Church & Dwight (CHD) 2 Aug 242024 Q2 Earnings call transcript

Good morning, ladies and gentlemen, and welcome to Church & Dwight's Second Quarter 2024 Earnings Conference Call.

Before we begin, I have been asked to remind you that on this call, the company's management may make forward-looking statements regarding other things the company's financial objectives and forecasts. These statements are subject to risks and uncertainties and other factors that are described in detail in the company's SEC filings. I would now like to introduce your host for today's call, Mr. Matt Farrell, Chairman, President and Chief Executive Officer of Church & Dwight. sir. ahead, go Please

CFO Thanks the of us then the over done, who's the everyone. And Business with Rick for when I'll I'll questions. a call is our Dierker, Rick review QX open to Head for morning, of today. Operations. up joining we'll begin turn and call Good results. And

across of So the to X.X%, which was Reported sales QX was growth international thanks domestic another from was solid our board quarter X.X outlook and for strong that results Church & Dwight. Products. and beat Specialty

and which which outlook. Organic sales X.X% the in our grew was $X.XX gross points. increased $X.XX, with outlook our we volume of growth. majority our spending, same our for X.X%, margin Adjusted $X.XX healthy gained exceeded very market the EPS X% XXX than was basis we At QX share a expanded higher categories. Adjusted accounting time, of marketing

quality the a as margin quarter, expansion. you will driven take growth gross sales were Now higher-than-expected results that and Rick later, and through by

to a grow as of with class trade in reaching online the sales continue sales of online XX.X%. global percentage we now And

my I'm X Now each of turn to businesses. the going comments to

U.S. growth is growth the consumer X.X% up growth. U.S. with Volume the in the First consecutive quarter sales was organic this making volume X.X%, business fourth of

market power gained among consumption you XX read brands As few in in peers our the hitting Dwight with had our a top growth X highs. X release, highest dollar the & the all-time Church and quarter of share

the going detergent. start our as launches. U.S. contributor at our the categories the is Innovation a I categories, success to few I'm success highlight year. to product important of this look laundry let's I'll new And with a comment on Now big in

is scent and grew and ARM an their which laundry high share in HAMMER extra & quarter HAMMER brand, & quarter. all Dose, all-time share achieved and growth the than detergent category boosters grew of laundry the in XX.X%, also XX HAMMER outpaced Unit up bps. ARM faster the So record consumption X.X% ARM & liquid liquid categories

we products, Deep Clean HAMMER premium and into new is products first, & laundry HAMMER detergent our & new & ARM the of Regarding of X detergent Power most category, laundry have Clean Sheets, HAMMER HAMMER the Deep ARM ARM mid-tier entering the consumption Clean launched liquid the Deep quarter ARM franchise. laundry. ARM HAMMER for incremental ARM and & highly growth HAMMER's XX% is accounted in detergent liquid & & to the

interest a consumer detergent, product high product August. offer in The into we the unit the the laundry second & first the U.S. was ARM bricks-and-mortar launch seen of year, new expanding major Since HAMMER ARM in Power brand & is have dose year is which to this last form. Sheets HAMMER new the retailers form this this in

Power & proven total ARM the future seeing be We has and laundry feel repeat to detergent rates HAMMER are prospects sheets product Our highly about the and great increase. and to incremental category sheets both for we form. category, this the

X% consumption to talk ARM growth. was Litter. Now & grew QX, Litter double in category the I'm going about which HAMMER almost

Hardball QX. category, quarters. & ARM of coming QX is XX% expect the as and Litter for lightweight lightweight grown from so has the accounts Our new Litter in HAMMER lightweight grow continue the we X.X% to share X.X% our Hardball outperforming of our to to expectations category in Clumping because is level Clumping in important This

were past from decline total growth the is consumption even gummy which The greater. the the The down X% vitamins in Turning company a is continued X down business declined The on our We to an QX. was bad be vitamin category XX.X%. Personal category in QX, drag organic X.X% Care. quarters. gummy news to in improvement

to plan greater our talked our upgraded We stabilize investments with forms marketing continue chewables to new about business that the forward through in gummy like experience, formulas you and consumer packaging, new past. move we've improve with to the

However, much the than improvement longer we is anticipated. taking

continues XX.X% XX%. strong BATISTE BATISTE. in dry to consumption with to share is this be leader consumption of to shampoo innovation growing up is growth QX, up continues global success the BATISTE the very and important Next in to brand.

products Activated this. These shampoos. and users Sweat category. already, BATISTE a Activated to and we X the account new new dry to the launched in listen activated So share the year, category. X% of are product these dry bringing This Sweat products BATISTE new And shampoo is #X for Touch

the to perform THERABREATH entered mouthwash, in brand Deep of ] Rinse. THERABREATH share. is year, mouthwash the antiseptic with This total mouthwash Over and the of extremely THERABREATH XX% alcohol-free launch with the TheraBreath well. continues #X category segment in Oral Clean [ the #X a

point mouthwash. represents and It's category, launch for our basis mouthwash important that to of our note year-over-year XXX gain total share antiseptic of market antiseptics $X billion in XXX XX% the points basis into accounted

great example recently launch. growth Balm. So of combined the share. HERO and of adjacent brand Dissolve grown continues to and HERO become with Daily Cleansing the Away category drive to innovative majority #X the the to with XX% a would that's solutions in the launch a continues consumer needs. category be has antiseptic patches indicator launched the acne future An in acne

few comments a private Now about label.

relatively is news average label our stable. label, private good is exposure the private Regarding weighted

from last sequentially our and to in has category, In XX.X% few have points, in private gummy in has highs. that also the back historical in seen Litter private share, We the label is pre-COVID label XX.X% QX, QX. difficulties vitamins, share QX business. increased contributed which XX.X% quarters where achieving gained in XX.X% a share This to share notable label X in private gains

And first historical you and in the spite dollar X.X% continues read May story through to strength. the good highs. averaged strong June slowdown of close year, the as The I'll half is for by saying we on my that and context, a So been this Litter our current are experience label ARM different has share categories a the the levels of us through year. consumption it's & growth private in this of did although U.S. gain that July. comments HAMMER news consumption release, in for

But to closer has been X%. then, it since

Now pricing this a rolled surprise off. deceleration we entirely as as not expected a year-over-year is

also However, from a saw what X unit the first June consumption July. deceleration in and months saw to we

making appears getting it that So habits. the consumer extended is and maybe around choices spending

the the are couple pace we in only to seen than categories months, we that of first slower trend experienced this expect While for year. last at likely grow a half we have of the

say, suited to balanced patterns. and well changes value our know, of I consumer buying premium in you as And portfolio should offerings performs, is

Products. Turning Specialty now international and to

Markets and Our international growth We strong just outs. the QX. in few call by business as of a Group, growth delivered in well organic X.X% driven This as our Global subsidiaries was quarters had and strong sales X Mexico, Organic that's Products. growth business. increased and solid Canada, for growth our in Markets Germany X.X% this Specialty organic finally, Global And of Group.

job & the X% quarter Dwighters each that growth. color We're a well, to to confident to that year, performing over out outlook. you there full to our want such division hit give I Rick to Church for will growth the would and year turn delivering organic I a all going all comments want target. evergreen sales thank around great this company wrap I'm And strong and it now achieve some the growth every divisions which by day. reiterating is X my this up doing more

you, We'll morning, with good everybody. EPS. Thank Matt, and start

is high-quality the benefit. quarter details the than was Second of the the this gross excluding X.X% a X% a walk profit growth our the year, prior outlook margin growth tax expansion. $X.XX versus $X.XX, of up $X.XX beat, was adjusted P&L. quarter and through with strong from We'll But EPS sales driven before prior better tariff was from higher-than-expected year. The and primarily

consecutive Other organic revenue Organic important volume of highlight positive we of the primary quarter was Reported price/mix driven the X.X% quarters organic sales the X.X%. X.X%. by X and up to for of share. And this volume X.X% gained makes the volume was continue of mentioned sales brands the for as growth was of and of Matt rest was year. expect and earlier, up majority growth. Volume our growth, was driver

ago, increase related year historical benefit XX.X%, ruling rebate to quarter basis favorable Our second onetime and a on gross a XXX payments. point a margin tariff was a reflected from

adjusted impact of gross the XXX net basis manufacturing Excluding higher margin this increased due impact, points of mix, and to volume costs. productivity,

me QX walk through bridge. Let the you

Gross XX from basis margin inflation. offset volume/mix components point was are price from impact a a as XX currency points follows: partially a This from basis positive XX drag basis from basis points by point XXX drag positive and productivity. and

gains. than of Marketing a Moving net to up last to as year million higher QX expense marketing. XXX sales year-over-year. basis Marketing and led $XX.X share percent was XX.X% of or was points

the XX costs adjusted to expense to higher QX debt points R&D to lower international SG&A, interest due For and SG&A primarily primarily GRAPHICO acquisition. increased year-over-year, by income. decreased basis and outstanding Other due $X.X million, related

tax, a in to of of XXXX, income XX% high rate options for level higher ago XX.X% due is the effective QX For in compared which was to a quarter than our year stock exercised significantly 'XX.

to And year We the to full expect cash. XX%. to continue now rate approximately be

$XXX We million first $X expenditures million year X $X.XX the of from earnings $XX.X months cash prior months offset as higher be XXXX, now as expansion increase approximately activities a ] operating with higher full working from for flow was capacity For decrease [ first from expect million, projects $XXX the million, operations capital. $XX.X planned. to million, was proceeded cash by X of Capital a the year billion. cash almost

those were of CapEx initiated to approximately $XXX historical mentioned, of of and We the return in outlook, CapEx as the performance to strong share and half full the of expect of in continue strong year that categories And as Matt we levels in investments to XXXX for beyond. majority complete and XXXX XXXX, million and X% expect year financial now gains. the first we sales

under growth move we moderated categories in second consumer the has consumption half, remains as many pressure. the into As

be Consequently, low we end of divestitures. at our from our expected growth and the which expect now reflects X% currency X.X%, X%, sales X% impact growth Reported are is be also a approximately sales and tightening getting to approximately range. revenue outlook or from drag to to prior the organic

We growth, full now of at but of X% EPS in X% continue to low the range the range. to adjusted expect the end year

margin gross offset the call raise In be the at down normally round would line. sales EPS the by numbers,

spend X make number second categories as now half. the SG&A drag in other have result in we powder of expected higher is incremental we as get to one, full promotional event as release, And the then $X.XX went factors dry increase you investments. a the That to change. $X.XX the for saw However, in two GRAPHICO. year from for is Number more

XX of basis expect Turning basis of XXX to expansion We points, expansion. to margin. up points gross outlook XXX approximately our from now of previous

expect We an to and manufacturing to continue offset volume. more costs through productivity, mix than higher be increase in

We continue share sales a XX% to continue net be of our expect we of across many to grow percentage brands. marketing as as to approximately

that, with I be questions. to and Matt And take happy would any

Rupesh [Operator from Instructions] first Oppenheimer. We'll Parikh hear today at

promotional to, the back So Rick, to your guess, backdrop. want on I comments just go I

hear So I the seeing backdrop balance would and the what for are to on now right you expectations of promotional love guys about what your are then year? the

Yes.

a detergent be why from XXX down for and give liquid Deal promotionally, sold probably look Rupesh. your you care. Circana as this going about ] laundry scratch might But promotional was actually that than former sense year-over-year Let in points down is And XXX was everybody you [ ] you And head to the your basis be, on [ basis if knows, data what's as you QX. but personal on household well. guys QX have would points sequentially. me at It

brand basis large and premium XXX a down points XXX points actually But basis is year-over-year. sequentially

tracked. deal in on not XX.X% in would that's course, Of to in from not numbers. is story. It's But explain you Couponing XX.X% how QX the consumption QX. the went whole that not sold

So it by a driven largely large was brand.

QX, QX at different -- you Litter, was versus a about sold and QX XX% a little XX.X%. If over was story. QX XX.X% look that's like Deal on

almost sold on So it's driven it's They're in versus generally QX, one sequentially. doubled. other QX. that this QX brand But It's by XX% for was up -- competitor.

to to quarter So as as share said, I to is, Litter But to we the I numbers kind and far high liquid XX% QX, same would in QX. give an we've in say, promotions. it's on of our brands laundry QX had for also round on as color as little went an of story that's bit a Unit well, the very go, year-over-year, XX% all-time all-time -- dose you share in I'm high that's from sorry. just close

to XX% from was -- it sequentially, But XX%. went

there's laundry just But litter quarter, say, one more any an at categories. the a the in it's each you wouldn't liquid It's in brand promotional. of just one So lot big looking and changes you're would say second of happening with numbers. the if brand swinging anomaly in I

then And X follow-up question. Great. just Okay. maybe

Just categories, any there's but June it's categories. the discretionary some slowdown I and essential more color in going you July. maybe back . across of know between like to can provide sounds if and more It offerings your don't your

I a per of spending you look we our look and give Well, we can at some commentary trip. out see staples got companies. the that. And consumption lot seekers we've at we you Yes. in then We data, is at on there. you see And conscious, and less like, categories. consumers we food value color the callouts Then of being see look at fast price look hey, food chains, decelerating

at can see a unemployment the expected is to price result data, has I I I also And the little and -- It's today also you bit. thing But decelerating mean just volume. looking back if guess on here call, year-over-year, you a look of lapping. volume the we're we categories. Nielsen the ticked as it. as last in Circana the year-over-year peel is increases the expected up growth growth dollar at said a

the likely needs. success. than household balancing bit satisfy doing categories consumer our making by We're budget, brand the would better their say weary But evidenced to as the choices we a is

brand. is We have the the of for going us. One X strength things

X saw release X in out you the brands share. of grew So

XX QX If went share back XX our in our major of brands to QX. old of you out in grew standard, and

so the And to that's brands of #X. strength be

Two is the innovation.

in my the remarks. three, proof You premium we have XX-XX you opening know number heard points value. And the between split

probably category the we June round sensible I said, in outlook, numbers. and second a X% therefore, you organic given the It's July, hey, movement So we some can in give but just concluded half.

July detergent laundry you that's and in look first June if then the around at was close one So to down few X%, July, and just June weeks of the category, point, and May, dollars. May flat

categories if trending that's on like X% June, other and the seems industries, May and examples, X% XX%, based months. slightly. from May, July, again, Litter the was everything pretty we've June, kind obvious you mouthwash, other X what numbers, round category, we're who give And a but you for July, and out goes you in that hearing us how up where category we the seen And are at then XX%, unemployment, then I flat; come And lot of say, XX%, in makes sense it nonalcohol Circana Nielsen look of to down. up; another next the data, see can

what it's Yes. tack And category. Rupesh, Rick. this through. to would is that, one just, to kind on not That's of I is just going Matt

average weighted most. slight a take in and there you the you every at If is category deceleration individually, look

Chris from at comes Wells today question next Carey Our Fargo.

some factored powder for guarding the need Is promotional in take powder year? to now Or categories. in saying into Litter for then that step your additional potentially on, certain of should in specifically, the it I And have what you categories more spending. you're Rick, that dry keeping bit are well up are outlook think that now eye you category, additional you the spending. spending a the you deploy mentioned, the that dry

last dry for? night corroborate bit piece to expand preparing what just you I a kind think of we and enough heard you're can on But powder that. just the

to it's would household as by, that up promotional say, growth prepared it and -- if your we ready We're Yes. that will. course, we're that's be if heats our environment really further vitamins businesses of if for primarily deployed it's are if because happens, haven't like it. we're in is the the And but categories happens, we example, laundry saying volume come No And applicable worries. is, we then, litter. yet, category just for gets I decline, the really it as powder well. harder second would dry down around

the having other in the our And displays, with we've so us we're personal heard our cetera, half products second where behind it, is behind many thing and promotions, marketing in concentrated about Yes. too. new coming our also talk that's success you the categories in the got products. in a our got just the And household not care marketing but lot we those brands. We've more et

like So our we definitely categories. the of regardless slowing chances

that's bit a just of sense. follow-up the range quick you is kind sense. for thinking which it's correctly, X% right and next I makes about Makes months. one the X Did category, the hear on

the trend a Where maybe of regarding keeping your dry share. whether given that about differently you X% are on I But sort. -- talking your the powder gaining just that. you something really where you on relative to by would line, just have QX, bit things on eye counteract we're suppose any callouts eye You're help your categories particular expectations? a the are where developing or

that, I just And a of the can there's question, given got that that's business on It's just you're specific kind wanted stabilization just really connected worsening. predictable, BMS any feels I you just the just sequential sure to business make comment not whether a frame to that. to clear. But less be whether then BMS or seeing

in Yes. Well, categories. XX, we're XX

broad-based. you If or just, not much just see the think hey, board you We so just big categories. graft really and one those it's categories, two pretty softening, it's across it's

eye the on they're for the consequently, keep an all second So half table on for

in bottom business the Framing .

of lot Or Just Just where trying faster other had you relative momentum category. vitamin clearly is a else everything business, maybe to versus than you're vitamins ring-fence businesses? it are stable? for clearly you --

for dollars you July, about May, categories. of I category, numbers June, category some the down June, Vitamins, May, at X, down down different July. there do Well, a May, bunch Yes. July X, before gave X June, Yes. if

it's the So us more than category.

had And we our not as able hoped. renovate been portfolio as we have to fast

is of the change et cetera. additional And how they shelf-space much will retailers some shelf position, it your

And it which also speed some portfolio. can of is the we the renovate at

. we know say, good the could get would we us, than businesses if yes, more considering that how to on do how external Chris. We And turn think work frankly, what around well. other need I'd But we I environment. be, one it's about think all So more doing do. there, the are we it's to

Goldman next Our at Bonnie comes Herzog question from Sachs.

X I assumes further mentioned slowdown I from risk? category the remains guidance assume your here? Matt, volumes then growth on you in do your guidance see guidance. But Just playing your also out, price/mix the of underlying trying potential had growth believe organic that you category slowdown? a And question downside pressured. especially to context of the understand and the how does balance

Yes, categories the well, slowed has look, down.

them, Litter, you example, and July pretty to of flattish. for Some get Laundry much

have you Litter when So only products. grow our way far doing you're share. launch Hardball, And to especially -- categories, what new flat you is take lot like with by share A -- we to driven of our was growth because our our there. chances year in so have obviously, going we been that's new the this we've driven by

way going year. and down is than rest think to graph, We're it we're likely of saying to to this hey, if will like that So to looks first the it's stay you're this the the graph where we the going is it go now saying, months to a going now of from of year. are rest more not just not the -- I step year change to X continue this the it

to think to grow, categories share. Yes. and We going are we're take still going

it's then in we we And organic our think, volume grower and primarily how We're from that's quarters, the will last next kind before. terms X. what volume-driven growth in the said to of price for we've X of a the unchanged So X% back mix, for that half. get continue,

Yes.

So too. this might help you

may X%. you at at XX%. double June, months look look dry more If And if was shampoo, the was year X%, first July, you like X of it's digits; shampoo, dry

growing, still not fast. is category So as just growing

going innovation where So forward. And matter, kind looks just really this is notch it's a going down. is like to it I of think,

of is All just is guess in essentially we below called on I'm step-up we you a your what Is much I'm for a right. QX? how sustained question of where launches? new And then it then context your helpful. that That's had that you of my thinking levels shift spending that should anticipated. second incremental? understand bit about investment in And that levels some new expect QX it your coming really spend out And QX. I Or out expect the curious marketing to were into little of QX?

take that, Bonnie. I'll Yes,

right our So marketing expected it be. XX.X%. we where were QX spend We was to at

product a taking in ever par. quite big step take naturally out of that in years And QX we and marketing would points that you marketing bit a throughout you this be spent best of had it of we're back, basis putting of And we If one if hundreds the flat XXXX. our kept year on new spending the year. QX in

going to And was new XXX, QX be QX up will up we was so want to significantly to correct more like just QX support significantly then than that down products. is QX up phasing because get QX XXX, be and QX

Next Peter at up, we'll from UBS. Grom hear

well. quick, doing you're just quick X Hope Maybe housekeeping.

what due some specifically? maybe Can you you to the Where mentioned consumption reductions, inventory sales, that? primarily release did see outpacing just reductions. the the retail domestic think I about categories talk

Yes.

there we X%; X.X%. X domestic, So organic said reasons Circana would was say, and why were

which these days So then which had we the was adjustment more surprise from how inventory on for would in move ago. a HERO manage they you, the to categories had the XXX in quarter. retail was as before, basis more inventory. in start And retailers I was on a That points primarily the about there's one, around tell we laundry. noise system But of was one, actually us it pipe talked a of was, a disconnect, year second

chain, at and across the set are levels up We good we're for success.

just implied to Can going you're from international you seeing of category underlying expect half category X% kind about about business? an do back also but see maybe to of international an back to helpful, what a total then think perspective, company the standpoint. talk from shifting Rick. when you on But And growth gears kind basis, we the your what That's international. discussion both from

Yes.

know, first strong international very business half. our you had If a

So their weight still we year. to them expect for the above punch full

X% tracking and Our right an basis, above now. they're annual grow algorithm is that international on is going to

Before I an to remarks with still give as keeping you consumer on some U.S. the respect consumer, the international eye we're well.

in a far, right been pretty our international. in more things Peter. focused I it's But have So still markets at to least not U.S. resilient on up than been our it's holding more the eye They've is think commentary and had well. categories before But so far. But I now, worry. keep on, the . that an something

to for X%, around first call give a we year is more our you international for if the just bit little granularity, saw half. And full X%

that So it's in X% around we mean would think the back half.

Deutsche at Powers Bank. Steve

Okay. That was very enthusiastic.

or as guess guess So whether it, extend I any Peter go I'm differences XQ? just versus unfavorable visibility have I known the discussion curious consumption you we favorable started, shipments XQ, just that timing into

different or about Yes. of always this we are time, point classes don't there trade At any, mean, I talk have rightsizing. store in closures

I'd QX, is we the all so We've than on met into our beat outlook. little And by our but -- surprise of little one organic. thing a good the bit say. noisier in outlook still kind caught that, that's a despite we It's still baked got normal, on or

Yes.

we classes will what and but that bit a it, store how out there little ahead I got to X move closures. we that the have we pretty of say around way good are right dollar looking a a and handle guess, of as result think trade on drug So turbulent,

terms we've the been this this all moment. the more slowing on guess promotional I philosophical in is, a the of guess, it's about it's kind And in Great. But Okay. in I topic talking question environment. just of

seemingly many competition companies are more Does even risk quarter from alongside the than expected the margins of gone exiting through half raise your levels first included. that yourselves and slowing. with the season, evolved what second earnings that, have the higher gross as we've perspective, rational So you that

so It moment volume just many seems in where sustainability we're precarious for good. have things pretty improvement been have -- calling like volume a or where been companies

at the abruptly, the into questioning historically seen profit do just gross are that things versus I'm competitive And you risk moment. more time, slowing but that think more same things that Now quickly. carrying elevates whether they're get what you've more

look people you Yes. if do you're say through when categories. promoting? And start when back and have you Well, look, people history right, slowing I yes, think

So that's you to you Rick so that's categories have we that powder happen." dry an time spent to why line had if of and in, some said, we say, bottom prudent top it's about to have kind a a probably that and got call call line bakes that were But And why, described. we innovation the innovation. morning so talking much this beyond that "Hey,

XX months. growth and in the to think next I So important consumption share that's going to X to growth be really

thought In volume growth look growth negative. categories perspective. a really hyper dollar perspective at environments general, when Normally, if happen you and negative right? are of or still promotional happening, back to are from Neither it's those things positive are that. to add One positive history, still from a volumes

So there are are All just trying shares relatively that's stable. right? to give true. a still still is Private up heads those things on. label we're context, something to But going say

Yes.

Steve, So and palms our We were we're that's see what up, always MO. of sort seeing. we

what doing today. that's we're So

at Morgan Dara from Mohsenian we'll Stanley. Next, hear

I couple growth. to touch to your pieces post THERABREATH, portfolio. of of very strong just wanted So on obviously, continues a

call on is higher-priced But product. market or that data You could it share. your scanner in a see the commentary

give hoping you just brand could performance. on more a So the bit detail us

and as therapeutic there And the as we on impact move consumer through the quarter, in the performance terms growth of from points recently. on a your product of weaker benefit over is all really VMS out look -- trade marketing. your you down strong view packaging given momentum mitigating around the few understand And intervention just for the that any signs of next then quarters, the the forms, I potential side, any just the brand

that expected about pay those more some been the of as timing as how when think strong detail and any given things Just the far. of off guys so progress hasn't may on you

the Yes, story is THERABREATH we'll at big a company. here, success for look

As is been growth at you more at that #X is #X And launch long share, XX%. source trade of for going have of getting the be category. is and we're category. Listerine know, a we we've classes think XX% good something facings XX% of into when XX% and because retailers in different us different time and the for we Crest the a antiseptic from -- to

of the we go have nonalcohol, we've way share And to a now X% so there. long a got

feel more say, really would that's the highly don't something I priced, product. good it's and We new. about but yes, promote So we THERABREATH not

interesting proof an had Day, really the for unpromoted on actually, THERABREATH. good point happened was you if Prime a one think we look and TheraBreath, brand Prime is, Day at I what #X

So to a this this brand lots say of there's brand as even environment. of lot staying has power a indicators premium in

the time. working, the aren't. year. now. respect the that vitamins. no fire first when be we need year start I right with we business, don't loss half, We to different stable then just as thought would here got of we'd little some to share. see We in to things are planned of I X to midyear, around, to to able by be we some happening and think more We that's to and the a so then with Yes, then be we going down stabilize not that over we're started exiting a turn But lots irons that probably had next And months. the be expect going XX do in

Lieberman Barclays. Lauren at

else growth, have growth with isn't layering the the and aggregate this of anything they more And sticking those it's may, think for if that because but So frame of the spaces to what numbers, of decelerated. think continue could I it's both as law XX% to rates brands we is as of those curious, of than picture, rate large is how actually in it the were migrating on looking compete in comment law strong in changing? very, kind XX%, have the brands keep growth and terms they which But numbers. down like we lot. a at I big matters And was brands you're we we growth, outlook do if large of X HERO, I forward of move important company look like seeing kind you THERABREATH in forward, but [indiscernible] very in those category also terms

June, Well, some steady, I'll data, the category acne X% you Yes. category May, up give like look, May, June July. July and is

the no XX% also got only at in brand #X subcategory not share. So in there. the in the but And worries category patches, we've category,

that's of -- those worry not right it's one now, us either brands. So a for

have This we're rates. next to passage you're year. expecting Of course, ahead think really math just strong have XXXX. growth XX% we're as going But to is not with the going still you years of time, that to

double-digit we're XX% you're down, add that double really over we're growth. to just growth be to in And we strong. a think consumption would not that, in because I it's digit, future, comes the we right, lapping to just as but strong extremely growth to distribution out Yes. going say, or still but as to have point is horizon. And XX% And I look still general, extremely, rate the

a then ask Okay. question can if Great. on I trends. second market And share

So we on still are Nielsen.

coverage a that know Circana and there Nielsen pretty I between lately significant matters differences So lot. and are some

shares So in were and we take see But in preamble. that as Church for it, as market June softer aggregate July.

that take particularly bit, a some share with of here out you categories performance slowing the wobbled if So the Thera. on along

be comment seeing Just could if you that, data. again, what in completely on than different you're might that your

case? that's not, fact in is? why know if to that sluggish shares it if more think like would that do been I you what So if why have And the -- is

Yes. think were of XX. out that's I In what we QX, Thanks, just not XX say I seeing. Lauren. we're would

little back to go of all our to XX. brands vernacular our power [indiscernible] of XX more you of old so XX, was XX bit I think QX If detail, out

I think was of July or July July -- XX. X -- June,

no real So change.

the just less? pace up, that And what of is though, growth, but is not it about it like up

said We think organic the our reflected X% right? the first half in call, grew second we X% in half. half, I it's Well, in second

but like So mid-quarter. we the wouldn't baked in that's I think numbers all give

more a of category. that's the good We more a -- still about It's really of share. feel

to half, We we're that. in second and gains share do the expect positioned

Gajrawala at from Jefferies. Our next question comes Kaumil

need product I'm view not long space. little on there's which could that But for generally curious more about up I innovations were VMS, the ask make that anything to increasing on. your you you capacity changes has some need If is ago, or a if to changed? changed, you has catch maybe segment

Well, make look, aren't to entry product. your category. you because [indiscernible] a barriers very competitive to find it's lot simply a They're XX well over could There competitors. of

brand can catchy get you name, you much idea and pretty enter. an if So

bright here struggled bricks what we've do experiencing. course, definitely really been And that's the mortar. online class trade. and We some have lights the So on we've of of in

smaller the got the the on So of launching have that And taste consumer formulas got we're year, experience, extremely the of mentioned chewables, all a than a different help we there, a lot category, before but Amazon, those slower bite, then we're we're we've to improve been renovating that's well retailers. pie. meaning expected. this But growth and -- meaning the piece that haven't of doing lot forms. gone We've into changing from we've then

right, Yes. on years. X ship pace, X for grew through context, a And category COVID or over XX% grew probably remember rocket over this it

forms. the category and That's is negative just pill And accommodate there's of why gummy. now. the There's hard put that as liquid. forms not to we There's itself seeing feet those off so comes finding rush in powder. It's highs. to its capacity keep everyone's still other in And There's other then it growth. and

to important. possible. the being there by move to And get as so as well. that light Matt we story, and think We're as is trying impacted right innovation category the speed of that's a fast said, innovation super out as we're But

for has there . because out it been call We a Yes. struggle us.

different when own? -- you're it about category, sort but recognize to VMS. divested still or it you just quite does it's different, it like sounds Does first started of we from Yes, their essentially, a talking like positioned. be still the Clorox -- you positioned I how category make saw be how do to to you make sense

categories that's Well, our of all of our Yes. we all annually. -- businesses, evaluate

investment a So obviously, go I we but than that. of put into this further any can't lot

Andrea Teixeira at JPMorgan.

you you year And I know Day, a into last those was to mean, your around or had shift call conversation been M&A. you acquisitions. had can profile the hoping you've back enough little I looked potential bit Analyst of X None at said if to be see future looking I just of at attractive. kind of

hoping not willing targets equity that or So up we some the for to with Is has of? anything changed see I the ones thinking funds are should was more interesting coming not private that be what you.

What have WATERPIK. to preventing you is also done? then And that is organically, which something growing historically housekeeping you a on just

in only didn't the that that's mean, quoted thinking I in of WATERPIK talk like and gummies think you really a and headwind first X% was each. quarter, there shampoo I we dry just how, about brand from the WATERPIK

to hoping what the quarter, headwinds second see was is the it's the there? And So in second still in what any, assuming if there's embedded headwind half?

Yes.

as on our what the last M&A, of we we there, stick we different or made realize, any correct right XX ever pull is since brands, and X and an we're kind year, didn't that But of months acquisition. you X been criteria. at out looking at trigger As you're opportunities, far I busy tell them. now. they we can But looked in we it's as that and to always as just do We're are

busy we the But as on We file yes, Q. sheet active. have balance you'll see the market is when cash building up . we're and the very

is And consumption on low then high on single, is WATERPIK double good news digits. WATERPIK, up the

really in sales work quarter. what I on down issue QX WATERPIK we think say full inventory the we that talked through largely quarter. happened that it's would perspective. slightly retail about this a We for flattish for So last year, based from

WATERPIK. I'd you looks WATERPIK, consumption for that not ignoring but good So tell

Next, from Falorni we'll Citi. at Filippo hear

to ask margin is you a for some outlook activities? that commodity inflation? standpoint for embedded from promotional half? have about the modest of then are wanted outlook dry gross the you're And second standpoint, comment What a kind commodity pricing half. on second the the I on you seeing What powder from

to than are new little from HDPE behind Again, a up better up is and productivity sure. months no spend as back would about and ago. inflation say, do terms and assumed that some our have and support bit a bit. Yes, a we is maybe talked X bit, as we higher powder, net a dry half. And whatnot. when little Pulp little we ethylene's and up. well. we come it's bit couponing it. displays trade out to do are I paper little want a it products in perspective has promotional the of change going spending necessarily Yes, not in also But

kind that's So of our assumption.

Kevin Grundy BNP Paribas. at

comment an area the to it executive lot and of we've interface kind of with Obviously, portfolio. take of one Barry's points CMO investment different and most I handful is your Domestic lot a of from with a community. key at because departure of the covered all direction, on We you And a guess. maybe questions it's ground wanted I probably if Business recently. got a of of the President could company

you external candidates. include a to know [indiscernible] going skill whether on be to the internal for? company maybe high I is with both set and October So refill just maybe role, how priority it that search and might comment is the early Matt, looking to

All right, our to. X-year and I Kevin, of many can part respond can't had go XX international, through to a X see business I say here that's U.S., question, here. as a which stint usual the of multipart that in big years, is Barry early sad a October. What him here been It's success has

a like out But have we position. to fill that's going as this. the as into think detailed I So on we're to how call some time go we figure

James. comes Tong from question Our next at Raymond Olivia

was question are XXX dry the other sounds are basis that upside there expectation but half. primarily a around primarily second if And deceleration that the QX. driving understand around for see so to half, it the and My factors trying like then gross is to in terms or the in second margin in deceleration points powder that in of wanted

deceleration Yes, margin? for gross

Yes, exactly.

Yes.

personal lower-margin much. the the product Okay. we expected we as higher-margin we mix. products favorability, because our than care had of and Well, some in Within care really, of sell not more portfolio, even sell had quarter, personal

So the from That's tailwind kind for in price the a was quarter. what mix of volume that -- line. happened

the personal year-over-year dry things. as a the terms we're mix coupons But couple of a in categories it's of powder well. care as bit. trading little in talking bit more those the inflation. year, a For back as half in the favorable half about of It's not . There's little come back

half. So the things X those to back the in or I'd X are probably point

Bank America. of at Lizzul Anna

a price glad in This risk the Powers categories kind see idea line I there to I in opened is. negative kind the also the such Keeper back have, that environment and market, any route and this to given becomes say where is a for half. that at market and question the And to then gets 'XX the that, issue the of time of here the like are on a this I'm is that follow-up innovation is guess, for place lower of maybe we promo to the I terms stabilizing John want he pipeline which growth as well. to rate Steve on pricing, way just Anna. because

new to year low or in that pipeline by year? have pipeline next have I expected in consumer next guess, for in the end or what to innovation last had market able cater guys pipeline pivot more mid than you products you the your potentially year towards, more Are the and

we're One of or innovation. Yes. innovation need a Well, for pain point a the consumer. types is identifying X there's where

to pack Another you're is which it comes size at. when what is think I getting

like pretty pivoting order a satisfy points in we're to the categories price this. in good at environment to yes, create quickly So consumer changing different in various

look And we price half the first as have negative your expect price we then in year. back forward, and do of volume to the about mix not on question

Javier from at come Escalante will question next Our Evercore.

you think you detergent -- down. enough ]? Do up or and activity is users Persil was know data have other on mean whether The to promotional prices side. is Deep the share have couple you ARM that [indiscernible] clarifications a that, that gaining -- that & you're HAMMER I you Or this gaining that Do have of is is people price brands? enough, it whether One I a [ XX% correction? Clean you're incremental. other trading mentioned from

Yes.

Deep we & that some On you launched the consumers trade we question, have when the fully first anticipated would up. HAMMER Clean ARM

Clean better, our strategy. is good, Deep best part of So

So Deep OXICLEAN be basic the the detergent is & the good HAMMER with and ARM Clean would best. and better & HAMMER is ARM

other to So have Deep Deep migrating we be people that that the yes, And over term, are data going leaving some Clean source and we as we do trading for to long brands consumers why And we up. have have think, company. of also Clean. is that's growth a

about we probably looking or is We Henkel We to comment say better the just Circana data share slowing continue and do much share at continue on things. And or in bit, wouldn't category any as gain the Yes. Persil in gain would laundry. of those market. to a we

Fair. Understood.

is powder deployed continue this what one competitors the your also to extent about with curious issues chain to strength of retailers? supply of supply how dry vis-a-vis contingent chain, so-called having it. is other be And this because the fast The can

done easier is Typically, if lead you It's volume relatively message. after Javier. putting a key question. as promotion, is well a it's that and incremental to can way that that want be But But time. promotions, up couponing. heat the again, in fair longer go Yes, a incremental you're you dry powder as maybe Or

come next Cowen. question Our will from at Robert TD Moskow

analysts lot a stock. have of You covering your

alphabetical an doing order not Yes. We're either.

different you This products new of Like at participate. year, -- pipeline extraordinarily once. categories, like in lot of it newcomer, product a just it like all But a looked good. have a your lot glad was to really as resonant

mix for about think terms some products. slowing category of value-oriented And is as of expect you it you in year? this next more strong need be more and growth is do as to tweak it versus of year, you it a in maybe to value-seeking, anything there As the light premium

we're out these mind ideas X to have going about these great came with. Yes. one having of want in But year all year. product new thing remember, next products Well, I new is, keep we with a we're Year to

the in cases, awareness. drivers be will year. have building the only of partial So and products new some talked year, coming product top we building ideas have ones next big that, on only a others as you think distribution of about We this that many year, And well. I

XX-XX So XX-XX your one, this the I the now XX value. the split, like been to a environment, I particularly been but over between decades. any And then tweaking of sustained going the products portfolio difference. think for was that and question with make it's are couple value has said, other years, premium in and I've new do company premium

we going you habits. always change to that's change in with near periods in why the unlikely chances consumer-buying term. have And our So like when that's

Astrachan audience the from And today comes question our line final Stifel. of Mark at

and just I asset just you M&A, versus you a on And was come there's One, again, don't market? the of of if potentially whatnot brands about ones. you more pivot other some form down more the when about can press it similarly have? to the out of agree you quick go potential general? you the Is bought gummies some Is then seeing business, forms. gummies that make it vitamins, there saying that in is the consumer? partly talked are back there opportunity educate to an factor that efficacy agree what's adoption Two stuff the or effective? there tech on not prices the with of Or gummy to within of partly you how terms not, opportunity other to in impacting powders product to consumer the and in If the business quickly and in your chewables

Yes.

As yes, quite change there's over time. far goes, as been a vitamins

of and we the business, X% gummies bought market, the in the the now think XXs. represented I it's

bit. I to But moving that would So a from as efficacy, more are COVID. back has The it's and other quite say and vitamin falling larger category comment pulled people powders it's chewables forms. your changed it's I remember, as back. about far think

You of had couple in growth years years. several of a just

our with back. to in-house. as there's more -- around fact of of kind and issues no, COVID is think to household the It's I related efficacy. own So plateaued a penetration our pull result that But that's say issues that I are greater and started an issue the wouldn't

Yes.

area from go a from are to free. gummies perspective. want that folks They times sugar moving other The away towards are at sugar

So we're of after going improving after rapidly sugar-free taste the our profile. We're portfolio. part the rapidly going

competition. widens gap So that versus again

Yes.

So again, that's of as areas our when one don't of what competitors. focused one disadvantages one talk portfolio the sugar-free about areas renovating have the some is as of our we're a of portfolio. That's the of on. we And I brought

operator, the at that right, end we the of are All line.

Correct. No today. audience from further questions our

end us. kind everybody, for a of you to had We a the we'll to half, a joining we're of Thanks, at Okay. all second forward great the first third strong half, quarter. talk looking and

Ladies and for all does conference conclude you call. your participation. We this thank our gentlemen,

now may You your disconnect lines.