Earnings call transcript Q4 2022

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Matthew Farrell

I'll call everybody to attention. Hey, we haven't been together for a few years. The last number were down here was January of 2020.

So it's been three years. It's really great to see so many familiar faces in the room. show today. great a got for you We've I'm statement. start off safe harbor with the going to everybody read encourage I to time. have some that when you virtually is today, And from the have who team. entire here's management here which management

we're fill stage, up, when come do we the done everybody and presentation, So will the on can then Q&A. with

got a We've right. packed agenda. All pretty

than you these when room things we the of will it all the the in be Some walked of we you familiar to want room. are knowing out to more you, but right. walk think All

start So, I a want XXXX. at to with look back

So, we of past increases you 'XX. significant million year. year-over-year COGS inflation 'XX versus as this all know, in $XXX We had had

in more And we some reacted how we once. than increased we that, And and raised 'XX. cases, to prices 'XX prices in in both

You and saw on litter. that laundry also in

this of really with have brands. We year success great several our

& BATISTE As here, page you laundry ARM racked shares. litter see highs, and on can all-time HAMMER detergent the at

you swan if ZICAM THERABREATH others then And we be past in experienced our and XXXX, market acquired in all-time growth acquisitions, HERO years. 'XX, there'll the black high know would look 'XX recent know finally, and of And a be shares. had that and event double-digit and at over then some all few we've more We future. the

the getting the for and a ended lot spent ready 'XX, one. of finally, a 'XX lot done in we've a of work strong. So, effort of lot And year money, we next then

the behind, categories out of in. kind just that slide that that categories XX we in see XX of these we're compete grew as the you consumption, And on are here what a leave So, XX. the

went look class at not. can up this you categories after So, which categories and did which take is a

right. All

show Dwight. in with and we that different than very slide XX year, is Now the been Church we've every that & seen this a slide years here's a I've

year, backwards. we every double TSR. in Dwight XX year, Church And it's first with years we've So, many, went had many & -- this the been And years, significant digit.

And team, and that's shareholders. it's to disappointment a Board the the management disappointment our me, a to to

granted, got streak sows But company. great looking have great ourselves starting just We've XXXX. we're our We on brands, to XX-year up. off, plan broom that ahead we And in take a and ‘XX so, got now optimism going starting with and we disappointment. another we're to

right. All

why do so So confidence have in we future. our much

First off, we'll go to left U.S. right

the for going to going and we is he's and to That, believe has come to to time. been us Barry why to our little is the annually. about plans by about expect So, growth X% a future. talk way, in future. for and Reid in talk Mike is while U.S. the in business going continue growing up why our up international the that tell at International model. you a long we And come

innovation, that category. is well, going That And to about to one model. the in innovation. familiar as is this growth new many very line particular, the future. come big is Digital contributor everybody a for year, finally, He's plans our very many, we're Barry for our long-term line model become We're up. holders. Officer. top with going savvy transform Barry innovative We're Evergreen you model, evergreen top long our line, particularly could talk take to going X% company. room, growth. ball Innovation She's in Surabhi we've our the Chief to been a years. hard launching going we healthy It's Digitally term. bottom on And X% how is the to which litter think talk leader through about

We that return model XXXX. in to we'll think we fundamentals have strong in XXXX,

All right.

we who now So are.

company. $X.X we're So, billion a

XX% International that Specialty today. the on, domestic, split. we about how our Products business see a which is business, can founded You and largely it's was legacy business business, our XX% company We're X% U.S. is a

brands. we that is brand That's So, up XX brands won't power we of there our XX and you business revenues flawless. have power see bought a XX% Those today make profits. One up obviously four I as years these turn of out our ago. brands revenues the had and power profits. XX It didn't release. the we But in way XX% disclosed as expected said, drive

formula. our here's So,

diversified a have stats minute. and you a balanced I'll some in take We through portfolio.

and And We cash have for accretive are take and cash low we average while, lots exposure. destination through you first our a We of to is innovation, Barre, label going XX%. weighted exposure generate lots is and an private TSR acquisition. The the is little company. acquisitive a

here's diversity with share of you. I the some to stats So, want

premium. So, XX% value, we're XX%

and household, household a care. personal exposure. even around time. much XX% And And private weighted split, over that recently. as It's it's our here's about really hasn't personal is XX% long changed That of generally care average label For period XX%. this

exposed to. most we're that categories five the are There

private on the innovation, see has moved the be to launching going see over lineup the in we're The time. stable new You is it's as And products this lot there, left, down as you ball. level chart far and can a consistent the how environment. hard But in even see generally XXXX. upper up this of

hear to today. going about later excited I think that it you you're about really be when

All right.

through acquisitions. a long history growth have We of

We've line, added look top $X.X our billion. back lot billion a almost is you and to $X at If acquisitions. through XXXX, of -- go that

bottom. You XXXX, new year we every brand. through HAMMER. they're in we the & And laid out add had can the was year, ARM only a brand the see Almost all

since those the the two number to criteria. high-margin in are and two -- clear one moving number to be So, with number fast- categories. they of number brands most acquisition in their and or are XX And one of have Got category. brands acquired that of we our XX beginning And century. brands consumables. high-growth acquired very power need their Notably, have be been

We've added our fast-moving experience consumables with because of FLAWLESS.

it already invest to All doesn't company then made we like whole third needs lot leverage supply And a finally, to be by considerable like a our co-packers. to We parties, plants. by are we're competitive that have right. long-term advantage. businesses so able chain. to Asset-light that in a -- And buy

So, XX XX We tomorrow. have the have story is, brands today. short hope we to

All over And Rick. that's think me. going it it for to pass I'm I to right.

Richard Dierker

Thanks, All Matt. right.

go So, a we're going we Evergreen through few things, to quite model, XXXX. how finished

and We're capital talking also allocation talk about cash about XXXX, we'll flow. and

organic is model. is So how this first evergreen off, This begin most presentations. end we and our

So, sales we start growth. with X% off of

expansion margin basis of We points. have gross XX

flat our and long-term basis That then of We dollars. expand but leverage have we a get to that's We algorithm. marketing usually XX points, EPS sales on X%. is percent to about higher SG&A by

happened. QX, in what So,

bit QX, were Half FX on the basis organic. a of We quarter. So, was had did points we better-than-expected that was acquisition in HERO better better then a expected. little that XXX of and than reported of Half sales.

sales was So, we better on we've a we what contraction. Gross XXXX, XXXX. the thumbs expect continue up throughout stair-stepped margin in that thumbs growth That's expected. entire on organic growth. up and to reported sales And in year

as beat EPS high on end our flow $X.XX range, was at significantly the about operations, but Adjusted and of we the from year, well. cash then I'll full projections our cash talk

X.X% in inflation was around versus year-over- X%, you was Matt And X.X% that. $XXX reported driver the versus say, heard full came sales the behind way margin year, For year about gross and X% down. then million we on organic, growth of

coming of was high XX% the then reported noncash end $X.XX, EPS that $X.XX was the or operations to inventories down and was impairment. versus cash range. were working cash good flawless of $XXX strong million and Adjusted down back our million, And for which And especially see. from earnings $XXX EPS then our really was was capital, improved discretionary outlook and primarily really in line that's businesses,

Okay.

Moving to XXXX.

try outlook. the simplify So, we to

to a a how this step We are back page, and doing. have just the on next take chance detailed outlook we the but is say,

Our outlook EPS to X% growth. is midpoint X% X% is the

below investments we and marketing, growth line, core XX%, into Before EPS adjusted impacts digit. the is get double our the SG&A on the

we're So, how make in and pleased people. is We've strong really to brands the investments chosen performing. business with

about EPS. X% up normalization, is another X% didn't Incentive and XX.X% $XX million year, very we're million drag. a back or that's this we And year comp of marketing so, about to $XX investment and to incentive our increasing spend a comp sales, on so, good and drag or that's have a par

X% And interest and is drag. then taxes a

detail Here outlook. the a of financial is

sales point difference for X% XXX-basis So, growth to X% the HERO is SPD reported divisions X% X% and international to division, X%. X% reported to to -- organic X% The largely X% that sales growth, detail is to at the for acquisition. is X% domestic X% for to the X% X% organic for

to a the stair in XXX expands for time is details a is basis talked that. And hero step we'll of get us, few is and right? margin we about. We're talk that's to XXX a investment Marketing long first flat. going rates a up debt, expense, cash or tax X% some we're and on is year $XXX to because $XXX and Effective rate has million calling the other strong, is X% million. drag $XX over and for recovery, the road I XX%, the as the of points. time to expense out so interest then and SG&A Gross last then That up. that We've margin next Operating had have debt a in X% exciting EPS down by This minute. is into is higher, variable growth we'll higher million. through years.

think don't show shown track both. Here's slide we've just usually but before. of growth. this thought I organic, sales record We we we'd show a reported

to years, and of XXXX, we X% different growth. the the record. And X%. averaged expect track So, last XX XX-year no Organically, here's over in X% sales we've reported

around X%. Our is average

-- in to model is organic Evergreen our XXXX X%, and X% X%. Our model is range

back sales would inflation if eight then that's XXXX Everbridge you important and much of X% an little at aberration, last of model of point a growth. growth for one because was we years, the can of I'd the volume things most you Historically, look all our how over bit on most X%, the pricing XX our we industry. is organic growth. get growth happening But volume is the pretty it. really volume is you And happening the of pricing. flat growth see the low to about over say had all all have the industry XXXX, QX that's in all Now

QX. have And in improvement we

back expectation. and positively further half the further in We improvement, we although then of QX, is have inflect in XXXX although negative the negative improvement, in QX,

Now moving gross to margin.

XXX moderating. still do expand? have programs Productivity way. a that just XXX Why big that's believe it's in acquisition, our margin-accretive well. CRO, doing So, we're fill moderating. we improving we are inflation, Inflation can case and points. basis We is and

the you were. we where So, to and look the that at at XX% track kind you record, around if of can is goes midpoint, see XX.X% XX%

over we so, to the have room years. And few run next

have basis XXX a down detailed This XXXX, margin. the of in still XXXX, points, because the think have In here's And headwind we we basis for gross time plus were and inflation. time, the and mix, inflation there price a long we inflation but offset then bridge down points, is is from in we volume acquisition. help yes, our massive XXX productivity first

XXX year-over-year. points So that's up basis we're how

similar marketing, story. On so a

We have full year marketing support.

going better product have X.X%. We We're to get to supply.

the in and If XXXX, simple around it our was you back math, mark at high-water do look XX%.

years, up. these we three the because raise marketing -- went of Now widget last remember, we we took just dollars the price price don't and

effectively, XX.X%, is the XX.X%. out price if So, around you increases strip

and XX% is XX%. XX.X% to between that So, equivalent

normalization a to XX.X%, stand-alone and for for few brands. with to business our long-term off doing the number has the equity. incentive three, running place. great is we SG&A good leave And I stair and feel evergreen That is in of have $XX stepping for a leverage really support then want this million up SG&A. job, also about HERO reasons. higher, and it's by and remain So, higher group targets comp we

step doesn't have the change year, forward. We a in stair but one up going behavior

as EPS step we've XXXX, high that back in time we we And growth, a track forward have record. long steps down growth further along. the expect single-digit year X.X%, consistent we a we're double for or move took taking this adjusted strong had to forward is Last a step and year, but low

first half, a is story. second There half

water the be First we're and lapping half We've discretionary months down. expect next happiness have impacts. Why? we Because those like six of for kind them we choppiness EPS that to our continued businesses for as discretionary last so, Omicron telegraphed continued of said even vitamins or quarter. is brands. pickles had We

spend marketing return first supply and improved impacted normal global challenges International year-over-year higher And marketing second levels supply. the promotional then second higher to the half. have half half the in is productivity, dollars, than improved by

earlier. you That growth. showed I volume that chart have We was

Moving cash on to flow.

has is years And CapEx industry past capacity, laundry, Because flow cash cash year, we'll of many, for the in Why investment then we're XXX%. litter And in leading, be been conversion free that? flow on free conversion many XXXX, Our making the around around also this we're average, in expect XXs. XX%. vitamins. to

part we conversion cash we XX do down cash? manage of cycle We've the capital. generate working How way days to XX it Well, days. how from got is all

extremely balance our overall, how capital. So just we've working on our happy sheet improved and leveraged

We inventory, inventories. discretionary levels we've We more room businesses. but took of QX had go, because we heard have those for you as to elevated a stair improved step the our still I XXXX up But primarily inventories. release, as -- in improved those in we've

really sheet. we then strong have a And balance

at X.X XXXX, to So, and we're we times to going year end expect we ended X.X the times. the -- year in at

dealer deals. of have incremental we So, firepower an do to plenty

room billion rating. our and a go have to $X.X of and stay We maintain deal to enough up investment-grade

Okay.

the capital Just want accretive reduction do and TSR, deal we consumer always the We'll growth. want organic allocation. talk that we're Number more are and those of do We M&A. minute, HERO cash again and Those mentioned. debt that one, deal. to Matt fast-moving again, talking in just that businesses return about talk great. focused a to THERABREATH CapEx NPD, goods on about We to about the again shareholders. are

record the all & a capital-intensive all is organic for to step in and X.X%. drive things XXXX, XXXX, the investment not and vitamins, X%, slide. stay down of technology, at We're took litter we to So, long But litter, in capacity expectation. growth. this expect Church place, in projects baking X% a in help And for track around sales. up a cycle And then have our That's XXXX, Look we In laundry, XXXX, return Dwight. X.X% we're sorter levels. our overall, a be we as started step company. capacity those laundry, to we vitamins. around then historical we'll sustainability,

the And We then EPS right? the years. consecutive X% of this a and We've paying increase, been for range. many to XXX is X% finally, had our dividend dividend many, end outlook, a years, high

and is over I'd MPD going turn talk And Barry, through to who's how then like business U.S. finally, to to doing. the it consumer

Barry Bruno

a then to and a Thanks, afternoon. good a going campaign. Rick. Barry categories, to I to I'm bit you Bruno. and with our innovation bit our Everybody, it U.S. little here. live We new about back Nice I'm be give HAMMER. our talk business, marketing lead you about little brands, call it the

might the today. when as wrapped noticed you that You in have Orange in we've building walked

work So much do. we you pretty good as that I hope there like as

be future a the lead categories leaders I in on categories show growing one in you healthy. player We're just pretty may I in in and our or number those think U.S. biased which but I'll business, what's bright. deeper categories. as is little we're two are I bit, number but going growing

XXX-plus-year in from us those to and We consumers more lot going we environments. our room with them. and a in. about history bring of bit have We They through THERABREATH acquisitions lot as we We've difficult environments. run. about with little a little HERO. our talk bit over emerge to I'm you ZICAM, stick a thrive a in And about been thrive

that in say see category I growing on can Green healthy categories, going here. we're year, grew means the When contracted. you it what's that in leaders read,

average we've brands the X.X% see cold in years new those growth can mouthwash and as acne each added over of categories, shortening, You the across healthy few but bought last a patch year. categories weighted we

ideally and seven be. number is we'd a forward than know how of had back last we plan we right? we and of better that go held not be. XX of want -- aspire challenges to as We far grow we where hold as supply them do to year to to that We from us where also like better seven Ultimately, XX. we be out to share,

improves, as XX% QX right? happen were the to where below can supply throughout here chain year. and improving year, see last our going That's we You

can share Some where, course ahead, not growth back of bring we're one it's the for That's good growing as number growth get through or we year. has those player. our two these retailers as to XX% categories the us. again, at good of year you supply challenges into only made the to we see new the But for we're difficult. XX%, number

saw you We And this in do challenging before, like environments. difficult pretty we well environments.

new This look split them. XX categories as consumers times in, QX. tough only economic XX% a portfolio Our keep have is to five and bring label. allows in XX% premium, low us at label, said Matt about material And of private value, relatively private exposure, consumption in

So, in place. categories XX QX, growth took in of XX

can to are us. see new some You categories that

growth cold of If RSV, the of December compatriots in and been well, drove you are we've long not time look shortening, as can the as fellow this, cold, do you if your growing, I in what a at you navigated did growing the COVID, there. a top are without new cough, see for what you, about that commend many I any November, categories here like But U.S. category categories well.

take to at of let's matter categories Church So, Dwight. a that look those some &

what was QX then consumer You side, when growth, step Left-hand took a back. growth category side. a can was on bit in moderating right-hand the Care. Fabric see church growth X%, right? the little and you X%, can category with see And

year. category point gaining you're an all share share you're while grew XX.X% ended and you than So, X high, the all-time in QX, we when QX category, that than faster as and lagged to in And in QX, the we we know, as us faster QX. led times faster growing

& long-term We down XX.X% XX.X% with stay We're only over where think consumers premium we And all-time hide. to share our which we're of at XXXX. going share that's now & can ARM where us and away, more is you the right? consumer as keeping in love right? into that's to happen you You the sits were in trading ARM squarely saw see trend, is a value, at who try brand and in take this HAMMER, want I And environment, those time. part from consumers, HAMMER

about there. another me litter. what's is going times, now, each can share where Litter But economic story continuing last you XX%, I'm in of show existing business our gain see category. innovation you growth double-digit XX%, talk going quarter share. to here is the growth tough on let right we're to important you really year, And to again, in

point can a we've You over year. see gained where and change the

what's the they've on our cat value really, But they're moved look again, QX, share box, & litter HAMMER when trying consumer stressed you and us. litter at orange us and going if was most gaining with sticking ARM were is to they material QX,

So, in economic tough another about Church & story persevering. times Dwight

really We And it's are again, tough, cough, addition of flu, not economic times RSV. the to ZICAM like just our cold, portfolio. that

took in were share away. out left-hand XX category. and right on upon The how look cold if a socializing far bounced as back at over going at category You exited you and consumers XXXX, ZICAM share masks can shortening actually, see again in in of step share. years has category XXXX. of the side the going December back a were here, the has we a And But been XX built strength moving, strengthens the

the year. reports flu is cold on how years, bit chart to is this influenza that you for cough, of XXXX That and the was CDC and little last just flavor left, interesting November the this right? severe again, season of five gives versus an a December in the And

good, categories. some So important those that's and are

acquisitions really talked yet. haven't even We about

mouthwash to acne about So, talk and I'm going care. bit little a

of in reminder, XXXX. THERABREATH of bought a We XXXX. bought we HERO October it December As in

strength only strength it's us of days. and HERO been to has XX for a So, But growth. with story

New our to distribution THERABREATH led and is it plus WATERPIK growth path. detailing hygienist HERO the have for same and outstanding on

tell about of me Let little bit more you those. each a

the sales THERABREATH So on here. left

market. see of category, there. category Ultimately, the the XX%. can a the XX%, that to the than business where you mouthwash led almost of far up player two XX%, an market X faster year-over-year, overall at growth alcohol-free us was We're subcategory, though, percentage has growth mouthwash We're share share XX right? number that So,

skewed. of that main We're distribution, now can all with growing distribution. as see we're we're investing speaking and huge of THERABREATH but you about and LISTERINE we of more we met were when and that trail And in up runway the talked guys, Actin we realizing had. competitors, XX%, our CREST you last still advertising And under marketing some way

as us category. profit a average, point average, lot double for a to the are at $X we're with to And us a that as retailers about in happy price we versus conversations $XX penny retails those the engage a category brand of bring

that's a track THERABREATH already, for So, the continue breath great and record future. going into to

almost newest five didn't exist HERO, our Acne edition. The ago. years pass category

see in You by sales XXXX. growth for million can dramatically has driving that And category right-hand retail It growth. each see $XXX percentage the month to grown HERO. $XX plus fueled the can in million on in side you HERO

and And in as and but Target were. right, even year, last Amazon on why what's only small can mortar see to remarkable difficult Ultra they in Ultra. you of calculate target bricks only in how TDPs in think well, was are That's about the terms and that, HERO I distribution

our bricks-and-mortar and launching of and that growth to course to fair of in we share get more as of with more the All growth, year. ahead we're drive that major CVS expect of over the all look to now you'd and the be retailers us starting is going come

keep right? with in number of for tons recent They're have acquisitions the We thrive section, summary room and run. categories difficult in two the And great that compete in we number we in. our player to environments or the of that's most healthy. we most They're them. So, bring XX% They're consumers portfolio value We're growing. one them.

innovation we And haven't yet. talked about

our going really a bit noteworthy you we time for to litter. premium might little XXXX. CAGR the which box has Black focus our in decades you, is cat to on group added over It XX% us. got going XXXX. something products going on I'm our back spend to R&D just I'm to that look that. We The back, created back surprise with of I So, we've Because had give a Box, in We've orange a started category, business. think

cat value one us. Orange million that's litter, pillar box retail sales, That for $XXX that's in

incremental pillar, us, on think our or We litter cusp XX% price third and we Second perfected. and been to we're lasting the call clump seal, ball premium of litter lightweight hard has our pillar. it

Why category. do the much category. so of we the a Well, We've in clumping X% care total later? is got share total lightweight got a subcategory about only we've lightweight a And XX% XX% lightweight share about in category. the

after our We think kind absolutely grain. different there, going new So turn that hard which sorghum, is is It's it. to do hard share help we going and virtually It's clumps, and sustainable makes a of ball. fair lightweight mess a for into easy no ball which is non-clay indestructible litter. What us scoping.

bring bit our a little could life. And that to fun some of having of to you think I you it, will tell I'm going show a more video scientists but it of I about

play the Let's video, please.

[Audio/Video Presentation]

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of one innovations. our only that's So

BATISTE, launch a to generation flossers left the vitamins going water condoms we're of see make hair that's smooth, and to removal, far, line. and far as whole Nair SPINBRUSH our top new and patches mouthwash great and new innovation laundry can the and THERABREATH innovation acne users across corner. going by easier. got to we in facial kids prep a bring We've way, You and

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all the it around see You building.

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to the And where to with to And launching & We're price to eager new for say, ARM video we campaign, you with hard-working consumers help. this it is new made brand to HAMMER share power, week. moment, be a we're next all now. is a packed accessible and going

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Presentation] [Audio/Video

it So, consumers on we message, We're launching time. to Monday. right right be brand, right to going think

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crime for leader So, your partner time. Surabhi Pokhriyal going in the of turn digital, and over things to thank to you all I'm it my

Surabhi Pokhriyal

Thank Barry. Hi, you, everyone.

be So Church is & good see to name Pokhriyal. you. here, flatter Surabhi to leading digital Dwight. My

little bit industry actually Church because say upon I give is state union would digital the a section, a of and Dwight & seeing. this priority on for then of a is acted stated seeing and what the new color acceleration what is do So, us is I'll

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channels. monies spend in was XX%. jump on about a XXXX, you the if That XXXX, the number is via left-hand big is this digital from see side, Our spends media, all current marketing -- XX% until we of

consumers large So to campaigns, like audio just of OTT, to able of media, that asset dozens Barry used of assets a types, we video, be media of retail and print, of influencer from we a a where per showing, with social, was part variety And are campaign. TV, each and now store everything have variety campaign. reach we had course, few the

that. at better to cohort able course, messaging So, media ROI sufficiency we personalize and for the reach, are get the level of and

without All this cannot most company, intellectual our is be that done priced people. the our the in capital asset of raising

bandwagon. very digital anymore. or day of nobody not large-scale who do committed analog digital within the and we marketers certification jump and are but has We digital launched IQ that people the programs the raising on traditional will the day commerce for analog so just out, to to in be digital organization everybody Everybody

design our And ratings social acceleration it back acquisitions the their we fantastic has and center will is them to say where team in it I'll for in all new consumer product the a the of company, consumer a a truly elevating quote or sentiment where of That's at where puck with innovation right be the reviews, having and on beat mindset to using within consumer want do HERO exactly where get analytics job and insights going solutions I the be boats commercial scare not savvy sentiment live acceleration to digital who and been. the quickly company. THERABREATH, one like and brands to to digital and [indiscernible] is digitally listen Dwight. to here with Church & breathe terms

I on in acceleration. to see pass international, also that, the of digital my it ton will So, peer with that

So Mike is Reed. that

Michael Read

name the & Thanks, Surabhi. SPD Great to business Mike Great. be Dwight. and is run for My international Church here. I the

talk business. just want with I take SPD few just we're to So, next how about to some And on then updates the minutes doing close in international. our

So, international story. the

And business, bit So, different of of to from about million it's a you $XXX model, give a year. to each grow sales, two the the planning organically X% in we're little makeup parts. Evergreen we're just basically

subsidiary of is in fully we which That's business. directly have sell France, to U.K., We have a about models our direct retail markets, Mexico. This XX% Australia and Germany, we our are entities staffed, six. that Canada,

through in runs Markets distributor Group, we essentially world GMG. XX% than call other That's The XXX and which partners we partners around our countries. more XXX -- work Global the over with

actually offices And and XXXX. that China, U.K., the March opened in then recently, Panama, supported with five we've in of which India, regional Singapore, we most Mumbai,

strong record. referenced a But And got that some really drag back a growth strong and going track If system. some in got take supply contraction. a demand lockdowns and earlier of orders in you within back XXXX. some demand overall challenges and have look did back, our some We We've have we've did record model really, bit really XXXX. evergreen market very with in against the of did step the strong, X% strong We got little is presentation. we waterflow a largely we track China we've to really

markets If as clearly, has look well that out of been bit, at the But a four as subsidiary six GMG -- a regions. if little drag. China you unpack I actually our

We the really strong strong. have really Demand across positive growth is board.

performing well. is extremely portfolio Our

be to that recover, evergreen model. advantage on our back I take to think as supply chain recoveries of get and poised and we'll as China starts

reason strength I'd is that, of in have The confidence say it's our threefold. One brand portfolio. we the just

up Our extremely Traditionally, of power brands the do well it can different travel we ways. our leverage certainly brand. what world. frame is part we today and U.S. across a in three big

us. across So, Those extremely ARM well for OxiClean, our extremely largest brand segments across the et all ARM HAMMER well cetera. & performed & some is brands travel TROJAN, HAMMER, globe. those and BMS, of single

strong in adding in categories, THERABREATH acquisitions quite course, there. the are Sterimar, like those benefit international and with the we've high cases, taken U.S. that, their also high-growth FemFresh, we we're of many and But a our great our strongly to OTC Gravel personal from brands International HERO division, performed care space, in the our And brands unique complemented margin portfolio are and based, to family XXXX.

about excited really So those.

gives those it, portfolio, internationally. lot us are the with three kind the to ways we together, look but across of a So, at play

geographic expansion. is part second The

So, journey. our great story, while we've we're international got early in a still very

of to our the of of the XX% If that most peer U.S. most in revenues at are you range. We're look outside range the XX% XX% set, in

So, into lots geographies. we brands runway a those long go go, geography, have to to of lots of

really So ahead. excited about the runway

equally division. the And is some in important are thirdly and International investments key we making

Asia our invest quality, around emerging people in pricing of chain growth Similarly, APAC R&D markets the putting key supply some within digital in lay regulatory, and adding and our revenue we're in in community e-commerce So, management infrastructure continue in some and region. as maturity we to well as

very very portfolio long runway international, of brands. of So strong overall, a for growth

continue come will global invest our really We'll to continuing emerging HERO in extend new portfolio leverage and and capabilities to really a to for Most to So, important become markets, continue markets to of to the matter and as within acquisitions. geographies. brands group will our THERABREATH it's we're from our of we going resources into continue growth our key grow. our and portfolio. continue

All right.

Let's switch gears Products. to Specialty

aimed organically Products Specialty is grow year. each X% to So,

grew X% Animal that a about and at up of Nutrition, XX% year. down, two-third, XXXX, Specialty million this XX%. is between one-third $XXX broken grew which XX%. Just Chemicals we to almost business. break It's It at it's kind

under processing animal all largely It's probiotics, master prebiotics, HAMMER brand. the The food and & is safety. productivity ARM

whole host service in product lines order a of to productivity have space. we So, the animal

of XXXX, go was if international big a you part back just to the not business. And

species as footprint. not new we're We made also we as into to our into move XXXX, a XX%, well. continue markets, conservative we'll business. to international footprint, grow have similar our too it's grow to But going effort our and global our consumer international

what is swine dairy and used be well. cattle, to a now as So, business largely poultry

So, diversifying range. also the specie

we'll show with the is probably this that, So, slide. time this last

If fluctuations the include our linked terms been also cattle revenue. milk internationally, species sort you had we've we've often of dairy out in smooth our moving and and and our own Since to productivity we business in go prices. to in history, to back swine are our is largely dairy of diversified able

had won't past the have in ups years. we So, down cyclical effect we've that and

an important SPD. will last think showed this have this to but context I chart, time on the it's moving So, be revenues we stable forward much

overall, around nutrition umbrella in the We're chemicals. trusted internationally. multiple but aligned prebiotics, Dwight, HAMMER diversified kind both a around specialty the proteins. with ARM got available from & and species, a and key we're very probiotics animal & brand, of trends brand and Church So also and affordable growing We've

excited for those international. about pretty well as SPD headed we're So, as reasons, where is all

with So, I over Matt that, Farrell. will hand back to

Matthew Farrell

Thanks, can Okay. I bring it Mike. here. right. home to All try

of this consumer And we talk snapshot how the about before, we slide business. this seen a haven't company. You run our is

We have SPUs. seven

see You right. and the on or far international U.S. businesses the the first on the left six side

and over In baking ARM broken But And Care, Home but here. Personal see manage manage have you of Home Fabric brands, Fabric soda we ext. Care. wondering the too. Care, have these businesses. are Maybe a power under brands have HAMMER and litter. break are toothpaste & down Care, we international, we Care as Mike and in for brands dozens how an we -- that all very why HAMMER we down detergent. listed appears all ARM this described, In we the armed of an into just Personal manageable & over And and got So, most is Care, we

two-thirds the is and one-third export the GMG, business is have business the our We of subsidiaries

Okay.

going which to I'm here five through. principles, operating of walk kind So are

leverage The first brands. is thing

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is the founders second company and stay. in company environment. were of XXXX, and to thing was the that's continuing long-time friend The founded the we've been of a environmentalists This

going to Leverage people talk I'm about.

our We company. of people wonderful in group have a

employees. We have X,XXX

over have $X We billion in sales.

now focused We that being per employee many assets, have of long-term who leverage and we're sales are of you on over $X million asset-light. holders

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mentioned Leverage already that. Okay. brands

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of good in reminder that So probably And the soda. XXth pictures if this birds. you've It's birds, seen went to our they And putting cards said, save baking trading a of save those were boxes before. were century, you back the we planet. cards the

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go offset over Trying River committed now in into right, we the More I recently, Mississippi we started to we carbon all plant science-based put the trees if Valley. And air. far we're that the dioxide to to the targets.

amount to CapEx COX atmosphere, So science the into out reduce what remember you and two atmosphere. when grade you plant spending is science-based from of trees, on you of put on fifth focusing the targets, take we're we the money

right. All

goals. are some our here So of

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put ours, like of the company tons small atmosphere COX into a annually. XXX,XXX For we

So this is really important to us.

XX% You like trying annually. of And usage of all there. solid see, solid from of science we're reduce Water, targets we'd based waste water below to mention recycling by in waste recycling, our we sites. XX% to the

also is past our recognition partner a important Choice the our seven It's It's of as EPA Power. of lot And partner, our Got choice management important safer FTSE, consumers. the our that, Green years. this it's important well, been to employees. the to we've employees families but important team. for a Safer about to to

top so for can younger consumers you it's really a consumers. see, today, many So priority particularly

principle to leverage All is fifth right. The people.

people and of a ideas. is team. we supply say just highly people to company. you management & in bet people, bet productive execute But you the management those XX% have company. you, the invest I Church ability it's ideas company, are of can their in and of strong and place people we chain, backbone Dwight. have a those we where in our people we That not team, tell the So And a on matter. you really X,XXX When that it's have the also X,XXX

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literate. following structure many And know have a makes compensation from company. it's years, We simple the gross financially you for Many margin, company in and is us does of what the revenue, it cash EPS. that

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if don't you're You you don't to going new in capacity put think grow.

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in returns And do missed you previously. good turn I well, to case the want repeat criteria great acquisition If that just All it right. returns. you you into can

one their category. we brands number number in two that So in invest or are

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heard but about today, got So margin strength, only in capacity we both one future terrific you advertiser. said, in you are jacking through XXXX."We product we and We've line there us We investment years. the as but expansion. top in gross We're the strong new going well. fundamentals got reported pipeline, you in took the That's "Hey, help others not release, Rick into saw to a got 'XX, only got expansion. organic. going many

generate And of finally, we cash. lots

the that, play And so on we'll power on brand. some going a of next Q&A and And the for while. little gang. band our management hunt the I'm stump rest the we're do bring for All with up right. up Come to team,

Matthew Farrell

All going you to right, on I'm first. call Kevin,

Unidentified Company Speaker

There's coming a down. microphone right

Matthew Farrell

get mic. to want we a you No,

Kevin Grundy

Jefferies. Grundy, Kevin Great.

start the A the Matt for presentation. with certainly with group question you for thank So you.

the for well. the dealt certainly, So year, that excuse competition but of company the yet most challenged, get certainly your the economic environment, me, challenging one more has probably was as to it with challenging last that

So there about think year postmortem think as you you What relationships of do retailers. kind about chain, your a portfolio, supply about of think your are and sort on community biggest still the forward, for you kind what's you lot investment with of the then in company? message the you the of And looking confidence that the operationally a the be target? should say learnings Evergreen would like for

Matthew Farrell

Yes.

quite It's question. Okay. a big

creates I options. And chain and into year, options. didn't past the and the our we the the this think have on every companies it think recession supply side, have I flexibility pandemic going so certainly COVID,

our think is XX% I our target now have redundancy. of And redundancy. XX% had than materials right less raw to

next years. And why that couple come way a I over be the the focused last we've ready So we're earlier event. black swan long that's -- of on said for

XX% goes, we portfolio did portfolio the portfolio And backwards. as went well. of our far had of exceedingly the XX% As

That it the we're has and and certainly our of to underrun. some is supply. is share, vitamins as that sales both turn on us respect to as but well And to with hurt market ability self-inflicted, in starting

discretionary pullback of it's certainly different. a But 'XX device, also purchase. a a towards grew gum digits high then is as a secular learned the And from device through 'XX, in in FLAWLESS. because COVID, lesson and health. respect do single And 'XX, 'XX standpoint, 'XX, struggled have 'XX WATERPIK our the with you but is 'XX. in It WATERPIK to that's in trend we interest FLAWLESS business 'XX, XXXX. bought

only et But we would say backwards our bit But gas, differently "Yes, turn that's going and could little going got there open but the in that's us, forward. but to we're been and go around, growing, went on. year. are And eyes this many now also had we'd a we've to look the U.S. but internationally say, cetera. recession, the we Why -- for I areas not of okay, I $X now that back company going be

Kevin. Thanks,

Rupesh?

Rupesh Parikh

my taking for question. Thanks

I they So guess, play gone still they history? Or to in is are any just than last guidance where looking look back -- for year? at if new pricing incorporated been? forward your the Have out you've versus on is, this historically year, there And to how pricing, this do better you expectations? pricing they

Matthew Farrell

Second question, price gaps.

Rupesh Parikh

how they versus elasticities, and just versus question, expectations compare your Elasticity history?

Matthew Farrell

have elasticities the Yes. it the been surprisingly elasticities year. first. We'll past And over do good

think I and heard CPG -- probably of that you our from all competitors. So

your of was… first question The part

Rupesh Parikh

pricing on Just [indiscernible].

Matthew Farrell

following: think pricing to bit off, he's that's in in in chance it the and I'll answer a start my better be would Well, be place have have a to just sold was already. going answer, little February in but the of already we and but to going Yes. of March, marketplace

-- it's we and have price order going away. more the through the quarter get anything push with don't we to fourth half hey, or So in to, in ahead becoming it's respect difficult to be exceedingly us got in because pricing planned of second

Richard Dierker

from X%. great The release, really price said, is and effective flattish. That like in sold was price the And in there's it's outlook we additional organic then had us in, XXXX. It's February. that answer. been XXXX We for were already that's volumes because carryover you a in had that's and pricing

the next year. really the So that's preponderance organic of X% growth

Matthew Farrell

Okay. Yes. Lauren.

Lauren Lieberman

then around Thanks. in In the release the this morning also a and notable was the of VMS there absence business. presentation today, discussion

cough stand it'd be just standpoint, get an in great and from flu. an from availability material also early demand internal on flu, raw and thought consumer where cold standpoint, things update a So supply to had

think look will that kind So where demand what normalizing do you stand we like? of on or

Matthew Farrell

reason good That's January, And and category is had January Barry vitamin But if and vitamin that in was year-over-year. Paul spike. let XX% huge you business in well. a question. Delta, because back a went Omicron you the Yes. year, it's a I'll and as the for to down last comment had you

you may only because the staff XX% we our fill remember from had fact, last quarter couldn't rate plants. slides, the just we In first year,

issue the an now. category for right that's So

over yes, our As had go, the some far issues year. as wounds self-inflicted we've

Our come to well. started supply back has as

and first the Now over want add win then But to we have consumer. you to dish Paul, if back to that. it I'll Barry

Barry Bruno

Yes, Lauren.

you $XX campaign think from it's the back When you're see grocery consumers decision in category. category. as are as up saw discretionary $XX, And category the as Omicron, $XXX a comping about making bills and we or we're vitamins. I regular struggling my stepping a

So now demand good going is rates we here. improving. slightly. back half to happens we're But as Omicron news, we what supply the consumer how Category get of are position as declining the our looks. it to be meet We're comp, into in past get waiting QX a to see

Lauren Lieberman

beginning in a what terms VMS of the giving of attractive lot is because I of just navigate much you not wide it's the how it's the outlook on and outlook follow-up range, happens settles year quick where curious I'm the margins, year's And just mean ourselves sense. infinite through year, it's with early But a of the range because out. got a category as the in room outcomes, actually right, contingent of

that Just full is curious important outlook. year the how

Barry Bruno

is three really year we -- but in of categories to pulling growth together, the where said three flows that be said XXXX, WATERPIK we brands, train in modest And in had we it's through us not What expected going Yes. and the it's release we the last got those aggregate businesses. hurt vitamins.

Richard Dierker

about not were been X.X% said remember, full at three as headwind. quarter, organic X% businesses true right? we that's going for growth. In well, to those have but a they headwind well, if for were year, as the We X% And would we XXXX, organic, had to those businesses. the X.X%, In

slightly headwind, year. the they're Just positive that of flattish next absence to

Matthew Farrell

before. Olivia, up hand your Okay.

Olivia Cheang

the My the But because, a obviously, you. question year Thank that said lower margins is around gross would you margin of QX. up you're at in cadence point. starting be

what bit we So expect Because embedded SG&A Is you. that is what's little you through year? be that the And in progresses? advertising? other QX. Thank expenses could that you the considerably mindful talk about happens pretty outlook should is progress there a as Or year up of? in as

Matthew Farrell

trust Rick, me do this Okay, you one, handle to

Richard Dierker

of to we that? mix Part To just want Gross good handle the up Vitamins the stairs of the margin give the me year that that in have experienced margins. half we headwind in year. WATERPIK, part because you back the something. you this front the Do of businesses typically like is of said, gross discretionary through year is like

fill right? that rates half. you in it of rates slide as the XX% Barry there part a Other our half, fill think back is the recover, saw showing rates up first fill had I in XX%

put into have really as you SG&A, we retailers, QX, gross and of of fewer improves. as haven't up as the those from SG&A. in fines release have truckloads the that SG&A timing well. higher margin got in part just quarterly things as you So grants is your equity we supply fewer all was

Mark Astrachan

Astrachan questions. at Two Mark Stifel. Okay. related

about think the do one, expected how from stronger had contributor, 'XX in than think, M&A, then HERO? fourth for What I what you the said to drove about And that? a which relative is we many M&A contribution So quarter.

Matthew Farrell

Yes. new Well, actually strong had really quarter acquisition HERO. It expectations. a we -- exceeded

we came say, we fourth And October. we more little it. had stronger But yes, opportunity Hero we as to bought this than business far I for in, in after XXXX, marketing driving that the also when consumer the in as I think yes, spend that. would a the it's is in quarter bought expected first

us. our X%, reported, Most is average So is is between going on range the the and -- organic. business. which see that's you gap which help payroll X% of that And to can

Richard Dierker

you to couple give numbers. just a And of

HERO year XX% end we we be We XXXX, it, the in it bought a $XXX million, would around said grower when XXXX. will for in

of that forward that for and X% XXXX X%, it's but comp, to and roll You out it's of about take QX going the tailwind the a means about you're XXXX.

Mark Astrachan

I you I what EBIT know on mean, the line, expense. And about said interest

from So what of there higher given revenue, same sort the contribution through? flow about

Richard Dierker

distribution, investing let more but marketing we're is talk we're right? more we for a HERO. for little national marketing it expand Well, bit, I'll cycle are and going a to Barry we as it virtuous to -- So spend campaigns,

Barry Bruno

national right? before so the going that. about a acne many realize what campaign the getting seem in they And But they people XX leader, educate are still lags we're obvious. distribution, they household launching excited national because versus penetration XX never form total tell about weren't That care patches we times, category as even that benefit about don't by campaign all acne like we're to we've because to from cases, times, had in first

that's new all at we're same as building distribution So the time.

us, it's strong with whole business kept think Hero they're great exciting a a They're I and pretty that today. by the So way. team, story. team We've the hero leading

So about excited here going forward.

Matthew Farrell

to over Jonathan you. Okay.

Jonathan Feeney

Jon Feeney start. I'll Consumer at Edge.

lower are let's retailers are gross wonder you better, but food receptive headwinds. say talking seems everybody's lot elasticities You event in to why quite how about the get consumers And CPG November, of margin talking need get to data I to to prices. yet companies that are companies hard December about and mentioned, they one that say, was Matt, a things

wouldn't until more pricing these the were little profit way? you maybe categories give could got So light, I you some the and us where a a in optimize of you pool you -- that if unlike -- for mean, why price more process that just elasticity shed -- looking bit

Matthew Farrell

a in to with have transportation, And what's in the it don't the respect the on price, data about And you story. is all way the et marketplace going story, cost without the cost works order price. Yes. Well, know I'm cetera. have raise to you to get sure have commodities, you retailers the

and the hey, side. need it's day. price then this So this negotiation we're seeing about, -- every We increase -- is lives and this it on a what Paul debate. is a cost there's

is. You can give is he the little world it a retailers with you. around all and the the Paul But that share yes, mic with can bit it

can You with justify only far as as can go cost. you

Paul Wood

he the it cost them you as simplify transparent be to that expect with transparency, that to retailers I'd story said. Yes.

in I being a think been trust. extremely we've successful That transparent. develops

and They're have expect and have world do we share when and being good is story where moving, a -- we come So showing Retailers we've these where different things. so been important, is and transparent very the controls in timing too. them at surprises. I we not financial conversations. demands And think

been and it. And timing, may I sauce. cliche a seem transparency say, and would trust do our So everyone has it while should secret

I think that's have the we as elasticities well. and have make what's allowed us the we to choices experience

Anna Lizzul

conversation I of marketing Lizzul Hi, with was thank you. we back Anna if go America. Bank around investment. wondering could to the

been successful are in recent how discretionary some have planning and care then this a about maybe increased HERO less success between given legacy your you just like can personal some versus maybe allocate the more the side you how talk past? your to of if bit recent more the of terms thinking versus little maybe wondering which Just about investment acquisitions, more in you're of And just brands acquisitions some of acquisitions? the Thanks.

Matthew Farrell

Yes. acquisition, Barry our department, comment is With on in I'll M&A hire let marketing. Dwight person we acquisitions, and which like. respect church one to the only entire very

you that but So to saying, can be, what's might it we're this be category. not wouldn't only categories in buy sale. a it have be people Yes, are dozen for wonderful studying

as know are is in sale, and our So particularly products, anything for that's well. of the what you acquisition criteria we that's U.S., consumer aware

tube. in six had categories, different put many -- on, in But can we just for didn't to the we box. economics, so because so in lots things. had last good they a make many the but think we've how months, that in we're anything potential even a a -- passed products, to We know can powder bottle. three We different And acquisitions they We we we're there's didn't put that liquid company. able diligence good in we of long-term make

company. it as So But over net far I'll consequently, can might we to as that on wide throw pretty take a dish able we as a Barry. things be to,

Barry Bruno

is say putting grow the hero on of brand we seed and lot or they're classic a bad brand maybe a say in as breadth our is gasoline putting their we're in maybe got got brands. that incremental those a approach kind thorough we've It seed dollars a we're and milk, Yes, But portfolio. take, of it Sure. them, spend brands going. XX% to won't that's water won't is there's surprise I going a you reporting We've gasoline you and classification is where grow is and surprise example. if seed of better a against see the sustaining

but brand want in put about like -- those it. we that's know We'd to allocate it. dollars spend we make classification, those how we hard and where choices our We always more, to

We how certainly is think brands, you're to it. choices, won't make brands that's to I of where to got XX those them. we specific HERO approach one So you've work. put we When hard power get here, but those know dollars into but going

Matthew Farrell

Okay.

to Let's table. move guys. another Thank you,

Filippo Falorni

have about competitors seen your business you levels. any your reducing of wonder see categories have inventory their of you if impact. most guys and particularly talked retailers Some impact the in what I

Matthew Farrell

Yes.

we this deal with Okay. major significantly can But fourth Well, day. in e-retailer a will of and every the you, their tell inventories Paul I quarter, Barry days had reduced their supply. and

fourth let was retailers, a of that. to respect did a lot Take it recently, more was but happen comment with see that the quarter. Paul in it hit Barry but that I'll XXXX, on So away. and pullback We midyear more

Paul Wood

the more to their and constraints -- it getting want it's By own within to They have a consumption. some their ship out stores. consumption ship have large, their their network. or challenges large, But to by at own may other say I'd Yes. product, model. a of their to DCs ship we're DCs and but retailers they may to back

of last across more the matter see up. need what or not like a do see. stores catching shelves. You inventory or what Matt I just But on book shelf. the side of country, other is I you guys feel It's We the year, described anywhere in that

we warehouse network, at that And to get get through product to just small. their back back but very want their -- want through getting and they

Barry Bruno

it. was in for We felt really though, QX and QX, It sure.

Christopher Carey

Chris Carey, Wells Fargo.

been from which to scanner a right? have in So are trends, to there underlying in what this see between your quarter, care even results, consumption continued we a we've than scanner. in XX-point a ship lot stronger might standpoint, delivery what see you did can versus So gap personal

your the point to a remain right? call tailer, shift seeing brick-and-mortar And because, so. non-e And results in that actually the right? core to harder large we again, it quarters in back Are e-retailer, to underlying what you're what a are personal you trend than so is noisy, but actually care to and understand reporting, retailers where to we're starting going consumption is, consumption getting making to it's strong lot here get

inventory a will would be front guess I'm the actually consumption, ship So the that of development. seem is half I if to you're back hearing volatile positive what year. that to But to in remain

to So just trying I'm square the.

Richard Dierker

in personal universe happening you and happened coverage see, Like care discretionary view -- what's don't or what can you're guys IRI difference your the business. this through the business. between on on side really is small major you I that in the is or IRI actually the remember Nielsen versus the Chris, the Nielsen see what's WATERPIK WATERPIK or

smaller for as a largely FLAWLESS is well. view the bit business Your

of the is disconnect. consumption a well. back, those a two part really things step think big portfolio growing the lot of I take are But a

picked has add to degree. see distribution gets you add? up as up Hero would greater to get you just think It retailers, Anything correctly. a I guys see other scaled and to to that, that going you're

Paul Wood

had if you retailers lot going those are, you see be does Yes, first. that's funded and matter, would of it say syndicated answer and A I the just I you was what care to where see. of can piece what versus are what in right? brands personal the not we guys an the business it's kind that And those some tracked is the of seeing system. way just excuse, the to

So it. I think Rick hit

Christopher Carey

situation promotions impact laundry certainly quarter, it And just the back, and is it business. -- whether on related, like the activity, chain And if reading up, again, of impact inventory that promotional more you specifically back be seen helpful. laundry. that describe just But an wrong? any your price you I was on looks behind would promoted the come that improvement mix could, came consumption. quarter? And but just supply improvement on Was in shift as supply offensive the am the I We've can

Matthew Farrell

Yes.

And with can Barry on lots then of you categories chime promotion. Let some the or for have help generally deal in. Paul or give sold that Rick me

laundry in QX. liquid It's XX% versus under So look if QX detergent. for okay, laundry you XX% at see that in liquid QX QX the you'd detergent, was the sold

look you If dose, in sold deal XX% it's it on was XX% at QX, QX. and unit in

other points promotion litter. basis lot that's of So is it's move. XXX category a the And then

QX. So XX.X% on sold in litter it's in was deal in XX% QX, and

So you've seen a move up.

of on kind laundry still detergent is is sold high mid-XXs Now teens. historically, however, liquid deal. It's Litter, typically low.

it's So hasn't where the of It's couple I were in things a spike. gone ahead XXXX. the as ship did it the QX rocket of gradual. deal a year. quarters, up evenly a similar have we throughout little point or heated what we to but And in sort look on our sold would say to bit big to last probably it's

if chime anybody to can. in, you wants So

Richard Dierker

would a low. were a drag because we also really year-over-year, promotion. say lapping Fill yes, I as have didn't we're where levels much it's period

so from have yes. it base Is levels been is of we a it And promotion, our year levels what is year-over- off now historical as back get now. normal to offset drag,

Barry Bruno

but we've not normative wildly that I off get to historically, allowed advertising say, But would and are at levels. to us to that allows We're where supply us to levels, been trade QX get in back normative back right?

Matthew Farrell

Okay. All right.

life. to Coming room. the of side this Finally,

Unidentified Analyst

bought of remedy also nobody right cold. was you be are take where time question think M&A. a something you differently a sounds I'll what's lot in equivalently like forgetting a company about But perhaps if about a the at in also think second looking you're that It cold discretionary shot where feel getting when discretionary it of context ZICAM was And M&A. you it does of thinking I your business that on now. was the like assets might earlier future in like about at struggling some

just your... maybe of maybe discretionary the is you in how mind can has about table? So Or you're thinking discretionary still talk this part terms recent experience your about of on M&A as changed about

Matthew Farrell

it long to COVID. opportunity is a having for many ZICAM its like in to not the brand that is opportunity Well, everyday is And form. now of ZICAM an consumers also brand respect ZICAM for the And of Emergency long which a a buying to middle use. And with we brand to term similar and gummy is we bought converted has ZICAM in Yes. episodic sort a strong a go That's -- is ZICAM thought let's this the we term, very opportunity minute. has a We that equity. were brand, business back renew grow.

were keep to in mind, with got Vitafusion. supplements You we in

of a it for made on that add sense lot So I to to as can. us

little of a give to just context. So bit

Now in going as brand, yes, forward. recent far experience question if you're attitude going to a discretionary the influence our -- those with over buy downturns a as how certainly, is respect the the to the vitamins, performance going brands -- does affect to discretionary nondiscretionary, versus be FLAWLESS economy with be because, and The And to going certainly of year. the obviously, WATERPIK. did is marketplace resilient past

doesn't you hard But going it's to So put extrude devices fast. through tell will it we're next influence it the It can and going you them. that. that mean We're does -- I forward.

Steve?

Stephen Powers

Yes.

Powers So from Deutsche Steve Bank.

go a to to So question. back I pricing, wanted two-part

in to in just what is scan the quarter seeing in one first we're relative pricing data. came The light. Pricing

that of see. So gap don't much some I the be the can But we would that just how bridge you mix how promotion, is know don't is helpful. that much of of that

up to up messaging pricing for you as pricing and inflation volume cut and resumption are bridge. productivity you expected lot and and it's your your margin have emphasis more taken not And not a is your which and has in catch gross as taking, forward, then great. cost of still net as fill much rates your mix, gross is go margin as in is value. on All

thinking to just is So question your a versus just John you're price cost about a I if how that? why philosophically, to not favorable price And more, guess, about Feeney's inflation close gap. bit this last bit that little you

Matthew Farrell

dish I'll it to Yes, and I'll start, Rick.

through as flows -- impact we be was far say and number which QX, X. It's number earlier also deal but to and the and fourth vitamins as I mix would So year-over-year two as as an about of sold and the certainly, since X, kind had But goes, factors in impact went two far mix. we quarter had up promotions, to respect up heating talked gradual, with that's been still an the heat quarter. on the fourth as with one price mix, respect would it WATERPIK trend

Richard Dierker

last was year to -- lower-priced of where is to in quarter businesses. flattish were headwind. the end if talked you, the seeing by the XXXX, slightly, of vitamin That's shows in margin we've but units. from bridge, all the the down bridge dollars example on look of gross you an WATERPIK negative XXXX, mix, half WATERPIK units together. the down components think do tell priced We for you're on first I'll they're up flawless as on as switched a inflation, And okay? trading gross that Yes. everyone the But it margin we What the there at again is

out if, remember, first pricing clock wasn't to We But in out we first And a but were because overall, our bit. we've knew in that leader to you pricing. not pricing good done. category. with it litter just we really if rewind the We're the We feel what the and go a laundry about go little were when.

so justification and had call the And moved. We we we story. the had

And so we in good pricing. our about a now. company It's core feel really competency the

people every we a do have be I they would and department, all should started say we and look what where at should we we pricing about pricing and seven that day ago, just years do.

the have selling all it in these and we so And back we plans retail to have we've and at a because place, successful have up. facts had transparency, we

Matthew Farrell

not also what's just with and to have be you with category, we've the And cognizant heard raising what in you when going gaps the dynamics prices, raised Steve, about so to competition. of price as But timid we the we're was our as know the respect price. our history on category

So -- far with as the further. taken moment cost justification same that beaten we I are we and go mean at I on because we the can it need few we've to as but do topic, John think you as think

Okay. Andre.

Andrea Teixeira

Teixeira Andrea from Just JPMorgan.

and Steve's in a XX% the side, of had of squeeze were on year, pricing. your to Just volume quarter you X% the on businesses down. for that big those to question the And also fourth the full guess impact I

if into you're thinking as the as seems of -- that is in adding volumes. think on the mostly bit opposite to It first XX% of year, a like it's on other of Is grow we calling that half existing going elasticity this first I'm for the half So year? right, or you're volumes. decline the in a the

Richard Dierker

say choppy for really the other Yes. those the of All were businesses The doing just is are six same more I business XXXX. experienced of be first months the QX. that said drag to up, in we we what well. right? would the XX% going from and it's of it's Volumes

Matthew Farrell

We've the got room. on the of a side mic

Peter Grom

UBS. Grom, Peter

you a bounce showed nice here have the about year So over time? you're performance in And expecting to Rick, slide gross recognizing margin talking back then 'XX.

You're kind XXXX. or question asking so margins. and guidance of still the points And don't XXXX of basis kind below in of February here want gross sit I XXX for XXXX, to XXXX

to opportunity expansion. But on spoke gross multiyear you of margin

of And gross the can that like priority about get think how guess kind of margin. that as I back over you to look year here, big cadence forward in and of time? back to a is So quickly level of XX% how the getting terms you

Richard Dierker

categories. company to to margin. probably love, a Number grow good flow Yes. brands, always in two generation. cash consumers priority right? X is grow That's priority in brands margin We're our share cash The expansion time great number leads over for Gross leads question. to flow, is known gross the right, EBITDA have expansion

And I few us really would say, years. next give help the over two things confidence

you If inflation. back at normally have million we $XX history, look our about of

long. XXXX, million XXXX. been of We haven't like calling inflation decade. feels We're so four it three million but in to in feels $XXX had $XX it XXXX. million inflation, $XXX in like $XXX million for years, a It's only

the That is even right? And well, inflation. to program not alive days our normal, normalized is going stronger been. it's of than productivity and ever We're meanwhile, to return

was XXX as on So productivity. plus bridge, the think X% saw to We I that to closer closer target that in points. -- you basis

THERABREATH a continue gross that's expand two, have like as too. businesses So expansion. globally, if a I great then going And great and going equation think like be tailwind normalizes, number to and to way grow that's our that margin HERO to we're

Matthew Farrell

Yes.

Just some math.

a -- recalling think years It's basis just points back, our I few XX%. in the improvement. pre-COVID, XXX gross XXX, margin XXXX XX.X%

effort in make able going to happen, the number. today. $XXX minute. is pick of huge to be used a of in week environment. go I help cost on from By return X% people able it works you Duffy add So Matt XX% we're commodities the then a kind annual. it That's to the Rick, input so Spann Rick for the costs, sustain that to He's to what about target-rich over and way, anything here XXXX. we to but XX.X%, And to good forward. the to that savings and It's to big for of margin million. target drives program, future. we'll a referring any that one expand It's gross midpoint, are that's And great dish But sales

Gun. Top seen all You've

Rick Spann

Sure. of in Matt our in program. We on the get lead -- lot program, as now said, culture. who's effort couldn't a our Four room, it beginning. in to brought increase a made the program. our Matt We good was It's of we years -- to company. the our great on the productivity traction And push to Duffy conscious focus ago, a part

We what to do cost else we asking have drive marketing leaders savings. us can

go focusing cost those have R&D on We more with whose sole standpoint. to is community the effective it. focus team break figure out from a engineering a created to products We've market to value ways products our and down

really of much years it now bigger than So the savings culture it four it's part driving ago. is was

Matthew Farrell

Yes.

out our point as call-outs, to actually stage. is department As neglected that entire the on here I M&A far

please look want you talk to So happy to Class, to guess we I able in questions, year. him I this was today. person it if you. and Any were this concludes next All that seeing to so no, do year other after do. right. everybody forward Thank

Church & Dwight (CHD) 3 Feb 232022 Q4 Earnings call transcript