藍威斯頓 (LW) 2023 Q2 法說會逐字稿

Good day, and welcome to The Lamb Weston Second Quarter Earnings Call. Todays' conference is being recorded. At this time, I would like to turn the conference over to Dexter Congbalay. Please go ahead.

美好的一天，歡迎來到 Lamb Weston 第二季度財報電話會議。今天的會議正在錄製中。此時，我想將會議轉交給 Dexter Congbalay。請繼續。

Good morning and thank you for joining us for Lamb Weston's Second Quarter 2023 Earnings Call. This morning, we issued our earnings press release, which is available on our website, lambweston.com. Please note that during our remarks, we'll make some forward-looking statements about the company's expected performance that are based on how we see things today. Actual results may differ materially due to risks and uncertainties.

早上好，感謝您加入我們的 Lamb Weston 2023 年第二季度財報電話會議。今天上午，我們發布了收益新聞稿，可在我們的網站 lambweston.com 上獲取。請注意，在我們的評論中，我們將根據我們今天的看法對公司的預期業績做出一些前瞻性陳述。由於風險和不確定性，實際結果可能存在重大差異。

Please refer to the cautionary statements and risk factors contained in our SEC filings for more details on our forward-looking statements. Some of today's remarks include non-GAAP financial measures. These non-GAAP financial measures should not be considered a replacement for and should be read together with our GAAP results. You can find the GAAP to non-GAAP reconciliations in our earnings release.

請參閱我們提交給美國證券交易委員會的文件中包含的警示性聲明和風險因素，以了解有關我們前瞻性聲明的更多詳細信息。今天的一些評論包括非 GAAP 財務措施。這些非 GAAP 財務指標不應被視為替代，應與我們的 GAAP 結果一起閱讀。您可以在我們的收益發布中找到 GAAP 與非 GAAP 對賬。

With me today are Tom Werner, our President and Chief Executive Officer; and Bernadette Madarieta, our Chief Financial Officer. Tom will provide an overview of the current operating environment while Bernadette will provide details on our second quarter results and our updated fiscal 2023 outlook. With that, let me now turn the call over to Tom.

今天和我在一起的是我們的總裁兼首席執行官湯姆·維爾納 (Tom Werner)；和我們的首席財務官 Bernadette Madarieta。 Tom 將概述當前的運營環境，而 Bernadette 將提供有關我們第二季度業績的詳細信息以及我們更新的 2023 財年展望。有了這個，現在讓我把電話轉給湯姆。

Thank you, Dexter. Good morning. Happy New Year and thank you for joining our call today. We're pleased with our financial performance in the second quarter as we continue to drive strong sales and earnings growth across each of our core segments. Our results reflect the successful execution of our strategies to counter the significant input cost inflation over the past couple of years through a combination of pricing actions, improving business and product mix, and adapting our manufacturing and supply chain to global challenges.

謝謝你，德克斯特。早上好。新年快樂，感謝您今天加入我們的電話會議。我們對第二季度的財務業績感到滿意，因為我們繼續推動每個核心部門的強勁銷售和盈利增長。我們的結果反映了我們通過定價行動、改善業務和產品組合以及調整我們的製造和供應鏈以應對全球挑戰來應對過去幾年顯著的投入成本通脹的戰略的成功執行。

Specifically, we delivered sales of nearly $1.3 billion, a record high quarter, healthy gross margins in each of our core business segments and strong earnings, EBITDA and earnings per share growth. Because of our first half results and confidence in our business momentum, we've increased our sales, gross margin and earnings targets for fiscal 2023.

具體而言，我們實現了近 13 億美元的銷售額，創歷史新高的季度，每個核心業務部門的毛利率都穩健，收益、EBITDA 和每股收益增長強勁。由於我們上半年的業績和對我們業務勢頭的信心，我們提高了 2023 財年的銷售額、毛利率和盈利目標。

I'm proud of our performance in the first half of the year and how the entire Lamb Weston team continues to focus on serving our customers and driving sustainable, profitable growth. Before turning the call over to Bernadette, let me first provide some quick updates on the current operating environment. First, overall French fry demand in the U.S. remained solid, although the total restaurant traffic remains below pre-pandemic levels. It's up versus the prior year quarter, and trends are up sequentially off the lows we saw in the summer as gasoline prices spiked.

我為我們上半年的表現以及整個 Lamb Weston 團隊如何繼續專注於服務我們的客戶和推動可持續的盈利增長感到自豪。在將電話轉給 Bernadette 之前，讓我首先提供一些有關當前操作環境的快速更新。首先，儘管餐廳總客流量仍低於大流行前水平，但美國對炸薯條的整體需求依然強勁。與去年同期相比有所上升，並且隨著汽油價格飆升，趨勢從我們在夏季看到的低點連續上升。

Demand and traffic trends in the quarter varied by channel as consumers reacted to broad-based inflation and the threat of a recession. QSR traffic was up versus the prior year, and trends improved sequentially versus our fiscal first quarter as consumers adjusted to less expensive dining options. As expected, casual dining and full-service restaurant traffic in the quarter was down versus the prior year, although trends also improved sequentially versus our fiscal first quarter.

由於消費者對廣泛的通脹和經濟衰退的威脅做出反應，本季度的需求和流量趨勢因渠道而異。 QSR 流量與上一年相比有所增加，隨著消費者適應更便宜的餐飲選擇，趨勢與我們第一財季相比有所改善。正如預期的那樣，本季度休閒餐飲和全方位服務餐廳的客流量與去年同期相比有所下降，但與我們的第一財季相比趨勢也有所改善。

This year-over-year decline in casual dining and full-service restaurant traffic had a more pronounced effect on our Foodservice segment, which has a greater exposure to these sales channels and contributed in part to a decline in the segment's volume. The fry-attachment rate, which is the rate at which consumers order fries when visiting a restaurant or other Foodservice outlets, remained above pre-pandemic levels. The attachment rate in QSRs actually increased versus the prior year quarter which helped stabilize fry demand.

休閒餐飲和全方位服務餐廳流量的同比下降對我們的餐飲服務部門產生了更明顯的影響，該部門對這些銷售渠道的敞口更大，並在一定程度上導致了該部門銷量的下降。薯條附著率，即消費者在光顧餐廳或其他餐飲服務網點時點薯條的比率，仍高於大流行前的水平。 QSR 的附著率實際上比去年同期有所增加，這有助於穩定魚苗需求。

Overall, we feel good about how the category and away-from-home channels is performing in this difficult macro environment but expect restaurant traffic demand trends will continue to be volatile through fiscal 2023. In contrast, retail fry demand remained solid in the quarter. It's been strong since the start of the pandemic as consumers pull back spending on dining out. Demand for our retail products sold under licensed restaurant brands, in particular, remained strong over the past year as consumers look to have the restaurant-style fries they love while at home.

總體而言，我們對類別和離家渠道在這種艱難的宏觀環境中的表現感到滿意，但預計餐廳客流量需求趨勢將在 2023 財年繼續波動。相比之下，零售油炸食品需求在本季度保持穩定。自大流行開始以來，隨著消費者減少外出就餐支出，這種情況一直很強勁。特別是在過去一年中，對我們以特許餐廳品牌銷售的零售產品的需求依然強勁，因為消費者希望在家中享用他們喜愛的餐廳式薯條。

While fry demand across all our channels is holding up well, we continue to struggle to meet that demand due to the impact of supply-chain disruptions on run rate and throughput in our production facilities. Over the past year, these disruptions have been largely related to the impact of shortages in certain commodities, such as starches and edible oils as well as factory worker shortages and availability.

雖然我們所有渠道的魚苗需求都保持良好，但由於供應鏈中斷對我們生產設施的運行率和吞吐量的影響，我們繼續努力滿足這一需求。在過去的一年裡，這些中斷在很大程度上與某些商品短缺的影響有關，例如澱粉和食用油，以及工廠工人短缺和可用性。

The availability of key commodities has slowly improved over the past couple of quarters as we broaden our supplier base and qualified substitute ingredients when possible. Yet it remains a concern, and we expect it will continue to affect our production volumes at least through the remainder of fiscal 2023. The availability of production team members has also steadily improved over the past couple of quarters, such that we're back to having staffing levels in most of our processing facilities at desired levels.

在過去的幾個季度中，隨著我們擴大供應商基礎並在可能的情況下使用合格的替代原料，關鍵商品的供應情況緩慢改善。然而，這仍然是一個問題，我們預計它將至少在 2023 財年剩餘時間內繼續影響我們的產量。生產團隊成員的可用性在過去幾個季度也穩步提高，因此我們回到了我們大多數加工設施的人員配置水平都達到了預期水平。

However, run rate and throughput constraints will continue until our newly hired colleagues gain experience to optimize production. We've also experienced production constraints after adjusting operating procedures to reflect changes in product mix and consumer demand, including higher demand for retail fries, premium fries and batter-coated products. These products generally carry favorable margins. For example, to produce batter-coated fries, which is a high-growth and high-margin segment of the category, we typically run our lines at slower speeds, and we're producing uncoated straight cut fries. This results in reduced throughput. We also require more frequent and longer downtimes to clean and [sanitizing] lines between production runs when batter is used, which affects our run rates and line availability.

但是，在我們新聘用的同事獲得優化生產的經驗之前，運行率和吞吐量限制將繼續存在。在調整操作程序以反映產品組合和消費者需求的變化後，我們還遇到了生產限制，包括對零售薯條、優質薯條和麵糊塗層產品的更高需求。這些產品通常具有可觀的利潤率。例如，為了生產麵糊塗層薯條，這是該類別中的高增長和高利潤部分，我們通常以較慢的速度運行我們的生產線，並且我們正在生產未塗層的直切薯條。這導致吞吐量降低。當使用麵糊時，我們還需要更頻繁和更長的停機時間來清潔和[消毒]生產運行之間的生產線，這會影響我們的運行率和生產線可用性。

Together, this results in fewer finished pounds produced relative to making uncoated fries, which ultimately leads to pressure on our customer order fill rates. In short, we expect the impacts of ongoing commodity shortages, the onboarding of recently hired production team members and adjustments to optimize business mix to continue to pressure volume performance, and our ability to meet customer demand through the remainder of fiscal 2023 and until our capacity investments in China, Idaho and Argentina become available over the next couple of years.

總之，這導致相對於製作無塗層薯條的成品磅數減少，最終導致我們的客戶訂單履行率受到壓力。簡而言之，我們預計持續商品短缺的影響、最近僱用的生產團隊成員的入職以及為優化業務組合而進行的調整將繼續給銷量表現帶來壓力，以及我們在 2023 財年剩餘時間內滿足客戶需求的能力，直到我們的產能未來幾年，中國、愛達荷州和阿根廷的投資將成為可能。

With respect to pricing, we continue to drive pricing actions across our portfolio to counter input cost inflation. The environment remains generally favorable as a result of the solid category demand that I just described, coupled with constrained industry supply. Our Global segment led the way in the quarter with strong pricing through a combination of inflation-driven price escalators, new pricing structures for customer contract renewals, working with certain customers to accelerate pricing actions for contracts up for renewal in the coming years and improvements in customer mix.

在定價方面，我們繼續在我們的產品組合中推動定價行動，以應對投入成本通脹。由於我剛才描述的穩固品類需求，加上行業供應受限，環境總體上仍然有利。我們的全球部門在本季度以強勁的定價領先，通過結合通脹驅動的價格上漲、客戶合同續籤的新定價結構、與某些客戶合作加快未來幾年續簽合同的定價行動以及改進客戶組合。

We feel good about how Global's contract renewal negotiations played out this past year and expect this segment to continue to deliver strong price/mix growth as more of these updated pricing structures take effect in the second half. We also expect to drive solid price growth in both, the Foodservice and Retail segments in the second half of the year. Although the growth rate should decelerate as we begin to lap some of the pricing actions, we took in fiscal 2022. With respect to the potato crop, we've been processing potatoes from this year's harvest for the past few months and continue to assess the overall quality of the potatoes in our key growing regions, including shape, color, level of defects and solid content as consistent with historical averages.

我們對 Global 的合同續簽談判在過去一年中的表現感到滿意，並預計隨著更多更新後的定價結構在下半年生效，這一細分市場將繼續實現強勁的價格/組合增長。我們還預計在今年下半年推動餐飲服務和零售領域的價格穩步增長。儘管隨著我們開始採取一些定價行動，增長率應該會放緩，但我們在 2022 財年採取了行動。關於馬鈴薯作物，過去幾個月我們一直在加工今年收穫的馬鈴薯，並繼續評估我們主要種植區的馬鈴薯整體質量，包括形狀、顏色、缺陷水平和固體含量與歷史平均水平一致。

Yields, however, are below historical averages and below the preliminary assessment that we provided during our earnings call in October. To fill our production needs, we have secured additional potatoes in the Columbia Basin and Idaho and are sourcing potatoes from other regions in North America, including the East Coast. This will add to our potato costs for the remainder of fiscal 2023, and we have included the estimated impact in our updated financial targets for the year.

然而，收益率低於歷史平均水平，也低於我們在 10 月份的財報電話會議上提供的初步評估。為了滿足我們的生產需求，我們在哥倫比亞盆地和愛達荷州獲得了更多的馬鈴薯，並從北美其他地區（包括東海岸）採購馬鈴薯。這將增加我們 2023 財年剩餘時間的馬鈴薯成本，我們已將估計影響納入我們今年更新的財務目標。

With respect to next year's potato crop, we've agreed to nearly a 20% increase in contract prices for potatoes grown in the Columbia Basin and have secured the targeted number of acres to be planted. Our discussions with growers in Idaho and Alberta on price and acreage are ongoing. Now with respect to our acquisition of our partner's interest in Lamb Weston/Meijer, we expect the transaction will close during our fiscal fourth quarter after completing the regulatory review process. I'm excited about welcoming 1,500 value team members and beginning to capture strategic, commercial and operational benefits from the transaction, including, first, strengthening our global manufacturing footprint by leveraging Europe's low-cost infrastructure to serve key markets around the world as well as adopting best-in-class manufacturing practices to increase efficiency, improve quality and reduce costs.

關於明年的馬鈴薯作物，我們已同意將哥倫比亞盆地種植的馬鈴薯的合同價格提高近 20%，並確保了種植的目標英畝數。我們正在與愛達荷州和艾伯塔省的種植者就價格和種植面積進行討論。現在，關於我們收購合作夥伴在 Lamb Weston/Meijer 的權益，我們預計該交易將在完成監管審查程序後的第四財季完成。我很高興迎來 1,500 名價值團隊成員，並開始從交易中獲得戰略、商業和運營利益，包括首先通過利用歐洲的低成本基礎設施服務全球主要市場來加強我們的全球製造足跡，以及採用一流的製造實踐來提高效率、提高質量並降低成本。

Second, enhancing our customer-centric operating model by offering a single voice to our global customers and seamlessly supporting multinational customers with a truly global supply chain. Third, improving our position to further capitalize on growth opportunities in Europe, the Middle East and Africa. And fourth, pursuing our global growth strategies without the operating restrictions associated with the joint venture. So in summary, we drove strong sales and earnings growth in the second quarter and in the first half by executing on our strategies to price the counter inflation, improve mix, generate productivity savings and drive value for our customers.

其次，通過為我們的全球客戶提供單一的聲音並通過真正的全球供應鏈無縫支持跨國客戶來增強我們以客戶為中心的運營模式。第三，提高我們的地位，進一步利用歐洲、中東和非洲的增長機會。第四，在不受與合資企業相關的運營限制的情況下實施我們的全球增長戰略。因此，總而言之，我們通過執行我們的戰略來為反通貨膨脹定價、改善組合、節省生產力並為我們的客戶創造價值，從而在第二季度和上半年推動了強勁的銷售和盈利增長。

The category is healthy with solid overall demand behind strength in QSR traffic and constrained industry supply. The quality of the recently harvested potato crop in the Pacific Northwest is good, and the impact from the shortfall in yields is manageable. And finally, we're confident about the strategic, operational and commercial benefits at the Lamb Weston/Meijer transaction has to offer. And we look forward to the transaction closing later this year.

該品類健康，總體需求強勁，背後是快餐客流量強勁和行業供應受限。太平洋西北地區最近收穫的馬鈴薯作物質量良好，單產下降的影響是可控的。最後，我們對 Lamb Weston/Meijer 交易所帶來的戰略、運營和商業利益充滿信心。我們期待今年晚些時候完成交易。

Now let me turn the call over to Bernadette to review the details of our second quarter results and our updated fiscal 2023 outlook. Bernadette?

現在讓我把電話轉給伯納黛特，回顧我們第二季度業績的細節和我們更新的 2023 財年展望。伯納黛特？

Thanks, Tom, and good morning, everyone. As Tom said, we're pleased with our financial performance and operating momentum through the first half of the year, which has provided us with a strong foundation to raise our annual sales and earnings targets. Let me review our second quarter results before discussing our updated outlook.

謝謝，湯姆，大家早上好。正如湯姆所說，我們對今年上半年的財務業績和經營勢頭感到滿意，這為我們提高年度銷售和盈利目標奠定了堅實的基礎。在討論我們最新的展望之前，讓我回顧一下我們的第二季度業績。

Sales in the second quarter grew 27% to nearly $1.28 billion. That's a record for us. A 30% increase in price mix drove our sales growth as we continued to benefit from product and great pricing actions across each of our business segments. The increase reflects the carryover impact of product pricing actions that we initiated in fiscal 2022 as well as pricing actions that we began implementing during this fiscal year. The increase also reflects benefits from efforts to improve our portfolio mix. Sales volumes declined 3% as we continued to experience the supply-chain constraints and related shortfalls in order fulfillment that Tom described.

第二季度銷售額增長 27% 至近 12.8 億美元。這是我們的記錄。價格組合增加 30% 推動了我們的銷售增長，因為我們繼續受益於我們每個業務部門的產品和偉大的定價行動。這一增長反映了我們在 2022 財年啟動的產品定價行動以及我們在本財年開始實施的定價行動的結轉影響。這一增長還反映了我們努力改善投資組合所帶來的好處。銷量下降了 3%，因為我們繼續經歷 Tom 描述的供應鏈限制和相關的訂單履行不足。

This primarily affected volumes and service levels in our Foodservice and Retail segments. To a lesser extent, volumes in the quarter were also impacted by softer casual dining and full-service restaurant traffic as well as the timing of replacing losses of some low-margin business in our Foodservice and Retail segments.

這主要影響了我們的餐飲服務和零售部門的銷量和服務水平。在較小程度上，本季度的銷量也受到休閒餐飲和全方位服務餐廳客流量減少以及彌補我們餐飲服務和零售部門一些低利潤業務損失的時機的影響。

Gross profit in the quarter increased $176 million to $382 million, as a result of our sales growth and strong gross margin performance. Our margin expanded 950 basis points versus the prior year quarter and about 550 basis points sequentially to nearly 30%. Broadly speaking, pricing actions in each of our business segments, efforts to improve customer and product mix, and value created from our productivity programs have caught up to the cumulative effect of input and transportation cost inflation over the past couple of years.

由於我們的銷售增長和強勁的毛利率表現，本季度的毛利潤增加了 1.76 億美元，達到 3.82 億美元。我們的利潤率比去年同期擴大了 950 個基點，環比擴大了約 550 個基點，達到近 30%。從廣義上講，我們每個業務部門的定價行動、改善客戶和產品組合的努力，以及我們的生產力計劃創造的價值，已經趕上了過去幾年投入和運輸成本通脹的累積效應。

Input cost inflation, however, continues to be challenging. Once again, it was the primary driver of a double-digit increase in our manufacturing and distribution cost per pound in the quarter, largely due to higher prices for edible oils, ingredients for batter coatings, labor and transportation. Potato costs were also up as a consequence of the historically poor crop that was harvested last fall.

然而，投入成本通脹仍然具有挑戰性。這再次成為我們本季度每磅製造和分銷成本兩位數增長的主要驅動因素，這主要是由於食用油、麵糊塗層成分、勞動力和運輸的價格上漲。由於去年秋天收穫的歷史作物歉收，馬鈴薯成本也有所上升。

While this is the last quarter that we will realize the financial impact from the 2021 crop, we expect our potato costs to continue to increase in the second half of this year as a result of higher contract prices and the need for significant open market purchases due to poor yields from the 2022 crop. We also continue to incur higher costs and operational inefficiencies associated with shortages of key ingredients and spare parts, onboarding newly hired production team members and other industry-wide supply-chain challenges.

雖然這是我們將意識到 2021 年作物的財務影響的最後一個季度，但由於合同價格上漲以及由於到期需要大量公開市場採購，我們預計今年下半年我們的馬鈴薯成本將繼續增加導致 2022 年作物收成不佳。我們還繼續承擔與關鍵原料和備件短缺、新僱用的生產團隊成員入職以及其他全行業供應鏈挑戰相關的更高成本和運營效率低下的問題。

While the impacts from these constraints have been slowly easing, we expect they will continue to be a headwind through the remainder of the year. Moving on from cost of sales. Our SG&A, excluding items impacting comparability, increased $45 million to $136 million, largely due to higher compensation and benefit expenses due to improved operating performance and higher expenses relating to improving our IT infrastructure, including designing and building a new ERP system.

雖然這些限制的影響一直在緩慢緩解，但我們預計它們將在今年餘下時間繼續成為不利因素。從銷售成本繼續。我們的 SG&A（不包括影響可比性的項目）增加了 4500 萬美元至 1.36 億美元，這主要是由於運營績效提高導致的薪酬和福利支出增加以及與改善 IT 基礎設施相關的支出增加，包括設計和構建新的 ERP 系統。

Equity method earnings from our unconsolidated joint ventures increased $16 million, excluding items impacting comparability and mark-to-market adjustments associated with currency and commodity hedging contracts. Higher pricing, especially in Europe, drove the increase. Demand continued to hold up relatively well despite the impact of significant consumer inflation and volatile energy costs.

我們未合併的合資企業的權益法收益增加了 1600 萬美元，不包括影響可比性和與貨幣和商品對沖合約相關的按市值調整的項目。更高的定價，尤其是在歐洲，推動了增長。儘管受到顯著的消費者通貨膨脹和波動的能源成本的影響，但需求繼續保持相對良好的勢頭。

This sets Lamb Weston/Meijer up to deliver solid results in the second half of the year. Moving to our segments. Sales in our Global segment were up 34% in the quarter behind a 31% increase in price/mix. As Tom noted earlier, most of the increase was driven by price escalators and updated pricing structures. With the increase in price/mix, Global's product contribution margin more than doubled to $171 million in the quarter.

這讓 Lamb Weston/Meijer 有望在下半年取得可觀的業績。轉到我們的細分市場。本季度我們全球業務的銷售額增長了 34%，而價格/產品組合增長了 31%。正如 Tom 之前指出的那樣，大部分增長是由價格上漲和更新的定價結構推動的。隨著價格/組合的增加，Global 在本季度的產品貢獻利潤率翻了一番以上，達到 1.71 億美元。

In addition, Global's product contribution margin percentage approached pre-pandemic levels, which is a key milestone for our overall performance. While we were always confident that we would restore Global's margins, we knew it would take longer than in other segments due to the structure and terms of the channels' customer contracts. Sales in our Foodservice segment grew 14%, driven by a 25% increase in price/mix as we continue to realize the carryover benefit of pricing actions that we announced throughout fiscal 2022 as well as actions taken earlier this year to counter inflation.

此外，Global 的產品邊際貢獻百分比接近大流行前的水平，這是我們整體業績的一個重要里程碑。雖然我們始終相信我們會恢復 Global 的利潤率，但我們知道，由於渠道客戶合同的結構和條款，這需要比其他部門更長的時間。我們的餐飲服務部門的銷售額增長了 14%，受價格/組合增長 25% 的推動，因為我們繼續意識到我們在整個 2022 財年宣布的定價行動的結轉收益以及今年早些時候採取的抗通脹行動。

Sales volumes decreased 11%, primarily reflecting production constraints and to a lesser extent, softer traffic in casual dining and full-service restaurants. In addition, because of these production constraints, we've had to make some tough choices on customer service, which has resulted in the loss of some lower-margin business. Foodservice's product contribution margin increased 25% as the benefits from pricing actions more than offset higher manufacturing and distribution cost per pound and the impact of lower volumes.

銷售額下降了 11%，主要反映了生產限制以及在較小程度上反映了休閒餐飲和全方位服務餐廳的客流量減少。此外，由於這些生產限制，我們不得不在客戶服務方面做出一些艱難的選擇，這導致了一些利潤率較低的業務的流失。 Foodservice 的產品貢獻利潤率增長了 25%，這是因為定價行動帶來的好處足以抵消每磅較高的製造和分銷成本以及銷量下降的影響。

Sales in our Retail segment increased 34% behind a 43% increase in price/mix, reflecting pricing actions across our branded and private label portfolios. Volume fell 9%, largely as a result of production constraints. It also reflects the incremental losses of certain lower-margin private label products. Through a combination of the team's strong execution of pricing and mix management, Retail's product contribution margin more than tripled to $66 million.

我們零售部門的銷售額增長了 34%，價格/組合增長了 43%，反映了我們品牌和自有品牌產品組合的定價行為。銷量下降 9%，主要是由於生產限制。它還反映了某些利潤率較低的自有品牌產品的增量損失。通過團隊強大的定價執行和組合管理的結合，Retail 的產品邊際貢獻增加了兩倍多，達到 6600 萬美元。

Its production contribution margin percentage is now in line with our away-from-home channels. Moving to our liquidity position and cash flow. Our balance sheet remains solid with strong liquidity and a low leverage ratio. We ended the quarter with about $420 million of cash and $1 billion undrawn revolver. Our net debt was about $2.3 billion, resulting in a 2.4x leverage ratio. That's down from 3.1x at the end of fiscal 2022, reflecting our earnings recovery.

它的生產貢獻利潤率現在與我們的離家渠道一致。轉向我們的流動性狀況和現金流量。我們的資產負債表保持穩健，流動性強，槓桿率低。本季度結束時，我們擁有約 4.2 億美元的現金和 10 億美元的未動用左輪手槍。我們的淨債務約為 23 億美元，槓桿率為 2.4 倍。這低於 2022 財年末的 3.1 倍，反映了我們的盈利復甦。

In the first half of the year, we generated about $290 million of cash from operations or about $80 million more than the first half of last year, largely due to the higher earnings. Capital expenditures were about $270 million, which is up about $120 million from the first half of last year. This increase is largely related to construction costs as we continue to expand processing capacity in Idaho, China and Argentina.

今年上半年，我們從運營中產生了約 2.9 億美元的現金，比去年上半年增加了約 8000 萬美元，這主要是由於收益增加。資本支出約為2.7億美元，比去年上半年增加約1.2億美元。這一增長主要與建設成本有關，因為我們繼續擴大在愛達荷州、中國和阿根廷的加工能力。

As a reminder, our annual maintenance capital expenditures have typically been about $120 million to $130 million as we generally target about 3% to 4% of sales. In the first half of the year, we returned nearly $100 million of cash to shareholders, including more than $70 million in dividends and $28 million in share repurchases.

提醒一下，我們每年的維護資本支出通常約為 1.2 億美元至 1.3 億美元，因為我們通常將目標定為銷售額的 3% 至 4%。今年上半年，我們向股東返還了近 1 億美元的現金，其中包括超過 7000 萬美元的股息和 2800 萬美元的股票回購。

As you may have seen a few weeks ago, our Board of Directors approved a 14% increase in our quarterly dividend, reflecting the successful execution of our strategy to drive strong financial results and cash flow and our confidence in our ability to deliver sustainable, profitable growth over the long term.

您可能在幾週前已經看到，我們的董事會批准將季度股息增加 14%，這反映出我們成功執行了推動強勁財務業績和現金流的戰略，以及我們對實現可持續、盈利的能力的信心長期增長。

So now let's turn to the updated fiscal 2023 outlook. Please note that our updated targets do not reflect the financial consolidation of Lamb Weston/Meijer as that transaction has not yet closed. We believe the transaction will be completed during our fiscal fourth quarter. So for the year, we've increased our sales target to $4.8 billion to $4.9 billion, which implies a growth rate of 17% to 19.5%. That's up from our previous target of $4.7 billion to $4.8 billion.

那麼現在讓我們轉向更新後的 2023 財年展望。請注意，我們更新後的目標並未反映 Lamb Weston/Meijer 的財務合併，因為該交易尚未完成。我們相信交易將在我們的第四財季完成。因此，今年，我們將銷售目標提高到 48 億美元至 49 億美元，這意味著增長率為 17% 至 19.5%。這高於我們之前設定的 47 億美元至 48 億美元的目標。

We expect that higher price/mix will be the primary driver of sales growth in the second half of the year. Forecasting volumes in the second half remains difficult as we anticipate shipments will continue to be affected by supply-chain constraints through fiscal 2023 and because of volatility surrounding a potential slowdown in restaurant traffic and demand as consumers face inflation and a weaker macroeconomic environment.

我們預計更高的價格/組合將成為下半年銷售增長的主要驅動力。下半年的銷量預測仍然很困難，因為我們預計到 2023 財年出貨量將繼續受到供應鏈限制的影響，並且由於消費者面臨通貨膨脹和疲軟的宏觀經濟環境，餐廳客流量和需求可能放緩的波動性。

For earnings, we're targeting adjusted net income of $540 million to $580 million. That's up from our previous target of $360 million to $410 million. Adjusted diluted earnings per share of $3.75 to $4, up from our previous target of $2.45 to $2.85. And finally, adjusted EBITDA, including unconsolidated joint ventures of $1.05 billion to $1.1 billion, up from our previous estimate of $840 million to $910 million. We continue to expect the increase in our earnings will be driven primarily by sales growth and gross margin expansion.

對於收益，我們的目標是調整後的淨收入為 5.4 億美元至 5.8 億美元。這高於我們之前設定的 3.6 億美元至 4.1 億美元的目標。調整後的每股攤薄收益為 3.75 美元至 4 美元，高於我們之前 2.45 美元至 2.85 美元的目標。最後，調整後的 EBITDA，包括 10.5 億美元至 11 億美元的未合併合資企業，高於我們之前估計的 8.4 億美元至 9.1 億美元。我們繼續預計我們的收益增長將主要由銷售增長和毛利率擴張推動。

We're targeting gross margins during the second half of the year to be between 27% and 28%, which is in line with the more than 27% that we delivered in the first half and up from the 23% that we posted during the back half of fiscal 2022. We expect the seasonal, sequential quarterly cadence for gross margins will be less pronounced than in previous years. Specifically, we do not foresee much of the typical seasonal step-up in gross margin from Q2 to Q3 or much of the typical step down from Q3 to Q4 for a few reasons.

我們的目標是今年下半年的毛利率在 27% 到 28% 之間，這與我們上半年交付的超過 27% 的水平一致，高於我們在上半年公佈的 23%。到 2022 財年的一半。我們預計毛利率的季節性、連續季度節奏將不如往年那麼明顯。具體而言，出於某些原因，我們預計毛利率從第二季度到第三季度不會出現典型的季節性上升，也不會從第三季度到第四季度出現典型的下降。

First, beginning in the third quarter, we expect our raw potato costs to increase to reflect the approximately 20% increase in the contracted price of the recently harvested potato crop. In addition, we expect higher potato costs as a result of significant high-cost open market purchases. Second, we expect continued significant inflation for other key inputs during the second half of the year, especially for edible oils and ingredients for batter coatings.

首先，從第三季度開始，我們預計我們的生馬鈴薯成本將增加，以反映最近收穫的馬鈴薯作物的合同價格上漲約 20%。此外，由於大量高成本的公開市場採購，我們預計馬鈴薯成本會更高。其次，我們預計今年下半年其他主要投入品將繼續出現顯著通脹，尤其是食用油和麵糊塗層原料。

Third, we expect a more muted step-up in global pricing from Q2 to Q3 due to the acceleration of pricing actions for contracts up for renewal in the coming years. And finally, we expect the year-over-year price increases in our Foodservice and Retail segments will decelerate as we begin to lap actions taken in fiscal 2022.

第三，由於未來幾年續簽合同的定價行動加速，我們預計從第二季度到第三季度全球定價將更加溫和。最後，我們預計隨著我們開始在 2022 財年採取行動，我們的餐飲服務和零售部門的同比價格漲幅將放緩。

With respect to SG&A, we expect expenses, excluding items impacting comparability of $525 million to $550 million. That's up from our previous target, largely due to higher compensation and benefit expenses, including increased incentive compensation expense due to improved operating performance as well as expenses for outside services, including support of our IT and ERP upgrades. Our [estimates] of other financial targets, including interest expense, capital expenditures, depreciation and amortization expenses and our effective tax rate are unchanged. And with that, let me now turn it back over to Tom for some closing comments.

關於 SG&A，我們預計費用（不包括影響可比性的項目）為 5.25 億美元至 5.5 億美元。這高於我們之前的目標，主要是由於更高的薪酬和福利費用，包括由於經營業績改善而增加的激勵薪酬費用以及外部服務費用，包括支持我們的 IT 和 ERP 升級。我們對其他財務目標的[估計]，包括利息支出、資本支出、折舊和攤銷費用以及我們的有效稅率保持不變。然後，讓我現在將其轉回給 Tom，徵求一些結束意見。

Thanks, Bernadette. Let me sum it up by saying, we're confident in our strategies and business momentum. And as a result, we've significantly increased our financial targets for the year. And we're also confident about the health and prospects of the category. And we believe that our capacity expansion and infrastructure investments will have us well positioned to support sustainable, profitable growth and create value for our shareholders over the long term.

謝謝，伯納黛特。讓我總結一下，我們對我們的戰略和業務勢頭充滿信心。因此，我們大幅提高了今年的財務目標。我們也對該類別的健康和前景充滿信心。我們相信，我們的產能擴張和基礎設施投資將使我們處於有利地位，以支持可持續的盈利增長並為我們的股東創造長期價值。

Once again, I want to thank the entire Lamb Weston team for our success this quarter and their ongoing commitment to meet the needs of our customers. Thank you for joining our call today, and now we're ready to take your questions.

我要再次感謝整個 Lamb Weston 團隊在本季度取得的成功以及他們對滿足客戶需求的持續承諾。感謝您今天加入我們的電話會議，現在我們已準備好回答您的問題。

(Operator Instructions) Our first question is going to come from Tom Palmer from JPMorgan.

（操作員說明）我們的第一個問題將來自摩根大通的湯姆帕爾默。

Congratulations on the quarter. Just kick off getting maybe a little color on the inflation outlook. I appreciate the comments in the prepared remarks. The release referenced double-digit inflation. It sounds like there's some moving parts, especially with potatoes stepping up in the second half, but you'll also be lapping some higher rates of inflation. So is the messaging that the absolute rate of inflation will step up in the second half of the year? Or would it be more comparable to what we saw in the second quarter?

祝賀這個季度。剛開始可能對通脹前景有一點了解。我感謝準備好的評論中的評論。該新聞稿提到了兩位數的通貨膨脹。聽起來有一些變動因素，尤其是下半年土豆價格上漲，但你也會遇到一些更高的通貨膨脹率。那麼，今年下半年絕對通脹率將上升的消息是否成立？或者它會比我們在第二季度看到的更具可比性嗎？

Yes. Thanks, Tom. This is Bernadette. We don't expect the absolute rate to increase. We will, though, however, continue to see that double-digit inflation for the remainder of the year. And as you said, that's reflecting the higher cost for potatoes and then other key inputs for edible oils, labor and ingredients. So absolutely expect that double-digit cost increase to continue but not increase.

是的。謝謝，湯姆。這是伯納黛特。我們預計絕對利率不會增加。然而，我們將在今年剩餘時間內繼續看到兩位數的通貨膨脹率。正如你所說，這反映出土豆的成本較高，然後是食用油、勞動力和配料的其他關鍵投入。因此，絕對預計兩位數的成本增長將繼續但不會增加。

Okay. And then the bounce back in Europe. Where are we in kind of the return to normal? I mean did we exit the second quarter, what you would call, a normal earnings run rate for that business? Is there still more work to be done? And as we think about the second half, should we look for another step-up in kind of the earnings power of that business as more pricing takes hold?

好的。然後在歐洲反彈。我們在哪裡恢復正常？我的意思是我們是否退出了第二季度，你稱之為該業務的正常盈利運行率？還有更多工作要做嗎？當我們考慮下半年時，我們是否應該在更多定價佔據主導地位的情況下尋找該業務盈利能力的另一個提升？

Yes, Tom. So this is Tom. The team in Lamb Weston/Meijer soon to be Lamb Weston has made terrific progress. Marc Schroeder leads that business, and the business has turned the corner. They've implemented a number of actions to stabilize the earnings of that business as we expected. They're showing great progress. And the run rates are trending positively, and we expect that to continue for the back half of the year. And as we close that transaction, as we stated, we expect that to happen in Q4 to get through all the reviews and regulatory process. We'll provide some more color on that once the transaction is closed in the coming quarters.

是的，湯姆。這就是湯姆。即將成為 Lamb Weston 的 Lamb Weston/Meijer 團隊取得了巨大進步。馬克·施羅德 (Marc Schroeder) 領導該業務，業務已經轉危為安。正如我們預期的那樣，他們已經採取了一系列措施來穩定該業務的收益。他們正在顯示出巨大的進步。運行率呈積極趨勢，我們預計今年下半年將繼續如此。正如我們所說，當我們完成該交易時，我們預計這將在第四季度發生，以完成所有審查和監管流程。一旦交易在未來幾個季度結束，我們將提供更多顏色。

And our next question is going to come from Peter Galbo from Bank of America.

我們的下一個問題將來自美國銀行的 Peter Galbo。

Tom, I was wondering if you could just provide a little bit more context around your comment, now that the company is sourcing some potatoes, I think, from the East Coast you mentioned. Just kind of maybe where you're seeing that relative to last year, I know when you had to source a decent number from the East Coast. And then anything just in terms of your plant network. Is there ability to move those potatoes not all the way to the basin, can you process them through the JV in Minnesota? Can you process them through the [Delhi] plant? Just any additional color would be helpful.

湯姆，我想知道你是否可以就你的評論提供更多的背景信息，現在公司正在從你提到的東海岸採購一些土豆。與去年相比，你可能會看到這種情況，我知道你什麼時候必須從東海岸採購相當數量的產品。然後就您的工廠網絡而言的任何事情。是否有能力將這些土豆不一直運到盆地，你能通過明尼蘇達州的合資企業加工它們嗎？你能通過[德里]工廠加工它們嗎？任何額外的顏色都會有所幫助。

Yes. So the year-over-year, this year, it's not as pronounced as it was last year because of the quality of the crop last year in yields. We got out ahead of it, the ag team in Lamb Weston has done a terrific job sourcing potatoes to meet our needs. They're still high cost. You got to freight them across the country, and you have some quality issues when you're trucking that far.

是的。因此，與去年同期相比，今年，由於去年的作物單產質量，它不像去年那樣明顯。我們走在了前面，Lamb Weston 的農業團隊在採購土豆以滿足我們的需求方面做得非常出色。他們的成本仍然很高。你必須把它們運到全國各地，當你用卡車運那麼遠的時候，你會遇到一些質量問題。

But it's not as pronounced as it was last year. And all those costs are reflected in our outlook for the remainder of this fiscal year. And good news, bad news is we had some experience last year, so we were able to rally quickly, and we understand how that all is going to impact the business. But again, that's all forecasted in our outlook. So we're doing everything we can to meet our customer demand, and that's the most important thing.

但它不像去年那麼明顯。所有這些成本都反映在我們對本財年剩餘時間的展望中。好消息，壞消息是我們去年有一些經驗，所以我們能夠迅速反彈，我們知道這一切將如何影響業務。但同樣，這一切都在我們的展望中進行了預測。因此，我們正在竭盡所能滿足客戶的需求，這是最重要的事情。

Got it. That's helpful. And Bernadette, I just had 1 clarification on the gross margin commentary for the back half of the year. I think you're still expecting a sequential improvement in 3Q, obviously, not as pronounced as it would have been historically, but it would still improve in 3Q? And then is there a step down to expect in the fourth quarter? I just wanted to clarify those 2 things.

知道了。這很有幫助。伯納黛特，我剛剛對下半年的毛利率評論進行了 1 次澄清。我認為你仍然期待第三季度的連續改善，顯然，不像歷史上那樣明顯，但它仍然會在第三季度改善？那麼第四季度是否會有降級預期？我只是想澄清這兩件事。

Yes. No, thank you. We do expect to see an increase. But as you said, it will not be as pronounced in the third quarter as we've historically seen. And then there will be a step down in fourth quarter, but again, not as pronounced as what we've historically seen.

是的。不，謝謝。我們確實希望看到增長。但正如你所說，它在第三季度不會像我們歷史上看到的那樣明顯。然後在第四季度會有一個下降，但不會像我們歷史上看到的那樣明顯。

And our next question is going to come from Chris Growe from Stifel.

我們的下一個問題將來自 Stifel 的 Chris Growe。

Just a bit of a follow-on to that Peter's question and some of your response there. I guess just to understand the gross margin this quarter. I just want to get a sense of how unique the performance was this quarter. And I was thinking around the areas of like mix and perhaps even like limited time offerings to what degree that's influencing the gross margin this quarter that may not be sustainable?

只是對彼得的問題和你在那裡的一些回應的一些後續。我想只是為了了解本季度的毛利率。我只是想了解一下本季度的表現有多麼獨特。而且我正在考慮類似混合的領域，甚至可能像限時產品在多大程度上影響本季度可能不可持續的毛利率？

And then, to what degree you're walking away from lower-margin business, and to what degree that's influencing your margin as well? Perhaps there's other issues, too. But those are a couple of things I was thinking about just to get a little sense around and how that could affect the gross margin going forward.

然後，您在多大程度上放棄了低利潤業務，這又在多大程度上影響了您的利潤？或許還有其他問題。但這些是我正在考慮的幾件事，只是為了了解一下這將如何影響未來的毛利率。

Yes. No, thank you for that question. And as it relates to the gross margin going forward, LTOs, there isn't anything unusual that we would have experienced this quarter relative to prior quarters or going forward. Really, what you're seeing is that we were able to pull forward a lot of the pricing actions in Global earlier than expected.

是的。不，謝謝你提出這個問題。由於它與未來的毛利率、LTO 相關，與前幾個季度或未來相比，本季度我們不會遇到任何異常情況。真的，你所看到的是我們能夠比預期更早地在全球範圍內推進許多定價行動。

And then we're going to be lapping some of the Foodservice and Retail price increases in the back half of the year. So there'll be more of a muted effect related to that. So a combination of the higher potato costs, the inflation and then the deceleration of that price/mix growth, that's what you're going to see have an effect on those margins in the back half of the year.

然後我們將在今年下半年對一些餐飲服務和零售價格上漲進行調整。所以會有更多與此相關的靜音效果。因此，馬鈴薯成本上升、通貨膨脹以及價格/混合增長放緩的結合，這就是你將在今年下半年看到的對這些利潤率的影響。

Okay. And actually, I have a follow-on to that, which would just be that you talked about pulling forward some of those global contract renewal discussions. So it sounds like you had a good renewal from this past summer, and that should start to kick in now. But it sounds like you also then pulled forward some -- maybe some from next summer or even summers ahead. I guess just to get a sense of where you are then on contract renewals. Normally, it's like 1/3 of every year. Did you -- were you able to get more of that done is the question?

好的。實際上，我有一個後續行動，那就是你談到了推進一些全球合同續簽討論。所以聽起來你從去年夏天開始有了很好的更新，現在應該開始發揮作用了。但聽起來你還提前了一些——可能是明年夏天甚至未來夏天的一些。我想只是為了了解您在合同續簽方面的進展情況。通常，每年大約有 1/3。你有沒有 - 你能夠完成更多的事情是問題嗎？

Yes. We were able to go out and have conversations with our customers and pull more of that forward than had been anticipated, more than what we would have typically seen with our contract renewals. So we expect that the global pricing will remain strong in the back half. It's just, we've been able to pull that forward earlier than expected.

是的。我們能夠走出去與我們的客戶進行對話，並將比預期更多的東西向前推進，這比我們通常在續簽合同時看到的要多。因此，我們預計下半年全球定價將保持強勁。只是，我們已經能夠比預期更早地推進它。

And can you say how much of your contract renewals -- how much more you've done this year? Or how much less you'll have for you going forward?

你能說說你續簽了多少合同——你今年又做了多少？或者你以後能少多少？

No, I can't really speak to that. I'd say, overall, we've got probably about 25% that we'll need to continue to renegotiate. But again, that's based on pounds and not based on business or dollars.

不，我真的不能這麼說。我想說，總的來說，我們可能需要繼續重新談判大約 25%。但同樣，這是基於英鎊，而不是基於業務或美元。

Our next question will come from Adam Samuelson from Goldman Sachs.

我們的下一個問題將來自高盛的亞當薩繆爾森。

So I guess first question maybe on the demand environment. Some of this was in the prepared remarks, but I'd love to just hear you expand a little bit on just maybe different parts of Global between the domestic QSRs versus international, Foodservice traffic trends, and just as your customers absorbed some pretty sizable kind of price increases, just the confidence that you don't see any changes in fry attach rates from the consumption perspective.

所以我想第一個問題可能是關於需求環境。其中一些是在準備好的評論中，但我很想听聽你在國內 QSR 與國際、餐飲服務交通趨勢之間的全球不同部分進行一些擴展，就像你的客戶吸收了一些相當大的種類一樣價格上漲，只是相信從消費的角度來看，魚苗附加率沒有任何變化。

Yes, Adam. Overall, I feel really strong about the health of the category. And we've purposely had to make choices across our segments to support our customer base. And we've really focused on product/mix management across the portfolio and the customers. So the QSR segment continues to be really healthy. As we stated in our prepared remarks, the fast casual -- casual dining is experiencing some weaker traffic, although it's improving versus where it was in the first quarter, but we're also making choices and in terms of customer and supporting customers based on product mix and our capacity.

是的，亞當。總的來說，我對該類別的健康狀況感到非常強烈。我們故意不得不在我們的細分市場中做出選擇，以支持我們的客戶群。我們真正專注於跨產品組合和客戶的產品/組合管理。因此，QSR 細分市場仍然非常健康。正如我們在準備好的評論中所述，儘管與第一季度相比有所改善，但快速休閒 - 休閒餐飲的流量有所下降，但我們也在根據客戶和支持客戶做出選擇產品組合和我們的能力。

And there are still challenges within our network to produce and get back to the levels where we were pre-pandemic. And the team -- the supply-chain team is working on that. And it's going to take us the balance of this year to continue to focus on things to improve that. So the category is healthy. And yes, our volume is a little soft in some areas. That's traffic driven. But over the long term, when I look at the category and think about the next 2, 3, 5 years, and the investments we're making, we're going to be well positioned in a couple of years to bring on capacity and drive opportunities that right now we're making choices that we don't necessarily like we got to support our key customers going forward.

我們的網絡中仍然存在挑戰，要生產並恢復到大流行前的水平。團隊——供應鏈團隊正在為此努力。這將使我們在今年餘下的時間裡繼續專注於改善這一點。所以這個類別是健康的。是的，我們的音量在某些方面有點軟。那是流量驅動的。但從長遠來看，當我審視該類別並考慮未來 2、3、5 年以及我們正在進行的投資時，我們將在幾年內做好準備，以提高產能和推動機會，現在我們正在做出我們不一定喜歡的選擇，我們必須支持我們的主要客戶向前發展。

Yes. And just to add to that, Tom, in addition to the softness that we have in the casual dining. More of that softness though is just related to the supply-chain constraints that we've been experiencing. But overall, absolutely, our demand has returned to the pre-pandemic levels on a run rate basis prior to what we saw with war in Ukraine.

是的。湯姆，除了我們在休閒餐飲中所擁有的柔軟度之外，還要補充一點。不過，更多的疲軟只是與我們一直在經歷的供應鏈限制有關。但總的來說，在我們看到烏克蘭戰爭之前，我們的需求絕對已經恢復到大流行前的運行率水平。

Got it. And if I could maybe follow on the point on just capacity a little bit. You talked earlier about some of the product/mix impacting kind of throughput rates and kind of what you could actually produce from an end product perspective. I mean, do you think with the current product mix, if you were properly staffed and there wasn't raw material constraint around potatoes that the current capacity with this mix could produce the same volume of finished product that you did pre-pandemic? Or does the actual mix that you've kind of shifted to as it stands right now actually constrain your -- physically constrain your output going forward?

知道了。如果我可以稍微跟進一下關於容量的觀點。您之前談到了一些影響吞吐率的產品/組合以及從最終產品的角度來看您實際可以生產的產品。我的意思是，您是否認為在當前的產品組合中，如果您配備適當的人員並且馬鈴薯周圍沒有原材料限制，那麼這種組合的當前產能可以生產出與大流行前相同數量的成品？還是您現在已經轉移到的實際混音實際上限制了您的 - 物理上限制了您未來的輸出？

Yes, Adam. So I know the team is working on getting to pre-pandemic levels, but the reality is, the choices and the mix that we're now producing, really oversimplifying it, we have to slow lines down when we're making coated product. So we can't run as fast. And so there is some capacity disadvantages to running premium products. That's just a fact. However, I think the mix of the portfolio bodes well going forward for the profitability of the company.

是的，亞當。所以我知道團隊正在努力達到大流行前的水平，但現實是，我們現在生產的選擇和組合，真的過於簡單化了，我們在生產塗層產品時必須放慢生產線速度。所以我們不能跑得那麼快。因此，運行優質產品存在一些容量劣勢。那隻是一個事實。然而，我認為投資組合的組合預示著公司盈利能力的良好發展。

Okay. And maybe just a final, if I could squeeze in. Of your total price/mix in the quarter, how much was mix? Can you share if you can -- or any [reframing]?

好的。如果我能擠進去的話，也許只是決賽。在你們本季度的總價格/組合中，混合了多少？如果可以的話，你能分享一下嗎——或者任何[重構]？

Yes. We don't break the out mix from price, Adam. It's predominantly price.

是的。亞當，我們不會從價格上打破組合。主要是價格。

Our next question will come from William Reuter from Bank of America.

我們的下一個問題將來自美國銀行的 William Reuter。

I just have to -- given the changes in your sourcing from the West Coast to the East Coast that you did last year, now again this year, do you anticipate that in future years, if we return to more typical yields, you'll be able to shift that back to the West Coast and therefore, there should be some kind of margin expansion in 2024 and beyond?

我只需要 - 考慮到您去年所做的從西海岸到東海岸的採購變化，今年又一次，您是否預計在未來幾年，如果我們恢復到更典型的產量，您會能夠將其轉移回西海岸，因此，在 2024 年及以後應該會有某種形式的利潤率擴張？

Yes. I expect next year's crop to be normalized and yields good and all the things that we're historically used to. And in terms of is that going to provide margin expansion? No, it won't. Materially, it won't. We're going to have inflation in our commodity costs next year, again, I believe based on how the commodity markets are shaping up.

是的。我預計明年的收成將正常化，單產會很好，所有這些都是我們過去習慣的。就這是否會提供利潤率擴張而言？不，不會的。實質上，它不會。明年我們的商品成本將再次出現通貨膨脹，我相信基於商品市場的形成方式。

And as I stated in the prepared remarks, where the potato crop negotiations, we settled with Pacific Northwest, we're going to be up 20% next year. And you stack that up over 2 years, that's a big lift. And it's going to be another difficult year, and we'll continue to adjust our thinking on pricing that through the market going forward, but it's not going to be a material margin impact year-over-year just based on sourcing out of the East Coast.

正如我在準備好的發言中所說，在馬鈴薯作物談判中，我們與 Pacific Northwest 達成和解，明年我們將增長 20%。你把它疊加起來超過 2 年，這是一個很大的提升。這將是又一個艱難的一年，我們將繼續調整我們對未來市場定價的想法，但僅僅基於從東方採購，它不會對同比產生實質性的利潤影響海岸。

Got it. And then my second is based upon your guidance, even pro forma for the acquisition of the rest of the joint venture, you're still going to be below your leverage target of 3.5 to 4x, you're going to be, I think, in the high 2s. I guess what is that -- I mean, in terms of capital allocation, I know you increased the dividend, but how are you thinking about that?

知道了。然後我的第二個是基於你的指導，即使是收購其餘合資企業的備考，你仍然會低於 3.5 到 4 倍的槓桿目標，我認為你會，在高 2s。我想那是什麼——我的意思是，就資本配置而言，我知道你增加了股息，但你是怎麼想的？

Yes. No, we're excited about increasing the dividend based on our performance. As we think about capital allocation, we have not changed our priorities in terms of investing in the business for the long term. M&A, if there's M&A that's available and then we will reward our shareholders as well. But certainly, we're going to invest in the business first.

是的。不，我們很高興根據我們的表現增加股息。在我們考慮資本配置時，我們沒有改變長期投資業務的優先順序。併購，如果有可用的併購，那麼我們也會回報我們的股東。但可以肯定的是，我們將首先投資於業務。

Okay. So the leverage target remains at 3.5 to 4x?

好的。那麼槓桿目標仍保持在 3.5 到 4 倍？

It does remain in that range. And as we've said before, we're doing that because we want to make sure that we have enough financial firepower for M&A or other items that may come up.

它確實保持在該範圍內。正如我們之前所說，我們這樣做是因為我們想確保我們有足夠的財務實力來進行併購或其他可能出現的項目。

There are no further questions at this time. I'd like to turn the conference back over to you, Dexter Congbalay for any additional remarks.

目前沒有其他問題。我想將會議轉回給您，Dexter Congbalay，請您發表任何補充意見。

Thanks for joining the call this morning. If you want to have any follow-up sessions, please e-mail me, so we can schedule a time. And happy New Year and have a good day. Thank you.

感謝您今天早上加入電話會議。如果您想進行任何後續會議，請給我發電子郵件，以便我們安排時間。新年快樂，祝你有美好的一天。謝謝你。

This concludes today's call. We appreciate your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。