The company is continuing its implementation of a streamlined operating model, anticipating completion in fiscal year 2024. The company expects cost savings of approximately $45 to $50 million in fiscal year 2024 from this initiative.

The Company initiated the extension of its payment terms with its suppliers in the second half of fiscal year 2020 in order to improve working capital as part of and to fund the IGNITE strategy and in keeping with evolving market practices.

The company successfully transitioned back to automated order processing and experienced lessening operational impacts in the second quarter as it made progress in returning to normalized operations after the cyberattack.

The company is continuing to implement its digital capabilities and productivity enhancements investment, with approximately $32 million and $59 million in operating expenses related to this investment incurred during the three and six months ended December 31, 2023, respectively.

The cyberattack resulted in wide-scale disruptions to the Company's business operations, including order processing delays and significant product outages, negatively impacting net sales and earnings.

The Company continues to experience an inflationary environment marked by unfavorable commodity costs and higher manufacturing and logistics costs. Increased interest rates and volatility in capital markets also contribute to a dynamic operating environment.

Continued inflationary pressures, macroeconomic conditions, and geopolitical instability, including conflicts in the Middle East and Ukraine and rising tensions between China and Taiwan, have increased global macroeconomic and political uncertainty.

Approximately 80% of the Company's sales are generated from brands that hold the No. 1 or No. 2 market share position in their categories.

The Company expects annual cost savings of approximately $75 to $100 million once the streamlined operating model is fully implemented, with benefits of $35 million realized in fiscal year 2023 and approximately $45 to $50 million anticipated in fiscal year 2024.

There were no share repurchases of common stock during both the three and six months ended December 31, 2023 and 2022, respectively.

Dividends per share declared were $1.20 for the three months ended December 31, 2023, compared to $1.18 in the prior year.

Effective July 1, 2018, under the requirements of U.S. GAAP, Argentina was designated as a highly inflationary economy, requiring the use of the U.S. dollar as the functional currency for the Company's subsidiaries in Argentina.