Business Segment Information

9 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

Our financial results are presented as two reportable segments: Retail and Foodservice. Costs that are directly attributable to either Retail or Foodservice are charged directly to the appropriate segment. Costs that are deemed to be indirect, excluding corporate expenses and other unusual significant transactions, are allocated to the two reportable segments using a reasonable methodology that is consistently applied.

Retail - The vast majority of the products we sell in the Retail segment are sold through sales personnel, food brokers and distributors in the United States. We have placement of products in grocery produce departments through our refrigerated salad dressings, vegetable dips and fruit dips. Our flatbread products and sprouted grain bakery products are generally placed in the specialty bakery/deli section of the grocery store. We also have products typically marketed in the shelf-stable section of the grocery store, which include salad dressings, slaw dressing, sauces and croutons. Within the frozen food section of the grocery store, we sell yeast rolls and garlic breads.

Foodservice - The vast majority of the products we sell in the Foodservice segment are sold through sales personnel, food brokers and distributors in the United States. Most of the products we sell in the Foodservice segment are custom-formulated and include salad dressings, sandwich and dipping sauces, frozen breads and yeast rolls. The majority of our Foodservice sales are products sold under private label to restaurants. We also manufacture and sell various branded Foodservice products to distributors.

As many of our products are similar between our two segments, our procurement, manufacturing, warehousing and distribution activities are substantially integrated across our operations in order to maximize efficiency and productivity. Consequently, we do not prepare, and our Chief Operating Decision Maker does not review, separate balance sheets for the reportable segments. As such, our external reporting does not include the presentation of identifiable assets by reportable segment. The composition of our identifiable assets at March 31, 2023 is generally consistent with that of June 30, 2022.

We evaluate our Retail and Foodservice segments based on net sales and operating income which follow:

	Three Months Ended  March 31,				Nine Months Ended  March 31,
	2023		2022		2023		2022
Net Sales
Retail	$	247,208	$	213,128	$	729,187	$	682,102
Foodservice	217,727		190,366		638,679		541,875
Total	$	464,935	$	403,494	$	1,367,866	$	1,223,977
Operating Income
Retail	$	36,943	$	22,213	$	129,195	$	119,997
Foodservice	22,405		18,556		81,030		52,690
Nonallocated Restructuring and Impairment Charges (1)	—		(22,723)		—		(23,749)
Corporate Expenses	(29,940)		(25,663)		(80,192)		(70,738)
Total	$	29,408	$	(7,617)	$	130,033	$	78,200

(1)Reflects restructuring and impairment charges related to the Bantam business and a facility closure, which were not allocated to our two reportable segments due to their unusual nature.

The following table sets forth net sales disaggregated by class of similar products for the Retail and Foodservice segments:

	Three Months Ended  March 31,				Nine Months Ended  March 31,
	2023		2022		2023		2022
Retail
Shelf-stable dressings, sauces and croutons	$	116,246	$	94,578	$	301,995	$	272,439
Frozen breads	85,165		73,328		275,447		258,426
Refrigerated dressings, dips and other	45,797		45,222		151,745		151,237
Total Retail net sales	$	247,208	$	213,128	$	729,187	$	682,102
Foodservice
Dressings and sauces	$	163,851	$	143,156	$	475,766	$	403,953
Frozen breads and other	53,876		47,210		162,913		137,922
Total Foodservice net sales	$	217,727	$	190,366	$	638,679	$	541,875
Total net sales	$	464,935	$	403,494	$	1,367,866	$	1,223,977

The following table provides an additional disaggregation of Foodservice net sales by type of customer:

	Three Months Ended  March 31,				Nine Months Ended  March 31,
	2023		2022		2023		2022
Foodservice
National accounts	$	172,304	$	146,959	$	504,310	$	414,840
Branded and other	45,423		43,407		134,369		127,035
Total Foodservice net sales	$	217,727	$	190,366	$	638,679	$	541,875