Earnings call transcript Q3 2023

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Operator

Good day and welcome to the Edgewell Personal Care Q3 2023 Earnings Conference Call. All participants will be in listen-only mode. [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. ahead. go Please

Chris Gough

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

Any value, advertising of call, and future our respect product are costs, launches, and Private events, reflect return to future for may we for of to category about Litigation statements savings forward-looking future and the under capital plans current costs views performance. our acquisitions to include and our prospects. plans might for which fluctuations, changes related and integrations, expectations currency to plans commodity purposes Act the earnings, promotional Reform During This provisions restructurings, safe working spending, such Securities or make statements sales, the harbor metrics, statements capital XXXX, the of with more. shareholders, future

the for on those with on XX-K under our quarterly caption Form Risk in the These which statements our Form SEC. as year are and report may based XX-Q, is on XX, assumptions XXXX, on and described amended risks uncertainties, Factors are subject ended reports to file including be various annual September in the

statements from statements. update law. to or not results any by circumstances We those forward-looking any expressed to forward-looking to by risks These implied reflect new cause or may actual required except revise these events obligation be as assume of do our or materially our different

directly Generally accordance not measures today, release in During press financial non-GAAP is Accepted measures reconciliation of Investor section our measures. this which comparable non-GAAP most in refer Relations will we The prepared These available Accounting the website. shown financial with GAAP earlier is call, are the at Principles. the of measures issued non-GAAP to certain our to

a a or non-GAAP to prepared not in information supplement of substitute with to, for, as financial as measures as provided is accordance superior GAAP. This performance

underlying However, non-GAAP management investors believes these our provide valuable trends business. the on with information of measures

I'd like that, over Rod. turn With to call the to

Rod Little

joining quarter Thank you, Chris. for Good call. third earnings everyone. morning, us our thanks And on

increased strategic and constant at line expectations of XX strong adjusted nine which and continued net XXX basis or Organic This margin sales largely we and currency. XX% quarter share the points priorities. against expand XX%, was respectively, in X.X%, with we in per Adjusted earnings our gross points consecutive another make basis increased our growth. by quarters to progress EBITDA making and

This headwind unfavorable line and despite XXX in was currency cost headwinds strong gross of bottom performance taxes, goods. from delivered of facing inflationary basis a over $X.XX points and

strong the Our broad brand commercial as the execution. of portfolio as a performance illustrates of global and quarter well both impact this strong advantages operating

markets, nearly by driven Organic segments the higher net growth net contributed by and X% both in led sales volumes growth across and broad was international was price. quarter based organic growth. This sales which

Care. increased most notably sales In North price Sun sequentially, America, as in by organic X%, category slowed net Skin growth just over driven and

the have strides across ago, strategy business top our we Since structural delivered initiation underpinned stronger building, execution. product by brands portfolio of consistent by growth fueled our two-and-a-half innovation new made of and years has the brand growth and line a retail

driven very grew of right-to-win consistent long as the long essentially by growth volumes. and include offset Grooming our higher brands, pricing sales Skin and were algorithm, was term both While brands our composition flat the volume this Sun, our which quarter double-digits, as term again right-to-play and once our quarter our growth with lower price, exceeded the organic view net

in the team's As in operational us previously, proud continues be I I've of share position, it's environment, stock stable control controllables. ecommerce we enabled discussed strong on-shelf to performance. am execution operating that what the performance, market deliver that and critical strong a better good challenging

again in We more inflationary margin price coupled and the productivity against served delivered quarter. gross which leading our efficiency to healthy expansion execution, headwinds, offset with to initiatives, than

realizing revised saw better our capabilities. And go-to-market international approach, as the benefits you improved in-market market are performance, our in execution we and from

good we brands, our pillars, quarter, our people the have three against and communities. our progress chain, all and our of across In released made also our supply sustainability operations the commitment we highlighting sustainability our report, XXXX fiscal and namely

up all underpins as with strategy recognized XXXX proud Care Sustainable progressively our we goods that aligns USA number company. accomplishments to do, consumer Leaders Climate responsible, of a United List I'm Annual in our of gain one Responsible meaningful sustainable and modern as Our a and Companies. as The today, overall being of Today's XX in including well the values States, Most ranking, Newsweek's in as

the despite broader to headwinds, the consumer macroeconomic our inflation this continue challenging largely remains persistent outlook for to environment and business, navigate With resilient. we respect well. And

by impacted United current the since the most have last Day, the in negatively early solid quarter. conditions This a season, has of which said, retailers been replenishment After changes we to beginning Memorial care start States, consumption sun unfavorable within across in category for flow order impactful earnings some has in subsequently America May. the our seen most weather around North call affected

now Dan projected to revised in the have trends will And year, be will care although we category the previously the sales, that improved, mid-single which grow while expected, season than through in still sales midst States lower of July our still take reflected are outlook sun in consumption United we shortly. that digits for is anticipate recent you and our

our previous the of year on deliver more confident X% outlook of third underlying midpoint and net sales range. business, us growth. slightly to expect our organic remain of This above deliver our or organic puts We in consecutive fundamentals the net we growth sales track to

We provided and ranges. previously at high be expect end adjusted share the per adjusted EBITDA or earnings the to above

to gross Importantly, margin moderation of the our we've some ongoing inflation. and a actions, execution seen through the of price realization in productivity accretion initiatives return

fundamentally challenges, margin by generation. as we as I'm growth, creation model, we move term. supply period this sustained significant in full over the expansion, chain realize cash taking to the inflation said confident will driven believe headwinds, exchange well our continued business flow of that beyond we top potential right as value gross quarter long actions other line as free the deliver I And and are a ago, of improved foreign I

ask to you our third Dan? take quarter on like Dan provide I'd for now, details to outlook through and results XXXX. And our fiscal also to additional

Daniel Sullivan

Thank you, Good Rod. morning, everyone.

quarter Care. mid-single performance by digit solid, strong gains and sales markets. and and Market our another internationally here delivered key was we heard, just Shave US notable organic from highlighted strong in gains performance share growth business Wet you Sun with net shave the women's in As international in both in

and bottom previously our above year double was margin the expansion digit line, growth high with underpinned in that a giving provided deliver delivered profitability cost increased to we On adjusted and confidence EPS at full EBITDA. by us control, ability or EPS for the both good end range meaningful gross

net ninth by shelf our strong markets, products was realization, North American was consecutive demand was reflecting led quarter further Growth growth. for organic in good improved product and quarter of and delivered the performance availability. continued and This price sales international both on

we the originally inflection have gross during have anticipated, forecasted. we significant expansion delivered As margin successfully as quarter the margin

environment the challenging. that operating mentioned remains Rod

and into turned our some fill the supply you So, let Inflation labor quarter. extremely in eased external insight further and levels give have service certain items remains me though and tight. the Overall, in to the basket deflationary, continues rates commodity stabilize strengthened. dynamics the has chain

in further inflation of points, headwinds still XXX though sequential continue this in flattening quarter. to fourth approximately and the represent Gross the basis presented expect meaningful easing, we did quarter

consumer While quarter ago, healthy X%, some the growth the just across degree, US. start Aggregate a remains of to we softening largely X fem category primarily category driven in in care saw about points was care. sun the certain quarter from down a summer, lesser the by consumption in over and, the

was excessive a in bit US extreme Memorial This essentially retailer by the sun since replenishment flat the shortly. about in influenced recent and across weeks, category orders across more weather impacted adverse negatively US. XX talk The Day the heat rain I'll care in detail most which July,

continued In to share a the drive retail shave reached we and shave portfolio US with of business. continue category, wet to very Billie's be overall has expansion. our brand category the share women's for gains nine pleased The about

driven weather favorable. activity the US In in our strong remained been weather as in challenges markets and very contrast international consumption category, sun has the travel leisure and was robust to

for sun saw we Mexico, over Across markets, growth, international key Australia to organic consumption and as growth helping business. XX% drive as well XX% European over care

results Now, let the to turn for me quarter. detailed the

increased international in quarter. X.X% X.X% increase just X% X.X%, an over in Price growth As drove America. increase mentioned, with organic net the in and sales North a

mid-single Shave net year declining ago flat, growth Wet cycling X%. with sales digit almost organic while international North were X%, a America and essentially increasing

for points men's women's offset US the in and market was flat razors in as consumption and share In quarter, blades gains were XX category, the by systems declined Billie, led our by basis portfolio, aggregate disposables. in systems while our declines

recent our gains competitive share environment. of basis the the share results in were heightened quarter above continue XXX be trend. shave value to points Women's positive importantly, despite And volume

Care Ones. strong grooming, Sun Wet and XX%, by full sales and organic net portfolio growth across Skin of driven increased sun, the

was and of North care American just growth sun price by volume both under gains. driven XX%

phasing discussed last of performance order strong in the sun of quarter's spite QX comes quarter. into negative This care impact

sales by XX%, driven volumes. As price mentioned, also care international and sun increased both over

was poor usage quarter US, was based the due category In down occasion to conditions. the the flat the and for care weather sun

products one last a XX year's however recalls, points improvement quarter, brands As the its approximately basis from market shelf share our Boat held in share sun during competitive care position lost trend. returned marked Banana quarter. number the to of following

increased Ones sales in almost organic America XX% Jack North organic Wet by internationally. our grew approached growth just XX%, under Bulldog net sales XX%. Grooming net Black and share and led growth

quarter quarter in in in and Fem third stacked similar the consumption nearly Care flat a the organic gains point, were As category declines. share the be flattened as sales XX our organic over a net Care continues X% Fem the last and was weeks volume our about to two-year essentially growth up healthy offset were stable. dollar US by price

increased basis the volume quarter. Importantly, our points in share XX

at P&L. moving or increased helped a the and pressure and XXX negative XX approximately gains basis basis savings price to XXX impact basis basis offset an points from category basis points and XXX persistent, adjusted inflationary easing, mix. inflation price the XXX basis points fully yet XX quarter, COGS Gross Now basis on down execution the constant from currency. In margin as gains of point headwind points from of offset productivity market point

was expense net A&P XX.X% of sales.

the the decreased impact about of A&P currency favorable compared $X Excluding million translation, quarter. to prior-year

of Adjusted programs last and XX benefits leverage efficiency basis offset as people costs impact versus points and than more year travel the SG&A higher expense. decreased the of operational

operating currency increase. increase constant was XX% Adjusted $XX.X $XX.X to compared income last million or of nearly year, XX% an a million

per diluted $X.XX prior-year fiscal period, quarter $X.XX from compared share favorable an including to $X.XX estimated GAAP impact and share in per And $X.XX earnings were net earnings were XXXX. unfavorable third taxes a negative the $X.XX compared currency of and to repurchases. adjusted share from impact the $X.X in

compared of $X.X impact year, to prior inclusive unfavorable million in $XX.X $XXX.X was EBITDA million the million currency. estimated from an Adjusted

XXth the nine the quarter last for was net million operating same than months in doubled $XX.X period more Cash and to million to the robust in generation cash flow June $XXX.X year. activities ended compared from

ended about debt of $XXX portion net undrawn leverage credit access million the facility, our a $XXX of in X.X on to hand, the with times. quarter million We ratio cash and

million. In totaled over the share quarter, repurchases $XX

In to of million addition, nearly and third payout year. we cash the shareholders over returned continued share our another and for quarter. nine of total, declared quarter In during months quarterly per $XX $X.XX million we dividend the the dividend first the $XX

Now turning our to outlook for XXXX. fiscal

line top As remains confident strengthen business on another of many year categories that The to mid-single largely strong, core and the our are we're to we're commercial track continue discussed, fundamentals and growth. of operational international consumer healthy markets. and across we've digit deliver

abated. However, challenges the fully not we're of that environment mindful external the operating we've that discussed have

a replenishment levels. and retailers quarter addition, weather-impacted robust US inventory has season in-store adjust current down impacted sun outlook growth the In the in for ordering as less manage our

delivering anticipate at or of results we and range. our end this, EPS high the Despite guidance above EBITDA

now range, quarter. above we the sales year, slightly fiscal the the for result a As sales of organic growth net anticipate midpoint reflecting projected X% the fourth sun to be lower care to in X%

QX, beginning related headwind to inclusive with initial in inventory structurally contemplated our was decrease revamp quarter, to an we but is the point promotional spoke year. at basis wholesalers this last the XX Japan reminder, of a levels As estimated of not intentional full-year in which our steps activity outlook and in to

gross material on change We year, price small of now be for expect is productivity no headwinds whereas full previously we flat margins anticipated level last There year with rate to year. inflationary a realization, to the our or view accretion. savings

unfavorable and quarter transactional mix FX impacted expectations. incremental unfavorable fourth more However, have

Importantly, the in quarter approximately expected inclusive XXX gross fourth accretion is be basis basis headwinds. to points about points, FX margin of of XXX

headwind million We continue prior a year profit our basis. is incremental of margin over on impact outlook. to $XX now operating full a to be currency profit anticipate accretion a adjusted The expected million operating on $X headwind,

remain We end the will high EBITDA range. $XXX is XX%. expected anticipate to $XXX of million the that Adjusted now to rate slightly million at tax above the be

expected to $X.XX for headwinds. the This reflective end inclusive is approximately our EPS QX. of be results outlook per the Adjusted at of our share $X.XX is better-than-expected of in upward largely range, $X.XX to high currency revision of

related our was that release issued XXXX outlook, earlier more the refer you to to morning. For I press fiscal would this information

operator to And return the session. Q&A call for I'd to the the now like

Operator

[Operator Instructions].

Modi comes with the first Our Nik question from of line RBC.

Nik Modi

Just two questions.

you On of process shelf, state of end given you'll in if on a you you kind how reset volatility we're the there's now lot up could fall and kind of through of on products shelf, product coming terms just year. maybe, been union come give business, going and the back sun close just recalls on care guys, of the as the net-net the think us see of we the the to what that

going if question and been your some operating update picture that there. as of see and were is, get an changes changes bigger Japan on we wanting market think I model lot – to just management can in in some and China, there's on business what's relates broader, a The and there in international Europe to

If could update as us you well. just give there an

Rod Little

We our to Sun well care, job. we in had innovation has been and by feel good union. a business let's year in And received when got can consumer. care, what start there, distribution we program the we the that the team that's done at the control a think expected think look care, get. we've how executed this we good fantastic state sun of in We sun I about I

unfortunately July the Day, particularly had holiday rain, the consumption. cooler of weather, is we And weather. Dan than we poor And control East lots starting northeast, that and referenced, West in What cannot X both as about all Memorial way normal. impacted Coast, the the the through had on

we good QX, a the If you here grew again. digits in recall, In double had QX, we US, shipment.

now that weather on with being seeing good, so, up a we're And consumption. not catch

positive So good news July. turned consumption second is of in week July,

for expect to talked our be down be of do last we what in out had phasing. script, were a good in but again, we internationally well. care about strength to sun we the saw quarter. Still different it's nicely organic a where versus a going So XX% bit little also US, result called you up year. But the internationally on over And as based a here business only we growing as not the

that's with going there's good And what cleanup what situation in our much there. we We'll feel here going too the careful get revised we ship QX. in guide. can to at into out we to again, where a So, contemplated messy a about. be We're in control, not inventory be with end

how taking terms Europe, And an on business international Japan, a on North course, Eric have Me we it direct change as of taking China Latin made direct him. run effectively, the reports to me. Dan then, running international, O'Toole of lot to relates layer, reports As America of as eliminating we America. in have we to

would built markets, out momentum And What with allowed we continue you of we new to in this quarter. that more to markets. some to in teams leadership look expect some in I increase have the talent. what is capable go for start done us international, towards organic XXXX. I X% this has got think us see nearly new we've as as the And recruit entirely are and

By bad season. to we with bode base sun the well typical a XXXX way, care this for if should weather more weather get

to us. in tailwinds I work will only for the the now, markets. some some be think need getting care base of just transform Not capability We're started international. both do sun with to the we at but our of

think I down new Japan the Europe approach. That pan-European fantastic, journey. taking Japan. in XX% got the for more bodes ahead leadership on in and been done point. China, at the of And our But there Latin work XXXX We've further a We're up in again, this They're America quarter. has beyond. then well in ahead team

those see beyond. look be and we accretive we'll as think I into XXXX

So we're excited about what's happening internationally.

was Two focus and done and structure competitive, Get capability the We've the team that. US. the the years ago, here. US build

international. now the focus so, has moved And

a better countries So posture. brand was not more past we versus only the geographically have have which portfolio, but just do we losing, winning

Operator

line The comes Bill with the question of next Chappell Truist from Securities.

William Chappell

last understand there. you know Difficulty]. the [Technical show shelf – And the of getting momentum slowdown. Difficulty] to quarter some volume some just you consumers didn't it [Technical didn't more up, in if just the up space trying kind and spring I'm good more and it's quarter, didn't we're got slight had the seemed shipments show

Rod Little

breaking the Bill, – you're basis up. to we're I've the struggling of question. I got But think

is you're what? category interested here the in Just

William Chappell

you Can hear me now?

Rod Little

Yes.

William Chappell

gains space versus being last performance something this going slowdown It to than just bit your if didn't Just pretty little big Fem quarter. if seemed there's lower consumer expected from a be else and on? or to shelf a on quarter to comment that's Care know takeaway

Rod Little

Dan little what where has pricing that a good, And you Fem all period base more we business been perspective of share let like performance, Yeah, a We're confident more I'll Bill. in our give we're seeing. issue, it's Care on volume, are, received.

pantry is coverage that year The shortage happening, with this was some of consumers, to was media increase biggest where happened tampon seeing was wouldn't that competitors. our issue what period in loading, only portrayal, be but quarter not drove big ago don't a I there tampons. accurate they get the what a actually you're us, effectively not about an believe, able worried consumption by base a It

the in that was that so, quarter that And is the just finished. we effectively bubble cycled is we bass –

Daniel Sullivan

right. remember, year, Care for growth. organics of so digits that We Bill, exact down hence that's QX, last Yeah, Rod were in QX last Fem highlighted. we reason double cycled the quarter the

you're the But category, much XX if quarter. of now in I you ladder value weeks share flat to terms sort performance. more and category growth in with the performance seeing think up a of expected We're

feel we've we of So certainly hit like point that stability.

slowed I even volume the we quarter, basis recent in versus about third think, in the points category fem trend, importantly, XX the quarter. care grew as share

that So in base. a the organics the given we the liked performance. what's bit We recognize are choppy,

William Chappell

housekeeping think we bottom currency I a if and Just play I'm stand a now line, said how of currency, moved as kind top on to giving in know terms of but for standpoint. sure kind things I would you're you of from move not tailwind quarter year. the that fourth a we've where not full out a tailwind guidance, would next and now into

Daniel Sullivan

two parts, Bill. take in it I'll

we've back year, half the the for think I tailwind. that seen of

balance we below a the operating we is Now, hedge in it's that's headwind. Transactional quarter, from effect line is still the expect also remeasurement. saw to the it's FX of headwind. margin, those the the And where in What from. sheet fourth a In see important yen. and gains came largely and quarter, to understand

that thought through. better we see Quite guide a uptick slightly candidly, environment quarter the net-net, So, That's than you why of in the terms in currency flowed ago. EPS.

But next year, is inflationary as As then relief need to have the we yet. though to pressures over understand next around would environment and only I to transactional not to we will the will out caution or not going right. but obviously, We're the far you're do come. the on comment again thing course inventory put that how see currency out, how we hesitate and year, of about play similar when think how impact shakes that

encouraged, day are for assume I So one wouldn't business. we a our that's certainly but tailwind

Operator

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

Christopher Carey

the coming I questions simply, a just have expectations? a couple margin of Maybe margin. the bit is driver why key versus gross margin, about gross gross down was prior what

Daniel Sullivan

about. international simply, Chris, category, the increased PBG That's from international it's within based. be and more Very largely reflection of a the And tend headwinds talked mix. to then markets Rod disposable growth shave

mix call. that on more we And then higher anticipated was the you previous bit I transactional a had than headwinds on the on a negative margin bit FX mentioned profile. So, FX have

But back literally year Nothing price I right? the margin, But these we think to a proven We really a of pin not predict, We're harder as elements year. easing has execution, inflation. exit be productivity, be moment. important are think to we have to those we other ago. structural call obviously, a are where unique the the out those and here structural. thought this are to on some a bit bit would those realization, of So headwind items, we there. to go of changed

Christopher Carey

a related question. second Just

top estimates gross I to I'm Would view struck for by term basically your significant on do. an points guess perhaps earnings seem mind. of Street margin Clearly, is about basis what gross Perhaps medium Just which you typically I you're next don't year. XXX invest, around growth do margins, of driving relative that thinking expansion would imagine number either. typically you to that's continuing

of see have know seem that not? reasonable in timeline – together? range perhaps estimates I all do And a relative on a you and medium margins if back think coming whether so, you could the just together of you comments kind to don't how about I how the balances kind gross to just that or near and just that any trajectory the that term gross and term medium pre-pandemic to guess to margin coming touch, get in I'm

Daniel Sullivan

we're believe to this we've getting profile. said to its fundamentally committed pre-COVID and that. committed said with, margin Right? one, we what to business think back and still is We've that absolutely we're I Look,

confident the certainly think not and you've And in second a to that, just do the ability pull we're piece, that our to proof I seen point, levers good necessary XXXX is right? the drive consistently, our the ability SR, done we've XXX savings points to points, the work in cost pricing basis XXX GM done, [ph] in but have work a year. teams basis

So.

So good we at feel our the really levers about. disposal,

But margin. there impact are we FX, pace inflationary at the factors, can certain the namely recover that which pressures, the

so, obviously we guide And give on full to not as ready we're yet that for next transparency November. year. in We'll do

We and like We certain inflation tent, fact though, commodity is easing. of is pole that still basket. do the still see the is challenging. deflation in elements the in the structural Labor long

puts here. are and reinvestment which cadence then hit is you a there And I right the point, think So there's takes.

the think that. would is is just available the us. what and I levers are to I there, So, say clear commitment We've demonstrated

we'll way we some I to it work the about in it think in that near have margin and, recover has certainly, our the the to which term pace at factors talk through plans we November.

Rod Little

this go of just There's about And you there. will Rod. thing defined here foreign the comprehensive XX, the right hopefully thinking when how And will at like in think would normal last said, ranges control, that's predict again, the XX that Chris, Dan won't as up don't But of and XX what pick feel the over I of we headwind is as exchange. underestimate – currencies, very beginning more Right? out – it here we a the negative as foreign pretty in by – to our it got but happens exchange. among of maximally fiscal and in get of impact year. years, $X.XX and We time GX I which talked about as We've forward recover. matrix year-over-year that add we we're one well. on gives it. I think, EPS north you to we well view XX% negative, FX is

management, and I the are time, we the driving better over do business think back beyond some get running as confident, So, FX revenue of in we'll that we'll well. work

Operator

of comes Anderson Genuity. Susan Canaccord question The next from line the with

Susan Anderson

in Billie? you did that gotten was much new in into? in add And said then customers growth quarter how how to if the I seeing wondering the also, the see you've new Billie and to you it's brand? in growth Are performing contributed or retailers bringing you

Daniel Sullivan

the think spot grow ins did Billie. I performance in and your But outs seeing Billie We I'll don't of on. second Dan. there, in really retail. excited question, we we're quarter. with the about Like, sort start It's the disclose are

winner the even results. You'd for gotten very XXXX out We're We're for pleased super the was And shelf brand super category. women's at amongst Retailers recall, there the a last the catalyst pleased with share a year in certainly retail about nine sticks category. that. results. up with the Target, clear important was the in year And at as as brand the seeing Walmart. the performance a are has more crowded expansion. brand that particularly The space, is to a

of year more a And year, that is adjacent proving the for move gets and catalyst right? important categories. makes be That its into outside way shave in meaningful category then XXXX next the very to much a is Billie

of exactly integration brands, as about on playbook really, far sort kind we're we and it playbook So, for executing growth performance excited the ago, the year-and-a-half, shelf. the of the and two wrote really years so

Operator

with Olivia comes the Tong James. line question next from of Raymond The

Olivia Tong

versus mix to I ask wanted spend advertising. you of promotional about the

advertising came think You're the we market as as obviously expectations, less a normalize. I And relative expected. bit than and spend perhaps gross up we wasn't the ours, expected. the inflecting, margin And conditions come industry substantial while in little to seeing promo as inflection, across margin

this levels commentary terms that promotional of So hear forward advertising. compare going in and expectations contrast would I love to your and quarter your with and

Daniel Sullivan

It's Dan.

XX% sale. take the spent think of Let rate first the A&P quarter because that's at We me over important. I question in

reasons quarter. it we So felt means anticipated that, for about we everyone last to was It ago. We what two I spoke a no think when a good of And quantity light spend. there about quarter care. had probably around sun the below by were million both was $X

growth, key you remarks, the tremendous sun. we with we talked international the saw XX% in markets, In play we which category our prepared in over in growth heard markets

was And on the product share drove Australia, Mexico. organic and we so, quarter floor, pretty simply a we gained and we had some the was terrific. XX% execution in in need There to important markets, growth like the the overspend. no And

all so us, to need the There And was for piece overspend. was no international efficiency. about

the stacked. May, in what weather was The we've talked was late the weighing Conversely, saturated. certainly unfavorable there Supply retailers seen and and category consumer US, by in on we in – had impacts, consumption. been shelves about the weather the

And didn't sense for any that consumer us to in so, space. spend more The there. wasn't make it

So about effectiveness it spend. US, in the of was

made so, we the And back. pull decision to

that for of in quarter executed But the rate quarter. again, we're the in, we're we spend X% ago. quarter quarter, right of fourth in on Some A&P. come we way. than meaningfully we're over the about spending in a good the focused right in the a back the which expecting that amounts how is And more In really felt year will

outlook. year. more the expected broader get half point, said that might That things back quarter contemplated we promotional of the in we already the a on our To was ago, a bit

think was on say, already We promotional A don't let's any that ago. a in We direct sort women's reflection sentiment. contemplated Billie's quarter of end haven't of of a activity our we think our we that's behavior. reflection said irrational or, shave. incremental in guide what seen from But But bit promotions a success. that's widespread increased consumer

there. So, new news

Olivia Tong

read can both group sentiment, shaving? few branded. on brand as have just as You're follow companies the I of Perhaps, on consumer one the particularly your private well up in that

private across label. if brand changes about So, share talk in could you curious

if incrementality in macro category, any end at you're any the given Specifically, of of sort low sensitivity? situation, of seeing the acceleration and the terms price

Rod Little

not any We in sun not the more a We're change couple sentiment. deceleration seeing meaningful consumer about in which one, consumer being biggest whether, talked the little about of there. being is a categories,

domestically look category if particularly versus we But in the much weeks, line rate beyond month here the very at XX that, growth shave, in prior in US. three last

seeing and up increases. So a Internationally, we're not some seeing actually it's slowdown. picked we're

at, looking you're consumer market So the healthy. depending is on the

seeing and also lower meaningful opening price trade label, get consumers we're seeing sometimes we're a when price down point. absolute that, to for meaningful going example, do the which disposable, pinched. Within not trade not any to point, And any private they after down

category meaningful stable, growing trade seeing and we're shave, down. no Within a

Operator

more no closing concludes this the are I conference remarks. question-and-answer questions Little There at to over like session. any would This our for time. Rod now Instructions]. [Operator to turn back

Rod Little

like to time, you and months. Edgewell three just in to in I'd interest continued we'll talk for everybody your thank your

Operator

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

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Edgewell Personal Care (EPC) 3 Aug 232023 Q3 Earnings call transcript