Net sales, both reported and organic, increased 5% to $2.28 billion driven by gains in both Meals & Beverages and Snacks.
The growth was driven by a 4% increase in volume and mix reflecting heightened demand as at-home food consumption remained elevated as a result of the COVID-19 pandemic, partly offset by declines in foodservice and in partner brands within the Snyder's-Lance portfolio. Lower promotional spending net of price and sales allowances contributed a 1% increase to net sales growth.
Gross margin increased from 34.3% to 34.4%. Excluding items impacting comparability, adjusted gross margin decreased 10 basis points to 34.3% as cost inflation, other operational costs and continued COVID-19 related costs were partially offset by the benefits of supply chain productivity improvements and cost savings initiatives, as well as moderated promotional spending.
Marketing and selling expenses decreased 2% to $232 million. Excluding items impacting comparability in the prior year, adjusted marketing and selling expenses decreased 1% driven by the benefits of cost savings initiatives and lower marketing overhead costs, largely offset by an 8% increase in advertising and consumer promotion (A&C).
Administrative expenses increased 7% to $158 million. Excluding items impacting comparability, adjusted administrative expenses increased by $17 million, or 13%, to $152 million driven primarily by higher benefit-related costs and higher general administrative costs, partially offset by the benefits of cost savings initiatives.
Other income was $45 million compared to other income of $22 million in the prior year. Excluding items impacting comparability, adjusted other income was $15 million compared to $11 million in the prior year.
As reported EBIT increased 15% to $401 million. Excluding items impacting comparability, adjusted EBIT increased 8% to $393 million primarily due to higher sales volumes, offset partly by higher adjusted administrative expenses.
Net interest expense was $54 million compared to $146 million in the prior year reflecting a loss on the extinguishment of debt in the second quarter of fiscal 2020. Excluding items impacting comparability in the prior year, net interest expense declined 24% from $71 million to $54 million, reflecting lower levels of debt. The tax rate was 29.4% as compared to 16.2% in the prior year. Excluding items impacting comparability, the adjusted tax rate decreased 70 basis points to 24.2% from 24.9%.
As reported EPS from continuing operations were $0.80 per share. Excluding items impacting comparability, adjusted EPS from continuing operations increased 17% to $0.84 reflecting an increase in adjusted EBIT and lower adjusted net interest expense. ■