product expectations. categories
We progress continued an year-over-year. with are excellent corporate expenses managing our doing job
that been on and year extremely corporate work actions reduced adjusted an basis, X.X% we the expenses by have during by We 'XX prior the quarter. FY driven from incremental deployed and in disciplined efficiency
sales, our making chain were reflecting quarter continued point Overall, XX.X% to progress financial the prior billion corporate with target $X.X for basis from year, XX supply adjusted corporate efficiencies. improvement operating are of lowering expense the or X% and We sales. of algorithm expenses expenses a of
operations supply chain remain Our fully staffed.
year-over-year, gains with improvements and hour continue are to retention per piece to the improve on we colleague year. We building productivity labor compared prior
also during drive customers Our which outbound the NPS quarters. will sales and our quarter, help fill to improved coming the rates in increased
our and a continued the to remained start to the return of on decline continue pacing expenses. thereafter. of to year investments productivity as the with new quality and disciplined we'll well financial These fuel of year's of professional our expected this We driving next on hires, deliberate are investments around Turning curve. focus sales hires levered hires contributions
XX.X% our Overall, the adjusted operating income for $XXX Positive million continued quarter. momentum growing during segment adjusted operating quarter. International with income was the in
Sysco Our teams continued playbook are expansion. the to and drive successfully applying growth margin
from excellence customers. operating income XX.X% on growth contributing alongside in improved benefited higher of Adjusted SYGMA productivity growth also focus resulted profit growth operational from as new profits our
million adjusted quarter, the or X.X%. For EBITDA increased $XXX up to
remains sheet profile. financial and reflects robust healthy balance the organization's Our
ended total net net quarter at X.XXx above billion ratio. the with We is our debt substantially approximately which leverage the in and ended debt quarter minimum a in We liquidity, $XX.X $X.X billion threshold.
Turning approximately includes variance year-over-year flow half million free capital purchase million working cash in also in for driven first which cash flow, with the we operating related flow cash $XXX to of to $XXX our by the economics. the generated opportunistic with timing inventory and solid
at free strong For the EBITDA, to cash approximately conversion year, and at flow XX% adjusted expect rates flow cash XX%. approximately continue operating we full from
to Our growing top remain FY line million and $XXX shareholders in bottom both to We strong algorithm. confident in financial line our financial approximately return results in position this enabled quarter. with line 'XX, us
guidance reiterating seen our Importantly, Slide on we as XX. XXXX are metrics
are FY expect guiding digits from financial in During X%. X% X%, growth All inflation of the of growth volume X% year. sales M&A 'XX, our to low sales in, with X% algorithm we range. growth includes growth contributions Net EPS single of to net we during approximately adjusted to and of positive line continued
believe growth and will from in other half sales initiatives. investments We the continue to improve the second professionals
power basket our and margin benefits a unique touch in minimize global sourcing improve to advantages to expect efforts wider harness scale we more our freight leverage categories, of strategic our buying efficiently points logistics networks. [indiscernible] include across Additionally, as expand we to
headwinds improvements, macro organizational over forward. consistent gross going This Combined recent expect in offset additional investments highlights optimization benefit This business on of $XXX and actions with fund million explore expenses annualized our to around is second plan operating and first in starting expenses and focus to be our and we dollars environment ability at driving with our year. GSE actions figure the half this to we with disciplined industry half. our profit business the continual savings
Consistent to All of these macro expected to is approximately majority industry on similar basis the to we a a initiatives, year, from adjusted self-help expect and a by rate of we ROIC the with modest expect lift, in positive expect QX profit our an high addition focus, immaterial be standpoint. traffic drive QX. international and This in, mid-December. we second rate growth our in of across divested in In at million sales continue stronger which and growth a half to growth joint single-digit of our $XXX we venture improvements. impact second with half growing stronger annualized Mexico EPS rates the
international From an next margins. numbers. year will the year be a do from out to not will to but line international prior starting modeling results for top number We as accretive next perspective, be negatively impacted quarter, plan the of Mexico as-reported recast perspective
However, we until at context of to this aid in year. provide lap segment do its modeling sale plan to we the this additional calendar end
earlier, billion figure share in free continued note to cash dividends. on flow business. depending repurchases. $X.XX In of around effort growth the enhance shareholders without provide add practice continue year-over-year with essentially rewarding Mexico in in our activity. with M&A will in Further, comparisons billion Specific of to we operating is all signal up And This this comparability. an confidence trends as through we our can we plan flex upcoming clarity share to repurchase, of over the outlined and $X distribution annual and another our our quarters, that
FY target X.XXx sheet. slightly we from range the leverage our XX.X% Adjusted adjusted For and net investment-grade the The for to million for initial X.X maintain XX%, unchanged and approximately is our now lower than to year. our balance to expect at tax amortization within expected rate year, remains depreciation view. 'XX to stated $XXX of operate
In the to confident right shareholders. I steps our is progress our with our financial closing, reward deliver We in levers Sysco taking algorithm and for I'm are believe forward positioned guidance unlocking business. that of ahead the across look our as ability FY win. we and long-term business value our to on 'XX long-term benefit the we to
back will I that, closing to remarks. the turn call Kevin With for
