Net sales in the quarter, both as reported and organic, increased 15% versus the prior year to $2.6 billion.
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The combined impact of inflation-driven pricing and sales allowances more than offset volume declines.
Gross profit increased to $834 million from $722 million in the prior year. As a percent of sales, gross profit margin was 32.4% compared to 32.3% in the prior year. Excluding items impacting comparability, adjusted gross profit increased to $829 million from $727 million.
Excluding items impacting comparability, adjusted gross profit margin decreased 30 basis points to 32.2% as continued cost inflation and higher other supply chain costs as well as unfavorable volume / mix were mostly mitigated by inflation-driven pricing actions and productivity improvements.
Marketing and selling expenses increased 18% to $201 million and represented approximately 8% of net sales.
The increase was driven by higher advertising and consumer promotion expense (A&C), which increased 31% versus moderated levels in the prior year, and higher selling expenses, partially offset by increased benefits from cost savings initiatives.
Administrative expenses, on both a reported and an adjusted basis, increased 1% to $158 million and $155 million, respectively.
Other expenses were $18 million compared to other income of $1 million in the prior year. Excluding items impacting comparability, adjusted other expenses were $3 million compared to other income of $7 million in the prior year primarily due to lower pension and postretirement benefit income.
As reported EBIT increased to $436 million from $376 million in the prior year.
Excluding items impacting comparability, adjusted EBIT increased 15% compared to the prior year to $449 million primarily due to higher adjusted gross profit, partially offset by higher marketing and selling expenses and higher adjusted other expenses.
Net interest expense was $46 million compared to $47 million in the prior year. The tax rate was 23.8% compared to 20.7% in the prior year.
Excluding items impacting comparability, the adjusted tax rate was 23.8% compared to 20.8% in the prior year primarily due to the favorable resolution of several tax matters in the prior year.
As reported EPS increased to $0.99 per share compared to $0.86 per share in the prior year.
Excluding items impacting comparability, adjusted EPS increased $0.13, or 15%, compared to the prior year to $1.02 primarily reflecting the increase in adjusted EBIT, partially offset by a higher adjusted effective tax rate.
Cash flow from operations decreased from $288 million in the prior year to $227 million primarily due to changes in working capital, partially offset by higher cash earnings.
Capital expenditures were $77 million compared to $69 million in the prior year.
In line with the company’s commitment to return value to its shareholders, the company paid $115 million of cash dividends and repurchased common stock of approximately $41 million.
At the end of the first quarter, the company had approximately $375 million remaining under the current $500 million strategic share repurchase program and approximately $131 million remaining under its $250 million anti-dilutive share repurchase program. ■