Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Matthew Farrell

Good morning, everybody. Thanks for joining us today.

Operator

Good morning, ladies and gentlemen, and welcome to the Church & Dwight First Quarter 2023 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 risks and uncertainties and other factors that are described in detail in the company's SEC filings.

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

Matthew Farrell

Good Rick QX questions. joining a for to call Rick turn morning, for I'll CFO. over up, everyone. with And we'll our begin the when the us call review wrapped And results. today. the Dierker, then is I'll of Thanks open

growth revenue outlook. was exceeded So our the business. XX.X%. including sales from HAMMER quarter. QX ARM HAMMER & in was growth and QX a several laundry ARM grew of to & sales international our reported litter Reported X% outlook X%, Of sales solid XX.X% X.X% brands, our exceptionally stronger and THERABREATH, and Organic beat Hero, thanks results strong

news fair vitamin on we were say and and the The business sales their top both also that right had bottom hit original degree other conservatism the line. line it's and to QX finally, good in business WATERPIK our of QX plan, outlook, a that expectations. And is

our Our of reflects now strong demand execution. the is improved combination consumer line both premium also growth. growth focus revenue the resulting The of strength value over on which fill, XX% QX is case and our and in top in and U.S. brands,

we sign is sales volume Something expect net encouraging in QX, declining after in full quarters, now an else our noteworthy, is volumes and that last we had growth flat growth which volume outlook. year the in six

especially of above which sales QX, organic be sales And was sales online in expect we as In was in than full continue XX%, and and outlook. $X.XX sales by higher to our global online a higher-than-expected $X.XX was Adjusted $X.XX, U.S. business, growth. that percentage over posted international the for to our which total year EPS was XX%. XX.X% EPS the driven

our internationally, private stable private each historical label I'm going to and comment domestic on averages. weighted in label categories. with Now And consistent is business. Both shares now remained

is up First the U.S.

sales organic quarter. and gained XX market brands The power U.S. in the held of our growth, X had consumer X.X% or business share

a Now important start the few of I to U.S., look with to I and in laundry. want want categories at the

the look premium grew X%. big detergent X%, at value while we detergent picture, laundry declined If

down detergent So value the into trade to XXXX. continues

During the & laundry while category liquid ARM grew detergent HAMMER XX laundry QX, grew basis by share liquid the grew in ARM X.X%, & points to HAMMER XX.X%. quarter X.X%.

to the consumers HAMMER laundry for more & So migrating we have the a ARM HAMMER brand detergent, the with similar & to recession. potential last benefit to ARM long-term

grew XX.X%, Now over litter, in grew litter the HAMMER category while & ARM XX.X%.

market ARM our we our is a the quarter. share So & HAMMER from premium see down & box. orange We litter, Cat gained ARM in HAMMER trade did Litter value the in which to

staying & are in So consumers HAMMER the franchise. ARM

Hammer Give & competes it which campaign, is resonating met in categories And the the HAMMER consumers. our halos many advertising that ARM with

driven a the dry in Now share now in shampoo. XX.X% shampoo QX, up shampoo, dry was market We was XX%. up BATISTE in by consumption, XX.X% enjoy category which dry

we up more There skin bare new basis was TROJAN condom QX, X.X% condom X.X%. in consumption the raw condom the In category success and was our marketing. TROJAN gained market category, of up again, to thanks the of while share, points XX targeted

XXXX. in promised of mouthwash consumption with which acquired XXXX, when THERABREATH, Our of to THERABREATH acquired December quarter grew alcohol-free the performing we points bought of distribution brand, X.X XX% extremely we had most since we And THERABREATH well. great are XX.X% THERABREATH as just mouthwash. the recent growth. HERO has a acquisitions, share and of December it doubled in

clear mouthwash brand mouthwash. the two number THERABREATH number four total nonalcohol is and now the in

a brand & Dwight. be this long-term for to Church expect grower We

is ZICAM XXXX acquisition, December this segment quarter. brand in number with the a is ZICAM, Now share. cold a XX% delivered results one this shortening the also strong

XX% points latest which and has HERO, year-over-year Now to share continues the to expanded gained X.X a there excitement about deal the since as by XX.X% And treatment grew in acquisition date. of we by X.X% consumption And the achieve HERO total market HERO to October brand said distribution the acne acquisition, category. the great team. be HERO release, and our a share in especially around --

ARM growth. oldest BATISTE to detergent, category-leading has liquid growth. laundry driving are a dry going but of In acquisitions, the a share category From has category few drove recent laundry brand give the of I'm of share, XX% contributed XX% our category, which shampoo the XX% brands growth. a examples. our & you to category liquid category our HAMMER XX%

up in the over mouthwash. mouthwash but the of in the of THERABREATH XX% XX% makes delivered category category, total And growth

Next up is international.

across the business And sales and double-digit was delivered from headlined in by and all global international our XX.X% of growth BATISTE, growth WATERPIK subsidiaries Our growth by Global driven strong growth balanced in vitamins, organic QX, Markets regions. Group, of that the and femfresh, was quite gravel. our

States, And in the similar goes, unemployment as United as our have the international low far subsidiaries. countries remains to consumer where we

markets, many is Europe, so the consumer these in but food, particularly facing consumption remained far, energy and has in strong. However, inflation of in

experiencing as Specialty lower relatively And decreased QX X.X% business sales Specialty a full the imports finally, to us, In dairy in due remain the in China, Products. for low while market. volume about growth price organic U.S. Products market and are returned the it stronger small optimistic primarily apart. year is we to

right wrap to consumption by strong. my want I up now saying remarks is

launches. ramping the opportunity behind our of marketing are brands on expect Our value We're and in our more new future as have in to are And performing invest to quarters. offerings well support offerings. product we are our even this year brands premium our up Acquisitions track.

now, it some to more And give I'm turn you on going over Rick color to QX. to

Richard Dierker

and Matt, everybody. you, Thank morning, good

We'll with EPS. start

strong products, HERO. Reported XX.X% gross consumer was EPS was demand continued our higher-than-expected adjusted to X.X% better up for the prior was About the year-over-year X.X%. than of The up many organic primarily quarter revenue reported $X.XX, half up outlook, revenue of $X.XX margins. sales year. and due were growth First our was $X.XX and

in once driven QX. again pricing by were sales Organic

However, as flat, growth confidence segments, right volume was Matt gives that go gross this encouraging to covered was mentioned, so we fact I'll us margin. year. and the into that later will Matt volume return the

first costs. and gross the acquisition, margin higher XX of Our the increase due from HERO a quarter was impact XX.X%, improved primarily a productivity ago, of of net basis impact manufacturing year pricing, point to the

XXX Let from flawless. the a XXX Gross acquisitions, by from of me a you offset was basis due XXX costs, positive made of point XXX from mix, to to positive impact charges following: through and points price/volume manufacturing positive drag QX margin bridge. productivity impact the basis XX basis points up walk basis inventory currency, discretionary from points primarily including partially brands related basis points higher a

in expansion the For throughout the margin improvement year, year-over-year balance sequential year. of expect gross we still the

Marketing last basis marketing. net $XX points Marketing was QX year. to higher percentage a than Moving up expense of X.X% or of as year-over-year. million XX sales was

SG&A, XX increase basis year-over-year. adjusted Other QX SG&A due million million, interest For expense points rates. increased $XX higher all-in an to was $X.X

of debt We unchanged do looming rates interest expectations for from refinancings. the have long-term Our remainder our not any guidance. the remain prior year for

maturity. In fact, of next our August the of is timing XXXX

basis compared for the XXXX, effective points. For in income XX.X% XX.X% quarter of our an was tax, rate XXX to increase

And expect We full be approximately year cash. now XX%. rate to to the continue to

XXXX, now increased to operating cash $XXX three higher in the We flow $XXX working months from For first earnings activities operations cash million year approximately full to million. and be of cash to improvements due capital. expect from

$XX The increase $XXX working million capital. higher million. expected an Previously, and we driven is cash earnings improvement in by

continues plan to to as and by be CapEx year to to make levels XXXX. $XXX million capacity return we continue full Our we approximately investments, expect historical

full now year And for the outlook.

be approximately range XXXX X% the our reported organic flow. for of be the QX X% are we our margin confidence our results in expect X% and of sales to of gross and now the to remainder now growth for We growth the We outlook full to year year to cash and approximately strength the sales X% EPS full year, sales, EPS, raising X%. growth. X% to expect Given

business, gross inflation. of as to approximately incremental to productivity more opportunities and and XXX in brands expect future we And now strength points. basis quarters. to We investments see the margin offset than Given capabilities pricing expect expand in reported year we the make our full

Our from pricing, remain benefit expected inflation unchanged the size pack higher-margin expectations Gross margin year from to and longer full is our the HERO concentration previous impact changes, outlook. of business. year full

new round as of As you of and sales a into to concentration release, the increase margin aiding February pricing that to percent intend items are litter for recovery went that effect are XX.X%. laundry. X latest in We marketing net the read on our of note two

to compared plan normal a XXXX. in both incentive SG&A expect of to to company's dollars continue in as net percent returns as increase sales and compensation the to levels We XXXX

investment a as well includes our in a as higher guidance marketing step-up SG&A. reminder, As EPS level our of

we growth, QX, to and a For The it's reported and would math show sales approximately approximately sales margin expect growth outlook marketing sequential but have X% a in and X%, gross higher explain. organic spending. of growth of expansion decline strong sales easy

will First, distribution in X% pipeline QX QX. not for accounted fill for of repeat HERO growth in and that THERABREATH

around is current comps and impacts quarterly The that year. how other the

last of was which to QX business, large this a tougher case leads there year, improvement in fill For to the year. compared a QX last in to QX QX domestic in comp year

organic XXXX, X.X% was example, As and growth was it XXXX. in international QX X in in in our QX an business

As share, $X.XX X.X% QX to last increase EPS. a is from a per EPS result, adjusted adjusted be expected year's

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

Operator

Wells please go comes question from first your the Chris For Instructions] Chris, line ahead. Fargo. Carey of [Operator from

Chris Carey

Hi, good morning.

Richard Dierker

Hi Chris.

Chris Carey

- wanted just to I So ask about

Richard Dierker

Chris, you're out. breaking

Matthew Farrell

Chris why in to the back Operator, queue. we question and go get next the don't can

Operator

No please Right. Sure. your next worries. question. for One Right. moment

comes ahead. Kevin Kevin, line from next line for Please is from of So Jefferies. open. your go it your question, the Grundy

Kevin Grundy

Thanks. me guys Can Great. morning, everyone. okay? Good you hear

Matthew Farrell

Yes.

Kevin Grundy

Great.

gross So I start on the margin outlook. to wanted

of given how about key that a year drivers bit some the the the potential sort of start reinvestment. the that thinking with of strong and Some to little in how and there, tie you're differently you're commodities maybe in moderation seeing

was The to XXX XXX now, outlook the margin prior on gross up So XXX. up basis points year-over-year. outlook

So on how productivity maybe Rick, commodities the and pricing, the better. of you're contribution sort comment seeing levers? just modestly key from

had sales, get that we if about have this year, should of of And the advertising how the year. expectations? restoring and that into margin kind was marketing advertising of then about in of just context least is Is you're chime Matt, be How XX.X%. at within exceeds thinking reinvestment follow-up. XX% sort function, XX% the the It on to maybe levels. could there of a gross and coming sort the stair-step accelerating thinking a thinking potential marketing maybe you down been And to was I thinking anything want

Richard Dierker

go Thanks, Yes. I'll Kevin. first.

margin gross year. I expand and to the expansion in expect in throughout release script did in the QX. think the than gross really, margin, that we We we improve raised That's expected to year. do said -- my full better the we we why continues

From pricing as inflation there we up through There go the likely year, as will overall, of as year through be the perspective, less less kind and we productivity be go pricing will ramps a overall. well.

are investment as commentary in to those things all tailwind. margin, So on overdeliver extent we we gross think the -- the release And Matt? will the that's that well. why be we put

Matthew Farrell

Yes.

asked You with respect to question good a marketing.

to going And kind fill everybody said, with that to as in a for really all back. of cetera. a XXXX. year, We It difficulties was full and basis. halfway the that back sales let we we're was us. And from point we some to that contributed in marketing XX%. go year build rate, to a And XXXX, last -- first low can least, hey, EPS of there et was we a see you good quarter. percentage our knows, As through want At our We XX%. on to of flow had what get

to estimate but from X% X% take to with X%, So we we always view up our a took to long-term the company. X%

position better XX.X% to like to flushed, So this, than years as there's few sales. been that have we've extent and percent three to in give we're go a it's opportunity we yes, And since been a an whenever in future going even performance the a destinations. of but higher us quarters, it's

First growth. be is going to

So be XX.X%. looking than to for we'll marketing. we pay Can go higher

runway of lot a have we international, there. For

product So knock help for do with year one next to year could have to after. or out scheduled regulatory, might the we that a help get respect there thing us been third-party registrations we

repetitive And then And And And standpoint, there's we that projects as companies, from trying to. R&D projects transaction always discrete allocate investments. well we company. we're we're some also like most IT the in efficiency there automate accelerate are automate an processing can there's can this to to -- place. always

respect the focused our And finally, to sustainability. with we're really environment, on

forward alternative projects well. packaging respect to there could fast like sustainability as that we with So are

degrees so Kevin. here looking we're So us of the of spot rest good the year, gives forward the in it freedom, a for

Kevin Grundy

Yes. just I Matt. appreciate get the comment. If more, I one can

is well. Is Just quickly? And in better, Rick Is relative brand. it for you. ramp and modeled, the why had I performing Presumably folks outlook of own been then Is much is that? Thank HERO maybe both for on on better? the -- seems velocity be just updated on. thoughts distribution than how as I it sort more and think. your maybe to to pass would expectations? the coming think your why? it And I'll And better,

Richard Dierker

couple a of Kevin. give It's comments, I'll Yes, Rick. you

even expected. think we we are better And I expected. think is gains than faster the TDPs are both than we Velocities better expected, than and distribution I answer. even

in HERO and TDPs commented XX% since -- business think bought script, I Matt higher the for maybe about we're we the he already...

Operator

the For your from Fargo. line question, Chris Chris, it ahead Wells question. from go comes Instructions] open. of next the with Please line [Operator is Carey your

ChrisCarey

morning. good Hi,

And difficulties the the sorry about there last in question. technical

a remains ago? an we months stronger seeing data, kind from actually ask to just you're improvement. sales your sequential a business. business relative personal continuing from guess, you're I delivering can bit to which wanted And Clearly, just you just even what to gap to care what organic about few of on between a relative can this I see we're comment little what on standpoint. also of consumption visibility So

more the visibility when on in your to you like little any we organic much. will see better. a so little which bit start Thanks look sales think than data, a what Just consumption is bit

Operator

I'll All still By on way, can is we this lost Chris' we're I'll the the check line your still stop the move live caller? now at No, audio. just to over go the next connection. to and here. I Yes, you. refresh the just right. open. Yes, I'm time. way, we ahead and that hear for if the stream see By line Should let's sure. Yes. talk we'll -- try then, would

Okay. All right.

day, gentlemen. the So difficulties. ladies for technical good and Apologies

it [Operator with Q&A. Instructions] to So your from comes line resuming going of we're the for be a Lieberman. question, So Lauren next

Lauren Lieberman

Hello.

I were myself like again. the that Okay. to feel fact we in, we're live

Hi. Okay.

go okay, to my So let me back questions. just --

saw was domestic than stronger call it, So XXX It in basis. much Nielsen. I guess consumer let's like, was what we

called Kind just So retailer to track. helpful of anything there kind on of Rick, Thanks. inventory? about just curious, I us to X HERO can point curious drove channels. anything you But else, about talk was that? I'm what the Is and you I untracked on of any out just know rebuilding know, Hello? THERABREATH.

Operator

take Hi if is you can me. to Lauren, hear operator. the wanted This just

Lauren Lieberman

you. hear can I

Operator

Okay.

Lauren Lieberman

Okay.

not are being they some people I'm can me -- company. Now told me, okay, messaging but hear that the here,

Operator

Okay.

Farrell, Mr. so to for Mr. try okay, Dierker, -- redial. for So please

Just dial back to in. please try

Okay.

Sounds good.

at time. the I'm this standby. sorry please technical difficulty about Lauren, So really

Richard Dierker

Hello? Hello?

Operator

Yes, this is Kyle. I can hear you.

Richard Dierker

cellphone. our is this Well, Okay.

Now way. this we're on

Lauren Lieberman

it's can I hear Lauren. Rick, you.

Operator

call to now? can I -- Yes, the

Richard Dierker

Well, X. hey, take All right.

Lauren Lieberman

catch if me no? to? I you Did it you Because question or need repeat Okay. can my

Richard Dierker

No, Yes. it. got I

with everybody match the does think domestic? I for question how -- consumption organic really, was up

Lauren Lieberman

Yes. And untracked, about curious just Just untracked right? particularly channels.

Richard Dierker

We yes. included We some huge consumption don't think of Yes, consumption. disconnect HERO a there's the is That X%. -- actually. IRI

that's -- if that got so back out, X%. around you that And

is, our is untracked example, what organic you for IRI were or it's the say, consumption. So at would channels say X% as other we X.X%. And like is from businesses. drag online WATERPIK, And would

bit So closer. a little with the it's disconnect,

Lauren Lieberman

when HERO you've there you pipeline as updated being to now the WATERPIK, the you've at volume year, how and through the small. kind we benefit look vitamins just discretionary the for X of out I you was of any on volume thoughts which more a And improving when curious the -- is second up for shipments categories and on about THERABREATH Okay. company total year. full But thinking go -- I you're to total half deemed talked the about was what know year? company the there was on from called point and

Richard Dierker

Chris' that thought partially I answering got off. I Yes. was I And probably when I cut answered question.

that his inflect to half. and And because numbers. encouraging in So of end we the the script, they was to reason very three positively were X% said in drag in In personal a And is I those for And not back at were QX, it said hit three a it those businesses in release, expect about the internal X% said drag. XXXX, their care are big businesses, drag. Matt vitamins we closer they the furthermore, businesses. WATERPIK XXXX, a but plan organic

Lauren Lieberman

Okay.

you for need the be them second in to? particular yet calling to and -- So that in half? expect those up Or businesses not volumes don't

Richard Dierker

I to the drag in that say I wouldn't be expect it don't call would half. yet. back a just we

Lauren Lieberman

I Okay. we that's pass and anyone it will to Thanks. Got you. dialed in, can hear.

Operator

question, your For Oppenheimer. Parikh Rupesh the next from line Instructions] comes [Operator of it from

is line go open. Your ahead. Please

Rupesh Parikh

morning. you Good me my also right hear now? taking question. Can for Thanks

Matthew Farrell

you. We can hear

Rupesh Parikh

just guess on continuing I vitamins. just So

in category. fill in what right curious improved rates Just you're the I believe now seeing now your have vitamins. And

if Just you're starting see progress to share on curious the front.

Matthew Farrell

good Yes. vitamin month by is rate November, March, month which January, improving The a take December, fill February, thing. is really sequentially

As down big last then few you if remember for gummies, in decline X.X%. at quarter the year, the down, third goes, But to and QX look far you were QX as a categories gummies may XX% at the category was last X%.

which thing is a So I for good would stabilized, say it's us. really

to some bit But expected. of category share we a first was the And anticipated in again we stronger difficulties. the quarter, did probably than that. we because benefited our lose due we Now fill rate

the plan for drag improve should quarter. of hit a from And first we year. our the wasn't for business their outlook. So things the here consequently, on vitamin think rest the They

Rupesh Parikh

question. maybe then one follow-up And just Great.

you growth Analyst segment. at Day, the I expectations So for gave expectations know organic by

appears it stronger maybe least or products a specialty at is consumer So story domestic, international weaker.

have on the for segment updated So just year. by expectations if curious you views

Richard Dierker

Yes, company International it's organically of Domestically, actually SPD sure, between gets Rick. slightly total is X% Rupesh, the us calling that and negative to X%. we're X% to and X% now X%. X%. to

Rupesh Parikh

Okay. Thank on. Great. you. it pass I'll

Richard Dierker

Okay.

Operator

your [Operator question. of open. Raymond ask James. comes from question, your Instructions] line from the is Tong Olivia, your Please next Olivia For it line

Olivia Tong

pricing reads wanted any Great. Thank and of change on consumer, bit update morning. any promotional on to compaction that the just on I incremental extent an seen get Thanks. early impact U.S. took, a your you've view of in Good the the little you. particularly you levels?

Matthew Farrell

a also, about -- ahead talk Olivia. That's reading the will Okay. all resume also growth the broad student that unemployment thing stats suggest the of growth is summer. I'll question, is income same growth is data. have it's The we that we're -- low, remains clear I year-over-year other U.S. And slowing. And the the household Look, job although consumer. coming loan guess the late decelerating. payments U.S.

of debt. and the being that big think so but combination I consumers not trade consumers -- may of think value. And contributing a be intense is have X I millennials of down student deal, XX% premium all to that Gen loan and to XX% from

second was question, What your part? second your Olivia,

Olivia Tong

pricing, those it the compaction, and... any on around Sorry, was reads early

Matthew Farrell

some it been or years. past category on -- for the laundry detergent. Yes, Xx couple price taken and yes, the In like elasticity the depending taking we've Xx cases, or litter we've of

they similar between gaps were -- gaps to largely are price brands actually the the pre-COVID. So

say I that would now. no And story right there's so there

Richard Dierker

impact will call just early from concentration to that that of we any rolled expect positive. And but late it's QX, be out Yes. kind

Olivia Tong

Great. Thank you.

Operator

of line question. Dara Dara, next And question, Please the from your right. your line open. Mohsenian you. comes for Thank Stanley. is All Morgan from it your ask

Dara Mohsenian

morning. Good guys. Hi,

consensus The favorable strong guidance was clearly, to that QX better than So a also. expected. relative QX look for you

didn't fully to sales at upside you flow quarter if trying a necessarily full Just year full modest. more look you and work through the year. the Obviously, but in raise, the understand, EPS, to

a environment? is reinvestment back sales about org comps. but talked there the more questions limiting some sequential So sales, volatile org you just it the not assuming on And earnings, understand that there? sales, us acceleration you're just in and in the half Or help on earlier? org easier factors specific a Conservatism despite particularly are

So understand I just wanted the relative first to expectations. to that half Thanks.

Matthew Farrell

the three companies. we I answered think question into follow months for and the Dara. me, a We're - lot of you

certainty first And so and because the having through but falling just to always not good respect with not economy. a we're along quarter alone there's a necessarily

[technical that difficulty]. So has

the a to went we our I have to increase do view take put with all we we now long which marketing where higher. sustainability us. Kevin, money, projects. They're And So of or and all efficiency from growth, have place through freedom XX.X% available the can

we flexibility feel of we a like yes, year. going forward of So the rest lot got for the

Richard Dierker

the very raised quarter. back rare that it's talk we've second ever quarter. that our at And look that history Typically, if one you Yes. we after about in

So a of is this bit positive. a

Dara Mohsenian

on helpful. very FLAWLESS, give you the to performance sequential you That's a terms know detail you of consumer just more a more problem were in And to year-over-year some inventory recent little just just of on vitamins, little sort of couple on WATERPIK, then But as levels. a as Okay. I areas wanted demand well relative detail us of can both trend. mentioned retailer recently, them, performance, plan. QX in I the get

more give little you just there. Thanks. can If us insight a

Matthew Farrell

give on insight I'll some WATERPIK. Yes,

happy the hit internal we're number. their They with I said, progress in WATERPIK. as So

So affecting or not are down trading economy behavior. is to flossers. not a consumer But drag on the either Consumers lower-cost our buying outlook.

side, very lunch for important flossers. of to And to On offices. that's dental purchases and course, normal back high-volume the lunch are first of push our the with recommendations water

vitamins I year we going I the on and second we're the -- months, comps six -- it's easier the that little But will first half. to say choppy a in And get be saying think would the performed went I monthly fill now said, was getting as as category quarter. expected. improved in than the have XXs. high only the vitamin that into rates X% It down so first well, we're our the the better side And into

a progresses, share. be drags win in back on company we're position the rate. And going our it's better And as of that so total to one to fill

Richard Dierker

Yes.

stabilized So -- those expectations. are two and

partly is captured on an FLAWLESS. That's we we've limiting are end, our think that one have -- we're moving our inventory than reserves here, expected. Retail third moving forward. appropriately from inventory on inventories impact for slower we and The but

Dara Mohsenian

Thanks guys. Great.

Operator

for Lizzul of your question. Anna it from comes Please line your open. America. from And next of the your Anna, question, Bank is line ask

Anna Lizzul

for curious Thank Volumes question. morning. were positive around you're volume I'm much and be and so volumes. flat full good the you the the in to expecting for quarter, Hi, overall year. QX now

commented volume as in previously on You've on and certain categories such litter toothpaste. expected laundry, economization

So I was versus wondering or just of increases if you're price to benefit that trade maybe seeing from a more in consumers from reversal economization? more accepting are down

Richard Dierker

then start the positively to. we inflect on I'll Yes, full said point in the half be were just we two year. for clear, to super was volumes, add to and and flat QX, Matt in a and expect second has or they probably to and What

in in So we QX you back inflect QX, our that Originally, and down think can half. outlook to positively that, down means infer was they're be in QX. in going the negative

fill QX. So XX%. by delta we're That that was year QX fill. XX%. in A largely was QX because case happened in ago, year-over-year encouraged largest is case was what our

volume So we up there. to just make Yes. have less

would for of short story. And -- half. We're the in positive positively kind going now inflect I volumes to back to impact probably say continue the calling So be the year. that's

Matthew Farrell

is of that in to of add would to I thing pricing. our only the early some we were gate out with categories the that respect And

to greater. going an and is impact pricing on less time, of of passage the have consequently, us so volume, And

the that year, and the this for is great for is line again, us. So story investors company, expecting a positive the from what typically flat expect think we volumes

Anna Lizzul

attribute package outright changes? the just in terms versus Great. pricing to curious benefit would just And of margins, then size the and pricing you how

Richard Dierker

Yes.

that -- bridge. margin it into price/volume haven't gets the We all on gross mix bundled

would so times, is our have, the happening. outlook price/volume price the for example, size tailwind. from It also in in mix. that concentration February April, changes XXX increase, are pack tailwind -- at have it It but there. have still point would would And litter have would basis XXX that point it And list was laundry in that basis benefit

a than it's don't them break So any We out independently more mix. that.

Anna Lizzul

much. Okay. Thanks very

Operator

you. ask And question. Bill, next Thank the from it Chappell Please line your comes Bill question, from right. is line of open. Truist. All your for your

Bill Chappell

of ARM Thanks. And like taking little of laundry to Good & morning. on benefiting especially whoever trade power owns bit share Matt, the think down I'm old as kind their about you're HAMMER been how whatever commentary just because just brands. why it's the years, trying brand kind I Unilever now you've you -- in detergent, trade -- down. consumer versus understand you more for mean, just fund, from your a consumer of them the smaller feel

at stores lot or a You're you looking their shelf lot and of shelf the some brands space. of have all lost and a of gained those space

the economy benefit you're what that sustainable of So that versus regardless does? I'm like understand brand the think to where what trying -- seeing you it's benefit trade-down of isn't just power

Matthew Farrell

it's Yes, of HAMMER brand a ARM powerful ARM combination is HAMMER. both. very the We got a & $X brand. is of sales. billion of billion look, a it Well, Yes. & $X.X

value lots premium, brands, X%. just in when while all laundry to all declined of detergent macro detergent we able advertise different value. we're So ARM HAMMER at That's category, laundry across look X% look numbers, premium at grew the categories. & brands, the But

our category. it's So clearly That's happening. biggest

And then thing. we when the we look at litter, see same

the the stick where from power as ARM value to people have brand, HAMMER have a move box. you traded But our of black yellow our is the We we've to litter. box, consumers down these litter. to box a we the opposed box, And premium cat category which have with & the got serves a And within cat see that's where black over yellow different which brand.

Bill. probably of both, combination I'd So a it's say

Bill Chappell

just value for guess Are I the retailers and growth given shelf Well, or that. by the accelerating -- you deep deep value? being for extra more up or brand that for seeing or to follow on outsized the for space

Matthew Farrell

weeks, No, with of yes. would a by has Extra said We XX almost at We it strength. just recent quarter. Extra. hair say out And that's gained good missed We X I Yes, that of one. in a lot nine. brands in were shown the share

that that, could catching quarters. as us of future think for right, in trade we grower more share fire. turn That's positive So Extra - evidence a one down,

Operator

question, for from line Peter ask And the UBS. your Please of from it question. your your Grom line comes next is Peter, open.

Peter Grom

And, everyone. Operator. Thanks morning, good

commodities some cost was Kevin's from building hoping help perspective, on into Can seeing an were you previously costs input you're costs understand year. that of be less moderate? this what stickier? just you question. know perspective earlier get Rick, on you I where than I on seeing seeing you're Where be hedged us And heading you're would So you kind maybe to mentioned typically

we So continue the moderate, that how quickly commodities could benefit that Thanks. flowing through? see extent to to

Richard Dierker

Yes.

for us unchanged. Okay. And side. on and release, the said there's puts Peter, the question. were Thanks, that takes Transportation our costs we commodity for inflation down. are expectations In the and largely

higher. Our resin, slightly the is outlook

is is Soda-ash Sugar higher. higher.

Some resins are down. down. Ethylene is

kind but mixed So to our bag, a it's of kind nets of outlook. neutral original it from

tickle they They trickling it. start and and the you P&L down stay and be sheet. at recession many to commodities that the over say beginning buy you actually have looming. a to for hedged then time costs year down did just commodities into the was we come thinking down we the pricing, on of to would we have when before than right, takes potentially that -- seeing and to as in it you this few just those months expensed You're sell balance the go get year years, were less And material

So I don't know.

months, now, few see down be something probably then it P&L. you for and has would months it to a the flow to down within six If

Peter Grom

helpful. Thank you I'll pass so on. That's super it much.

Operator

Andrea Please is comes from ask line JPMorgan. you. Thank question, And your right. it the All open. Andrea, your of your from question. line next Teixeira

Andrea Teixeira

you. Good morning. Thank

I a -- just clarification. to So one wanted is

dynamics whole a one you in real One is pricing dynamics on the volume. have second other question. Understandably, The and mix these and quarter. the

come this towards else, got year. I end even you've to imply, You've -- last the and putting And But as the in. pricing understand year everybody you're some in your pricing that and beginning lap do the in put you of sorry, help of quarter. half, second pricing But as quarter the a some through? the have the guide still first new second you

just in then share real in which second reconcile been was -- remarkable. And HAMMER your is new gains, So we half to ARM implied price/mix have the should on question in trying on obviously guide? the expect & the

Just on liquid. wondering

think, Your HAMMER Have changed to price channels? Thank sticker quarter? consumers. seen dynamics exit biggest the more you & gain that some you as were, continue competitor shock that you some points these also in reduced I Or ARM you. share to

Richard Dierker

average, we Yes, is But is second Matt's the And -- think roll pricing. the take is half, a XXX, of XXXs. in we first the lot does the first comment second half half pricing think, I'll of But over. just half true, dynamics the XXX.

year So the full XXX. is

well. we So through concentration increase litter as there flows and our little February, do the of there's in price that and of bit, that's think because really a impact kind

So the in things a the those help are two that back little bit. half

Matthew Farrell

not any respect just Yes. And comment and happens with can elsewhere, our what it. be it categories. respect on We tell. quarter in with in needed to of recent too increases, to a what do competitors we or obviously, price watch would before pricing, to early but But two laundry, all our do we

What add deal. though I -- I is ask friends Olivia will that our on might think earlier, sold question and this

detergent at look liquid deal where XX%. laundry year and XXXX, if a And look is QX if look today, ago, So at sold-on XX.X%. the was at it you you it

change even XX% QX And So QX, promotions. another in year-over-year was sequentially, big XX.X%. and

the was deal So cat story was year Cat on litter, things And in year a first laundry. are different XX.X%. stable It's quarter pretty liquid XX.X%. sold a litter. ago, in this

over step kind been it's last the stair So quarter-by-quarter up five quarters. of a

In XX.X%. QX was fact,

historically, another on higher high XX%, And up litter XX%. in it's teens, the XX%, and this XXX deal sold-on typically So much about is the talked previous we've calls, bps.

be And guess would And promotional other the was XX.X%. I category vitamins. last year,

Sold-on deal in QX this is XX.X%. year

I with what's and So to on that pricing little bit think color on promotions. you respect more gives a going

Andrea Teixeira

one continue it's obviously, and similar But do but think will be this vitamins or accelerate to going that, go? mean appreciate dynamic? you're you embedding you a be I expect as that to we promo perhaps is cat backward-looking, to I litter forward-looking,

Matthew Farrell

but going typically, to plans. comes Andrea, telegraph we when our No, competition But to trade. never react Yes. would it we're to

Richard Dierker

QX going a a that say, was for promotional lot perspective Yes. And laundry would just little I through. like from QX, like

Andrea Teixeira

-- that mentioned, mentioned would sorry, incremental -- I'm you pricing what just you the that XXX come top is of the two from And front, on pricing clarification, the a that's -- price just XXX, the those on increases that's right?

Richard Dierker

the that's Well, year. full for

also break finishing price/volume well. that's as three. the is year from tailwind there's would that last that be it out mix partial pricing So line midyear, when we took on benefit a a And and

as year-over-year. brands, volume also an example, of higher-margin growth that's So

little better So in a half. second guess that tailwind but there's number, is for Andrea, the it's the and you, the a tailwind gets bit I in answer lot a

Andrea Teixeira

according X-ish. my So like all comes a guide, half of have mean, you That's you're about sudden should to and out if that X%, second math with what your sense? going say with I is -- right, pricing makes if

Richard Dierker

that. basis not saying not just that following by points mix I'm I'm the that, Yes, priced just itself. is is that also XXX saying

Andrea Teixeira

right. Perfect. pass All I'll on. Okay. you. it Thank

Operator

ask comes Escalante next the from line for question, is open. Evercore. And the Javier, Please it from you. Javier Thank your line question. your of

Javier Escalante

morning, hopefully, would to the tracked we're the Good me. degree in what built and -- everyone. And I hear double-click going of on ever guidance in to in see like channels. can you greater conservatism

term? any for impact built you. the -- impact in On second positive gap half detergents. longer to between in is upsized and just you of despite Do Is lift sales marketing in one see And -- or you correct channels well. going thirdly, do Thank of you higher the basically have wash on we trigger investment, for have because you a stock? restricted tracked volumes what -- second the HERO, the very doing investment report So are loads? half you it compaction

Richard Dierker

Through maybe third of the related excludes amortization I'll your and impact two Matt first. our second one one. But Yes. RSUs. RSUs has EPS even take to first the take and I'll adjusted -- for HERO, any

adjusted that's a outlook not EPS. our in in of So our or factor kind

So that's apples-to-apples.

gap little stabilize and largely is brands versus see backwards be you because tracked in when at short organic don't see consumption those go of continue in a all. And that's WATERPIK, some answer. little expect may our QX, like it growth again we should versus half, they or bit, back disconnect a the in of shipments consumption untracked to a close, really the much and bit between channels. of one, to you Number see our -- Nielsen And as a or

it's Some channels, of a HERO growth from in retailers. a whether reported also perspective online specialty few or untracked is

board. the I say, organic EPS made we're profits. to the to that talked raising across quarter. investments on going revenue we comment if reported So on a We've continue kind overall, would about We're full of had we great -- and Matt? year the make outperform we've And

Matthew Farrell

Yes.

the what XX we're forecast we as full our far modeling you up is -- As in at what XX.X%. for -- in look quarter, said bps. up XX first we're the quarter, what But if have goes, we're happened marketing we'd our And year, bps. be first we

XX So take record to than up as we have to be get And we extent in into have to same in our again had so we it a QX, the bps. it's pay-as-you-go. QX track more quarter. experience then far opportunity is going the the But we've

Javier Escalante

have that impact we myself wash see don't volume? up on And explain you is compact, for a your because channels? something side basically the track adjust if detergent I IRI perhaps Or negative you does can that cannot reporting I when on follow in loads, didn't

Richard Dierker

a XXX% happened round price they ago. years lot we -- volumes XX one They more way. were year compaction for And Round we ago, or just This happened compaction. when a ago, is These not Yes. don't us. five two years to in anticipate are levels the them are off marginal. major throwing doing a extent that

Javier Escalante

very you Thank much.

Matthew Farrell

Okay.

the was at second We'll We're you quarter. the that right to last going think talk the wrap to question. up I it now. end of

Operator

Thank for conference participating. concludes today's call. This you

now disconnect. may You

Church & Dwight (CHD) 27 Apr 232023 Q1 Earnings call transcript