Financial Data and Key Metrics Changes - The company achieved adjusted net sales within guidance range, with adjusted EBITDA exceeding the upper end of guidance by approximately $6 million due to planned expense shifts [4][5] - Adjusted net sales decreased by approximately 3% year over year, while adjusted EBITDA increased by 25% to $57.5 million, resulting in an adjusted EBITDA margin of 7.2%, up 160 basis points from the previous year [15][16] Business Line Data and Key Metrics Changes - The decline in volume and mix was attributed to planned margin management actions, service impacts from the griddle facility restoration, and slower takeaway later in the quarter [16] - The acquisition of Harris Teas contributed nearly 5% to sales, while pricing adjustments provided a benefit of approximately 1% [16][17] Market Data and Key Metrics Changes - Private brand unit sales were slightly negative in the quarter due to consumer pressure and the timing of the Easter holiday, but categories showed some recovery in April [8][9] - The private brand industry dynamics remain favorable, with healthy price gaps allowing private brands to gain market share in a lower consumption environment [9][10] Company Strategy and Development Direction - The company is focused on strengthening its supply chain, margin management initiatives, and restoring production levels in key categories while pursuing profitable new business opportunities [22] - Strategic decisions have been made to streamline operations, including reducing management layers and consolidating divisions to enhance efficiency and decision-making [13][14] Management Comments on Operating Environment and Future Outlook - The operating environment is more dynamic than anticipated, but the company is committed to controlling its operations and executing plans to drive profits and cash flow [5] - The full-year adjusted net sales guidance is reiterated at a decline of 1% to growth of 1%, with expectations of a mid-single-digit decline in organic volume and mix for the second quarter [19][21] Other Important Information - The company has visibility to deliver $250 million in gross supply chain savings through 2027, with significant recent success in procurement [12] - The company is focused on maintaining a balance sheet that supports its net debt to adjusted EBITDA ratio, aiming for a target range of 3% to 3.5% [52][53] Q&A Session Summary Question: How is macro uncertainty affecting consumer demand for private label? - Management noted that any shift towards private label would be upside in their numbers, as consumers are seeking value and the quality and price gaps for private labels are favorable [27][28] Question: What should be expected regarding margin management activity? - Management indicated that organic volume and mix are expected to decline about 1% for the full year, with margin management actions impacting the top line [30][31] Question: How are decisions made regarding bids that do not meet margin targets? - Management explained that the focus is on aligning capacity with customer needs, streamlining product offerings, and enhancing operational efficiency rather than being pressured by retailers [37][38] Question: What are the thoughts on snacking categories and their performance? - Management acknowledged some pressure in snacking categories but noted that consumers are still snacking, with expectations for improvement in the back half of the year due to seasonality and recovery of the griddle plant [42][45] Question: How is the refill of the griddle pipeline progressing? - Management reported that all lines are running and while it will take time to fill the customer pipeline, they expect benefits to materialize in the second half of the year [49][50] Question: What is the focus regarding capital allocation and leverage goals? - Management confirmed that the target leverage remains at 3% to 3.5%, with plans to rebuild cash positions and reevaluate options for capital deployment later in the year [52][53]