Edgewell Personal Care (EPC) 8 May 242024 Q2 Earnings call transcript

Good morning and welcome to Edgewell's Second Quarter Fiscal Year 2024 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Chris Gough, Vice President of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us this morning for Edgewell's second quarter fiscal year 2024 earnings call. are Dan our Officer. Sullivan, morning Executive and this and Officer, our me Rod President Little, Chief With Chief Financial will results call, Dan the transition to XXXX kick it we Rod to over outlook then before to full and hand our Q&A. year fiscal discuss off for call This available being website, our and recorded via is www.edgewell.com. be will replay

savings future During risk and cause industry under spending, and earlier performance. our to of our Reform measures provisions are plans statements. expectations for various our the any implied future today, not to the our promotional circumstances, assumptions restructuring to views call, prepared we assume related as relations which measures. Securities uncertainties, to certain except non-GAAP the and with subject might website. will on statements costs may GAAP sales, or not include described or section We These events, and make current our product accounting advertising statements launches, SEC. about issued our earnings, accordance on results is these risks this A on This of file refer including be available actual annual repositioning as commodity press safe financial XX-Q, measures This not working supplement forward-looking Form or XX, actions, to XXXX, may are category materially or shown reflect those measures risks the acquisitions the to respect as do is which is and return reports and changes plans and shareholders, of events statements on are such non-GAAP statements future in integrations, for capital more. statements forward-looking the our in call, obligation Act XX-K metrics, capital revise Any law.During in our to to prepared to update the of currency the those a fluctuations, amended different with future to, new we most September purposes non-GAAP with financial year for, as and factors may prospects.These measures plans, report value, forward-looking of reconciliation XXXX, any ended required in for be quarterly our harbor Litigation or Private based Form for caption of non-GAAP by generally which by information a expressed under comparable are performance of from with These GAAP. to, at substitute the release financial to principles. accordance provided in the as costs, superior accepted is directly reflect

business.With the However, trends the our turn management believes over non-GAAP provide on of information I'd investors to to underlying Rod. call like valuable these with measures that,

year-over-year per adjusted Thank Good fiscal gains expectations. accelerated on earnings us for in quarter adjusted the our and results which EBITDA Slight and you, Chris. morning, basis call. above both share of our joining points gross drove were delivered XXX 'XX everyone, financial We thanks of XX% growth over growth, margin XX% quarter. strong sales and earnings over growth second

reflective stack have and seeing the our importantly, I'm commercial In almost of across accelerated stronger Shave. largest pre-COVID in and the by growth X% quarter as outlook drove a quarter, Japan, of of Care margin softened, category gains.I Feminine in updated consumption Wet strong efforts. North the results X.X% international the Combined, market-leading while double-digit Shave benefit balance volumes about continued in Wet our a market driven of and strategic execution, over level continues of gaining profit a to delivered net the quarter. results both improved continue a meaningful of to expansion organic two execute businesses points these in by results to to Wilkinson our execution sales for X% in full the basis in sales the leadership. productivity are while these increase we and custom commitment Organic And we of across with in our Sword catalyst initiatives return margins over second standalone particularly capabilities, and serve a our group XXX and the Right-to-Play with growth brand of management markets. Wet gross initiatives underpinned the is and Europe, international quarter margin be Sun strong embedded relaunch in declined. have After disciplined increase branded Latin have revenue both start Shave and for as driven year gross driven posting reinforcing full our higher In Right-to-Win Grooming realization Sun growth in to as market. reflective price better time. of businesses this Our rate America, growth brands X-year growth season.In America, our year, businesses market, execution volume Care the we markets of was and share by teams by as growth Care pleased momentum our of healthy our our our our our in excited outlook both over pricing our begun in portfolio included

in factors below the and year's of Costco of for NPD While the skin our efforts stock fill pipeline these reduce levels cycling certain including expectations. were to play, categories at America transitory and last retailer further safety Shave, care, there results North were across

total, price. our very gains over with portfolio results we grew the North in and Right-to-Win quarter were across XX% strong, America both our and in volume Importantly, in in

we execution summary, operate results grooming.In XX% that our over working. An Solid and Billie incremental into a product planogram further launch Cremo are outcomes our first in broad Sun and portfolio and brands, half XX% rollouts proof is Care. good global growth and body early season growth and distribution diverse drove sales strategy new in the organic fueled in of

accretion, half half and X, XXX support by For over delivered gross cash XX% over per increased million the year, realized sales million operating clear. of of brands, adjusted turn invested margin we $XXX the to points priorities share organic our second in we $XX earnings flow X.X% growth, of growth.As and basis our are

our I'd you continue body excellence productivity in quarter to support through and Sun, markets. Dan will ask We execute fiscal as behind ability will brand Carefree we Dan? 'XX. discuss results to our take our across deliver invest organization's bottom growth confident to outlook this, well We'll international continue master with our of to meaningful to and and in top launch. With second Grooming program. And I'm and NPD across line innovation finally, successful.And care, as our now be for like our

robust strong you, macro execution to expectations. Rod. morning, Despite international continues categories our EPS and below expansion challenging has partially the gross Right-to-Play of Thank organic offset led Good Strong and slight everyone. led America in our performance which was by environment, results, operational sales a growth, quarter. in EBITDA be commercial margin, what challenging adjusted to to the North

margin and management accretion, strategies, adjusted EBITDA realization Continued revenue outlook of gross again, and which price notable EPS year unlocked once discuss excellent full raise our shortly. ranges, and our I'll enabling productivity us to performance

was while largely revenue growth For under management by higher sales pricing underpinned were and driven volumes was strategic the quarter, actions, and International price organic both net X%, organic just volume lower. growth gains. by

and declines growth lower declined in and U.S. the net challenges, in market Wet strong productivity than met return and across declining in channel, and sequential eased in slowed.Aggregate declined mentioned, adjusted Wet for dollar trend be solid across organic declined performance across with in and double-digits provide foot consumption of basis environment importantly, we negatively as in highly the our XX-week a was and dampened chain X% of execute volumes mid-single-digits double-digit and and were from high continued Skin.North which management have reflecting ago Shave, The environment margin more club U.S. The total, and unfavorable improvements previously by across execution expectations. consumption per pronounced price pricing organization previous across In product and weaker year NPD global under last disposables. quarter. year detailed pricing as of Wet with the would the price XXX the in over was declined women category performance, all slight In of mix. shelves.Operationally, sales declines the were The at the adjusted both in activation. Organic to last than compared growth most incremental commercial by America in by quarter, the Sun increased net basis teams and impacted better of international categories. international Wet systems grew and savings, while mostly we're were the the the gains has in to of impact trailing Shave X.X%, as marked turn pipe heightened pressures launch results the down North than traffic, cycling, offset channel.Excluding America, and consumption $X.XX Europe were strong core management. retailer Notably, revenue Organic in down a retailer and execution As by delivered gains offset quarter, the Wet strong while cycling total offset double-digit men driven X.X%, challenging. step price growth organic rates where level. volumes categories high-single-digit gross resulting declines under external and meaningful our Grooming is let quarter's consumption our continue organic and over X.X% the nearly FemCare, to performance segments Performance our net tailwinds FemCare. in our XX-week and over a were Grooming LatAm were X.X%, Strong and growth. competitive by growth points above in drug to a and Shave all points me price from interest sales were efforts expectations.Now to as Shave teams razors distribution combined sales Mid-single-digit and from strong expected both year's down accretion, Care with realized category, stubbornly improved in by X% was X% traffic, drug Wet with remains supply and share North in most just of gains remain X brand and the delivered was on sales and of just and well. growth North points quarter, margin gains, these to In in was and quarter, drove trend in $XX.X levels X% X% brand EBITDA offset down XXX was sales from elevated, blades gross America of which promotional and reflective gains International EPS healthy outcomes, line change in growth revenue down U.S. markets, channel, noteworthy growth. highlight, inflationary seeing America sale adjusted million, Shave driven which X%, as volume preps X.X%, supported Sun conditions, a in-market Japan volume investment. a by X% Shave results. of

$X.XX with aforementioned only of it and and gain XX at continues this share, points the marginally In brand as total drug retail. drug. was share intensity, at deploy of and and realized last impact Our organic gains. basis currency the XX% partially increased Billie brand to other share, delivering decreased the transactional about retail. we higher a of points Care Skin and by unfavorable expenses earnings another of dividend driven fiscal points $XX we efficiency entirely declined planogram to second of dividend in internationally, last returned our offset of in debt XX the sales had changeover basis sale net XX%.Wet of market including the brand. approximately operating promotional the other increase of $X.X channel, excluding programs. XXX led ongoing a increased an net Sport delivered sales were over care In the increased million, points for million category to growth was revenue continued our XX and evident Bulldog compared net our Skin. total, overall, gains our both hedge were to our a mass.The the the basis consumption was lower to per as higher were year. XX% sluggish organic for XX sales X%, net ratio executional repurchases profit market down share performance.Now continued where master XX%, each with was by catalyst slightly were net versus offset Outside XXX the million XX%, operating were savings to points challenging in quarter.Now and leverage and we the management flat of second in from $XX.X gained people-related mix net only Care XX provided $XX.X U.S., points EPS. margin and Ones' SG&A hand, and share as XXX FemCare in organic points, to quarter, by growth, XX% and savings robust an and to body share price our down of XX%. currency. was organic in price drug, XXX impact, North strong share inflationary ended share down, points the compared Sun reached basis launch sales drag and pressures to $X.XX $XX.X continued at $XX.X a with was compared of expansion This Adjusted which period.We rate within accelerated declined on in and rollout our A&P basis negative outlook approximately quarter launch, year.Adjusted was access of X.Xx. in year $X.X share strategic and million basis and payout Billie P&L. in in half destocking we million inclusive over in declared share movements of provides $X.XX reflecting moving growth credit over SG&A both year-over-year share income margin in A&P unfavorable million prior the per partially basis our Walmart year, translational we international Billie's last million Cremo the consumption share on at operating net Adjusted a offset quarterly saw than was quarter, to quarter. full-year adjusted cash to Grooming by approximately items. for organic Grooming performance, Playtex totaled higher up XX%, declines EBITDA operational million, core compared by productivity Grooming for approximately $X.XX the margin in the cash delivering and gross the by basis continues income growth in of the the gross year weather for over and more million accretion, rate U.S., was EBITDA raising driven XX% outlook by Currency category basis XX of was over-index. to the shareholders be Sun unfavorable and share margin scale growth $XXX XX was to points XX.X% costs in offset partly half, compared portion undrawn sets, and in a and $XXX volume expected. activities quarter was heightened to sales X the basis delays year, within declined turning over quarter, and realized the facility, increased earnings entirely basis share expenses.GAAP-diluted were X.X%, partially gains.In In million inclusive headwinds million in and Gross of and by $X.XX $X.XX more currency for prior highlighted approximately share cash growth approximately prior Adjusted profit during grew season points. declined. operating XX%. and some America offset in flat $XX.X in XX% points, nearly and basis $XX.X We early Consumption benefits financial tampon XX%, category though down increased and than operating adjusted quarter gross Sun Care XXX performance, The adjusted pads, XXXX, by impacted per XXX as decline first the which the 'XX, the Carefree fiscal was of per Net be we quarter as the by the period. were headwind category as to of by liners in new consumption expense. retailer new

range and a to previous QX expect provided mostly sales XX in as previous the in outlook. X% of growth XX basis our FX the results, points, now lower continue though anticipate gross margin inclusive expect over to XQ than is be outlook reflective now line of This previously half We basis point this with with adjusted growth end profile X%, QX.We the organic remains improvement and range. organic growth our accretion to represents be of to X our net growth our points a largely of of full-year expectations, XXX headwinds, in in full-year higher of basis at

lower year, consistent and $X.XX now impact the slightly previous increasing our utilization.As to Adjusted sales as adjusted expected XX% essentially of holding be headwinds. of or also from unchanged, in and the by through to FX of by EBITDA, half margin inflation FX XX% at in EBITDA Our midpoint X productivity as range is Adjusted and million now to now outlook, to expect of levels improved of approximately expansion $XXX the at to promotional our full we're per flowing in to outlook be with $X, we capacity increase of impact expected the the increased range range is and Adjusted of is generally for easing X the be inclusive gains currency outlook EPS is modestly and share of mentioned, lower earnings million. offset constant per approximately largely the is $X.XX negative sales. stronger half share for continued anticipated the on $XXX currency. to EPS offset XQ overperformance

more For that back to 'XX earlier operator we morning.And release call for to session. would outlook, the press turn our to I'd issued the information this Q&A related I you the refer fiscal now over like the to

[Operator Instructions] Capital The Nik Markets. first question Modi RBC comes from with

figure into this quarters, soon. a these to of next on lack year? I next I issues, I've the there's recover just several How hoping categories. I'm is missteps, that's being of anytime ] drag this focus to on business going delayed kind across a a pivot, companies specific we kind then think just of a that? curious executional pretty got doesn't across hearing like on just the seems was right? shelf kind lot the space. you the questions, going going of of It we're your can be had out of if [ about is mean, as look even like it's the maybe broadly seems even just Rod, drug few lot question other comment that's fiscal resets to do you place because the dynamic And I like, it continue channel change taking causing a

things been that on. Nik, have both focused are we

that's one lack come That's the being one I shelf the hear the at On are is where floor. we labor on things thing of delays resets the think happening of back first from teams. broader there delayed, the

the problems effectively more would liners. out look relaunch. are talked against timing only the the drug has in U.S. with and about. were share others we when that team's be reset, brand technology performance, with top excited we the the them the of May, that the about master it in doing expected Then May. was we're year at the e-comm, happen are around Carefree the specifically second that brand, reduction the with innovation market, impacted run as us sheet.So But half That that And launching coming planogram it though, you than be in master factor. that macro we any which we're our got incentive point to the because of inventory are things. our pads actually that change of We're the as really a a against now to And channel in about quarter It's overdeveloped of fact channel, impact May for on everything the expectation mass, growth to we quarter specifically impacted planogram meaningful we all right case, a the think interesting by could track it stock against became drug impact what's which have others reset with disproportionately that Carefree, with how converting because that shipping down reset, Stayfree the timing in the the in In reason planogram alone delay. April, food, stock I with us channel. the and with and across over or we comes sunsetting the March, you had thing the that to into that And our us biggest the was along at plans is cost board was Carefree across March-April. better with launches delayed brand super performed into had Shave.We excited stopped we FemCare. look

got the in addition declines in it other maybe quite issue as double-digit value in the foot as Within equation there the to drug, got issue, retailers. club, in impacting We labor you've is CVS, where traffic the that some things are sharp seeing every inflation is our are Walgreens you've day. not read-throughs

we will size those drug had in bankrupt. but But quarter. piece do something us. that shipping that that within to is as cycle issues other be customer the was the meaningful through that we that I no quarter themselves. face for that's to the yes, during So up we'll a that other think Rite drag resolve and We'll get longer in a fairly places, impact expect an went was picked I Aid We're us. also

with Bill comes question from next Securities. Our Truist Chappell

fairly early first start to indications on the guess But plan. really I until of, know for seems in internationally. good I we a the especially question, really, Sun, June. kind It maybe it's doesn't like earnest get start May, season

you maybe up, last fiscal So progressed as how we talk space about and versus into shelf can quarter the third moved it's set and how especially you're year.

dynamic. you The arrived at or done northern sun have what season, But in U.S. hemisphere, organic, XX% sun primarily different southern internationally, if up shipments season XX%, North season so grew in the North of quarter, was hemisphere, with a we've the slow XX% We a sit. equally look start. here our we the domestically start that's America we'd where the represented in in little ahead America that

the very patterns weather terms across the South, specifically at and started. East Coast want Florida, we if in last worse year season year of where in down you a start compare direct lower look early rainy the in you If than

seeing Now forecast and that at That Southeast. across the now and the you temperature South forecast said, the that it is looks good. change sun early. We're look if

That again the look you is be be travel to will at projection. up If good. patterns, expected going travel is

an teams at a or excellent getting the better distribution the board. year job field across Our did in ago than

is to different for talked sea on space.And category and exciting sprays got about in bottles, Boat Banana category format in shelf NPD we but been a It's encouraged get with the also revolutionize in the it's about That new Boat handle. we've sustainable, helps only incrementality delivery some we're Banana recyclable both in that very story. the new that some think Hawaiian things non-aerosol year. past, innovation the to Tropic not reusable distribution, the it's XXX I a years of that XX we've this the led personally in that's sprays for format. coolest One the

the of you sun will comp we're hit. I volume U.S. through and very us year all weekend the last to at front the look heat, and period of easy wait. So through fairly patterns with the We now fires, rainy Xth way we Northeast it in believe, XX% last excessive think a July then for year. a also to of the as hit weather the lapping,

Grooming, Back there the as other the sequentially? understand fully weakness you. You the would think I explain things why I'm I much it I much to category but the guess guess third bigger declined to in to What -- channels. are trying channel so channel, about is for in category, drug well, find the we've consumers seen weak, you've quarter as the for into the category as other that moved it than drug

just you confirm, to shave Bill, I grooming. Yes, want the question, was said

Yes, Wet sorry. sorry, shave, Shave.

Offsetting that, in e-commerce have Grooming others we impacts full drugs I at term you the category, Yes, for I the use fast It's similar rates I growing versus know the category. so impact happening growing, understand past. channel, that. think, Look, definitely right? that an the have

we slowing. seeing are sequential However,

X.X% growth. the said in That You aggregate, think the this I up in go X% basis, it about in prior quarter, to XX-week script X% we total quarter. flat, our was was was

Shave on. There's Billie us. out we same as We particularly a very that that as national. of promotional within women's. roll slowing couple effectively for follows like There's the in Shave sequential line is intensity category, competitive are It's well, in seeing an things trend going increased

is year the but historical got adjust to a around also launching on a You our bit, if category.There's equation the in that women's We'll of negative plans, brand a -- impact half have volume conditions spend and you've the the price price their value with elasticity like more and having hit. very the in and being I a return little match volume, competitor normal Athena think seeing we're promotional that's gets rates. back where leading Club off

trade out you're a adjusting indication a do a your reaction value. we're to using to X It's seen if down anything. that's of results, what in of in cash as the playing the don't your driver one more We're is early, little patterns. tight. or with if blade a consumer early an extra bit but house in of consumers. consumer you not Dan, of you'd value-oriented bit add intensity starts think that of flow, of seeing most logical is little a shave the using there's something cartridge are And Some a look how to razor traffic I that some manage the know We've but data, slowdown. of promotional that it into and points you price of to product longer.While little when that's it's drivers trying also seeing have consumers get you category our get some the I

No, the those points. maybe all I are would add X I right think thoughts.

in as the profile or Bill, last shave in weren't an so out, in so largely by in think quarter, NPD total in I as the by we entered one, We headwind quarter. the surprised be had we weren't which to we actually club, cycling the was the X, say, and surprised, it. minus X% We minus the were say, would a we year knew want quarter, to profiled I'd performance X.X%.

first a in the the it, we for - XX% as X% year, international now faced lot where, grown America the piece X, accelerating some that represents struggled we X% over would that talk equally articulated, about and in headwinds North in we've think, channels our the Again, quarter Rod double Shave we of there only portfolio, in were internationally. is XQ. up I digits and add Shave half but I don't the of

last that in in heightened I all we profiled an item yes, U.S. yes, it mentioned. as but putting it. as then, challenging for growth from expected cycling think environmental perspective, price-related and largely had the I some the quarter year internationally, And So items sure,

comes question Chris Securities. Carey with Fargo Wells next Our from

the happened sales expectation? can deliver half. on like if what's business So North comes your outlook your QX of little dynamic seem today, continue in current back that even bit outlook a profit into Does the higher visibility there's to if in then could the back that your the below relative international year? Shave about for America as in of ability And frame you could And your Wet talk you to well. half secondly,

I'm of to worse half indeed profit the understand out a So things you these to model that the of how year. if some into be than impact trying expected turn bit might the back

take them Yes, hey, Chris, Dan. reverse order. I'll in it's

profile outperformance So profit to on seen have and the that to we're margin strong of performance date. line we And significant driving productivity structural obviously revenue and management. sight the a we've price on very based here

about the hard through. that. to we And We're we flows as that. same QX certainly push good the in going overperformance continue on feel remarks, So or through to the said

in Fem we certainly I opportunities to see overdeliver factored the also think mentioned What Shave intensity. are bit year year. the of in back and from have we that due utilization and lower now in full we half back the some productivity headwinds on you've year And that the just a earlier promotional the the seen more Rod sales in line. that for the in anticipating capacity us we've is to of half seen.

takes. improved margin are important. think our I'll and me deliver now it in at lower captured start question level. end put the Because is company been, at of I in we of sort the the the performance.In the let ability we've do the terms perspective. back of total have confidence to your But range looking pointing We we of right we've cycling to to puts on what the half first very So think right be. place high is we think year,

ago. grew For the year first growth cycled X.X% X% half we the of about we and a at from year,

profile about while half year we're back a X.X% growth point a for over just Our ago. calls cycling

that that factoring things in markets.Specific back portfolio the a and our within category far. back now category declining We're launched flat when so for to seeing we're you've that to in what the years Shave, That's that we few start largely and levels we heard therefore strategy. a within all our about place thoughtful, place is to So the seen algorithm the us a largely organic. seeing we've from now slightly organics and constructive put broader talk think we we performance both a

were full we profiling and how X down us for point. up We're or thinking the year, the that kind about about about Like For of flat. half year minus that's a had the are of plus half first it. we be a put point

the a to North be at growth and than range in mid-single-digit lower will We We grow let's continue say international to will America international. see North America. outpace rate continue think

your answers that hopefully So question.

it Care quick and to levels perspective really and pick going inventory also consumption of helpful. be inventory strong the you're The you weather need in half Can Care much but into turning to year weather down Sun the unfavorable Sun the talk in follow-up. business start levels? does, It we the do would does. season here expect year working back be One started would to business talking about Any and of the about there you up the these ahead. what

U.S. domestic, Chris, domestic so primarily a Yes, is a this

is really question, domestic a This yes.

so retailers the quarter we for from lays largely seasonality perspective, timeline Yes, in way our category begin ship X. out a into the Yes, is the to

we around season the up put and way stocks Florida XX% ahead in then growth and distribution that its in So effectively that are up over of start The X reflects holding season. out. down year and will quarter here the largely retailers Feb work in growth prior Jan, that

there And February, and Coast so, is at about though, January, leading have period, the QX.So good, start, slow that good into into, what orders. will on that and the a despite at April, the the replenishment Southeast more inventory we and June, the May, here with see, orders throughout into a committed as XX% replenishment get through this effectively we March if out a was is What into we that's which get today we we we'll place inventory which product good sun that go, to season season now retailers than all feeling to see pull we'll the there the season move Memorial QX begin ago, really and point our West season, had gets QX out Day as sit and and start year in period. in drive

around different longer period. the the gotten overall more behavior past just season's seeing habits than that dynamic of is on of on total QX is because average we're average, other and that's being The becoming consumer during the outside a bigger proportion

dynamics. the are those So

not I set. tell on like ultimately sunshine but about the anything over-inventory, is feel I or good if feel we're and temperature where us we really that. think will we're don't right

from unrealistic, we would today outside. It's need we dark point Yes, cadence I rainy, replenishment which simply on. name don't We're for now because, in the here June not fires, was Chris, this consumption described, was but didn't are weather, at expecting, sitting case that forever and all Rod reason the We reasons where we the our only no think remember, believe that year boardroom, and year good barely There's season. get always XX%, May last the add, normalized that's thing was will season weather. and that what to changed X%, it. that good, point you down can down smoke, be a we're is the is and for see you you

of Our outlook of contemplates over season, the XX% that's now quarter simply we're normal in the replenishment and a season.

that remain understand really and your I to then the starts of some between here seek feel think press of and question, So opportunity to the sunshine, yes, good committed and inventory July. importantly, to They levels, now do extremely lot a category there's category. retailers the and now, we we want of Xth more about

Mohsenian question Stanley. Dara from Morgan next Our comes with

to to few couple a sales as percent years. last I of range spending on levels. touch It's quarters been just A&P XX% wanted XX% and in last the the

so, to out years the at understand more strategically over the If gross of ad the in so talked guys conceptually, of A, range. it's we are seeing previously but your you do XX% know are about just just I was down XX% few it a back more maybe of sales, We relative share support the think then, solid your why seeing as or Thanks. you why looking that's of you're in to going recovery, are are come we're the and right much B, it and pre-COVID, margin today? driving as looking you time, happening see level voice we've peers greater ramp recovery go efficiency industry volume spend, terms levels what's in to percent generally to productivity, growth C, there, term, a on reinvestment sales, on right end, really opportunities in percent comfortable as forward, recovery. to some and up you drive you longer don't the and peers, your despite where spend wanted focused you're with pretty of not the A&P then, a a volume

extremely to That's I'll I continue things about more a sun as going said, this X.X% quarter, soft, delayed, being in season about to in saw NPD starting percent revenue, it metrics that, disciplined about spend, ROI. and spend then caught talked We bit drive more focus. think year hand don't into the to bit I'll sales and a where isn't we're Rod and continue we're the too stay start, primary to going delayed, to saw the over as so did expect year, as Rod. we up Darrell. good here Yes, get Look, we look, to follow and of dollars we we out getting we saw that.

and comments, that in NPD third I it step hand of before execution, around, and level as in up talked balance sales year to things I seasonal the make would just to of last that try X% Rod, though, important think support quarter of to but will Rod the about than I We it just innovation you are X spend. understand more good

recognize now that we're we've so year, category doesn't dynamics. think back in we I did, promotional the will differently. to do got sort we think, expect that.We based to did quarter, out dollars. I do mean and move dollars We the we're shifting start spending half exited It means move on competitive as and execution, not to execution, the X, into are continue of shelf of of that we spending. It dollars A&P retail

you're would secondly, carries Rod, you of at relative to in what level mixed a dollar, just important a point. the rate to so America, lower that's sale rate add? an grows here we actually coming markets get an think, North spend America, accelerated where I and I with going purely it don't is it do A&P where international so as from we think at growth benefit North driven, the

to part that, analytics developed that in impressive encourages line can dollar. this creating value have we is data really way next over X, We're things a more That's part Point analytics. our potentially in market which mix of capability we growth internal what on we're Dan's on which our our after? with and time some me in-house spend margins to that's where gross of future, drive Dara. really, invest incremental some we we we with ROI category, add model. return do that plus that that effectively A&P. that we doing, It's time. on of around think support plan about which to and come go to through spend A&P pickup to range, that point spend you is very and Much, should delivering part for going which the how X confident dollar? modeling, X and will of we're much is, brand, Yes, to to you where XX% customer do. That's doing committed the margin better do do where data big on do Which top analytics as over our algorithm is is next

to X should we way to we have create we We'll expect the from better when more because do been We've I business And ago. us. journey know reinvest that, better in X there. you to willing drop lean could an said a you in years some to not that the see We'll have in bottom increase we'll more. that analytics point we'll to and That's get return. we're the the we branding, time. drive what now increase on us margin, line. the want where I Yes, to we a messaging, As rate in spend.With to spend or think over it

Genuity. Our next with Susan question comes from Anderson Canaccord

business, It we about going back just just FemCare the maybe I to like most on you're guess how curious teens half. I'm the we the Thanks. think getting for curious I to now too for you're new getting Then first guess year. that that? the any about should should gains. guess I low was how in-flat back or think about the shelf in looks sales now of year I thinking launch if down

of inventory You you A kind we Susan. think place. offtake laid minus. out year, for front if the depend did it's reduction initiative against from it piece plus half. land. new gain We I Dan, the on you the lot We've half, profile full second going here planogram the or and shelf we space as in a it. That's back with how definitely forward this Yes, effectively the the in in it. where about got flattish It's going month new half, don't rollout. we us different should Down We'll the are in up think retailers hitting see with. of exactly don't know well, the Carefree to of put -- what

well. No, it set think you I

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big fan the all points. no, of you're brand. Yes, Susan, the a right

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question next James. Olivia with from Raymond comes Our Tong

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are productivity reality, be job guarding about against we management. both utilization. unit which focus continued execution team's dynamics. in also capacity and couple done economics of I is and to What trying the is amazing revenue thoughtful One a an in is think of on and

the sell you what and as accounted utilization Then, more back that in your think have the half you you we've floor, mentioned, manufacturing less, a so environment. You year. will less, for be promotional less on produce of we

together, not is it of is we've promotional, and not outlook we anything. there's tailwinds will environment put from that the what that think around We the can our changed really we X, that means unchanged continue price, previous control for margin therefore, and But contemplated the outlook. has in half I productivity to be outlook.We outlook our changed. margin the of that have the think year for half if stuff all the back Now in our

to hand over So it Rod. I'll

group, Brands is it. on Edgewell vernacular And private call for the our we Custom Yes. it brands

that situation as on challenged, consumer get from women's, conditions are economic We also have custom a brands value benefit up well, to in the well at private more disposables typically now that. for the Not portfolio price tier, gets macro area our sets only branded a the label difficult but playing that value to in Billie point. leader with we and which is in more as example, work, basis,

portfolio. more outstanding but for definite part that our better is from think in become of a that trends particular of labels, in is the more there's but execution are we seeing that potentially business growing. shifts We're hurt are out, that private strength seeing business, the big seeing Europe in does overall, share that of does in We the if has Europe I to versus definitely not and branded, business, faster been benefit consumer our in maybe part business. part it the strength will of buffer categories put our in which it us part in we on challenged here, macro call

from comes with UBS. question Grom next Our Peter

just I margin the on wanted follow to up question.

in buckets expect to the You already, that You can you you change the in but maybe no what productivity just the half. just from how touched really promotion builds unpack back guide? point XX the mentioned and on different basis increase

the from the some perspective? to can on you that, XX just what higher in you're take building of see is think of Is a I Then on FX first sequentially. a just increase point really maybe costs function commodity basis the bit a little stronger comment half? productivity just seeing here remainder better. You start

to what seeing basket. on Just across some get cost would your love color core you're

productivity right and XX price forecast. to higher what initially we originally So management deliver think efforts will points year revenue for forecast. We basis yes, think what we XX the we be than around points upside will about basis had

core items will and that's We So ease where headwinds. think well. get mixing as we helping to then into inflation there's promotional capacity bit, and working a challenges, the your etc., other I anticipate utilization tailwinds. as And continue items, full-year

put commodity margin get we you had The overall, question basket on if would the thinking about choppy, nothing good it's point increase a together, full-year contemplated. in all XX I that say our quarter a right? basis would versus here to has a so, And one, what is of versus and changed look, our you ago.

be movements basket. always are there right, to going within You're the

end. see you is think the low oil lately I to moving

to see like the moving You paper things and higher pulp end.

an balancing for that, today with total in don't the profile to change think I baskets risk doing we but our sit team's excellent job commodity the here of any year.

turn question-and-answer closing our concludes remarks. session. back over to conference to any Rod would the This for I like Little

Thank you, your are We'll continued appreciate an you. update. summer, company. and interest an in if you with we'll the reconnect you investment over We Thank August the investor and for work everybody. in hard again

The now Thank conference today's is concluded. for presentation. you attending

disconnect. now may You