TreeHouse Foods (THS) 12 Nov 242024 Q3 Earnings call transcript

Welcome to the TreeHouse Foods Third Quarter 2024 Conference Call. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note, this event is being recorded. would of turn reading TreeHouse safe statement. I to call of time, harbor Siler Matt Foods this like the to over the At for the

this you release at earnings posted treehousefoods.com. our the our items us Good Investor third These and for deck. available and issued our thank today. morning, website Earlier are morning, earnings Relations we quarter of joining within section

risks can advise are the to with our our an that of SEC. On Chairman, GAAP we Mr. Oakland. you With of basis. contained now A to today's be snack filings that, September company's non-GAAP we within that and forward-looking These the Before me in may expectations projections like discuss begin, to in provisions will and materially the divestiture the we reconciliation measures Consistent on intended completed their business. results on continuing quarters, operations most XXXX, would statements results Securities XX, with measures uncertainties Act harbor call President, adjusted actual those and differ appendix safe earnings to risks statements. to is the on tables let are comparable Private direct turn over Litigation call statements cause deck. forward-looking fall I CEO the release made and based of our today's found Steve the of all from of Reform the and current our involve concerning Information XXXX. prior

for and everyone. operations on provide the third and discuss financial Thank and the results our year. of our morning, good will update I remainder Matt, you, our outlook Today, an quarter

frozen we would to recall the on products, results, announced which Before griddle you voluntary update month. we get I the last of

initiated of quality of initiated facility. The a of out assurance you safety recall our can products made X, a to Brantford, our the result facility routine made commitment as on quality. recall the products was of in Ontario at TreeHouse Foods food see Slide As and testing

deep We cleaning, have temporarily a restoration. hygienic conduct and sanitation closed the facility to

food extremely when we recommits safety. our are entire is comes us to relentless be to system. to this committed Our occur organization food have safety, in to But it it all event and of disappointed

expect resume first manufacturing to the We of facility XXXX. the quarter in

our on results to Moving third outlined X. Slide quarter

Our organic net just we was adjusted range. $XXX below which delivered sales our guidance trend sales net improved million, of

as performance by Our was consumer the quarter and trends impacted progressed. our categories specifically across weakening industry our third

adjusted by strong the which in well gross the the in EBITDA Helene benefits was we caused guidance days a our savings midpoint final of volume of top chain savings, $XX was sales savings at out of we of with driven our $X associated expected range. in our the provided the chain procurement This which securing We our our estimate against executed $XXX shipping recorded still supply anticipated was initiatives supply impact million an the Carolina this profit, of Additionally, quarter. quarter result million of some initiatives. and line. Despite results, distribution these Hurricane delays which between center our million North adjusted of

on these to we year. progress initiatives making next the lead Importantly, for momentum are positive should

which experienced look categories we X. which consumer the a that Slide the we third on quarter take during the detailed in at Let's trends are in closer operate,

remained private With compared industry that the said, brand a broader trend on the see that levels. persisted near of dynamics consumer favorable assume we and through impacted can of side positive on the which quarter sales continues continued unit market. in were the This see brand October, in slowdown that quarter, was to progressed significant the likely deceleration overall, when private you the as pressure the it a While historic we did page. This term. result right

Slide smaller specifically, consumption on are to environment, see from healthy. can share the take a the given gaps gains As lower coming brands pie. price are share you Other but continue X,

year relates increases it to calendar gradual as progressed. traditional we promotional Finally, has levels, pattern have seen the as the of

do in the we quarter ramp to the expect fourth are still pandemic. seen that note promotions levels the typical historic we While the seasonal below prior would

is globally emphasis focused This brands. Albertsons Walmart to partner share, launched in trends. new of As like opportunity clear business X, TreeHouse trends customers also see private almost available value over additional private Costco's private it's decades, accordingly. that recently, for the Kirkland established retailers slower the the on are in near term, and snacking. Continuing gaining challenging remains ALDI their intersection discussion will of the to and Slide America expansion at conclude the see providing positioned term. I how in we a and the with on brand attractively grocery incorporates further long consumer The by to believe that share its to retail runway assortment and and across perspective which exclusively shift long last underscores is own making of been would an TreeHouse both create which strategic manage with incredibly some both have growth. private on long-term consumer private many continues our X on you long-term North brands term. X, the brand over can U.S. growth powerful gain brands category with continue base groceries the over the we consistently plan Slide X consumer growth towards opportunity brands well investments the store

our organization, Given these trends, as things focus supply we primarily continue on the in we to an chain. control can

on progress XX. and significant we our remain and execution we've outlined foundation made supply chain initiatives have on our focusing on see what have strong, consistency. The improve still executing to built Slide a the we opportunity with but are you areas number of We

management and efficiency TMOS, savings our system, to visibility The XXXX. the efficiencies our TreeHouse operating building network. chain have savings commitment of include: supply our of million opportunities $XXX initiatives gross manufacturing We of these delivering driving blocks procurement of through through improving

positioned positioning, execution. and believe categories right to company and on In Additionally, improve on we those this capitalize and flow. the environment, to capabilities prudent we've opportunities in the invest depth, focus in our think profitability cash I it's categories, to will competitive

We attractive are the to function to margin building of allocating customers. us businesses that and by mix most which should our profitability allow both capacity our enhance management our a strong TreeHouse profitability drives for

our we to over the profitability to despite these outlook. progress Additionally, that, more a pricing With updated the a I'm Pat efficient our improved to initiatives have on slower quarter of results and further for drive in growth our Patt? the on now call a opportunity ability result develop turn confident as environment. will I third architecture. detail

good TreeHouse and by team morning, Steve, their thanking this to I'd hard Thanks, start like everyone. the quarter. for entire work

quarter third can Slide a results You on summary see of XX. our

Our over adjusted year-over-year. down just sales were X% net

we solid Importantly, approximately adjusted EBITDA $XXX delivered which of year-over-year. XX% million, up was

year. On XX%, basis have to our points EBITDA XX, sales last which Slide adjusted further was was margin provided on detail compared up XXX Our we year-over-year net drivers.

adjusted quarter X%, sales sequential to third a trend just down reflects improvement compared of our net which over the in were quarters. couple Our past

slowing Helene, pricing was points categories impact basis the the XX in wins days Some as in our commodity-driven disrupted a targeted were of Hurricane quarter. Pricing which our recent offset by of final consumption distribution due to of and of the adjustments headwinds headwind we business about from expected.

drag by sales of voluntary of griddle over recall a the which Additionally, provided X%. net impacted products, negatively was

take versus and commodity pricing higher year-over-year in by EBITDA was our targeted initiatives. a and our prior you procurement Volume Moving savings, absorption, the were driven XX. related volume net million supply by on chain through Slide to down supply adjusted costs commodities cost was and million PNOC, $X quarter. including driven benefit by $X down I'll pricing $XX chain was primarily drivers. million, mix, lower the Operations driven of and year, investments. to net

other income primarily to and SG&A a Lastly, million versus $X last drag as TSA we was less due year, expected.

Slide for our and capital allocation returns The Board enhances outlined which shareholders. on a focused is in to Moving strategy, manner on be that to continue deploying capital management on XX.

our which adding priority and capabilities. organically we first strategically and through business, in remains Our depth inorganically CapEx by investing do

maintain to share and sheet balance on our when our our dislocated. strength program we We also is execute will feel stock price continue repurchase

disciplined risk-adjusted be evaluating to and at look by capital decisions continue deployment will returns. We all

on our Moving outlook to XX. Slide

net We X% $X.XX negative remain our year-over-year of below quarters recent billion, year well adjusted which billion impact our recall. our trends sales are or to reflects to to as negative the X% $X.X full as expectations will updating that griddle recent consumer

updated consumption and base the our impact adjusted expectation million. trends fourth guidance have to It our we mix we year throughout to of deleveraging have related consumer-driven Additionally, the quarter, in recall. the This slowing million during our also experienced creating to season. reflects $XXX further supply update griddle $XXX peak continue that reflects EBITDA our range

cash to free million. our flow revising we Additionally, least $XXX are at expectations

and Our capital to interest of $XXX remain $XX expense million million expenditures approximately of guidance million an for $XX unchanged.

quarter, to X% X% adjusted the range million, approximately expect it representing of year-over-year to negative As $XXX million net the fourth relates growth. we to sales be to $XXX in

a fourth volume from pricing. sales modest net with Importantly, very we expect drive to track our quarter

be the range of Our fourth quarter in million. million $XXX to is EBITDA adjusted expected to $XXX

to thought Finally, for would helpful outlined given fiscal we which are XXXX, provide be and some are perspectives business on griddle expectations I XX. initial planning Slide the recall how it XXXX, on our in revised our

slowing challenging consumer in a growth. environment we remarks, exhibiting Steve noted see As his macro and current trends category

from growth business our business and impact our top new our and trends broth to our recall griddle likely strength relates in persist. that to of the wins offset is are recent consumption will that current it likely As be in by the line, expectation softness

providing I'll remarks. further chain to a of cost is earlier. and With As Steve next line for supply year-over-year initiatives it and once I of to to some drive Steve? look focus year. February on turn dependent report management that closing efficiency growth which EBITDA forward on performance, Steve in discussed top that, we we our margin XXXX to back QX context not result, will improve over optimize

Pat. Thanks,

your track are quarter. while as the Before with the we questions, to deliver execution are we we to focused improving up that are we year and in on organic I'd the to are event, out open our we closing disappointed recall volume the like to on consistency. call reiterate fourth And committed growth

believe the of us. well to front the opportunities on I capitalize have in ahead, Looking we positioned company

management the the turn foundation on chain to initiatives With margin profitability improved focused supply that the headwinds. questions. drive we and including that, the are despite over should and We production I'll business operator cash your new flow line and recalls. restoring things the call after the our opportunities, the for macro This to strengthening of control, open

question first comes the from of Andrew And Lazar Instructions]. Barclays. [Operator

the some through 'XX the having still recovering that benefit of I TreeHouse -- this there, I but the is the quarter? And is be a of little is my quarter. still of some in that have any thinking little Obviously, guys line. right, excluding to industry than going. to guess, do dramatically changed guess business. perspective I environment. so somewhat an for people lot changed that new maybe pretty clearly, even offset of And the than top you a you label paint broth you just from despite also sort a where on private if right, where -- were been brands bit went wins dramatically our are going? of because you -- don't just a question, this out I of I'm what outlook, private about from Steve, in weaker to think begs question on last we this like don't and time. the what know outperforming of broader I and better thoughts you last recall, know a you've even distribution puzzled, things a expected it are label see it brands industry long outperforming industry kind question. the is standpoint something just If volume more think relative than is It isn't what on like

and Andrew, where for volume, if half coming was yes, you first at right, did. from I just at thank that of you it look look the unit I -- 'XX. mean if

have that leading as And quarter, was we is the channel get Mass negative. In downward even dramatically at in we look more the a mass I country time, tough the you traditional They're when I'm steep and label in a the channel right? third The at mass channel channel, looking and October, October. charge. at September data, grocers right? mass the example, having look grocers. their trend negative, For August, saw see right? largest private been

the we top So private a with wins positive out first beginning So on end business to positive in in of I of guidance the X that's just for at the a for all the saw range I'd we got a we're big can't sales wins you of our anyways have flat. categories little new fact basis in we points that things. were that that and the continue fourth uncertainty, to least year, be we plan plan of year, of to we we at end bit now the right? some right? in from think would the just what label fourth for the maybe looking So The to top at change it's it can because right, love think above we something line, the XXX on when allows months range to the that those us different, standpoint. I the to So election Thanksgiving, we're to timing have going a that right? a the guidance flat say it's number at it's say love anyways, a of quarter quarter. top our bottom of give number, or scratch we disappoint But

So that organization pressure takes procurement lets we're better, it behind off on us savings, capital, our of the we'll our our is takes driving savings. driving consumer plan off If getting going we focus pressure be But recalls on that. on our us better. these think growth team to

because I food They've of is guess So the be good cap But from seen spending were it. I just large drive we is when mine don't one moments should categories the we categories cash total should okay. think a lot do drive But it's consumer back, saw of comes you as inconsistent then flow and that data some the we'll suggests the your those other other to companies. look volumes -- as we this saw where as prepared in what from down. think savings, of

Yes, reflection on it. don't know sure. for Andrew. I wish where gone, I that's So I it's a better had

private about exclude would you follow-up Got share vein it. sort last within we share categories there of think to sort your talked went I started then losses And to least even third label control, Even the you the of at own expecting you starting broadly your through quarter. that as happen if some gain think the a of what controlling be, private your of still categories? in do more categories you in in are recall, within can within label? to Or quarter,

guided it That way the in its we back, quarter well broth, be everything out No, post-COVID. the We pretzels we right? dough, and some of right, top I all coffee, real right think of categories, fifth it's would the cookies, glimmers hope be. But our of And the bidding 'XX. Four saw where there, is right? performed the until lapped quarter. it's back went through on we losses thought that it on and of XXX% won't -- really of that COVID we X came first

see those yes, of growing us So places. number I in a

It's growth. to our business fourth drive in-store cookie did job. baked some quarter nice going think really a I

negative is But of dough of of scratch going out -- Our right? so We're business to those just to X% share pie all that. couple to do that. for, last we think of what, of a or return drive some now. have label then, and of the broth of just has growing X%, course, grown But unusual. Private driving that's the decades. things share I some is And right

Jim Your question next with Stephens from comes Salera Inc.

some promotional volume branded We historical back kind think try they to to follow-up one categories, could I as below impact overall. an increase you on it the activity Should promotional of incentive for levels. where negative think we or of a about for to players And some levels. the category. respective to the the of positive about that is that back historical hand, if having a to there drive commentary back scenario see their still see overall as I activity brings guys? Because you Maybe on if

you're label it bigger maybe I and of And competing share the could compresses value private But a gap makes on it that the a for other see attractive. less pie. hand, so

just you any kind land that where on dynamic. of on So would thoughts

than gaps Sure. smaller Historically, they been have today. are

aggressively historically smaller even really gaps. brands So the promote fourth seen we okay with price we've quarter, done in have and

So price a we those they're in way, numbers. price the by [ have And today's ] larger environment, are percentages, of larger gap. caps percentages

the it's So right is penny been. gap large pretty largest now, the ever

large gaps. you've So got penny

good more see drive will your private categories point, we'd So overall I and be the to love the the shelf label right? shelf. traffic to hold think to should share, at for So traffic

We've challenge. the the are of that's think down. Traffic that retailer. some numbers seen largest I from

exceptions traffic drive and of have love enough I a the to consumer couple the of is there's there's food right? core think industry, to in have assortment up, advertising don't a enough where and the categories Now and store. in places in club, the again engaged places. Unfortunately, bit I'd some we're So because grocery get those back volume don't going little promotion,

for new either How Okay. with -- large of kind And percentage ]? seeking, do you existing then Just if adding expands to of of outsized you as share retailers kind offering the moving label shelf forward? think about just just particularly an is of the label more as the expanding overall are the [ brands the ones. pacings there private value private or gain consumers opportunity composition shelf

new goods our then X partners brand what, saw well their this and think months, better at label Walmart. know last, retail really private consumers launched a I and in obviously we

has looking is exactly think doing I the the loyalty said, that you and exactly target new it reasons store. lot of they to recognize for understand the both for today they're a and So value consumer right? They

We both participate to think avenues way, grow. So for us those new of the going by new in there's brands. to be we

be we'll supporting So those retailers.

do the think so. And I yes, label private they where gaining So regardless pie of is is think recognize I going. share

going, skate private where They're So they're is going puck to label. trying to right? the

see we that set need the we really we top in So It's But opportunities consumer just right? this more results to line frustrating going consistent of to can't deliver forward. a come us. environment,

comes Andersen Your next William with Blair. from question Jon

now? still your mix the snacking of had the share ongoing to performance tougher right volume of words, categories of private commentary in the you I'm position kind to your categories more is a and performance store? private unit across Or across label are wondering, softer trying of other label of of so, First you're gains In broadly why? levered advantaged the seeing on the overall the And label of I private if in store present? kind consistent at unit in square sliding are particular is, question kind kind seeing of the with declines. And of than just I'm kind that the private kind kind you Steve, [indiscernible] kind label

seen some a Yes, having comment, assortment toughest an and Jon. general, I those I deep time. are have have is we've think hot strong, do having label. had it's a But the think that category, -- some categories would that tough grocery cereal, of time, tough I couple They right? I are variability think the maybe example, overall there on times. for largest We in we've retailers private of say traditional traditional a seen it grocery, big, is right? by having

so much center don't in outliers things. that. those our right? some apologize digits, what's for label down October, nearly very would all and center stayed categories they're on We environment tough suggest private I that's to for categories, closely, I got store. I'm right kinds data watch so double in we've categories. but there the closer dairy are those for a of store And sure in So that going

Okay.

objective? are cash top you on could And Just cost say, about chain comes also, with think improvement, are sit, you on to volume line initiative, pivoting focus saving. gross flow, of cost-out in of to kind to target overall -- where million kind the that program? And however associated supply exiting of that the around savings, deliver of initiatives, provide And us that against how that progress XXXX dependent? savings there? your kind you've any $XXX XXXX you to Or an of incremental savings on outlook kind update the that margin these in, got with things going out of the you're are be surrounding able the

are volume cadence end the So this where savings dependence any year, in incremental and 'XX if kind at the of of you on there's that?

Yes. this John, can I start. is Sure. Pat.

chart think we've quarters, we flow-through several we're and million which in I of the the that materials, chain, of started. seen I did think see the pleased, our if don't over is quarter's positive $XX that we've last supply saw you some of initiatives this

see So that. And able of procurement ones say quickly I'd we're we're one savings the was start to pleased the to cost initiative.

the of seeing places benefit scale done packaging you're we've first having think year. the ingredients got of like and through with I so the few we conversations vendors the that. TreeHouse and And and partway and and our that that And projects,

into some projects we'll next start. lap year. got we'll So savings We've other

being one and So that is drive one about procurement we TMOS plants can savings ways out drive service cost as the waste. and the feel of our main just think levers. We efficiency about of in we good

back next see the trail think would I time our following that's be year will into to relatively And be you'll so this we annually. year. And one half kind then of start year deliver focus over network. part of that off on procurement last frame consistent the that And that then and distribution

] the many to [ around travel, mark closer And driving cost way. putting and out and able so off That's now. have deliver we take service customers that get to we to some work a is inventory miles being right ongoing that chance how

not those. And so we've realized yet

come. to this So I think will start

of that And network we'll good we'll be things, to have in I look continue us. do favorable over environment. good time. distribution types things been results to doing efficient annual to drive those our full RFP of loads current We've within think freight And of then in what helped and a space the those at done and sort do. we had we've job being really think efficient we've I that

the had forward. make to on continue making So I we're to like feel we those growth savings that hoped and progress we drive those

with Your comes next from Dickerson Jefferies. Rob question

Great.

Just wanted just of we say, into for term guess, touch argument's like year. kind sake, kind of least Kind kind maybe the growth net. drivers, next part on and of around I of QX revenue sales some midpoint of the let's are flattish get to near as of, at at early

So -- volumes fourth in but growing still quarter. the

dimensionalized haven't kind could dollar be We exactly for impact be what actual on I dollar Nor that [indiscernible] do the QX. the could in frozen side. piece necessarily the know exactly of broth what recovery

of So ] like QX? have X year's just in given maybe be recovery positive? bras -- the of kind offset fully QX. frozen the Does I'll [ it the ask question. that last of Or year-over-year kind we net That's [indiscernible] could headwind first the could the that

this Rob, Pat. Yes. is

think I largely are those offsetting.

other we we're that as sort progress headwind softness consumption. wins. think then you've some say relative we we given had the make the was consumption probably some I described making of some hope the It's new distribution is I'd we the maybe to just of headwind volumes well softer won. of business on got lower to as than the a broth. And

Okay.

then store. to That of focused makes broad a just the kind of categories guess your Cool. I relative And Okay. question, sense. kind on

have a what least, bit bit at more of you. or snacks months broadly. I kind of a and a have it. been of past meal-related mean Over you little kind but buying of area snacks. kind the pasta, little of few more seen [indiscernible], pressured items, specific There's of snacks right, news a lot has underperforming maybe every miss shoppers broadly like on snacks, kind been we can't not

snacks, on are Investor there push that when specific to when pretzel to there -- branded the think bit where like, working. I it's are well. back growing within about portfolio So because you really I'm Day curious, little trying go had are side your areas maybe the you the are you like a harder twist

snacks into the kind kind totally And then right say, that Yes, kind store? you parts how there we're broader is areas of the Just other relative gauge Maybe "Hey, you're trying area to are of of this to where portfolio. now." to viewing relative leaning working. of

Sure, Rob.

them, pretzels. first highlight in on business And quarter in for wins well. the snack you of doing momentum with really fourth new one pretzels the is think which is us and pretzels. business both and that business that third was quarter, I a our touched the will And for solid in continue

for not other a that's cookies. The place strong manufacturer We're in is there. us big

it's on but So a sold baked in-store the a is large things The in rate business in-store our are number cookie that good well. section. bakery growth as really small

We give some cookies as strong. et are see We particular. cetera, we we opportunities pretzels as business, lean to So going that our see we're growth. hot strong. will into beverage those think there other some in But think us in X

different. assortment store. to on pressure the So grocery their think the deal do that's with probably different a consumer in store consistent But the buying of buying with is They're what you've seen segments in we wallet. other the

question Your comes with Stifel. from Smith Matt next

you I wanted the get and just you to facility. to and frozen recall the of visibility into have the back from griddle come that a sense restart confidence

of come first in back kind to quarter. the production it expect you for mentioned, online You

that how your far. issue so the Just conviction on unfold behind of based level seen you've

Sure.

cost put do we work on driven which think cost to okay? are TMOS service, seen right? very the food disappointing. things, I us was And that externally that service. you've safety, these the first, I'd do to ask where to obviously has about X quality provide talk it chain back We lot a and do ask go fact to our and we then supply

recall a facilities. This as result of our inside diligence own our own

gaps organization, incremental our that investments our in drive right? [indiscernible] investments think equal safety so and gaps. food safety year, through teams And food identified those that this made we've in we've facility, we I to identified

resources right. make it the it have behind We to

started the I in in quarter. good think first to we'll be get it shape

there's So resources I always -- have about that that on and don't feel The this obviously technology right? fact it I to given think greater of today the we risk, available companies. -- decision. when don't mean, I but I the comes drove you it's we us good as I learnings it the there's to given And really system, also food all is and test resources our think so much us how across that

in fortifying this you've lot. business seen think us a make increase as recalls we're will of a And stronger term. the think as I mean, I I will be -- our and this that think I that a We're result long learning system, commitment.

So I and it, we around things. have the like right arms we're feel our doing

good So I feel first about quarter. the

America. from comes Bill of with Bank Reuter question next Your

that a have partners doing strong, gotten any have to been was issues just there couple long important if that the just to are to I wondering you're with first, could your I and of changes the to the the and time, If any impact longer regard -- sense of of have business partnerships you've the this broth you've clearly, relationships given sort there are term? been all been waffles. challenging them. a

would -- I you've I and say this. us heard talk about think

we've came audits and the back us, that months, the dozen positive. facilities by griddle right? on customer customers think taken makes half our with I the And this frozen facility those journey XX in had outside right? And last a audits

commitment that gone further safety and I customer to that step we've think to our So our food guarantee realizes it.

And think But will our journeys actually have similarly. when recover I happen. broth relationships. recover was these those bigger before. frustrated as And business our things broth waffle I business our business, than strengthened is Everybody we will think so our be

be little business think it's looks to But a exact like going to shape really forward. it's I that early good going give waffle in So our -- number.

going at to good you all And you secondarily, capital that allocation, did hear. Good, you're share opportunistically to reference discussing were then look repurchases. when

M&A of which target. might be that you're numbers if is something near I increasing a on have more to heard I'm evaluating. You're still move wondering targets much I pretty willing guess that there your little are currently bit leverage price.

So the just there. what is outlook

Sure. Sure.

increase in to our the first -- them, have that and remain we to when we -- It's think priorities I would -- is invest to right. we couple to capabilities. our comes we versus We and great in opportunity strategy business, in right? our categories there's [indiscernible] unchanged, business, capital M&A thing like our build allocation one. And and number a it at think have of look be going

we we buy in that then we've buy places, capability. build If Other we'll coffee, capabilities example. them. them, for invested build the crackers did those like can than cheaper can We to

that stock talked term, price M&A stock buy those it's that the We'll and our dislocated, year we've look buy So as that strength things build today. dislocated shares. zone decision. simply you'll near balance I that our this we'll in you somewhat love to be in see the ratio we'll think maintain over versus But And continue leverage those know, We in when announced has announce is then to appropriate. as you our things, been about. price,

from Casella last The today with question JPMorgan. comes Carla

any the versus at just away-from-home sales of curious like softer is that channel away-from-home, we've channel, look coming improvement, the we sales. grocery if your by if that grown, has on as your curious, any just have just been of than better I'm is but [indiscernible] I'm of mix. margin looks it even versus in your driver expected, margins

Pat. say Carla, the I comes productivity supply from margin this initiatives. our improvement chain really is would

in think benefits we're the this see to that particular, And we starting so of the in quarter, procurement.

I necessarily is don't channel think there. margin that So in any change mix driving

service relatively And small. Yes. is food

pickles, et business, couple But I mostly a really where to categories, is a of we that retail have expect a service food segment. continue. relevant we're and cetera, grocery We think

sorry, dollar supply of the Okay. savings give And you did quarter? the impact I'm fourth for expected chain

was million. No, bridge. look there [ a out, net gross ] But I at And don't I our when this got quarter as we of we of you we that. think think million like $XX specifically looked quantified felt $XX we

So do that basis. on to we to on needed I like track gross we're we what think do feel

now Oakland question-and-answer would session. conference the I our closing turn like to Steve to back over for concludes This remarks.

person great Well, like thank you to back we'll for being together be I'd thank your I'd to And questions. with for Have hopefully, a you like soon. us all today. day. in

call. This concludes today's conference

You may now disconnect.