藍威斯頓 (LW) 2025 Q1 法說會逐字稿

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Provide an overview of the current operating brand and cost reduction actions that we announced yesterday and an update on this year's potato crop for. And that will then provide details on our first quarter results as well as our updated fiscal 2025 outlook. With that, let me now turn the call over to Tom.

概述我們昨天宣布的當前營運品牌和成本削減行動，以及今年馬鈴薯作物的最新情況。 然後將提供有關我們第一季業績以及更新的 2025 財年展望的詳細資訊。 現在讓我把電話轉給湯姆。

Thank you, Dexter. Good morning and thank you for joining our call today. We delivered financial results for the first quarter that were generally in line with our expectations. Sales came in above our target, driven by better than expected volume and price mix. Our volume performance reflected our effort to recapture customer share and win new business.

謝謝你，德克斯特。 早安，感謝您今天加入我們的電話會議。 我們公佈的第一季財務業績大致符合我們的預期。 由於銷售量和價格組合好於預期，銷售額超出了我們的目標。 我們的銷售表現反映了我們為奪回客戶份額和贏得新業務所做的努力。

Solid execution in many of our key international markets and only slight improvement in restaurant traffic trends. Overall price mix increase as inflation driven pricing actions in our key international markets more than offset investments in price in North America. Adjusted EBITDA for the quarter was slightly B&A for that, but that's really our expectations. We continue to expect frozen potato demand and global restaurant traffic to remain challenging through fiscal 2025.

我們在許多主要國際市場的執行力強勁，餐廳客流量趨勢僅略有改善。 由於通膨驅動的主要國際市場的定價行為抵消了北美的價格投資，整體價格組合增加。 本季調整後的 EBITDA 略高於 B&A，但這確實是我們的預期。 我們仍然預計，到 2025 財年，冷凍馬鈴薯需求和全球餐廳客流量仍將面臨挑戰。

According to restaurant industry data providers during our fiscal first quarter traffic trends improving during the summer months as QSRs stepped up promotional activity and as consumers continue to adjust to the cumulative effect of menu price inflation. However, traffic remained negative. Overall US restaurant traffic as well as QSR traffic in the quarter was down 2% versus the prior year. That's a sequential improvement from the down 3% that we observed during our fiscal 2020 for Gartner option 3%. That's an improvement from down more than 4% during our fiscal 2020 for Q4.

根據餐飲業數據提供者的數據，我們第一財季的客流量趨勢在夏季有所改善，因為快餐店加強了促銷活動，消費者繼續適應菜單價格上漲的累積效應。 然而，客流量仍然為負。 本季美國餐廳的整體客流量以及 QSR 客流量比去年同期下降了 2%。 這比我們在 2020 財年觀察到的 Gartner 選項 3% 下降了 3% 有所改善。 這比 2020 財年第四季下降超過 4% 有所改善。

Importantly, traffic trends in QSR hamburger improved sequentially each month of our first quarter as per emotional activity increased. We're obviously pleased with the growth in restaurant traffic, but it's important to know that many of these promotional Meal Deals have consumers trading down from a median prior to small fry.

重要的是，隨著情緒活動的增加，第一季每月快餐漢堡的流量趨勢都在連續改善。 顯然，我們對餐廳客流量的成長感到滿意，但重要的是要知道，許多促銷餐點優惠讓消費者的交易價格從小油炸食品之前的中位數下降。

So while we benefit from improving traffic trends, consumers trading down in serving science acts as a partial headwinds for our volumes outside the US. Overall restaurant traffic trends in our key international markets and our first quarter were softer than what we observed in our fiscal 2024 fourth quarter restaurant traffic in the UK, our largest market in Europe declined about 3%, which is down sequentially from a decline of about 2%.

因此，雖然我們受益於交通趨勢的改善，但消費者在科學服務方面的下降對我們在美國以外的業務量構成了部分阻力。 我們主要國際市場和第一季的整體餐廳客流量趨勢比我們在2024 財年第四季英國餐廳客流量中觀察到的要軟，我們歐洲最大的市場下降了約3%，比上一季下降了約3%。

In Germany, traffic was also down about 3% after only being down slightly in the fourth quarter. Traffic in France and Italy continued to rise, but at a slower rate than the fourth quarter, while traffic in Spain was essentially flat in Asia, overall, restaurant traffic grew in both China and two Japan. Unlike the changes in global traffic trends, Dufry attachment rates in the US in our key international markets were largely steady. This resilience of consumers' demand for fries as well as their importance to customers. Menus are key reasons why we remain confident that the global fry category will return to its historical long term.

德國的交通量繼第四季僅小幅下降後也下降了約 3%。 法國和義大利的客流量持續成長，但成長速度較第四季放緩，而西班牙的客流量基本持平，整體而言，中國和兩個日本的餐廳客流量均有所增長。 與全球流量趨勢的變化不同，Dufry 在美國主要國際市場的附著率基本上穩定。 消費者對薯條的需求彈性及其對顧客的重要性。 菜單是我們對全球薯條類別將恢復歷史長期水平充滿信心的關鍵原因。

The growth rate over time as global traffic rates improve, given our expectations about traffic and demand trends, we also believe that the supply demand imbalance that's been driven by the decline in traffic will persist through much, if not all fiscal 2025. With respect to the bigger customer contracts, the season for competing for these contracts is essentially behind us, and the overall outcome was largely as we expected. We had good success and protecting customer share and retaining business with existing large chain restaurant customers.

考慮到我們對流量和需求趨勢的預期，隨著全球流量率的提高，成長率會隨著時間的推移而增加，我們也認為，流量下降導致的供需失衡將在2025 財年的大部分時間（即使不是整個財年）持續存在。 我們取得了良好的成功，保護了客戶份額並保留了與現有大型連鎖餐廳客戶的業務。

We also had some success in winning new chain restaurant customer base, most notably in our international segment. And we'll begin to realize more meaningful volume associated with these new customers. Beginning in our fiscal third quarter, pricing associated with contract renewals and customer wins was competitive, but in total was broadly in line with what we expected.

我們在贏得新的連鎖餐廳客戶群方面也取得了一些成功，尤其是在我們的國際市場。 我們將開始實現與這些新客戶相關的更有意義的銷售。 從第三財季開始，與合約續約和贏得客戶相關的定價具有競爭力，但總體而言與我們的預期基本一致。

With respect to the smaller and regional customers in the U.S., we continue to leverage our direct sales force to acquire new customers and recapture customers that we lost either directly or indirectly from the transition to our new ERP system.

對於美國的小型和區域客戶，我們繼續利用我們的直銷隊伍來獲取新客戶，並重新奪回因過渡到新 ERP 系統而直接或間接失去的客戶。

In the second half of fiscal 2024. As with the larger chain restaurant contracts, pricing levels needed to be gaining customer share or win new business have been competitive, but also broadly in line with what we expected. With respect to our cost structure, as we noted during our previous earnings call, we've been evaluating opportunities to drive down splits and the cash flow.

2024 財年下半年。 關於我們的成本結構，正如我們在先前的財報電話會議中指出的那樣，我們一直在評估減少分割和現金流的機會。

Yesterday, we announced a restructuring plan, which included a number of key actions. First, we permanently closed our co-mail Washington facility, which is one of our older higher cost facilities. Posing this nearly GBP300 million capacity facility reduces our total capacity in North America by more than 5%. We stopped production at this site yesterday.

昨天，我們宣布了一項重組計劃，其中包括一些關鍵行動。 首先，我們永久關閉了華盛頓的聯合郵件設施，這是我們成本較高的較舊設施之一。 建立這個近 3 億英鎊的產能設施將使我們在北美的總產能減少 5% 以上。 我們昨天停止了該工地的生產。

Second were temporarily curtailing production lines and channels across our manufacturing network in North America to focus more production on our more efficient, lower cost lines and steadily worked down our elevated finished goods inventory levels. And third, we're reshaping future investments to modernize production capabilities.

其次是暫時削減北美製造網路的生產線和管道，將更多生產集中在效率更高、成本更低的生產線上，並穩步降低成品庫存水準。 第三，我們正在重塑未來的投資，以實現生產能力現代化。

Together, these actions will help us leverage recently capacity investments, better manage utilization rates across our manufacturing network and reduce capital expenditures. In addition, we're reducing our global headcount by approximately 4% and eliminating certain job positions that are currently unfilled. This affects team members and positions across our manufacturing, supply chain and commercial organizations in both our North America and International segments, as well as in our corporate functions.

總之，這些行動將幫助我們利用最近的產能投資，更好地管理整個製造網絡的利用率並減少資本支出。 此外，我們還將全球員工人數減少約 4%，並取消某些目前空缺的職位。 這會影響我們北美和國際部門的製造、供應鏈和商業組織以及公司職能部門的團隊成員和職位。

Further that will provide details about the cost savings that we expect to generate, as well as the charges we will incur in connection with our restructuring plan. These are very tough decisions but necessary proactive steps in the current operating environment to produce to improve our operating efficiency, competitiveness and financial results after the potato crop for harvesting and processing the crops in our growing regions in both North America and Europe.

此外，這還將提供有關我們預期節省的成本的詳細信息，以及我們將因重組計劃而產生的費用。 這些都是非常艱難的決定，但在當前的營運環境下，必須採取積極主動的措施，以提高我們在北美和歐洲種植區收穫和加工馬鈴薯作物後的營運效率、競爭力和財務表現。

But this time, we believe the crops in the Columbia Basin, Idaho, Alberta and the Midwest are slightly above historical averages. As a reminder, North America, we've agreed to 3% decrease in the aggregate contract prices for the 2024 potato crop, and we will begin to realize the benefit of these lower potato prices beginning in our fiscal third quarter.

但這次，我們認為哥倫比亞盆地、愛達荷州、艾伯塔省和中西部地區的收成略高於歷史平均值。 提醒一下，北美地區，我們已同意將 2024 年馬鈴薯作物的總合約價格降低 3%，我們將從第三財季開始開始實現馬鈴薯價格下降的好處。

With respect to the crop in Europe a few months ago, we in the market expected that the crop for the laser potato varieties in the industry's main growing regions in the Netherlands, Belgium and northern France in Northern Germany would be well below average since planning was completed late due to poor weather conditions. However, growing conditions were good in August and September, which improve the outlook for the crop. We currently believe the European potato crop in the aggregate will be in line with historical averages.

就幾個月前歐洲的收成而言，我們在市場上預計荷蘭、比利時和德國北部法國北部等行業主要種植區的激光馬鈴薯品種收成將遠低於平均水平，因為計劃由於天氣狀況不佳，完工時間較晚。 然而，八月和九月的生長條件良好，這改善了作物的前景。 我們目前認為歐洲馬鈴薯總產量將與歷史平均值一致。

Overall, we expect our potato costs in Europe will increase largely reflecting the mid to high single digit price increase associated with our fixed price contracts. We'll provide our final assessment of the potato crops in North America and Europe. When we report our second-quarter results in early January.

總體而言，我們預計歐洲的馬鈴薯成本將增加，很大程度上反映了與我們的固定價格合約相關的中高個位數價格上漲。 我們將提供對北美和歐洲馬鈴薯作物的最終評估。 當我們在一月初報告第二季業績。

So in summary, we delivered first quarter results that were generally in line with our expectations, driven by improved volume performance, solid price mix and strict management of operating costs. While US restaurant traffic trends have improved modestly in recent months, there remain negative, and we continue to take a cautious view of frozen potatoes demand in the consumer, we've announced a restructuring plan to improve our operating efficiency, protect our bottom line and improve cash flow during this challenging operating environment. And finally, this time, we believe the potato crop North America will be slightly above average and that the European crop will likely be in line with historical averages.

總而言之，在銷售表現改善、穩定的價格組合和嚴格的營運成本管理的推動下，我們交付的第一季業績總體符合我們的預期。 儘管近幾個月美國餐廳客流量趨勢略有改善，但仍然存在負面影響，我們繼續對消費者的冷凍馬鈴薯需求持謹慎態度，但我們已經宣布了一項重組計劃，以提高我們的營運效率，保護我們的利潤並在充滿挑戰的經營環境中改善現金流。 最後，這一次，我們相信北美的馬鈴薯產量將略高於平均水平，而歐洲的產量可能會與歷史平均水平保持一致。

Let me now turn the call over to Bernadette for a more structured plan and our updated fiscal 2025 outlook.

現在讓我將電話轉給伯納黛特，以獲取更有條理的計劃和更新的 2025 財年展望。

Thanks, Tom, and good morning, everyone. As Tom noted, our financial results were generally in line with our expectations. Specifically, while sales declined 1% compared with the year-ago quarter, the decline was less than the high single digits. We expect that did a better than projected volume and price mix compared with the first quarter a year ago.

謝謝，湯姆，大家早安。 正如湯姆指出的那樣，我們的財務表現總體上符合我們的預期。 具體來說，雖然銷售額與去年同期相比下降了 1%，但降幅小於高個位數。 我們預計，與去年第一季相比，銷售量和價格組合的表現優於預期。

Volumes declined 3% and largely reflected the carryover effects of customer share losses in North America, the exit of certain dollar price and lower margin business in Europe last year and soft restaurant traffic trends in the US a lesser extent the previously announced voluntary product withdrawal that began affecting our sales in fourth quarter of fiscal 2024 also contributed to the first quarter decline volume growth in our key international markets partially offset the overall decline.

銷售量下降3%，主要反映了北美客戶份額損失、歐洲去年某些美元價格和利潤率較低的業務退出以及美國餐廳客流量趨勢疲軟（較小程度上是先前宣布的自願產品撤回）的結轉影響。

Price mix increased 2% compared with the prior year due to the benefit of inflation driven pricing actions in Europe as well as the carryover benefit of pricing actions we took last year in North America, unfavorable channel and product mix as well as targeted investments in price and trade tempered the increase in price mix.

由於歐洲通膨驅動的定價行動以及我們去年在北美採取的定價行動的結轉效益、不利的管道和產品組合以及有針對性的價格投資，價格組合較上一年增長了 2%貿易抑制了價格組合的增長。

Moving on from sales of 1 million to 3 factors. First, about $39 million of the decline was due to the voluntary product withdraw. It was higher than the $20 million to $30 million range that we anticipated in the quarter, primarily due to higher than expected costs to dispose the product. Second, more than $15 million at the adjusted gross profit decline was due to higher depreciation expense that's largely related to our capacity expansions in China and Idaho that were completed last fiscal year.

銷量從 100 萬輛增加到 3 個因素。 首先，約 3900 萬美元的下降是由於產品自願撤回造成的。 它高於我們本季預期的 2,000 萬至 3,000 萬美元範圍，主要是由於處置該產品的成本高於預期。 其次，調整後毛利下降超過 1,500 萬美元是由於折舊費用增加，這很大程度上與上一財年完成的中國和愛達荷州產能擴張有關。

The rest of the decline was primarily driven by higher manufacturing costs per pound, which reflects input cost inflation as well as inefficiencies associated with lower factory utilization rate. To a lesser extent, lower sales volumes and higher warehousing costs also contributed to the decline.

其餘下降主要是由於每磅製造成本上升，這反映了投入成本通膨以及與工廠利用率較低相關的低效率。 在較小程度上，銷量下降和倉儲成本上升也導致了銷量下降。

Together, these factors more than offset the net benefit from pricing actions. Our gross margin in the quarter was nearly 21.5%, which was about 100 to 150 basis points below our target of 22% to 23% of the shortfall. Nearly 100 basis points was related to the greater than expected impact of the voluntary product withdraw that remain and are largely reflected higher than expected manufacturing costs per pound.

這些因素加在一起，遠遠抵銷了定價行為帶來的淨收益。 本季我們的毛利率接近 21.5%，比我們 22% 至 23% 的缺口目標低約 100 至 150 個基點。 近 100 個基點與自願產品撤回的影響大於預期有關，該影響仍然存在，並且在很大程度上反映了高於預期的每磅製造成本。

Adjusted SG&A increased 6 million to $149 million due to an incremental 6 million of non-cash amortization related to our new ERP system that went live in the third quarter of fiscal 2024. Aggressive actions to reduce spending, offset inflation and investments in our information technology infrastructure. All of this led to adjusted EBITDA of $290 million.

由於與2024 財年第三季啟用的新ERP 系統相關的非現金攤銷增加了600 萬美元，調整後的SG&A 增加了600 萬美元，達到1.49 億美元。和資訊科技投資基礎設施。 所有這些導致調整後 EBITDA 達到 2.9 億美元。

Well, that's better than what we guided. It was down about $123 million versus the prior year quarter, largely due to higher manufacturing costs per pound and the impact of the voluntary product withdrawal, which more than offset the net benefit from pricing actions.

嗯，這比我們指導的還要好。與去年同期相比下降了約 1.23 億美元，這主要是由於每磅製造成本上升以及自願產品撤回的影響，這遠遠抵消了定價行動帶來的淨收益。

Moving to our segments. Sales in our North America segment, which includes sales to customers and all channels in the US, Canada and Mexico declined 3% versus the prior year quarter. Volume declined 4% and was largely driven by the carryover impact of smaller and regional customer share losses and food away-from-home channel, as well as declining restaurant traffic in the US.

轉向我們的細分市場。 北美部門的銷售額（包括美國、加拿大和墨西哥的客戶和所有通路的銷售額）與去年同期相比下降了 3%。 銷售量下降 4%，主要是由於規模較小的區域性客戶份額損失、外帶管道以及美國餐廳客流量下降的遺留影響。

Volume decline was partially offset by growth in retail channel. Price mix increased 1%, reflecting the carryover benefit of inflation driven pricing actions for contracts with large and regional chain restaurant customers taken in fiscal 2024, which was partially offset by unfavorable channel and product mix and to a lesser extent, targeted invest. Americas segment adjusted EBITDA declined to $130 million to $276 million and included an approximately $21 million charge related to the voluntary product withdrawal.

零售通路的成長部分抵消了銷量下降。 價格組合成長了1%，反映了2024 財年與大型和區域連鎖餐廳客戶簽訂的合約中通膨驅動的定價行動帶來的結轉收益，但該收益被不利的管道和產品組合以及較小程度上的定向投資所部分抵消。 美洲部門調整後的 EBITDA 下降至 1.3 億美元至 2.76 億美元，其中包括與自願產品撤回相關的約 2,100 萬美元費用。

The remaining decline largely reflects a combination of higher manufacturing cost per pound, unfavorable mix and investments in price and trade, which combined more than offset the carryover benefit of prior year pricing actions. Sales in our international segment, which includes sales to customers in all channels outside of North America, increased 4% versus the prior year quarter.

剩餘的下降主要反映了每磅製造成本上升、不利的組合以及價格和貿易投資的綜合影響，這些綜合作用超過了去年定價行動的結轉效益。 我們的國際部門銷售額（包括北美以外所有通路的客戶銷售額）比去年同期成長了 4%。

Price mix increased 5%, largely reflecting pricing actions announced this year to counter input cost inflation volume declined 1% due to our strategic decision to exit certain lower priced and lower margin business in Amea in early fiscal 2024 and to a lesser extent, the voluntary product withdrawal fees business exits in Amea will continue to be a headwind during the second quarter of fiscal 2025. Growth in key international markets outside of India temper the overall by a volume decline. International segment adjusted EBITDA declined $39 million to $51 million, about $18 million or about half of that decline related to the voluntary product withdrawal.

價格組合成長了5%，主要反映了今年為應對投入成本通膨而採取的定價行動，數量下降了1%，原因是我們的戰略決定是在2024 財年初退出Amea 的某些價格較低和利潤率較低的業務，並且在較小程度上，自願Amea 的產品提現費業務退出將繼續成為 2025 財年第二季度的阻力。 國際部門調整後 EBITDA 下降 3,900 萬美元至 5,100 萬美元，其中約 1,800 萬美元或約一半的下降與自願性產品撤回有關。

The remainder was largely driven by higher manufacturing cost per pound, which was partially offset by the benefit of inflation driven pricing actions. Moving to our liquidity position and cash flow, we continue to maintain a solid balance sheet with ample liquidity. We ended the first quarter with about $120 million of cash and 1 billion available under our global revolving credit facility.

其餘部分主要是由每磅製造成本上升推動的，而通膨驅動的定價行為的好處部分抵消了這一成本。 就我們的流動性狀況和現金流而言，我們繼續保持穩健的資產負債表和充足的流動性。 截至第一季末，我們擁有約 1.2 億美元現金，以及全球循環信貸額度下的 10 億美元可用資金。

Our net debt was about $3.9 billion, which puts our leverage ratio at three times. Last week, we increased our available liquidity $275 million by entering into a new $500 million term loan. We used the proceeds from the loan to pay off an existing $225 million term loan and $275 million of borrowings under our global revolving credit facility.

我們的淨債務約為 39 億美元，這使我們的槓桿率達到了三倍。 上週，我們透過簽訂新的 5 億美元定期貸款，將可用流動資金增加了 2.75 億美元。 我們利用貸款收益償還了現有的 2.25 億美元定期貸款和全球循環信貸安排下的 2.75 億美元借款。

As a result, it had no impact on our total debt, increased our available liquidity and our leverage ratio was not affected. In the first quarter. We generated $330 million of cash from operations, which despite the decline in earnings is about the same amount we generated last year due to favorable changes in working capital.

因此，它對我們的總債務沒有影響，增加了我們的可用流動性，我們的槓桿率也沒有受到影響。 在第一季。 我們從營運中產生了 3.3 億美元的現金，儘管收益下降，但由於營運資本的有利變化，我們去年產生的現金數量大致相同。

We expect further working capital improvements during the balance of the year as we execute our risk fracturing plan. Net capital expenditures were about $335 million as we finalize spending for Idaho capacity expansion and continued construction of our expansion projects in the Netherlands and Argentina.

我們預計，隨著我們執行風險分解計劃，營運資本將在今年餘下時間進一步改善。 隨著我們最終確定愛達荷州產能擴張的支出以及繼續建設荷蘭和阿根廷的擴張項目，淨資本支出約為 3.35 億美元。

We expect our capital spending in the first quarter will be our highest quarter for the year as it accounted for almost half of our updated annual capital spending target. During the quarter, we returned more than $133 million of cash to shareholders, including $52 million in dividends.

我們預計第一季的資本支出將是今年最高的季度，因為它幾乎占我們更新的年度資本支出目標的一半。 本季度，我們向股東返還了超過 1.33 億美元的現金，其中包括 5,200 萬美元的股息。

We spent $82 million to repurchase more than 1.4 million shares at an average price of just over $58 per share. Before discussing our outlook, let me first provide additional details on the restructuring plan we announced yesterday. As Tom noted, these were hard but necessary decisions to adjust to the current business trends. These actions will help us manage asset utilization rates, leverage are more efficient, lower cost production assets and reduce costs and expenses.

我們花費 8,200 萬美元以每股略高於 58 美元的平均價格回購了超過 140 萬股股票。 在討論我們的前景之前，讓我先提供有關我們昨天宣布的重組計劃的更多細節。 正如湯姆指出的那樣，為了適應當前的業務趨勢，這些都是艱難但必要的決定。 這些行動將幫助我們管理資產利用率、槓桿效率更高、降低生產資產成本並減少成本和成本。

The actions include a 4% reduction action in our global headcount and the elimination of certain unfilled job positions. We are the impairments and family. We currently estimate that these actions will generate total savings of approximately $55 million in fiscal 2025, with about third benefit in cost of sales and two thirds benefiting SG&A expenses.

這些行動包括全球員工人數減少 4% 以及取消某些空缺職位。 我們是殘障者和家人。 我們目前估計，這些行動將在 2025 財年總共節省約 5,500 萬美元，其中約三分之一受益於銷售成本，三分之二受益於銷售成本。

We've incorporated these savings in our updated fiscal 2025 outlet. We expect further benefits in fiscal 2026 with estimated annualized savings of about $85 million. We expect to record a $200 million to $250 million pretax charge associated with the restructuring, most of which we expect to record in the second quarter.

我們已將這些節省的費用納入更新後的 2025 財年門市。 我們預計 2026 財年將帶來更多效益，預計每年節省金額約 8,500 萬美元。 我們預計將記錄與重組相關的 2 億至 2.5 億美元稅前費用，其中大部分預計在第二季記錄。

About 20% of the charge is non-cash and primarily reflects the accelerated depreciation of assets that are Cornell facility. The remaining 80% are cash charges comprised of cost of contracted raw potatoes that will not be used due to the production line curtailments, the tear down and other cleanup costs associated with permanently closing the Cornell production facility, severance and other employee related costs associated with the reduction in our workforce and other miscellaneous restructuring costs.

大約 20% 的費用是非現金的，主要反映了康乃爾大學設施資產的加速折舊。 其餘80% 是現金費用，包括因生產線縮減而無法使用的合約生馬鈴薯成本、與永久關閉康乃爾生產設施相關的拆除和其他清理成本、遣散費和與康乃爾大學生產設施相關的其他員工相關成本。

Additionally, we've scrutinized every project and every dollar of capital. As a result, we now expect capital expenditures in fiscal 2025 of approximately $750 million, which is down $100 million from our plan entering the year.

此外，我們也仔細審查了每個項目和每一美元資本。 因此，我們現在預計 2025 財年的資本支出約為 7.5 億美元，比我們今年的計畫減少了 1 億美元。

A significant portion of the reduction reflects deferring the build and implementation of the next phase of our ERP system, which once built will be deployed first in our manufacturing plants in North America, the remaining decline is largely due to deferring or canceling modernization projects due to the current operating environment.

減少的很大一部分反映了我們 ERP 系統下一階段的建設和實施的推遲，該系統一旦建成將首先部署在我們北美的製造工廠中，剩餘的下降主要是由於推遲或取消現代化項目所致。的運作環境。

While the next phase of the ERP. bills and implementation has been deferred. We are committed to the benefits that an integrated system will deliver but are prioritizing the investments needed to complete our strategic projects in the Netherlands and Argentina. As it relates to next year's capital expenditures are currently targeting a notable decrease in spend as we expect our strategic capacity expansion projects will be completed by the end of this fiscal year.

而下一階段的ERP。法案和實施已被推遲。 我們致力於利用整合系統帶來的好處，但優先考慮完成我們在荷蘭和阿根廷的戰略項目所需的投資。 由於與明年的資本支出相關，目前我們的目標是大幅減少支出，因為我們預計我們的策略產能擴張專案將在本財年年底前完成。

In fiscal 2026. We expect expenditures for based capital and modernization efforts will be in line with our annual depreciation and amortization expense. In addition, we expect to spend approximately 150 million for environmental capital projects at our manufacturing facilities.

到 2026 財年。 此外，我們預計將花費約 1.5 億美元用於我們製造工廠的環境資本項目。

Our manufacturing processes involved, water intake and waste handling and disposal activities, which are subject to a variety of environmental laws and regulations, along with the requirements of permits issued by governmental authorities. To comply with these regulations, we expect the laws in the states in which we operate will require us to spend approximately $500 million over the next five years. The estimate to comply may vary based on changes in regulations and other factors.

我們的製造過程涉及取水以及廢物處理和處置活動，這些活動受到各種環境法律和法規以及政府當局頒發的許可證的要求的約束。 為了遵守這些法規，我們預計我們營運所在州的法律將要求我們在未來五年內支出約 5 億美元。 遵守的估計可能會根據法規的變化和其他因素而有所不同。

We're evaluating options to less than these expenditures, including the potential of government incentives. And lastly, fiscal 2026 capital expenditures may include costs to restart. The next phase consists past practice will provide a specific capital spending target for next year when we provide to our fiscal 2026 outlook in late July.

我們正在評估低於這些支出的方案，包括政府激勵措施的潛力。 最後，2026 財年的資本支出可能包括重啟成本。 下一階段包括我們在 7 月下旬提供 2026 財年展望時，將根據過去的做法提供明年的具體資本支出目標。

Now turning to our updated fiscal 2025 outlook, we're continuing to target a net sales range of $6.6 billion to $6.8 billion on a constant currency basis or growth of 2% to 5%, with volume driving our sales growth for earnings, we expect to deliver at the low end of our target adjusted EBITDA range of $1.38 billion to $1.48 billion We're targeting the low end of the range due to higher manufacturing costs per pound, which relates to fixed cost deleveraging related to the temporarily curtailed lines in our plants as well as less favorable customer and product mix.

現在轉向我們更新的2025 財年展望，我們預計，以固定匯率計算，我們的淨銷售額目標將繼續保持在66 億至68 億美元之間，即增長2% 至5%，銷量將推動我們的銷售收入成長。去槓桿化有關。

These factors will put additional pressure on gross margins. We'll look to offset much of this pressure with the estimated 55 million of manufacturing supply chain and SG&A savings that we expect to generate from our restructuring plan as well as efforts to aggressively manage costs across the business. Other updates to our financial targets include reducing our adjusted SG&A target to between $680 million and $690 million from our previous range of $740 million to $750 million, increase.

這些因素將對毛利率造成額外壓力。 我們將透過重組計劃以及積極管理整個業務成本的努力，透過估計 5500 萬美元的製造供應鏈和 SG&A 節省來抵消大部分壓力。 我們財務目標的其他更新包括將調整後的 SG&A 目標從先前的 7.4 億美元至 7.5 億美元降低至 6.8 億美元至 6.9 億美元之間。

Our interest expense estimate by $5 million to approximately $185 million to account for higher average debt balances during the year and increasing our estimated full year effective tax rate to approximately 25% from approximately 24% to reflect a higher proportion of in from our International segment as well as other discrete items.

我們的利息支出預計將提高500 萬美元至約1.85 億美元，以應對年內較高的平均債務餘額，並將我們預計的全年有效稅率從約24% 提高至約25%，以反映國際部門的較高比例：以及其他離散項目。

In addition, since we're targeting the lower end of our adjusted EBITDA range, and since we've updated our estimates for interest expense and our effective tax rate, we reduced our adjusted diluted earnings per share target range to $4.15 to $4.35.

此外，由於我們的目標是調整後 EBITDA 範圍的下限，並且更新了利息支出和有效稅率的估計，因此我們將調整後稀釋每股收益目標範圍降低至 4.15 美元至 4.35 美元。

So in summary, we're responding to the current challenging environment by adjusting our spending to protect profitability and ensure positive free cash flow while continuing to invest and execute our strategy.

總而言之，我們正在透過調整支出來應對當前充滿挑戰的環境，以保護獲利能力並確保正的自由現金流，同時繼續投資和執行我們的策略。

Let me now turn it over to Tom for some closing comments.

現在讓我將其轉交給湯姆，請他發表一些結束語。

Thanks for that. I want to thank our Lamb Weston team for their average to deliver our first quarter results and for focusing on executing our near-term priorities to reinvigorate growth, improved customer share, drive operating efficiencies and aggressively manage costs or team will also continue to focus on our long-term strategies during this challenging environment. So when demand growth returns, historical leverage levels were better positioned to continue to support our customers and create value for our stakeholders.

謝謝你。 我要感謝我們的Lamb Weston 團隊平均交付了我們第一季的業績，並專注於執行我們的近期優先事項，以重振成長、提高客戶份額、提高營運效率並積極管理成本，否則團隊還將繼續專注於在這個充滿挑戰的環境中我們的長期策略。 因此，當需求成長恢復時，歷史槓桿水準可以更好地繼續支持我們的客戶並為我們的利害關係人創造價值。

Thank you for joining us today. Are now ready to take your questions.

感謝您今天加入我們。 現在準備好回答您的問題。

(Operator Instructions) Andrew Lazar, Barclays.

（操作員說明） 安德魯·拉扎爾，巴克萊銀行。

Great. Good morning, everybody. Tom, I guess my first question is around pricing come. I think you'd originally shared your expected price mix to be down low to mid single digit in the first quarter was positive. And I guess specifically in North America, there was also positive, as you mentioned, and I get to the impact from carryover pricing in North America from last year. But presumably you knew that was coming from trying to get a sense of what what was better yet on pricing in North America?

偉大的。 大家早安。湯姆，我想我的第一個問題是關於定價的。 我認為您最初分享的預期價格組合在第一季下降到低至中個位數是積極的。 我想特別是在北美，正如您所提到的，也有正面的影響，我從去年開始就了解到北美結轉定價的影響。 但想必您知道這是因為試圖了解北美定價方面哪些方面更好？

And is it that you make to retain customers and companies large customer negotiations were maybe more favorable than you might have expected? And obviously, the reason I ask because reduced, of course, for the supply demand imbalance, has investors more worried about the fate of both pricing and what's been obviously historically a very rational, no sort of environment. So that's just my first question.

您是否為了留住客戶和公司而進行了大客戶談判，結果可能比您預期的更有利？ 顯然，我問這個問題的原因當然是因為供需失衡的減少，讓投資者更加擔心定價的命運以及歷史上顯然非常理性的環境。 這只是我的第一個問題。

Yeah, Andrew. So the overall the pricing contracting season was in line with what we expected. Um, you know, we had a better mix and we have some carryover from last year, so that certainly played into it. But you know the pricing environment so that we experience was in line with what we expected. So it's really a lot of it. Some of it's mix in the first quarter in terms of overall sales pricing.

是的，安德魯。 因此，整個定價合約季節符合我們的預期。 嗯，你知道，我們有更好的組合，我們有一些去年的遺留物，所以這肯定發揮了作用。 但你知道定價環境，因此我們的體驗符合我們的預期。 所以真的很多。 就整體銷售定價而言，第一季的一些情況是混合的。

And so it did the encouraging thing to me as we've kind of stabilize the environment going forward. We've got through the contracting season, there was in line with what we expected coming into the contracting season based on the supply demand dynamics were operating in right now. So I feel good about where we're at.

這對我來說是一件令人鼓舞的事情，因為我們已經穩定了未來的環境。 我們已經度過了合約季節，根據目前的供需動態，這與我們對合約季節的預期一致。 所以我對我們現在的處境感覺很好。

I feel good about how we ended up their contract season or are they were in a really good position.

我對我們如何結束他們的合約賽季感到滿意，或者說他們處於一個非常好的位置。

Thank you, Thomas. And I know you generally have good visibility in your competitive set and sort of industry utilization levels. And I guess I'm curious if you've heard or seen other North American players from thinking about or taking similar sort of capacity reduction moves or if utilization at competitors is already much higher? And then what you're seeing at Lamb Weston because of some of your specific sort of challenges, really trying to get a sense of how quickly some of these potential reductions in a positive way or the supply demand imbalance, knowing that restaurant traffic trends will likely continue to be weak for some time. Thank you.

謝謝你，托馬斯。 我知道你們通常對自己的競爭環境和產業利用率水準有很好的了解。 我想我很好奇您是否聽說過或看到其他北美玩家考慮或採取類似的產能削減舉措，或者競爭對手的利用率是否已經高得多？ 然後，由於您面臨的一些特定挑戰，您在Lamb Weston 所看到的情況是，真正試圖了解其中一些潛在的減少以積極的方式或供應需求不平衡的速度有多快，因為知道餐廳客流量趨勢將可能會在一段時間內繼續疲軟。 謝謝。

Yeah, great question, Andrew. I think I'd say no, we made a really tough decisions here in the last couple of days based on the operating environment where we're in with restaurant traffic being challenged and we think it's going to continue to be challenged for the rest of this. We're making changes to manage Lamb Weston.

是的，很好的問題，安德魯。 我想我會說不，過去幾天我們根據我們所處的營運環境做出了一個非常艱難的決定，餐廳客流量受到挑戰，我們認為在接下來的時間裡它將繼續受到挑戰。 我們正在做出改變來管理蘭姆·韋斯頓。

And as you know, the what the competitive set does, they're going to manage your business, how they want to manage it. I have no some insight into what they may or may not do so, but the best interest of what we do to manage and make decisions as to manage this company and will continue to do that.

正如您所知，競爭者會做什麼，他們將按照他們想要的方式管理您的業務。 我不知道他們可能會或不會這樣做，但我們所做的管理和決策的最大利益是管理這家公司並將繼續這樣做。

I think you know, the the questions that everybody's we're going to get at there really has been asking is, you know, there's been a lot of capacity announcements. I think people are going to rethink some of those additions based on the environment and may pause on, but it remains to be seen. But time will tell as we work through the near term environment based on what we're I'll deal with around the globe.

我想你知道，我們要去那裡的每個人真正問的問題是，你知道，已經有很多產能公告。 我認為人們會根據環境重新考慮其中一些添加內容，並且可能會暫停，但這還有待觀察。 但時間會證明一切，因為我們將根據我們在全球範圍內處理的情況來確定近期環境。

Thanks so much.

非常感謝。

Ken Goldman, JPMorgan.

肯‧戈德曼，摩根大通。

Hi, thank you. I wanted to ask a little bit about the commentary about the $500 million on it might be spent for our environmental improvements in your plants. Can you walk us through a little bit more on where that's coming from what the time line is on that and maybe how you might be able to mitigate that a little bit and wherever that might really show up in your finance statements as well?

你好，謝謝。 我想問一下關於可能花費 5 億美元用於你們工廠環境改善的評論。 您能否向我們詳細介紹一下這種情況的根源，以及您如何能夠稍微減輕這種情況，以及這種情況可能真正出現在您的財務報表中的什麼地方？

Yeah, good morning, Ken. As it relates to the $500 million, again, this is related to primarily wastewater capital investments that will be needed at our manufacturing plants in order to continue to run them at current capacity levels.

是的，早安，肯。 由於涉及 5 億美元，這主要與我們的製造工廠所需的廢水資本投資有關，以便繼續以當前的產能水準運作。

So as we look at the timing of that, that's going to vary depending on different regular regulations and will provide more of an update on that as we give our specific guidance, we wanted to, though, frame it up in terms of a large capital expenditure over the next five years.

因此，當我們考慮這一時間安排時，這將根據不同的常規法規而有所不同，並且在我們給出具體指導時將提供更多更新，但我們希望以大資本的形式來構建它未來五年的支出。

And we will certainly be looking to other regulatory bodies, whether it be state, federal, et cetera, in terms of whether or not there's opportunities for any government incentives to less than that, but early in that process, and we'll provide updates as we move throughout.

我們當然會向其他監管機構尋求幫助，無論是州、聯邦等，看看政府是否有機會採取低於這一水平的激勵措施，但在此過程的早期，我們將提供最新信息當我們在整個過程中移動時。

Okay. Thank you for that. And then I certainly understand the decision to sort of from temporarily delayed or the rest of the ERP implementation, giving all the moving pieces in your business right now. Can you just walk us through a little bit on sort of what your I don't want to use the word sacrificing, but some of the choices that you made in delaying those plans have any impact to some of your medium-term financial targets on as it rolls present results, just given that the ERP implementation longer term, it is done and with some positive benefits in mind as well.

好的。 謝謝你。 然後我當然理解暫時推遲 ERP 實施或其餘 ERP 實施的決定，立即為您的業務提供所有移動部件。 您能否向我們介紹一下您的一些事情？ 我不想使用“犧牲”這個詞，但是您在推遲這些計劃時所做的一些選擇會對您的一些中期財務目標產生影響就目前的結果而言，考慮到ERP 實施的長期性，它已經完成，並且還帶來了一些積極的好處。

Yes. So as far as the ERP timing of the implementation after the last implementation, we paused work on future releases as we focused on the business and ensuring that we had stabilization. So in terms of timing of where we are in the process, it was an opportune time to pause that at that time, it does delay the benefits that we'll be able to obtain from the ERP.

是的。 因此，就上次實施後的 ERP 實施時間而言，我們暫停了未來版本的工作，因為我們專注於業務並確保穩定。 因此，就我們所處流程的時間安排而言，當時是暫停的合適時機，它確實延遲了我們能夠從 ERP 中獲得的收益。

But we're confident that once with capital spending and our major expansions occurring and being complete by the end of this this year, that will be able to restart that work and get those benefits over time as it relates to future guidance and you know the opportunity for that delay to effect that we don't see any major impact at this time.

但我們相信，一旦資本支出和我們的重大擴張發生並在今年年底完成，我們將能夠重新啟動這項工作，並隨著時間的推移獲得這些好處，因為它與未來的指導相關，你知道延遲發生的機會，我們目前沒有看到任何重大影響。

Great. Thanks so much.

偉大的。 非常感謝。

You bet.

你打賭。

Adam Samuelson,Goldman Sachs.

亞當·薩繆爾森，高盛。

Thank you. Good morning, everyone. For Tomorrow morning. I wanted to dig in a little bit just on the updated gross margin expectation for the year. Clearly a part of it is related to the product recall in the first quarter and that being a larger item and your thoughts on a couple of months ago, but you also alluded to lower or higher manufacturing costs on a per-pound basis, given given the production curtailments Was hoping you could maybe just put a little bit more context on the magnitude of those as we think about margins, any differences between the North America and international operations to consider?

謝謝。 大家早安。 為了明天早上。 我想深入了解今年更新的毛利率預期。 顯然，其中一部分與第一季的產品召回有關，而且是一個較大的產品以及您幾個月前的想法，但您也提到了每磅的製造成本較低或較高，因為當我們考慮利潤時，我們是否希望您能對減產的規模提供更多背景信息，以及北美和國際業務之間需要考慮的任何差異？

And how should we given the restructuring and timing of the closures? Is there any impact to the phasing of margins and earnings over the balance of the year that would differ from historic seasonality?

我們應該如何考慮重組和關閉時間？ 今年餘下時間的利潤率和收益階段是否會受到與歷史季節性不同的影響？

Yes. Great question, Adam. As it relates as explained, a lot of that is attributed attributable to the fixed cost deleveraging from the idle line that we do have in the plants. And we're also seeing less favorable channel mix within our segments.

是的。 好問題，亞當。 正如所解釋的那樣，其中很大一部分歸因於我們工廠閒置生產線的固定成本去槓桿化。 我們也發現我們的細分市場中的通路組合不太有利。

We are looking to offset a lot of that incremental costs with the $55 million of savings that we discussed. And another point that I just want to make relates to the modernization of our assets over time, which is something that we've been investing in.

我們希望透過我們討論的 5500 萬美元的節省來抵消大部分增量成本。 我只想說的另一點與我們的資產隨著時間的推移而現代化有關，這是我們一直在投資的東西。

And as we continue to monitor NI's, as we have been at American falls, for example, we have that lower cost manufacturing footprint that we don't necessarily have at some of these older plants. And that ensures with that modernization that we have more flexibility because not every plant is made the same.

當我們繼續監控 NI 的情況時，就像我們在美國福爾斯所做的那樣，我們擁有較低成本的製造足跡，而這些工廠中的一些老工廠不一定擁有這種低成本製造足跡。 這確保了我們在現代化過程中擁有更大的靈活性，因為並非每家工廠都是一樣的。

And so that's the reason why you'll see some of the decisions that we've made to idle capacity at different and different plants. And it's based on what those plants can make from a product perspective. So as we move throughout this year, our gross margin will be impacted because of that fixed cost deleveraging from.

這就是為什麼您會看到我們對不同工廠的閒置產能做出的一些決定的原因。 它基於這些工廠從產品角度可以生產的產品。 因此，隨著我們今年的發展，我們的毛利率將因固定成本去槓桿化而受到影響。

But as additional volume gets brought back on and we pull those lines back up, we're going to see that improvement.

但隨著額外的交易量恢復並且我們將這些線路拉回來，我們將看到這種改善。

Okay. And then just as I'm thinking about some of the key items in terms of the cost-saving plans, were updated CapEx spending, think about some of the early items that you're laying out as we think about 2026? Just to be clear, you lose an $85 million cost-saving target for in '26 that incremental to the 50 this year, that's total.

好的。 然後，正當我思考成本節約計畫方面的一些關鍵項目、更新的資本支出支出時，想想您在考慮 2026 年時部署的一些早期項目？ 需要明確的是，您在 26 年失去了 8,500 萬美元的成本節約目標，而今年則增加到了 50 個，總計。

So to a year on year or $35 million benefit . Just on the total CapEx piece, you allude to Bernadette on user base CapEx equals G&A, which I presume you're saying three, three, seven, five, the right go-forward rate or steps up more because Netherlands and in Argentina start depreciating plus the of the environmental CapEx, which for next year you said was 100 facilities to make sure we're all talking about the same numbers. Yes. So a couple of things there.

這樣一來，年比效益就達到了 3,500 萬美元。 就總資本支出而言，您提到了 Bernadette 的用戶基礎資本支出等於 G&A，我猜您是在說三、三、七、五，這是正確的前進率，或者因為荷蘭和阿根廷開始貶值而進一步提高再加上環境資本支出，您所說的明年將是100 個設施，以確保我們都在談論相同的數字。 是的。 有幾件事。

First, as it relates to the savings next year to $85 million will see an incremental $30 million next year because it's additive to the $55 million we're seeing this year. As it relates to DNA, it will be closer to $400 million, which will include the additional D&A related to the new plants that we bring online.

首先，由於與明年節省 8500 萬美元相關，明年將增加 3000 萬美元，因為它是我們今年看到的 5500 萬美元的補充。 由於與 DNA 相關，它將接近 4 億美元，其中包括與我們上線的新植物相關的額外 D&A。

And then that was there was another question in there that I missed it, for example. Well, so that leads us to effectively you're saying CapEx next year in the range of 500, 550 million plus or minus, I was right in that range of 50 million of environmental.

例如，還有另一個問題我錯過了。 好吧，這讓我們有效地知道，你所說的明年的資本支出在 500、5.5 億上下的範圍內，我在 5000 萬環境的範圍內是正確的。

Okay. That our cash. And then very helpful. The only other thing I want to say, I did also mention that there would be additional expenditures. And if and when we began the next phase of the ERP on top of the fee side.

好的。 那是我們的現金。 然後非常有幫助。 我唯一想說的是，我也提到會有額外的開銷。 我們是否以及何時在費用方面開始 ERP 的下一階段。

Okay. That's helpful. I will pass it on. Thank you

好的。 這很有幫助。 我會把它傳遞下去。 謝謝

Peter Galbo, Bank of America.

彼得‧加爾博，美國銀行。

Hey, guys, good morning. Thank you for all within all of that for taking the questions. I want to actually go back to Adam's question just on the gross margin in passive of idling lines and kind of test the other side of the argument. So in theory, right. And if those lines don't get pulled back off next year, let's just say it it does that mean structurally leave the margins lower?

嘿，夥計們，早安。 感謝您提出問題。 我實際上想回到亞當關於被動閒置線毛利率的問題，並測試論證的另一面。 所以理論上是對的。 如果明年這些生產線不被取消，那麼這是否意味著結構性地降低利潤率？

I mean, if the demand environment doesn't improve and those lines stay down, do we stay in a margin environment that looks more like, you know, the second through fourth quarter of this year, simply because that fixed cost deleverage doesn't go away? Or do you have potential in there to further mitigate Alt-A incremental 30 million of cost savings for next year?

我的意思是，如果需求環境沒有改善並且這些線保持在較低水平，我們是否會繼續處於看起來更像是今年第二季度到第四季度的利潤率環境，僅僅是因為固定成本去槓桿化沒有實現離開？ 或者您有潛力進一步減輕 Alt-A 明年節省的 3000 萬美元增量成本？

Yes. So Peter, the the actions we've taken to address your operating environment we're in right now. And certainly, we'll further just said, Tom is going how she talked about it in terms of gross margin impact from such, that's going to persist in the near term. However, um, we believe in, you know, restaurant driver will rebound in that category.

是的。 Peter，我們為解決您目前所處的操作環境所採取的行動。 當然，我們會進一步說，湯姆正在談論她如何談論這種情況對毛利率的影響，這將在短期內持續存在。 然而，嗯，我們相信，你知道，餐廳司機會在這一類別中反彈。

You will return to growth, so to speak. And so it's important as do we make these decisions with which are challenging to make. But but but we're also going we're also making these decisions looking at the future of the growth of the category. We've had Moderna using our footprint over the past several years in terms of the capital we put in this business.

可以這麼說，你將恢復成長。 因此，重要的是我們要做出這些具有挑戰性的決定。 但是但是我們也在做出這些決定，並著眼於該類別成長的未來。 過去幾年，Moderna 一直在利用我們在這項業務上投入的資金。

And so I view this as a short term issue and we got to get through a period of time and see what restaurant traffic does. We've seen trends improve in the first quarter. As we said in our comments sequentially, although they're still down, but we're seeing some traction.

因此，我認為這是一個短期問題，我們必須度過一段時間，看看餐廳的客流量如何。 我們看到第一季的趨勢有所改善。 正如我們在評論中所說的那樣，儘管它們仍然下降，但我們看到了一些牽引力。

So this is the short term, some management decision. But the great thing I am confident in that with our new assets coming online, you know, in China in the Netherlands in America, for falls in Argentina, covenant of we modernize our footprint.

所以這是短期的一些管理決策。 但最棒的事情是，我對我們的新資產充滿信心，在中國、荷蘭、美國、阿根廷等地上線，我們的足跡將會現代化。

We're well positioned when the category rebounds that will be will come out of this software suite as ever.

當該類別反彈時，我們將處於有利位置，該軟體套件將一如既往地出現。

Okay. Thanks for that, Tom. And I bring that beyond. Just the Just a clarification on the SG&A reduction. And I think it's like 60 million at the midpoint from I think you said two thirds of the 55 million from cost-saving goes to SG&A. So that doesn't make up a whole bucket. Just what's the rest of the reduction? Is it compensation expense?

好的。 謝謝你，湯姆。 我把這一點帶到了更遠的地方。 只是對 SG&A 削減的澄清。 我認為中間值大約是 6000 萬，我想你說過成本節約的 5500 萬中的三分之二都用於 SG&A。 所以這並不能構成整個桶子。 剩下的削減額是多少？ 是補償費用嗎？

Like how should we think about that the rest of the reduction in SG&A and SG&A guidance yet?

例如我們應該如何看待 SG&A 和 SG&A 指導的其餘減少？

Yes, a lot of it's people-related costs.

是的，其中很大一部分是與人員相關的成本。

Got it. Thank you.

知道了。 謝謝。

Tom Palmer, Citi.

湯姆·帕爾默，花旗銀行。

Morning and thanks for the question. I just wanted to follow-up on the composition and the sales growth a quarter ago. I think the expectation was for flattish price mix for the year and then growth coming from volume.

早安，謝謝你的提問。 我只是想跟進一個季度前的組成和銷售成長。 我認為今年的預期是價格組合持平，然後是銷售成長。

Is this still the expectation or are there any shifts between between these two items?

這仍然是預期嗎？

Yeah, thanks for the question, Tom. That is still the expectation for the remainder of the year is for this to be driven by volume.

是的，謝謝你的提問，湯姆。 今年剩餘時間的預期仍然是由銷售所驅動。

Okay. Thank you. And I guess just on that, I wanted to kind of understand the discussion on fixed cost deleverage.

好的。 謝謝。 我想就這一點，我想了解關於固定成本去槓桿化的討論。

So it sounds like the volume outlook for the year was little change. And so kind of what's being cited is that added margin pressure is closing the lines? I would think that closing line ultimately has benefits for profitabilities. So I guess why the added overhang and again, it sounds like the fixed cost deleverage is not now it's unchanged.

因此，聽起來今年的銷售前景變化不大。 有人提到，額外的利潤壓力正在關閉生產線？ 我認為收盤線最終對獲利能力有好處。 所以我猜為什麼會增加懸而未決的問題，而且聽起來固定成本去槓桿化現在並沒有改變。

Yes. So the permanent capacity curtailment at Cornell, that is a benefit feed temporarily curtailed line at throughout our footprint. We have the same fixed costs that are being we allocated over fewer pounds, if you will. And so that's where the deleveraging is occurring. And we are in the process of also managing down our inventories. We have a very high inventory level.

是的。 因此，康乃爾大學的永久性產能削減，對我們整個足跡的生產線的暫時削減是有好處的。 如果你願意的話，我們有相同的固定成本，但我們分配的英鎊更少。 這就是去槓桿化發生的地方。 我們也在管理庫存。 我們的庫存水準非常高。

And so we take into combination running less so that we can get our inventory is into a better place as we end this fiscal year.

因此，我們減少了組合運行，以便在本財年結束時使我們的庫存處於更好的位置。

Okay. Thank you.

好的。 謝謝。

I guess I just struggle with why this wasn't factored in a quarter ago if the volume outlook is so little change, but all we can talk about whether .

我想我只是想知道，如果銷量前景變化如此之小，為什麼一個季度前沒有考慮到這一點，但我們只能討論是否。

Thank you.

謝謝。

Robert Moskow, TD. Cowen.

羅伯特·莫斯科，TD。考恩.

Thanks for the question. two things. Is it fair to say that pricing goes negative for the rest of the year in North America? Because I think you still have to give incentives to foodservice customers to get them to come back after the ERP disruption. So can you give us an update on how that's going this? Have you started that yet? Or is there a lot more acceleration to do? And I had a follow-up after.

謝謝你的提問。 兩件事。 北美今年剩餘時間的定價為負值是否公平？ 因為我認為你仍然需要激勵餐飲服務客戶，讓他們在 ERP 中斷後回來。 能為我們介紹一下最新進展嗎？ 你開始了嗎？ 還是還有更多的加速工作要做？ 之後我進行了跟進。

Yeah. So our current pricing environment again is in line with what we anticipated for this year. And as you know, from them for the kind of how we're working on the foodservice channel, so to speak, Tom, you know, it's as we do every year, it's on an account-by-account basis, silver manager that with great detail in terms of customer interaction, the larger contracted pricing discussions, like I said, are largely behind us. So, you know, as we move forward, it's really going to be on an account-by-account basis in the market in the foodservice channel and the teams managing that.

是的。 因此，我們目前的定價環境再次符合我們今年的預期。 如你所知，從他們那裡了解我們在餐飲服務管道上的工作方式，可以這麼說，湯姆，你知道，就像我們每年所做的那樣，它是在逐個帳戶的基礎上進行的，白銀經理正如我所說，隨著客戶互動方面的詳細信息，更大的合約定價討論基本上已經過去了。 所以，你知道，隨著我們的前進，餐飲服務管道和管理團隊實際上將在市場上逐一帳戶地進行。

We have a high level of visibility to solid the actions we're taking, but it's going to continue to play out over the coming months and quarters. And if I could just add, Tom, I just want to emphasize that the overall pricing environment, it's competitive, but it's been disciplined.

我們有很高的知名度來鞏固我們正在採取的行動，但它將在未來幾個月和幾季繼續發揮作用。 湯姆，如果我可以補充一點的話，我只想強調整體定價環境具有競爭力，但也受到嚴格約束。

And as Tom said, our pricing investments for the year is continues to be on track. We will see greater pricing investments, though during the balance of this year relative to the first quarter. And so we will see some some negative price mix.

正如湯姆所說，我們今年的定價投資繼續走上正軌。 儘管相對於第一季而言，今年餘下的時間裡，我們將看到更多的定價投資。 因此，我們會看到一些負面的價格組合。

Okay. So if it's going to step out as we are, yes, as we expected, though, have gotten it later, but that's fine.

好的。 因此，如果它要像我們一樣走出去，是的，正如我們所期望的那樣，儘管後來才得到它，但這很好。

And Mike, my follow-up is, you know, effect, I know you don't like these hypotheticals, but like a year from now, but let's say demand is unchanged or just not getting any worse. And you've made all these capacity reductions and they're still in place.

麥克，我的後續行動是，你知道，效果，我知道你不喜歡這些假設，但就像一年後，但假設需求沒有變化，或者只是沒有變得更糟。 您已經削減了所有這些產能，而且它們仍然存在。

Is that sufficient to get the industry supply demand come back in balance that alone enough? And then where do you think utilization would be in that scenario compared to where it is now?

光是這一點就足以讓業界供需恢復平衡嗎？ 那麼，與現在相比，您認為在這種情況下利用率會如何？

Yeah. So I'm not going to get into hypotheticals, but all I'll go back to some of the comments I made earlier. Driver is the industry in total. Some are all fields. We made our decisions based on what's best for the for the Company in terms of how our taking actions. And yes, I think it remains to be seen overall at the industry will do.

是的。 所以我不會進行假設，但我會回到我之前發表的一些評論。 驅動力是整個產業。 有些都是領域。 我們根據採取行動的方式對公司最有利的方式做出決定。 是的，我認為整個產業的表現還有待觀察。

But again, there's there's capacity announcements that maybe pause, Tom, but it's again, is we're just we're in a trend and time watch in terms of restaurant traffic. And as we move through the next several quarters fully, and we are closely monitoring restaurant traffic that's going to determine not only for Lamb Weston but for the industry, but potentially additional actions that would go take in terms of getting this thing about sales and supply demand.

但同樣，湯姆，容量公告可能會暫停，但我們只是處於餐廳客流量的趨勢和時間觀察中。 隨著我們全面度過接下來的幾個季度，我們正在密切監控餐廳客流量，這不僅將決定蘭姆韋斯頓，也將決定整個行業，而且在銷售和供應方面可能會採取額外的行動要求。

Okay. All right. Well, thank you.

好的。 好的。 嗯，謝謝。

Rob Dickerson, Jefferies.

羅布·迪克森，杰弗里斯。

Great. Thanks so much. So I just kind of first question is just on some of the share loss rate clearly coming out of the ERP disruption in Q three, maybe out a little bit better in Q1. But same time, it sounds like a fair amount of the volume pressure North America, at least in Q1 was still from the share loss on. And then secondly, you know, as we think through kind of the rest of the year, especially the back half as you lap that there is time this implies nice lifts, right? That should come as you get that share back.

偉大的。 非常感謝。 所以我的第一個問題是第三季 ERP 中斷明顯導致的一些份額損失率，也許第一季會好一點。 但同時，北美市場的銷售壓力似乎相當大，至少在第一季仍來自份額損失。 其次，你知道，正如我們在今年餘下的時間裡思考的那樣，特別是當你繞圈時的後半段，這意味著有很好的提升，對吧？ 當你拿回那份份額時，這應該會發生。

So I'm just curious if you could provide any color as to maybe how the share regain D&O progression might be comments.

因此，我很好奇您是否可以提供任何有關股票如何重新獲得 D&O 進展的資訊。

Yeah. So probably we we are seeing some business wins and we will start seeing it in Q3 and Q4 this fiscal year. And so those are known things. The team that that kind of cloud that is the base business with restaurant traffic being challenged, volumes are down some of our key accounts across the board.

是的。 因此，我們可能會看到一些業務的勝利，我們將在本財年的第三季和第四季開始看到它。 這些都是已知的事。 團隊認為，這種雲端作為基礎業務，餐廳流量受到挑戰，我們的一些關鍵客戶的數量全面下降。

So, you know, while while we're confident in the back half in terms of the business we're bringing in some we're closely monitoring what's what's happening with our base accounts. And also we're in the market. We're winning customers back.

所以，你知道，雖然我們對下半年的業務充滿信心，但我們正在密切關注我們的基本帳戶的情況。 而且我們也在市場上。 我們正在重新贏得客戶。

But you know, together be a little murky based on what's going on of restaurant traffic right now, the back half of the year, yes.

但你知道，根據現在（今年下半年）餐廳客流量的情況，整體情況會有點模糊，是的。

Okay. Okay. Fair enough. And then just another quick. The Board for me is just the on the plant closure. I'm not sure if you can quantify maybe just kind of, you know, as a percent of your total global and North America capacity on kind of what what that estimate is that just text?

好的。 好的。 很公平。 然後再快一點。 董事會對我來說只是負責工廠關閉。 我不確定你是否可以量化，你知道，作為你的全球和北美總容量的百分比，估計是什麼？

Hey, good morning. Thank you for your questions. Just building on the last one on the tunnels facility, any context around relative manufacturing costs versus other newer facilities? And I appreciate you sizing capacity there.

嘿，早安。 謝謝您的提問。 只是在隧道設施的最後一個設施的基礎上進行建設，與其他較新設施相比，有沒有關於相對製造成本的背景資訊？ 我很感謝您調整那裡的容量。

And then also any other color on sizing and time line for the plant curtailed?

然後還有其他關於工廠規模和時間線的顏色縮減嗎？

Yes. So just in terms of the kind of illnesses, Tom, it's it was a difficult decision and you know, it's impactful to that community stable, all those things, and we didn't take any of that lightly. And but perhaps utilities cost to produce. You know, we go through the litany of things you go through when you make these decisions and, you know, potential future capital expenditures required in the facilities we have right now currently.

是的。 湯姆，就疾病類型而言，這是一個艱難的決定，你知道，這對社區穩定以及所有這些事情都有影響，我們並沒有掉以輕心。 但也許公用事業的生產成本很高。 你知道，當你做出這些決定時，我們會經歷一連串的事情，你知道，我們現在擁有的設施未來可能需要的資本支出。

And then you just go through the decision matrix and that was what drove specifically the decision to close Cornell. Again, Goldstar, you're impacting a lot of things, um, but the long term, um, footprint of the Company today, it was arises to do.

然後你只需瀏覽一下決策矩陣，這就是決定關閉康乃爾大學的具體原因。 再說一次，金星，你正在影響很多事情，嗯，但從長遠來看，嗯，公司今天的足跡，這是要做的。

Okay, thank you. And then you also called out some strong volume trends internationally outside of Europe. Maybe some additional color there, key regions and how much is new international production enabling us? Yes. No. As it relates to our international business, we are seeing some good wins and particularly in the Asia Pacific region. And that's where we're seeing a large pickup there also in Latin America and which is positive in light of our upcoming plans that will be coming online in the spring of next year.

好的，謝謝。 然後您還指出了歐洲以外的國際上一些強勁的銷售趨勢。 也許還有一些額外的顏色、關鍵區域以及新的國際生產對我們有多大幫助？ 是的。 不會。 這就是我們在拉丁美洲看到的大幅回升，鑑於我們即將在明年春季上線的計劃，這是積極的。

Year. So that's driving a lot of it. As Tom was alluding to some customer wins. A lot of our customer wins have been in the international segment, and we're going to see much of that began to hit in Q3.

年。 所以這推動了很多。 正如湯姆提到的一些客戶勝利。 我們贏得的許多客戶都來自國際市場，我們將看到其中大部分在第三季開始出現。

Great. Thank you.

偉大的。 謝謝。

You bet.

你打賭。

Matt Smith, Stifel .

馬特史密斯，史蒂菲爾。

On the input pricing has been relatively in line with your expectations. But in part of the explanation for taking EBITDA to the low end, you reference higher price investments are higher investments in price and trade than originally anticipated. So can you hear me on balance those two dynamics against each other? Are you seeing perhaps a bit more price investment in the foodservice business and that's still to come? And that's the difference?

在投入定價上已經比較符合您的預期。 但在將 EBITDA 降至低端的部分解釋中，您提到較高價格的投資是指比最初預期更高的價格和貿易投資。 那你能聽我談談如何平衡這兩種動態嗎？ 您是否看到餐飲服務業的價格投資可能會增加一些，而且這種情況仍在繼續？ 這就是差別嗎？

Yes. No, Matt, as it relates to our pricing investments, it's fair to say that our pricing is expected for the year. Most of it's on a cost basis as it was relating to our gross profit in first quarter, you did see pricing was up, I think positive 2% from, but much of that investment, as I think Tom may have alluded to, is going to be heading beginning in second quarter.

是的。 不，馬特，因為這與我們的定價投資有關，可以公平地說，我們今年的定價是預期的。 大部分都是以成本為基礎的，因為它與我們第一季的毛利有關，你確實看到定價上漲了，我認為正增長了2%，但正如我認為湯姆可能提到的那樣，大部分投資都在進行中將於第二季開始。

Maybe for that, I'll leave it there. Thank you.

也許為此，我會把它留在那裡。 謝謝。

Carla Casella with JPMorgan.

卡塞拉 (Carla Casella) 與摩根大通 (JPMorgan) 合作。

Hi. I'm wondering on the 200 to 250 million of charges, can you bucket that a little bit in terms of the different items that you talked about? And then also in the 20% non-cash, is that mostly the potato inventory write-down or is another piece of it? That's gone cash versus cash?

你好。 我想知道200到2.5億的費用，你能根據你談到的不同項目來稍微區分一下嗎？ 然後，在 20% 的非現金中，這主要是馬鈴薯庫存減記還是其中的一部分？ 這是現金與現金的對決嗎？

Yes. So the 20% that's non-cash, that's mainly going to be related to the accelerated depreciation on the kind of our facility as it related to the balance of the value that we had placed there. The remainder is largely going to be attributable to cash expenditures were related to contracted potatoes that we will be paying for, but will not need related to the curtailments in Cornell. And then the other production curtailments, that's about 60% of the cash costs.

是的。 因此，20% 是非現金，這主要與我們設施類型的加速折舊有關，因為它與我們放置在那裡的價值餘額有關。 其餘部分主要歸因於與我們將支付的合約馬鈴薯有關的現金支出，但不需要與康乃爾大學的削減有關。 然後是其他減產，約佔現金成本的 60%。

Okay, great. And then given the lower volumes this year and that potato contracts that you won't be overpaying for avenues, will that change any of your negotiations with your supplier for next year or your contract pricing for next year?

好的，太好了。 然後，考慮到今年產量較低，而且您不會為馬鈴薯合約支付過高的費用，這是否會改變您明年與供應商的談判或明年的合約定價？

No. So we'll as we do every year, we'll as we go through the process, will provide insights at the appropriate time that we do every year, which is typically talk to our April call of July. Um, you know the so we're on the front end of those negotiations, but we don't we will not expect any changes in terms of how we go through the processes that are based on this. It may change our needs, but that's about it.

不會。 嗯，你知道，所以我們處於這些談判的前端，但我們不會期望基於此的流程的方式會發生任何變化。 它可能會改變我們的需求，但僅此而已。

Okay. And then I guess my thought is if the volumes are lower, would you see a material step up in the pricing? Are you getting a lot of volume-based discounts that you may lose?

好的。 然後我想我的想法是，如果銷量較低，您會看到定價大幅上漲嗎？ 您是否獲得了大量可能會失去的批量折扣？

No, I'm not going to comment on that. We typically those were right in the middle of those negotiations. So I'm not going to come in and talk about the specifics of how that works.

不，我不會對此發表評論。 我們通常是在這些談判的中間。 所以我不會進來談論它是如何運作的細節。

Okay. And then just one quick question on leverage target of any change to your current leverage target?

好的。 然後是一個關於槓桿目標的簡單問題，您目前的槓桿目標是否會改變？

No changes. That said, as I said, 3.5 times, that's correct. And I think as I shared Wairakei times right now, I'm comfortable with that as it provides optionality.

沒有變化。 也就是說，正如我所說，3.5 倍，這是正確的。 我認為，當我現在分享懷拉基時間時，我對此感到滿意，因為它提供了選擇。

I think that's great. Thank you so much.

我認為那太好了。 太感謝了。

Thank you. That will conclude our question and answer session. At this time, I'd like to turn the call back over to Mr. Conway for any additional or closing remarks.

謝謝。 我們的問答環節到此結束。 現在，我想將電話轉回給康威先生，請他發表補充或結束語。

Thanks for joining the call today. As usual, if you want to serve Apollo call, please e-mail me, we can set up time for them.

感謝您今天加入通話。 像往常一樣，如果您想為 Apollo 呼叫提供服務，請給我發電子郵件，我們可以為他們安排時間。

That, again, thanks for joining the team that will conclude today's call. We appreciate your participation. And thanks. Thanks.

再次感謝您加入將結束今天電話會議的團隊。 我們感謝您的參與。 謝謝。 謝謝。