Ecolab (ECL) 26 Oct 212021 Q3 Earnings call transcript

Company Profile

Participants

Christophe Beck	Chief Executive Officer
Michael Monahan	Senior VP External Relations for Ecolab
Dan Schmechel	CFO
Tim Mulrooney	William Blair
Manav Patnaik	Barclays
David Begleiter	Deutsche Bank
John McNulty	BMO Capital Markets
Christopher Parkinson	Mizuho
John Roberts	UBS
Gary Bisbee	Bank of America
Vincent Andrews	Morgan Stanley
Daniel Rizzo	Jefferies
Eric Petrie	Citigroup
Kevin Mc Carthy	Vertical Research Partners
Rosemarie Morbelli	Gabelli and Company
Scott Schneeberger	Oppenheimer
Shlomo Rosenbaum	Stifel

Call transcript

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Operator

Greetings and welcome to the Ecolab Third Quarter 2021 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure Relations your for my Senior Mike now External VP, Ecolab. is to host, introduce Monahan, It Thank you, Mr. Monahan, you may begin.

Michael Monahan

website read Thank today in Ecolab's welcome call our to are and a you. to Ecolab's earnings supplemental with most of quarter's results under which could and that the from state discussion Third take statements Risk the and Ecolab's Form are Hello our cautionary moment release, future the these Quarter materially that materials in Factors described CFO. results available in A with and XX-K are statements, this materials at performance. and CEO, me Beck, cause Please materials. Factors Christophe the Dan Schmechel, section and slides actual ecolab.com/investor. our teleconference the everyone, our actual along forward-looking conference recent of on referencing differ posted projected. associated results results could include our to estimates those are These differ

We third along information strong in in accelerating business Which also Starting and earnings continued per the other improving driven overview, release. brief offset the share to costs. wins with a increased the than delivered results a refer U.S. significantly robust the were pricing. by markets, new diluted recovery and European with quarter supplemental you more product and

global continuing, uneven expect sales and volume though to we an accelerating fourth both ahead quarter, expected the Looking to pricing momentum leverage recovery.

showing year-on-year third quarter. expect these result the than We sales growth fourth to the better drivers in quarter

will increase nearly costs and inflation continued product we other $X.XX believe also by experienced have We quarter cost substantial per share. delivered fourth that

double-digits, quarter as fourth expect third as not we though quarter. strong result, earnings to the a grow As

the and to growth uneven in We successfully challenges sales to recovery XXXX. current to in expect earnings deliver very strong again inflation once economic global managed

enabled including Ecolab strong outcomes earnings impact cost a higher science the actions, programs, a better yield growth. differentiated are us us while costs and further double-digit and to gains and and along productivity costs. reducing Ecolab's net reduction help X and with environmental simultaneously to Recent volume their pricing create proposition reduced As enabled offset certified value customer

Our business pipelines wins are new and at levels. record innovative

are digital continued growth. to focused to drive add advantage. positioned capabilities well our leading areas competitive And market New

business here's with strong and returns along favorable deliver further trends, post-COVID the proposition and to Our us Christophe macro leverage his momentum, with well next value enhanced Beck comments. for And year environment now, shareholder future. superior and positioned the

Christophe Beck

And Mike. you, afternoon, today. to Great you good Thank together everyone. with be

Demonstrating another the supply so-called quarter fixed institutional delivered mitigate environment again, continued delivered in strong of strong been in that that Ecolab. from has driven XX% the organic ability proven in across inflation a the and and great sales sales sales effects a adverse growth board, we Ecolab complex strong reported the momentum XX% and in institutional specialty quarter first division. growth, good currency and and X% trends very once for XX% foremost shortages. by and were top-line effectively is QX to with So momentum a aligning the And shape,

exceptional X% XX% sales negative We scientist also year-on-year driven and high-performance sales know. they in saw growth we sustained, industrial as segments Ecolab posted pest accelerated pandemic with compare by momentum elimination. during in in growth to the as other growth

team There's short-term to than digital from able the Ida, and the trajectory. delivered growth EPS rapidly, pricing, impact contributing to to the much expected structure cash to which it mitigated costs to year-over-year sales we state-of-the-art and result Also our on we'll minimizing than offsetting that's significant increase expected in ensure benefiting Current than X% free supply business pricing flow. accelerate. will with stayed delivery. innovation product growth in importantly, only strong keep of sales with underlying productivity respective which QX a to rapid price exceptional drove top-line were still service inflation. the accelerating pricing. to the what mid-single combined an planning in are drive Ida their At cost did and towards and global and impact the The impact impact XX% lower at momentum accelerating we've to Hurricane we More healthy increases, strong strong initially acceleration However, strong and the be showing wins sales new automation great price driving The same keep momentum is double-digit adjusted time, is shortages to better from $X.XX team Hurricane of manage job in successfully continued additional exceptional of quarter. to customers a breakthrough business volume we while new expect continue seen increasing continue Strong expected mitigate momentum and QX. growth. Most

Quarter in well long However, that's impact but $X.XX We between the value know time we'll sustainable create address to, inflation months next takes our the pricing with this aligned that and cost and estimate a as we for we customers. versus EPS a what few with term, ago, approximately timeline therefore to quarters. few we incremental by Fourth the way will expected do that over just the model

momentum with fundamental will EPS not hopefully in future position recovery, especially them of the cost a business the product competitive In full operations keep the partners we to market wins have QX, efficiently continued growth, which on a especially to nearing customers its we'll customers world for QX where for reliable to us as help expect delivered great then expertise differentiation. exceed With momentum. uncertainties, a safely. confidence grow continue XXXX struggle serve In driving supply innovation, in deliver though for we to great 'XX. run strong strong with to product world and fund and as continued and provides strong with great double-digit, their peak year great pricing, enter The us year in combined volume another and business week strong Next Ecolab.

become strengthened customers growth our that are especially We position Science their the they're the the have Ecolab front these be financial and concerned a our has with long-term risks innovative All center, their is world has another in reliable own assurance especially our offering where while industrial in guests segment strong It trends. And net customers, on about year X and improving us impact looking above for. will environmental and earnings with that returns. to provides as increased global Ecolab confidence 'XX consumers, clear, sales leading In innovative, partner. deliver with for providing and ways Certified our institutional of a become referenced infection, commitments world where substantially provides specialty

that, questions. to look I with your So forward

Michael Monahan

Operator, please begin the question-and-answer period.

Operator

you. Thank

you the ask participate. confirmation We instructions] and We Thank be conducting will please, chance [Operator will indicate X we X in questions. follow-up One for [Operator per question others queue. question while a please to A question-and-answer instructions]. tone yourself poll to is limit that now have caller brief line question your session. you. that moment will so the

Our first Blair. question William question. is from your Tim Mulrooney, with Please from proceed

Tim Mulrooney

Christophe, good morning.

Christophe Beck

Hi. Good Tim. morning,

Tim Mulrooney

question. Thanks for taking my

and result the some revenue like the guide. off one growth already here third So that strong quarter in accelerate of know you organic expect sounds I fourth on the quarter. is my to an to that in about It first of you quarter be. are the of as accelerate from some well you pricing, better those what fourth could but should there areas in other the come talk expect might business that

Christophe Beck

the thanks for Tim. Yeah, question,

will to, You drive most brought our healthcare life compare as in will we're to so last science will that us accelerating recovers. as organic nearing for to a And had QX, mentioned doing so to can together with bring have creating in better one in for will going institutionally accelerating the easier year to QX well help keep industrial as than the that really as double-digit that customers, to and QX. the example, pricing, level. we'll we to obviously. and are well well well growth growth all place being Volume good it and Probably we comps you have and going that businesses, we keep is value keep

Tim Mulrooney

thinking. guys than upon talked margins, maintaining XXXX. in saw quarter, made these and I gains this the even building quickly and you margins Okay. That's margins industrial Thank have step more back you've about but you was know took another I on I

question to I'm normalized material my related hold raw track on business. you be should margin cost still is margin to for operating that you those what would the pressures? achieved a for the understand step-back to if gains primarily look material words, not pressure. So just trying cost year, In the like other last raw

Christophe Beck

to wise actually. Yeah, it. at that's improving would a look so the keep margin way good Normal

we're healthier up are going in going not going as mid long-term, the So Pricing trajectory in to anything. by-the-way about, become give back talk well. like back, as if when think up will other Because is we Volume even forward. for we businesses giving quarter-over-quarter industrial well. is industrial margin

of we kind that short-term price sure that that it's is than growing keep strong. quite for pressure, good Which So this so to do reasons which make customers all we we way we quicker we the is want since old inflationary while dropped and it.

curve seen last it's the well create So industrial. to product as of ease delivered going was is end as you've by well, way, we going cycle ultimately, year, another the value improve the margin, cost when to as again, which in by

Tim Mulrooney

you. Thank clear. Very

Christophe Beck

Tim. you, Thank

Operator

proceed Patnaik with your from next Please question. Our question is Manav from Barclays.

Manav Patnaik

can there's the give I'm update there way that. gains Yeah. or so us are you. John, was curious of of everyone any moved to aware Thank updated has you provide. competitively customers an raising guessing if just hoping terms is the prices share and Just I one other? in But

Christophe Beck

as If not pricing Hi, competitors that We which Yeah. much we create. do. on God. -- value most the as drive thank be case, pricing the Manav. exactly unfortunately, wish based driving would I we

a have is so discussion we So our customers. good

to so they competitors forward, that your at of terms we part look opportunities as most the in price of productivity, most evolution. add of have all I businesses, well, behind the will of We if own in and get in value us going

being most the So industries leader well. of those in as we see ourselves as

need the So we show to as way well.

a reason, wish terms the would but of well price of I there be part as So evolution.. stronger in ultimately, bit that

Manav Patnaik

Got in is a competitor in Europe there, progressing. greater And update your it. recovery just Europe then with regionally any to how or

Christophe Beck

locked up, good. down bit a totally things cases that or numbers you up. It's U.S. were business, the in nicely. the Europe our in this little declining went flat in is you in a recovering was and and good from they Germany The positive international trends different recovery wholly in the the then the of because, keep U.S. not which growth to bit are Generally, as generally in as we as opening international because mind bumps than was almost know, year UK well, that steeper have quite in year so are growing Manav, positive having a We were indication and last is are going quite quite positively well. -- a

Manav Patnaik

you. Thank

Christophe Beck

Manav. Thank you,

Operator

Begleiter question. next Deutsche question proceed from Please, Our Bank. with from your David is

David Begleiter

Thank a afternoon. Josh, Good these versus on you. fully higher when costs? raw Chris, expect do material to catch up you just raws, price

Christophe Beck

faster the they are ahead really To ahead. you value making remain so that dollar most pressure. in inflationary it's not time year-to-date, margin that takes me, sure dollar but within is our Ecolab take more I the grows science, David, to product lockstep. drive And it in part, for because the So just and will It's quarter. is we delivered can model, if the which the in But pressures objective already, a pricing main is of pricing we the percent capability. the cost, get if ahead comes we take than there perfect year-to-date, not

David Begleiter

you how early but have next Very it's year, the November, good. about early for on earnings to for do we progression as thoughts year? know I think approach next

Christophe Beck

you it's say, very early Yeah, as David.

the back so going when good fairly equation a in it's get have I least that time, pricing we to though going and trends to the I to second that over experiencing -- in bit, are X%. evolution step for the or towards expecting have of be this I 'XX, be to very pressure with similar 'XX think half and the we I X% a what so just that's believe side, We'll think year. generally the consistent we at inflation on we've year. for seen next it's roughly the We're be why that first year,

overall, be So if seen say. probably than top-line it. we've -COVID, pre going leverage may with Good I better what momentum to good it's with

David Begleiter

very you much. Thank Very good.

Christophe Beck

Thank you, David.

Operator

Our McNulty Please BMO next with question. from John proceed question is your from Markets. Capital

John P. Mc Nulty

for Thanks my taking question.

for Just your perspective the can the on business, XXXX, where of from to you third topic you institutional speak to quarter? a relative are volume

Christophe Beck

'XX. for that. of maybe early help an that expect of question, that's idea to give months be, next of XXXX generally months, the which need all I on But in and to sure. going institutional. don't It's to we bunch I'll ahead trajectory, things. We're happen, the X to in that's it's going know depending general, a exactly recovering X a In good so to some be you we very see nicely for just

So right now roughly -- in we QX. are

we [Indiscernible] XX. volume. close early will So be to to XX% down be XX And in expecting

John P. Mc Nulty

Got it.

You've with these some the then labor a handful some the How come overall recover? way, also to of them? that Can of the you speak that their much bunch basis. that a maybe help labor issues how can it of them solutions for back customer provide, for issue for And of bit does impact mentioned as of I is you good to a growth business guess your a follow-up, general customers issues. of an that you

Christophe Beck

It's our not for -- to really customers because a in question institutional the for great specific and just a challenge real it's here. end industry,

So is the whole distribution struggling also that. with channel

So our as right picking well. to the from getting and then getting afterwards unloaded distribution the plans center trucks

if for think make there. our including done as say world quality. most, distributors, didn't to interesting of to our to with But like underlining not now service we've So well, we important but customers. that ended of are I and good place first level. is huge what's especially that customers, I'd it's service a our what foremost clearly and to our Which an efforts up very to sure is that in really the all out deliver We've help of customers, that Ida in terms can distributors our Hurricane needs happen,

the question on Now to your staffing.

look If good business just Institutional progression. at you the up numbers. XX%, very

almost serving. level customers in that as terms we're at We same XXXX of are

they the same all you versus year to versus food are at of serve we're very As well. last week go well doing can't we that time, be even every down as our sales restaurants, open the when down not can't when so that is well tables, you restaurant But have Generally, market. they day dining see single XX%. traffic XX% the the over the

as COVID, to for think well. on that disinfectants, well. time, well well, you well Obviously, showing Well, need worse we helpful problematic better that a we provide your changing the get there. truly an the that who appropriately. basically often since don't about we work, staffing it's So as regular even even labor, very people Because all it's do the that because new, and rents housekeeping, if not kitchen of -- service much can as is a instance, be least, need will the usually point have indication if moment on That's be we there, but or them against lot for the get they so the the talked provide they're less we basis products, and better how you help they the about right don't could is as warewashing going same the them. if done while not last

a same lot You work that well companies labor doing helping time other the of offer. the as That's shortage. with save

John P. Mc Nulty

very for much color. Thanks the

Christophe Beck

Thank you.

Operator

Our Parkinson with your next please question. with Chris question is Mizuho, proceed from

Christopher Parkinson

Great. Thank very much. you

desire across you gain enterprise customers science the what's it not to share past, like on, be certified, but which to the fronts, brand here, in new name. go executing is new the seems on you've are spoken only to driver primary as platforms the digitization, clearly You're enthusiastic But selling portfolio.

would confidence, much. Thank success, be you your recent greatly you appreciated. briefly underscores what just could If it very dissect multiyear the

Christophe Beck

welcome Chris. are You

X the not business drivers, is main new the with we it's you're so generation, have few really So, there new, that. are familiar a

by future. one are the customers, it's call for institutional higher And the you as on provide and X right guests, them, that their the most mentioned, people them, get We Science to generation ways Certified have Science the all-time we're close full program say, the is of accounts, new and call Ecolab an X,XXX they it's pipeline which I well for be very Customers managing, side. means corporate Ecolab team solutions as confidence high, own that requires to for Certified, proud assets. business so and we within more the certified, as their of while units because the for business is the the that of and We to the driven If penetration it's more drivers. in order solutions customers at units certification. existing looking those main good net of may especially new

on which side mentioned story most, Certified. many them customers, some out them get McDonald's, hard One is of with on lot of track commitments endorsing a is some the interesting to been latest, And to made for as of getting because of if I X very great day traction as net stay we're that Investors or the that. a program have our so has not Science time have on sustainability closer reach there, a industrial that

as existed huge we -pandemic. has So get time. centers last, own in as the as more like to business at own they a and high-tech our That's that their driving boost to But while pandemic given order that's helping but least, even well know, virtual and technologies, Really pre well are using our engines, to all help we new new drivers. addressing business growth all same extraordinary need needs data cloud your a the not since commitment. generating computing this

Christopher Parkinson

share and seeing briefly just seems trends its versus a drive And Thank quick of to just a in to recently, That's gain region, Institutional, it turning just on further little helpful. European margins opportunity, what higher be edging as the was your right regional region. you're just very comment direction. there across peers, across corollary the sluggish ability you that, to very very the you much. but bit just there Could

Christophe Beck

Yeah. businesses. Good fundamental When Company in you We've you've a years of as been in following long our A we think Chris. all Europe and were work no XX question, done Europe. for us last money time. about ago, making the lot a XX it, years for

in has had businesses are of a Institutional terms terms work the enough, in because progress in Now, organization, we as of XX%, fundamental to Europe XX% teens, there terms systems, That's other that done remarkable in been terms the profitability of so as was that leadership, Interestingly be improvement. made of much in region. in not all innovation. in much low of

While hurt there us they now having that customers adding It's were that over helped past more the that our it's were in whenever they say that taken not needed I to that time. new, have has so us can't obviously, a Which are customers partner help them the provide. could down. work us But exactly -pandemic. was would short get. But that the term, where that seen value we suppliers way. focus fruits ultimately, a pandemic assurance things recognizing of shut well, all the years, pre the getting other was the done we're And few we've provide

Christopher Parkinson

you. Great. Thank

Christophe Beck

Thank you.

Operator

John your UBS. next Roberts is question. question Please proceed Our with from with

John Roberts

Thank you.

comments do? just labor staff don't the made the would customers that clarification Just earlier. prefer customer the a cleaning labor you to little comments have that you do all enough you revenues? have -- Because lost do any to Are on -- they

Christophe Beck

X is and as is they did That's is going up the But help at to open, as Well, are schedule revenue a of news this them well. for well, good us this restaurants us. or whatever going that they X the pre lost -pandemic as revenue days for John, instead point some well. open week when lost Absolutely, to is.

John Roberts

were cleaning the so No, -- short-staffed were deprioritized. but while is opening they getting meant just open they I have they and

Christophe Beck

a we This the paying or some because in was meal. and the case, lower being the end had for the John, the early guests for cleaning for a nicely restaurants. quite I We understanding at it's on, pandemic. hotels room and same during standards Well, evolving price you

as expect of well similar service a cleanliness well. We quality and as of

So something labor the this but shortage back progressively, that's is hurting coming that. is

are So good. back get takes trends just the time It to place. the to right

John Roberts

is And healthcare then life think science don't seasonal. and very I

were a you offsetting talk know was you basis. the could I comps. on sanitizer that? up get hand about up bit little don't a when So sequential still what down assume and I And change that sequentially. sequential bottoms

Christophe Beck

A few here. things

year demand those seasonal You're high of all business. products. year sure then. right, not look because sanitizers was Estimates exceptional it, back demand it's last not of a exceptionally the we at That's really a healthcare for are government way not. driven and of lot and back an But then. because

shifted seeing growth XX% because math. were is back you at terms QX, short-term. profitability normal come If business do And are because well we'll against much mix as down this But well. is but going driven what's profitability back we our surgeries, period, elective year, on and and mostly back they is say in and 'XX, healthcare, combination, know, very comparing it's you in the naturally COVID, the moment come the not versus second, the ultimately, a X% the of the It's just surgical last if versus is of lower you surgeries so part look business. COVID, to be that double the up profitability going away a just as seasonality, shifted to has driving surgical towards so more will coming type first by have has as which

John Roberts

you. Thank

Christophe Beck

John. welcome, You're

Operator

question is with America. next Bisbee Please Gary question. with Bank of your Our from proceed

Gary Bisbee

afternoon. Hey guys, good

institutional I for back So want minute. a to go

quarter. versus think the if the X% for business levels you pre -pandemic in revenue pre remains years, I in two last currencies XXXX below institutional segment adjust -pandemic, the

part pre the in puts three back be -- getting levels in So revenue that Does at revenue I to clients lead level that those could other -pandemic pre guess -pandemic perspective And revenue there asked to to you'll volumes take when -pandemic would equate are about levels? that, using pre think to wondered, you've customer levels. that Science -- for thought get from of do that six you. the to to that next months level Ecolab gets Certified. or you unit, I as Thank you back intakes products also commented longer? You are talked per more what that particularly I unit that gap

Christophe Beck

so, get so Gary, XXXX so and 'XX, that, good back that's which months, as levels, exactly to early expected X it's don't the institutionally well Yes, But to at to going big the top-line earlier, mentioned be within months business fact as With level, the to I months in which new to going the be. is come. next picture healthy recovery. very installed case, while steady to that very be we had going the that's know

units today we before. of have units, Then of are open, we afterwards, as well solutions once in going out compound. within is and same So number there, going as the more the staffing well almost number get to more the units days mentioned, if restaurants that it same be to more

implementation, but field terms Institutional remarkable even that's an as well has as business. well, it and of well really 'XX the -pandemic from work help elements, all as system accelerate you not organization, every to are pricing well. to earnings perspective ultimately, least, of also help have better in an On drive pre saw that leverage going in in it, in going add have in evolving last, the as in that Company those versus that business right So direction we as institutional we what that's top to done

there, going the [Indiscernible] to take that a it's few So right good confident order we in I direction, feel on a path. quarters but trending overall get in

Gary Bisbee

not the issues And just customers really that handling on supply of the are we of feel any of going they're seeing pricing chain do material volume segments your impacted your being the a supply raw widespread in volumes Thank are if then own challenges much you're about you are how using great. but you. globally? in cost the and any you've chain Okay, on the or any angle, like based you talked your think lot pricing general, pressures, in own and so

Christophe Beck

To assert yes. an extent,

So has demand because talking example less Well, shortage because there's as the chip own the about, one it's industry, there. here. there. do car you're chips they're before, costs can't happening because The being but our saw that's of I take shortage, the a we out ultimately But that's the produced, just the operation, nothing labor of obviously reducing they produce mentioned with outdoors. but that to out them

serve don't complementary them met not no were there but Growth, major So I've we freeze, of so environment. I think that's can shortage, [Indiscernible], way that not obviously. difficult a CEOs be supply. to stop had we bunch in can't that's past to shortages, in this you stop growing ability sure we a well, on one a able would impact one, probably is hurricane, Texas helping. us. were can a ultimately our the And of and yes, crazy have always if our that customers it very to not What in own we control in making and customers been something control as of world as or it's well supply operations. their what over impact that few months faster, doesn't because and name we and ultimately, it's all

Gary Bisbee

you. Thank

Operator

is question with your Vincent next Our with proceed from Stanley. Andrews Morgan question. Please

Vincent Andrews

Thank run-up year? through well either: normalizes inventory demand it even stickier -- that on to at how the your of you. customer you very still much And issue versus wants so inventory good -- and as you see the much next and is raw A, afternoon, and follow-up their want very broader seeing or running A bit at just When into and because much costs, dynamics. the everyone. how supply is risk also this at these probably days, a suppliers of point material of speak supply the rate just do stays run next up XXXX raw to base, rebuild full they're struggling in good is back there's that a into look to to B, just higher well these a plans through we as get that levels that people rebuild another

Christophe Beck

months, that's we're Well, think we going going the way way And shortages the as well. we're short experiencing Supply for to to planning XX-plus addressing is that's answer the last the now. are it's way we're organized, I that it what That's be here. it.

well for that So familiar well. are the There suppliers as gone as force measures U.S. while, well existing with a through in have months. transport many you past the China, are the few as U.S. are who issues over

and Sometimes reasons sometimes so for great not much.

well address be hand going in gotten well, thinking the get Just on well. going resilient become easing I God, of we to from mentioned, is our earlier, can the order margins earlier we're as 'XX to to 'XX And the one during versus plateauing more to with up [Indiscernible], we second, order organized order X% that. in to inflationary well happier. similar the expect pricing some we've 'XX sure half X%, way pressure through in year. we're more as make in customers. supply And with doubling in gets that dollars next to to to The that thank Which better all second 'XX in very very costs that one why as our if be is world

Gary Bisbee

you thank much. very Okay,

Christophe Beck

You're welcome, [Indiscernible]

Operator

proceed Laurence with Our next question Please question. from is Jefferies. with Alexander your

Daniel Rizzo

afternoon, Dan -- guys. Good Laurence. on Rizzo for good morning

lot, is months. not Would months, if X were Just get to of pricing world or you about concessions? dramatically? talked things the that pricing pricing a situations changes where there's rebates expected terms if in X that's we've ease Obviously in givebacks pricing there

Christophe Beck

pricing. the XXX% Ecolab Overall look say million in backwards all the customers the case we're we of generally, serving I XX at serving, it's those in that world, went you just we but if X that won't last years, locations never don't, for a Dan,

higher had and and point pricing is the something always a in so of we've is, we pricing that raw we one improved always asking the up, create the helps that costs gets on. for How last natural when we waste, average you away is to innovation get brought as something some the for dollar go the because input value their X% reducing the why productivity, second, up way. Company that reason much is pricing doesn't with like go And in good which customers. more and well, keeps margins forward. the materials far which well. link on lower hand, Ultimately, with because them a the that reduced of market usage so pricing higher going creating margin. improving resources, we're value You with you natural with by and That is will And which a plus hold is down, as much get that, have to in that better with going that going pricing always that indication leverage why fact the price well years go lower is that the ultimately as ultimately,

Daniel Rizzo

said Did helpful. to really on last say the you you of catch that you the And that clarification That's material or right? something or XXXX? one for inflation of all environment before. just most raw expect Did then XXXX I

Christophe Beck

way the the it's we're Yeah. I exactly, could way case but and that's to XX the months, I I know organized saying That's wish be though. the we're getting planning. going am next

think next is second I the it's of a to if it's year to to make with it of When everything ease inflation, half terms to and don't planning fact it be? How easier. better, start? be going tough it much it's going going gets then that next I year to the in know, going okay, is going we're year.

Daniel Rizzo

very you much. Thank Okay.

Christophe Beck

welcome. You're

Operator

Eric is question from proceed Citigroup. Please with next your Our with question. Petrie

Eric Petrie

afternoon, Hi. good Thank you and Christophe.

Christophe Beck

Good afternoon, Eric.

Eric Petrie

seen net in Which segments initial of you X the industrial your greatest have interest program?

Christophe Beck

over The when, Eric. ones means way that on behave have like It terms environmental beverage brands back ambitious as few that and the that are That's the of our all right the them who most so giving are well, years Microsoft. are to natural the the most resources XX's water read enough, and Consumer a being you've Goods last the the or they the to asking which the was, because XXXX, high-tech consumers depends Those views companies the whenever in edge operations commitments that, forward-looking, put protection so leading the in most and food want been But positive interestingly Microsoft since are positive beginning carbon their question. as early be own the has customers. usage. great then, ones by

interested just Eric, a Interestingly new there of mentioned, becoming months lot last I'll So while are use shift not oil in ones ago. downstream us, so very which technology enough, to for XX because are one the and and consumers X truly that. to them coming we is months And was those and That is gas investors interested. asking not and did they ago.

direction. the it's clearly but in the same So very going types different industries, all trends, of

Eric Petrie

question in launched I Science program that add sometime When think and reach you, quarter Certified, a you'll Ecolab market program saturation do where was then Thank a think of of the 'XX. you top third line? to or point on doesn't

Christophe Beck

But, have interestingly locations. XXX% we well, Science close are That's in Certified U.S. question. XX locations But, the and thousand today Ecolab somewhere, a a hope XXX these I that to we enough, great thousand are never. obviously. serving

rest new of internationally how expanding Right since that's then easier as what's well. as U.S. is mentioned in just a careful right, most Canada, works, because runway how expanding We the year there [Indiscernible] of language in part to have lot the world, in really as and it's for right last So you well, it's we now, a the what's U.K. but the it's program, not and it understand because the in same want perceived, we're the

a they increasingly in case. just would think hotel. as Interestingly and well. want quite thought enough, program not this be more Initially, the it because than related I while that is offices to that I hotel successful are feeling go be. it is well-being to interested that thought long of runway or The same the been for lodging customers have I when it's becoming guests would much COVID

we that about So adds we didn't those to opportunities are ultimately on. the new market that front accessible earlier That us. of think in have

Eric Petrie

Thank Christophe. you,

Christophe Beck

you. Thank

Operator

with next Please Our with your Research Kevin proceed question question. Vertical Partners. from is McCarthy

Kevin Mc Carthy

to if your suggest as and and It mitigating wondering about went thought it half you impact to though things those be through XXth is afternoon. pricing September some color so that. address impacts. could was how the remarks if Good productivity, was the you what of of I Yes. more you through wondering each could looks as you you on provide expected and talk Christophe, hurricane that might been prepared have attack I

Christophe Beck

a see happening it's at we question, to that see Good be to planned, -- we transparent something that we always Well practice was is you get our not we Kevin. what can moment. when as as quickly

initially has would of so path have teams you exactly has had few thought of rebuild really at this supply plants plant hurricane. plants of or that fortunately how And for well to main couldn't look have area that forecast the some X in X ultimately. Well, to months had the a been first the one quite with in That us hurricanes natural the things U.S. [Indiscernible] systems we a that avoid [Indiscernible] reduced unfortunately, as all them chain as So Well, are our on plants the where such. team different To allowed Ida, foremost, for X dramatically. the contractors stop what's weeks and hours better, the impact great or later, all our we large to damaged in you or the that we lines going has the Well, a production of of find either been we go to had is depending downside that to is it's the the part order we other want year such. a lot would unfortunately, it, you the if with be on that help case. we bit in changed -- obviously, as the a the catastrophes our week we And practice the X closed from the change before one brought And months. thought color Louisiana, to reasons in have of the the showing for know. in because practice it reduce second, give there Garyville. Hurricane in are damage customers,

the an that's So mentioned. ones you additional to point

Kevin Mc Carthy

XQ? guess follow-up, see. in implemented XQ versus I answer, increases would you of the last as regardless months? I over Then a trend And price the incremental price have you few to expect brief contributions how

Christophe Beck

for we're normal customers year. it going I'm to short for and year pricing going X going making it's that's price did so to year we're that the the whatever we much the that next creating Company assume or many that we've times the a the where well returns value -- improve, once answers natural times truly very our for this and share that that a I get next sure. So gone bunch X very once a other in the sure to as so practice means, year, to this discussed between customer, of to so for We We -- that how average in the unusual. be go year or going for plan X, be X year. words, similar, times, has, what's practice normal of X more it's a times, do that it's rounds. customers be we than that Usually in

quarter be It's XXXX. heading fourth Now, happen totally for as to some doing we're quarter, get in full sure X% going that we have time the will QX, I'm going going on to not be I what's 'XX, we the it enter to quarter to but when done. that be full Is we to high the going to we're enter a confidence depending your get question QX it pricing for. versus yet. It looking it's or QX? the to level

Kevin Mc Carthy

helpful. so Thanks Very much.

Christophe Beck

You're welcome.

Operator

question your with Company. next from Our and Gabelli with is Please Rosemarie Morbelli proceed question.

Rosemarie Morbelli

you. everyone. Thank afternoon, Good

Christophe Beck

Marie. Bonjour,

Rosemarie Morbelli

your still that net the about, are you side, is beginning to business? focusing on? or is already zero oil Which you areas And reached having downstream going that downstream barrel there at how help on looking $XX the to price a them? Christophe, to category -- see your help do of

Christophe Beck

in happy people up, happy team. Great that, that's rest in Company costs net the question. that's our The oils know some organization, of generally. high of that's make downstream price because the how going less an bit of a We to manage input but it's okay. most And

We renewables as good. which though related is there's board downstream. went price the good well of X, see Yes, and oil the environmental the of before of QX the the so discussions evolution the terms So for up, we basically working are is so you oil the about sure. the when early helping not crossed such. you've And very X%, saying you of in really we of They one new energy They've business. as is old very in the the improve net help that so on our whom focus interesting we seen can take in part, need net us of helping done price on is which European some our directly to footprint zero, it's to as but with one Company, work to refining so in example downstream program. down This stream demand. [Indiscernible] talk energy, on actually good such, new zero

used the in help really a number understand for electricity. refinery. you them consumption X water resource the the that reduced as a we've usage refinery Which the in reducing that's being is So way, by by well natural energy while

I and So most it, help for footprint the inflation. reduce water so the doing the carbon part mean well, by the consumption, reduce cost, they they as they reduce

industry not interested has it's in enough, changed discussion and that a interestingly that helping was even dramatically, having create demand new an for so that that's Now, much us.

Rosemarie Morbelli

Europe, serves at -- looking which well know if you then me a Okay. And thanks while, right. And since it run my that for then is helpful. very you memory

Christophe Beck

right. That's

Manav Patnaik

reach -- never normal is get high-end to circumstances you institutional institutional the in level that I understand business America. the will the What North of and

Is So what some very your is of doing new on. of you arena countries different? is competitive and the that multitude other What than management accept there and different so them? difference, to advertisements also have the fact the

Christophe Beck

it's the because the way, level so right is not we profitability not bigger. the reach complexities the U.S. country it will said X and of You

of reason than the That's U.S. the in As and that's on. business you is why and had companies, right, getting logistics, a doing cost really mentioned, close in But higher for obviously. language most not regulatory, talent true logistics the getting that's That's so shouldn't right, we there But to work some our over getting right, fundamental get we structure do to our it. goods U.S., versus and most ago, in Institutional a importantly, was were we a business. well product venture cultural as Europe had in XX can't that consumer our forget for we needed selling that plus products because years to it ago, shift outcomes major happen. programs plus joint team XX with the over years was there. a that's that We Well, a Company, our

get it's road, in but confident we business solid going the very it's the know feel one to that it of time. U.S., be are years, Company, have. globally some we've to it's business very of level even XX will healthy for that been I Elimination, and that a profitable to at Europe working So you now not bring a place patient we if we Pest profitable on still a to years took the down us our businesses take it's going most take

Rosemarie Morbelli

Okay. [Indiscernible]

Christophe Beck

[Indiscernible]

Operator

with your is proceed Schneeberger Our please Oppenheimer, question with from question. next Scott

Scott Schneeberger

Thanks something I've mentioned. question much. you of Good kind very afternoon, Chris, just taken off just a

if other delve we're segment, in other Where not since it's possibly markets is strongly could now level to XXXX have and that what end? the above bit rebounding margin just really Thanks. the go, fully the recovered, end despite little you margin that above curious in driving commentary now a could I'm 'XX. The

Christophe Beck

So different you bigger have know best you a businesses, and our combination of pest that in obviously, segments have we or being the one. elimination

or our in there businesses, that's Colloidal obviously. care, different Technology textile have Group. Very You and CTG

during talk elimination 'XX. well the profitability well versus 'XX, as managed about time as and pandemic. pest And very X.X percentage that kept in The have at same They've main quickly remarkable as such. So an is growing driver XXXX hard done the to average has such. to work points recovered a their it's improve as during

so-called and lot Scott, that our nicely, a results segments. So profitability. you the large other seen good business that profitable and you've get growing Obviously, more getting very leverage of drives in

Scott Schneeberger

pricing. is line and in bottom new of Excellent, my solution, supplemental the digital to solid that then markets appreciate section, driving strong discussed momentum follow-up kind enter the on innovation, inappropriate in thanks, and service that, top, summary there commentary expecting into delve XXXX, in and I through product

tophe, a I Chris you you follow-up, that to if on delve at mind, had can but elaborate sentence? on Specifically not in just curious, want Just new markets this Thanks. what point, in that.

Christophe Beck

Yes.

kind something. -- the And always obvioulsy. It it's is go So But with that all business. to don't job sell new want This sell it's first [Indiscernible] one new solutions existing we in doubt, mundane. have sure a and really we these having the to everyone lose, new to customer. in above and customers that trying make we bit of Company starting feels of

pricing, So that's well impact on enough, new that interestingly business. when you an do much more how as has [Indiscernible]

we well, perfect if reasonably a So that it's say. may not manage but or well, I science, very

terms mention markets, new of few. a I'll In

just boom that's trillion whole that you with that, industry. some growing one quality, which all have farmer and our science much of is is double-digit. me difficulties dollar We've cyber by in before offer that we I is to is Which is story, one beginning those of at created companies for it's which also the It's really industry. markets. been importantly, and express years as security, a business so Health the growing life one new fast time high-tech the to come. with center a had double-digit And division, bit a which So grow cloud is another their of science, which business, a pandemic one, the profitability driven you some dedicated XXX high growing own needs, we going most year This computing. to this that very extremely its know, extremely data to countries. mostly by serving up the that's to industry, has fast. one ago. and That's the And years which well. X growth the business in million But the Animal life is ultimately, as created

come. going us next X grow to term. to well year going to I and be years use help number that's your the as think to new That's market the

Scott Schneeberger

Christophe. will good. we over. Thanks perhaps so that's sure hear. much, Excellent. It's I anything And expanding, but make It geographical, just I to sounds what wasn't it to expected turn want there

Christophe Beck

welcome. You're

Operator

Rosenbaum proceed is with Please question Stifel. from from next your Our Shlomo question.

Shlomo Rosenbaum

couple a quick of Christophe, Hey, questions.

should you thinking is how particularly the maybe an water much can and Just is of you accelerated cans be regular coming would businesses growth more a done in in say strong, basis? much and -- we that those comps just about paper dissect it really easier some of how is from

Christophe Beck

a scarcity so reduce the carbon reasons Yes, business usage, because issue on reducing become that for years has water. is of first right been water a many steady by the reduce bigger you footprint. you all and It's energy water many, usage, your

So it fits idea. well, really net with the X

has Company is because very going while keep more So years. needed that the water well been even business, of successful because X business this net which large And step. approaches a customers we'll the for

it's volume, been division. year in paper, growing of so XX%, in pricing, an paper is gone new lot is it some X/X comp, unbelievable up is business a well our on Now of QX, have been a X/X generated you but has as

normalize comp with going are to as the just profitable it's So but a forward, nice margin very to not going because at it's to going high stay healthy level business going a forward remain going well. that

Shlomo Rosenbaum

that you with if you there approached guys more interest your Okay, M&A doing something doing interested be Is lot consolidation and pest of been great. within deal their bought outside players business, with a other someone the over [Indiscernible] what's small And would interested in to And would activity that a or business. be in more you going Ecolab else? pursue someone there's about internally at alternatively, businesses.

Christophe Beck

but grown a done looking from not M&A well. we're for you excluded comment a acquisition as North hard it's few at to business We and the So for lot with definitely great me an as as We've extent so on acquisitions there. that's way, in started Shlomo, it's certain what well. know, Dakota, ago a of a to out us, it's decades

there, way of are as not is But, well. hey, digital how terms know life have getting mentioned If healthcare, excluded, do, M&A? we I've always it opportunity in and it's consider a one No. under the there's we not it ones really So making we've water, priority to money. of there. out strategy works we'll Shlomo, out good it always do number We would done. science, big

Shlomo Rosenbaum

Great. Okay. you. Thank

Operator

you there at Monahan, floor back Mr. time. to turn no this to like for are closing over remarks. I questions the would

Michael Monahan

time you. available best up our and conference on Thank and third the website. our will call Thanks participation conference be slides the for quarter day. That This your discussion the for wraps replay wishes and for of call. associated rest

Operator

for conclude does you participation. thank gentlemen, and Ladies your This teleconference. today's

disconnect may You wonderful have and a day. lines your

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