The company completed construction of a new french fry processing line in American Falls, Idaho and a new processing facility in Ulanqab, Inner Mongolia, China. Capacity expansions in the Netherlands and Argentina are on schedule.

Sales volume decline primarily reflected the carryover impact of decisions to strategically manage customer and product mix by exiting certain lower-priced and lower-margin business, customer share losses, and soft restaurant traffic.

In February 2023, the company completed the acquisition of the remaining 50% equity interest in LW EMEA for consideration consisting of €531.6 million ($564.0 million) in cash and 1,952,421 shares of common stock (valued at $197.3 million).

Sales volumes were negatively affected by lower order fulfillment rates related to the transition to a new ERP system in North America during the fiscal third quarter.

The company continues to implement profit-enhancing initiatives that improve the efficiency of the supply chain and general and administrative functions, focusing on cost-saving opportunities in procurement, manufacturing, logistics, and customer service.

The company is making some operating adjustments in the near term to manage through the current environment including focusing on driving volume growth, implementing targeted investments in price and trade support, pursuing additional cost and supply chain productivity savings, and rephasing investments to modernize production capabilities to better match the demand environment.

The company experienced significantly elevated commodity and supply chain costs, including the costs of labor, raw materials, energy, fuel, and packaging materials. Attempts to offset these cost pressures may not be successful.

The company's ability to manufacture or sell products may be impaired by damage or disruption to manufacturing, warehousing or distribution capabilities, or to the capabilities of suppliers, logistics service providers, or independent distributors.

The company expends considerable resources to develop and maintain relationships with many potato growers. In some instances, long-term agreements are in place, however, a portion of potato needs are sourced on an annual contracted basis.

As additional industry capacity comes online, restaurant traffic declines, or market demand otherwise decreases, the company may face competitive pressures that would restrict the ability to increase or maintain prices, or may lose market share.

Some of the company's customers are large and sophisticated, with buying power and negotiating strength. These customers may be more capable of resisting price increases and more likely to demand lower pricing, increased promotional programs, or specialty tailored products.

The company's business, value-added frozen potato products, is highly competitive. A strong competitive response from one or more of the company's competitors to the marketplace efforts could result in reducing pricing, increasing spend on promotional activity, or losing market share.

After the transition to a new ERP system in North America, the company experienced temporary reduced visibility into finished goods inventories at distribution centers, which affected the ability to fill customer orders and reduced sales and increased costs.

The higher manufacturing costs per pound largely reflected mid-single-digit cost inflation, in aggregate, for key inputs, including: raw potatoes, ingredients such as grains and starches used in product coatings, and labor.

The company continues to implement profit-enhancing initiatives that improve the efficiency of the supply chain and general and administrative functions.

At the beginning of the third quarter of fiscal 2024, the company began transitioning certain central systems and functions in North America to a new ERP system, as part of a multi-year effort to upgrade information systems and ERP infrastructure across the company.

The company evaluates the sustainability impacts of manufacturing processes and products in research and development activities and continue to drive processing innovations aimed at reducing waste and water usage and improving food safety and quality.

The company's CIDO joined the company in July 2023 with over 25 years of experience leading digital and information technology teams, including leading all aspects of her prior company's global enterprise digital roadmap, including finance, supply chain, and commercial solutions as well as data and analytics, including automation and artificial intelligence.

The company returned $384.0 million to stockholders during fiscal 2024, including $174.0 million in cash dividends on common stock and $210.0 million of share repurchases.

Capital expenditures are focused on announced manufacturing expansions in the Netherlands and Argentina, as well as capital investments to upgrade information systems and ERP infrastructure.

Short-term borrowings also increased as a result of additional borrowings under the new global revolving credit facility to support the expansion projects and working capital requirements.

The company is committed to creating and building a culture of giving. Employees are encouraged and enabled to support many charitable causes.

The company evaluates the sustainability impacts of manufacturing processes and products in research and development activities and continue to drive processing innovations aimed at reducing waste and water usage and improving food safety and quality.

The company's employees' health, safety, and well-being are the highest priority. The company strives for world-class safety at each of the facilities.

Sales volume decline primarily reflected soft restaurant traffic and frozen potato demand trends across key markets as consumers continued to adjust to higher menu prices.

The U.S. has experienced significantly heightened inflationary pressures since 2022.

The operating environment has changed rapidly over the past 12 months as global restaurant traffic and frozen potato demand softened.