EPC - Earnings call 1 2024 | Edgewell Personal Care Company

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Operator

Good morning, and welcome to Edgewell Personal Care First Quarter 2024 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Chris Gough. Please go ahead.

Chris Gough

Good morning, everyone, and thank you for joining us this morning for Edgewell's First 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 our call to the we transition fiscal kick hand before Rod over Q&A. it XXXX and outlook Dan and results then discuss to full year to off will being replay available via our call is be This website, recorded and for www.edgewell.com.

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

events may except risks obligation implied to to required revise results any or new actual SEC. various are of or to be and from reports our not the on Factors in on our law. forward-looking our XX-K as XX, has September report based forward-looking by or any which assumptions cause year been uncertainties, quarterly statements. XXXX, under those the and caption update circumstances, statements ended by are for on be different in with annual those subject as expressed and These We Risk may Form statements the our reflect filed to including these assume These materially do described risks amended Form XX-Q,

our press of section as measures not issued we call, or certain the the This with non-GAAP prepared financial earlier Investor Relations as GAAP is measures will release available is supplement principles. of to superior provided most directly a in with performance for measures non-GAAP is financial accepted a not website. accounting at These are in our GAAP. this information of accordance accordance comparable in generally refer A shown the to, today. measures non-GAAP prepared financial which reconciliation non-GAAP During measures. to to substitute

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

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

Rod Little

Notably, Germany, streamline as response both am about Chris. growth, very meaningful our strong the start in call. and you, a earnings good mostly seeing and structure thanks on we consumer performance joining we the markets by gains. market drove continue wholesaler also fiscal strong we a are organic our We X% share was growth our brands and good strengthen Japan and excited everyone, Good and morning, international saw largely the reflecting our for year both driven both us gains markets growth underpinned to retailer The categories leadership in and international and in to capabilities growth. our to across and support. price first business. 'XX I in-market had sales net were by with volume Thank organic execution quarter improved healthier results

American brought markets all global markets with to ago, me center the and we closer A year reporting our non-North Dan. directly to

some North which America, organic growth contributed that in despite profile. year-over-year to sales net almost local more most we've In all of a across the to significant decision-making and continued business, notably organic X/X Japan contributed which also push care. of dynamics Europe, and We to in China, and transitory our to robust declines, has leadership changes represent fem made international teams, collectively accountability

remains resilient. resulting in with markets, line largely and trend. the and Across solid our market share consumption consumer Our results were

bigger selling and at spring Billie replatforming Sun our Our categories fem seasons, are positioned move notable believe care categories we we remained brand us. relatively of in and in healthy our the well innovation we into summer Care launch into and front with all body as new

margin by improved Adjusted the our With deliver expectations, We for we expanded of delivered our and accelerate top EPS to our productivity gains brands ahead realize have investment revenue savings ahead and and to bottom costs both driven price in year-over-year on our disciplined increased place, line. in strong increased EBITDA the to ability year start of and from remain confidence adjusted quarter, management. in fundamentals our expectations. our outlook gross this with and in good ability G&A

we example good a was continued for model And quarter ultimately, of business built. the first have The success. our path

top in support market investment profile. accretion, healthy markets margin and growth commercial good sustainable outcomes with share of gross profit incremental a line Solid brands and priority accelerated

Importantly, leading of in-store preferred their channels brands globe our top be to across portfolio for consumers of continues of regardless mind the online. or

and improved innovation of here United brand our points good compelling trusted a globally in to brands. States mid-single-digit with we with and our in seeing quarter Sun gains and retailer digital shelf our the of and from the Billie of of organic the expectations, across growth leading in the we shave Canada, In execution expansion advantages shaving line market and portfolio. In retail brand portfolio business, building technology successful the are Care, saw was all the partnerships demonstrating healthier in private clear manufacturing brands capabilities proof share clear stronger and concept

control, to competitive manufacturing of direct Our shelf end-to-end formulation, to all are internal product store regulatory, our points broader and success. to quality contribute delivery advantage capabilities of

execute the initial launch in body be consumers and as Our pilot Grooming soon of we augmented begin offering crafted and the today. well portfolio our of the Billie resonate brands of to retail to brand brand's continues by beginning the disruptive force with will

and last the now and through finally, imbalances with positioning the challenging. and that as brand target our campaign believe business the motive offers, master strategy a new bullish Fem Carefree liners over consumer And that we personally have and I well expect pads about that the opportunities year-over-year chain our comparisons with months we unique Care, plugged demand replatform consumers. a in will resonate that we've the category XX supply make cycled I'm our brand under

Our brands top again at all fiscal across The independent healthier better point we read XXXX. which than underpins distribution this and any as outcomes durable, of beyond. channels represented company are since in on profile year once XXXX an encouraging, initial year this distribution of sustainable began and is for growth our line all

continued, headwinds. gross basis revenue and well margin we initiatives though efficiency the disciplined face as remain productivity of from price XXX generated of as combined inflationary points and We Operationally, almost easing in management execution. benefits

in job driving supply the later investment of And further chain, our activation our around spend to economics this as operational excellence benefits ahead support management. terrific of focus planned, of revenue come digital importantly, of the a compelling unit quarter. centered will realizing did sound the and we quarter market teams across brands promotion and with while innovation increased Our the that in on

So we've demonstrate working. to wrap since up, is and the our long-term made outlining the that for year results XXXX vision the and this progress outlook our growth our full illustrate importantly, and strategy in quarter goals

growth, accretion, that model, and generation. net margin past years, we our with have move X the which As confident financial inflationary contended G&A sales we remain free in leverage strong gross we past have for cash peak pressures caused for organic flow

key ability through each our and significant a gives us priorities. our we stronger for that to successfully will deliver creation brands is portfolio business better Simply a value against execute of put, demonstrated This strategic confidence our shareholders. of

'XX. for results And fiscal first discuss our now like to quarter take Dan and our to I'd ask Dan? outlook you through

Daniel Sullivan

Thank you, Rod. Good morning, everyone.

with international markets, Rod and As of margin better-than-expected operational generation top quarter results and mentioned, while particularly earnings line helped our in which in us and drive the solid execution cash quarter, growth, for market in results good notable the gross outlook. which year previous full setting to commercial up was deliver share well A all enabled our accretion. strong, line

below in sales a net international recovery like grow gains. increased pricing and continuing in eased of remained across the underpinned largely ago. driven our X.X%, segment Japan the and from quarter, markets the U.S. trends organic gains to growth to and quarter, key our aggregate In X.X% volume XX-week with in organic quarter, Aggregate by Germany. the signs and year consumption pricing. International compared structural over as XX%, categories was higher resilient both price For just consumer by grew

held remained Importantly, our management. volume Women's share, The execute. strong price respectively. and drove consumption to our better-than-expected teams from unit commercial both continue savings, in levels improved promotion volume and rates, Operationally, productivity both teams organization gained strong service fill where further Grooming, while realizing Shave and and chain gains we and supply

heightened significant of in absorption inventory, cost of the combined total, last EPS XXX In were gross our transitory adjusted XX points adjusted onetime and quarter, points which margin basis headwinds, almost we of effect the these provide tailwinds of manufacturing accretion, these trapped inflation lower of negative share which expectations. nearly the all effect offset million, per of efforts unfavorable in quarter. margin of to and both $XX.X unit $X.XX which previewed we adjusted above delivered basis EBITDA gross Despite of

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

year. of ahead purchases New was healthy with of year-over-year. in organic delivered international strong over X.X%, performance holiday. America double-digit As in attributable were X%, in sales a the which was by more declines we as to growth. Organic with a price increased to result nearly of North growth net mid-single-digit down was of cycled strong growth, related a coupled last than forward was across Year highlight which international pull volumes price met favorable care consumption X all while just of and execution of down Performance pricing volume half were mentioned, a The return double-digit as sales Japan over markets, X.X%, organic point America grew gains. driven performance North strong category fem

Wet as quarter, organic stood Wet in at men's both in quarter a organic Canada. X% gains with quarter disposables and net phasing Japan, were Germany improved pricing of declined strong we offsetting result growth Men's in-market in growth and than Japan. market sales higher preps activation, systems, strong more the and sales across X.X% International North Shave a and XX% in preps. and market and declines and the Shave disposables conditions, brand the replenishment up benefits aforementioned Shave America and women's out meaningful share in saw with In Systems. Wet for

were quarter, share continue activated the at basis consumption XX scale In a growing In points Amazon. competitive heightened in volume environment CVS. gains and the recent #X recent systems within Men's the at at retail brand Disposables set as category, driven in flat gains shares is our Despite women's and of a essentially XXX the And was the share on U.S. newly data basis the Walmart and XX our points. market while flat and share in increased were share women's channels. reached scanner in the quarter. the market also now branded in above branded brand the by most online X category, razors to track. and share blades Billie Systems Target quarter, the

Care growth sales primarily XX% almost X% just was Skin North up the America Care about in Sun increased Sun higher Sun and X% increased over partially offset International over as organic pricing. was was grooming driven Care and last and essentially America Care and growth X%, cycling volumes. was Sun despite Sun approximately by declines our U.S. In share driven growth net in Care the North higher X% as by year, by sales category mid-single-digit flat. skin. well

the Europe launches by ago. of U.S. XX%. previous a grew in net growth weeks, quarter, Fem in organic offset in Consumption for net volumes. the and lower decreased Wet than share was and Care the of cycle sales or X were sales declined in the and more primarily our net organic XX certain organic up to the we down as sales rate One's X.X% declined point. Grooming the year market X.X% MDD approximately category was our share half or reflecting declines XX.X% as X.X% Cremo bold

later the we buydowns of felt a in master stocks happening the in a brand Carefree inventory impact result In quarter, cycled the part of and spring. retailer of the competitive year ago out launch

the magnitude the destocking of tampon sales organic shelf competition and in the quarter. the performance for intensity to on share and promotional category in increased However, returned as higher-than-expected retailer the drag

P&L. of Approximately XXX and basis of favorable other unit and net points headwinds the were to the sales, cost an basis on items. XXX related of heightened basis savings Core and pressures of expenses higher increased down X.X% productivity currency. and gains, A&P basis cost unfavorable basis of rate XX year. mix points points, gross of and inflation in inclusive trapped price absorption negative Now than partially points about inflation XX basis inventory. XX moving adjusted XX points points points prior of XX basis offset basis XXX basis of margin points Gross transitory

higher $XX.X Adjusted prior compared SG&A compared diluted Adjusted last programs million and people-related points savings year only earnings $X.XX movements $X.XX $XX.X compensation increased of currency by operational operating the sale approximately and last to quarter $X.XX rate of decrease net were in compared million to efficiency X%. were offset XXX a as $X.XX to share GAAP period. was of versus in and year, share the incentive year income basis realized adjusted ongoing and earnings impact unfavorable per of costs sales leverage. in the were per fiscal 'XX first from partly

profit quarter for a credit on facility to $XX.X income period. year. X.Xx. $XX.X and expense. million by of were used the no Currency cash leverage from impact ended debt compared million material share operating quarter was $XX.X within million on access in net our was EBITDA million gains movements prior in within other adjusted the to the $XX.X to currency cash activities $XXX as Net million compared with per operating Adjusted prior of ratio hedge in lower portion million undrawn and year We hand, offset the earnings had the benefits $XXX

$XX to quarter. of and total, $XX we continued $X.XX cash quarterly first In the In share returned dividend the quarter. share dividend totaled for the payout we and during million, declared per million repurchases nearly shareholders quarter, our another

XXXX. fiscal our turning Now outlook for to

good confidence accretion double-digit mentioned a margin increased gross the outlook, earlier, our currency start meet which Rod sustainable EPS with constant adjusted place, top previously our strong in ability fiscal we in fundamentals and to have to and line growth. reflects year growth, As provided

durability far. from chain And of The year potential to our geopolitical supply lack an clarity assumption while unchanged the macro we and FX have further volatile, a outlook. remains that with risks the consumer impacts fiscal backdrop, and currency for environment remains thus of prior resiliency economic from full uncertain challenging our disruptions around the is seen

anticipate to range. For the X% the net fiscal growth we sales X% still year, in organic

be is an basis approximately our gross gross $XXX XX that elements constant as $X.XX for Adjusted be XXX $X.XX profile, of is to million. underpin inflationary headwinds, EBITDA we points outlook productivity savings, unchanged to pricing Our for the $X.XX, is range still expected the margin share change at and of to full FX. continue increase is basis our approximately including Adjusted margin currency. of points to $XXX anticipate view to in no still EPS of accretion There or currency million expected in per headwinds. of year to the inclusive range

sales phasing, and half X. organic In XX% we and half expect X, XX% expect terms half half and EPS growth of in X full in rates of similar continue now we year our between to X

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

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

Operator

from question RBC Nik The Please Instructions] Modi Markets. go with first Capital ahead. is [Operator

Nik Modi

Good everyone. morning, Thanks.

clarification, quick Dan, mind. a don't Just you if

cadence of to obviously, you on from understand your much that result where I the perspective. going change from XX% operators want guidance. Japan? in in just held understand are of Is can people pretty question the market. reporting your structure? just on that think most to terms in, I relative just then Just a because international, of sure the those how actually and kind were a set just the of exactly like of markets broader earnings obviously, a the good pull kind make to is foundation I make in just, and being lot of more what's forward you new Just progress have full new in business, inning we what of you some And

Daniel Sullivan

Nik, a a prepared international little now them we've take start for the been with order. over alluded I'll thanks it his you're in remarks. I'll for journey to question. because Rod in reverse this on year. right,

the essentially leadership and the international So the here markets previous thing reporting business the eliminating to table closer and was did bring the U.S. team in layer to closer a changed within we management lines, first that bring the us

important step year is was Japan really about across changes second X as The and leadership ago we've markets, That well. meaningful a made Europe. China,

Japan that a now Europe effects new in combination wholesaler year What strategies executed We've in we wholesaler been developed inventory is market, a strategy. being you're the got seeing a got new out have changes those organization You've differently and with ago. of made are in and in they're playing each a new and right?

If really continued what lot in international I to on middle year I peg had of say innings. of certainly, would happening. last it, And the we're all the so we've there's like good our you're over things across a think upside We bullish XX But to I months. done business.

on, that? go I Rod, Before add to anything you would

Rod Little

Yes.

see would Dan right building that's Nik, market What win, the in an fit market leaders with now not to we've captured think, in we out markets, key team place them. teams the the the of we I that. capable in won't that We're local well. that's by much has And double-click been over locally. to but place a it leadership though importance the more having entirely mention capable is new have but I leadership year. only now themselves, have the on I win fruits for one leadership where done below starting of name, to

local innovating to doesn't U.S. towards the think exporting back to have The Asian markets ideas and from part exist. innings is innovation what's frankly come or international to there's final I a as mention more is fit opportunity of our to end consumer relative global for big I'll a this opposed that thing here. purpose be European And

we come 'XX 'XX, international. think towards I we on remain as look so and that's And bullish to

Daniel Sullivan

then, And the on just holding outlook. up the Nik, to Yes. on pick question

would I in really what margin encouraged profile. a the by think make. were quarter I we points there's couple One, the gross of was

Some is that the we phased quarter we and of in of the year. pulled that timing into That's a have had phasing for later forward what reality. just

the in. think we're I quarter general is though one sentiment

We all which for in that sun mean know gotten U.S., what season the we haven't into our the business. can yet

the with But we're really particularly chose prudent year, lies where of line here have. that Sun, of We underlying some given And in start the and about of business just what the of guidance. confident. obviously the the good execution. so the we sight ahead we being We're are we in feel year to hold us,

Operator

question Next with Tong Olivia Raymond is from James.

Olivia Tong Cheang

line Great. I quarter, expense of came the what of the this pretty and in clear you us a giving than caution bit some wanted year. sort sort to of last line -- around some inventory and more the on the in better understand since guide those QX with of little expected for QX about being were SG&A on of

you of range what say little you And sort just gave QX, guide for of bit. worked us you to come than to which better that of So sort as in would sort QX facto order the in QX about of thought? suggest a de have think in and

little and about a takes you mind? there, bit if puts talk Just wouldn't the about

Daniel Sullivan

if all of it both profile, was execution think Look, Sure. surprise, reflection obviously the and ledger. really of by cost in team side it good was you the on surprise, the I was the but QX the a good in margin will,

would the had SRGM. that on And than was in we recognizing the of side, I'll in X and them necessarily sort So think the call through both point year but factors order certainly benefit productivity phasing X carry what of and some benefit of we us I there's I doesn't that revenue for a them to, and delivered quarter. with worked expected. in And kind change tick more price harder magnitude, all

and at certain high in productivity. As are level. is The accelerated a had an executing really we I mentioned, initiatives later the did job excellent first item team our execution. on faced that plans They

planned rebate is good think certain I in was that to hit execution. timing the that year for surprise, global settlements programs contracts, we had but and which procurement global a later of in the good in land is where us what bit really a quarter the was able a in quarter. way,

internationally a thing it, Anytime Japan, bit distribution all in grew little to this I quarter for the attached point think is price to business. growth you which then I both. of we mix increases second the mix. you've Wet a Shave, and us. level in is is would entirely And benefit piece had We third That timing the X% warehouse of Shave got and for in is where the right? costs, over see particularly

I execution. think really good structural

rates seeing are are inflation come We down easing. seeing

of shipped our also in full shipments in We heavy. terms truckloads. productive very We're

say and is That So was margin we all saw accretion timing, more I together, of XX% that basis than the say of the quarter. I would put is structural. I to that quarter XXX had would was likely. that we the you, XX% in point roughly in what profiled really

expected. lines, we A&P what had and expense otherwise, pretty G&A, the as up lined mentioned in On we also much FX,

Olivia Tong Cheang

the just Obviously, up you And suggest the categories to guide up respect really advertising? flattish to The there's of expect progresses. the minus that ramp Great. this more with or that see an advertising on year in you Can as increase following plus about particular talk would advertising. quarter.

Rod Little

Yes. Olivia, here. Rod

products our We we're new excited for have We front in bulk about we've year that program Body and launching Billie of into very actually yesterday and innovation line the brick-and-mortar of us. of about. talked launched today come body with as the to a is online

be support So that a in in advertising will and investments net that. increase behind

sprays. for those what we disruptive an Sun innovation, is missed. believe the #X year. in believe, this and product formulation. for innovation a coming It's spray environment. exclusive Boat. sea on Care This non great Boat, sustainable, spray. driven driven, alternative on Banana It's the XXX superior We that spray biggest we coverage is They're have most the propellent propellent a Banana not like typically It's a,

the to come us as thing spring ramp behind that that and we on innovation Care, that's other see coming Beyond big start months. up into the we all comes #X have summer the investment Sun

carefree major plastic, coming pads we the brand Carefree a And Carefree. the is part where we're major absorbent, upgrade piece final collapsing more our brand Stayfree replatforming where simplification we under have of as sustainable, a product on more master a have business, that, less

clarity X into the So spending brands new very that retailer going campaign we've It's and effectively target very X on absolute positioning. moms, branded strong and put for we're with going drive got support in that to to that brand. a and innovative place

and you'll So that's that's year. the to coming all still see why I come of balance think in in QX the through

Olivia Tong Cheang

Great. Thank you, best of luck.

Operator

next from Truist Securities. Chappell with The is Bill question

William Chappell

terms total for can gap gain year? further a saw at women's Good for Thanks. we Walmart? with X kind Walmart in in I share? on the the move Or in the type shelf narrowing Billie where last share morning guess, of we you you have year? summer it you terms guess What's gains back are beyond of of move that do less think of questions Are in the line is of I And U.S. this the space sight

Rod Little

a I of effectively as the think year, just to around year but and last already what's players. coming additional the covered. fill-in there's now. But incremental come. to some some given just relative distribution ones gain, billing online this regional a share big national, All it there's relates to We're in more the distribution, little base are less of

broader bigger that has brand the play broader beyond the the online is we an always a then club and incremental which do. then And think beyond distribution out lifestyle we for much right brand realizing there's and channels opportunity then there's opportunity of around time turned a portfolio a over and we've playing coverage. the to the that specifically couple And there on think shape really potentially that just channel shape,

William Chappell

is year there building last a national through all behind a plan platform to you up on really this of been or year marketing are that's advertising So anyways? step that now kind

Rod Little

year Billie starts see effectively will increased an You investment that this now. behind

William Chappell

in that. Got follow-up Fem new new Care Fem understand But XX Care. followed years it. to the have XX different on a past working probably And you over strategy mean, strategies it. seems one then Rod, had have on the I of I XX,

confidence again So I can you volumes grow? kind of gives mean stabilize what actually that or

Rod Little

stabilize execution better strategy, which business. stabilize I first, with a Bill, part place place building we're targeting against take think, in is consistency, just that innovation, cost that. in This Yes. to is business, new We of put clarity strategy couple a the had formulation of what's not new of of of with do the much years This product strategy some on performance, ago a the happening We've dedicated to. moved team who and better the talking was, claims, strategy, phase around better very now product out, of focused into Carefree.

where journey. in are the that's So we of the phase

completely care? be we believe You're successful think, category. start be can fem over saying, concern Let what in could all successful low by Billie, rightly been will and or fem in deal or be and time, maintain that a care, going fem really of else we can And with that I had share pointing don't volume out, to we in I question you're a at a position, So what's can going on, in we me successful digits you've within care what's single growth if low traditionally single-digit you line ahead category category being unit least a growth equal. of be right? grow

beginning the the off where We're a this been of period category disrupted. pandemic coming since has

disruptions, the drove were to we of stock category, very not you we where lapped competitive we the care, supply shelves position period that had because the in competitors lapping the we're in today. at had period in out a of set. the ago. from ago, go were just we, out of the that growth And one year double-digit We X just the a we that day year stock, benefiting pandemic, beginning. emptied the was as back us, fem If recently as which

will X you think good that is today, year all, ought And when now competition finished. the less be cycle where with we're forward. sales like-for-like, us X-year stack QX, trends also on just go I the it hope lot as of our for I place news not reported The I behind category. are consumption we for us match So for that ago but what in is much quarter in we us take at our X because only more and to growth where think helps. for going much forward, we a basis actually a that single-digit a closer messy growth way low and in

Operator

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

Christopher Carey

wanted I So just questions, to but with X start gross margin.

impact for would margin get quarter, was year. inventory that sequentially? the roughly for that bit implying, productivity? So you I it forward. if run of Is gross rate the helpful. stepdown underlying bit the to driving steps expect pull a all the contextualizing just the the be rest inflation? follow-up. mix like, why you're So Do higher, quite worse? XX% thoughts margins to adjust obviously, What's then a guess, really obviously, gross But was there also underlying down this margin. run rate Maybe on have XX% And of I gross quite I sounds closer a

Daniel Sullivan

the what's think I impact to timing, we X, won't context if Chris, that expect previous X I what's price realization. QX, our put productivity margin look be quarters proper those the the not versus the through elements for to for will think I but our underpin savings be which But strongest for at in drive quarter less. likely Look, strongest structural That's that say think the I question. would did you thanks in for we have question. quarter

see to scale And down. so you'll start that

and see Again, bit at timing pricing structural, Equally, a is maybe time. of to continue rate though, that ease, partly just partly in. a that slower the way profiled will but also over productivity you inflation is are

And this it that summarize all you of I so put would I together, when think way.

we're constant gains of the of currency executed gain. was given the super a year I we're the will quarter. terms half full timing price think productivity as XXX saw margin the some way encouraged at in certainly out, about QX the laid the team points phase we for basis and proxy and confident we and back way look outlook year our we the the which dynamics essentially in hesitant to use as the profile full we're that that year. of

Christopher Carey

North sales growth Sun strength offer very year? the strong in America? business helpful. way rest do in if North by can just you perhaps know by mix of maybe That's in had international I'm that segment, go offset about the you're Wet frame viewing quarter we more lot declines kind a for international being Skin Care of I in Okay. markets, conscious kind of there's you America forward. and with comments regarding talking gross between for the and changes maybe quarter, sun the expectations impact were versus that quarter. How Shave quarter. in that for some the maybe expectations the this some pieces by year, a organic don't margin moving the Obviously, of neutral

rest our -- of just maybe on context bit would complexion a be North some top and the between segments the So the the of can for you helpful. more of That America year? line international just offer

Rod Little

good simple. a -- business outgrew as domestic our our means a would as saw our by there's land of X it's we it the year, we of else be year in ahead about it, proxy make kind very the America have Last we try question quarter reported. rate. this we full where no on international if double is on call the at basis, terms that U.S. together. What look to North a you going business in you Chris, I exceed we lot what growing to of look business international U.S. of domestic All expect year. U.S. but Yes, it let's business, being a we very, equal because approximately on

I outcomes proxy business mostly in improvement see American forward, sequential the going domestically the have better North a is distribution we outcomes our the come of We in largely to expect around throughout know because balance would here. the innovation to As balance the year. of year, planogram

as particularly for the you at was which And in care the sets normalize look QX as we so I under think how delivery. delivery of half up, year

of of As itself. that kind care that normalizes, takes

So balance in of better performance a I American North think see the you'll the year.

sequential category. you'll weather, depending to absolute on ought quarter. growth Shave, international first saw I not we the strength in see think rate see, the continues for albeit think, both of for in through be again, Grooming us sun think, see to And as resilient the you and we in forward here the year. year. improvement And I on growth the full balance we pretty a continue, at Femcare of you'll the cycle

could Dan, I you or clarify anything? if know add don't

Daniel Sullivan

will midpoint the some Maybe X% largely We it, think Chris. organics on by to how to context quarter. it is put phase that still

on right necessarily sort don't And right still high segment we anticipate piece, change a on play portfolio. there. mid- on and single-digit portfolio to of growth single-digit win the growth we to anticipate the to low So the

Operator

Canaccord The Anderson next from with question Susan Genuity. is

Susan Anderson

men's wanted job Nice I ask quarter. to the the on grooming. on

slightly were I year. both you you also that sales give if have little but bit any the I on Bulldog international. for domestic up. and if Maybe and coming category down, that the was Then in out drivers a there you growth, think noted drove color more I'm think curious products the could new

Daniel Sullivan

the accomplishment. the And thank continued ahead of had by Susan, quarter to reached distribution very is we the hard #X strong worked internationally the now U.K. team large which profiled year. The X it XX% the attribute category, a for which things: in gains, portfolio had I in I in year-over-year. you a which significant the has would here. has led grew in part brand for question. very very, Yes, Bulldog, Grooming about

set is seeing hair this category, for Interesting into And skin care. in the year innovation, advanced which initially. products well then of anti-perspirant the it the been deodorant received line we've brand, for very more which innovation new expansion we're mostly bit premium a Bulldog, a priced has in introduced

continues in excited perform So some and its to home the brand growth. well really base really deliver

Susan Anderson

then also on I the Okay. issues Great. in Sea. And just helpful. really That's going Red and wanted ask costs transportation on to the

And exposure or If issues there? to transportation your then for if this are just you're what year? also, any have the for expectations you those

Daniel Sullivan

Yes.

product little would very limited. very And shave is is what It exposure complexity. essentially disruption fairly little the be So seen that moves and China. between to date we've and Europe

We built a bit have inventory. of

the seen through Cape around to as times Red as have we've a the go opposed expand We to had bit Sea. lead

de of obviously, to be have both in implications Obviously, the terms don't So everyone there plan anticipate implications for in been the we steps and teams we're has far, minimis will monitoring year. cost right and this situation. like it significant But taken business it, that else, complexity. the for the

Susan Anderson

Good of Okay. the to rest year. Great. luck the

Operator

UBS. question with Grom is The next Peter

Peter Grom

hope operator, well. I doing you're good morning, Thanks, and everyone.

margin. another quick one one gross maybe and question then housekeeping on So

First, if way it not you just any pull times or of mentioned then would sure throughout the further Japan. whether mentioned of that. there kind was margin, not, if gross specifically this of quarter good quantify as be but curious share you in didn't, you forward on helpful be confidence Is previously greater timing to you the a look you several chunk kind you But could ahead. mentioned call, unlock I'm to there be savings gives productivity performance if this that? And would could related. that I this we that

Rod Little

got promotion the would like, frankly, near August, had the really don't then the quarter part We're had December margin period year that. year perspective. pushes Japan of broader flip October, driven September first have low solid on the ago One things. November, because that, historical like wholesale team I shipments relatively the to it business cycling just Japan, gross was just back period, it we a where Peter, that so of we take Yes. the phased and practice a year in a in Dan of we end I was traditionally we heavy I'll don't a so in Look, think had by out X window. that the to the ago, for and so way

an comp had as easy comp. returned bulk the good other where range then delayed call to That think of market an put to million of so in quarter to X, X But are in market was, it, That $X had things would base $XX easy million I a the we It And of we of growth. up the it growth. the growth. delivery has the least years. single-digit that's of pandemic. and the recovery have pricing incremental much of management market at revenue it that, last we over in Japan just that a quarter we was have growth territory, coming pricing taken And high pricing in on where now out a hadn't the where coming in few in the couple top the activity And around seen market we finished.

not inflation that is of but that it, the benefiting -- seeing in P&L the now think We in for We're cost the had pricing just is So now P&L, cost help. us. the had we up flow. the catching

the like-for-like And that on at you distributing managing are we're but future. there. optimistic seeing cycling on not and the nearly the business comps what I rate how we're think so Japan of for we're now

Daniel Sullivan

Yes.

pretty the productivity excess any think and I ongoing team And time. organization say the we in we're in different savings, accelerate they is, where On go initiatives the got XXX Peter, margin piece, supply results. lean by we've demonstrated can. And we've after within would that hard what of what chain and encouraged I at will in point certainly is continue our look, think I to

could there? be So think likely -- more I cost upside side. -- be there be on the could likely there would

sight side, all now. sold of we've the in is line got phased I revenue which incremental of good pricing, pretty think a been in in, we our mostly international what on for has

there, So there's risk no wouldn't I execution upside. anticipate but

So than it to it environment. I were be. think productivity, challenges would revenue. guess, ready I in question, in more We're But with if it to see certainly your short answer to in the be we come, likely could not especially some the of yet, call macro

Operator

over to for I our like the question-and-answer any questions. this to there Little, remarks. CEO, turn no At closing time, session. conference Rod are would concludes further This

Rod Little

on in everyone. you talk appreciate the Yes. continued I in Thank update with the QX. time X company, to and today you, we'll and an the interest months

Operator

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

You may now disconnect.

Edgewell Personal Care (EPC) 7 Feb 242024 Q1 Earnings call transcript