Financial Data and Key Metrics Changes - Net sales increased by 1.5% year-over-year, with a price mix decline of 1.2% primarily related to the retail business [19] - Volume declined by 2.4%, largely due to decreases in traditional loaf bread, partially offset by improvements in branded cake, organic, and keto volumes [19] - Gross margin as a percentage of sales decreased by 110 basis points to 48.8% compared to the same quarter last year [20] - GAAP diluted EPS for the quarter was $0.28, a decrease of $0.04 from the prior year period [21] - Adjusted diluted EPS decreased by $0.06 to $0.30 [21] Business Line Data and Key Metrics Changes - Branded retail products accounted for 67% of sales in the quarter, up from 64% a year ago [3] - Bread sales volumes declined by 3%, while differentiated products like organic and keto saw sales increases of 3% and 4% respectively [4][5] - The Simple Mills acquisition contributed $61.4 million in net sales and $10.9 million to adjusted EBITDA [21] Market Data and Key Metrics Changes - The bread category underperformed the general food category, with volumes declining by 3% compared to a 1% decline in food overall [4] - Traditional loaf products saw a significant decline of 6% [4] - The competitive environment has intensified, particularly affecting the traditional loaf segment, which experienced a 7.9% decline in sales in the second quarter [30] Company Strategy and Development Direction - The company is focusing on innovation and acquisitions to align with consumer demand, particularly in higher-margin branded retail products [3][6] - Plans to leverage strong brands to expand into adjacent categories and capitalize on growth opportunities in differentiated products [5][6] - The company aims to maximize near-term results while supporting long-term growth through strategic initiatives [7][31] Management's Comments on Operating Environment and Future Outlook - The management noted persistent inflationary pressures impacting consumer confidence and purchasing behavior [26] - Expectations for 2025 results have been adjusted due to challenges in the traditional loaf category and increased competitive pressure [4][22] - The company remains confident in its financial position and anticipates benefits from shelf space gains and cost-saving initiatives in the second half of the year [23] Other Important Information - The integration of Simple Mills is progressing well, with strong performance in the natural cookies and crackers segments [16][18] - The company is implementing additional savings initiatives to offset top-line pressure and improve margins [15] - The company continues to focus on enhancing trade promotion capabilities and monitoring promotional spending [30] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.