EPC - Earnings call transcript Q3 2024 | Edgewell Personal Care Company

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Operator

Good morning, and welcome to Edgewell's Third Quarter Fiscal Year 2024 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I'd now like to turn the conference over to Chris Gough, Vice President, Investor Relations. Please go ahead.

Chris Gough

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

to except or on XXXX, in based obligation on These on events or by any for including our new cause value, and expectations the related by product be include We commodity Litigation to are as actions, to or Risk the forward-looking earnings, XX-Q, forward-looking various caption, the or capital annual Act future are reflect assumptions our be which expressed Reform metrics, future repositioning During not statements our under views the shareholders may statements required law. advertising the for may September from we to in launches, file and of subject Any provisions reports uncertainties, to plans risks purposes these assume of those and implied capital make reflect our may future of under respect plans with described call, XXXX, such return events, plans current materially spending, savings forward-looking costs, SEC. to actual sales, ended revise costs statements XX, circumstances, future results and different for to our year prospects. to on Factors performance. Form do safe any restructuring about promotional changes Securities statements. those working update and the with report our risks integrations, statements for This statements XX-K is quarterly Private as acquisitions, of category might These amended and and Form our fluctuations, are harbor more. currency the which

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

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

Rod Little

prolonged our on and to transformation are the stronger, of third better strategy challenges business and on Thank this impact continues. transformation that business the It's unmatched exited our we We've from that profound that position a for as Chris. macroeconomic a call. Results we over Good global and far of a had year years we just period also began fiscal healthier, us results. ago, to demonstrate and and note business everyone, thanks has important our done far business. disruption joining X XXXX is working our today morning, you, quarter continue earnings so posted and

us changes of drive I to top and to announced growth. leadership decision-making position improve which our streamline turn discuss operating Before and third like I'd model, and organization execution, quarter over-arching structure line our deliver strategy today. to to that to the key will team bottom earlier our on results, better These enterprise sustainable our changes all further we strengthen will

for of areas overarching our business the for that We critical serve context have as the announced focus X changes.

commercial and long down accelerating catalyst strengthen better term; continuing innovation accelerating a First, year-on-year our doubling and gross clear businesses; drive as compete second, fortifying efforts for business, accretion in and strengthening to increase to progress and to international right-to-play leverage strength organic fifth, chain world-class become platform; our margin capabilities top fourth, the to U.S. increase specifically we strengthening speed consumer-centric of our our meaningful path order organization; our a critical these the drive categories enterprise on to the third, line focus, supply a continue we across growth. In across areas as of to continued series the of on leadership to changes. announced investment underlying commercial today,

and with leadership creation been enhance the strengthen narrow The Operating Chief spans will structure, decision-making improve appointed. Dan enterprise of to of has first and has making Latin our execution is an leader, Chief which him serving a priorities President for candidate to speed Sullivan He America. of Officer position. help This to been perfect Edgewell XXXX, existing since Officer role maximize as has role and business control, exceptional the streamline and results-driven Financial the performance. critical the proven be against Europe Dan of to

and M&A to strategy, business also business, operations IT, continuing While purview finance, have supply oversee corporate and will international chain and over sustainability. global development, our entire he now

Financial his a Francesca new leader who moves key this has finance X. into the Chief will As member since been December effective role and deserving of is role, Fran team talented finance Officer very our of of Dan assume Weissman, promotion. XXXX a

As These of CFO, additional and reflection lead tax team are that controllership audit, accounting, talented internal incredibly I'm internal for so all to treasury. our investor appointments she and a of will operational with and work aspects alongside. responsibilities finance global relations, proud to continue commercial and FP&A

EMEA. to include I As Latin businesses, China, which Oceania Dan addition and international and will Europe, America, in mentioned, Japan our head

the him continue endeavors. Our O'Toole, for contributions and in role underway the leaving be personally will currently me. current his search I fill to North President position. American the I wish for company. will Edgewell future to assume Once and his will is region Eric to direct America, Eric filled, in want interim of the well North to report an thank is it responsibilities the executive to

on my our agenda. in strengthening of U.S. forward, our moving focusing innovation focus time Importantly, accelerating to also will I more addition on business,

third successful the progress pleased in I do evidenced to the it faster that launch, quarter. our While in XXX Edgewell and want and behind strengthen our us confident the Banana our which products Boat and top very and I line #X Coverage will #X leadership reached over to better the by the am the with enhance has as execution here disruption. category for I'm business sustainable structure growth increase and term. position bottom simplify these our ultimately team our longer changes new

with expectations. for EBITDA growth, which were XXX per We Now all turn year-over-year accretion to results share growth strong our adjusted of delivered quarter. let's quarter, basis margin earnings this points, results adjusted of again X% XX% financial gross and above our the

of management strategy, as the expansion margin pillars healthy productivity Our by gross of balance a disciplined quarter our was in and the our teams on our efforts. revenue initiatives executed strategic execution underpinned well of

gross Our return our results third the level as to serve catalyst pre-COVID while commitment quarter profit were over-time. outlook strong year Top for in increase results full line to the mixed. for reinforcing margin margins our the

growth Care Feminine final start international Our organic growth cycled and organic growth North North double-digit the grew States, Cremo North in consumption of incremental net XX% equally digits businesses and America by balance of Billie to sustained distribution the our mid-single the We featured unfavorable underpinned X%, their remain rollouts go, the Sun continued organic over realized it quarter. with in Right-to-Win gains sales driven the are Double-digit in the in in over X%, months. execution Care the Care price around new net modest in and in on share Sun growth largely growth category markets. net quarter the season the trends across as ensuring Sales season's The of position increased season strength just consumption ago. and the in our and product a on America. Grooming season achieving and across volume teams sales over early which sales by and business. Organic quarter dampened America sun with sales bullish industry-leading the with in momentum, by strong nearly weather our focused of declined X%, portfolio, United businesses. net driven strengthened all regions still our year Grooming propelled by growth in was summer's

was in in as and declines promotional across Shave our to Care In levels Our challenging heightened growth. category America, further North continue the pressuring dynamics right-to-play Wet offset international Feminine to enough businesses States. declined X% United face category quarter with channel competitive not the growth broad and

Our largely about Wet performed down net as Shave business we with sales expected, X%. organic

our However, our Feminine a expectations Care materially performance impacted rollout sluggishness persistent pads and was Carefree tampons below our sales. Sport in delay well and as

earnings year, as looking return With our across diverse our X.X of approach continue our generation quarter and growth and gross look year-to-date shareholders, leverage cash to next X debt of work, to having our basis particularly supporting disciplined margin times returning fourth enabled received priorities quarter. In brand putting the XXX net the strategic with changes our growth, are capital fiscal today, $XX.X has per to our this retailer in sales year to expect brands adjusted and at clear. resets complete new broadened and while for the now execution the announced deliver to we our flow to Carefree us we the organic million portfolio summary, care in points to XX% fem we solid we be master realized to of share brands support, priorities left our just quarter. shelf With global adjusted healthy allocation, lowering year-on-year and excellent accretion finally performance,

continue both accretion a and profitability. to We deliver reinvestment brand make margin gross fuel will to priority increased

our quarter Dan? our better shelf, outlook or bottom take and like in the our innovation for as line of you continue fiscal and We results behind our algorithm. I'd to stated through Dan above position core results top the to will consumer-centric I'm deliver goals. And on catalyst XXXX. us announced with confident changes we brands line third achieve that now to differentiation for invest will discuss a and to ask today our

Daniel Sullivan

you, Thank everyone. Good Rod. morning,

to an say that the me X her and congratulations decades. in and asset also I'm at who know of strong I invaluable Fran, with working in responsibilities let for my success CFO track-record had the build X here to she'll over I Edgewell, her years COO. role. She's on role I take the add been to of want First, thrilled of privilege on

trust our closely and the performance commercial all maintain and As announced our the on outlined, capabilities Rod structures, commitment will and today Rod future which I'm to excited operational more by business responsibly. I our capitalize across work across better reporting us our position organization, to and leverage with operational grow simplify talented teammates will growth, of expedite changes appreciate placed better and to globe. to decision-making operating me core improve the Board, and

to quarter. in on our moving results the Now

model of business growth, As again yield good growth was by our strategies top to The Rod mentioned, with X%, adjusted modest largely continues quarter strength execution of about inherent line driven meaningful into XX% line another accretion. expectations, our of quarter margin which broader our demonstrated gross this EPS year-over-year was results. in of translated as

While EBITDA easing environment from fundamentals though Inflation and the and in slightly operational to remains competitive environment our and persistent, the drug dollar Gains environment we on in adjusted the outlook, compared where shape markets international year traffic, and cost imbalance down pricing categories challenging. the volumes continued foot most our which to external we're in particular, discipline and shortly. Overall, execution headwinds are I and will to demand momentum continue lower labor pressures across The while rates U.S. across segments. U.S. shave shelf. challenges strong raise macro which remains full notable importantly, ago supply strong These have the eased and year discuss Women's in consumption wages. a and increasingly and, were stubbornly be of higher operating other EPS a is trends softened. us are and choppy promotional, seeing channel, interest in highly retailer enabled

promotions funnel continue Wet times, to, a though of execution highly also see into for We've value limited in We and environment, reallocating to the investment spend brand with consumers. Shave on categories. not especially focus our offerings top responded and retail increased and the promotional Care Fem

despite organization a Importantly, promotional and at continued U.S. the productivity execute manufacturing increased realized again chain the level savings, to which gains once strong in supply better-than-expected fueled year-over-year spending margin and our high gross

North Sun in our and Oceania and highly in increased category Care International net highly Now and were largely China, the Care. businesses channel Wet in in by markets trends Wet strong X.X% growth Wet key Women's global Greater Grooming drug Wet expected results Organic as and in me the net were remains X.X% grew Shave for in-market In the in to and continued Men's and growth across in X%, quarter. highlights and Shave channel. and growth and North preps in health, America in solid and fueled over promotional category Grooming net and the promotional, Mexico as in negatively in with America reflecting with detailed Europe Care. as Care Sun high sales Organic declined by single-digit and and were declines price Shave international volume mid-single-digit and Sun of be as weakening across in activation. sales North gains, price International turn systems mass strong by were extremely let double-digit Shave of distribution and growth volume growth markets organic notable. down Market X.X% in Wet European Latin Wet America, competitive Shave offset outcomes quarter. particularly declines equally offset X% to were Shave by gains was Fem and were X% declines performance shave by growth brand the disposables. gains digits mid-single America coupled dynamics, in across Japan offset mid-single were and continue sales in strengthening organic digits, channel. Women's share sales impacted growth particularly down Fem

the transitory re-platforming with brand. on in business situation, appropriate a transition as results. a faced quarter, XQ, though preps widespread we promotional in U.S., supplier headwinds Edge mostly also We've supplier We new our by the caused the contemplated retailer the will incur steps America heightened driven category, outlook. supply In in and packaging blades channel we taken the to likely is in was that our shave executed consumption remedy pressured our challenges which to and further of North shelf X.X% performance declining and our drug traffic, razors levels down with weaker in stock-ups

basis North with each units a international partially was offset grew in notable, dollars derma start X% Sun points decline share a Results While delivering our way, growth Skin XX gains. consumption drug The the leading U.S., continues to at with about XX the retail. outperform with May. target. Sun increased the in a channel has growth were trends category Care and in America XXX performance at to reached International price market in it share again this and net Walmart through growth and Care strong in overall, of share, driver in material as increased that across by the points X% of Grooming sluggish share over-index. and Care where Skin. gained share declines drug and brand share despite combination The quarter leading XX% the basis approximately channels. as In Sun the mass in we consumption Mexico in decreased organic in and over X% brand improved XX% through sales Sun XXX of Billie volume delivering and is declines and the growth

the increasing was entirely flat. liners the breadth up than promotional a consumption pads by quarter, X% a gain net Consumption XX new XX.X% category from innovation Overall, organic declined in through and net sales remains well as promotions now tampon the master and of our claimed sales spray Carefree as planogram share, XX%, over decline delays was retail. highly by basis leader. down share sales that and depth retailer broader XX%. net category. Grooming just Cremo so impacted XXX of the executional X the rollout market continued which strong inventory items the X%, expected. sales point our driven portfolio category U.S. buy-downs with We've organic to year-on-year, more brand disproportionately the new were top organic Fem X% of and launch Body retail largely both and cycled in started launch. at quarter, Coverage Our as Ones the points the reached declined our and driven approximately for by basis care Billie's at XXX Care Wet X.X%, were last declined increased

response encouraged sluggish delistings. clean point quarter. count] was the [high shelf, but launch Tampons, on in the comfort up pads Sport consumption, over of our Playtex offset share are scales we consumers In brand the the with the largely a by by strong, As of gaining initial from despite some

diluted period. currency $X.XX to Currency $X.XX was EBITDA Adjusted prior million, the lower quarter and per with cash expense. million ended $XXX paid $X.XX To-date facility of the on currency and million continue as approximately hand, operating $X.XX costs, last XX%. margin lower activities execute shelf million down points, SG&A increase $XXX.X versus leverage million in $XX.X balance and sheet. access XXX ongoing as income share an we've million, legal savings in were for 'XX fiscal efficiency and gross $X.XX from with the per year, programs, strategy margin higher inclusive were in million year this adjusted the and in of $XX.X cash points year-over-year than was down profit fiscal mix X.X compared $X.XX for income the and reflecting rate third the inflation savings to responded of the core A&P of partially $X Gross by basis of moving of costs basis another We clear which the investment during higher the management gains quarter gross by $XX first share of bad total, to year and impact down the million expenses inclusive environment increased in and XXX Adjusted points we gains, to we a approximately A&P unfavorable higher net by XX on our increased debt P&L. offset more Now and In core within margin repurchases to sales, quarter per in basis and as quarterly points an of from into strategic and XXX rate returned had absorption adjusted realized translational to revenue credit spend. fees unfavorable currency. were was last favorable to totaled cash promotional of million the In movements basis our XX portion operating period. to offset compared approximate quarter, points increased due to X points, basis of share XX a compared points quarter. impact compared earnings continued operating SG&A increased brand $XXX year. Net Adjusted ratio of year net people-related the our prior delivered an to provided headwinds basis operating compared $XX XX.X% expenses. GAAP headwinds basis third XXX earnings per undrawn net other currency. price other allocation $XXX.X discipline dividend sale dividend and year, unfavorable by top-of-the-funnel times. prior we of and to million net productivity year the operational last partly and our hedge and payout of lower We promo a share of basis $XXX.X activation to Adjusted million basis the XXX million capital points. increased delever declared quarter. shareholders priority and reallocating revolver $XX.X were XX.X% months realized offset in volume debt share of with $XXX.X we only

year. year basis XX from improvement XXX for gross our EBITDA XXXX. X% full the sales to adjusted outlook strong also points fiscal impact over margin to our With with represents outlook. Now we growth our no now approximately raising outlook financial be expect our are EPS. to-date, This performance currency. organic expected adjusted year and of basis accretion full We a We're net updating turning both for point previous for

the in by capacity negative productivity of impact be improved offset stronger we Our utilization. increased easing levels FX by of effect has points gross and basis expect margin partially of expansion QX continued lower outlook the approximately promotional for and gains as XX to

now $XXX per today's EBITDA Adjusted increase be of contemplated, Our approximately previously outlook for XX% now EPS approximately announcement. to a an $X for XX% than headwinds SG&A reflects share year Adjusted year-over-year estimated currency is inclusive share, expected million. higher at be approximately to anticipated of impact $X.XX expense the of reflecting is now organizational currency. constant per or full

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

Operator

Chris now from Fargo the question Wells first We begin with question-and-answer. [Operator And will Carey comes Instructions] Securities. the today

Christopher Carey

seen specifically think organic margin type just sales backdrop. some of I own of 'XX, given organization, things you've perhaps making place do innovation. and the can wanted achievable, perhaps to some to other refocusing of ask think of need specifically more being about Clearly, on may can to that sales and top fiscal investments some in outcome durability growth, visibility year-to-date? to strength by of that specifically you on Shave driven the line. Care I in Feminine organic talk and put you order make to get But again pricing, some your that start about toward in the loan and changes you're is glance that we going do you as to the you

Daniel Sullivan

I'll about the Dan. let framing-out some America specifically start Rod Chris, kind by North of I'll implications just talk we drivers and it's about how growth to-date, think more of and there.

be slightly important that, almost of to with We've X% internationally America This and to a XX-XX I'll results sales seen now from couple international. a international, actually volume. better split separate North and of year closer of years than growth. with X%-ish it's will start organic price think I

just all really drive portfolio, both seeing ground. execution about the leadership strengthening the there and levers then we've the changes made on growth. So good about that's And about investing you're innovation in

both volume and there there think is And so price. healthy with a profile I

you rely in the to on becomes it. think And You're to I right. see already to and good those harder role feel really volume. price international, starting of and play-out get dynamics the have we're about Eventually,

I think alone we really different in to as future. As think look have you true the to North categories, and this is QX, look the to let we at particularly America,

in We Care, of a in growth certainly, and launch and QX bit is sun here are Care a which contemplating reflection the Carefree, the but Sun volume of in the stronger year. here of in QX scaling Fem a season delayed, on back-end now

think And wouldn't it be so as be volume that, year, to price. about lead business, in say opportunities is as brands can the saw yes, take they'll and with price. strong we will at they we that they But the strong have I and where we markets core now. surgical, aren't there will this selective, presence be means

that you Europe, Sun. Mexico in that that in saw Japan, saw in saw you You in

I to there are So there to and think America Rod pause continue about balance. I'll innovation. North opportunities talk I'll let more

Rod Little

fourth year margin are We're accelerating performance. finish to towards we within We've growth the the that look, our consecutive margin about really changes XXXX gross positive today announced with so gross inflecting company. the got line. going of our now back and profile Chris, heading here leadership top on

we way truly here these we're do can accretion done in coming where even market supply I we line So to haven't in up disruptive Dan's an sales significant think do perspective, with to positioned faster, inputs that sales innovation, high drive that, margin. unlocks from company. better our I the comes, to progress commercial delivery, with position performing, planning, the a leadership from not become top and work line. But things operations the margin together job bring and our and of a teams really only uniquely in want this overall and execution. in strength accelerating more to bring we to we changes at our And a accelerate and over-time to we're time the tightening our my gross in that from with making better think,

we're about how that's it. thinking So

prepared think to confident XXXX. holds top to and bottom what we're still as 'XX both we and forward deliver and I that I to work algorithm look look we're As line, our beyond, that's on to

Daniel Sullivan

Operator, next question, please.

Operator

Grom Peter UBS. with from comes That

Bryan Adams

on Adams is This Bryan for Grom. Peter

So some and to expectations versus love line the in comps. of rate know in XQ XQ, just color growth year, I Shave particularly, I'd growth saw implying just Sun of kind in it's Skin, despite but in for get to we of a fem and Care. in pretty how care And what return similar updated think Sun the at and given thinking I on in top Shave the the you're about the easier growth comparisons, XQ looking you some particularly across mentioned growth you're some

Daniel Sullivan

looking You're XQ. right. We're X% is similar to which at about a growth XQ, in

path different. is I think the there

are in We certainly anticipating Sun. performance strong continued U.S.

and and XQ. Care last We played in our how growth Sun out business quarter. season double-digit in on had have XQ a the profile the Remember, year, we the it around choppiness

so shipment we to the category and still mid that on grow a single season. high the digits to the level bit of enter final quarter as of cycling a And expecting here

what in seen. we mid-single we Sun, which is down, on Grooming slightly profile with have have with growth digits, seen, double-digit Shave So what line in line

inventory, second have would a single-digit that. the Care, that seen shelf Fem comes think reset new XQ. where now on perfect largely execution a through in challenges, have challenges, candidly, we that you we We're coming-off growth I declines in bit anticipate low brand launching storm cycled buy-down And the the point platform. now against of through inflection the of

finish start Care. weeks XX this shelf year Just on Fem point, resets everyone give across to average a took to about data

So a beyond is that. the delays here incurred We're we meaningful. new bringing we're that brand were to shelf

for expectations what U.S. with biggest forecast replenishments the here some full declines July Fem were month, quarter. have important our the happening. but It's to seasonal July. last growth on profile to comment single-digit seen. The on I'll activate, now to feel just scale-up, good a the underpins have for ultimately Now obviously. July That quarter. across is low is an for everyone you we line in versus in and Shipments add that we Edgewell had our our month about of point Care the

feel There's a for in how off played in July very to the solidifying about terms work So good do XQ. to more quarter, good but the base start out. obviously has of

Bryan Adams

just more X on quick profitability. one

now kind it's had basis time, XXX of volume points think and over quarters gross straight I X and of here as there. over margin that of even profitability growth fluctuate you've

you to of year, kind drive too before level about is level the out at kind to much, trying determined? horse like, are the productivity this XXXX next this that point put not about or but looking is to talk of ability to So and the starting cart how a be thinking fair

Daniel Sullivan

a Yeah, good question. it's

I continue think the we actually continue X basis question, do as down forward a coming on cost this how and over-deliver here us year next good Rod might this be and tailwinds is that there points we said earlier, COGS proxy. team's Look, And about and and a double we what proxy be that. Operator, generating sort productivity said way good when pretty in for will we we've that XXX a basis to is of generate out productivity that revenue discipline to revenue price, need might over-deliver, meaningful, of management unit combination more bears out to dry The that. go think really of XXX management, good is continue There please. that the we'll ability strength is a years economics their to to focus, certainly price I in over-deliver. and business years when savings significant. good and productivity, business. will is surprise want and through are powder the execute point as to combination really, But think of of XXX good

Operator

with Raymond Olivia That comes James. Tong from

Olivia Tong Cheang

profile of the your with dealing next at least and about profile the what America, macro backdrop ask incremental right a of challenges, and head perspective, you that about we're given to of the some that thinking forward potentially North wanted you're now look from how I person?

Chris Gough

question. please had hearing little Could Chris. is We this muffled. bit you. Olivia, a It's difficulty repeat you the

Olivia Tong Cheang

about that. this Is Sorry better?

Chris Gough

Yes, okay.

Olivia Tong Cheang

macro perspective, next how bit on of of you're America, just from thinking volatility Great. of My profile understanding potentially next person. a better little question especially your for looking you're that a what about in more was a considering head the North

Rod Little

sales were QX you America. going North thought I of to

most advantage, a All I'm have world it's the a scale in things here are North the space. we will. home-field if competitive happen home-base that here new the you and from difficult players Look, glad American perspective, market and So in confirmed. big our the

not we're big the also nascent disruptor small player. It's the historically. scale We're startup. So not the

we And to so we operate that. said disruptor have. leverage of in scale need before, play the and like where middle we more the We've

commercial operate I'm we've more as as team to we future, the brand a leader, disruptor. started we with like which is with great in equally have underway confident that -- next search marketing who and North can building someone look and so execution America place intent we to can balance are And already in the My more a got very for, it's to well. that

that with categories with we performance. our more faster to We When to need the in Shave, little our system, like My And match need a change needs to and position is demand we accelerate it planning, Shave particularly the back have move execution, on challenged to become going supply at something very strong we be We flawless challenged. commercial to do. everything in goal moment, is our we have. that Wet that. has

laser go execution. better we can if Equally, and processes the it couple do getting execution. do so with consumer it progress with we're we're to where over to all out this and more happy of on in be what focused, where mode wants company delight we're years. the now performance profile deliver of we've our faster is and towards outstanding And to going anything, with last roadblocks lean very made, delivered we're the the the unhappy a happy consumer Again, balanced, to the with we've commercial very in with

hitting very us of started a to have very has last the as it. done and a all X So done Eric lot we things. the He But has think to right ingredients words was there, pandemic job do for it's lot I nice good do complicated the that. of over a years.

a So leader very, the strength commercially this towards perspective to time, pivot a from consumer-oriented a position again, is from corporate who's savvy. of very

Olivia Tong Cheang

then pretty will QX. obviously, be in on mentioned up change the it since that like, me magnitude you QX that And promotion heightened sounds of sales, on you set

promotion raised savings, in terms guide upping plan head that So cost only QX, as like the we your you little the sales confidence as well? sounds 'XX of on as -- think in but you could we go but profit despite it very good into also substantially the into just of as level pretty delivering terms in the bit fiscal not talk of next about -- a sound about challenges, on level the you you

Rod Little

look good Olivia, We've confident out I very to guidance QX, Yeah, we it. we've as got sight with to think of there. the line put we're

lines. we and live Dan spend As on what have sales got know some mentioned, of we the to we

$X on call think to the contemplated level point. promotional think so guide. will in And as take levels let Dan a target I tell to the to the is to guide promotional summary competitive prudent be talk market you, spend. I'll or in the I we EPS spin required the it's

Daniel Sullivan

We got of profile, We've savings. a modeled That's it line in got a the We punch-line, you sight hit it the good good sight step-up of promotions. the it we've XQ. We've XQ. on margin unpack on line in Equally, well. Olivia. saw in productivity

profit picture what next the July to please. So in we with the Rod's emboldened for comfortable certainly had expected. Operator, think quarter see solid really, summarize and point, in as what really a fourth I line by question, overall we

Operator

Mohsenian Dara question next the And from Morgan Stanley. with comes

Dara Mohsenian

my end. on things X

in levels, changes. from there focus That's then anything down focus you was last second, pre-COVID-XX. there since front? And is incremental as changes, result general a But you it's seeing that a call. I management about and greater organization as odds as those in think yielding down marketing of earlier the discussed in industry. from With is know year, the at on on year-to-date, down productivity just the we're what A&Ps peers expect it's should we a it

you it is re-boost with How Are looking and do today? where the after levels? how of of voice if couple levels you that over marketing here, this share next year? just to you your comfortable need think So forward years about about you think

Rod Little

let on and and piece. then start changes and A&P focus take the the levels I'll then Dan marketing leadership

are commands changes, a view, strength being my a take us the In With earlier, to next a done, I little objective. simple high-performing to from a in as the terms, truly the higher that's leadership of level bit position company ultimately of that multiple. indicated

that, to And X there's so that. elements with

The first element is around sales growth acceleration and line driving faster organic top sales.

you been that the been continue I that if and pretty out. consistent, to at we've X of accelerate end be on We and even on years do the over-time, to think algorithm and CAGR last top take the want we've average, algorithm.

So North company the pool profit unlocking about is all and my this capabilities company. me of in this it's is of more American which the market, more my personally putting innovation focus our focus putting me the and on battleground it's the on and innovation

be our bandwidth in and We going To with leadership faster is to ultimate of room international like to and Dan G&A have. There's do ability ability is I the that what So it Dan for years, the Fran to We'll there's really priority. implied if any importantly, don't is supply to gross even look And steps Japan the spend. do cost complete nothing to I a into world becoming they're unlock higher a our the think more me there. give that, time to We're G&A that, do more the margin up around very give to We capacity Dan go Dan remain priority. me stepping and hope performance. that. rest efficient longer we She's stepping have. up, excited up efficient. the to talented into to going the I for the report chain to we unlock to very, energy capacity structure company. contemplate they're no programs, very to and takes been more report me, and after China play We'll have on always and of with with accretion, continue organization remain but and big example. at our like and from productivity super away CFO will to the us then structure trim COGS X gives us slide

Daniel Sullivan

and questions the I us there's are the to all compete Yeah. behind we There's and related, look, you Dara Rod the us ones and And to part A&P, look to after. to will there's able we're to in then to think a But better about that. promo. these right? want What points rate margin we say sale. promo compete finish spend, want at the we to are I this more evaluate more quarter, of line. third business. can't you It's on execution. aspects simply help balance at of continue think get is Rod's horsepower A&P asking point XX% would we we the if do right. It that not trade trade would heard powder We is what doing and going to in us of XX accelerate is And it because as putting point, was did that are we we we not We've want requires. of spend value, reason faster and to dry more gross did all what out all into about you're more and A&P invest got basis and retail almost the good unlock a market whatever the We more we're innovation, allocate quarter, dry there's that against want of light by are A&P. be the say business changes help place puts R&D, spend powder directly want

will invest trade next prepared it and and equity, be in will be brand both. Operator, be have question, to sometimes please. and we promotion, it Sometimes to investment

Operator

does question next the Canaccord Susan from And Genuity. come Anderson with Instructions] [Operator

Susan Anderson

the Are rolling off they just I It U.S. pricing both prices. that should think, how is also just I'm mean, I think channel, higher being I on a drug to seeing lowering guess And the of just impact you year mentioned you curious, the we the Fourth I'm versus going the I Target, announced that margin? I think promotion. is the to much of promotional maybe curious also, and like at in worst this how looks activity. on guidance. follow-up be is that guess then kind about get the quarter gross about Walmart to flattish. --

Daniel Sullivan

is the [indiscernible]. display, largely It pronounced, promotional it those all we and It It That's accounts. it Target in and also in in the it disproportionately certainly it most compete. where categories. we're in Shave in Walmart. higher in in is mean of I feature to and which you're is categories board. Look, seeing is value Women's Care across activity, drug incremental mass, BOGO but is and is it in driving and Fem activity, it's seeing terms

obviously depth seeing. And help So and own that. to a we're that issue we're it drive spend our reallocating a is breadth

the of right. the fourth quarter terms absolutely margin profile, you're In and

tailwinds that intensity. We basically not we are driven pricing going margin the the in we're And play in to are fact see our lapping promotional in now here, is and and that's been quarter. mostly management any price by the that in markets, in through international revenue stepping-up

good by healthy exchange utilization negative forward. for wouldn't discussion being being you're driven I still that's for say still margin margin the by gains all price and the at savings inflation, look capacity mix. XXXX, right, points price QX, are the roll we contemplate productivity. plays before another that that's XX and the gains So we a in But driven going in We'll is around quarter, day. all as see us in some offsets basis with a productivity proxy

Susan Anderson

product want talk you And how of that that brands term? you kind a brands as, of that adds you longer innovation? to disruptor, be that brands about think with that really you do to portfolio Billie such -- differentiation you it of say, think the new are or mentioned could just if kind I tap expect you guess portfolio? I new just Do have that do on need you maybe thinking can you the and that do more like then you the to or any now you more newness guess, kind is

Rod Little

we portfolio. our I Look, think like

company being have at few being We successful, it's the ago it done. founders And that and from barriers with think the how and integrated came started think the shape company, was helping years We still have of part we've much into story X those cases than with how fast. we brands the we along looks better, stronger the learned acquisitions much friends acquisitions the all as and look us growth company, have think move not it's a all and today, X development, and are much, down speed of in friendly about we company here. breaking what us to with brand about in I the like still

I growth happy grow. us we given And we're level very that brands But them, and hard in And and or runs we'll proactively a a over-time deploy would so portfolio to have. direct-to-consumer runs our problem. addressing our team can saying, we create play give things with at go value with, like halo acquire look, portfolio. about capability I our within the I'll an has think omnichannel the opportunity of just not the high to We're the don't develop like that platform. we with I also we to different course, there's activating on more world. direct-to-consumer of one up an but have end disruptor very, the We that. And brands a to set bar example, as you, holes portfolio We think just the faster Billie as We ability have brands we integrate lots looking we we whole company we potentially look in and of if have. enhance portfolio feel think like like we towards capital builds. to the that room Equally, in very very the company capability with categories broader portfolio. even the come being

areas. it as benefits is as is many the we're brand this So much seeing about in from capability that and many, portfolio,

So I helps. hope that

Susan Anderson

grow towards just you've flock helpful. really label there? on seen or value if seeing just X just kind more of kind add more. I'm are I the maybe That's If given that consumers curious at of all could you razors the private Yeah. that area

Rod Little

stable. relatively seeing we're shares think be private label I overall razor

would label what we Our private do. business It's it expected good. doing is

that's say, from share the architected winning. in other I points brands up well are And price stable. example, the are share here, happening, and XXX period-on-period. thing last well for And positioned, so in that the Billie, think would quarter growing I in basis value point

in So only well private label. are it's environment. not It's architected that brands this value benefiting

Daniel Sullivan

question, please. next Operator,

Operator

CEO Rod the Actually, time, present there Little, are for would at to closing floor no turn any comments. like I questions the to

Rod Little

investment. wrap talking you. continued you Thank a for to you for guide your fiscal we We give ahead. the as and your year to forward interest and quarter all next time look Thank what's today,

Operator

Thank you.

conference now mentioned, Thank As attending for presentation. has the concluded. today's you

now may lines. your You disconnect

Edgewell Personal Care (EPC) 6 Aug 242024 Q3 Earnings call transcript