CHD - Earnings call transcript Q3 2019 | Church & Dwight Co., Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Church & Dwight Third Quarter 2019 Earnings Conference Call.

Before we begin, I have been asked to remind you that on this call the company's management may make forward-looking statements regarding, among other things, the company's financial objectives and forecasts. These statements are subject to risk and uncertainties and other factors that are described in detail in the company's SEC filings.

I would now like to introduce your host for today's call Mr. Matt Farrell, Chief Executive Officer of Church & Dwight. sir. ahead go Please

Matt Farrell

CFO, Good a Thanks quarter few the for Rick, I'll you. open finished, today. the up and joining I'll turn call our to over provide comments call Rick morning, Thank is for we'll everyone. questions. us then when Okay. on the

you base our growth. QX growth. margin gross tariff We for delivered in business XX.X% than EPS company. saw the adjusted and an as we exemption. due was outlook quarter expected release, higher And had $X.XX, expansion We by retroactive outstanding to exceeded X.X% sales the from organic $X.XX a our partially

the In grew organic U.S., X.X%. sales

are growing. categories Our

shares most promotional activity. power brands achieved our market of power our healthy or cases nine while market reducing majority by our brands And share. this of Our grew XX was in as held were evidenced grew share and

this grew We success Online continue to have sales the online trade. quarter. of class XX% in

compared online be We in number expect to year Amazon. many full one continued XXXX. XXXX exceed on sales to our brands And X% of power X% to

as which quarter formerly business Mexico, and excellent in Group, in Global another QX organic export our Germany X.X% Our international Markets The consumer were growth. to turned Australia, referred business. with our standouts we

the that sales driven QX new balances we growth Markets Group is growth. of existing grew that over markets has The years international Global outstanding of entering. the three by XX.X% and GMG have to noteworthy distributors an XX% international approximately our in past contributor been And growth is been that it

bright International & Church perennial Dwight. is a spot for

and has another XXXX averaged international up for target from X%. XXXX X% XXXX exceptional year. is growth organic be shaping growth business This to to organic long-term Our is

prices seen for future months, Products. the QX Milk demand our as another our lower been XXXX, should turning for have we organic bolster increasing demand sales which to dairy past quarter productivity customers. animal six declined have from for X.X%. Throughout products Now challenging products. Specialty was

our businesses We algorithm optimistic other of swine. like acquisitions species X% our sales result about be and to long-term organic serving growth cattle continue of as a poultry,

consumer Let's consumption couple go X.X%, share and X.X% of category, up up gained HAMMER XX dry which laundry the and shampoo. a detergent back quarter, minute and was liquid the to In XX call X.X% business consumption ARM and the out grew for highlights U.S. laundry share points. laundry in & a points. XTRA was gained

laundry growth. basis HAMMER sold continued As ARM in We maintaining & percentage to significantly anticipated points laundry while the XXX by promotion promotional reduced environment abate. on

laundry new meet well & DEFENSE FADE ARM doing HAMMER Our product, is and our to continues expectations.

BATISTE one number dry the consecutive growth share continues In dry XX.X%. double category consumption than of with the BATISTE shampoo, growth quarter. shampoo more XX% is for gain to XXth the

quarter. recent to single-digits show the our category WATERPIK's shares with XX% acquisitions. comments on XXs. growth. is X%. more make and track sales business leader the grew in growth I'll one number a growth market WATERPIK year-to-date WATERPIK in is high The few to deliver continues Now it's on Globally Internationally in high the the

Big the U.S. to marketing compared WATERPIK use is is penetration. households which that replicating U.S. professional X% launch-and-learn estimate opportunity in in of are XX% the We We program, X% to roughly household Europe. international used increasing

demand growing seeing also are flossers We for Asia. water in

was launch highest FLAWLESS. brow expected sales for second half, the the strong on XX% our first in FLAWLESS half we saw product. of of of sales FLAWLESS lapping quarter in This slightly. second were to be because we estimate, up XX% May growth a Next pro basis. forma QX order the year pro to deceleration was business year, full this In XXXX we is This is growth year. up acquired forma expected get FLAWLESS. the that In a the to the ever

second forma sales pro XX%, pro forma in down half full X% sales resulting are growth. year However,

same-store important affected things with couple customer experiencing been has lower a X% operating difficulties A retail orders happened. for which sales, of One our product.

addition, have plans new important until significant launch we display-driven our coincide in-aisle sales wins. resets XXXX retailers this to planogram at we better are several to decided product to from where with very to had February In delay lower a It's important transition because we an distribution being as brand. growth business

the brand far, on to exceed future expect in in so XXXX ACV and a sales our excited very of and are distribution XX%. expect XXXX based we wins increase this XX% So growth we about

the & back opportunity QX, into it Regarding We long-standing the and for performance been over-delivery the Church reinvest has always long have in business. us invest earnings afforded and our the business. practice to Dwight our year-to-date of manage exemption to the tariff run

in As our you in predictive QX, and in release, are in plan we to sustainability. the partnerships Pacific and accelerating saw analytics chain Asia invest R&D, supply investments

So we're on had margin growth model exceed business in evergreen we in conclusion, expanding Base is and an to track Organic quarter. is gross excellent our sales XXXX. solid.

over to going it full on his quarter I'm third to year. right now and Rick fourth for quarter, comments turn

Rick Dierker

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

to other tariffs, Third on quarter business XX.X%. $X.XX $X.XX performance of by $X.XX up We favorable a is $X.XX our Tier The marketing the company's $X.XX in quarter EPS had two adjusted the from which exceeded was And outlook the and beat. $X.XX timing. was of helped That ruling a per $X.XX of share, compared $X.XX. $X.XX. XXXX, appeal

the the outlook, And currency calls, Organic exceeding adjustment our previous the our up reported a as EPS X%. X.X% were largely of sales Adjusted short will drag. QX approximately discussed we earnout $X.XX. X% FLAWLESS period. X%, EPS continue in until of of for outlook conclusion the and quarterly up was to due excludes adjustment earnout business. this QX was sales revenue lower FLAWLESS Reported the approximately

moments performance, offset and spending the on from negative by increases. by and covered as on already X.X% X.X% spend the few and volume lower a from for increase. price of was volumes promotional slightly This impact price sales mix Lower Matt As volume Organic company. a positive resulted mix volume a divisional the I'll increased price drove X.X%.

or organic the price sales volumes response less Historically, than has line has several last XXXX increases, expectations driver of the And growth it in primary recent quarters. expect better with we our to volume performed growth. and volume-driven. the be in growth to In contributed been while to beyond, over have our

I'll now move to gross margin.

tariff was neutral. which third point outlook, gross margin a increase on Our XXX due is a The exception impact tariffs This related quarter 'XX ago. than to gross basis benefit. margin better XX.X%, in XXX to full points year year is our basis net is the from

a basis points to up year-over-year. decreased sales, XX percentage marketing. to now million $X.X by net Marketing Moving was of XX.X%. expense Marketing as

full as to of flat to expect continue a We or be net XX.X% year marketing percentage sales to XXXX.

For increased SG&A, basis points XXX reported QX year-over-year. SG&A

XXX as invest points, primarily related points driven acquisitions. of Adjusted increased was XX% points, or tax, quarter expense income operating XX we intangible for SG&A R&D adjustment, to higher. earnout was X% exercised. FLAWLESS higher net to due in basis for our spending, slight which the XXXX, continue to stock rate million. primarily options for And is the basis XXX number by the up of was a a decrease amortization, was effective $XX.X basis XX.X% to compared behind SG&A Other in quarter, included Excluding margin in quarter innovation. the XX.X%,

to now And cash.

earnings offset prior was the million, $XXX an of partially year. increase operating nine higher net increase the cash this a months For from capital. $XX.X working And were in first XXXX, from activities by million cash

through Our to program cash up flat earnings nine And the is versus year, year-to-date year AR-factoring a year. months prior are XX% ago. the of first our

the in in increase an program see to expect We QX.

what During QX, we to XXX of share considered creep attractive million and ahead get XXXX repurchased price. we share shares an our

QX, our and expect as to For result higher a EPS investments rate. be tax we adjusted $X.XX of

the full And now for year.

approximately We is X We're of sales approximately FLAWLESS November versus now expect to to previously growth well as starting until expect foreign seasonal We X%, partially timing growth orders system reported building due display as X%. after X integration October to finished. be continue a cutover organic X%, currency. and peak the sales

an expect margin full improvement. expand FLAWLESS now to points acquisition basis XX is points gross excluding XXX year accounting, the basis We which or

impact the is on full said gross tariffs As I of earlier, year neutral. margin

to per EPS we XXXX points X%. adjusted continue EPS of growth year basis increase expect and XX $X.XX adjusted to adjusted to full or We operating expect share of margin continue

will momentum. We ago our Pacific As mentioned and Matt similar $XX the prior Asia now we areas release and commented, years, $XX continue QX to years approaching how as the just that one as example than we're the reinvesting beat to is million doing. investment release, it's be and excited in listed was few in a the business less the million. of into business about well Remember back

it to will sense. makes where invest continue We incrementally

wait order to the during around X any risk Lastly, We in minimize FLAWLESS business FLAWLESS May I'd decided provide XX. peak additional purchase November treatment like details to inventory the to shipment. seasonal transition period, during X to October some accounting disruption to until

received net profit revenue other sales. is period, of as accounted net component transition marketing from for the During Ideavillage a as

provide of will And for sales. revenue housekeeping marketing basis, months enable like-for-like we'll just of when assess for a a QX, the for So, net organic FLAWLESS reflecting investors X our profit XXXX on of ownership and and we a the reflecting the results November to October, outlook, our December have growth. month to note, proforma month ability we consistent XXXX

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

Operator

of America, the from please. your first from Our line comes question Tong question Instructions] [Operator Olivia Bank of

Olivia Tong

a a volume talk bit about but because holding mix the Great. balance initial to Good of be as gains Wanted little up pricing Thank bit. price to volume these the price little suffering start and some lap is morning. clearly you. to between nicely, seems we your

Consumer forward concern on we going change of that And your does you? look forward? in does go that sales view makeup Thanks. as organic particularly growth any in So And what the Domestic? like

Matt Farrell

question. Good Okay.

we personal let's categories, say and So in care. five in in household three raised prices eight

condoms WATERPIK ORAJEL. stain deodorizer, Then also side. personal on fighters, over we litter, care and soda I dry throw shampoo, guess So carpet and WATERPIK. the baking

year. So volumes expected the for than been us throughout better have

And point Logical year okay to volume? is question to of to our mix from a you positive have is, wait going turn generally happen. that view, for the when for price

of will need categories about return volume one increases. categories are growth our most For based generally year and price -- after most

Rick Dierker

Olivia. I Yes. would just add And

I to driven. think you volume in going be think heard beyond, comments XXXX largely my we're we and in

business the was on example was minus And X.X%. volume. domestic an QX QX in it As minus X.X% in

sequentially was it So worse.

story. half. we to litter price call cat the raised business we We largely a bit in bit in second we QX did of in the a the -- a volume got on slow said litter down remember And earlier benefit expected we a than that's half. our competition little so Now second

for basis for it QX half was a In and And usually closer is stack basis, average so XX XX. But basis XX and the do averaged sales was stack the actually a litter stack on XX. to QX QX first don't we this. on so QX to going in

So show but volume in business QX. is bit in strong, little the litter very that up a

Olivia Tong

a scanner Got it. That's looked particularly then progressed. has helpful. our time data And recently as little softer Nielsen, has

So well, beyond said, that? you to the laundry half/first many is still talk your And you softening. that But variations you doing categories other mentioned know like phenomena. about you're see litter can major pricing some seeing are I relative starting second scanner half of the but to

Rick Dierker

sure. Yes

bridge Our to Nielsen organic X.X%. Nielsen, our from was number around

would tracked X/X a just channels. channels. X.X. is X.X%. of delta We were that So That's on be of tracked at that

we is read sales to do that also as comments So then And business really back lower back example or online couponing. coupons pulling well. you up in we're continues and XX%, X/X think in maybe that on an Matt's as I on trade of laundry the right? pull release are

large, and by for it's pull back it's like So issue a and litter comp for everything really laundry. just then

Olivia Tong

Thank you.

Operator

Thank you.

line Kevin the Jefferies. from Our from next of question Grundy comes

please. question Your

Kevin Grundy

I pick wanted on to up FLAWLESS.

half that learnings in So due The come guess some a around year expectations key to customer softer been commentary have bit to innovation. of Matt below what the comps I on back timing just from a it's some was and going the the so far?

passed along But it is little year. is and still this like different context sales I a sounds you're But with next asset it's WATERPIK. guess XX% the growth bit for confident the been in

common I miss business after for to as And at acquisition. this plan acquired stage it's an can less an recall early

year? is the gives then you performing deliver do confidence So the point? looking think out business How key is full next what at can it visibility XX% customer? underperforming the questions for of this be that have business you outside a you that growth on would And you sales reasons to the

Matt Farrell

one Yes. The - look the thing is control, second out is thing one in our half our control. of

it's our So out of control.

those cutting have just -- happen. things operating an having If important the you largest retailer, historically account difficulties some orders that's in

forward year go of to a that well as an What decision to obvious do is, as next our investors reported And the obviously new with in was our product control we respect was numbers, hit defer broadly? the making to launch with acquisition. to perception

until news it's ACV that good XX% up wins think year is we lot XXXX. ground. a that the been calling The know So we on we've next that And we distribution and coming. of are we're going see sound growth, XX% deferred February is be to that, when a getting we

in a thing brand that, too Now to is mind the here transition. keep that's is in this

-- you If product and and you brand were be an to business way build pipeline And business really building largely other a is a new with of big that's manage the thing we're innovation an driven building This has that with marketing it's a so and brand. transition. is the and to the a the and brand. product remember displays business brand. in-aisle brand -- brand wasn't good a by that moving a in-aisle set-up a we're with is innovation. And we're a start doing was We

second are but those bit a the we a about hey feel we in going future. the reasons half So why bump of we got here sideways good say,

Rick Dierker

to down of XX to And one-third it's it do ship bump year didn't move activity basis Only QX. that of full we to maybe We're so because of number integration all right? then a That move one-third just the -- worth trying when month. Then in X%. And is we was one-third want is out FX. so bringing the is right timing give they're it. I as one-third X% just this a context of month. transition miss to the out FLAWLESS reported want inventory the it to that We is from

you So to it's context. X% one-third of give

Kevin Grundy

Rick. Thanks,

bunch follow-up on it of I'll but on. this I'll and it A one on. pass Just question, pass

which of, sort that? to and confidence shift have aisle then as then the you important is So brand what as would you what, display you As and the gives velocity on and the from product visibility this the it young be a how where to does company is in of given sort an brand how is? move newness given, of, the make the do young business you one do

Matt Farrell

for Yes. what does get into tell recognize many the looking from the This Well excitement which and the launches the retailers we the the stores, brand as on and it for. retailers previous consumers can the of definitely well. are brand part consumer is younger

placement So the positive. to once help think we're not aisle distribution worried about to big velocity. be We in going that It's going we get brand. a really good it's

Kevin Grundy

Okay, I'll guys. Thank pass leave on. it there. you, it I'll

Matt Farrell

Okay.

Operator

question the from next English from line Sachs. of Goldman comes Our Jason

Your question please.

Cody Ross

on Good for is actually This morning, Jason. Cody everyone.

a dig guidance to wanted gross Just little bit. margin into your

just gross included believe the takes You've of provide bps, higher guided your expansion you. margin of XXX basis a you bps margins increasing points gross about six outlook? Thank or and Can this to I guide XX FLAWLESS. bps by excluding your XX expansion increase GM quarter. suggesting previous XX you're FLAWLESS puts

Rick Dierker

problem Yes, sure. Cody. No

XX When -- business last right. for half the quarter half that year points XX of the the You're provided basis that FLAWLESS. the of and was we base about was full

and XX unchanged. base is then It's a XX. XX. The FLAWLESS is the So number business. XX still And the

So XXX year for now. that's the full

tariffs that's And SPINBRUSH we stuff X That's XX hit showerheads out about basis XX got of back XX benefit a and bit and I a the could you with then the points. tariffs just water point bps. little X then subtract outlook XX. add If by right? see and start like Tier We Tier basis you FLAWLESS.

basis actually better another the to to going that by to spend investments you gets large. then we're that's little that then so that a XX Matt And back XX. having some of we're points alluded And and productivity

So that's plus to you get XX. how

reason it's the we're So better base business. the largely productivity That's driven. on doing

Cody Ross

for year? specifically you. Great. Thank impacts benefit? retroactive And us a That's And spell into the you this just very onetime exemption, quarter then residual is regards Thank the fourth is there you Are just next helpful. in in much. relation can that what to out to? any into tariff

Rick Dierker

It's X. million up to WATERPIK, about problem. no got It was in business, quarter. related Yes, $XX Water which caught Tier in Flosser largely the our

million We some it's around. basis that went neutral to $X and of get XX margin in or quarter back in a a points basis gets and $X the as to comes another million On then expect flushed had fourth this because outlook we inventory of drag through. our

now So margin. it's gross in neutral

it like then in right be now -- dollars so the just in will neutral there the on So are be dollars XXXX. margin. still they XXXX will But

Cody Ross

Thank you very much.

Operator

you. Thank

from the Oppenheimer. line comes Rupesh of from Our Parikh next question

Your question please.

Rupesh Parikh

morning question. Good and taking my for thanks

So on FLAWLESS. question I just also had a

look on pay you earnout of you the given out in you're that end as do towards still this the to be you out I the believe high expect get able payout that to that earnout? year XXXX track to shortfall So you on expect December guess the

Matt Farrell

do. we internationally having do success we we're we're with that new and We track. the think lot distribution opportunity Rupesh. with on of combined a There's Yes, wins still

Rick Dierker

it comments. And future. the for in what We believe still comes grow is his really Matt said earlier down XX% that going foreseeable Yes. to plus business to

Rupesh Parikh

you two you expect years? Okay, up essentially headwind the this next year to make a so have over and it

Rick Dierker

Yes.

Matt Farrell

good Well days business it's happening. owned May. things but since are mean I the Yes. lot only Yes. early of a

Rupesh Parikh

and going on Okay. whether Great. you in this forward? how then X thinking it you're tariff front that regarding Tier your on And built thoughts there's anything about the just curious for

Rick Dierker

and headwind there's tariffs bucks in FLAWLESS will million September -- few us else. to of getting really Cody start for anybody X. four WATERPIK the And a shower it's three Tier QX. hit Yes. product I that I just just mean some a with Remember And like hit alluded lines SPINBRUSH, of be heads. got we we

burden we'll also with we'll XX. We back on go pricing. at start And negotiate of our December suppliers sharing to of look what Some we do tariff WATERPIK, them some and do the right? and

so we'll you impact the of any would update net And in that of on be. February noise what

Rupesh Parikh

Great. you. Okay. Thank

Operator

Thank you.

line from Nik question next from Markets. Modi Our of comes RBC Capital the

please. question Your

Nik Modi

for thoughts Matt, the you morning, good obviously cost little couple And you XXXX more thanks, of and around private input talk everyone. retailers months been and environment next has maybe particularly just even just their we'll expect Yes, heading favorable. do Any label about helpful. a can be bit see spend, the as that push that promotional competitive would agendas? and look to into all

Matt Farrell

people saying things you're so be far. suggest that going trend are if spending Well, the would to back, no,

at look example you laundry If year deal this the and categories recent sold was quarter what's on points. over laundry for on going down XXX basis in the the -- most

And was had don't on the people if it's was increase were so laundry where points. deal think, say fun. think that I basis increases, the price well sold at XXX there look We And I logical price categories down to you for and year-over-year, dealt companies things mean, for a to now think be year those I back. so to are all increase earnings I all we're it that don't trying would start think back. these be dealing that going to illogical their would public

Rick Dierker

would side, I And commodity add on the just Nik.

commodities a you see for for us and transportation still but in our headwind around quarter. And just they were if XXX You'll drag still basis points. parse point Q the basis us commodities XX out in we're

we in part some is hedges Now place. of have that because

high an But example or sugar. a off, roll raw increases we for mid-single-digit materials won't like for single-digit as place headwind. be have in hedges those so And do that litter

there's still not inflation. fall deflation So out There's free there.

improving it's doubt. no think I

not commodities HDPE of are. down them but major ethylene all our actually of like and Some are

Nik Modi

you. Thank Super, Great. helpful.

Operator

you. Thank

Deutsche comes Powers of next from from Steve Our the question line Bank.

please. question Your

Steve Powers

guys. Thanks, Yes.

forward or referenced question. out data So more you're in Olivia to stable quarter-to-quarter, to environment to going the operating less really scanner that related conditions, And versus looks they even seem promotional anything or the XQ it not calling relation XQ. me Nik's

anything that's the if implied out? why the XQ? I So guess case, call Is there to deceleration in notable

Matt Farrell

also back It's we gave on called largely sold on it Yes. promotional what commentary as out may we time, because on couponing. Nothing of spending. last same laundry, we're pull and deal from last pulling different Steve. And from kind the call we back

gave contribute just I strong earlier litter, example, basis, the call, deceleration as we lap which those high things over on a is the the all number -- to the year. for lap in we really a As still volume stack

Steve Powers

Okay.

kind just then And clarification. of accounting an Okay.

that the just fully with in P&L unique of kind you as Will that? call that... verification some a So M&A growth to unique of about when treat Just XXXX, year the some accretive I impact? next as Or the accounting organic how to can price basis in delta XXXX you're lap you treat out consolidated treatment FLAWLESS revenue mix? talk of will or going versus need that you

Rick Dierker

the definitely sales to $XX for comments, try QX I'll marketing -- just net upfront P&L, we FLAWLESS but Right. sales they million. my the a this we'll for million were pro forma example -- profit. net what represents that will year put in and $XX that What so was in there around within real were

So of in of growth our organic we'll do QX all $XX off year, million. next

Steve Powers

That’s so Okay. much. perfect. Thanks

Operator

Thank you.

from next Crédit of Kaumil Gajrawala the question line Our from Suisse. comes

Your question please.

Kaumil Gajrawala

Hey, everybody. good morning,

First a FLAWLESS inventory thing? Was temporary that? one retailer something and the as quicker a like it store sort an Or such this closings issue. structural timing more on something is almost of maybe

Matt Farrell

do that That said, number one But we they back see of that to don't that important fourth quarter. Well like dependent little going distribution February. most retailer upon the forward be have in We wins I did expect a it's curtail seems orders. retailer coming as -- be we and in coming the the considering it's bit. to

Kaumil Gajrawala

to got provide context you and looking some as channel current for you're own mix FLAWLESS? business the channel you longer the able it. the achieve for Okay And are maybe to mix on

Matt Farrell

ACV in so dramatically. expect low increase there's opportunity food. Yes. food, Well, FLAWLESS to in big that a we Very

a we say of So lot there's of say have that still class runway. biggest trade XX% that's I the would a we have ACV, I when And opportunity.

Rick Dierker

Yes.

And trade going international we into one, class of is currently footprint. international. that to but plug business our second as is of really the On only that not XX% grow just sales their

Kaumil Gajrawala

Got Okay. Thank you. it.

Operator

you. Thank

question Barclays. Lauren the from line comes Our from Lieberman of next

please. question Your

Lauren Lieberman

talk understanding year Hi. morning. to enormous a tying if you guys just an quarter. spend little was could I Thanks. it's about the XQ in marketing but one fully Good of about it's number bit spend amount hoping a full

So, of kind level terms quarter a and on the balance I love of why Because you've I what where in just QX the any XQ implied previously. between find spent in shifted color timing? QX, can't

So just interesting going. it's where to see that's Thanks.

Matt Farrell

Yeah. Yeah.

Okay. Good question.

If look QX at you'd and as XX%; QX QX sales percentage you you look at and of QX see XX.X%. a marketing is

in So the spot hit of trying sweet it's sort basis. to of XX.X% on a year full

QX so out QX a So as lower. QX a half We are shift There that money that. new launch was happening is did things QX. of million launch into the PROTECT. some few behind product dollars It's DARK some second we such in got OXICLEAN a

have One launches being we for shipping also early are a forward. a so support. TROJAN pulled G and couple q that We condom moving of that's BATISTE up have XXXX some we're

a basis, hit on year XX.X%. full we'll So

been past in had of XX%. have the that have excess quarters in We

to It went think over XXXX last I a If quarter. back XX%. was you was second year it

it happened has So in the past.

Rick Dierker

And up right going $XX it's the Yeah. in up million million year-over-year. $XX -- it's to Lauren be you're

that has in QX. the is has the kind spend QX some spending of will be for right? a November/December. of of It some Some WATERPIK P&L marketing spending some FLAWLESS acquisitions normal in

shifts said but the of for because – some like So some the of numbers also just is higher resets, of acquisition. the Matt that

Lauren Lieberman

Okay. Great. Thank you.

Operator

Thank you.

Raymond from James. question from of Joe next Our comes line Altobello the

please. question Your

Adam Kozek

actually Joe. being you was bunch sales? I digits my a a a more percent maybe just you I on for on I mid-single guess, today, as China questions guys of touched curious guys. is but quickly you specifically can This know in a Hi, perhaps think get of underpenetrated do how Adam little

Matt Farrell

ago we're question. water with and shampoo toothpaste, up business success how going International year to Shanghai I high be to get has X.X soda, fastest-growing a having of Broad just at we been It's going as to Well, We're vitamins. Jahwa flossers forward. yet we just Dwight your some lot to and & the XX% going baking wouldn't The ago annually. dry with part Church of fast started have growing speculate likely years a target. and there. But

Adam Kozek

Okay. That's helpful. color.

Operator

you. Thank

comes next Jonathan Edge. Feeney from line Consumer of from question Our the

Your question please.

Jonathan Feeney

Good morning. Thanks.

a couple questions. of detailed Just

relief curious were a want just how prior technical And time government sold but because ever you around club from report? club you and give commented any understand channels is sorry to Secondly, couponing on that? – First, you that's this I positive first in track of anything your a a Can future? work of on situations dealt of so mechanically? them of recognize these actually that be bought. the quarter between tariff just you still that like relative not and in – costed there that you this bridge a all? I on thing super that Any you Is with on online. mean effective? and collects structural third Rick comment it's long comments and back and as couponing? Can little actually to before you little comment anything you going that on So to leaning is more see that there world different getting tariff the But relate with just price versus structurally pulling is like you're does so less I there's where far bit relief much. in your but as that less insight little of important make a have we'll the a on detail know coupons promo quarter? -- volume. the there to most on Or overall was I've sure little I something ago are it. in a a products bit maybe a Thanks approach can

Rich Dierker

Yes.

those Okay. questions. three Well are

the great. doing of well. XX% First Amazon and bulk doing growth. growing. club. and really great. channels tracked one about is between is online on The Club comments Matt's always It's to is She's though growth doing difference that's untracked

driver. a not positive tailwind So a club's but huge it's

on introductions coupons. price XXX it's pullback Coupons to deal of equation value laundry back promotion alluded and promotion sold and over basis Coupon almost on pull follows third are meant just points that Number we've the the Matt see tariff. other less technically of price/mix on And I two for think the was part laundry. one product amounts or price really more for equation. And trend. of you'll that on fixing time as new from we – Coupons on and differences. value

get But You're follow – se. you up all really back back product tariff tariff out per way inventory. what the that rebate goes like P&L figure goes the to the It have started P&L the right. year. credit you us tariff importing it of last the to to follows some imported you August give for doesn't we – all they when product that relief When to when have. what which been for a us It's to with a we July new did get

it's XX just impact no months' why got. worth of to it that year, forecasted had so we of there's about this happened the And so months full we So gross year relief XX margin. occurrence, that's

Jonathan Feeney

you. Super helpful thank and

Operator

you. Thank

comes Our from next comes our from UBS. Steve Strycula from -- question question line final the of

please. Your question,

Steve Strycula

Yes. Hi. Good morning.

on question then follow-up question FLAWLESS. quick a a have I laundry First, and on

read seemed quite more were about bit happened from the how For muted you market the that share And gains that piece, the think which you business. forward? help can different in the then and think that pods in liquid to or do strong shares Anything we quarter? a trends us little for both, the laundry think laundry saw this through of quarter

Matt Farrell

good That's question. a Yes.

that mentioned was up for was at quarter, XX look I XTRA ARM you bps bps. XX & shares HAMMER up and If the the

& is for certainly, brands OXICLEAN us X.X% was XTRA, they're other Going that healthy. HAMMER bps, which was share. the down two OXICLEAN. But have now the we ARM very way big and XX

the the look and P&G, I math Dwight Dwight bps & brands Henkel, that for for in you bps. all just you up was suppliers, Church Henkel a gave and was P&G share look three the And suppliers Church & you up was If XXX point the Purex. at share. all down across at and XX being full

hope I you on. So what's gives going on a perspective that

entered Simply have far time, unit deal X,XXX points after they Purex as dose heavily massive. goes, which same XXX on points basis a percentage as three-year the year-over-year, and kind promoted point is category. in pods were price as far this reentered basis Tide Actually, At the And us, absence pods As quarter. of for they of sold gained has they're unit share. with very low dose a up

for And year-over-year at percentage basis sold on the XXX deals. same had time, back points pulled we a

combination of we actually of that XX quarter, the X.X%. a our over pods only we X%, ARM X%, So -- bps lost grew HAMMER & all little in share so

what's of proposition for going So we'll be which a a dynamic-wise. that'll consumer price. on on But our part, the value sense right for is and the having combination focused right for give you quality the

Steve Strycula

do they I And follow-up happened That's the a there. really question aisle really might product Did Or didn't bit just the key on helpful. it didn't that as to a better? be do impact? you and resonate Kaumil's for dense you have understand it base just specifically? morning, what a trial like get help to us customer retailer, cleaner then, this Can little that I little

Matt Farrell

retailer. velocity. It the decision the part a purely on has No, with to do of nothing that's

Steve Strycula

would what as think higher are implications? And Is receiving what transitioning are Where it be next -- the we product Okay. trade-offs versus on-shelf you to about cost slotting placement fees? in to display? how in-aisle the

Matt Farrell

No, excited have We're stay pretty a retailers be going Yes. on some placement. tuned to to placing in major February. about product we're where you'll

have goes, time We're spot. displays go-to-market As display-driven our different far if for promotions, that's as from as than strategy. use sweet our but the displays that's you is not we Obviously, and to not dynamics business. a time replenishment to central in-aisle

to where be FLAWLESS business. is going in-aisle able we're the help So to

Steve Strycula

All you. right. Thank

Operator

This you. Thank does….

Matt Farrell

All right.

going the I exchange a We're going quarter. mean, good quarter to fourth looking right think forward and at super final had we're to in wrap to We'll up we February. note, see everybody have it now. I XXXX. a we're

later. you to talk we'll So

Operator

Thank you, ladies gentlemen, and conference. conclude in for the your does today's program. participation This

You may now Good disconnect. day.

Church & Dwight (CHD) 31 Oct 192019 Q3 Earnings call transcript