Trends

B&G Foods, Inc. (BGS) Q4 2022 Earnings Call Transcript

Trending 1 year ago
beritaja.com

B&G Foods, Inc. (NYSE:BGS) Q4 2022 Earnings Conference Call February 28, 2023 4:30 PM ET

Company Participants

Sarah Jarolem - Senior Director of Corporate Strategy and Business Development

Casey Keller - President, Chief Executive Officer and Director

Bruce Wacha - Executive Vice President of Finance and Chief Financial Officer

Conference Call Participants

Andrew Lazar - Barclays Capital

Hale Holden - Barclays Capital

David Palmer - Evercore ISI

Michael Lavery - Piper Sandler

Robert Moskow - Credit Suisse

Rob Dickerson - Jefferies

Karru Martinson - Jefferies

Carla Casella - JPMorgan

Eric Larson - Seaport Research

Operator

Good afternoon, and invited to nan B&G Foods Fourth Quarter 2022 Earnings Call. Today's call, which is being recorded, is scheduled to past astir 1 hour, including remarks by B&G Foods guidance and nan question-and-answer session.

I would now for illustration to move nan telephone complete to Sarah Jarolem, Senior Director of Corporate Strategy and Business Development for B&G Foods. Please spell ahead, ma'am.

Sarah Jarolem

Good day and convey you for joining us. With maine coming are Casey Keller, our Chief Executive Officer; and Bruce Wacha, our Chief Financial Officer. You tin entree elaborate financial accusation connected nan 4th and afloat twelvemonth successful nan net merchandise we issued today, which is disposable astatine nan Investor Relations conception of bgfoods.com. Before we statesman our general remarks, I request to punctual everyone that portion of nan chat coming includes forward-looking statements. These statements are not guarantees of early capacity and truthful undue reliance should not beryllium placed upon them.

We mention you to B&G Foods Annual Report connected Form 10-K and consequent SEC filings for a much elaborate chat of nan risks that could effect our company's early operating results and financial condition. B&G Foods undertakes nary responsibility to publically update aliases revise immoderate forward-looking statements, whether arsenic a consequence of caller information, early events aliases otherwise. We will besides beryllium making references connected today's telephone to nan non-GAAP financial measures, adjusted EBITDA, adjusted nett income, adjusted diluted net per stock and guidelines business nett sales. Reconciliations of these financial measures to nan astir straight comparable GAAP financial measures are provided successful today's net release.

Casey will statesman nan telephone pinch opening remarks and talk various factors that affected our results, selected business highlights and his thoughts concerning nan outlook for nan remainder of fiscal 2023 and beyond. Bruce will past talk our financial results for nan 4th fourth and fiscal 2022 and our guidance for fiscal 2023.

I would now for illustration to move nan telephone complete to Casey.

Casey Keller

Good afternoon. Thank you, Sarah, and convey you each for joining america coming for our 4th fourth and fiscal 2022 4th net call. Fourth 4th capacity demonstrates beardown betterment pinch cumulative pricing actions covering ostentation and costs arsenic we expected. Net income accrued positive 9% versus past twelvemonth pinch adjusted EBITDA arsenic a percent of nett income astatine 15% compared to 14.9% past year.

Excluding items affecting comparability, gross profit arsenic a percent of nett income improved to 20.6% successful Q4 2022, expanding versus 19.7% successful Q4 2021. This is nan first 4th of wheat maize that costs still remains astatine historically precocious levels. In addition, freight proscription warehousing costs moderated from past summertime highs though still supra past year.

Pricing. In full pricing realization including merchandise operation contributed $99.2 cardinal successful Q4 compared to $75.5 cardinal successful Q3. Net pricing actions afloat recovered input costs ostentation successful nan 4th pursuing last value increases for 2022 implemented successful August and October.

Volume. Q4 income volumes were comparatively resilient against nan important value increases to offset inflation, partially reflecting nan betterment successful year-over-year customer work levels. In total, income measurement declines were astir $45 cardinal successful Q4. In particular, spices and seasoning's nett income grew positive 17.4% successful Q4 driven by improved accumulation and work performance. More than half of nan Q4 measurement declines were successful Green Giant driven by nan exit of a debased profit cans business successful nan dollar transmission and higher elasticity pursuing autumn seasonal battalion value increases.

Supply and service. Customer work infill rates improved during nan 4th reaching complete 95% successful December. Last year, December work levels were little than 90% impacted by disruptions from nan Omicron COVID version successful nan proviso and distribution network. At this shape immoderate proviso issues stay down materials readiness and co-pack availability, but those are becoming much isolated situations.

In totality, fiscal twelvemonth 2022 was challenging, pinch quickly rising inflationary inputs crossed cardinal commodities, peculiarly pursuing nan Ukraine warfare and nan changeless unit of implementing pricing actions that lagged costs increases to adhere to customer lead clip requirements. But we are encouraged by Q4 results and performance, reflecting nan drawback up of pricing against costs crossed nan portfolio, a moderating inflationary situation and nan betterment of our higher separator spices and seasonings business.

In fiscal twelvemonth 23, we expect ostentation to proceed but astatine little rates, presently estimated astatine positive 5 to 6% pinch nan biggest caller pressures connected tomatoes, glass, et cetera. So far, we person not seen important declines connected cardinal commodities, for example, soybean oil, corn, wheat, et cetera from mean costs levels successful fiscal twelvemonth 2022. Again, we person raised prices selectively to retrieve higher input costs, but only against cardinal commodity categories versus nan broader actions required successful fiscal twelvemonth 2022.

We person besides modified our pricing attack pinch customers connected Crisco to much accurately set to marketplace costs connected a quarterly basis. Finally, value elasticity is estimated to summation somewhat arsenic nan system tightens and immoderate consumers waste and acquisition down connected nan separator to cheaper alternatives. As a result, we expect fiscal twelvemonth 2023 to show continued separator betterment arsenic antecedently implemented pricing actions offset year-over-year inflation, peculiarly successful nan first half.

Net sales, excluding divestures are expected to summation astatine positive 1% to 2% driven by pricing benefits offset by measurement little cities. We expect that income maturation will besides beryllium impacted by mean value declines connected Crisco to bespeak projected little soybean lipid costs successful nan 2nd half of nan year, while maintaining gross separator dollars. Bruce will talk fiscal twelvemonth 2023 guidance successful much detail.

Further, we are continuing to make advancement connected reshaping nan B&G Foods portfolio. The waste of nan Back to Nature marque to Barilla was completed successful early January arsenic a proactive measurement to exit nan mini fragmented little separator snacks portfolio that is extracurricular of nan early of B&G Foods Corp. The proceeds from nan Back to Nature divesture were utilized to make a partial prepayment of our adaptable complaint word loan. We are actively reviewing different divestiture possibilities to sharpen nan portfolio attraction and trim leverage and debt.

Finally, nan modulation to 4 business units, spices and spirit solutions, meals, stiff and vegetables, and specialty remains connected way and they are mostly up and running. As discussed these units explain nan portfolio attraction and early platforms for acquisition and push accountability down to amended guidance and determination making. Business portion activity is moving to thrust improved margins, amended negociate proviso and request and build stronger maturation plans. We expect to beryllium successful a position to stock business portion financial capacity later this year.

Thank you and I will now move nan telephone complete to Bruce for much item connected nan quarterly capacity and outlook for nan year.

Bruce Wacha

Thank you, Casey. Good afternoon, everyone. Thank you for joining america connected our 4th fourth and fiscal 2022 net call. As you tin see, we had a reasonably beardown decorativeness to nan 4th fourth to an different challenging year. The superior challenges that we faced astatine nan onset of nan twelvemonth inflation, ostentation and ostentation continued to plague america passim nan remainder of nan year. We expected these inflationary pressures from nan beginning. But successful portion owed to nan outbreak of nan Ukraine war, nan inflationary pressures were overmuch greater than immoderate of america anticipated erstwhile we first put together our outlook for 2022.

Pricing was nan superior instrumentality to thief combat inflation, but nan structural delays progressive successful implementing value increases resulted from civilization customer precocious announcement requirements constricted our expertise to afloat offset these costs for overmuch of nan year. The ostentation was fierce and it flowed into our numbers from nan opening of nan year. Our pricing exemplary was back-half weighted though, and truthful arsenic we discussed successful our erstwhile net calls, our financial capacity successful nan first and 2nd quarters was highly challenged.

The 3rd 4th was besides difficult, but we began to spot greenish shoots arsenic nan gait of ostentation began to mean and our pricing began to drawback up pinch costs. This move group up a bully 4th fourth for us, which benefited from our pricing actions, a moderation successful nan gait of ostentation and a comparatively benign comparison erstwhile looking astatine nan 4th fourth of 2021 which was negatively impacted by proviso concatenation disruption successful nan closing period of nan twelvemonth from nan Omicron version of COVID.

In fiscal 2022 we generated $2.163 cardinal successful nett sales, $301 cardinal of adjusted EBITDA, and $1.08 successful adjusted diluted net per share. In nan 4th fourth of 2022, we generated $623.2 cardinal successful nett sales, $93.6 cardinal successful adjusted EBITDA and $0.40 successful adjusted diluted net per share. Our 4th fourth 2022 compares favorably to nan anterior twelvemonth period, erstwhile we generated $571.8 cardinal dollars successful nett sales, $85.1 cardinal successful adjusted EBITDA and $0.39 successful adjusted diluted net per share.

I will now item nan capacity of immoderate of our larger brands. Net income of Crisco, nan largest beneficiary of afloat twelvemonth pricing and nan wide B&G Foods portfolio accrued $16.8 million, aliases 15.9% successful nan 4th fourth of 2022as compared to nan 4th fourth of 2021. Net income of Crisco accrued by $78.5 million, aliases 26.8% for fiscal 2022, arsenic compared to 2021. Crisco was expected to present $270 cardinal successful nett income annually, erstwhile we acquired it successful precocious 2020, generated much than $370 cardinal successful nett income this year.

While costs are up significantly, and margins are down, we were capable to negociate Crisco to present profit dollars that were mostly successful statement pinch our acquisition model. Clabber Girl had different awesome twelvemonth nether B&G Foods ownership. Net income accrued $7 million, aliases 28.8% successful nan 4th fourth of 2022, arsenic compared to nan 4th fourth of past year, and for fiscal 2022 Clabber's nett income accrued by $17.5 cardinal aliases 22% compared to 2021. Net income of Cream of Wheat accrued by $5.1 cardinal aliases 26.1% for nan quarter, and $14.1 cardinal aliases 21% for nan fiscal year.

Net income of Ortega accrued by $3.5 million, aliases 10.4% for nan 4th and accrued by $3.1 million, aliases 2% for nan fiscal year. Our investments successful proviso concatenation look to beryllium paying disconnected Ortega, which had a beardown 2nd half of nan twelvemonth decorativeness pursuing a challenging first half, which was plagued by antagonistic income capacity erstwhile compared to fiscal 2021. Maple Grove Farms accrued by $1.3 million, aliases 6.6% successful nan 4th fourth of 2022 compared to nan anterior twelvemonth period. Maple Grove vanished nan twelvemonth up $3.2 million, aliases 4% compared to nan anterior year.

Our spices and seasonings business which had been plagued pinch proviso concatenation challenges passim overmuch of nan twelvemonth and had nan past highest 2021 capacity besides had a beardown finish. Net income of spices and seasonings were up $13.4 million, aliases 17.4% successful nan 4th fourth of 2022 compared to nan 4th fourth of 2021. Despite nan slow start, spices and seasonings vanished nan twelvemonth down conscionable $12 cardinal aliases 3.2% compared to nan anterior year.

Fourth 4th procurements represents a immense turnaround from nan anterior 9 months of nan year, which had decreased by $25.4 cardinal aliases 8.6%. Net income of Green Giant including Le Sueur decreased by $11.3 cardinal aliases 6.9% for nan 4th fourth of fiscal 2022 arsenic compared to nan 4th fourth of 2021. Net income of Green Giant were somewhat challenged successful nan backmost half of fiscal 2022 declining successful some nan 3rd and 4th quarters, though capacity successful nan 4th fourth showed comparative betterment to our 3rd 4th shortfall.

On a afloat twelvemonth ground nett income of Green Giant were down $19.5 cardinal aliases 3.6% erstwhile compared to nan anterior year. Base business nett income of each different brands successful nan aggregate accrued by $15.4 million, aliases 12.1% for nan 4th fourth of 2022 arsenic compared to nan 4th fourth of 2021 and accrued by $22.1 million, aliases 4.7% for fiscal 2022 compared to fiscal 2021.

Gross profit was $126.1 cardinal for nan 4th fourth of 2022 aliases 20.2% of nett sales, excluding nan antagonistic effect of $2.5 cardinal of acquisition, divestiture related expenses and nonrecurring expenses included successful costs of equipment sold during nan 4th fourth of 2022. The company's gross profit would person been $128.6 cardinal aliases 20.6% of nett sales. Gross profit was $101.9 cardinal for nan 4th fourth of 2021 aliases 17.8% of nett sales, excluding nan antagonistic effect of $10.8 cardinal of acquisition, divestiture related expenses and nonrecurring expenses, including nan costs of equipment sold during nan 4th fourth of 2021. The company's gross profit would person been $112.7 million, aliases 19.7% of nett sales.

Gross profit arsenic a percent of nett sales, excluding nan effect of acquisition, divestiture, and nonrecurring expenses was up astir 100 ground points successful nan 4th fourth of 2022 compared to past year's 4th quarter. The improved margins correspond a important turnaround from nan first 3 quarters of nan year, which saw gross profit arsenic a percent of nett sales, excluding nan effect of acquisition, divestiture related and nonrecurring expenses down 530 ground points compared to nan anterior twelvemonth periods.

Selling, wide and administrative expenses decreased by $0.4 cardinal aliases 0.9% to $51.9 cardinal for nan 4th fourth of 2022 from $52.3 cardinal for nan 4th fourth of 2021. The alteration was composed of reductions successful acquisition, divestiture related and nonrecurring expenses of $6.5 cardinal and user trading expenses of 0.2 cardinal partially offset by increases successful wide and administrative expenses of $2.3 cardinal storage expenses of $2.3 cardinal and trading expenses of $1.7 cardinal dollars.

Expressed arsenic a percent of nett sales, trading wide and administrative expenses improved by 0.8 percent points to 8.3% for nan 4th fourth of 2022, arsenic compared to 9.1% for nan 4th fourth of 2021. We generated $93.6 cardinal successful adjusted EBITDA successful nan 4th fourth of 2022, compared to $85.1 cardinal successful nan 4th fourth of 2021. The summation successful adjusted EBITDA was chiefly attributable to our pricing initiatives, which yet caught up to manufacture wide input costs and logistics inflation.

Additionally, we had a comparatively beardown decorativeness to nan twelvemonth successful 2022 that compared favorably to nan 4th fourth of 2001, which was negatively impacted by nan Omicron COVID variant. Adjusted EBITDA arsenic a percent of nett income was 15% successful nan 4th fourth of 2022, compared to 14.9% successful nan 4th fourth of 2021. Fourth 4th 2022 was nan first and only 4th of nan year, which had year-over-year increases successful adjusted EBITDA and adjusted EBITDA arsenic a percent of nett sales.

The improved margins correspond a important turnaround from nan first 3 quarters of nan year, which had a alteration successful adjusted EBITDA arsenic a percent of nett income of astir 490 ground points compared to nan anterior twelvemonth periods. Interest disbursal was $36.3 cardinal for nan 4th fourth of 2022, compared to $26.6 cardinal successful nan 4th fourth of 2021. The superior driver for nan summation successful liking disbursal was an summation successful our outstanding adaptable complaint debt, which is presently tied to LIBOR, arsenic good arsenic an summation successful LIBOR.

Depreciation and amortization was $19.5 cardinal successful nan 4th fourth of 2022 compared to $21.6 cardinal dollars successful nan 4th fourth of past year. We generated $0.40 successful adjusted diluted net per stock successful nan 4th fourth of 2022, compared to $0.39 successful nan anterior year. While we surely had our stock of challenges successful 2022, we are very happy pinch our decorativeness to nan year. As a reminder, our first and 2nd quarters of 2022 were nan astir challenging. The 3rd 4th began to show improvement. Our 4th fourth was nan culmination of a batch of difficult activity connected nan portion of our statement complete nan people of nan year, arsenic we adapted and responded to nan costs unit and proviso concatenation challenges that we faced.

As we look forward, we are cautiously optimistic astir our outlook for 2023 and beyond. We expect to person nan astir favourability arsenic compared to 2022 successful nan first half of nan twelvemonth arsenic we thigh nan top costs drags from 2022. We judge that our 3rd 4th will show a humble betterment successful 2023 versus 2022 and that nan 4th fourth of 2023 is expected to look akin successful galore regards to nan 4th fourth of 2022.

With that said, we person lived successful an uncertain world for nan past 3 years, and we don't afloat cognize what nan adjacent group of challenges will be. But based connected what we cognize today, we expect 2023 nett income of $2.13 cardinal to $2.17 billion, adjusted EBITDA to beryllium successful nan scope of $310 cardinal to $330 cardinal and adjusted diluted net per stock to beryllium successful a scope of $0.95 to $1.15.

Our guidance assumes pricing use passim nan twelvemonth and humble measurement declines coupled pinch elevated costs environment, and much humble levels ostentation passim nan portfolio. While nan system is still turbulent, we judge that we person seen nan worst of nan escalation and inflationary pressures and that dissimilar past year, pricing is yet being fixed nan opportunity to drawback up nan costs.

Additionally, we expect for afloat twelvemonth 2023 liking disbursal of $145 cardinal to $150 million, including rate liking of $140 cardinal to $145 million, depreciation disbursal of $47.5 cardinal to $52 million, amortization disbursal of $20 cardinal to $22 cardinal and effective taxation complaint of 26.5% to 27.5% and CapEx of $35 cardinal to $40 million.

In addition, to nan consequence factors discussed successful our yearly report, cardinal factors that could lead to either upside aliases downside risks to our guidance includes a level of elasticity that we whitethorn face, fixed nan value increases that we person already executed, arsenic good arsenic immoderate further elasticity, arsenic a consequence of our waste and acquisition walk optimization efforts.

And while we are hoping for astatine slightest a region successful nan levels of inflationary pressures that we are seeing successful definite input costs, we still unrecorded successful a very uncertain world, and we still expect nan unexpected. We are besides intimately watching nan promotional activity levels successful our cardinal categories and backstage explanation trends.

We judge that nan operation of a amended operating capacity successful 2023 coupled pinch much favorable moving superior trends, and a simplification successful our dividend announced past November, will thief thrust our efforts to trim leverage and amended our equilibrium sheet.

Now, I would for illustration to move nan telephone backmost complete to Casey for further remarks.

Casey Keller

Thank you, Bruce. In closing, we are making advancement to move astir and fortify B&G Foods portfolio and performance. Q4 results demonstrated betterment pinch pricing covering inflationary costs, and a affirmative simplification successful leverage. We besides completed nan first measurement successful reshaping nan marque portfolio pinch a Back to Nature divestiture, and person implemented nan focused business infrastructure to negociate nan portfolio pinch greater clarity and accountability.

This concludes our remarks and now we would for illustration to statesman nan Q&A information of our call. Operator?

Question-and-Answer Session

Operator

Thank you, sir. [Operator Instructions] The first mobility we person is from Andrew Lazar from Barclays. Please spell ahead.

Andrew Lazar

Great, bully afternoon.

Casey Keller

Good afternoon, Andrew.

Andrew Lazar

I conjecture to commencement off, I deliberation you mentioned 1% to 2% nett income maturation guidance for nan year, does that incorporated nan $50 cardinal aliases truthful successful mislaid income from nan waste of Back to Nature? Yes, that's, but that would beryllium an integrated number pinch Back to Nature retired of some nan fiscal twelvemonth 2022 guidelines and nan fiscal twelvemonth 2023 numbers. Got it okay, sorry, that 1 to 2 is integrated past okay. So successful nan ray of that, I conjecture I'm trying to get a amended consciousness aliases immoderate further colour you tin springiness america connected really that breaks down champion conjecture successful position of nan nett use from pricing that you'll still person this twelvemonth versus nan type of measurement offset. You evidently had 17% pricing use successful 4Q. You still, arsenic you said successful nan first half person immoderate somewhat easier comps connected pricing earlier you commencement to thigh much important price. And I'm trying to get a consciousness also, you know, really nan OpEx measurement to play retired astatine slightest astatine this stage. I cognize it's dynamic.

Casey Keller

Yes, I mean, I deliberation we expect to get pricing use successful that 1% to 2%. But portion of that pricing use will get offset erstwhile we -- because we person a scheme connected Crisco that we will little prices arsenic soybean lipid costs spell down. So retrieve we will spell to retailers and set prices arsenic soybean lipid commodity costs move and we expect them to move downward, peculiarly nan backmost half of nan year, twelvemonth complete year. So location is simply a small spot of offset to our pricing use pinch Crisco. But you cognize our pricing scheme will sphere gross separator dollars, but will person a nett income effect, a emblematic commodity business benignant of profile.

The different effect is that we, nan past twelvemonth and nan first quarter, we had reasonably dense request down nan benignant of nan Omicron variant, boosting request group staying location and different things. So that was -- that's a small spot of a measurement offset successful nan first 4th and we expect to get nan pricing use flowing done successful nan first quarter, but request whitethorn beryllium a small spot down. And yes, I deliberation you've seen that successful astir of nan different adjacent institution reports. So, look, I mean, we will astir apt person humble measurement decline, offset by pricing use that output nan 1% to 2% offset by Crisco pricing going down arsenic soybean lipid costs spell down, which is what we expect.

Andrew Lazar

Okay, and past gross margins, obviously, a mates years ago, anterior to nan pandemic and specified successful 2019, and moreover 2020 were benignant of person to that 24% to 25% level. Fourth quarter, obviously, you started to yet spot nan betterment year-over-year successful gross margin. I cognize there's a agelong measurement to go, but arsenic you deliberation done nan outlook for 2023, what benignant of gross separator betterment do you deliberation we tin get that's built into astatine slightest your EBITDA forecast?

Casey Keller

Yes, spell ahead, spell ahead.

Bruce Wacha

Yes, I was going to opportunity directionally it's going to beryllium comparable to nan activity that you're going to spot successful EBITDA margins and we don't typically springiness nan gross separator forecasts for nan year. We're going to beryllium moving backmost toward that direction, but we're not going to get each nan measurement location successful 2023. And immoderate of this is structural, if you deliberation astir Crisco, for example, that business is mostly speaking, generating nan profit dollars of nan business that we bought, but income are $100 cardinal higher, right. And truthful erstwhile you deliberation astir that, what that conscionable does, from an algebra standpoint to your margins, it's going to compress them, conscionable structural compression, moreover though you're generating nan aforesaid magnitude of profit separator dollars. We person that aforesaid effect crossed our portfolio, but successful a smaller measurement successful immoderate of nan brands and categories, we had to return price, but possibly not arsenic overmuch value to protect dollars.

Casey Keller

And past nan easiest measurement to opportunity that, Andrew, is that we expect to retrieve astir of nan gross profit dollars that we had successful 2021 and 2023 pinch our pricing actions, but obviously, arsenic Bruce said, margins won't beryllium nan same, because you've sewage a higher income guidelines that you're comparing nan gross profit dollars to.

Andrew Lazar

Yep, that's helpful. And past past thing, Casey, you know, I think, arsenic you started to spell done this much important benignant of portfolio review, and we cognize it's resulted successful a mates of smaller benignant of divestitures truthful far. But there's 1 larger plus Green Giant, and stiff that you've benignant of said, you conscionable commencement to get a small much clarity connected whether that's a business that you're going to benignant of beryllium each successful connected aliases each retired on. And if you're going to beryllium each successful connected it, it astir apt would require gaining much scale. But either way, you had to amended nan profitability first, earlier you could benignant of make that call. So I conjecture I'm trying to get a consciousness of wherever we are successful that benignant of travel of discovery, if you've sewage caller thoughts, 1 measurement aliases nan different connected really you're leaning, and wherever that somesthesia authorities successful that business benignant of fits into nan portfolio going forward? Thanks truthful much.

Casey Keller

Yes, I mean, nan portfolio reshaping I deliberation is an workout wherever we are trying to evidently amended nan separator floor plan of our halfway business, and besides nan maturation prospects of nan halfway business and besides platforms wherever we tin we tin get and build value. So nan jury, I mean, nan assemblage to maine is not, it's not retired connected Green Giant. We're still moving to amended nan business. We're still evaluating longer-term, do we want to standard up successful frozen, but it's an progressive chat that we're having internally. There are different things successful our portfolio reshaping that we are moving connected arsenic well, truthful much to travel connected that. I can't really talk astir it successful a batch of detail, but we are actively moving connected nan portfolio reshaping to group benignant of our platforms for nan future.

Andrew Lazar

Thank you.

Operator

Thank you. The adjacent mobility we person is from Hale Holden from Barclays. Please spell ahead.

Hale Holden

Thank you. I had conscionable 2 speedy questions. Can you springiness america nan adaptable complaint paydown that occurred aft nan Back to Nature sale, what were nan dollar amounts?

Bruce Wacha

Yes, we paid down $60 cardinal to nan word indebtedness truthful acold this year.

Hale Holden

Great, convey you, Bruce. And nan 2nd mobility is, arsenic you look crossed nan portfolio, and you deliberation astir nan measurement versus pricing versus elasticity benignant of discussion, which segments aliases brands you're watching astir closely, do you deliberation they are astir susceptible to backstage label, wherever you whitethorn not person a pricing aliases whitethorn person to set pricing complete time?

Casey Keller

I deliberation it's a combination. I mean, intelligibly erstwhile you deliberation astir thing for illustration Green Giant connected nan tin side, that's an area wherever we're ever watching marketplace share, seeing what nan branded competitors are doing and what nan backstage explanation competitors are doing that's little of a value-add category. So there's some, there's decidedly immoderate sensitivity location and that's an area wherever we took price. So that's 1 area for 1 reason. Crisco is evidently different one. It's nan marque successful rootlike oil, and it's nan only marque and shortening. But we still person to watch what's going connected because nan magnitude of prices from nan accrued standpoint was truthful great. So there's 2 examples connected different sides of nan coin, 1 positioning its commodity category. The different one, it is nan brand, but there's a batch of pricing, and you person that crossed nan portfolio to a lesser grade pinch everything.

Hale Holden

Great, convey you very much. I admit it.

Operator

The adjacent mobility we person is from David Palmer from Evercore ISI. Please spell ahead.

David Palmer

Thanks. Just a speedy mobility connected shipments versus consumption. Would you expect nan dispersed to beryllium affirmative shipment versus depletion successful nan first 4th arsenic well?

Casey Keller

Well, I deliberation what you're astir apt seeing successful a depletion time successful nan first 4th is that, you know, nan effect of nan Omicron shutdowns. I mean, our ops is, you know, for example, past January, we were benignant of partially closed. We're seeing, a difficult comparison to nan January early February clip play past year, and we will yet displacement to that depletion profile. You know, we are seeing our depletion trends amended now successful nan backmost half of February, arsenic we've benignant of travel done that Omicron worldly benignant of enactment astatine location agency closure situation past twelvemonth successful January, early February. So I think, for illustration I said, I deliberation we'll person a small spot of a tougher comp successful nan early portion of first quarter, but we expect it will get amended erstwhile pricing will travel done much connected a affirmative broadside successful nan backmost half of nan quarter.

David Palmer

I mean, successful nan 4th quarter, your shipments were up of consumption. Right? Is that a move you would expect successful nan first 4th arsenic well?

Casey Keller

No. The reason, and I'm sorry, I thought you asked astir nan first quarter. In nan 4th quarter, we retrieve past year, we had problem shipping towards nan extremity of nan 4th fourth because of Omicron telephone outs successful our distribution system. We had bearer telephone outs, storage telephone outs. So we had problem shipping towards nan extremity of Q4 successful 2021. We did not person immoderate problem shipping towards nan extremity of nan 4th successful 2022. So, we were -- fundamentally our proviso and distribution web was afloat functioning. So I deliberation that's nan main quality why you person a flimsy quality successful depletion and shipments successful Q4, but depletion was still reasonably beardown successful Q4 overall.

David Palmer

And you don't person immoderate of that Omicron disruption from past year. That would…

Casey Keller

No, what we saw was a surge successful request successful January and early February from nan Omicron disruption. So it moved from benignant of a proviso problem to an elevated request for pinch enactment astatine location depletion of nutrient and it's a move to a request issue. So we had elevated request past year.

David Palmer

Got it, and the…

Casey Keller

There was little of a proviso and shipping problem. We had we had work problems successful nan early portion of Q1 past year, but we besides had elevated request going on.

David Palmer

Yes, no, I'm conscionable wondering because of those disruptions past twelvemonth if your shipments would beryllium supra depletion this year, but it doesn't sound for illustration that's intelligibly going to beryllium nan case.

Casey Keller

I don't -- I deliberation we'll beryllium shipping person to depletion profiles this year, because you don't person nan disruption going on.

David Palmer

Yes. I conscionable wanted to travel up connected value elasticity for 2023. Do you expect value elasticity levels to stay akin to caller levels that we are witnessing successful nan measurement channel? Measure transmission data? And I'm conscionable wrapping different mobility astir value elasticity successful there. You know, what are immoderate of nan things that we're seeing going on? When we look astatine Green Giant, and spices it looks for illustration nan value elasticity is overmuch higher successful those parts of nan business? Maybe is location thing impermanent that's causing that? Any thoughts astir your value elasticity levels going forward? Thanks.

Casey Keller

Yes, I deliberation it evidently varies by category. Spice and seasonings I deliberation is little of an effect of value elasticity. It's usually -- we still person a hangover from nan first half of 2021 wherever we had work issues truthful we are benignant of rebuilding immoderate of nan distribution that we couldn't proviso and that that period, truthful I don't really deliberation that's an elasticity issue. I do judge that we are forecasting somewhat higher elasticity connected the, what I telephone nan commodity businesses, number 1 Crisco and Green Giant, peculiarly connected nan tin side, but besides connected immoderate of nan stiff rootlike side. We expect velocities will beryllium beneath 1 but a small spot higher than what we spot successful nan past arsenic consumers go much delicate to nan higher prices. And moreover if nan percent dispersed backstage explanation is nan same, nan absolute dollar dispersed is increasing a small bit. So, we are expecting a small spot higher laboratory tissues, but still expect to spot immoderate affirmative pricing use successful 2023. Did that help?

David Palmer

Yes, it was we were location was location thing peculiar happening pinch Green Giant aliases spices wherever you were taking extracurricular measures connected pricing that was retired of measurement pinch nan class aliases that was causing what we're seeing here?

Casey Keller

I mean, we don't deliberation truthful successful spices and again, herb had a awesome 4th quarter, had a slow commencement to nan twelvemonth successful 2022, which, for us, astatine least, was a batch much astir proviso chain. I cognize that there's a ample nationalist institution that sometimes has different explanations for their trends, but they've been a small spot different business than us. Certainly 2021 was a phenomenal twelvemonth for spices. It was challenging to thigh that successful 2022. Those challenges astir apt were exaggerated for america successful nan first half, moreover nan first 3 quarters of nan year, but a beautiful beardown decorativeness there. And 100% Green Giant Canada is simply a very different business and spices it's a overmuch much commoditized category.

And retrieve our spices business is not really an A to Z. It's much and blends successful different things. So it doesn't, I don't judge that it was past se arsenic I said it was we had immoderate proviso problems successful nan first and 2nd quarters of past twelvemonth that we had trouble supplying. And we had to benignant of rebuild distribution and which you saw benignant of happening successful nan 4th quarter. So it's I deliberation it's much astir our proviso and work portfolio. I mean, excuse me, performance, and recovering each of that nonaccomplishment distribution and getting backmost successful business, which is what you're seeing happening now and past Q4 and we've projected to 2023.

David Palmer

Thank you.

Operator

Thank you. The adjacent mobility we person is from Michael Lavery from Piper Sandler. Please spell ahead.

Michael Lavery

Thank you. Good afternoon.

Casey Keller

Hey, Michael.

Michael Lavery

With nan elevated SNAP [ph] benefits rolling off, I guess, technically tomorrow, tin you springiness america a consciousness of really you've factored that into your reasoning connected guidance? And possibly moreover specifically, are location immoderate cases wherever consumers trading down bully mightiness springiness you a benefit? And of people others wherever it'd beryllium a headwind conscionable immoderate possibly perchance puts and takes, but really that's factored into your reasoning connected nan year?

Casey Keller

Yes, I mean, to beryllium honest, we haven't historically really tried to necktie SNAP benefits into our forecasts a small spot tricky for us. I cognize group travel it. It's conscionable not thing that we've historically commented on. But I deliberation net, we are expecting much value sensitivity, successful benignant of little mediate income user guidelines adjacent year, which is why we've factored up immoderate of our elasticities connected our much commodity driven businesses, wherever you know, we person higher backstage explanation penetration. So I deliberation we've factored successful immoderate constituent of that that you're talking about, but it's much astir wide value sensitivity and a small spot higher elasticity from what we saw successful 2022.

Michael Lavery

Okay, that's helpful. And conscionable erstwhile you touched connected adjacent to nan extremity of nan prepared remarks, nan imaginable for immoderate waste and acquisition optimization, tin you unpack a small spot really that mightiness look and really difficult that whitethorn aliases whitethorn not beryllium to execute and what perchance stock implications could be?

Casey Keller

I deliberation this is an ongoing ratio productivity effort that we've been moving connected for nan past year, which is conscionable to return a look astatine our trade, capacity and guarantee that, we're getting due returns for it and moving towards our amended promotion events. We're not reducing waste and acquisition spending successful 2023 arsenic benignant of a, connected a percent basis, but we're trying to optimize nan capacity of it to, to make judge that we're producing stronger returns and stronger lifts connected nan events that we do tally pinch customers.

Historically, we haven't, successful my opinion, we person not done enough, astir promotion analysis, really understand that, to set our plans and to thrust efficiency. So I don't deliberation you're going to spot a simplification successful our waste and acquisition spend. You're going to spot an optimization that hopefully will drive, amended capacity and assistance disconnected nan spending that we do have.

Michael Lavery

Could location beryllium upside to waste and acquisition spending conscionable fixed that, that astir of nan manufacture is still beneath pre-COVID levels?

Casey Keller

I mean, we've come, we've brought, waste and acquisition spending backmost to get person to pre-COVID levels. There, I look, I deliberation nan upside to maine is if we tin get stronger arena capacity pinch nan spending that we're doing by readjusting, nan measurement we're spending our money and what types of events and vehicles we're using. So that to maine is nan upside of trying to get, a much businesslike waste and acquisition walk programme and optimizing nan spending performance.

Michael Lavery

Okay. That's helpful. Thank you.

Operator

Thank you. The adjacent mobility we person is from Robert Moskow from Credit Suisse. Please spell ahead.

Bruce Wacha

Hey Rob. Happy birthday.

Robert Moskow

Oh, that's very benignant of you and heartwarming. I admit it, Bruce. What amended measurement to walk it, right? So and now my mobility what gives you visibility on, connected pricing connected Crisco going little successful nan backmost half? Is it because it's little now and past you, it's going to, you're going to beryllium capable to travel that done successful nan backmost half? Or is it conscionable benignant of, you conscionable deliberation rootlike lipid prices are really precocious and they person to spell little and past I had a follow-up.

Bruce Wacha

I deliberation it's really, look, we don't cognize Rob. We don't cognize for certain, but nan logic why we're saying that is, we saw prices. If you conscionable deliberation astir those, nan market, we were, we had prices supra $0.80 a lb connected soybean oil, past twelvemonth moderating down to astir apt $0.70 cents a lb arsenic we are benignant of going successful nan 4th quarter.

Now we're down successful benignant of nan debased to mid 60s and value per pound, and conscionable our intelligence says we expect it to benignant of enactment location aliases possibly spell a small spot lower, which intends that arsenic we get into nan backmost half wherever we were experiencing those large pricing, moves past year, we deliberation it will beryllium astir apt beneath where, nan earlier we cognize wherever nan marketplace was past twelvemonth successful nan 3rd and 4th quarters successful particular.

Robert Moskow

Okay. And then, I wanted to cognize astir your CapEx guide. It's really beautiful low, it's, nary really nary different than it was successful 2019. And, astatine nan CAGNY convention we heard a batch astir companies investing successful CapEx, not conscionable for capacity, but besides to automate and digitize their proviso chains put successful much up-to-date instrumentality to summation efficiencies and I deliberation conscionable support up pinch a much volatile request environment. Are you concerned that your proviso concatenation whitethorn not beryllium keeping up pinch your peers that are making these investments?

Bruce Wacha

So I deliberation nan mates pieces that you person to retrieve is, telephone it astir 50% aliases truthful of our business is made done co-packers aliases statement manufacturers. And truthful location is simply a small spot little astir apt request from a percent of sales, if you want to deliberation astir it that way, from our factories. And past erstwhile you deliberation astir our CapEx spending complete clip adjacent point, it's akin successful dollar position to wherever we were astir apt 2018, 2019. We were successful nan process backmost past of implementing nan JDE ERP systems. And truthful location was a mates years of elevated walk that was astir apt positive $10 cardinal annually to get that done.

And truthful that going distant allowed america to benignant of proceed to walk a comparable dollar amount, but astir apt much of those projects successful statement with, what you're reasoning about. Even benignant of 2021, parts of 2022, we still had beautiful ample walk connected nan projects that we did astir Ortega, some from a Taco Shell connected a Taco Sauce wherever we accrued immoderate capacity there. And truthful location are examples of what you're talking about. I don't disagree pinch your remark different than there's immoderate offsets to it pinch regards to, this twelvemonth perchance not having a large walk task for illustration JDE aliases a request Taco Shell line.

Casey Keller

I would opportunity that, because our superior is shifting from nan ERP implementation to what we are doing pinch capacity additions. This coming year, we will beryllium much focused connected benignant of BI package enhancements, besides readying package enhancements, readying systems. I mean, we spot a large opportunity to amended nan effectiveness of our proviso operations and our readying operations and, pulling down inventory levels and different things. So that's becoming a larger attraction of wherever we're shifting our clip and attraction from a superior and upgrade standpoint.

Robert Moskow

Okay very good. Thank you.

Casey Keller

Thanks.

Operator

The adjacent mobility we have, it's from Rob Dickerson from Jefferies. Please spell ahead.

Rob Dickerson

Great, acknowledgment truthful much. Just to clarify, sorry, explanation mobility connected Q1 Bruce, I deliberation I heard you opportunity for illustration Q1 probably, look for illustration Q4. Is that, was that remark made benignant of pinch respect to actual, absolute EBITDA dollars?

Bruce Wacha

Yes, sorry, I deliberation you possibly misheard aliases I must person misspoken. So I deliberation our anticipation this twelvemonth is Q1 and Q2 were beautiful bad past year, Q2 was really worse than Q1. And truthful erstwhile we deliberation astir lapping and getting immoderate EBITDA betterment first 4th and 2nd 4th of 2023 we'll person immoderate favorability built successful conscionable from, from lapping, really bad capacity from 2022 2023 successful nan 3rd 4th should beryllium astir apt a small spot amended than 2022.

But nan grade astir apt won't beryllium nan aforesaid arsenic nan expectations astir Q1 and Q2. And past Q4 successful 2023 astir apt look much akin to Q4 successful 2022, meaning benignant of we had a beautiful bully 4th fourth was comparatively normal from a separator standpoint, I wouldn't expect worldly upside successful 4th fourth of 2023, erstwhile we spell to thigh it. But you should person immoderate beautiful bully separator upside successful nan first 4th and peculiarly successful nan 2nd 4th of this year.

Rob Dickerson

Okay. Got it. Perfect. And past I conjecture conscionable to travel backmost to this waste and acquisition optimization strategy, benignant of vis-à-vis nan stock trends that we're seeing, you recognize that there's been immoderate proviso constraints successful nan system. And I besides recognize what you said earlier, right? It's not that you're reducing that waste and acquisition but you're optimizing it. So I'm conscionable curious, like, arsenic we deliberation guardant done 2023, I'm assuming evidently nan constituent of, optimizing a waste and acquisition programme is benignant of for illustration regain share, astatine slightest successful immoderate of those categories. So possibly you conscionable supply immoderate further colour arsenic to benignant of really you're optimizing nan waste and acquisition and possibly if they're areas wherever you deliberation mightiness beryllium a spot much supported comparative to history. That's it. Thanks.

Bruce Wacha

Yes, I deliberation it's arsenic elemental as, we want to make judge that we are being, that we're promoting and that we're promoting at, competitory levels successful cardinal windows. We want to make judge that we're getting nan correct assistance from that spending. So on, immoderate of our businesses like, Crisco and Green Giant, Ortega, we're, we will beryllium competitory successful nan key, promotion windows and merchandising windows. We will set benignant of our capacity based connected what we're learning about, wherever we're astir effective.

As I said before, I don't really expect that we're going to trim promotion spending. We conscionable want to make it much effective, and we want to thrust ratio and assistance down nan existing walk that we're doing, and we want to make judge that we're promoting successful nan correct places. And coming disconnected this inflationary environment, we've sewage to make judge that we're astatine nan correct value points, competitory value points comparative to title and backstage label, which is, what we're doing. And we deliberation we're good planned to beryllium capable to do that successful our cardinal merchandising programs.

Rob Dickerson

All right, great. Thank you.

Operator

Thank you. The adjacent mobility we person is from Karru Martinson from Jefferies. Please spell ahead.

Karru Martinson

Good afternoon. When you look astatine nan pricing, are you getting pushback from nan retailers connected wherever you are? Is that portion of nan rationale for bringing down Crisco and what are you seeing successful position of your, nan competitory consequence connected pricing?

Casey Keller

No, I deliberation really we're successful a bully spot pinch retailers connected Crisco because we are treating it much for illustration a commodity pricing situation. So we person told them connected a quarterly ground we'll set pricing up and down connected Crisco to bespeak nan existent marketplace costs. And we, truthful we approach, we, we spell to them erstwhile a 4th and say, here's nan trailing, lipid costs and, what we judge we request to beryllium priced astatine based connected that moving up aliases down. So we're treating it much for illustration a axenic commodity for illustration java successful nan measurement we're managing pinch retailers.

And they're quite, they're beautiful happy pinch that because there's much transparency and visibility to what is driving nan pricing decisions and really we're driving that. And they're doing nan aforesaid point pinch their backstage explanation and different things.

So it's just, we've moved to that exemplary successful nan last, astatine nan very extremity of 2022. So this is new. We weren't operating this measurement successful 2021, which is, aliases excuse me, for nan astir of 2022. This is thing that we are carrying into 2023. That'll beryllium a different measurement that we're managing pricing that I judge will beryllium a cleaner measurement of benignant of moving our value up and down successful a volatile soybean lipid marketplace that's moving a benignant of successful relationship pinch lipid and besides allowing america to sphere our gross separator dollars pinch astatine different value levels.

Karru Martinson

Okay. And past I'm sorry if I missed it. Did we opportunity what nan Back to Nature divestiture generated and past erstwhile we look astatine nan imaginable for further assets for divestiture, what is the, nan dollar scope that we should beryllium reasoning astir arsenic we look astatine the, nan wide superior building and nan maturities successful 2025 and beyond?

Casey Keller

Yes. We really didn't disclose what nan dollar magnitude was for Back to Nature. It was a reasonable not earthshattering amount. I deliberation going forward, difficult to really foretell what nan dollar magnitude of early M&A activity is going to be. I deliberation nan superior point for america is shaping nan portfolio. We're moving successful nan guidance of business units, greater attraction connected what we're bully at, greater attraction connected buying what we deliberation we're bully astatine and perchance divesting things that are little core, and that will beryllium nan superior driver.

I deliberation nan further use from that will beryllium opportunistically reducing indebtedness successful a precocious liking complaint environment, I think, is great. But really, nan superior driving unit is going to beryllium portfolio optimization.

Karru Martinson

All correct and convey you very overmuch and admit it.

Operator

Thank you. The adjacent mobility we person is from Carla Casella from JPMorgan. Please spell ahead.

Carla Casella

Okay. This is – sorry, conscionable a mates of follow-ups. Just a remark connected your leverage target. You talked astir getting to mid-6s by nan extremity of this year. Any consciousness for timing aliases trajectory of that? And does that see immoderate imaginable further further plus sales?

Bruce Wacha

Yes. I don't deliberation we group an existent leverage target for this year. Not really commenting connected what nan number is, we do expect to bring it down substantially. I mean we've sewage a ratio that we request to beryllium wrong of, and we're going to activity towards that. We person a scheme to get location conscionable organically, expanding EBITDA, paying down debt. That tin beryllium enhanced by immoderate portfolio moves that consequence successful divestitures.

But again, we're not successful a world wherever we're mounting divestiture targets and an magnitude of proceeds that we expect to raise. That's not nan anticipation that we want to group for investors, and it's not really we're readying to tally nan business necessarily.

Carla Casella

Okay. Great. And past you mentioned connected nan Green Giant shelf-stable merchandise that tin that you exited different low-margin account. How overmuch much of this is location to go? Or are we astatine a much of a guidelines level wherever you're comfortable pinch nan separator floor plan of nan remaining Green Giant?

Casey Keller

I don't deliberation we person immoderate different exits of benignant of low-margin business connected Green Giant. I mean I deliberation this was a peculiar dollar transmission relationship that we weren't making a batch of money astatine that we exited past fall. But we don't person immoderate different progressive accounts they were driving changes successful our distribution profile. I mean, for nan astir part, we are attraction connected Green Giant connected improving our profitability, improving our mix, improving nan profitability of our caller innovations coming into nan market. That's been our superior focus.

On nan tin business, it's astir maintaining stability. And successful position of our measurement and margins connected that business, we don't spot nan canned rootlike business is simply a spot we're going to grow. We conscionable want to support a unchangeable separator floor plan and support it and support it steady.

Carla Casella

Okay. Great. And past wrong your benignant of income guidance for nan year, tin you springiness america immoderate much granularity successful position of which brands you expect to benignant of lead nan maturation versus those that are benignant of lapping tougher pricing? You mentioned Crisco benignant of passing done immoderate of nan pricing, nan reduced lipid costs. Any much granularity you tin springiness into nan thoughts down guidance?

Bruce Wacha

Yes. I don't deliberation we typically springiness marque forecast per se. I think, certainly, you would ideate to spot things complete time, for illustration spices & seasonings is successful a higher maturation complaint category, and that's our anticipation there. I'm not going to springiness a number connected it. As we said earlier, erstwhile you deliberation astir Crisco, if we are successful an situation wherever input costs travel down and therefore, pricing starts to normalize a small bit, difficult to ideate that being a maturation driver successful a twelvemonth wherever costs are going down and value comes down. Outside of that, I really would hesitate to effort to springiness you existent numbers connected a brand-by-brand basis.

Carla Casella

Okay. That's great. And past conscionable 1 past one. Retailer inventory levels. Any comments there? Are location immoderate retailers that look carrying a small spot much inventory? We've heard astir retailers having to transportation little because of nan little request for information stock. So your thoughts there.

Casey Keller

We haven't seen immoderate large adjustments successful our retailer inventories successful nan past respective months. I mean we've seen a emblematic shape of their year-end, they benignant of pulling inventories down a small bit, but we haven't seen immoderate benignant of imperishable aliases we person a imperishable simplification successful our banal levels.

Carla Casella

Okay, great. Thank you.

Operator

Thank you. The last mobility we person is from Eric Larson from Seaport Research. Please spell ahead.

Eric Larson

Yes, acknowledgment guys. Thanks for squeezing maine successful truthful nary day wishes for me?

Bruce Wacha

Is coming your day Eric?

Eric Larson

No, 2 weeks ago. [indiscernible].

Bruce Wacha

Happy belated birthday.

Eric Larson

All right. So thanks. I conjecture I’m 2 weeks older and that overmuch 2 weeks wiser than possibly Rob.

Bruce Wacha

You said that not us.

Eric Larson

Happy day Rob by nan way. So anyhow my mobility is connected cash. And truthful your 3rd 4th is ever your seasonally biggest build for moving superior because of nan rootlike battalion and each that benignant of thing. And it starts to travel disconnected beautiful meaningfully successful your 4th quarter. When I look astatine your – I don't cognize precisely what happened pinch inventories successful nan 4th quarter. I spot your afloat twelvemonth number is still up astir 20%. And you usage a small rate for nett moving superior successful nan 4th fourth this year, not arsenic overmuch arsenic nan twelvemonth before.

But do you person possibly immoderate high-cost lipid inventories you've sewage to activity disconnected here? Can you springiness maine a consciousness for really nan travel of your rate will beryllium benignant of for your first – possibly first quarter, 2nd -- possibly first half, 2nd half, however, you'd for illustration to possibly qualify it?

Bruce Wacha

You're talking 2023, not 2022, right?

Eric Larson

Correct. Correct. 2023.

Bruce Wacha

So nan overarching theme, some for 2022 and 2021 was input costs came up beautiful significantly. We saw that separator compression. Obviously, we benefited from pricing, but that flowed done our inventory. And truthful you do person that seasonality wherever 3rd 4th is ever beautiful rough. Fourth 4th is usually beautiful good. This year's 4th fourth was beautiful good, not arsenic bully arsenic nan anterior year's 4th quarter, but it was beautiful reasonable.

But we've had 2 years successful a statement of complete $100 cardinal increases successful inventory. We don't expect to person that arena this year. We expect to person immoderate favorability from a moving superior standpoint, modest, but favorability. And truthful moving superior alternatively of being a drain this twelvemonth should beryllium a small spot of a use aliases astatine slightest neutral, which will make nan full rate from operations mathematics beryllium a batch better.

And conscionable ideate moving superior aliases rate from operations, if you look astatine nan past 2 years, conscionable ideate connected a afloat twelvemonth basis, those numbers being positive $100 cardinal higher because that's what nan wounded was from.

Eric Larson

Okay. And truthful your remark that it should beryllium astatine slightest comparison favorably this year, it's connected a afloat twelvemonth ground and you're not – you won't – it's not needfully a first aliases 2nd half benefit. It's -- you're trying to qualify it arsenic nan afloat year.

Bruce Wacha

100%, positive nan usage of cash. Yes.

Eric Larson

Okay, each right. Sounds good.

Operator

Thank you. Ladies and gentlemen, location are nary further questions astatine this time. I would now for illustration to move nan level backmost complete to Casey Keller for closing comments. Please spell ahead, sir.

Casey Keller

Thank you each for joining america today. We admit your attention. As we've talked, we had a bully beardown 4th quarter, which showed betterment successful our pricing covering inflationary costs. And we look guardant to benignant of getting into fiscal twelvemonth 2023. Thank you.

Operator

Thank you, sir. Ladies and gentlemen, that past concludes today's conference. Thank you for joining us. You whitethorn now disconnect your lines.

Editor: Naga



Read other contents from Beritaja.com at
More Source
↑
close