ECL - Earnings call transcript Q1 2024

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Operator

Greetings, and welcome to the Ecolab First Quarter 2024 Earnings Release Conference Call. [Operator Instructions] As a reminder this conference is being recorded. At this time it's now my pleasure to introduce your host, Andy Hedberg, Vice President and Investor Relations for Ecolab. Mr. Hedberg, you may now begin your presentation.

Andy Hedberg

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

refer diluted earnings also per to release. and We the you share supplemental information

like Beck turn comments. that, call over to for I'd his to Christophe With the

Christophe Beck

We're a expansion to current earnings with on execution trajectory the off of basis of and really Ecolab XX% fundamentals adjusted exceptional is team. so growth performance strong benefit quarter sales and proud start. this the testament quarter costs. operating of of the strong firmly that income pace is pleased the execution additional entire momentum margin We're long-term product of lower This on XX%. We to you of Thank delivered our and Andy, call. and the business. so of I'm result a growth and report to XX% being much, the XXXX dedication encouraged team. first and to to our strong in excellent by Ecolab remain organic our growth welcome earnings organic up XXX with In X% per first share driving the everyone points, on

Ecolab brought volume pricing pricing, because last plus positive delivered easing is operating expansion spend long-term business the a value good is implemented geographical modest the the and Our growth, anticipated organic a continued point carryover cost. of across provide, . This along costs, above This line benefit rate. benefit percentage because proposition top majority of and value growth not efforts X product quarter X% we regions. and year's margin which new delivery, the included pricing segments the our in customer of us our and our during resulted delivery with run income continued the the strong a of with from action slightly with of combined possible

the achieving pleased income our on we margin very few We're over next and focused with the margin remain XX% delivered operating expansion target years. have

target, these now to to As we the positive trajectory. gains continue of we long-term against on time, expected growth. into reinvesting continue this some our back are gross to its is execute our business At margin same fuel

Importantly, remains our further we our productivity leveraging leading to by capabilities. see underlying digital improve opportunities and strong,

perform proposition across operating value as very our segments, margin. well. This and team continued resonate exceptionally our income Institutional Looking growth attractive sales to continue a Specialty double-digit savings labor our with delivered to customers.

expect somewhat its organic a underlying of pricing we to for rate lap Industrial good sales growth forward, volume the Going progress, strong year's volatile global as specialty we delivery. a improving in last trajectory environment. made institutional moderate

last industry paper half nice a volume demand, near-term soft from industrials second the year. continued Excluding of grew improvement

half therefore, Health relatively soft care modestly, grew to expect given news second the sciences industry remained and the I consider improve of which year. continued life flattish progressively but trends. sciences life the during constructive sales short-term We, trends

businesses, Prevention. last took the quarter third care in Infection A Surgical action in the into we As needed our the business. business first transform by more health second of adjusting our competitive Then ago, year, our journey to to our North our a step separate bifurcating level. health year care cost promised, structure took we we American continue to X take step by and

of this if drapes core and surgical of the announcing made on have digital the Ecolab health business solutions. progress the This that Once anchor further regulatory service focus transaction we portion closes clearance, an reprocessing business. has care business remaining the after instrument agreement to business classic our we with sell personal to by a an and Today, model platform will Midline. elements consumables, renewed combines

What proud the customers. create sustainable, to our more to that health a we've progress is made be more important I'm hospital done. profitable for business care of delivers

double-digit is very relevance its Finally, due continued well. the now single execute Sales circle digits pest to income elimination, segment benefiting grew the customer, growth, from to growth, promising strategy. a performance, with which a organic and operating upper circle standalone cross-selling

in strengthen. our continues XXXX Looking performance have ahead, confidence to the we

to remain to growth sales growth. volume X% and organic X% relatively driving price stable, expect X% We to X%

We $X.XX, cost up are quarter range costs delivered to we last full versus our $X.XX ease year now outlook for adjusted XX% the of favorability through XXXX anticipate of product third as to magnitude increasing though XX% gradually to expected year diminish. the the to to EPS is

expect per the the to million than business it $XX This Healthcare offset transaction OI the of and Surgical along I growth. closes. headwind quarter pricing more estimated our continued once with from divestiture volume

adjusted XXXX towards result, upper end of the product we progressively in per the long-term Ecolab's to from benefit lower delivered anticipate costs target quarterly ease. share to short-term second normalize diluted growth As a XX% earnings a half XX% of

and a to to that capital business, returning business cash good continuing Ecolab's As sheet future increasing stewards invest great to position. will provides options strong with flows, always, balance by very the never for shareholders. allocate has returns strong to With growth remain our looked shareholders. many is in opportunities capital we momentum This cash dividend our continued will and brighter. in generate of us

reducing where technology therefore, margin performance and water for pricing is to customers the be while customers we for customer to improve confident enables proving innovation performance help our proposition vast talented continues increasingly and our the expand consistently leading and technologies remain We, most the team our operating our capabilities, the delivering fuel by billion relevant high-quality use expansion. us come. shareholders share serve. superior strategic leading our years our $XXX global and within to growth, energy market positioning their in Backed value and to Our market and for

support continued forward look your questions. and for you in Ecolab. investment I to your Thank

Andy Hedberg

concludes Operator, question-and-answer Thanks, our . Christoph. period? formal begin remarks. please the would That you

Operator

[Operator William Mulrooney first Blair. from question Our Tim Instructions] of with line comes the

Timothy Mulrooney

about wanted your It growth to investments. I like up sounds ask you're stepping bit. little a SG&A

gross I margin? is SG&A XX% hundred points this chunk target thinking expansion, Number you're that twofold. basis a leverage. to achieve my big I So I guess question how your to also one, impact about couple know was does but of OI of timing margin hit a was know

secondly, can where of you talk investments now? about detail in business its bit So themselves, how have to a going on the are has you others that areas little what cut thinking parts are target reason then invest Ecolab competitive into? I what about that has the willingness part sustained the XX% advantage been they're know of costs. And more its --

So I'm was these bad the what just not saying timing, curious XX% step-up but is effect here? it's the that investments around I of delay strategy a OI margin

Christophe Beck

Thank you, Jim.

with part Let start me the question. second of your

a technology to in well. to the margin we exactly where is fortunate have are and invest on so both want have and our line obviously where And place top basis teams, behind momentum, opportunities as we We here our expansion. our we obviously, future, be feeding are our a great which place, continuous

the also underlying accelerate as at that. on growth done eye basis, when we're same investments good time, and investment, on we've And behind It's our for close And keeps at see. very growth And a a that on the keeping right, I have future. I job mostly we're better we at the productivity. for hand, underlying regarding like important pause a invest our making, productivity can we to is that Now what one it's drivers. the getting growth long-term time, that same X those time

serve deeply well, into to customers them growth [indiscernible] serving first The broadly more and feed that's those those those more serving here accelerated growth. having machine customers X will is power. our serve more people people as more and customers supporting via to

on we sell. customers look front, front, and on more we good move that to very and see and sell. as with that services AI second forward that part digital I a can and The is with we making forward technology good progress AI data We're we progress especially services you can lot our technology, that in 'XX digital because and serving with of sharing very

get to serve in margin consistently that capabilities third shared making that me that and one quarters. XX% and the this us opportunity we where as unique a the the so very can all question further to bring driver, OI as margin for few the keep made. around good and related as everywhere years, businesses will get few more as on will expansion, we're And well target. to customer making our with But your Well, that informing next done the and first to well progress to the far, in job Ecolab, back world path. XX% faster progress with one And it's you next we you, we to on confident serve that's the as together I've growth

Operator

Our of Ashish next question with Sabadra is from the RBC. line

Ashish Sabadra

DPC Just on a but the rest DPC. for pre-pandemic quarter level year-on-year could lower elaborate how and trending if of basis, much was year? it's expectations the on how to you second compared I the was wondering

Christophe Beck

positioned to I'll Scott, be question that best you, Ashish. to Thank pass will who answer.

Scott Kirkland

Ashish, Yes. for Thanks, Thanks, question. Christophe. the

before, about XX,XXX over we talked we've know, you as materials. buy raw So

the different in we will that but DPC of places. as and DPC you that expected as in throughout to magnitude in from to opening as decreased that upper expected guided to. for we moving But totality, QX said And diminish the statement, was single individually, about, as So in his expect we through how and see digits, favorability they're to year, QX. QX the we the Christophe it continue talked year, ease as

to as are about pre-pandemic costs then commodity this point going seen, very last probably digits levels. high lower level. where pre-pandemic pre-inflationary levels, by from digits we you've to still remain QX. high So versus or single your single And versus

Operator

question next with Manav the of Patnaik from Our is Barclays. line

Manav Patnaik

bigger the on the wanted components just Christoph, a to picture I growth. question of --

kind it the your lot be to said, track. was initiatives on realization X% this And own So sounds that kind should of seems the think pricing from you of like growth a new then quarter. X% what like I of volume

Like Europe those just just pipeline? confirm just without your to macro? and what new the like which kind X the piece, looking are third volumes on is of the and the your I in then U.S.A. take wanted So business get

Christophe Beck

you. good Thank hear A to few here. you, things Manav,

kind starting So overall. say, the markets But of macro. obviously, end what takes, ] what 'XX we've the 'XX in that with of serve. XX unchanged. we're [ would maybe we a in is lot -- There's I seen in and all seeing puts

know everything with general about at But the are good know it's least we we unpredictable everything I on pricing are we're We related volume. with giving good feel now. We feel know, customers, where where the you out what about value feel customers questions total increasingly are pricing the and world least and long-term as know going. pricing call So muscle, good macro, faraway about Then savings on we at we to generating that an there. based always delivered, well. we're usually our us Xx which which which

us. a for and it's win-win good So very for the customer both

So well, our when now volume so as X on saying X about from delivering side, X very to I'm and we said feel to I seen, that. for for plus, And good QX. you've 'XX, QX X the

moved volume company. overall has up as a So

ago, is our year-ish good to we really obviously, a shift that indication, that's offense So well. started working that

levels. record at is before as as team shared with business new investing, just We're well. I've Our

So capabilities, in behind order team, to sustain behind accelerate and technology, that. our behind

is So very good should volume quarter year X% [indiscernible] we every well. created the really I have it in about 'XX. feel good is to equal. a X%. But generally, as

Operator

line Our is of with from question Roberts Mizuho. next the John

John Ezekiel Roberts

there of quarters being the with care there? that solutions you're ago, structural going additional the now how changes A you are changes global changed -- make still health couple business to surgical operate you sold,

Christophe Beck

I my that so. Not X so much. were you, could, you step do made we on There each when John, and with plan, obviously, points saw I shared

that. adjust The was really structure. to did first cost the We X

Medline, prevention to of year part X. was the happened that pending bifurcation in been of step that transaction. second for Surgical Solutions and latter well very our sale It's surgical, now so create infection to The which a business the and great last

as the are really to point we and market. the technology. the type where on and want can So of to partner. is endoscope with part building we to And there prevention come feel reprocessing instrument style we that of service around it's point with we to I hope infection because our And a with was years that's then business business, that a is in which one. quickly winning business this as keep machine, have consumables with a great as X close today infection X. means a Ecolab digital typical And the good build prevention

where It's and have typical a Ecolab that business rights we to we how exactly a model know the win, way. for as market run all to well,

the So team. right it's focus, the right

adjusting, keep so that we obviously, will We evolve business. how

company. our business going done never to easy, innovation. right will as as the going years We to well dramatic. building get years small some great a build care internal over will to It's we're be place with nothing some in new we've be There It's always that the to the business to want come. acquisition but time. I as in be to come. to the take There it, might businesses health previous

Operator

Josh UBS. of Our line next from the with Spector question comes

Joshua Spector

related I institutional and things wanted a of couple around specialty. to ask

strong So first, congrats, quarter. the really performance in

of we stack. in know multiyear looks But near were it's total anywhere we pricing and optics pretty on up pricing think single step-up it the if in company, coming meaningful segment the a digits. down. year-over-year the the And I like high was say ballpark volumes

reason could the you And high that that Is momentum second framework you meaningful volumes that it, this maintained? So margins we in year. think be fourth that that this year? points deliver around institutional more to the is the flowing on for through new that to is is can first really, step-up and see to through shouldn't mid- question call wins a single-digit quarter XXX call that typically basis part pretty any it, in XXX quarter, is second, and why

Christophe Beck

Thank you, Josh, especially for nice comments.

team the prior in an the done the like to as mini well. has So work unbelievable last quarter, that in

So question on on a now your path. back quite a business specialty. great for and been while to institutional This has

And openly, mean very changing in you, pandemic that with I very shared been I've business. positive has way. for a game As the this

labor than and have well. America, reduce going have all when price Well, be the as traffic for as that cost. will it And in solutions time, exactly been it the we've meant National also the customers like need been always, solutions you chemistry, with technology, importantly, we've the Association travel. around as better they automation from to what institutional happening, increased more it more. been cost back improve the them taken the that pSo that good ultimately with Restaurant short team to the more enjoyed of used be to all to manner us. serve well. those industry hard restaurants they customers hotels, an term can which a the the Show Generally, them get is now were our because better that as have very what their we able see that at that, they well in they so for than is dramatic and to software, and be do paying be industry they to driving can for a business much as everywhere see. it is well pay solution, were midterm staffing needed to for margin in month same training, business That growth pay done Overall, all value a can help industry a much, world North be an the willingness else them traffic Well, quite doing to around to for most open stuff now, place reopening, People get can because able absolutely exactly looking opportunity at And because they they're People order time that this it's that where their reduce to need. in had they our world not what has align it in the that's for.

your question institutional. to for So the trajectory long-term on

we've times they X sometimes, a as and for talked this than the be And that the should better be institutional be end. will for X where term. might company they that there well lower bit long on lane that little the swim to think I be about will

year, I continues have to it with very what And trajectory. good think this going institutional. that said line just of they're up to if long-term a going way, while that and in it's year I terms

that they're it a pre-pandemic. be, is volume P&L keep demonstrating that used the For than They're will the we than P&L of lower getting place margin, institutional be, will margins in keep improving very to where And right that's much good now. will Well, that's basically had well. business expanding than it well. expected better bit quicker the as as the recover, better. used so volume to a as with

to because future. a north that's great in So do from business of keep to great And business position great typical that's there XX% All quickly. growing in a we'll a it's be a with going pretty so. all,

Operator

Our of question is the Wolfe next Chris Research. Parkinson with from line

Christopher Parkinson

institutional how thought Just should more be the process this terminology bit on your about should I a think, this was offer be more if little we've But helpful? that the just, a Pest across just enterprise institutional bit that as modeling selling while. it's you more great would detail, very you're about Is I can bit a hearing that strategically? business a global you should simply you're the Elimination be of service-driven little thinking for business, more a offer on insights pricing clients? emphasizing, could old we and a color say been Is hey, roll-up, business? offering on how your little business and

Christophe Beck

that few that like love in Thank difficult best seen business. personally business, past margin delivered well I've great never Pest the over most business, unbelievable you, a few I we've future. high-growth as the It's Elimination growth years. as And the the Steady, times, performance high here. OI times the in and great but points Chris. it in of worked maybe

X threshold in The reached sales they've first billion of one, 'XX.

For that we to to business me, behind Brown, return. growth, it all the attention, Operating we the to all get high a investment that all was focus, as high separate it's have can business because Officer where our Chief it's report high have want directly Darrell moment the and margin, it that to because the well

margin, report internally reporting and that directly, investors, performing operating what in same that how the same biggest, we operating way which well sure it's be. how time. we've at well full transparency we the as see that note, it obviously, and as segment well led growth, make business you're obviously, performing side business our manage done company business So see is with the a one, the not a the how going a but to best on is perspective, was perfectly aligned as that at to the wanted elimination to cool place this planet, on from management to it's to highest as maybe pretty the time. you And best And helps that highest it's

to how driving on business it's future, going first internal. going the for keep and that we're Now foremost, be to

organic. So

have our devices We team. that Industrial, digital And all for see as connected of in today. as the forward going in company. side, We're Day, have and instance, technology are XXX,XXX well. the on a especially And we capabilities during we'll Investor that keep great mind so you leveraging

technology capability the X,XXX as have that people digital today. over for that build all have working well we have behind been We in years

ultimately business. we're in a business our to transform that digital to best While leverage business into going all elimination that really

on it. small doing but as done well. we because know To past make of works It some to the that, can't how comments really do we the we've big keep bolt-ons will in M&A, question

Pest will to find good that companies So we add can every will we so. we do Elimination time franchise, our

So better to a getting years great better story and keeps get will the that in come.

Operator

comes from Capital the John question line Markets. of with Next McNulty BMO

John McNulty

maybe a does a the it's a Sciences I bit, wanted just kind up Can So how you're clarity know us struggled of half little of of like more what that filling look seeing to but and out flesh back that seem on out to finally it terms little pipeline is year? business. as the this we starting Life pick you for momentum. in bit it's bit of

Christophe Beck

in perfect story, is years growth growing that well. we many offer. good QX, hard. that discussed just We Yes, one that our showing look time, Life is digit is And Life platforms X know how takes did what at and is that's it's customers performing new times. we've of It the double currently business interested that we example as building a sort results newest it fact that that Pest a was how but if we you have. can Sciences market just of in John. back done the elimination Sciences is down are a in we the

market, like perspective. So we don't can year, where that business, we I'm mid a I this customers, of that, market half I seeing to can't generate early going versus how from what this Is a but I influence like are influence and market we it I year, recover. is lot I serve I here. and know how the that, second next know. new year our

I the immediate the like that Our innovation industry. a shaping best for truly well agile a we're industry X biotech as position in here. one, smaller that emerging special leader at of that lot can more the needs the answer one, is with the

we a signs now from some were building we're we So positive a of place came place growth. seeing where where

business because is will this to going down We at keep be of the firmly are a of to believe the that way in our north that XX%. be investing business capacities margins target road capabilities, multibillion going I in

Operator

from the question of next Our David line with Deutsche Begleiter is Bank.

David Begleiter

portion was there where the enhance investments now, that biggest by competitors, the in you're exactly on geography, market focused by the timing of investments in being and anything Christophe, are opportunities your decision? -- the terms the And back business vis-a-vis that growth is seeing right of where going?

Christophe Beck

to question. your first Maybe

businesses and fuel the categories. growth, businesses Those the protect in the with you, shared returns. we the look I've categories we make our on key smart of and So a fix. very The and growth, where growth do our we at transform big X are where, sure X put invest projected our based many as allocation that accordingly broad they to so markets capital

talked institutional especially are about those just are just And talked We Industrial, the areas growth before. data they life before having about obvious elimination So opportunities, in before. pest candid centers science semiconductors. just are X there about here. that talked are outsized and We and new

have We in and markets. both position a good stores

much the on markets of ultimately know, and As that are impact water you X, from disconnect and more X to help exactly well, the energy/water those needs what the huge side. impact high-tech on centers the end that's and amount for data but the natural them we same same from do at companies. reducing that on more energy. and It's customers help we to are, the semiconductor centers, manage high-powered environment much AI time our related data growth to the And resources, many

the the I'm in terms environmental few proud in in of the to in results help leverage knowledge We're over of technology, reach also and MAX which really to so accelerating and terms industry capabilities much Ecolab in we it ultimately what the because terms knowledge has so industry every much impact. in of business has to every much have performance, so data, digital of investing order potential years, team past that done keeps

growth investments. of that's in So terms think we the way

Operator

from with of is line Raymond the Pavel Molchanov James. question next Our

Pavel Molchanov

would the ask headlines U.S. opportunity as you I in to been comment guess what as the up just generally in like And I the internationally? looks has well PFAS for U.S. you on the in

Christophe Beck

to by in the water business years, fry we've Pavel, leader but topic time, that been we long political for a want of like prio purity the almost or for PFAS, as the And XXX in time, globally. been know. you water part very on marketing very mastering don't a be we've far, long of

things the we do So is PFAS water. in purification one that many and do can of

The government, This really BXB. go we go. customers our to we company. working And remain want a understand BXB to as a working we are interest have municipal commercial, want very good to technology, as they make the very the have for So they we is news that investors very it is our residential. money company, but solve of safe as we forward. we're where well where for closely to do and lot to science, what it. customers, is we way, not safe . We on need, a on we which the expertise with remain have customers limited mostly to are going it can the the that for with in

So where more see this and we'll we're I on like are, come, we one. where to going

Operator

question line Alexander next Our is the from of Laurence with Jefferies.

Laurence Alexander

I a targeted and question growth around sort the of investments your have returns.

metric everything we I about. think that for Ecolab think usually has a can almost

at playing and into or hit getting and is as better more a -- kind for have what you getting do So the -- Or the kind investments? sort of for how and I you move of staff your your worse customers, guess is what sense marketing in historical I'm training expectations of hit investments are rate for is those types out? to compared of rate your data to marketing

Christophe Beck

world. Well, serving when is in getting of time. at no connecting, one the well same as and one XXX you've digital . Today, speak, the heat the operations rate else different capabilities thousands devices much in around have technology, data think as AI, else no heard, XX of that and the we short X we countries, industries the is are that data world we better, has especially in that terms has as and answer million uniquely in customers positioned, we

our no an rate. When is you XXX% So well, there think almost raw technology digital we heat of investing in in margins, technology. know digital is that material terms into

higher So our are well there. as way margins

is So it's us kind high-margin investing and quite it for have digital remarkably. no-brainer. potential, AI years, that a the done large certain accelerated XX X, combination unique we've capabilities behind a years for we've and we of last And and of X

So rate. this XXX% of it's kind one, heat

And to other productivity, I our it does, important some absolutely mentioned. improves that we continues before, the all it want to sure our ones, continuously. like in I've like as accelerate that SG&A so. But underlying said make moments, now, do For it's because investments, and productivity

as frontline time, our beyond digital at investments front the our well buyer in to in well the So line. power, same support capabilities our as

to about going our I I for pretty a remain to the higher going But SG&A, it's productivity and so when of normalize strong. XXXX, drive think it's going So underlying second think nicely half and ratio slightly is to while.

Operator

JPMorgan. of is from question with the Next line Zekauskas Jeff

Jeffrey Zekauskas

company in was the overall volume X% I was paper, you you excluded I the said that growth the industrial business, volumes of think what and increased. if that think

the take were Is I know, industrial business, volumes or down So right? in year-over-year. I X X. don't where volumes up, institutional And that it that

Christophe Beck

the guess that's end I Jeff. question, of your

Jeffrey Zekauskas

answer the Is my question. to

Christophe Beck

mature. Very be not I I will something, here. was missing good. obviously too

So on volume. lot a

right. You're

we're X% That's the the company. So for it. report way we still

why So that's I'm the to That's saying not surprise. a X% X%.

feel in So every I that, again, the that created good year, really quarter getting same. is for the

go year-on-year of 'XX all individually flat-ish the It's overall previously doing well, just as water, for ex-paper. low hood. of kind very much, have And we the really growth directionally, X% total if the where And good, when I I here, half volume. because But we I need you're so you little in do some right. ]. I'm under single Jeff, well. with think institutional have to in talking and price, comparison, Industrial, it's We various [ feel a water Downstream question. mid manage light well. as kind some with. businesses, X% Within year really about are positive the and as the feel a mid-single, too Industrial, is high in quarter place volume, in, good volumes I heavy hub they bit good shared here, well, are so the to more first were correct want not well as of were Well, as I've in to

And softness. year, mining against that's really well, then and in we little quarter crazy paper bit QX comparing a had have but you negative doing then a underlying because last

world in right moving is exactly the where is manufacturing industrial generally, So not accelerating. in demand a direction

we're like where where and going. more we I So even are

Operator

is Byrne Next the from of America. question line of Bank with Steve

Steve Byrne

primary get of you say and business? estimate are Do like that products growth the control is control? getting what on other could is -- into would for your that fraction And of fumigation the platform so business. follow-up the Kind industrial fraction the within Or and an of to pest that customers driver? have a expanding driver within forth pest and customers you what institutional

Christophe Beck

grown that Thank many the almost you, The if Customer, pest Circle has years call of through elimination customers the what over have. has even the pest penetration company is doesn't Steve. Globe, we business the which Circle last entirely

well other elimination grew time. same there. out opportunity at As as of few base, pest the billions years, pest they look non as their at I within got over which last businesses. Pest the well the worth customer our for customers new opportunity the But feeding the obviously, well are elimination Elimination it's if

why that That's limit. much. the is I this is Sky So something business . like so

Operator

The the next with from Research. question is of Vertical line Kevin McCarthy

Kevin McCarthy

what business? but deal housekeeping the on Would comment closes few also surgical on those you the half to proceeds your a could expected the when proceeds the the the perhaps basis tax of of EBITDA and I'm sure Perhaps level back be, divestiture. year? in not of Yes. deployment that on cash you questions attached might comment the

Christophe Beck

get before how I'm that so look you. Thank heard my open we at I it. there, pass to question in going you've But Scott. Okay. basically to

too business So we're information. not disclosing detailed much

obviously, care. That's So for underneath health what business the case, a within we publish.

Scott. headwind million but close $XX once is the we kind direction, of quarter good So more to a per that,

Scott Kirkland

this full gain, don't our And to housekeeping perspective we'll I expect amount proceeds get priorities, we to the good focused committed in And the that's and which . close ahead But and is perspective, to gain from investing capital to not on very realize Yes, special feel year accounting allocation high yes, the in to the estimate once that and going we're we and which themselves, first, on a sale but included transaction deal tax on the charges. closes of Kevin, but had the attractive on from point, once do is we gain very -- I'll charges the finalized. We talk in the gain that special be $X.XX At will just disclose in. want a remain ourselves. need business. very proceeds level. the a

Operator

the line Patrick of is question next Our Cunningham with Citibank. from

Patrick Cunningham

Can the foot outperformance? several trended latest Is So market your growth particularly as quarters. there. Europe in maybe standout And that the has institutional a and for Or drag how is improve? you on quarter? region strong volumes been mostly us give on thoughts to starting traffic

Christophe Beck

X in questions So here.

And So we make average just to business no It where of picture, used years ago, money. today, to market on a Europe, company it's that's has big a I like a XX today. a lot the done. close what this it's business the takes

last has same a well work, in in as very the Europe done growing grown well difficult and is very margins in a remarkable have very So the time. kept at quarter significantly first expanding, environment, as year, nicely has

performing Europe well environment. very in a overall, difficult So

Now or question right have. not traffic taking on mostly people versus sitting we dining and Foot customers a room a the within especially now traffic just don't and institutional digitally is food so to drive-through the it's up ordering share XXXX your our as restaurant, not traffic, well. and gains in customers the in

this obviously. further even is traffic While down

we if where in recovered growth, that that makes look terms in where share. business, of even by that yet in in driven at market terms it business a So well, are of the hasn't better all margin because I fully are of we market it's performance

Operator

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

Andrew J. Wittmann

vectors, more talked help serve Christophe earlier you people our investing serve kind as And to about of across Ecolab. then in digital X X how you talking investing about AI. more the you're and customers, Q&A, growth to were

time. been there's customers various the to solution So initiatives bring whole over to

you're better a your try that's here guess bit even customer little I'd from to use guess? different that I what more terminology, to I the understand doing to past about to like circle So

Christophe Beck

another can business years. as familiar information country, in XX that practices and last customer. fingertips knowing I that value you, been if with continued with. the we our have at be long data are and growth day, to deliver businesses with are all opportunities specific Thank it transparent SAP they going all serving not them provide how that journey, having the long to the to a versus make progress made on They've there. phone, that a it's best-performing I'm of the least, last sure the one so and been It's probably can program. I our our them. units on office, teams It's of in to of well. over keep We were get second We how not to end customer where Yes. best-performing best Andy. that At use transparency. customers making their how that the for know view all and my real-time And also Ecolab we call well What end another them maybe a work we performance that level that have, journey. drive used is. needs that what's sure the that huge this to data more We're unit unit progress their that on the on of the performance very the At potential the And good as know at the phone, but with is we've need will part one the know, help want unit. investing and We get I them We all have of back they our get the that. making is there. of the to day, which there. help even the to that,

SAP plus perfectly have XX% customers. business We aligned proposition today of on behind so with that is our

get here. same even moving pure at in time. advantage grow there in I'm margin to order is higher no It's even evolution. faster capture to order taking and of So more faster the the revolution share

Operator

Next from with is of the Research. Harrison line question Mike Seaport

Michael Harrison

the in if mining business. I a little dig was could we wondering on bit more

just weaker against And we in year? more of the how did higher-value comp, shift acquisition of kind further segments does an mining that that in . where shifting segments acquisition rest back tough I in move toward I'm that going a how was and then that process can help you year-on-year business you are on it little but And give if November, the of you what's to curious fertilizers? that's expected a market? and on mentioned color toward trend You along of the know the higher-value

Christophe Beck

which last I of was XX focus as And what ago, to back cyclical, conscious XX-XX higher exactly the total world much like time. much margin years not that going transformation we a the today. towards to closer and we've is with shift over are years was business all where and is at XX-XX where made past, to why then love and mining coal, yesterday That's And lot about longer segments the going exactly the mining. was transformation, the I our focused primary even well, more same everything time. think term. XX not decision where Mike, When of things those towards growth of we're we where made a think more copper, well mining, less we about with much on think spend you about because think business is metals, lithium. it green in about

operation the time, of water water at the because with same do lot help mining the well lower impact. as to in metals precious water it's is for produce ends better the great and environmental a they use most water with there's for ultimately and not So say both not can the time much a industry exactly on recycle environment. enough much to the We a mining has least

that it reached time. driven year, that mentioned, new is transformation. well. towards because that the place. really within portfolio we've acquisition it's takes helping as That did Changing towards something to a we place as to and business us we've the that mining take is So just it we call And right as the you get well, the last

up year. less last of right the much better. had end year-on-year almost 'XX cyclical, the with first and at of that margin So comparisons was quarter no XX% cyclicality portfolio, much day, the We

the come for be a is just going most it's next to The part, story. So good quarters to year-on-year comparison. very a

mining so I XX much I like ago, mining like today. didn't if years a lot So

Operator

Morgan Our of is Vincent line the with next Stanley. question from Andrews

Vincent Andrews

medium-term did you with no to that of achieve growth? things number what why to asking, I trying And Christophe, if love wasn't bar volume back either spend. earnings of just guess versus a And your could in to process outcome you What set Are I your spending, you near-term do? guess, go the or or you things amount how the I to lower? a on terms up just I'd came did your hurdle to say somewhere. thought I'm higher you investment the have to certain absolutely get sort or

Christophe Beck

you This Yes, long ended we're XX% targets EPS is our XX% to promise. know, to the growth XX% working that This my together This job. of help is all in Vincent, the OI at probability as wise invest run. delivering margin, the the guiding to. towards what our same the well as is for us the is principle of X to raise time X

looking So delivering investments. those that's way all. the about all way we're It's meant not long-term at our at It's a in short-term commitment.

And about in of not let's only some a there's we moves in threshold deep and and we as a there's intelligent willingly. as as data threshold have there to "Well, think saying, tech, dumb high trying places, the X at making So probably go avoid fast well, That's there. moves centers, in we least semiconductors global when can.

well market keeps the at putting bigger done as there. margin, about huge the here. get get XX a X threshold and as to we that in I'm is not it getting a years. as few of we've and a that my sure can. well It's out you promise the It's making and position. leadership as as next you. fast a . it's have OI my end XX X, We to This the guidepost EPS XX% day, to the talked But

Operator

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

Andy Hedberg

you. . you day. call our great will Thank for conference associated participation, website. the slides This your time wraps up available quarter replay discussion has and call. our for hope and Thank be rest first of everyone and your conference on a That

Operator

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

wonderful disconnect time, a may You have lines your this and at day.

Ecolab (ECL) 30 Apr 242024 Q1 Earnings call transcript