DSEY - Earnings call transcript Q3 2021

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Operator

Greetings, and welcome to Diversey Holdings Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded. I would now like to turn this conference over to your host, Mr. Relations. Investor Graver, Grant sir. you, Thank

may begin your presentation. You

Grant Graver

you. conference call. everyone, CEO; Todd welcome Phil and quarter third and CFO. our Diversey's to Herndon, With our Thank Wieland, Hello, me are today

Please These results to supplemental Diversey's and projected. of our the we'll release with earnings this in On measures. forward-looking available section differ and Please the most are accompanying the to and the teleconference actual Factors filings SEC. a I'm definition slides GAAP cautionary a over future these comparable SEC the associated are website And Our state Phil measures. to differ reference to this from to call, the statement that ir.diversey.com. materially now, at actual this reference Factors and material in happy Wieland. the and see call Risk estimates filings could our results on it are moment CEO, closely performance. will reconciliation cause with that under may read slides include take on our we statements materials, for the described which could those non-GAAP pass certain

Phil Wieland

morning quarter good our and I'm Grant, report everybody. another you, Thank plan. to of happy against progress strong to strategic

key Let five update me you quarter. on headlines the for the

wins, rest and innovation the accounts share our was the water prior and gain strong to Firstly, investments of institutional, SMB, with business over QX fueled rates and high encouraging, very strong institutional pricing, dividends. XXXX, confident world. by a be This for of business in introduction position the new In we some we XXXX. the excellence, COVID paying showing segments. infrastructure, slower win year. Whilst, of plus the our reopening into and top-line X commercial of this and in XXXX impacts in we in world growth good momentum continues a markets. pre-pandemic our our improving remaining as a strong see in remain base around highlights recovery. treatment global the SMB levels, our growth both North in returning one America from is Europe, recovery the progress In during And are Page and the customers, to levers head recovery of be in of recovery full our as frustrate presentation our will course

than XXXX. the We the see continue prevention with doubled on significantly XXXX, to market is with of well still we year-to-date and of a experienced levels. a above pre-pandemic This seen more segment many has normalization ahead but versus in increase infection lower XXXX, basis, growth others from countries XXXX slightly strong

America we we in drive to overall it’s we the hygiene long-term judge as differentiated new business And penetration receptivity given will exact we're by trends XXXX. deepen North acceleration and Although, to our environment, expand and growth. and the difficult growth well-positioned for portfolio, market of we believe are into increased standards prevention infection increasingly encouraged geographies. into in complexity In our summary, QX, in

result the year. as cost of Pricing through seen quarter element is key pricing. critical for the us second build of The a around remains we've that inflation the

percent growth fourth expect the for good pricing digit to into quarter. momentum to actions in roughly fourth up quarter realized pricing pricing and third in from X% top-line reach continue and We've We the mid-single quarter, step the XXXX. have and year-to-date,

to into of We expect this increased level continue pricing XXXX.

when in signaled to we QX, margin, in reported. are would, a as challenging we third Diversey pleased QX environment, we continues in and margins well to The execute we from XX.X% EBITDA XX.X% increased to QX have last in element, to XX.X%

proposition. target of consistent provides confidence customer Our value around and now, quarters Number several solid improvement longer-term for margin has our and four, been XX%.

our and be to we continue finally, And number drive customer excited by share, promoter leverage than fragmented acquisition we The that five, recently ability acquisition retention, closed serve. to never we the we long-term In customer stronger. with Based to operating continue markets and record in ever M&A. very a has strategy take on against we're in quarter. the very And large execute we pipeline our proposition opportunities, net Canada. to-date, we've winning encouraged and scores. high a with in pipeline about value progress M&A, our of closed stronger remain Tasman Australia We been that in QX, deal last our announced confident

filed annual progress on done than We we've which annually highlight report, ESG. for our more to like sustainability I'd recently Now, XX-years.

resetting However, and this strategy our goals. we're year,

enhanced is commonly sustaining it our used strategy on today. caring X, ESG follows good Protect, will for sustainability and framework Sustain, new protecting approach. out set and the the called be society, It's environment, Our the Page of Care, focus governance

We and our history, are our we'll It's in the to changed. deeply of hasn't committed to way It the ambitious of to defines annually. report proud like are, progress current challenges. Throughout goals global the commitment our our they're state area, culture in am we measure company. responding who on this how sustainability teams and to embedded we global also and I'd stand for. I what for the

managing to managing working fast-changing products. are R&D our tirelessly our and issues, material Our reformulate supply procurement And difficult raw are chain a teams landscape. are teams freight teams,

deliver is impact position All exceptional is handled customer truly and XXXX. at rooted This deep of time being a teams. our a behavior, the well on very customers, which has customer us fantastic a Diversey’s putting circumstances. our of limiting driven, is aimed facing great this by to been in

Finally, organic cash a expand rate of generate to is and M&A actions, through cost higher top-line financial we X%. market will confident growth. very next detail. To through market medium-term cleaning that Herndon, Todd to the top-line results to of and algorithm momentum with year with margins in M&A, fuel great you'll effective more add the management that, reopenings, enter and We're due pipeline investments our QX our grow And over and to XX%, and pass ongoing to price than post-pandemic X% to to share growth gains, delever in faster to robust remember that standards, to opportunities. CFO, let discuss prevention me market inflation our of infection significant

Todd Herndon

Phil. Thanks,

with with X.X% summary year me Page consolidated QX down but of start our by increased prior increasing on net versus reported, a XX, versus expected, as results. Let million, sales $XX.X quarter-over-quarter were as X.X% QX. or sales

institutional Phil significant win around recovery recovery reopenings progressing as base business And the well. of customers ahead world. to we of progress with mentioned, new us, As is continue the our still

and XXXX, sectors, much base level recovery with geographies in such hospitality services seen developing that infection as on revenue, year. with continues adjusted we in happy QX experienced tough versus in Consolidated as above win with the business strong F&B we despite prevention pressures. and declined while revenue X.X% to and last progress EBITDA we're Institutional recover. continued developed to business strong to very of than as starting chain the our QX Page more was are the increased and QX XXXX, is margins. in the for more to the Our institutional. offset geographies new the improving On supply facility more is inflationary line X.X% come, of and comp grow XX, segments Overall, margins, making by let's with recovery customers We've XXXX. review

and prevention of one-time and investments regions. infection new is environment, supply XXXX We also grow well-positioned revenue EBITDA challenging chain within with the is institutional Even we were COVID, products through and XXXX, In programs raw material and business in with has recovered both to our efficiency of stabilizing and to increase XXXX our and adjusted QX, over operational effects lower believe our levels. able to pre-COVID after pricing. revenue margin X.X%

into at growth combination customer of the wins, business reopenings, drive the where inflection further now will chain point QX, stronger increased disruption. retention, in and XXXX, absent quarter-over-quarter also supply are new further hygiene intensity continued and We

from prevention XX.X% and our infection disinfectants, rates, the than focus food environment and XX% our EBITDA XX, down on that revenue great compromising let's for accelerated better patented where to solutions product impressive quickly technology. a moving rated like XXXX. disinfectant, highlight period, also in to by Leapfrog safety important peroxide as infection the growth is which cost hydrogen lower hazard was PP&E. no Newsweek just as adjusted our other our more SMB, It's It's customers oxygen and review It's without over requires Before be to but Tb, Tb feedback Oxivir prevention our contains the the friendly hospital-grade and warning, one to or infection level lowest Group a it QX improvement. environmentally given On of the best employee breaking is scale our Page segment, of safety. recognized, continued I'd beverage Oxivir rated XXXX. by our in that products, water. More compared was and grew to

of strong continued up segment by X% As our momentum revenue new treatment. result, a margin comparing in Exhibiting by compared wins and along points XX.X%, a experiencing with increasing ended which the world, we're around quarter F&B XX.X%. EBITDA closing was XXXX, our water business XXX grew XXXX. the to When to expanded traction basis adjusted with the

metal. impact. QX an uses to of opportunity which [indiscernible] XXXX. presents QX like which XXXX On water copper lameness. Deosan XX, much farm treatments HH+ soluble, upsell SMB This agricultural institutional is animals. the to use in environmentally global financial I've is cattle discussed heavy prevent our help the estimated from repair see the a that of already One HH+, for environmental business. hoofs, suffer copper movements. sustainable is damaging and a solution F&B is therefore our which you'll XX% nitrate, and lameness to to highlight It's I'd bridge a great innovations lower has from across and ruminant Potential footbath Page sulfate

turn Beginning cash and in million we million flow for balance with from small other full of QX, change cash XXXX. in no note during flow. to impact not Page cash FX and an on QX we It had the You'll taxes. quarter, increasing the M&A. free in had rate $X of cash flow, had change item way of the we that, QX quarter, me income and free outflow year our also the in had on One flow favorable has adjusted XXXX a to compared With effect the XX. our outlook does account benefit on $XX liquidity ETR to see let a sheet,

Within the which the $X around have cash payments, is $XX of were QX the purchase million $XX higher Tasman Chemicals, million refinancing. and million outflow interest for accelerated XXXX

recent Our our and XXXX. maturities loan to out interest and XXXX rates lowered refinancing the extended

The times. floating we interest increase our interest step down a to low cost the of net the a expense $XX relatively rate overall and upon trigger of savings debt at we which when remain more million, of leverage less than than achieving ratio rates constant, X.X interest $XX anticipate is Assuming of could debt annual X%. million rate,

have We asset, million over Phil in, which operate a as strong of noted fragmented market M&A profile view available given the as strong with we $XXX pipeline, a liquidity robust and earlier. very we a quarter-end,

new in times investment X.XX improves, investments X.XX this to of increase X.X and to Our M&A, we In chain expect cash million leverage adjusted in EBITDA $XX roughly of net last by refinancing M&A net at driven as than to QX, remained provision in some believe quarter. EBITDA investment. compared by and announced deliver our quarter. $XX The our stable we'll for strategic LTM million significant a of fees. Kentucky generate supply strategic inclusive QX, in debt more flow of free times We year-end facility we the was in our times

let conclude So, with on our comments general some me outlook.

improve be and we markets Our continue year-on-year business expected supply business positive as QX. chain that further Absent is won year. a and comp disruption, over to last the reopen, new implement to continues in to we've

I'll higher For standards. we but than likely margin, in pass during expect it experienced demand XXXX. summary. we which sales, in accelerating Phil, is we're EBITDA back XXXX future EBITDA pandemic, infection much And into quarter, to to seeing with growth adjusted levels, a closing than as and that, pre-pandemic the last lower In for and adjusted progressive mentioned due to the momentum elevated continue to continue prevention, in what quarter, still quarter-over-quarter hygiene the fourth

Phil Wieland

Thanks, Todd.

now, will an markets cleaning with and to a pandemic, prevention Operator, to elevated combat to standards are We're to a we as to significant pricing beyond, top-line, continue due cleaning and amidst momentum growth well-positioned you begin I funnel great building As session? leading reopen. hygiene, XXXX aggressive and your the acquisitions. for provider please And inflation, strong forward improving the look of infection of question-and-answer capture questions. solutions

Operator

Instructions] [Operator Andrews Vincent At the we'll a question-and-answer Morgan this Stanley. session. of conducting first Our be line question time, comes from with

question. with You may your proceed

Vincent Andrews

Good Hi, everyone. thank morning, you.

just bit that of price little the maybe, us will a expect. the we wondering to on if what fourth sense little just top-line quarter, type look And a the more into give in growth how of as trend? you of Just cost and could fourth trade-off a thought bit quarter more

Phil Wieland

Phil Yeah. Vincent, question, here. thanks for the

let me with So, of part with price the question. start the cost the

we've the price. think period well. as price likely that look, going QX, inflation on our costs like talked our We in sort in X%-ish step cost extractions of are as it's step a going So X% about lot But to we is seen digits of up, sort of also mid-single there. in going up about to quite more today,

significant margins. But inflation very not layers managing think against the do going we we're to cost putting further that accelerate through. more to price with our So see that in necessarily it's going some accretion we're

look, On somewhere Todd fourth as $XX that will see million in I much think be quarter. improvement as the may in $XX delivering just We've million quarter. we been the as It the not growth, fourth some to mentioned, like top-line, quarter. each

some it's reopening necessarily of there's we've a vaccination rates of of amount in be that going in the know, with lower of to As QX versus happening, reopening more not huge period. improving a countries not are got those that you obvious QX,

I'd get that margin not better, top-line huge hope summary, say, I in So, continuing forward. steps both necessarily but helps. to and

Vincent Andrews

prevention, good, run that plus maybe or we're anticipated, we'll this it sort it's indeed we originally just to this at No, sort or once normalize infection about do rate very now rate, going But, the minus? bounce than a is lap talking higher stop this level helpful. going that's of is sort you And a where to is and it. at think around of of you then on

Phil Wieland

hard sure it, as real Well, want because at performance. product just to there's just spread look different honestly, month-to-month, our look we we and I some get To because to about question, to it's talking core I'm so your not the stop of roadmap. of as countries, say, from diversity

more infection we've certainly again, be So see a it's look, a there that it's to reopened. amount true going really normalization I of offices bit to full picture. so whether be. there's could globally reasonable prevention far, seen certainly to get hard that, come, And not and yet But, we think until a

things best So not a very this at still we complete answer, but are can unfolding. do probably as stage, the

Vincent Andrews

I appreciate you for Thank very much that. comments. your

Operator

question the Goldman next Our from comes with line Sachs. of George Tong

proceed may with You your question.

George Tong

dive economy? you're Hi, supplies deeper seeing or in chain the delays the impact to thanks. disruptions I or from seeing seeing you impact or chain not of morning. Good pricing difficulty we're some Are impact into across whether seeing wanted cost any from that supply or supply obtaining disruptions.

Phil Wieland

challenges. George, challenge. a to raw out material just see monthly, challenges, that the difficult. daily, labor know, I this short is tough transportation do a do that We question different answer anyone yes. as world. is weekly, It's think assuming you It's to is, into says ongoing We're probably really XXXX. going continue living in well, there. otherwise, We And see

we on of whilst our strategic is we extremely we are focused before, elements plan on that focusing talked So, this about managing. are something all

to I understate, deal challenge. think, smaller want competitors. this don't we're say, a looking to some this positive, with versus for But if I was well a I'd of is our I equipped

going anytime think I doing well, not but away we're it's soon.

George Tong

some elongation on chain those chain impact either follow-up margin what have top-line that of a so a further Okay. mitigate timeframe the of Maybe to kind bit. on performance? disruptions? you And, of or just What could disruptions, disruptions the new have supply point risks supply a of little that are strategies

Phil Wieland

Yeah.

doing imagine. So as a lot look, we're you'd

the satisfying R&D where working So the on team for on SKU that of products, we're fast reducing customers. materials make impact got sure range more a available, that as that materials are just making example, as outside our a use We're readily to as have our into to on flexibly we can, it possible, are customers going where the registered that doesn't products. can the available make and possible. whole reformulations also focusing it range all as of significant we've getting we the sure Really, sure

really pretty here with part across chain. well. the we're But actually the some So, focusing every as we're supply being of of solutions creative

George Tong

helpful. it. Thank you. Got Very

Operator

Our next question comes from the Andy with line Wittmann of Baird.

You may proceed with your question.

Andy Wittmann

kind Okay. my particular. stuck in fairly question. would positive. margins ask taking Thanks and think, beverage food there, about thought to for I talk the as me segment I I about out or of The being

could growth wondering, the you Phil, you if for top-line had I margin are Todd, Obviously, reasons was expansion? So the talk what about or here. decent

So those profile pricing, there but of leveraged, the And that expected factors that that? that is of the realized of quarter? you margin occur? talk to can unique you Basically about some there be have think sustainability other to driving was kind I the in to wouldn't mix, the are quarter asking, anything

Phil Wieland

Yeah, let that. take me

with leader start take by fairly positive. saying me our F&B issue Let would

think out that the well that momentum is look, year. won more he At the driving. But somewhat why year, of I heart rolled which doing he's have we've this business, winning this that F&B? more some than we we've been in are excited because about year it, last of is we

but at adding we're to nice margins. also that's the-top line, So winning

the So think I obviously additional volume us you're some that through, in itself And is suggesting. helpful. is leverage as giving

challenges. it's cost nice sustainable, immune say greater albeit, is it's it institutional. SMB to really from top-line than even As the in inflation to to for we're continue expect whether that certainly look to in think And these fair growth, is pressure not us certainly deliver some I

battle forward. to a slow little seen, a that that's bit, likely to we've continue will peak but margin be and accretion the it to going it's So, the probably going drive

Andy Wittmann

for That's that. you helpful. Thank

talk I to the outlook like new I my overall net of wanted follow-up basis. for in growth for terms of question, Just kind about a guess

You you wasn't things mentioned rates normal. more more getting certainly, on retention, I give high your are can any retention year, overall, if last lot of a there's don't there know But switching. detail like

that on high retention maybe productivity, wondering been sales And give of that, little of I'm a assess couple could from very have if we talk you Maybe sales a that subjectively kind force as new detail bit that commentary, pandemic. levels that we can if there's kind give so other So mentioned more of about well. could then, those times the kind has changed you just us depths you during that of realized the good. us

Phil Wieland

sure. Yeah,

retention, on bit So I'd losses. XX%, continued. can really of through. We no I we mean, any that think resulted from seen say which about top of XX%, a We've I talked of one off change. head, was material pushed my pricing really that's haven't

was price cut, to the a wouldn't. But, small we competitor of strong. examples remains that, prepared Our which retention take really like outside

business, new won of I’d terms pipeline a the despite also much got has say, In we've lot, stronger. fact our

hard right it's feel days, we've new global accounts early be momentum, it But, the a it's So, leadership very seems business. got got we I to there. direction. our can we to commercial to and in it's in lot on feel and say We've moving going. keep all give going predictions is, excellence, We've focused but

Andy Wittmann

very Thank you much.

Operator

Rodriguez comes from question line of Jefferies. next Our with the Edlain

proceed may your You question. with

Edlain Rodriguez

it you more challenging Thank trying institutional. a than most little Is of guys. get to F&B And cost talked the than where Good greater in Phil, you. push are price institutional? to price is about morning, there in? in pressure on that being you've the

Phil Wieland

price over can cost we is extent be is need the percentage so percentage because higher, way the increases that's to our margin. higher, maintain here to inflation job time, maintain our margin the Look, to only

the that what yes, to so prices F&B, So our need be And with. on higher in extent costs we're higher, are getting too. to that's the

Edlain Rodriguez

follow-up a to this going that, for price cost I lag on just the year, think inflation. And your clearly, still is

all do we going get of you As costs? into you how to to year, it's the recover next long like take kind think

Phil Wieland

is really we look, what because one, tough it's more coming. a how cost is don't Yeah, know much

through we So, when we could it inflation. of next going another were what's with to in summer, the have we cost course, of were sitting is quarter that were probably thinking see But we first in year. then, inflation wave the unfolded, passed fully of the

of take to really So happen with is that obviously then recover. to wave to another further But hard what's pressure. to pricing predict cost going going it's

we're the course, further through good, If inflation planning, right feel now XXXX. as it be we've are recovery, it's that, year get dollars in the have get we'll then margin we're got And through. although, costs We assuming of that certainly to that comes we therefore, before happens, going beyond price. going further the to we fully

Edlain Rodriguez

Thank you much. Okay. very

Operator

the Our from of Jeff with next question Morgan. comes JP line Zekauskas

You may proceed with your question.

Jeff Zekauskas

much. very Thanks

or protection infection so to think they are What going $XXX this revenues year? million I in were XXXX. be

Phil Wieland

out. infection to we tough prevention, Jeff, pricing, you I M&A at accurate if lay for has say, good, normalized, it's probably hard facts is plan water exactly things mean, what an say. down we treatment, versus how expected. what in ‘XX to lower say than than bit impossible further I unfolding happens we back step as to a faster to would stage, expected would beyond, that can, it Overall, say. update out I we prevention panning come that But, question. on the give and really expected, it's you have when bit how we we'll little are But, new answer a this that infection little business,

Jeff Zekauskas

go What infection order to expect revenue of decrease? revenue to And you when the up? protection like, magnitude, begin do what's in the quarterly

Phil Wieland

reductions we've And of little made probably those little we'll we'll first that see part start into America, of prevention grow, think see the think And think outside next more. flatten to to And normalization, bit think infection prevention grow I bit So, more will year. and accelerating year. a I then think out. then starting a into QX certainly see infection I we'll to further we'll I I North in investments start this see the globally,

let's hand is, certainly those what's in with And the line is hand as picks the markets that. predict because what markets happening developing world to hard as in sanitizer we're happens. that's thing reopen, seeing other with see up The what reopen, sanitizer,

Jeff Zekauskas

Thanks so much.

Operator

Our Roberts the of next question from comes John UBS. with line

proceed may question. with your You

John Roberts

Would you. any shares Thank part be of you primary expect on offerings? follow to any

Phil Wieland

John, this I question that can’t answer stage. at

I options but for right, to answer stage. are at clearly think me all this that tough it's

John Roberts

X, infection combined just institutional institutional that Okay. excluding Slide excluding prevention? prevention? On the and infection is is F&B that Or

Phil Wieland

That's good John. institutional, point. Yeah,

COVID I more single the was So in mentioned the that millions. impact low some. did We modest. But, have double digit to was

represents not that page really So material. This institutional.

John Roberts

Thank you.

Operator

next comes line of Bisbee America. Bank with of question Gary Our from the

You may with question. proceed your

Gary Bisbee

you're I you're I what good Hey, how if job on guess, process. guess, strategies, you give just color morning. out this the some future forward on I'm you've headwinds, IPO can of a them things, the doing the first year? relative all of question that? the of there, know you strategies here a about medium-term opportunity pricing faster the drivers told called number But into the dynamic cost obviously, despite gas wondering pre-IPO the are from in just And certainly expansion maybe of really that I help. the story on they how stepped on you're and have how nice understand in you given those margins, some to and some it thinking key delivering Thanks. can such that margin pulling process. these

Phil Wieland

up? one want you to that Todd, pick Sure. do

Todd Herndon

I Sure. do that. can

an different be year The and our four would we internally. IPO. driving in savings. we on were as We're or I look how areas There we control them, or the mentioned, forward margin portfolio, it program, further any of because raw not the on functional which three to still to some the so different at portfolio of harmonize our can effectiveness generating think outlook improve was of us see materials, of in current continued doing has composition at Kentucky period. margin in the XXXX clearly that work announced with. we look things areas with progress to helped the cost particular, control. are respect call in opportunity more establishment a we The in on it that now making our operational challenges of on. as cost at America, which deliver accelerate we to going than the for as important lease that opportunity we those in to and significant potentially it North focused We've we're acquisition at, the we're component earnings aggregate a focus of QX that procurements go actually is are we we demand products We whether significant we this said looking that supply of related a our faster, footprint time program market was the improvement our opportunity synergies, that G&A ways

an what reach of that target. to that on the a And one so, five us to plan opportunity in our key as we're all long-term last viewed improvement in of that work with continuous IPO our we for working behaviors Phil launched mid year, on is

that well with we're with job on we cost on doing the So good challenging that. the are we controlling control, pleased year, base. a and where we're And, within the executing believe company this we what environment pretty

would company we I in anticipate XXXX. leverage fully hope would to that to that we've growth XXXX, fixed just outlook coming our think with our next and as that growth costs during thing can a become say, year we over time, we forward other the The more some COVID efficient

Gary Bisbee

and past of Is use and of that's doing it, if In sell? you. or these there's get for And helpful update going? start of rollout global it's how products products? back AHP to just an I upgrade Or, in less is more helpful. it to people to on a give go easier aggressively the be challenge prevention, then infection extent to that? to Okay, that, worst like you the us what that question. you Can reopening more they're the the incentive to could add Thank change

Phil Wieland

Sure.

global the the selling we rollout, so right world right around of terms world. are in the now manufacturing So, and around

reopening, terms anything. not closed are buying that because mixed, of In clearly, it's businesses look, are

heavy a healthcare certainly true businesses opportunity. earlier. outside down on we are there's comes that places no product there's a both but opportunity, where the focus the America a bit other height trend in of So the of talked we're little when seeing that the the about It's COVID that’s and and And North first launched, with was that around normalization open, in world.

Gary Bisbee

just one rate in. expectation level does unchanged, was QX? could I in full tax Or a just The would year commentary, reasonable I quarter. much If said that lower? tax higher sneak be QX the likely one imply can you more the quick that but you think Thank might you. be it this set Okay. what

Todd Herndon

Yeah, landed it’s saying, Todd. is I take what with XX%. about let our I month ETR this, adjusted start nine me guess, would

of basis, XX QX on a we were our ETR. As on year-to-date at

the So ETR higher the in back-half year. a was expected of

originally take ETR over tax to higher change differential described our our accounting in While we XX-Qs, for rates into we the required in QX. and impact the we blend the QX expected full of

full changed. year view Our hasn't

We continue the at XX% adjusted expect full for to year XX% to land ETR.

So phasing it's quarterly really a comment.

Gary Bisbee

Great. Thank you.

Operator

Markets. Our Arun comes with the RBC Capital Viswanathan next line question from of

You may question. proceed with your

Arun Viswanathan

guess, question. for taking my morning. Good Great. questions. two I Thanks

persist guess, and some mainly given rationalization surcharge you'd to tightness on there? to So issues. what capacity, the that just impact I'm like the raw want into first mechanisms off about looks implement? chlorine side, ’XX, will that it logistical mitigate caustic, asking just there I you do just can and Are given there

we maybe address just yeah, that first. So, can Thanks.

Phil Wieland

right. absolutely you're Look, Yeah.

directly the certain lot of in sometimes example, to because into for There where one exists, get of us about. been raws the movement materials, surcharge customers going talked taking true a of the the these market. on And surcharge the business, what's the you contracts reflection to prices there's related mentioned, products, is and movement element our we faster anyway. are to it's also on in natural say some a with and fast. index, some index of being we've So, are a It's those particularly therefore to also underlying SMB in that

Arun Viswanathan

that year? Okay, of how then, could over think if leverage And next great. that. about should maybe how Thanks we evolves review Thanks. for kind you and just the

Phil Wieland

want Todd, one out? do that you to take

Todd Herndon

Yeah, take one. that I can

year. a equity free level would grow it we XXXX, M&A about With to also and will leverage increase over time. mid synergies, referenced. aspire, with that won't course, to our towards strong have in get as our to a acquisitions EBITDA. we the debt as X benefit on this forma which uptick importance were driven respect delever facility in reduce going generate do the times, the refinancing, profile savings M&A, post once long-term roughly require a Kentucky Our investment times which of of we we cash in million hasn't We flow communicated again, expect hit to to we in delevering able thought clearly today, we earlier to roughly and continue We XXXX how And debt leverage, do create to of expect was QX The understand is net of extend leverage on forward process funding addition think net that in level. those tuck-in they the in to out material following; pro to the lot $XX XXXX. and basis, and by we to cash in interest going, changed. QX, we towers and cash, further going value. our We're We delevering as but net to X.X delever that has the in focus

that's think about going leverage forward. we So, how

Arun Viswanathan

Thanks.

Operator

Mizuho. question comes Parkinson next of the from Our Christopher line with

You may question. proceed your with

Unidentified Analyst

on discuss And business, seeing on in gain if as Or the economies? in you're I was to market to and more that's morning. reopening Chris. of you. based, just opportunities opposed well for share, winning new economies, broad guess the as some as mature could more for most Thank wondering geographies? just wins, Good business I This the you regional a you're overall opportunities seeing you're is basis. if that [indiscernible] for the

Phil Wieland

around I Yeah, momentum across certainly seeing good America, most good we're and of progress think sure. Look, across the India. Europe, world, North

There have very a not I think areas now tough Southeast confident, reopening. early signs remained lockdown pretty been situation, and coming time. for a in and just is they've started because the out a tougher long of right ANZ, their lockdown. Asia we're of Australia's Asia, But, Southeast just sustained

get some really, more that's last to stuck we'll be of growth there. hopefully, story back couple of So over been able into quarters. the But the

Unidentified Analyst

little a from what for more demand just your a bit customers. sustainability. maybe kind there's big It discuss can sustainable a quick then, seems pool you mean, And sustained like on solutions I one should new mix in solutions? new going of to forward? about how those product And as gain of those think your to ability sustainable pipeline from terms we products, products well looks like share as

Phil Wieland

Yeah, in this we're is put we This place. on is really and we've I put big. starting to that about ESG new the mean, the big. Page X in how think plan pack,

ESG to and last how customers for a key as amount us to the really actually help, and the encouraging. in heartening just we of the asking really us heart partner XX-months, or is think their make six progress of strategy, and then coming seeing really at be can help I

save efforts XX-months I So, to some and to time water, think And driver this take probably of than we're time. particular. take is packaging ways some look, even of in going forward to take energy, going some it's redoubling ago. bigger these our really rollout time, But some be on before going an developments growth

Unidentified Analyst

you. Thank

Operator

we gentlemen, back like Phil turn for have closing and Mr. of call would to question-and-answer end reached Ladies to I today's this over session. Wieland remarks. the

Phil Wieland

look, we base really business on cost quarter back. pricing, you close our the that we're drive, and our as say and out coming on are just In that. we third Yeah, new summary, efficiency where and on on, I’d share the thank for and gains pleased M&A

in in growth top-line allied think and And some that starts we prevention. this We in in and seeing the as come revenue us we that feel as And the ‘XX, through, an as about in really good reopening we're world. have acceleration ongoing both to with out, rest and of We Europe our the about some head to that that M&A top-line see really margin. pack, going QX, in ‘XX. to of price share makes showed in into see infection we're particularly we rolls normalization then going talked

thank day. Have hope questions. we've a good you So attending. answered for your for look, Thanks I listening.

Operator

conference. today's concludes This

Enjoy lines this rest disconnect your may at You participation. your the time. of Thank day. you for your

Diversey (DSEY) 5 Nov 212021 Q3 Earnings call transcript