Thanks, good and Tom, morning, everyone.
noted, our Tom fell well targets. and sales performance short our As of earnings
back our financial XXXX. focused are Our results fiscal in team track on members getting on operations and
our begin by year, reviewing provide let's for our results. quarter upcoming I fourth Before the outlook
Volume million to Sales than X% $XX price/mix more or and X% increased billion. declined $X.XX declined X%.
As it the couple decline reflects in points decline losses, higher-than-estimated of and more in nearly as our percentage losses. points of share the in relates lower-priced by of well a EMEA to driven part year. exit the anticipated to and we originally than lower-margin The was impact certain share is as volume, X decision earlier what business
rates third were transition, respect issues the With affected order quarter. that the contained we ERP quarter and in temporary fill our experienced to that
X decline related unexpected flows and about a throughout more points the America levels North have which international restaurant and to markets, our than and point was traffic loss remaining key warehouse of referenced, the had X to related points volume system. We we about trends of Tom bit withdrawal X-point product X inventory that soft expected. many in healthy the The reflected voluntary
reflecting price benefit price/mix, fiscal as largely well forecast investments mix few our actions well demand our in for pricing taken Price/mix was both as carryover in a our XXXX below taken unfavorable points customer was to in America. business targeted The increased increased of versus the products in increase North This across as segments. actions pricing X%, inflation-driven as late of however, in XXXX expectations. fiscal due value-based as
was Idaho. withdrawal. primarily benefit profit pricing expense from increase million voluntary due $XXX product million by that primarily higher was $XX which to capacity China carryover decline million. costs, of driven The to expansions $X in manufacturing on lower an driven cost declined About adjusted offset Moving largely inflation. and our with $XX volume remaining million by actions was our associated and in sales, of depreciation $XX input gross our mid-single-digit the million The
about points was well reflected margin share XX%. mix which was in we made in customers below price of our XXX impact from America XXX XXX Our to the withdrawal. our gross basis product Of of roughly that about related the points shortfall, target points the North basis The voluntary about segment. the investments the remaining unfavorable was losses quarter basis in higher-margin higher-priced, greater-than-expected largely as XX%, as
investments information $X our expense, to offset higher support compensation incremental advertising of and declined ERP more reflecting higher noncash retail million, to of promotion lower $XXX performance-based system. $X and million million SG&A to products launch with new amortization investments, which Adjusted expenses EMEA, in the associated technology related than
to $XX fourth the efforts. performance-based million about due SG&A other midpoint Our in our of was of largely approximately savings lower compensation below cost target quarter million, $XXX the and expense quarter
million, our EBITDA the this down which and as That's lower year prior to the gross decline is of versus than adjusted All in of SG&A. million of approximately led the offset sales more $XXX $XXX $XX is quarter. profit that EBITDA quarter due midpoint the in shortfall fourth late product about target the below half $XX of million to million. voluntary About of withdrawal
largely targeted partially our The segment, and in SG&A other our is and lower-than-expected trade favorable by support investments due in unfavorable price half forecast. volume, with North mix, compared to America offset
the in in taken which regional losses Price/mix segments. ago in of year to soft as about XXXX, driven all period, chain with in for late X% pricing to to with Mexico, pricing inflation-driven in fiscal sales actions by to customers contracts declined benefit X points $XX carryover in share Moving about and Compared U.S., well sales Volume related customers X%, and America the taken related restaurant restaurant includes increased X% Canada, and North or segment, the the XXXX. quarter. X% actions our our as with traffic declined the million in large U.S. channels
combination remainder a the than million mix, of cost an as Unfavorable the the The approximately to offsetting customers unfavorable higher-margin increase volumes, primarily due product per related price/mix. million charge share of as adjusted due The $XX to $XX of tempered lower withdrawal. well investments pound, prior mix more to price EBITDA or benefit X% voluntary targeted declined North in America and sales in higher to million largely actions. segment's reflects $XXX pricing losses
certain outside $XX nearly channels X North million from in earlier lower-margin of X% year. are sales with business in share segment, customers in and percentage EMEA decisions to or includes which the exit X%. part due declined Sales America, to all points our losses, Volume which to International in lower-priced declined in
be will We XXXX. fiscal headwind through expect first these to exits half continue strategic of the a
roughly of X points the quarter withdrawal, soft in X restaurant key volume international remaining while product than decline markets. voluntary the reflected More in trends the reflects the points traffic
earlier Price/mix primarily in of the fiscal taken increased X%, taken inflation-driven as actions driven XXXX in XXXX. by well pricing carryover actions fiscal pricing benefit as
or million The decline higher promotional product $XX higher decline segment's withdrawal. the remainder launch partially actions. to of million was EBITDA adjusted investments pound, to lower that by of to International Our that $XX XX% of in $XX declined offset was and the driven advertising million. EMEA voluntary and per prior cost About pricing retail benefit the sales volume, of support and products related by
liquidity our position to and Moving flow. cash
Our the the debt nearly third ratio and balance our ended quarter leverage sheet end to We billion. of debt X.Xx of EBITDA, declined our compared fiscal about as net million with remains strong. net adjusted quarter $X.XX to $XX
continue new have global available liquidity, ample billion We to nearly a $X.X revolving facility. including credit for
we about prior from the year. million versus cash is operations, of generated million up year, about the $XXX For which $XX
forward-looking investments. requires before, discussed driving we As long-term growth the strategic, right, making and
to invest our our customer position and of our to needs and financial overall in business. efficiencies business support for that well ideal our resilience critical people unlock strength The us the as assets and as put areas our modernize in
to about more Falls, this the reflecting investments, year, allowed $XXX million prior expenditures China Idaho. to year million capital strategic in largely $XXX about us in spend and This American complete than facilities or
capacity system. ERP new ongoing Argentina, expansion and projects the Our Netherlands our in and
our of strength with and repurchases, dividends. confidence includes we consistent the of million during $XX and through fourth dividends share and quarter capital our $XXX in cash business. our shareholders returned million This to our share repurchases $XXX the This sheet the in Finally, reflects including allocation year. balance million in our in million $XXX priorities,
XXXX fiscal our to turning Now outlook.
that expect consumers pressured to a continue they will challenging, economic we more that with be in intentional will year the As be dollars operating Tom and this environment discussed, spend landscape. the
fry XXXX, in trade channels growth volume and restaurant support higher-than-normal and make investments expect for We and we demand capacity in some product in price traffic that that and soft share. result industry targeted may and types will available fiscal to selected
evaluating drive we're addition, productivity, and expenses. chain aggressively based production supply to operating on actions shipments, opportunities reduced In lower implementing balanced and
expect of $X.X $X.X year, billion a to Specifically we on of the sales be largely growth constant driven will we're X% This volume. for currency basis. targeting billion by which to implies X%,
that of at of that of experience to second, other anticipate restaurant activity, continue will first, half factors: and of to as chains traffic soft during decline will the least service half impact the inflation the the share quick as impact primarily as we However, due year efforts we'll to years promotional despite and first increased price first the X volume expect to year, remain to recent casual continues for adjust the dining by traffic losses; of through we the well menu consumer cumulative economic headwinds. improve
During we and increasingly withdrawal, as lost and our year in markets, the XXXX. wins we increase share volume U.S. prior the benefit transition the half of some ERP the to customer of in impacts lap the and contract expect second from key the product market year, fiscal international voluntary recent recapture we of
aggregate. targeting price/mix In decline. price/mix fiscal the in In to we America, expect North to meaningful contribution don't from a come XXXX, we're
the progresses higher-priced, lost in we drive as higher-margin channels. in share expect as recapture to We mix year improvements
demand price the mix due targeted investments the by soft share across and growth drive volume sales believe support to be benefits to environment, will more than However, and trade we growth offset the channels. in
be will In we cost actions possible when the look input to a below-average inflation, which customer contracts, Europe. by offset largely anticipate the of pricing in international, to crop terms drive we'll under driven
begin to addition, price mix. and to growth we'll management In revenue tools improve our our architectures manage gradually leverage
targeted and new and anticipate investments in and in However, market may business. markets certain protect that the to price tempered price/mix trade by increase win we share be channels support in
expect For EBITDA to $X.XX adjusted $X.XX billion billion. earnings, of we
support back in $X.XX investments and target year, adjusted targeted share, North to our EMEA. targeting of versus $XX SG&A million largely we're returning related per which ERP levels, $XX system, promotional of an an $XXX million For advertising both to includes prior million noncash our brands $XXX and This $X.XX. America expense to is $XX diluted and an of performance-based reflecting up new million, incremental retail earnings million incremental to the to compensation amortization
expenses items, due aggressive down our SG&A are X adjusted to cost Excluding management. these
As discussed, implement to cost actions. continuing I savings previously evaluate and additional we're
in depreciation $XX Idaho, of the of is in We're an of million in expansions system, cost with of reflects the expense remainder and is our primarily increase increase and capacity recorded China, the Netherlands. the total the depreciation and $XX sales SG&A. The $XXX the incremental included of increase targeting amortization million. amortization ERP is which of which About largely million, of associated
For interest and full tax XX%, average last That's rate We're higher a is rate. interest. similar approximately capitalized year $XX to reflecting an year's about levels which expense, increase $XXX we're of forecasting of debt million, forecasting lower about effective million.
Finally, we the expansion efforts previously Netherlands we're expansion mid-calendar in $XXX approximately of targeting targeted continue announced Netherlands and as calendar is to the of currently by cash to the use the end be in Argentina. for while million XXXX, our capital We Argentina the of completed XXXX. capacity be operational construction expenditures expect in
as addition, expenditures the expect production the In capital rephasing we're XXXX, fiscal end a fiscal forecasted capacity expenditures by Since XXXX. this match That said, year's completed capabilities future expansions will our notable at of Tom environment. mentioned, to better be we anticipate more X than in looking are large investments XX% decrease we modernize capital to demand in capital committed. of
rates Because our our below change environment fiscal fiscal of baseline. are normalized the XXXX operating XXXX rapid in growth the
of algorithm of the fiscal X% As our a That rate XXXX. impact fiscal XXXX low the low at digits. in after for outlook normalized of long-term ERP adjusting transition end growth to it is sales, to our mid-single rate X% relates implies growth growth estimated of to the
normalized about $XXX is EBITDA XXXX fiscal adjusted $X.X target XXXX baseline fiscal million, about of our for below Our billion.
retain of North of customers, to impact lost markets investments new win trade support withdrawal. in unfavorable input in reflects an America, pricing higher-priced, of and inflation, to sufficient decline that associated to implement customers and higher-margin challenges share offset targeted product $XX carryover price in with first cost or channels XXXX fiscal and speaking, million $XX Broadly million loss estimated mix certain quarter from additional the in estimated voluntary the an to
provide turn on to quarter. Before the over back some to I Tom, I first want call the thoughts
expectations While on recent and provide in quarterly changes our more environment, we the expected for guidance, quarter. the headwinds given providing our typically results, the operating don't we're the detail
we're quarter, to first the the traffic, in the due impact volume soft down Specifically sales with restaurant mid-single share and digits to down carryover single mid- digits, be high targeting withdrawal. to voluntary of product losses,
the the believe We and impact traffic of quarter in ease greatest losses soft as year first and be that the progresses. share will the gradually
We America. in pricing impact may are fiscal by the in trade unfavorable than taken and of North digits more low to down expect the investments of support be and as offset price actions mix price/mix mid-single benefit carryover XXXX in targeted
For to be do margin seasonality additional expect the typical due the we our the We losses related not $XX beyond our year quarter. withdrawal be expect earnings, mentioned of voluntary $XX that EBITDA associated with product to loss first to million I estimated earlier. to and withdrawal the lowest product the million the to
investments expect support. pressured quarter first and trade by per unfavorable mix, and higher also cost be in our We pound, will price margin
to some closing Let me Tom back now it comments. turn for over
