Financial Data and Key Metrics Changes - Adjusted net sales increased by 1.4% year over year, reaching approximately $3.36 billion to $3.415 billion for the full year [15][20] - Adjusted EBITDA was $73.3 million, up about 4% year over year, with an adjusted EBITDA margin rising by 20 basis points to 9.1% [15][16] - The company anticipates a full year adjusted EBITDA guidance range of $345 million to $375 million [20] Business Line Data and Key Metrics Changes - The acquisition of Harris Teas contributed nearly 5% to net sales, while pricing adjustments provided a benefit of approximately 4% [16] - Volume and mix negatively impacted adjusted EBITDA by $1.1 million, primarily due to planned margin management actions [17] - Operations and Supply Chain delivered a benefit of $10.6 million year over year, driven by cost savings and improved execution [17] Market Data and Key Metrics Changes - The private brand industry dynamics remain favorable, with private brands maintaining or gaining market share despite a lower consumption environment [7][9] - The current level of national brand promotion is below pre-pandemic levels, with expectations of increased promotional intensity in certain categories [8][9] Company Strategy and Development Direction - The company is focused on margin improvement and cost control, with a commitment to $250 million in gross supply chain savings through 2027 [11][12] - Strategic decisions include closing two plants to optimize the network within the pickles and cookies businesses, enhancing competitive positioning [14] - The company aims to leverage its supply chain initiatives and improved service levels to pursue profitable new business opportunities [21] Management's Comments on Operating Environment and Future Outlook - The operating environment is dynamic, but the company is focused on executing plans to drive profits and cash flow [5][6] - Management expects unit volumes to improve in the fourth quarter, with pricing dynamics continuing to support growth [7][21] - The company anticipates organic volume and mix to decline by high single digits in the third quarter, with a recovery expected in the fourth quarter [21][60] Other Important Information - The company is committed to maintaining a disciplined capital allocation strategy, focusing on organic and inorganic investments that enhance shareholder returns [18] - The company is monitoring tariff policies and their potential impacts on operations and pricing [20] Q&A Session Summary Question: Competitive environment and private label performance - Management noted that private label pricing increases were similar to branded units, and they performed well in four of their top five categories [25][30] Question: Innovation and its impact on private label - Management emphasized that private label acts as a fast follower in innovation, leveraging trends established by branded products [40][42] Question: Ground coffee demand and pricing - Management confirmed strong demand for ground coffee and noted that private label would benefit from lower price points due to tariff impacts [51][55] Question: Broth market share recovery - Management reported improved service levels in the broth category and anticipated regaining market share as production stabilizes [56][57] Question: Expectations for organic volume decline - Management indicated that underlying consumer trends are expected to remain steady, with some tailwinds from recovering production [60][62] Question: Gross margin evolution - Management expects gross margin to remain flat in Q3, with improvements anticipated in Q4 as efficiencies and cost savings materialize [83][84]

Financial Data and Key Metrics Changes - The company achieved adjusted net sales down approximately 3% year over year, with adjusted EBITDA of $57,500,000, which was up 25% year over year [17] - Adjusted EBITDA margin was 7.2%, an increase of 160 basis points compared to the previous year [18] - Adjusted EBITDA benefited from a $6,000,000 timing shift of expenses from Q1 to Q2 [4][23] Business Line Data and Key Metrics Changes - The decline in volume and mix was attributed to planned margin management actions, service impacts from the restoration of the griddle facility, and slower takeaway later in the quarter [18] - The acquisition of Harris Teas contributed nearly 5% to sales, aligning with expectations [18] - Pricing adjustments provided a benefit of approximately 1% primarily in the coffee business [18] Market Data and Key Metrics Changes - Private brand unit sales were slightly negative in the quarter due to consumer pressure and the Easter holiday shift, but categories showed some recovery in April [9] - The private brand industry dynamics remain favorable, with healthy price gaps and continued market share gains over national brands [10] Company Strategy and Development Direction - The company is focused on margin improvement plans and controlling operational factors to drive profits and cash flow [5] - Strategic investments in private brands are being made by grocery retailers, indicating growth opportunities for the company [11] - The company aims to deliver $250,000,000 in gross supply chain savings through 2027, with a focus on profitability and cash flow [13] Management's Comments on Operating Environment and Future Outlook - The operating environment is more dynamic than anticipated, but the company is focused on executing plans to drive profits [5] - Management expressed confidence in the potential upside from private label growth due to consumer demand for value [30] - The company reiterated its full-year adjusted net sales guidance of a decline of 1% to growth of 1% year over year [22] Other Important Information - The company is managing its cost structure by streamlining operations and reducing management layers to enhance decision-making [14] - The decision to close the new Hampton facility is part of a strategy to optimize production efficiency [15] 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 considered upside in their sales guidance, as consumers are seeking value [30] Question: What is the expected impact of margin management actions on the full year? - Management indicated that organic volume and mix are expected to decline about 1% for the full year, with margin management actions impacting this [33] Question: How are decisions made regarding bids that do not meet margin targets? - Management clarified that the focus is on aligning production capacity with customer needs rather than being pressured by retailers for lower prices [39] Question: What are the expectations for snacking categories in the current environment? - Management acknowledged some pressure in snacking categories but noted that consumers are still snacking, with expectations for recovery in the back half of the year [46] Question: How is the refill of the griddle pipeline progressing? - Management reported that all lines are running and that the benefits from the griddle pipeline will be realized in the second half of the year [54] Question: What is the company's target for leverage and its impact on share repurchases? - Management confirmed that the target remains at 3% to 3.5%, with plans to rebuild cash position before reevaluating share repurchase options [57]