TreeHouse Foods Inc (THS) 2017 Q1 法說會逐字稿

Welcome to the TreeHouse Foods First Quarter 2017 Conference Call. This call is being recorded.

歡迎參加 TreeHouse Foods 2017 年第一季電話會議。此通話正在錄音。

At this time, I would like to turn the call over to TreeHouse Foods for the reading of the safe harbor statement.

此時，我想將電話轉給 TreeHouse Foods，以閱讀安全港聲明。

Good morning. Before we get started, I'd like to point out that we posted the accompanying slides for our call today on our website at treehousefoods.com/investor-relations.

早安.在我們開始之前，我想指出，我們在我們的網站上發布了今天電話會議的隨附幻燈片：treehousefoods.com/investor-relations。

This conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by the use of words such as guidance, may, should, could, expects, seeks to, anticipates, plans, believes, estimates, approximately, nearly, intends, predicts, projects, potential, promises or continue, or the negative of such terms and other comparable terminology.

本電話會議可能包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。前瞻性陳述包括所有不僅僅與歷史或當前事實相關的陳述，通常可以透過使用諸如指導、可能、應該、能夠、期望、尋求、預期、計劃、相信、估計等詞語來識別。 、大約、幾乎、打算、預測、項目、潛力、承諾或繼續，或此類術語和其他類似術語的否定。

These statements are only predictions. The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that may cause the company or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

這些陳述只是預測。這些前瞻性陳述中所描述的事件的結果受到已知和未知的風險、不確定性和其他因素的影響，這些因素可能導致公司或其行業的實際結果、活動水平、績效或成就與任何未來結果存在重大差異這些前瞻性陳述所表達或暗示的活動、績效或成就水準。

TreeHouse's Form 10-K for the period ending December 31, 2016, and other filings with the SEC discuss some of the risk factors that could contribute to these differences. You are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made when evaluating the information presented during this conference call. The company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in expectations with regard thereto or any other change in events, conditions or circumstances on which any statement is based. For the purpose of our discussion today, statements such as Private Brands or the former Private Brands business refer to the recently acquired TreeHouse Private Brands business. Private label, on the other hand, refers to the customer and corporate brand industry.

TreeHouse 截至 2016 年 12 月 31 日期間的 10-K 表格以及向 SEC 提交的其他文件討論了可能導致這些差異的一些風險因素。請注意，不要過度依賴此類前瞻性聲明，這些聲明僅代表評估本次電話會議期間提供的資訊時發表的日期。本公司明確不承擔任何義務或承諾傳播本文所含任何前瞻性聲明的任何更新或修訂，以反映與此相關的預期的任何變化或任何聲明所依據的事件、條件或情況的任何其他變化。就我們今天討論的目的而言，「自有品牌」或「前自有品牌業務」等表述是指最近收購的 TreeHouse 自有品牌業務。另一方面，自有品牌是指客戶和企業品牌產業。

I'd now like to turn the call over to the Chairman and Chief Executive Officer of TreeHouse Foods, Mr. Sam K. Reed.

我現在想將電話轉給 TreeHouse Foods 董事長兼執行長 Sam K. Reed 先生。

Thank you, P.I. Good morning, all, and welcome back to our TreeHouse. Dennis, Matthew and I will provide you with an early view of the year as well as a progress report on delivering our transformation through simplification. The launch of our 2017 campaign has generated a combination of significant strategic progress, strong organic growth and steady operational gains, thanks to private label integration and supply chain simplification. Our customers, especially those devoted to their own house brands, have welcomed our new go-to-market organization with commitment to delivering their TreeHouse promise of unmatched quality, value and service. While we have gotten off to an uneven start financially in the new year, the effects of these foundational changes can readily be detected in our food and beverage marketplace.

謝謝你，P.I.大家早安，歡迎回到我們的樹屋。丹尼斯、馬修和我將為您提供今年的初步展望以及透過簡化實現轉型的進度報告。由於自有品牌整合和供應鏈簡化，我們 2017 年活動的推出帶來了重大策略進展、強勁的有機成長和穩定的營運效益。我們的客戶，尤其是那些熱衷於自有品牌的客戶，歡迎我們新的市場進入組織，並承諾兌現他們對 TreeHouse 無與倫比的品質、價值和服務的承諾。雖然我們在新的一年的財務狀況開始不平衡，但這些根本性變化的影響可以在我們的食品和飲料市場中輕易地發現。

As the consumer spending element of gross domestic product posted its lowest quarterly gains since 2003, the entire grocery industry, retailers and suppliers alike, has struggled to sustain forward momentum, particularly in core categories and traditional channels as shown on Slide 4. In contrast to many others, particularly global brands, TreeHouse has posted another quarter of superior organic growth, thanks to our singular capability of responding to a continuously evolving marketplace. However short-term market conditions may vary, our competitive advantage will only grow as long-term macro trends in demographics, nutrition and technology favor the unique customer and consumer propositions that only private label affords.

由於國內生產毛額中的消費者支出部分錄得自2003 年以來的最低季度增幅，整個雜貨業、零售商和供應商都在努力維持前進勢頭，特別是在幻燈片4 所示的核心品類和傳統通路中。由於我們應對不斷變化的市場的獨特能力，TreeHouse 在許多其他品牌（尤其是全球品牌）中又實現了出色的有機增長。然而短期市場狀況可能會發生變化，隨著人口、營養和技術的長期宏觀趨勢有利於只有自有品牌才能提供的獨特客戶和消費者主張，我們的競爭優勢只會增強。

As often has been the case following large-scale consolidation and organizational realignment, our initial top line advances have temporarily outdistanced their bottom line counterparts. While this phenomenon has affected the quality of our first quarter earnings, I regard it as transitory in nature. The ways and means to achieve our strategic transformation and expand our margins are readily at hand. As Dennis and Matthew will soon elaborate, our early progress in integrating the former Private Brands and instilling the discipline of simplification across our broad customer base, product portfolio and supply chain constitutes a prelude to stronger performance to come.

就像大規模整合和組織重組後的情況一樣，我們最初的營收進步暫時超過了同行。雖然這種現象影響了我們第一季獲利的質量，但我認為它本質上是暫時的。實現我們的策略轉型和擴大利潤的方式方法已經唾手可得。正如丹尼斯和馬修很快將闡述的那樣，我們在整合前自有品牌以及在我們廣泛的客戶群、產品組合和供應鏈中灌輸簡化原則方面取得的早期進展，構成了未來更強勁業績的前奏。

Let me quote -- give you a few examples from a past quarter. First, with regard to customer portfolio strategy, pro forma organic growth of 4% with our large-scale strategic customers, the green box in our customer portfolio construct, illustrated on Slide 5, were led by gains in our Beverages and Baked Goods division serving the market's largest supermarket chains, mass merchants and warehouse clubs. This growth was matched by an approximately equal decline in revenue of red box customers, evidencing our strategic shift away from marginal contract packing of national brands.

讓我引用過去一個季度的一些例子。首先，就客戶組合策略而言，我們的大型策略客戶的預期有機成長為4%，我們的客戶組合結構中的綠框（如幻燈片5 所示）是由我們的飲料和烘焙食品部門的收益帶動的市場內最大的連鎖超市、量販店和倉儲俱樂部。這一增長與紅盒客戶的收入大致相同的下降相匹配，這證明了我們從國家品牌邊際合約包裝的策略轉變。

Next, category portfolio strategy. Renewed category leadership in single-serve beverages for first quarter branded revenues were flat, private label increased 25% and TreeHouse grew 50%. In aggregate, the double-digit shift expanding our green box presence, again on Slide 5, in growth categories, was paired with an offsetting decline in red box categories with limited growth and margin potential. Thirdly, simplification. Identification of 3,100 SKUs and 260 customers concentrated in no-growth, low-margin sectors are down for consolidation or discontinuation by year's end. Next, cost reduction. Confirmation that the Private Brands integration, related supply chain and parallel-headcount productivity programs are all on target and within budget.

接下來是品類組合策略。第一季單杯飲料領域品牌營收持平，自有品牌營收成長 25%，TreeHouse 營收成長 50%，重新佔據品類領導地位。總體而言，在投影片 5 中，我們的綠框業務在成長類別中出現了兩位數的變化，但與成長和利潤潛力有限的紅框類別的下降相抵消。第三，簡化。到年底，集中在無成長、低利潤行業的 3,100 個 SKU 和 260 個客戶將被確定進行整合或終止。其次，降低成本。確認自有品牌整合、相關供應鏈和平行員工生產力計畫均符合目標且在預算範圍內。

Also, with regard to strategic growth, extension of our e-commerce presence to include Snacks, which along with single-serve beverages are the 2 most frequently purchased food categories on Internet fulfillment sites. Expansion of our aseptic broth and on-trends beverage capacity was accompanied by announcement of the divestiture of our structurally challenged canned Soup and Infant Feeding business. And lastly, organizational development. All elements of our go-to-market supply chain, functional support and administrative service teams have been reoriented as legacy TreeHouse and Private Brands were united as one, under a new category rather than channel-based enterprise. This reorganization has also fostered the development of a highly-skilled category of operating line and functional staff management, ready to deliver our promise of transformation.

此外，在策略性成長方面，我們的電子商務業務擴展至包括零食，零食和單份飲料是網路履行網站上最常購買的兩種食品類別。在擴大我們的無菌肉湯和流行飲料產能的同時，我們也宣布剝離面臨結構性挑戰的罐裝湯和嬰兒餵養業務。最後，組織發展。我們的市場供應鏈、職能支援和行政服務團隊的所有要素都已重新定位，因為傳統的 TreeHouse 和自有品牌在一個新類別而非基於通路的企業下聯合為一個整體。此次重組也促進了高技能營運線和職能員工管理類別的發展，為實現我們的轉型承諾做好了準備。

After 4 decades observing the senior ranks of our industry, I am confident that once we identify a worthy successor to Dennis to lead this team in planning 2018 and beyond, we will once again have a full and permanent TreeHousehold capable of superior long-term strategic growth and shareholder value.

經過 4 年來對行業高層的觀察，我相信，一旦我們找到了 Dennis 的合適繼任者來領導這個團隊進行 2018 年及以後的規劃，我們將再次擁有一個完整且永久的 TreeHousehold，能夠實現卓越的長期戰略成長和股東價值。

With that, Dennis and Matthew will now address the operational and financial elements of our progress and outlook. I will return later with a summary of our strategic prospects, programs and probabilities. Dennis?

丹尼斯和馬修現在將討論我們的進展和前景的營運和財務要素。稍後我將總結我們的策略前景、計劃和可能性。丹尼斯？

Thanks, Sam. On our last earnings call, I used the term "momentum" to describe our close of 2016 and our start in 2017. Three months later, I can still feel the positive momentum, but this time with an additional 3 months of seeing growth in our core businesses. Let me give you an update on some of the changes we made to our organizational structure as seen on Slide 6, and how these changes are working out so far.

謝謝，山姆。在我們上次的財報電話會議上，我使用了「勢頭」一詞來描述我們 2016 年的結束和 2017 年的開始。三個月後，我仍然能感受到正面的勢頭，但這次我們的核心業務又多了三個月的成長。讓我向您介紹我們對組織結構所做的一些更改（如投影片 6 所示）的最新情況，以及這些變更到目前為止的實施情況。

On the positive side, the new sales organization is fully in place and doing a much better job of selling the products we make. I've heard from many members of our sales teams who are excited about these changes. By giving them a finite set of product categories to sell, our salespeople are now better able to provide customers with the in-depth knowledge necessary to sell our capabilities and strengths within a division of complementary products. It's great that our teams are excited about the change, but the most important criteria of success is whether we are doing a better job of selling. In that regard, our changes have been a resounding success.

從積極的一面來看，新的銷售組織已經完全到位，並且在銷售我們生產的產品方面做得更好。我從我們銷售團隊的許多成員那裡聽說他們對這些變化感到興奮。透過向他們提供一組有限的產品類別來銷售，我們的銷售人員現在能夠更好地為客戶提供必要的深入知識，以銷售我們在互補產品部門中的能力和優勢。我們的團隊對這項變化感到興奮，這很好，但成功的最重要標準是我們在銷售方面是否做得更好。從這方面來說，我們的改變取得了巨大成功。

Let me take a minute now to describe how well things are going. When looking at the year-over-year sales, we have to first take into consideration that we exited some very low margin but relatively high-volume business in our co-pack and foodservice distribution channels. Last year, we made a decision to exit a large co-pack arrangement for a snack bar customer and cease production at our Azusa plant in the first quarter as a result of a lower volumes. In addition, we exited some co-pack cereal and a low-margin foodservice cooking business. Combined, these 3 actions alone caused a decrease of over 16 million pounds in the first quarter compared to the same period last year. These lost sales were planned by us and were part of our rationale for the 2017 budget. Excluding these 3 large items, our overall growth in tonnage would have been 3.8% compared to last year as you see in Slide 7. This growth was primarily in our retail channel and includes most of our product categories. And even more critical is that excluding those 3 large items, all of which were exclusively former ConAgra Private Brands business, they showed true tonnage of 5.9% growth in February and March. This makes 2 straight quarters of year-over-year growth in the Private Brands retail business. I think this points to the success we are having with our new sales organization structure. They are better trained and better in tune to our customers' needs and strategies, resulting in greater sales success.

現在讓我花一點時間來描述事情的進展。在查看同比銷售額時，我們必須先考慮到我們在聯合包裝和餐飲服務分銷管道中退出了一些利潤率極低但銷量相對較高的業務。去年，我們決定退出一家小吃店客戶的大型聯合包裝安排，並因產量下降而在第一季停止我們阿蘇薩工廠的生產。此外，我們也退出了一些聯合包裝穀物食品和低利潤的餐飲烹飪業務。光是這 3 項措施加在一起，就導致第一季與去年同期相比減少了超過 1,600 萬英鎊。這些銷售損失是我們計劃好的，也是我們 2017 年預算理由的一部分。排除這 3 個大型項目，與去年相比，我們的整體噸位成長將達到 3.8%，如幻燈片 7 所示。這種成長主要發生在我們的零售通路，包括我們的大部分產品類別。更關鍵的是，排除這三個大項目（全部都是前康尼格拉自有品牌業務），它們在 2 月和 3 月的真實噸位增長了 5.9%。這使得自有品牌零售業務連續兩個季度同比增長。我認為這表明我們新的銷售組織結構取得了成功。他們接受過更好的培訓，並且能夠更好地適應客戶的需求和策略，從而取得更大的銷售成功。

Our other big focus has been on simplification. Our division teams have made great strides in identifying SKUs to either eliminate entirely or to consolidate with other very similar formulations. Our goal is to identify 25% reduction in SKUs with only a minor effect on top line sales. However, any shortfall in sales would be more than offset through higher gross margins. Our progress has been good, but eliminating and consolidating SKUs takes time as we need to work both internally in formulation changes, work with our customers on approving the changes and then running down our existing inventories of materials, containers and labels that will be affected by the change. Our goal is to minimize write-downs of discontinued inventory by using up existing stock whenever possible.

我們的另一個重點是簡化。我們的部門團隊在確定 SKU 方面取得了巨大進步，可以完全消除這些 SKU，也可以與其他非常相似的配方進行整合。我們的目標是確定 SKU 減少 25%，同時對營收影響很小。然而，任何銷售額的下降都可以透過更高的毛利率來抵銷。我們的進展良好，但消除和整合 SKU 需要時間，因為我們需要在配方變更方面進行內部工作，與客戶合作批准變更，然後減少將受到影響的材料、容器和標籤的現有庫存。改變。我們的目標是盡可能利用現有庫存，最大限度地減少停產庫存的減記。

In terms of the new segments, Matthew will provide more details on the financial results, but I want to cover some of the key developments there. Our decision to drop the very low-volume customers had happened a bit faster than our execution on lowering our plant operating costs. As a result, we saw margin pressure in a variety of our product categories. This was combined with some input cost changes, particularly in our snack nuts division, that were not immediately offset with increased pricing. So even some categories like dressings and sauces, that were not affected by the big co-pack business losses, saw some margin erosion. And finally, we saw margins drop in our single-serve coffee category as competitive activity has increased and we took aggressive actions to win more customers. In fact, our retail filtered coffee volumes in the quarter more than doubled compared to the first quarter of last year, but our gross margins grew only marginally. Our margins were pressured by both pricing, and temporary but duplicative transportation costs as we struggled a bit in the quarter to meet the increased demand for single-serve coffee. We are working on internal plans to focus on efficiency in that critical portion of the business to begin to reverse the margin trends of the last few quarters.

就新的細分市場而言，馬修將提供有關財務業績的更多詳細信息，但我想介紹其中的一些關鍵進展。我們放棄小批量客戶的決定比我們降低工廠營運成本的執行速度要快一些。因此，我們的各種產品類別都面臨著利潤壓力。這與一些投入成本的變化相結合，特別是在我們的零食堅果部門，這些變化並沒有立即被價格上漲所抵消。因此，即使是調味品和醬汁等未受聯合包裝業務大幅虧損影響的品類，利潤率也出現了一定程度的下降。最後，隨著競爭活動的增加以及我們採取積極行動來贏得更多客戶，我們的單份咖啡類別的利潤率下降了。事實上，本季我們的零售濾波咖啡銷售量比去年第一季增加了一倍多，但我們的毛利率僅小幅成長。我們的利潤受到定價和臨時但重複的運輸成本的壓力，因為我們在本季度在滿足單份咖啡日益增長的需求方面遇到了一些困難。我們正在製定內部計劃，重點關注業務關鍵部分的效率，以開始扭轉過去幾季的利潤率趨勢。

The good news is that our operating teams have identified a variety of areas to focus on over the balance of the year in order to realign the plant operations to reduce costs and take advantage of the efficiencies we are gaining through our simplification programs and increased volumes. Additionally, our divisional sales teams are working on targeted-pricing programs to recover margin lost through increasing input costs. I expect we'll see the same level of success in recovering input cost as we have with driving incremental volume in the first quarter. The realization of pricing, however, won't occur until the third quarter based on the normal time lag between acceptance and invoicing.

好消息是，我們的營運團隊已經確定了今年餘下時間要重點關注的多個領域，以便重新調整工廠運營，以降低成本並利用我們透過簡化計劃和增加產量而獲得的效率。此外，我們的部門銷售團隊正在製定目標定價計劃，以彌補投入成本增加而損失的利潤。我預計我們在收回投入成本方面將取得與第一季推動增量相同的成功水平。然而，根據接受和開立發票之間的正常時間間隔，定價要到第三季才會實現。

As we move into the back half of the year, we will see the benefits of the cost-saving programs we've implemented. Although the benefits will be better than we originally planned, they will be more back-half-year weighted. We expect that the margin profile of the first quarter will continue into the second quarter before we see meaningful growth in the second half. This improvement will also reflect the benefit we'll see from plants that are in the process of closing now.

當我們進入今年下半年時，我們將看到我們實施的成本節約計劃的好處。儘管收益會比我們最初計劃的要好，但它們將更多地在下半年加權。我們預計第一季的利潤率將持續到第二季​​度，然後我們才能在下半年看到有意義的成長。這項改進也將反映出我們將從目前正在關閉的工廠中看到的好處。

One last item to comment on is our systems integration work on Slide 8. Our IT teams are doing a tremendous job in converting the old systems to our TreeHouse platform. We're actually running a bit ahead of schedule on the conversions, which should allow us to finish the conversions in 2017 rather than waiting until the transition services agreement expires on February 1, 2018. We'll use the extra time to start the snack nuts system consolidation project this year with the goal of having the entirety of that segment on SAP early in 2018. This will be an enormous benefit to running that large and diverse product segment.

最後要評論的是我們在幻燈片 8 上的系統整合工作。我們的 IT 團隊在將舊系統轉換為 TreeHouse 平台方面做了大量工作。實際上，我們的轉換工作比計劃提前了一些，這應該能讓我們在 2017 年完成轉換，而不是等到過渡服務協議於 2018 年 2 月 1 日到期。今年我們將利用額外的時間啟動零食堅果系統整合項目，目標是在 2018 年初將整個該細分市場部署到 SAP 上。這對於營運龐大且多樣化的產品領域來說將是一個巨大的優勢。

So in summary, we are finding good sales opportunities within both legacy categories and the former Private Brands business. We believe this is due to more of our retail customers reassessing and refocusing on their own brands. TreeHouse is definitely in the right place to take advantage of that growth, and we are seeing real evidence of that in our shipments. However, we do need to intensify our focus on cost savings and internal efficiencies to convert the higher sales volumes into higher operating margins. We are confident we'll do that over the back half of the year.

總而言之，我們在傳統類別和前自有品牌業務中都找到了良好的銷售機會。我們相信這是由於更多的零售客戶重新評估並重新專注於自己的品牌。TreeHouse 絕對是利用這種增長的正確地點，我們在發貨中看到了這一點的真實證據。然而，我們確實需要加強對成本節約和內部效率的關注，以將更高的銷售量轉化為更高的營業利潤。我們有信心在今年下半年做到這一點。

I'll now turn it over to Matthew to give you more color on the first quarter earnings and our outlook for the balance of the year.

現在我將把它交給馬修，讓你更多地了解第一季的收益和我們對今年剩餘時間的展望。

Thanks, Dennis. Good morning, everyone, and thank you for joining our call. I'd like to kick off by giving you an update around the integration, turn next to the first quarter results, make a couple of comments around the sale of the Soup and Infant Feeding business which we announced last week and then wrap up with our outlook for the balance of 2017.

謝謝，丹尼斯。大家早安，感謝您加入我們的通話。我想先向您介紹有關整合的最新情況，然後轉向第一季度的業績，就我們上周宣布的湯和嬰兒餵養業務的出售發表一些評論，然後以我們的2017 年餘額展望。

First up, Private Brands integration. Dennis shared with you an update of our systems integration, so as a follow-up, Slide 9 is the same chart we showed you on our year-end call with the systems and execution work we are committed to delivering in 2017. In the first quarter, we executed all of our planned actions, including the partial closure of Battle Creek and ceased production at our Ayer and Azusa manufacturing facilities. In addition, we completed partial SAP implementations at 5 of our cereal facilities, and we most recently went live with the full SAP implementation at the Lakeville plant, one of our most complex facilities. These transitions provide us with a much-needed visibility into the former Private Brands business that will enable us to unlock more value through targeting, measuring and incentivizing growth in the premium better-for-you natural and organic channels. As you can see on the chart, this is great progress, and we're tracking slightly ahead of schedule in what is a very busy year.

首先，自有品牌整合。Dennis 與您分享了我們系統整合的最新情況，因此作為後續，投影片 9 與我們在年終電話會議上向您展示的圖表相同，其中包含我們致力於在 2017 年交付的系統和執行工作。在第一季度，我們執行了所有計劃行動，包括部分關閉巴特爾克里克工廠以及停止艾爾和阿蘇薩製造工廠的生產。此外，我們在 5 個穀物工廠完成了部分 SAP 實施，最近我們在萊克維爾工廠（我們最複雜的工廠之一）實施了完整的 SAP 實施。這些轉變為我們提供了對前自有品牌業務急需的了解，這將使我們能夠透過定位、衡量和激勵優質、更適合您的天然和有機管道的成長來釋放更多價值。正如您在圖表中看到的那樣，這是巨大的進步，在非常繁忙的一年中，我們的追蹤進度稍微提前了一些。

Turning now to the first quarter on Slide 10. Before we dive into the numbers, I'd first like to take a minute to give you a framework to think about the quarter in, in terms of the headwinds and tailwinds we encountered. It's no secret that the food industry had an uneven start to the year and volumes across the entire space was soft, particularly in January and February. The lower-than-expected volumes had a compounding effect with fixed-cost absorption adding to the obvious lost variable profit. As a result, we had a number of plants that didn't run particularly well in the first quarter and that weighed on our results.

現在轉到投影片 10 上的第一季。在我們深入研究數字之前，我首先想花一點時間為您提供一個框架，讓您根據我們遇到的逆風和順風來思考本季。眾所周知，食品業今年開局不平衡，整個行業的銷量疲軟，尤其是在一月和二月。低於預期的銷售量產生了複合效應，固定成本吸收增加了明顯的可變利潤損失。因此，我們的許多工廠在第一季的運作情況不是特別好，這對我們的業績造成了影響。

Pricing was another headwind in the quarter. We've been in an environment of input cost deflation for a lengthy period of time. The tide has now turned on commodities, and we are also increasingly seeing competitive bid activity in a number of our categories.

定價是本季的另一個不利因素。我們長期以來一直處於投入成本通貨緊縮的環境中。現在，大宗商品的趨勢已經轉向，我們也越來越多地看到我們的許多類別中的競爭性投標活動。

However, on the flip side, we had some nice tailwinds in the quarter. Our integration is on track and even progressing slightly ahead of plan. SG&A as a percent of sales was favorable to last year's first quarter, and below the operating line, we were favorable to budget on both interest and taxes.

然而，另一方面，我們在本季遇到了一些不錯的順風車。我們的整合正在步入正軌，甚至比計劃稍微提前一些。SG&A 佔銷售額的百分比對去年第一季來說是有利的，並且在營運線以下，我們對利息和稅收的預算有利。

So with that as our backdrop, let's take a look at the numbers. Consolidated results for the quarter are on Slide 11. Our first quarter sales on a consolidated basis increased 21% from the prior year to $1.5 billion, driven entirely by the addition of January results for Private Brands. Note that this is the last quarter where we'll have a Private Brands comparability issue, so going forward, we'll be on a like-for-like basis. Excluding the extra month of Private Brands, our volume and mix this quarter was favorable by 60 basis points, but was offset by negative pricing of 60 basis points due to the increased bid activity I mentioned earlier. As Dennis mentioned, our organic growth this quarter was up closer to 3.8% on a tonnage basis. If you adjust for the planned events that impacted the top line, such as the exit of some co-pack business in bars and cereal that we had in our results last year, but had very little impact to our profit.

因此，以此為背景，讓我們來看看這些數字。本季的綜合業績請見投影片 11。我們第一季的綜合銷售額較上年同期成長 21%，達到 15 億美元，這完全是由 1 月自有品牌業績的增加所推動的。請注意，這是我們將遇到自有品牌可比性問題的最後一個季度，因此展望未來，我們將在同類基礎上進行比較。排除自有品牌的額外一個月，本季度我們的銷售和組合有利 60 個基點，但由於我之前提到的競標活動增加而被 60 個基點的負定價所抵消。正如丹尼斯所提到的，本季我們的有機成長（以噸位計算）接近 3.8%。如果您對影響營收的計畫事件進行調整，例如我們去年業績中退出了一些棒材和穀物食品的聯合包裝業務，但對我們的利潤影響很小。

Gross margins on a GAAP basis were 18.6% versus 17.7% last year. Of the 90 basis point change, roughly 70 basis points was related to onetime items, while the balance of the improvement can be attributed to mix and a positive seasonal contribution from the additional month of Private Brands. Operating expenses rose to $219 million in the first quarter, but as a percent of sales were down nearly 200 basis points as we incurred some acquisition and integration-related costs last year. Excluding last year's onetime items, we were up slightly as a percent of sales, up 14.3% with increased spending related to the new segment structure and inflationary increases largely offset by cost-saving initiatives.

以 GAAP 計算的毛利率為 18.6%，去年為 17.7%。在 90 個基點的變化中，大約 70 個基點與一次性項目有關，而改善的平衡可歸因於混合和自有品牌額外月份的積極季節性貢獻。第一季營運費用增加至 2.19 億美元，但由於去年我們產生了一些收購和整合相關成本，佔銷售額的百分比下降了近 200 個基點。不包括去年的一次性項目，我們佔銷售額的百分比略有上升，增長了14.3%，這是由於與新的細分市場結構相關的支出增加以及通貨膨脹的增長在很大程度上被成本節約舉措所抵銷。

Net interest expense increased to $27 million from the prior year as a result of a full quarter of higher debt levels related to the Private Brands acquisition and higher interest rates. Our effective adjusted tax rate was 30.1%, favorable to last year by about 300 basis points. The favorability was driven by 2 items, both approximately equal in size. The revised stock compensation accounting rules that we early adopted in Q4 and now impact everyone, and an amended agreement with ConAgra, the increase to tax basis of the acquired assets.

由於整個季度與自有品牌收購相關的債務水平較高以及利率上升，淨利息支出較上年增加至 2,700 萬美元。調整後有效稅率為30.1%，比去年優惠約300個基點。好感度由兩項大小大致相等的項目驅動。我們在第四季度早些時候採用了修訂後的股票薪酬會計規則，現在影響到每個人，以及與康尼格拉的修訂協議，增加了所收購資產的稅基。

GAAP EPS was $0.49 per fully diluted share this quarter compared to a loss of $0.06 last year. Adjusting for the items detailed in our press release, our adjusted EPS per fully diluted share in the first quarter was $0.61, up 27% compared to the same period last year. This came in at the low end of our guidance range and while it's not a result that we are satisfied with, the first quarter was very patchy and it wasn't an easy environment for anyone in food.

本季完全稀釋後的 GAAP 每股收益為 0.49 美元，去年則虧損 0.06 美元。根據我們新聞稿中詳述的項目進行調整，第一季調整後每股完全稀釋每股收益為 0.61 美元，比去年同期成長 27%。這是我們指導範圍的低端，雖然這不是我們滿意的結果，但第一季的情況非常不穩定，對於食品行業的任何人來說都不是一個輕鬆的環境。

Let's now go through the segments under our new reporting structure. If you haven't already seen it, we did file our 8-K today, detailing the historical information for the new segment structure. Please note that they are not pro forma financial statements, but rather reflect a recast of the historical results for 2015 and 2016 to the new segments. Turning to Slide 12, we've summarized our segment financials for revenue and direct operating income. In total, across the 5 divisions, our revenue improved year-over-year by $264 million, and direct operating income grew by $21 million. Just a couple of things to highlight here, within the beverages division, single-serve coffee benefited from volume and mix gains as we continue to win back customers and expand distribution. However, DOI was nearly flat as a result of lower pricing and higher commodities as well as a temporary increase in freight expense, as we ramped up significant volume in the first quarter.

現在讓我們回顧一下新報告結構下的各個部分。如果您還沒有看過，我們今天確實提交了 8-K，詳細介紹了新段落結構的歷史資訊。請注意，它們不是準備財務報表，而是反映了新部門對 2015 年和 2016 年歷史業績的重述。轉向投影片 12，我們總結了我們部門的收入和直接營業收入財務狀況。總的來說，我們的 5 個部門的收入年增了 2.64 億美元，直接營業收入成長了 2,100 萬美元。這裡需要強調的幾件事是，在飲料部門，隨著我們繼續贏回客戶並擴大分銷，單杯咖啡受益於銷售和混合收益。然而，由於價格較低、商品價格上漲以及貨運費用暫時增加，DOI 幾乎持平，因為我們在第一季大幅增加了銷售量。

In Condiments, volume and mix and pricing were under pressure, offsetting the benefit of an additional month of Private Brands. Results were further pressured by commodities and manufacturing challenges. We have solid results in our Meals division with the addition of higher-margin Private Brands pasta business. Finally, improvements in our Snacks business were driven by mix changes due to the exit of co-pack business as well as favorable trade spend, and we lapped the first quarter 2016 supplier quality issue.

在調味品方面，銷售量、產品組合和定價都面臨壓力，抵銷了自有品牌額外一個月的收益。大宗商品和製造業挑戰進一步給業績帶來壓力。隨著利潤率更高的自有品牌麵食業務的增加，我們的餐飲部門取得了堅實的業績。最後，我們的零食業務的改善是由於聯合包裝業務的退出以及有利的貿易支出導致的組合變化推動的，我們克服了 2016 年第一季的供應商品質問題。

Just a quick word on leverage. We ended the first quarter with net debt of $2.7 billion and approximately $703 million available under our revolver. This compares to net debt of approximately $3 billion at the end of Q1 last year. Our leverage ratio finished the quarter at 3.71x and we continue to believe that around mid-year, we will return to under 3.5x leverage.

簡單介紹一下槓桿。第一季末，我們的淨債務為 27 億美元，左輪手槍可用資金約為 7.03 億美元。相比之下，去年第一季末的淨債務約為 30 億美元。我們的槓桿率本季結束時為 3.71 倍，我們仍然相信，在年中左右，我們的槓桿率將恢復到 3.5 倍以下。

Before I move to our outlook, let me say a couple of quick things on the divestiture of the Soup and Infant Feeding business that we announced last week. While we are confident that the business has potential for growth, we believe that another owner will be better positioned to provide the resources and focus necessary to capture that. The terms of the transaction were not disclosed. However, we did tell you that the business had revenue of approximately $210 million last year with very low margins. As a result, there will be a top line impact to our full year -- there will be a negligible impact on our ongoing operating income. We will obviously update you after the transaction closes. The key thing to take away here is that we will aggressively manage our portfolio, allocating resources to drive growth and profitability in order to maximize shareholder value in line with our strategy.

在展望我們的前景之前，讓我簡單說一下我們上周宣布的剝離湯和嬰兒餵養業務的一些事情。雖然我們相信該業務具有成長潛力，但我們相信另一位所有者將能夠更好地提供實現這一成長所需的資源和重點。交易條款並未揭露。然而，我們確實告訴過您，該業務去年的收入約為 2.1 億美元，但利潤率非常低。因此，這將對我們全年的營收產生影響——對我們持續營業收入的影響可以忽略不計。交易結束後，我們顯然會向您通報最新情況。這裡要講的關鍵是，我們將積極管理我們的投資組合，分配資源以推動成長和獲利能力，以便根據我們的策略實現股東價值最大化。

Let's now take a look at our full year outlook. You've heard it from just about everyone out there in the space, this is a difficult retail environment with soft volumes across the food sector, especially early in the first quarter. We shared with you in February on our year-end call that we expected our second quarter to be the earnings low point in 2017. As such, our guidance for Q2 is for earnings per fully diluted share between $0.45 and $0.55. This range is reflective of uneven demand in the first quarter and the headwinds and tailwinds that I outlined earlier. For the full year, we are reaffirming our adjusted EPS guidance of $3.50 to $3.70 per fully diluted share. As I mentioned before, while we are encouraged by our organic growth, none of the team here are satisfied with the bottom line results we delivered in the first quarter, albeit in a difficult external environment.

現在讓我們來看看我們的全年展望。您幾乎從該領域的每個人那裡都聽說過，這是一個艱難的零售環境，整個食品行業的銷量疲軟，尤其是在第一季初。我們在 2 月的年終電話會議上與您分享，我們預計第二季將是 2017 年的獲利最低點。因此，我們對第二季的指導是完全稀釋每股收益在 0.45 美元至 0.55 美元之間。這個範圍反映了第一季的需求不平衡以及我之前概述的逆風和順風。對於全年，我們重申調整後每股盈餘指引為每股完全稀釋每股 3.50 美元至 3.70 美元。正如我之前提到的，雖然我們對我們的有機成長感到鼓舞，但這裡的團隊都對我們在第一季度交付的底線結果感到滿意，儘管外部環境很困難。

Earlier in the year, when we saw the signs of volume softness, we started putting the plans in place to offset the shortfall with additional actions in the second half of the year. As you'll appreciate in a minute when I talk about these initiatives, they can take some time to implement and flow through to the P&L.

今年早些時候，當我們看到銷售疲軟的跡象時，我們開始製定計劃，透過下半年採取額外行動來抵消缺口。當我稍後談論這些舉措時，您就會意識到，它們可能需要一些時間來實施並流向損益表。

On Slide 13, we have laid out 4 key areas of focus: first, as Dennis described, we must recover the commodity increases in the form of pricing from our customers more quickly. Second, operational improvements. Private label is a complex business and simplification of our portfolio is critical. We need to eliminate unprofitable SKUs and each of our businesses has a complexity reduction target that they are charging towards. We are also keenly focused on eliminating inefficiencies and waste, and must ensure our plants run better than they did in the first quarter. Third, customer management. You've seen our 2-by-2 matrix before and Sam put it up earlier today. You've heard us talk about our top 36 customers who drive over 80% of the revenue. That means we have over 1,000 customers where we need to consider fixing those with weak margins, an inefficient level of changeovers and excessive inventory. And lastly, we're aggressively looking at cost management and ways to further drive SG&A out of the system. What all this translates into is a better business that has greater ability to grow, runs more efficiently, generates less waste, has fewer changeovers and all in all, is a better operation than where we sit today in turning -- in turn generating greater shareholder value.

在投影片 13 中，我們列出了 4 個重點關注領域：首先，正如丹尼斯所描述的，我們必須更快地以定價形式從客戶那裡恢復商品成長。二是營運改善。自有品牌是一項複雜的業務，簡化我們的產品組合至關重要。我們需要消除無利可圖的 SKU，而我們的每項業務都有一個降低複雜性的目標。我們也非常注重消除效率低下和浪費，並且必須確保我們的工廠比第一季運作得更好。三是客戶管理。您之前已經看過我們的 2×2 矩陣，Sam 今天早些時候把它放了出來。您已經聽過我們談論我們的前 36 位客戶，他們貢獻了超過 80% 的收入。這意味著我們有超過 1,000 家客戶，我們需要考慮解決那些利潤微薄、轉換水準低和庫存過多的客戶。最後，我們正在積極研究成本管理以及進一步推動 SG&A 脫離系統的方法。所有這些轉化為更好的企業，具有更大的成長能力、更有效率的營運、更少的浪費、更少的轉變，總而言之，是比我們今天所處的更好的營運方式，從而產生更多的股東價值。

With that, let me turn it back over to Sam for his closing comments and then we'll take your questions.

接下來，讓我將其轉回給 Sam 進行總結評論，然後我們將回答您的問題。

Thank you, Matthew. 15 months ago, a decade of acquisitive expansion culminated in the emergence of a private label industry leader like none before. Tracing our roots back to the founding of Ralcorp, our TreeHouse is now the home of 46 customer brand antecedents. Like the mighty oak, we arose from an acorn spreading our branches in the canopy over all that we could reach. Fueled by M&A, growth begat growth as we extended our commanding presence over center of store. Now with the acquisition of Private Brands, we have attained the scale and complexity that mandates that we shift our exclusive focus on growth to a more balanced perspective of value creation. Thus began our strategic transformation from tactically-driven serial acquirer to strategically-driven operating company, whose vision melds organic growth through innovation with margin expansion through productivity. Accordingly, we have embarked upon a campaign to deliver that promise over this and the succeeding year.

謝謝你，馬修。15 個月前，十年的收購擴張最終導致了前所未有的自有品牌產業領導者的出現。我們的樹屋可以追溯到 Ralcorp 的創立之初，如今已成為 46 個客戶品牌前身的所在地。就像強大的橡樹一樣，我們從一顆橡子中升起，將我們的樹枝鋪展在我們能到達的所有地方。在併購的推動下，隨著我們擴大在商店中心的主導地位，成長帶來了成長。現在，透過收購自有品牌，我們已經達到了規模和複雜性，這要求我們將我們對成長的唯一關注轉向更平衡的價值創造視角。由此，我們開始了從戰術驅動的系列收購者到策略驅動的營運公司的策略轉型，其願景將透過創新實現有機成長與透過生產力實現利潤擴張融為一體。因此，我們開展了一項活動，以在今年和來年兌現這一承諾。

As I delineated earlier this morning, we have already made great strides in advancing our strategic agenda of reaping the full rewards of industry leadership. That we are doing so in the uncertainty of our current marketplace and in the midst of a wholesale organizational realignment, heartens my hopes for our future. These strategic initiatives, coupled with expansion opportunities in on-trend beverages, better-for-you snacks and the e-commerce, instill me with the confidence that our financial performance over the remainder of 2017 and beyond will fully meet market expectations of the benefits of the Private Brands acquisition. Meeting that standard will also fulfill our vision of TreeHouse as an enterprise dedicated to superior strategic progress, customer growth and shareholder value even as the digital age dawns on the food and beverage marketplace.

正如我今天早上早些時候所描述的，我們在推進我們的策略議程方面已經取得了長足的進步，以獲取行業領導力的全部回報。我們在當前市場的不確定性和大規模的組織重組中這樣做，這讓我對我們的未來充滿了希望。這些策略舉措，加上流行飲料、健康零食和電子業務領域的擴張機會，讓我充滿信心，我們在 2017 年剩餘時間及以後的財務業績將完全滿足市場對效益的預期自有品牌收購。滿足這項標準也將實現我們的願景，即 TreeHouse 作為一家致力於卓越策略進展、客戶成長和股東價值的企業，即使食品和飲料市場已經進入數位時代。

Now let's move to a Q&A, where we ask that you please limit your questions today to 1 at a time, so that we can try to get to everyone. If you have a follow-up, please feel free to get back into the queue. LeeAnn, please open the phone lines for Q&A.

現在讓我們進入問答環節，請您將今天的問題限制為每次 1 個，以便我們能夠盡力解答每個人的問題。如果您有後續行動，請隨時回到隊列中。LeeAnn，請打開電話問答。

(Operator Instructions) And we'll take our first question from Chris Growe with Stifel.

（操作員說明）我們將回答 Chris Growe 和 Stifel 提出的第一個問題。

I just wanted to ask a quick question if I could. In relation to the second quarter and as I just think about that in relation to the prior year and a number of the tailwinds that are coming through, I guess I wanted to understand what's working against that. So you have a lot of like plant closings and integration savings coming through. What is it that's offsetting that? You mentioned like the operations being a bit of a headwind this quarter. Does that continue in Q2? Just want to get a little better sense on why that quarter was weaker -- effectively weaker?

我只是想問一個簡單的問題，如果可以的話。就第二季而言，當我考慮與前一年有關的情況以及正在經歷的一些順風車時，我想我想了解是什麼在阻礙這一點。因此，您會經歷許多類似工廠關閉和整合的節省。是什麼抵消了這一點？您提到本季的營運遇到了一些阻力。第二季這種情況還會持續嗎？只是想更好地理解為什麼該季度表現疲軟——實際上更疲軟？

Q2 is -- it has 2 things going, as I mentioned in my remarks. The pricing, it will be little delayed, we've had some big run-ups recently in snack nuts. So we'll have a little bit of a challenge there. The plant closings, we really don't get the full benefit of that until as we get into the second quarter for some and some are at later. I think the big issue is mix is something that we have to take into account. We exit the winter selling season with the highest margin. Our highest margin profile is Q4. Q1 gets carryover from our in-store bakery business, which is a very nice business as we end the holidays, and frankly Q2, we lose the higher-margin winter products and now we shift into summer. And now we've got pickles, sauces, barbecue sauces, a variety of the summer categories which are on average lower than the corporate average margins. So our natural mix is now shifting a little more dramatically than it did in the old days prior to these acquisitions, Chris. So some headwinds, yes, but I think mix is the other issue you have to take into account.

正如我在發言中提到的，第二季有兩件事正在發生。定價方面，會稍微延遲，最近我們的零食堅果價格出現了一些大幅上漲。所以我們在那裡會遇到一些挑戰。工廠關閉，我們確實無法充分受益，直到我們進入第二季度，有些工廠會在第二季晚些時候。我認為最大的問題是混合是我們必須考慮的事情。我們以最高的利潤結束冬季銷售季節。我們的最高利潤率是第四季。第一季從我們的店內烘焙業務中獲得了結轉，這是一項非常好的業務，因為我們假期結束了，坦率地說，第二季度，我們失去了利潤率較高的冬季產品，現在我們進入了夏季。現在我們有泡菜、醬汁、燒烤醬等各種夏季類別，這些類別的平均利潤率低於企業平均利潤率。因此，克里斯，我們的自然組合現在比這些收購之前的過去發生了更大的變化。是的，存在一些阻力，但我認為混合是你必須考慮的另一個問題。

The mix would've been negative in the second quarter a year ago, sequentially, right? So you -- I mean, the second quarter a year ago, you had transitioned to summer-related products as well, right?

一年前的第二季度，這種組合會連續出現負值，對嗎？所以你——我的意思是，一年前的第二季度，你也轉向了與夏季相關的產品，對吧？

We had, but we also had -- the Q1 didn't get the full 3 months last year of the extra. So I think it's a little more noticeable now. But I can't hide the fact that we do have pricing that we have to get, and frankly, some of the manufacturing efficiencies aren't rolling in yet. I mentioned the lost business that we have planned. So we weren't quite efficient as we had hoped, but we're not quite going to get that to roll into Q2 in our opinion, and we'll see that stronger in 3 and 4.

我們有，但我們還有——Q1 沒有得到去年整整 3 個月的額外費用。所以我認為現在更引人注目了。但我無法掩蓋這樣一個事實，即我們確實有必須獲得的定價，而且坦白說，一些製造效率尚未實現。我提到了我們計劃中的失去的業務。所以我們並沒有像我們希望的那樣高效，但在我們看來，我們不太會把這種情況帶入第二季度，我們會在第三季度和第四季度看到更強大的表現。

Okay, and just a quick question for you as we think about a rising input cost environment, to the degree you can, are you hedging those inputs such that during the life of a contract, if you will, with the retailer that you can blunt some of that incremental inflation or is it more of the inputs you can't hedge that are causing the issue in this run-up of input costs?

好的，當我們考慮不斷上升的投入成本環境時，我想問你一個簡單的問題，在你可以的範圍內，你是否對這些投入進行對沖，以便在合同有效期內，如果你願意的話，與零售商可以鈍化這些投入部分增量通貨膨脹還是更多無法對沖的投入導致了投入成本上升的問題？

Yes, this is Matthew. We have a weekly commodity meeting here every week with the whole team, the businesses and the purchasing team, and really, watch this like a hawk, watching all the signals around every commodity and to the extent the market is there and liquid enough, we enter that market when we think those signals are going against us, to protect us as much as we can. So we're very active and I think fairly sophisticated in that regard in our approach.

是的，這是馬修。我們每週都會在這裡與整個團隊、企業和採購團隊舉行每週商品會議，實際上，像鷹一樣觀察這一情況，觀察每種商品周圍的所有信號，以及市場是否存在且流動性是否足夠，我們當我們認為這些訊號對我們不利時進入該市場，以盡可能保護我們。因此，我們非常積極，而且我認為我們的方法在這方面相當成熟。

Chris, there are couple of categories like a lot of in nuts, in particular, where there isn't a liquid market to go forward. In other categories where we have relatively liquid markets, wheat, corn, oats, we go forward and we do try to match up our sales contracts, if you will, sales programs with direct hedging so we could take that risk off. But we've inherited a lot more categories between, obviously, snack nuts, durum wheat and some other categories where we just don't have a liquid market to be able to do that.

克里斯，有一些類別，就像堅果中的許多類別一樣，特別是那些沒有流動性市場可以發展的類別。在我們擁有相對流動性市場的其他類別，如小麥、玉米、燕麥，我們繼續前進，我們確實嘗試將我們的銷售合約（如果你願意的話）與直接對沖銷售計劃相匹配，這樣我們就可以消除這種風險。但顯然，我們繼承了更多的品類，包括零食堅果、硬質小麥和其他一些品類，而我們只是沒有流動性市場來做到這一點。

And our next question comes from David Driscoll with Citi.

我們的下一個問題來自花旗銀行的大衛·德里斯科爾。

I had a couple of just little detail pieces here. You didn't say anything about your revenue guidance. It was, I believe $6.4 billion to $6.6 billion, you've got this divestiture. Can you just update us on the revenue guidance? And also just related to the quarter, what was organic sales growth? And then just -- because I'm sure I can figure this out, but specifically, what was the acquisition contribution to sales in the first quarter? If we could just start with those detail pieces.

我這裡有一些小細節。您沒有提及任何有關收入指導的內容。我相信這次剝離的金額是 64 億至 66 億美元。您能否向我們介紹一下收入指引的最新情況？同樣與本季相關的是，有機銷售成長是多少？然後只是 - 因為我確信我能弄清楚這一點，但具體來說，收購對第一季銷售的貢獻是多少？如果我們能從這些細節開始就好了。

Yes, this is Matthew, let me take the revenue guidance first. We haven't updated the revenue guidance for the loss of that Soup and Infant Feeding business yet. Obviously, the timing of the close of that is still yet to be determined and the impact will vary depending on when that is. But naturally, we will update that when we close and I think you have a good understanding of what the full year number is.

是的，我是馬修，讓我先談談收入指引。我們尚未更新湯和嬰兒餵食業務損失的收入指引。顯然，關閉的時間尚未確定，影響將根據關閉的時間而有所不同。但自然地，我們會在關閉時更新這一信息，我認為您對全年數字有很好的了解。

In terms of the organic sales, as we mentioned, the grand total was a 0.6%, but that was including the negative effects this quarter of having lost roughly just over 16 million pounds of business, all of which was Private Brands, David. Because of the new segments in our combination, it's not quite so easy to pull out some of those components. As you know, we combined our Condiments and snack nuts business, and parts of the old business went into Meals, but I can say that when you strip out those unusual and known decreases in co-pack and foodservice and look at what's primarily retail then for the rest, on February, March, which is our pure comparable, we're up 3.8%. For that same period, we are up almost 5.9% for the -- what was the Private Brands business. So I think what we're seeing is a quicker turnaround, frankly, in the sales activity than what we had hoped, a little slower turnaround in the margins than what we had hoped. But what I think we need to take into account here is it's internally driven to get those savings. We'll get those. The hard part is getting the sales, and that's where I think the excitement is here. The execution's really turning around. And having that sales growth and giving us a platform for growth is really what I think charges us here in terms of the go-forward. Margins were disappointing, no doubt about it, we're working on that. But to see that kind of sales growth in volume, pure tonnage out of the former Private Brands business was a really good thing.

就有機銷售額而言，正如我們所提到的，總銷售額為 0.6%，但這包括本季度損失約超過 1600 萬英鎊業務的負面影響，所有這些都是自有品牌，大衛。由於我們的組合中有新的部分，因此取出其中一些組件並不那麼容易。如您所知，我們合併了調味品和零食堅果業務，部分舊業務進入了餐飲業務，但我可以說，當您剔除聯合包裝和餐飲服務中那些不尋常且已知的下降並看看主要是零售的業務時，其餘的，2 月和 3 月（我們的純可比）上漲了 3.8%。在同一時期，我們的自有品牌業務成長了近 5.9%。因此，坦白說，我認為我們看到的銷售活動的周轉速度比我們預期的要快，而利潤率的周轉速度比我們預期的要慢一些。但我認為我們在這裡需要考慮的是獲得這些節省的內部驅動力。我們會得到那些。困難的部分是獲得銷售，而這正是我認為令人興奮的地方。執行情況確實有轉機。我認為，實現銷售成長並為我們提供成長平台確實是我們前進的動力。毫無疑問，利潤率令人失望，我們正在努力解決這個問題。但看到前自有品牌業務的銷售量和純噸位的銷售成長確實是件好事。

And just a follow-up on Chris' question about the second quarter because I kind of agree with him that in the year ago, $0.54, 2 years ago, $0.66, last year has all kinds of integration costs. Can you just give us the update on where the TSA expenses are in the first quarter? What you see in the second quarter? And just point-blank, with the number that's year-on-year basically below kind of a depressed second quarter last year, I just worry that are you really on pace to see all the savings in the back half of the year that's embedded within the guidance? Just give us a little confidence here that the second quarter isn't a strong indicator of maybe some problems that could filter into the second half.

只是克里斯關於第二季度的問題的後續，因為我有點同意他的觀點，一年前是 0.54 美元，兩年前是 0.66 美元，去年有各種整合成本。您能否向我們介紹第一季 TSA 支出的最新情況？您在第二季看到了什麼？直截了當地說，與去年同期相比，這個數字基本上低於去年第二季度的低迷水平，我只是擔心你是否真的能看到今年下半年的所有節省指引？請給我們一點信心，第二季度並不是一些可能會滲透到下半年的問題的有力指標。

Yes, this is Matthew. There's a couple of things below the line that are impacting us in Q2. Obviously, we'll have higher interest expense as rates have gone up. But also, the timing of our equity grant, which we moved up from the middle of the year to pretty much come in line with the rest of how the world operates, has resulted in Q2 being a stock compensation peak compared to the other quarters and compared to a year ago. So you're going to see a little different calendarization here with that element.

是的，這是馬修。第二季有幾件事對我們產生了影響。顯然，隨著利率上升，我們的利息支出將會更高。而且，我們的股權授予時間從年中提前，與世界其他地區的運作方式基本一致，導致第二季度與其他季度相比成為股票薪酬的峰值，與一年前相比。因此，您將在這裡看到該元素的日曆略有不同。

Any comments on the TSA?

對 TSA 有何評論？

On the TSA, as we've said below, we're sort of easing in and easing out of this thing. And as we ramp down a ConAgra head, for want of a better way of putting it, we replace it with a TreeHouse head. So I think as we're going through the year, that thing's ebbing and flowing with generally cost neutrality. I think when we get towards the end of the year and we can really see this thing in its entirety and touch it and we've got our hands all over it, we talk about a high single-digit year-over-year efficiency going into '18.

在運輸安全管理局（TSA）方面，正如我們在下面所說的，我們正在放鬆和放鬆這件事。當我們降低 ConAgra 頭部時，由於缺乏更好的放置方式，我們用 TreeHouse 頭部替換它。因此，我認為，隨著這一年的發展，這種情況正在消退，整體成本呈現中性。我認為，當我們接近年底時，我們可以真正看到這個東西的整體並觸摸它，並且我們已經掌握了它，我們談論高個位數的同比效率進入'18。

I think in Q4, David, it's when we think we'll be off the systems a little bit early, so we'll really start to see that benefit, I'm hoping, in November-December timeframe, that you'll see a little more of a jump off there. But at the moment, even though we're making conversions, we're still relying on the ConAgra data center and -- to do a variety of things for us. So until we get that last bit off, which we showed in the charts, there is duplication in there still.

我認為在第四季度，大衛，我們認為我們會提前一點離開系統，所以我們會真正開始看到這種好處，我希望，在 11 月至 12 月的時間範圍內，您會看到那裡有更多的跳躍。但目前，即使我們正在進行轉換，我們仍然依賴康尼格拉資料中心，並為我們做各種事情。因此，在我們完成最後一點（我們在圖表中顯示的）之前，其中仍然存在重複。

And we'll take our next question from John Baumgartner with Wells Fargo.

我們將回答富國銀行約翰·鮑姆加特納的下一個問題。

Just in terms of the increased bid activity and the price competition, what's driving that? So I guess presumably with broader inflation and labor costs and pockets of commodity inflation, it would seem that bid activity would be kept a bit more rational at this point. So what's changing in the environment behind that?

僅就投標活動的增加和價格競爭而言，是什麼推動了這一趨勢？因此，我想，隨著更廣泛的通膨、勞動成本以及部分商品通膨，此時的投標活動似乎會更加理性。那麼這背後的環境又發生了什麼樣的變化呢？

John, it's Sam, good morning. I think the underlying factor here is that for the Retail Grocery business, particularly in traditional channels and particularly among those outlets who are subscribed to syndicated services, the key factor here is the substantial downturn in foot traffic, trips and it was shown in our, I think, Chart #4 that when you looked across the totality of the edibles portfolio, the business was down for the quarter and it successively got weaker as the quarter went along. And the point there is that we are seeing grocers reopen bidding earlier or midterm in often cases and it is -- it's all about the profitability of their business. I think it's quite interesting to go and look at the brands and the global brands have posted quite weak top lines, and that is in spite of continued trade promotion that effectively holds their space even in bad times. So I think that's the key. We will address things on the cost side and then as we indicated that we are going to need to take pricing that is market driven, that will be in a substantial amount, but I think to that, as Matthew and Dennis have alluded, we've got a substantial open-market data there to justify that. And then the last matter is that we've got to pursue growth where that opportunity is. I was very pleased to see that in the past quarter, we added better-for-you snacks to our e-commerce portfolio, and that's an indication of finding where that business is not under stress, but where opportunity opens. Thank you.

約翰，我是山姆，早安。我認為這裡的根本因素是，對於零售雜貨業務來說，特別是在傳統管道中，特別是在那些訂閱聯合服務的商店中，關鍵因素是客流量和旅行的大幅下降，這在我們的，我認為，圖表4 表明，當您縱觀整個食品組合時，您會發現該季度的業務有所下降，並且隨著季度的進行而逐漸疲軟。關鍵是，我們經常看到雜貨商提前或中期重新招標，這完全取決於他們業務的盈利能力。我認為去看看這些品牌是非常有趣的，全球品牌的營收相當疲軟，儘管持續的貿易促銷即使在經濟不景氣的情況下也能有效地保住自己的空間。所以我認為這是關鍵。我們將解決成本方面的問題，然後正如我們所指出的，我們將需要採取市場驅動的定價，這將是一個很大的數額，但我認為，正如馬修和丹尼斯所暗示的那樣，我們'我們有大量的公開市場數據來證明這一點。最後一件事是，我們必須在有機會的地方追求成長。我很高興地看到，在上個季度，我們在電子商務產品組合中添加了「更適合您」的零食，這表明我們找到了業務沒有壓力、但有機會的地方。謝謝。

And just in terms of the restructuring synergies on Slide 9, I'm a little surprised that over a year into the acquisition there haven't been more plant closures slated just given how much excess capacity in the Private Brands network. So I know you've changed how you think about the synergy number, at least initially. But can you comment at least on the role that plant closures will play in the synergy numbers, and should we think about plant closures being more of like a post 2018 endeavor at this point?

就幻燈片 9 上的重組協同效應而言，我有點驚訝的是，考慮到自有品牌網絡中產能過剩的情況，收購一年多以來並沒有計劃關閉更多工廠。所以我知道你已經改變了對協同效應數字的看法，至少在最初是這樣。但您能否至少評論一下工廠關閉將在協同效應中發揮的作用，以及我們是否應該認為工廠關閉更像是 2018 年後的努力？

Dennis, I think -- it's a good point. I think one of the challenges Private Brands have and that's us, private label, I should say more broadly, is here we have a lot of plants many of which are almost exclusive to 1 product or 1 type of production. It's not as if we've got 8 soup plants and we could start restructuring those down relatively straightforward. In addition, we have to unwind a relationship with a customer if necessary, and that can take 8 to 9 months, and finally, we have commitments on purchasing for raw materials, so it's not as easy as identifying the plant and 60 days later you close the plant down. We have to take into account the crop that's coming in, commitments to current customers, seasonality in getting through a particular season. So I do find that it does take longer for us to move from, say, decision to actual closing. The plants we've closed so far were all part of the plan in terms of our original thinking on the Private Brands acquisition. But as we continue to look forward and we're finding efficiencies and we see opportunities, we'll continue to assess the manufacturing footprint just as we assess the product categories with soup decisions. So I think everything's on the table to look at here, but it is a bit slower process because of the lack of duplication at multiple facilities that would allow you to more quickly and easily consolidate plants.

丹尼斯，我認為——這是一個很好的觀點。我認為自有品牌面臨的挑戰之一就是我們，自有品牌，我應該更廣泛地說，我們這裡有很多工廠，其中許多工廠幾乎只生產一種產品或一種類型的生產。並不是說我們有 8 個湯廠，我們就可以相對簡單地開始重組它們。另外，如果有必要，我們必須解除與客戶的關係，這可能需要8到9個月的時間，最後，我們有採購原材料的承諾，所以這並不像確定工廠那麼容易，60天后你就可以了。關閉工廠。我們必須考慮即將到來的作物、對當前客戶的承諾、特定季節的季節性。所以我確實發現我們從決定到實際結束確實需要更長的時間。就我們對自有品牌收購的最初想法而言，到目前為止我們關閉的工廠都是計畫的一部分。但隨著我們繼續向前看，我們正在尋找效率，我們看到了機會，我們將繼續評估製造足跡，就像我們透過湯決策評估產品類別一樣。因此，我認為這裡的一切都可以考慮，但這個過程有點慢，因為多個設施缺乏重複，這將使您能夠更快、更輕鬆地整合工廠。

I think the work that Dennis and the presidents are doing around simplification is really critical to any further unlock there. As they narrow this portfolio down, we'll be dealing with a very different customer and product landscape, and give us another bite at the apple.

我認為丹尼斯和總統們圍繞簡化所做的工作對於進一步解鎖這一點確實至關重要。當他們縮小產品組合範圍時，我們將面對一個非常不同的客戶和產品格局，並讓我們再次嚐嚐蘋果的滋味。

And our next question comes from Farha Aslam with Stephens.

我們的下一個問題來自法哈·阿斯拉姆和史蒂芬斯。

A question around your single-serve coffee business. You doubled your volumes and doubled that size but at the expense of gross margins. Could you share with us the timing of when margins can recover and to what degree those margins can recover?

有關您的單杯咖啡業務的問題。您將銷量和規模擴大了一倍，但代價是毛利率下降。您能否與我們分享利潤率何時可以恢復以及恢復到什麼程度？

Well, this is Sam. A great deal of the margin compression here has come as private label has turned into be the real growth engine of the industry. And our view in going -- in pursuing that was that we would be better served in the long term, regain our supremacy in that part of the store. And as a result have garnered the lion's share of the long-term attractive shifts in that sector. It -- we will begin as we fill things out to improve our cost structure, improve -- we had a substantial amount of the compression and margins was related to onetime start-ups, costs I believe, transportation in particular was addressed earlier this morning. The other thing I will tell -- say is that as we're using category management in this, we are account by account improving the economics, not only for ourselves but also our customers.

嗯，這是薩姆。隨著自有品牌成為該產業真正的成長引擎，利潤率大幅壓縮。我們的觀點是，從長遠來看，我們會得到更好的服務，重新獲得我們在商店那部分的霸主地位。因此，他們在該行業的長期有吸引力的轉變中佔據了最大份額。我們將開始填寫內容以改善我們的成本結構，改善我們有大量的壓縮和利潤與一次性新創公司有關，我相信成本，特別是運輸今天早上早些時候得到了解決。我要說的另一件事是，當我們在這方面使用類別管理時，我們逐一帳戶地改善經濟效益，不僅為我們自己，也為我們的客戶。

And just to read on timing, Sam, and how we should think of that margin improvement?

山姆，我們該如何看待利潤率的提升？

I think that's something that'll be gradual and we should see a small but incremental improvements, kind of, quarter-by-quarter that are more related to the development of individual accounts. And then some groundswell that will kind of come across for the entirety of that business.

我認為這將是漸進的，我們應該看到一個小而漸進的改進，有點逐季度，與個人帳戶的發展更相關。然後整個業務都會出現一些風潮。

And we'll take our next question from Joshua Levine with JP Morgan.

我們將回答摩根大通約書亞·萊文 (Joshua Levine) 提出的下一個問題。

Dennis, just one quick question. You said total -- I hear it relate -- in reference to David Driscoll's question, you said total organic growth was up 60 basis points in the quarter. I may have missed it but I thought earlier in the call, you had said volumes were up 60 basis points, which has been offset by 60 basis points of pricing, which (inaudible) be flat organic growth. I know there are some business exits, but can you just confirm those numbers?

丹尼斯，我只想問一個簡單的問題。你說的是總體——我聽到它是相關的——在提到大衛·德里斯科爾的問題時，你說本季度總體有機增長增長了 60 個基點。我可能錯過了，但我想在電話會議的早些時候，您曾說過成交量增長了60 個基點，這已被60 個基點的定價所抵消，定價（聽不清）是持平的有機增長。我知道有一些業務退出，但你能確認一下這些數字嗎？

Yes, that's correct. And in the press release in the back, you'll see that reconciliation on total. And unfortunately, we're somewhat restricted apparently from providing much non-GAAP color, which is what we can do on the call. But as we look at the non-GAAP color, the reality is our retail business performed quite well. It's kind of buried in that because of exiting the co-pack and foodservice businesses that frankly were not all that interesting to us. So as you look at the underlying numbers in the 3.8% pure volume growth and the -- within the company and the 5.9% for the Private Brands, that's the -- to me, that's the real story here in terms of where we're going. And Josh, as you look at every other food company, all the big ones that are continuously talking about negative volumes, I think it just points to the strength we have in private label here.

對，那是正確的。在後面的新聞稿中，您會看到整體的對帳。不幸的是，我們顯然在提供許多非公認會計原則顏色方面受到限制，而這正是我們在電話會議中可以做的。但當我們觀察非公認會計原則的顏色時，現實是我們的零售業務表現相當不錯。由於退出了聯合包裝和餐飲服務業務，坦白說，我們對這些業務並不那麼感興趣，所以它被埋沒了。因此，當你看到 3.8% 的純銷量增長以及公司內部和自有品牌 5.9% 的基本數字時，對我來說，這就是我們所處的真實情況。去。喬希，當你看看其他所有食品公司時，所有大公司都在不斷談論負銷量，我認為這只是表明了我們在自有品牌方面的實力。

Got it. And then when we think about the guidance for 2Q and especially on top line, I know you talked about seasonality, you talked about the soft consumer trends and you talked about the -- again the continued drag from co-packing arrangements that you exited. Biggest at least in Nielsen we've already started to see trends reverse and many of your branded peers have said that they expect trends to at least have started to improve, coming out of 1Q. You -- so I guess, with that flat organic growth you -- or even again, the up 380 basis points are nearly 4% ex the business exits, should we assume that, that rate of growth improves in the second quarter?

知道了。然後，當我們考慮第二季度的指導時，特別是在營收方面，我知道您談到了季節性，您談到了疲軟的消費趨勢，並且您再次談到了您退出的聯合包裝安排的持續拖累。至少在尼爾森，我們已經開始看到趨勢逆轉，許多品牌同業都表示，他們預計趨勢至少已經開始改善，從第一季開始。你——所以我猜，隨著你的有機成長持平——或者甚至再次增長380個基點，扣除業務退出後幾乎是4%，我們是否應該假設，第二季度的增長率會有所改善？

Yes, I think we're going to have some growth in the second quarter. I think, it was just -- the issue is the margin due to mix. I think -- I don't see any reason why our teams and why private label isn't going to continue to have strong numbers. The 3.8% we talked about is a darn strong number. I'm not sure I would ever commit to having that long term, but I think the structural difference we're having here is almost every major retail grocer is talking about emphasizing their private label program. So I don't think this is a 1 quarter or a 2 quarter. I think this is almost starting to get into a structural change again as the retailers figure out they've got to offer something different and unique, that's where we have the solution for them.

是的，我認為我們第二季將會有一些成長。我認為，問題在於混合造成的利潤。我認為——我不明白為什麼我們的團隊和自有品牌不會繼續擁有強勁的數字。我們談到的 3.8% 是一個非常強勁的數字。我不確定我是否會承諾長期這樣做，但我認為我們這裡的結構性差異是幾乎每個主要零售雜貨商都在談論強調他們的自有品牌計劃。所以我不認為這是第一季或第二季。我認為這幾乎開始再次發生結構性變化，因為零售商發現他們必須提供不同且獨特的東西，這就是我們為他們提供解決方案的地方。

Got it. And then just -- if I could just ask around just the cadence of the year. Obviously, again, 1Q is at the low end of the guidance. At least you've lowered -- 2Q was at least well below the street and again, obviously, maybe we were off or a little bit too optimistic. But you've obviously pushed more of the weight now to the second half, so you talked about some of the cost initiatives coming in the second half? I mean, do you think that's enough or I guess, how do you get confident that, that's enough to get you to this full year EPS guidance?

知道了。然後我是否可以詢問今年的節奏。顯然，第一季再次處於指導的低端。至少你已經降低了——第二季度至少遠低於街道水平，顯然，也許我們偏離了方向或有點過於樂觀了。但您顯然已經將更多的權重推到了下半年，所以您談到了下半年即將推出的一些成本舉措？我的意思是，您認為這足夠了，或者我猜，您如何確信這足以讓您達到全年每股收益指引？

Yes, this is Matthew. Our plan was always more back half by us than front as the efficiency actions come in through the year. I think we saw last year as we brought Private Brands in, more of a trend to a heavy Q4 calendarization, especially in the baked goods area, which exacerbated that imbalance. We did get on this early when we started seeing this softness, so the plans are pretty advance. We didn't close the books last weekend and figure out we needed to do something. So I think there's a level of maturity around the thinking and the planning that Dennis and the team have gotten in place that gives us confidence in the execution of that increment to get back.

是的，這是馬修。隨著效率行動全年不斷開展，我們的計畫始終是後半部而不是前半部。我認為去年我們引入自有品牌時看到，第四季度的日曆化趨勢更大，尤其是在烘焙食品領域，這加劇了這種不平衡。當我們開始看到這種疲軟時，我們確實很早就開始了這一點，所以計劃相當提前。上週末我們沒有關閉書本並發現我們需要做些什麼。因此，我認為丹尼斯和團隊已經制定了一定程度的成熟思維和計劃，這讓我們對執行增量恢復充滿信心。

And our next question comes from Evan Morris with Bank of America.

我們的下一個問題來自美國銀行的埃文·莫里斯。

Just on the pricing, I know it was down in, I guess, what, 4 of the 5 segments in the quarter. You talked about the needs to take more aggressive pricing going forward. I guess, just thinking about that within the context, you are going to be faced with higher commodities. The environment is still pretty challenged, a lot of your branded competitors while they might have seen a slight improvement, kind of coming out of the first quarter, trends for them aren't particularly good. So I guess the question is how confident or why are you confident that you'll be able to take the level of pricing that you need in this environment? And I guess, just thinking about that from a margin perspective, if 1 of your goals was to sort of revert margin pressure, should we expect that more of that net cost savings that you stopped possibly would flow through to the bottom line this year is going to need to be reinvested back again to protect margins in light of that sort of difficult operating environment and rising commodity costs?

就定價而言，我知道本季 5 個細分市場中有 4 個細分市場的價格有所下降。您談到了未來需要採取更激進的定價。我想，只要在​​這種背景下考慮一下，你就會面臨更高的商品價格。環境仍然充滿挑戰，許多品牌競爭對手雖然從第一季開始可能略有改善，但趨勢並不是特別好。所以我想問題是您對能夠在這種環境下獲得所需的定價水平有多大信心或為什麼有信心？我想，從利潤率的角度考慮一下，如果您的目標之一是恢復利潤率壓力，我們是否應該預期您今年可能停止的淨成本節省更多會流向淨利潤？鑑於這種困難的經營環境和不斷上漲的商品成本，是否需要再次進行再投資以保護利潤？

Evan, Dennis here. Good questions, the -- one thing -- 2 things that we have going for us right now is despite the challenging aspects of the business, what's been interesting is the price gaps have generally stayed very consistent. And I know a lot of you have seen that as you've looked at the measured channel data. So in terms of the price gaps, the nice thing is they haven't been closing, so the opportunity for pricing exists. The other thing in -- is in private label, we've got a little bit of a different relationship with our customers in terms of what we call fact-based selling, where it tends to be a little more open book in terms of what the input cost structure of the product is and we actually can sit down and will sit down and compare the year-over-year change in the particular ingredients that go into the product and work out generally a mutually agreeable relationship in terms of how the price or modify the product to get the margin covered. So I think we're in a good place to do that. I'd be much more concerned if we saw price gaps dropping, which wouldn't leave the room to get those penny or 2 and that's really what you're talking about, pennies on the units. So I think we're in good shape. I'll turn it over to Sam for comments.

埃文，丹尼斯在這裡。好問題，我們現在要做的一件事、兩件事是，儘管業務面臨挑戰，但有趣的是價格差距總體上保持非常一致。我知道你們很多人在查看測量的通道數據時都已經看到了這一點。因此，就價格差距而言，好處是它們尚未縮小，因此存在定價機會。另一件事是在自有品牌中，我們與客戶的關係在我們所謂的基於事實的銷售方面有一點不同，在這方面，它往往是更加開放的書產品的投入成本結構是，我們實際上可以坐下來，坐下來比較產品中特定成分的逐年變化，並就價格如何制定總體上雙方都同意的關係或修改產品以彌補利潤。所以我認為我們處於一個很好的位置來做到這一點。如果我們看到價格差距下降，我會更擔心，這不會留下獲得一兩便士的空間，這就是你所說的，單位上的便士。所以我認為我們的狀態很好。我會把它交給 Sam 徵求意見。

I would concur with Dennis, second that. When we look at the industry dynamics over all of the syndicated channels and then the 102 food and beverage product categories, what we see is that pricing with regard to -- net, the aggregate price changes of brands that have been roughly 2.2% over the last 52 weeks, and that's what private label has been as well. You do have to separate the mix out there, and I think we're in a better position than some of the very large private label categories like water and carbonated beverages that really get whipsawed by branded promotions, et cetera. The other matter here is that the most successful pricing we've had has been in circumstances where the cash prices openly often quoted input markets are moving up, and we have that instance, I think, Matthew, in -- of the top 25 components, aren't 19 of them either positive or flat, and just a handful are coming down.

我同意丹尼斯的觀點，其次。當我們觀察所有聯合通路以及 102 個食品和飲料產品類別的行業動態時，我們看到的是，各品牌的定價總價格變化約為 2.2%。過去 52 週，自有品牌也是如此。你確實必須將這些混合物分開，而且我認為我們比一些非常大的自有品牌類別（例如水和碳酸飲料）處於更好的位置，這些類別確實受到品牌促銷等的打擊。這裡的另一件事是，我們最成功的定價是在經常公開引用的投入品市場的現金價格上漲的情況下進行的，馬修，我認為，在前25 個組成部分中，我們就有這樣的例子。 ，其中不是有 19 個是積極的還是持平的，而且只有少數是下降的。

Exactly.

確切地。

So we will do our selling here where we'll take the item and the bill of materials and sit down and show where the -- what's justified here as a pass-through on the components. And we would expect that the brands will be doing the same type of thing. So we will use the industry dynamics to work in our favor.

因此，我們將在這裡進行銷售，我們將拿到產品和物料清單，然後坐下來展示在哪裡-什麼是這裡合理的組件傳遞。我們預計這些品牌也會做同樣的事情。因此，我們將利用產業動態來對我們有利。

And then just as you think about the full year, you reaffirmed your EPS outlook. It sounded like David Driscoll's question earlier, you're reaffirming the sales outlook again ex the divestiture. Just wondering, just the level of confidence or visibility that you have now in light of that you said that these retailers are now opening bids early, which just tends to be not common practice, and it seems like the bids that are being reopened are now getting done at a more competitive price as these retailers are focused more on their profitability. So I mean, I guess, just -- that's a pretty big change it would sound like. So just again, understanding that level of visibility you now have behind reaffirming your full year.

然後，當您思考全年時，您重申了每股盈餘展望。這聽起來像是大衛·德里斯科爾早些時候的問題，你再次重申了剝離前的銷售前景。只是想知道，鑑於您所說的這些零售商現在提前開標，您現在的信心或知名度水平如何，這往往不是常見的做法，而且似乎正在重新開標的投標現在已經由於這些零售商更加關注其盈利能力，因此以更具競爭力的價格完成工作。所以我的意思是，我想，這聽起來是一個相當大的變化。因此，再次強調一下，了解您現在正在重申全年的可見度水平。

Well, we've got a spreadsheet in front of me that is kind of the most detailed I've had in years and this came up through the 5 operating divisions. And I think that month by month we're seeing each of those 5 develop a better sense of their marketplace and their customers. The other matter here is that the -- both the Retail and the foodservice industries now are suffering from a small decline in volume, which given their cost structure has great import, and what we have to do as Dennis eloquently talked about earlier, is we now have a go-to-market proposition where people have specialized product knowledge. They're focused on a smaller set of items. We know that 36 of our customers generate 80% of all the private label revenue in our business, and every 1 of those 36 has got detailed attention with regard to what those opportunities are. So as each month, each quarter goes by, I think we are confident in our capability in this regard is getting even more finely tuned. Last component we just put the SAP in the one of our largest Snacks units. And as that system marches -- progressively marches across the totality of the business, we get more transparency, better information, shorter lead times, and the business will take advantage of that, over.

好吧，我面前有一份電子表格，這是我多年來擁有的最詳細的電子表格，它是透過 5 個營運部門得出的。我認為，隨著時間的推移，我們會看到這 5 家公司對他們的市場和客戶有了更好的認識。這裡的另一件事是——零售業和餐飲服務業現在都在遭受數量小幅下降的影響，考慮到它們的成本結構，這具有很大的重要性，正如丹尼斯早些時候雄辯地談到的那樣，我們要做的就是我們現在有一個進入市場的建議，人們擁有專業的產品知識。他們專注於較小的一組專案。我們知道，我們的 36 家客戶創造了我們業務中所有自有品牌收入的 80%，而這 36 家客戶中的每一位都得到了對這些機會的詳細關注。因此，隨著每個月、每季的過去，我認為我們對自己在這方面的能力越來越有信心。最後一個元件我們只是將 SAP 放入我們最大的零食單元之一。隨著系統的逐步發展，我們將獲得更高的透明度、更好的資訊、更短的交付時間，而企業將充分利用這一點。

And we'll take our next question from Robert Moskow with Credit Suisse.

我們將回答瑞士信貸銀行的羅伯特·莫斯科 (Robert Moskow) 提出的下一個問題。

I thought maybe I could just delve into the beverages segment just for a second. I think you said that competition has been intense and you've had to take some price rollbacks in order to get business, but now coffee prices are rising. Is this different from what your plan was for the year? Like I imagine your plan all along was to price so that you could get more volume and the volume is up. So are you essentially saying that like profitability and beverage is going to be weaker than you thought or are you saying that you now have to try to take some pricing higher in order to offset higher coffee [from last] year?

我想也許我可以深入研究一下飲料領域。我想你說過競爭很激烈，你必須採取一些價格回落才能獲得業務，但現在咖啡價格正在上漲。這與您今年的計劃有什麼不同嗎？就像我想像的那樣，你的計劃一直是定價，這樣你就可以獲得更多的銷量，並且銷量會增加。那麼，您本質上是說盈利能力和飲料將比您想像的要弱，還是說您現在必須嘗試提高一些定價以抵消去年咖啡價格上漲的影響？

Rob, this is Sam. The biggest change in the last year from what trends had been and what we'd expected there were really 2. First, the pure Green Mountain effect that had been overwhelming the industry a couple of years ago has moderated, and it's -- we understand -- it's clear to us that under new ownership and new leadership they will continue in private label. But as they make it a complementary part of their business rather than their primary driver. The other big factor is that as private label has grown, all of the growth has come in a handful of accounts whose position with the consumer and their margin structure is that they are highly price competitive, and these are businesses that we have earned to, regardless of what the stated gross margin is, we've learned to operate those businesses in a way that we get to the full benefit of volume even if it is more from a base of looking at activity-based accounting than the conventional margin calculation. And having said that, I think we'll -- let me ask -- go to Dennis I think we'll pass along those coffee increases as they come to us.

羅布，這是山姆。去年與趨勢和我們的預期相比，最大的變化實際上有 2 個。首先，幾年前壓倒整個行業的純粹的綠山效應已經減弱，而且我們理解- 我們很清楚，在新的所有權和新的領導下，他們將繼續使用自有品牌。但他們將其作為業務的補充部分，而不是主要驅動力。另一個重要因素是，隨著自有品牌的成長，所有成長都來自少數客戶，這些客戶在消費者中的地位及其利潤結構是，它們具有高度的價格競爭力，而這些是我們贏得的業務，無論規定的毛利率是多少，我們都學會了以充分利用銷量的方式經營這些業務，即使它更多地基於基於活動的會計而不是傳統的利潤計算。話雖如此，我想我們會——讓我問一下——去找丹尼斯，我想我們會在咖啡增加到我們這裡時將其傳遞給我們。

Yes, we've been able to do that, Rob. I think the fundamental change that's happened in the single-serve coffee business has frankly just been shelf price and the pressure that has been put on both by retailers to hit that shelf price, the average shelf price per unit is down about $0.50 ending Q1 compared to where it was last year in Q1. And frankly, there is some capacity, and combination of excess capacity for some of our competitors and a push for the brands to expand and reduce price on their own private label brands has caused this issue. It's not really related to green coffee price. I think that we'll be able to offset with green coffee. I think this is just a fundamental shift in the demand and capacity within private label single-serve coffee right now.

是的，我們已經能夠做到這一點，羅布。我認為單份咖啡業務發生的根本性變化坦率地說只是貨架價格以及零售商為達到該貨架價格而向雙方施加的壓力，與第一季度末相比，每單位平均貨架價格下降了約 0.50 美元到去年第一季的水平。坦白說，存在一定的產能，我們的一些競爭對手產能過剩，加上品牌擴大自有品牌並降低價格的推動，導致了這個問題。這與生咖啡的價格並沒有真正的關係。我認為我們可以用生咖啡來抵銷。我認為這只是目前自有品牌單份咖啡的需求和容量的根本轉變。

I guess my question is it -- is the year panning out like weaker than you thought and you have to try to catch up to make it or you basically saying that you had planned for this all along?

我想我的問題是——這一年的表現是否比你想像的要弱，你必須努力趕上才能做到這一點，或者你基本上是說你一直在計劃這件事？

It's just a little bit weaker I would say. We once quite a bit board new business then we thought we're going to win but came at a lower price than what we had originally expected. I think you can see it in the measured channel data. The brand volumes are challenged and private brand continues to grow. We're winning but the mix has been a little lower on the margin than what we had originally planned.

我想說的是，它只是有點弱。我們曾經相當多地開展新業務，然後我們認為我們會贏，但價格比我們最初預期的要低。我想你可以在測量的通道數據中看到它。品牌數量受到挑戰，自有品牌持續成長。我們正在獲勝，但組合的利潤率比我們最初計劃的要低一些。

Rob, a handful of retailers have redefined this market. The positive effect for us is that while brands were 0, completely flat for the year as of the quarter, we've garnered 50% growth. The other matter here is that what will not show up in the syndicated channels is the growth in e-commerce. And while that is a small part of our business, we expect this year to have our third consecutive year of double-digit increases in that channel, broaden that as it goes along.

羅布，一些零售商重新定義了這個市場。對我們的正面影響是，雖然品牌數量為 0，截至本季全年完全持平，但我們實現了 50% 的成長。這裡的另一件事是，聯合通路中不會出現的是電子商務的成長。雖然這只是我們業務的一小部分，但我們預計今年該通路將連續第三年實現兩位數成長，並隨著其發展而擴大。

And our next question comes from Bill Chappell with SunTrust.

我們的下一個問題來自 SunTrust 的 Bill Chappell。

Just 2 kind of follow-up questions. One, on the pricing commodity issue, I mean, how much of it is snack nuts? Is that 50% of what you're looking at or is it really more broad based?

只有 2 種後續問題。一，關於商品定價問題，我的意思是，其中有多少是零食堅果？這是您所關注內容的 50% 還是真的更廣泛？

The majority of it is snack nuts based, I would say more than 50%. That's the biggest input challenge at the moment. There are other pieces that are up a bit frankly, there's a couple that are down but basically, it's a nut issue both in pricing and in availability with some of the tree nuts from overseas.

其中大部分是以堅果為主，我想說超過 50%。這是目前最大的輸入挑戰。坦白說，還有其他一些產品有所上漲，也有一些有所下降，但基本上，這是一個堅果問題，無論是定價還是來自海外的一些堅果的供應情況。

Okay, and then secondly, on the -- back on the beverage side. We've heard that some of the retailers are taking a harder look at the shelf space allocated, maybe taking out some of the underperforming brands and shrinking the overall space that they allocate towards the space. Is that happening and would you be kind of -- I assume that's a net positive for private label as they get rid of some of the other value or other low-priced brands that aren't turning.

好的，然後第二點，回到飲料方面。我們聽說一些零售商正在更仔細地審視分配的貨架空間，可能會剔除一些表現不佳的品牌，並縮小他們分配給貨架的整體空間。這種情況是否正在發生，你會不會——我認為這對自有品牌來說是一個淨積極因素，因為他們擺脫了一些其他價值或其他沒有轉變的低價品牌。

It's a great factor in favor of private label, and it is happening, but it is at an account-by-an-account basis. And -- but I think what all those who follow the syndicated data and broader measures will see that the shift is moving toward those who have begun to practice the category management and I believe, Bill, that more than a year ago, I indicated that we were -- our database was tracking 209 brands and over 1,900 SKUs, and that's simply a process that the grocers in their own self-interest will regulate more closely and it will benefit private label.

這是有利於自有品牌的一個重要因素，而且它正在發生，但它是在逐個帳戶的基礎上進行的。而且 - 但我認為所有關注聯合數據和更廣泛措施的人都會看到，這種轉變正在向那些已經開始實踐品類管理的人轉變，我相信，比爾，一年多前，我指出我們的數據庫正在追蹤209 個品牌和1,900 多個SKU，這只是一個過程，雜貨商出於自身利益將進行更嚴格的監管，這將有利於自有品牌。

And we'll take our next question from Brett Hundley with The Vertical Group.

我們將回答 The Vertical Group 的 Brett Hundley 提出的下一個問題。

Sam, I just had 2 quick questions for you. My first, just to make sure I'm maybe thinking about this opportunity correctly. As I look at the long-term volume opportunity for you guys and if I try and hold kind of the macro flat, every year, you have a mix of new store build that occurs at the retail level. And what I'm kind of expecting this year and beyond is that, that mix may be able to change in your benefit as you have hard discounters coming into the market and building stores. And so what I'm trying to understand and I would appreciate your view on is do you see kind of the mix of new store build changing in years ahead to the point where it could actually benefit you and add volume relative to previous years holding everything else equal?

山姆，我只是想問你兩個問題。我的第一件事，只是為了確保我是否正確地考慮了這個機會。當我著眼於你們的長期銷售機會時，如果我嘗試保持宏觀水平不變，每年，你們都會在零售層面上建立新的商店。我預計今年及以後，隨著硬折扣店進入市場並開設商店，這種組合可能會改變您的利益。因此，我想了解的是，我希望了解您的觀點，您認為未來幾年新商店建設的組合是否會發生變化，達到實際上可以使您受益並相對於前幾年擁有一切的數量增加的程度否則相等嗎？

I do, and there is a direct -- there are 3 effects here. The first is that they announced, 2 world leaders, plans to expand their footprint by thousands of stores. And that shift will bring -- expose more consumers to pricing programs that have worked so well for those chains in other markets. I think the second matter is that, and this is the case, I cannot name the customer but with -- particularly with 1 very fine national supermarket chain, actually 2 of them, and you see them now kind of creating stores within the store. And the biggest effect that, that hasn't -- had has been in the better-for-you premium private label area. And where it used to be that there was a limited choice with regard to better-for-you items and grocers that focused entirely on that sector. Now in response to that consumer move as well as more discounters, the store within a store has become a very attractive proposition, with customer brands where people are willing to invest and create a brand that's a strategic element. And then lastly you've got the millennial consumers who are -- who have learned to shop for immediate convenience, as well as complete transparency about price. And that I think will benefit us in a smaller way but significant over the long term with regard to the attractiveness of an e-commerce of private label.

我願意，而且有一個直接的——這裡有 3 個效果。首先是他們宣布，兩位世界領導者計劃擴大其足跡，開設數千家商店。這種轉變將使更多消費者接觸到對其他市場的連鎖店非常有效的定價計劃。我認為第二個問題是，在這種情況下，我無法說出客戶的名字，但是- 特別是1 個非常好的全國連鎖超市，實際上是其中2 個，你看到他們現在在商店內創建商店。而最大的影響（尚未發生）是在更適合您的優質自有品牌領域。過去，對於更適合您的商品和完全專注於該領域的雜貨店來說，選擇有限。現在，為了回應消費者的舉動以及更多的折扣店，店中店已成為一個非常有吸引力的主張，人們願意投資並創造一個具有戰略要素的品牌。最後，千禧世代的消費者已經學會了為了即時方便以及價格完全透明而購物。我認為這將以較小的方式使我們受益，但從長遠來看，就自有品牌電子商務的吸引力而言，它的意義重大。

I appreciate that. And then just secondly, your recent soup announcement shows that divestiture is both possible and maybe top of mind for you guys. Can you talk about the strategic sense, as you said today of further monetizing other noncore assets, deleveraging, and then building scale through M&A in categories deemed growth year are more attractive. You've put that 2-by-2 up for us a number of times in recent years and explained maybe the benefits in being in various parts there. But can we think about that matrix changing a little bit?

我很感激。其次，你們最近的湯公告表明，剝離是可能的，而且可能是你們的首要考慮。您能否談談策略意義，正如您今天所說，進一步將其他非核心資產貨幣化、去槓桿化，然後透過併購在被認為成長年份更具吸引力的類別中擴大規模。近年來，您多次為我們提出了 2×2 的概念，並解釋了在其中的各個部分的好處。但我們可以考慮這個矩陣稍微改變一下嗎？

Well, if you go back -- yes, we can, and if you go back to I think Slide 5, while we did not put numbers there, if I'll -- if you take -- in both customers and categories, if I look at the gain in the green quadrants and then the loss in the red, when you annualize the gains in green customers, it's been over $100 million rate in the first quarter, the same for green categories. When I look at the red, red, as we call it, we are diminishing our business in the most marginal categories, and customers at a rate in the first quarter that, again, exceeded $100 million in both instances. And so the shift is on here. I think that we also will get the benefit from this organization. Now we've got not only 5 divisional presidents each with a P&L, but we have 32 general managers each with a P&L. And their entire focus is on only 1 business. And that leverages both the top side the better, and it exposes those parts of the business that operate less well. The third factor I would say coming into this, and it's a big, big thing is I'd indicated that we've already identified 3,100 SKUs to eliminate and 260 customers either to consolidate or discontinue. And that type of focus will allow us to -- and I get below the kind of the fog of the aggregate and determine to a far finer degree, which of these businesses should we put more capital into. And in that regard, Matthew and Dennis are running a capital allocation program that's really focused on growth and margins. And then we'll deal with the converse of that. I do think that with regard to building these businesses through M&A that as our leverage comes down and we extend our SAP systems across the totality of the business, we will continue to be in that M&A market with a primary focus on better-for-you snacks, on-trend beverages and e-commerce capabilities.

好吧，如果你回去 - 是的，我們可以，如果你回到我認為幻燈片 5，雖然我們沒有在那裡放數字，但如果我 - 如果你考慮 - 在客戶和類別中，如果我看一下綠色象限的收益，然後是紅色象限的損失，當你將綠色客戶的收益年化時，第一季的收益超過1 億美元，綠色類別也是如此。當我看到紅色，紅色（我們稱之為紅色）時，我們正在以最邊緣類別的業務和客戶數量減少，第一季的速度再次超過 1 億美元。所以轉變就在這裡。我認為我們也將從這個組織中受益。現在，我們不僅有 5 位部門總裁，每個人都有損益表，而且有 32 位總經理，每個人都有損益表。他們的全部注意力只集中在一項業務上。這樣可以更好地利用頂層，同時也暴露了業務中運作不佳的部分。我要說的第三個因素是一件非常非常大的事情，我已經指出我們已經確定了 3,100 個需要消除的 SKU，以及 260 個需要整合或終止的客戶。這種關注將使我們能夠擺脫整體的迷霧，並在更精細的程度上確定我們應該向哪些業務投入更多資金。在這方面，馬修和丹尼斯正在實施一項真正關注成長和利潤的資本分配計劃。然後我們將處理相反的情況。我確實認為，關於透過併購建立這些業務，隨著我們的槓桿率下降，並且我們將 SAP 系統擴展到整個業務，我們將繼續留在該併購市場，主要專注於為您提供更好的服務零食、流行飲料和電子商務功能。

And we'll take our next question from Amit Sharma with BMO.

我們將回答 BMO 的 Amit Sharma 提出的下一個問題。

Dennis, you gave that Feb and in March, volume number. Do you have it -- do you have the comparable dollar number as well from organic growth perspective?

丹尼斯，你給了二月和三月的捲號。你有嗎——從有機成長的角度來看，你有可比較的美元數字嗎？

No, I don't actually have that. I've got the volume because I contract that with the old systems, but the dollars, I don't have that handy.

不，我實際上沒有那個。我有這個數量，因為我與舊系統簽訂了合同，但美元，我手頭上沒有。

Okay, and then the pricing pressures or price competitiveness that you talked about, is it across all product segments or do you -- did you see it more on the NBE or the value side and less on the premium side or not...

好的，然後您談到的定價壓力或價格競爭力，是否涵蓋所有產品領域，或者您是否在 NBE 或價值方面看到更多，而在高端方面看到較少…

It's really -- it's not so much at the product price point or the style. The majority of it is in the snack nut category. We've got some businesses that are relatively moderate and are slightly in the plus side. I think we're all getting hit a little bit by linerboard pricing, which has gone up which is making all the packaging material more expensive. But rather than a premium value it's really much more in the anything that has to do with nuts.

確實，這與產品價格或款式無關。其中大部分屬於零食堅果類別。我們有一些業務相對溫和，並且略有上漲。我認為我們都受到了掛面紙板價格的影響，掛麵紙板價格上漲，導致所有包裝材料變得更加昂貴。但與其說它具有溢價價值，不如說它更重要的是與堅果有關的任何東西。

Got it, and given that historically, snack nuts, the pass-through works well and volumes are probably more at risk than the actual margin. Do you expect or as you talked about recovery in the back half from a margin perspective, how much of that is just this pricing that you're probably putting in place now as a catch-up in the back half?

明白了，考慮到從歷史上看，零食堅果的傳遞效果很好，成交量可能比實際利潤面臨更大的風險。您是否期望或當您從利潤率角度談論下半年的復甦時，其中有多少是您現在可能為了趕上下半年而實施的定價？

There is a fair amount that'll be the realization of pricing that'll help the margin. I think the more important piece though is the structural adjustments we're making with the plant closings and other plant operating efficiencies that'll be taking place. But the pricing will certainly be a positive in the back half.

定價的實現將有相當多的金額有助於提高利潤。我認為更重要的是我們正在對工廠關閉和其他工廠運作效率進行的結構調整。但下半年的定價肯定會是正面的。

Any of you have -- any way of quantifying that, in terms of, even if it's buckets, hey, half of that comes from pricing, half of that comes from efficiency and the rest of that?

你們中的任何人都有任何量化的方法，即使是桶，嘿，一半來自定價，一半來自效率，其餘的？

No, it's hard to do that because as I mentioned, sometimes when you go in with the pricing what happens is that the price doesn't shift but the product shifts and that is taken -- that happens in light of working with our retailer to mitigate a price change by changing, say, packaging or labeling or the counts in the box that can help to mitigate the cost. So at the end of the day, the margin comes back, but it may or may not be a pure price adjustment as opposed to a product adjustment.

不，很難做到這一點，因為正如我所提到的，有時當你進行定價時，會發生的情況是價格沒有變化，但產品發生了變化，這是在與我們的零售商合作的情況下方發生的透過改變包裝、標籤或盒子中的數量等方式來緩解價格變化，這有助於降低成本。因此，最終，利潤會回來，但它可能是也可能不是純粹的價格調整，而不是產品調整。

And we'll take our next question from Jon Andersen with William Blair.

我們將回答喬恩·安德森和威廉·布萊爾提出的下一個問題。

Just to start, the planned business exits that impacted the first quarter, could you talk about whether that kind of exit activity will have carryover effects and at what kind of level as we look to the balance of the year?

首先，計劃中的業務退出對第一季產生了影響，您能否談談這種退出活動是否會產生延續效應，以及我們展望今年剩餘時間的影響程度如何？

The bar business which was the biggest of that will impact the whole year but decreasing in Q4. It's gone now, but it was in full place for the full half of -- at least half of last year and then started winding down. The other foodservice business is we -- I think we lapped that towards the end of the year as well. So it'll still kind of be a -- a bit of a year-over-year comparison headwind, John, for the quarters 2 and 3, for sure.

其中最大的酒吧業務將影響全年，但第四季將有所下降。現在它已經消失了，但它在去年的一半時間都處於完整狀態——至少是去年的一半時間，然後開始逐漸減少。另一個餐飲服務業務是我們——我想我們在今年年底也做到了這一點。因此，約翰，對於第二季和第三季來說，肯定會出現同比比較的逆風。

Okay, with respect to the TSA, is there any color you can provide there if we just kind of fast-forward to 2018, assuming you come off the TSA in total as planned early in the year. What kind of a net benefit are we talking about there once you fully opt that agreement with ConAgra. Is that something you can quantify at this point?

好的，關於 TSA，如果我們快進到 2018 年，假設您按照今年年初的計劃完全脫離了 TSA，您可以提供任何顏色嗎？一旦您完全選擇與康尼格拉達成的協議，我們將談論什麼樣的淨收益。這是你現在可以量化的東西嗎？

We kind of roughly were giving people the thought, it's hard to get that exactly, but my thought was it was going to be somewhere in the maybe $10 million range from a 50 to a 40. We talked about that last year but I don't see that changing. Part of the reason we still have this cost running through is we're still using their mixing centers, we still have the data center we're using. Those things are coming off later this year. We hope to have all of our own warehousing activities in place and off their mix. So there's some real opportunities for cost but they come along later, they are tied into the last of the systems conversion. So that benefit I'm referring to frankly is mostly going to be when we're off fully, which is at the very beginning of next year.

我們大致上給人們這樣的想法，很難準確地理解這一點，但我的想法是它的價格可能在 1000 萬美元的範圍內，從 50 到 40。我們去年討論過這個問題，但我認為這種情況不會改變。我們仍然需要承擔這筆成本的部分原因是我們仍在使用他們的混合中心，我們仍然擁有我們正在使用的資料中心。這些事情將在今年晚些時候消失。我們希望我們自己的所有倉儲活動都到位，並且脫離他們的混合。因此，存在一些真正的成本機會，但它們是後來出現的，它們與最後的系統轉換有關。因此，我坦率地提到的好處主要是在我們完全關閉時，即明年初。

Okay, one more for me, which is a little bit bigger picture question. When you talk about the -- your customers relooking at their corporate brand programs and I'm assuming that means both relooking at it from a bidding perspective and looking to negotiate better pricing, but also from a growth perspective and you -- also there's some commentary in the press release around where the competitor comments around specialization or customization given kind of the changing retail landscape. It would just seem to me that, that would -- that those 2 dynamics kind of reopening, bidding and customization or tailorization demanded by your customers would kind of work against you in terms of some of your pricing initiatives and some of your simplification initiatives, why is that not the case? I guess, is the question.

好吧，我還有一個問題，這是一個更大的問題。當你談論——你的客戶重新審視他們的企業品牌計劃時，我假設這意味著既從投標的角度重新審視它並尋求協商更好的定價，也從增長的角度重新審視它，而你— —也有一些新聞稿中圍繞著競爭對手針對不斷變化的零售格局的專業化或定制化進行評論的評論。在我看來，這兩種動態的重新開放、競價和定製或客戶要求的定制會對您的一些定價舉措和一些簡化舉措產生不利影響，為什麼情況並非如此？我想，這就是問題所在。

It's Sam. First, there are a -- there's a swirling atmosphere in the marketplace where there are currents going both -- in several different directions. We'd indicated that there are tailwinds and headwinds. I think for us, as people relook here, what you would hope with your customers is there will be a greater congruity between what their thinking is about their brand and what their actions are as merchants. And I think it will -- this will -- while there will be currents both ways, what will benefit us is we have reorganized to where we have highly specialized product and category expertise. In not only marketing, product development but also supply chain. And the other matter is we have divided the world into -- there are 36 category -- product -- customers out there that account for we know 80% of our profits, we believe that there's a great majority of growth in the business, and we have -- we can no longer treat all of them same way. We have to spread our resources and make our commitments in the context of what those relative opportunities are. And when you put that together, I think that whatever the (inaudible) will be better served than our competitors.

是薩姆。首先，市場上有一種漩渦的氛圍，有多種不同方向的潮流。我們已經指出，存在著順風和逆風。我認為對我們來說，當人們重新審視這裡時，你希望你的客戶對他們的品牌的看法和他們作為商人的行為之間能夠有更大的一致性。我認為這將會——這將會——雖然雙向都會有潮流，但對我們有利的是我們已經重組到擁有高度專業化的產品和類別專業知識。不僅在行銷、產品開發方面，而且在供應鏈方面。另一件事是，我們將世界分為——有 36 個類別——產品——客戶，我們知道這些客戶占我們利潤的 80%，我們相信業務的大部分增長，以及我們不能再以同樣的方式對待他們所有人。我們必須在這些相對機會的背景下分散我們的資源並做出我們的承諾。當你把這些放在一起時，我認為無論什麼（聽不清楚）都會比我們的競爭對手得到更好的服務。

And we'll take our next question from Akshay Jagdale with Jefferies.

我們將回答 Akshay Jagdale 和 Jefferies 提出的下一個問題。

I just wanted to make sure I'm understanding the picture correctly with your segment reporting changing. It's become a little bit harder to decipher how your legacy versus acquired business are doing, but the way I'm looking at it, it looks like a decent chunk of the acquired business margin improvement is actually pretty solid like meals, snacks. I saw some pretty good trends. Those are segments where acquisitions have played a bigger role. So am I reading that correctly? I mean, condiments still seem to be in a decelerating trend from a margin perspective. But overall, it seems like some of the major acquired businesses, which were having margin issues, are seeing some momentum the other way. And the big issue that I see this quarter that's a step change from what we've seen previously and you've talked about a lot is just your legacy beverage business. So am I understanding the picture correctly or maybe misrepresenting something?

我只是想確保我正確理解了您的細分報告變化的情況。解讀你的傳統業務與收購業務的表現變得有點困難，但從我的角度來看，收購業務利潤率改善的很大一部分實際上是相當穩定的，就像膳食、零食一樣。我看到了一些非常好的趨勢。這些領域的收購發揮了更大的作用。那我讀得正確嗎？我的意思是，從利潤率的角度來看，調味品似乎仍然處於減速趨勢。但總體而言，一些存在利潤問題的主要被收購企業似乎正在看到一些相反的勢頭。我在本季度看到的一個大問題與我們之前看到的情況相比發生了一步變化，而且您已經談論了很多，這就是您的傳統飲料業務。那麼我是否正確理解了圖片，或者可能扭曲了某些內容？

Well, I think as Dennis said our visibility into the P&L in that old construct is really gone as we focus on the business. Now it's only through a couple of ways that we can manage to get some idea of the tonnage that we ship and give that comparability. So it's easier to do on a volume basis, and I do think we're particularly pleased with the organic growth given the outside environment. I think just 1 more thing on the Beverages that weighed on us that we didn't touch on too much is really the significant volume ramp up and these freight inefficiencies, which we are now out of and should see that reverse as we go into Q2 and forward. So that was a onetime depression there, notwithstanding the other things that Dennis and Sam talked about.

嗯，我認為正如丹尼斯所說，當我們專注於業務時，我們對舊結構中損益表的可見性確實消失了。現在，我們只能透過幾種方法來了解我們運輸的噸位並進行比較。因此，在數量上更容易做到，而且我確實認為，考慮到外部環境，我們對有機成長特別滿意。我認為飲料方面還有一件讓我們感到壓力但我們沒有過多提及的事情，那就是銷量的顯著增加和貨運效率低下，我們現在已經擺脫了這種情況，進入第二季度時應該會看到這種情況的逆轉並前進。因此，儘管丹尼斯和山姆談論了其他事情，但那裡曾經一度陷入沮喪。

Okay, so Beverages, the margin issue is not all single-serve coffee, is that correct?

好吧，飲料，保證金問題不全是單杯咖啡，對嗎？

That's correct.

這是正確的。

Okay, and so when you look forward long term with your new segment reporting, will most of the -- so if you're successful in turning this business around that you bought, will most of the improvement come through in the segment operating profit margin, or will we see a decent chunk also in unallocated corporate expense?

好的，因此，當您對新的細分市場報告進行長期展望時，大部分- 因此，如果您成功地扭轉了您購買的這項業務，那麼大部分改進將通過細分市場的營業利潤率實現，或者我們會看到未分配的公司開支也有相當大的一部分嗎？

The bulk will come through on the margin side, and where you'll see the unallocated will be the timing of the stock compensation that Matthew talked about, which is the change in our grant structure moving from a late June date to a first quarter date. It's front ended, the operating expense relative to stock compensation expense. And actually, you've been around, you know that we used to always have a big lip up in the third quarter and then, third and fourth were the high points for stock compensation. Now it's Q1 and 2. And so that'll be a benefit in the unallocated.

大部分將在保證金方面實現，您將看到未分配的部分將是馬修談到的股票補償的時間，這是我們的贈款結構從六月底日期轉移到第一季日期的變化。它是前端的，是相對於股票補償費用的營運費用。事實上，你一直在周圍，你知道我們過去總是在第三季大張旗鼓，然後第三和第四季是股票薪資的高點。現在是第一季和第二季。因此，這將是未分配的收益。

Okay, so just 1 last one, I mean, in your new segment reporting, which is pretty helpful, I thought, the snack business obviously is the lowest margin. I mean, even when it was under the previous ownership, the margins were generally much higher. Is that -- I mean, structurally, is that just a lower-margin business and should we not expect it to get to 8%, 9% over time? I mean, can you just talk a little bit broadly about structural impediments, pricing cost related in the snack segment?

好吧，我的意思是，在你的新細分報告中，這非常有幫助，我想，零食業務顯然是利潤率最低的。我的意思是，即使在以前的所有權之下，利潤率通常也要高得多。我的意思是，從結構上來說，這只是一個利潤率較低的業務嗎？我們不應該期望它隨著時間的推移會達到 8%、9% 嗎？我的意思是，您能否廣泛地談談零食領域的結構性障礙和定價成本？

There are really 2 components, Akshay. One is that there is the largest single portion of our current business that is repackage -- buying the tree nuts, et cetera, in bulk and repackaging those for retail distribution. And there is -- in that business inherently lower margins in that. The commodities themselves are the largest single portion of the total cost and the retail value. I'll contrast that to other aspects of the business, particularly trail mix. Certain parts of the bars business where the opportunities there for better margins are really quite substantial. And until the last year, private label had trail mix largely to itself. We now have branded competition that will bring more people into the category, and I think you'll see that we'll be able to get higher margins there. The last point is that while we bought a nut business, what we are building is a better-for-you snacks business. And over a period of time, we'll introduce other products, other channels, including e-commerce. And while we will not change the fundamental nature of that part of the business, that only is related to repackaging nuts in smaller packages. We will build out the more attractive components of the better-for-you snacking.

Akshay，實際上有兩個組成部分。一是我們目前業務中最大的部分是重新包裝——批量購買堅果等，然後重新包裝以供零售分銷。該業務本質上利潤率較低。商品本身是總成本和零售價值中最大的部分。我會將其與業務的其他方面進行對比，特別是混合乾果。在酒吧業務的某些部分，獲得更高利潤的機會確實相當大。直到去年，自有品牌的混合乾果基本上都是屬於自己的。我們現在有品牌競爭，這將使更多的人進入這個類別，我想你會看到我們將能夠在那裡獲得更高的利潤。最後一點是，雖然我們收購了堅果業務，但我們正在打造的是更適合您的零食業務。在一段時間內，我們將推出其他產品、其他管道，包括電子商務。雖然我們不會改變這部分業務的基本性質，但這僅與將堅果重新包裝成較小的包裝有關。我們將開發出更有吸引力的、更適合您的零食成分。

And our last question comes from Pablo Zuanic with SIG.

我們的最後一個問題來自 SIG 的 Pablo Zuanic。

This is actually Aatish Shah on for Pablo. Just going back to margins again. In the past, I believe you mentioned that K-Cup margins have come down to the company average. But looking at the Beverage segment margins, we see that the margins are above the company average. So just trying to get an idea of what portion of that segment is K-Cups. And then just more generally, which segment do you see more of the margin upside?

這實際上是 Aatish Shah 為 Pablo 配音的。只是再次回到邊緣。過去，我相信您提到K-Cup的利潤率已降至公司平均水平。但從飲料部門的利潤率來看，我們發現利潤率高於公司平均。因此，我只是想了解 K-Cups 屬於該細分市場的哪個部分。更一般地說，您認為哪個細分市場的利潤率上升空間較大？

We don't disclose the individual components of any of the segments. So I can't talk about that. I think in the margin upside, I think we are highly focused across the board. One of the nice things about the division structure is we're not trying to pick and choose out of 32 product categories. We've got 5 division presidents and 5 teams and 5 operating groups who are focused on each one. So we're expecting all of them to be pursuing margin opportunities. And I think that's really where we're expect to go. I can't say that one of those segments is going to be a bigger contributor than the other. I think we expect all of them to be contributors to the margin improvement.

我們不會透露任何細分市場的各個組成部分。所以我不能談論這個。我認為在利潤率上升方面，我認為我們全面高度關注。部門結構的好處之一是我們不會試圖從 32 個產品類別中進行挑選。我們有 5 位部門總裁、5 個團隊和 5 個營運小組，每個小組都專注於其中的一個。因此，我們預計他們都會尋求利潤機會。我認為這確實是我們期望的方向。我不能說其中一個細分市場將比另一個細分市場做出更大的貢獻。我認為我們預計他們所有人都會為利潤率的提高做出貢獻。

Thanks, everyone, for joining us today. We look forward to seeing you and many of you later in the year, while we're on the road. Goodbye.

謝謝大家今天加入我們。我們期待在今年晚些時候，當我們在路上時見到您和您中的許多人。再見。

And that does conclude today's conference. Thank you for your participation. You may now disconnect.

今天的會議到此結束。感謝您的參與。您現在可以斷開連線。