The Middleby Corporation (NASDAQ:MIDD) Q3 2022 Earnings Conference Call November 9, 2022 11:00 AM ET
Company Participants
Tim Fitzgerald - Chief Executive Officer
Bryan Mittelman - Chief Financial Officer
James Pool - Chief Technology Officer
Steve Spittle - Chief Commercial Officer
Conference Call Participants
Saree Boroditsky - Jefferies
Tami Zakaria - JPMorgan
Jeff Hammond - KeyBanc Capital Markets
Todd Brooks - The Benchmark Company
Walt Liptak - Seaport
Operator
Thank you for joining us for The Middleby Third Quarter Conference Call. With us today from management are Tim Fitzgerald, CEO; Bryan Mittelman, CFO; James Pool, Chief Technology Officer; and Steve Spittle, Chief Commercial Officer.
After the company’s prepared remarks there will be a question-and-answer session and instructions will be given at that time. [Operator Instructions]
And please note this event is being recorded. I would now like to turn the conference over to Mr. Fitzgerald. Please go ahead, sir.
Tim Fitzgerald
Great. Thank you. And thanks everybody for joining us today on our third quarter earnings call. As we begin, please note, we have posted slides to accompany the call on our Investor page of the website.
We are pleased to have posted another record quarter, reporting 14% growth in organic sales and 23% growth in adjusted EBITDA. During the quarter, we also reported strong profitability with improvement in EBITDA margins to 26.5% at our Commercial Foodservice business, 23.9% at our Food Processing segment and 20.6% at our Residential business when excluding the impact of recent acquisitions.
The supply chain impacts continued to weigh heavily on the quarter, both in terms of disruption to our manufacturing operations and increased cost. However, our focus on selling of our latest product innovations is favorably impacting the profitability of our sales mix across our businesses, while pricing actions enacted earlier this year have partly offset the dilutive impact of material cost increases, with further pricing benefits expected to be realized in the quarters ahead.
Operationally, the significant investments we have made in the past quarters in automated production equipment and facility expansions are delivering benefits of greater capacity, production efficiencies and profitability at many of our operations. These investments also position us to support our new product launches and growth initiatives in the quarters ahead.
While economic conditions have become more uncertain and more challenging in the third quarter, we continue to have a positive outlook given the pipeline of new product launches, customer opportunities and the competitive positioning for each of our three foodservice businesses.