Kimberly-Clark (KMB) 24 Jul 182018 Q2 Earnings call transcript

Company Profile

Participants

Paul Alexander	VP, IR
Maria Henry	SVP & CFO
Michael Hsu	President, COO & Director
Thomas Falk	Executive Chairman & CEO
Ali Dibadj	Sanford C. Bernstein & Co.
Stephen Powers	Deutsche Bank
Olivia Tong	Bank of America Merrill Lynch
Bonnie Herzog	Wells Fargo Securities
Dara Mohsenian	Morgan Stanley
Lauren Lieberman	Barclays Bank
Jason English	Goldman Sachs Group
Andrea Teixeira	JPMorgan Chase & Co.
Kevin Grundy	Jefferies

Call transcript

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Operator

Ladies and gentlemen, thank you for your patience in holding. We now have your presenters in conference. [Operator Instructions]. It is now my pleasure to introduce today's first presenter, Mr. Paul Alexander.

Paul Alexander

morning, good and you, everyone. Thank Second Welcome Conference Earnings to Kimberly-Clark's Call. Quarter

our Falk, me Operating CEO; Henry, today with Chairman Officer; are Maria Chief Here and Tom and President Mike and CFO. Hsu,

Tom, call. full Maria the of quarter with year. and perspectives We'll After results. the for his with Here's Mike provide our will finish second will agenda Mike that, on with the begin outlook and review Maria. the results for Q&A the

the a As of of presentation Investors usual, in section website. materials have we our today's

Now Please reminder, on of we latest section statement as discussion will a report be see of forward-looking making Form annual Factors further statements. today. XX-K for the Risk forward-looking our

morning's adjusted and measures. has referring we'll release over exclude adjustments news further be information Lastly, about this I'll reconciliations now, outlook. to financial release. results GAAP also Maria. to comparable these The certain to it Both turn and And in items described

Maria Henry

spending per strong finally, Helping profit headwinds, start our delivered Paul. sales Good headlines markets America. everyone. those joining quarter. commodity reduced Thanks track offset with cost on and for in we're for share earnings overhead were savings program. Thanks, inflation. and operating to call. Margins adjusted morning, North sales were lower even by we growth year-on-year with was the international as up the in Organic were and I'll And impacted the significant by offset X%. restructuring our

details of the to starting sales. on results, Moving with our

by adjusted fell basis X% the selling year points XXX were Organic On X were with Our billion, down Mix up net down was quarter currency point gross improved second second that's a year-on-year benefit X% net XX.X%, from X%, and sales less quarter with rates. profitability, year-on-year. prices $X.X volumes margin sales even slightly. than while ago. were

On we full $XXX in of and other original planned between costs, a primarily more cost what we be Second than quarter million. inflation Commodities that's basis now average, inflation $XXX We're April, expecting and higher and due raw year million to pulp January. commodity was in more in drag operating XX.X%, will margin in quarter XXX our $XXX million million secondarily, that $XXX were in down plan points. adjusted than materials. the $XXX million assumed

While discretionary cost teams to spending. including commodities targeting of than material higher are overhead continue managing savings a in than now we're savings expected, and FORCE and $XXX $XXX do higher achieved year, million job million and the our We that's our great tightly quarter, savings delivering original $XXX more for cost million target, $XX million from to value negotiated of to $XX raw million contracts. the

million delivered $XX savings where from actions higher $XXX $XXX $XX we full addition, million In year and expect and of savings accelerating restructuring between now That's target. program. we million. our than feasible, original cost our million We're

profit In sales. addition points between-the-lines In adjusted total, all, spending overhead operating declined in net to of All X%. basis the restructuring, we XXX a costs. percent continued as was to by down reduce

tax That a share included with line, per X count. of bottom lower $X.XX, from about earnings growth the quarter X% year-on-year. and On were expense rate, second from points share interest lower adjusted earnings up benefits along

our adjusted end full XX% at low effective rate XX% will the tax year range. our expect be of target We to

was the payments provided of line includes in in was turn and quarter. This capital the the cash $XXX million by compared ago operations efficiency. Cash our expectation, year Let's cash $XXX taxes. flow to benefits quarter restructuring lower to in and million and with second it decrease

expect and in the $X.X $X.X continue We approximately will billion to we the second amount continue in ways. year allocate to totaled to share capital and full shareholder-friendly total billion. million repurchases quarter, Dividends $XXX

product while of X%, were points. year-on-year. X% In business, segment down Significantly Personal Care Consumer points XX.X% although prices our product prices mix basis partially about spending mix. Tissue Overall improved increased operating XX sales decreased In margins Consumer point. XXX mix favorable Professional volumes at costs sales as organic basis while margins our offset XX.X%, healthy cost organic down operating savings, and Care, were remained down slightly. Net higher X at net results. lower improved product Tissue, well Looking declined and fell X%. growth. In were X%, operating in by as Personal sales year and Results X%, offset Volumes geographies. the lower commodity selling to early X%. turn prices XX in K-C major overhead In strong selling were organic pulp mix that, cost shareholder-friendly top impacted by quarter X%. difficult of strong With to second were Mike. basis savings Volumes XX.X% and results summary, down inflation. points grew gains compared capital ways. were line benefits restructuring quarter. by to environment product savings, inflation, achieving with margins making particularly Professional I'll good progress by call all with a significant from commodity increased are we're continue K-C Nonetheless, partially and program and with each our we ago allocate impacted over cost we our selling

Michael Hsu

full Thanks, outlook. my Maria. I'm Good focus going morning, and Today comments on everyone. sales, our organic year pricing to

the were line up target. right our That As X% even organic sales just with were in quarter. year said, full Maria is year-to-date, mentioned, which organic sales in

a XXXX. spend minutes for on me our X main few priorities Let growth

year-on-year. is sales our following businesses. first in some Our strong our even were of indicator volume shipments, American core through quarter, changes is in up products, Halfway North because grow and organic organic better to the sales promotional the first our year, is second consumer quarter. down performance priority X% X% In of and were strengthen which a the

all Professional innovations shares Our are programs. North brands K-C our We've with these track are X Overall, our second marketing expectations. America, on initiatives markets of organic America, year-to-date growth organic Professional supporting were our product birth to in sales in with quarter X% Pacific. X nicely. business, and business In led launched rose a market even and X% sales impacted organic major X%. or and North while in developing growing strong markets, up K-C are lower emerging our rate, outside diaper sales categories. in In South of continues categories. be up other volume Korea, year-on-year by a number with In Asia brands increased are by product our promotion developed

Care turn in accelerate me which let growth markets. Now to priority, to second and is our key developing emerging Personal

for these and were has promotion we Second about year-on-year. In increased sales China, diaper were quarter appropriately. responding Competitive even sales market organic in are the XX%. down organic businesses activity

Huggies quarter, this improved an During premium rolling we're the And second pant. premium quarter, diaper we launched out upgraded diaper. our

sales from both year. quarter. up difficult outside be double the we Europe, Kotex sales digits. behind volumes digits innovations, and for continues Price high to mid-single were impact up slightly for a we've third of Russia. do continue about mid-single the consecutive up Volumes modest Volumes are In organic programs be compared digit positive the conditions. which organic to market has remain continued In In realization in the reflects on now digits were We were conditions expansion Eastern marketing a sales in implemented Huggies optimistic us although down, innovations, transportation decline the category economic period. despite Pricing these increased Argentina, this double to strike. in near challenging. digits the the expect single increases strong Brazil, rose organic positive, while base following country-wide term, will turned and

and Europe, of are terms in are Eastern up most Brazil, in In trends key but markets. our Argentina China positions, in Shares market positive diapers. of these down

e-commerce we Regarding our good which priority, further progress. continue capabilities, build to make and growth third is digital to

customer Our this double-digit good digital rates continue so far results. investments plans year. marketing sales grow at to producing programs, business and in are joint tools healthy Online

broadly me X% reductions selling in year prices second prices. several gone improving. of are X% down quarter April, switch other to of improve and first our increases Net the being about That to in on North in fourth tissue, last America our in are actions included trends bath year track the and price this point realized the let These down initiatives down in Now K-C X.X to in American pricing selling I the quarter have from In quarter. Professional. Latin international sheet-count markets outlined and net revenue. and globally actions topic

modestly months of X pricing We half because the overall in first taken year. second turn mostly of positive, the to expect the the actions in we've

We Still, quarter. be North activity lapping in given the promotion it's clear fourth will face, also in elevated need America, pricing. more the we that we headwinds especially

next around world, that would potential closely businesses in impact our are opportunities North start to the including year. all result, We a anticipate selling net actions America, up any results from prices. the our increase evaluating show nearly to As further

challenging, long-term more to our Now Clearly, we the let selling turn and same responding costs and are aggressively At to strategies environment balanced become reducing by growth. outlook. increasing to continue near-term we the execute profitable our and prices. has time, deliver me

continue our with improve key targeted innovate, pursue capabilities. growth We initiatives campaigns, to and category-building support marketing brands

We long to while restructuring make for our sustainable implement stronger global also on haul. company continue to cost our focus we reductions, the even

the the X%. growth to our of sales target of terms In approximately organic line, year specific targets on for top continue we

has net hand, foreign X% ago, to expected will currencies X% impact. X% a on sales. the expect since impact months positive on considerably a outlook X currency we On have our gotten now the negative worse neutral other we April, to

per earnings of now line, we to share bottom $X.XX. year adjusted $X.XX XXXX targeting the On are full

Our currencies To to that we're of $X.XX. XX% a previous and was put profit that year-on-year XX%. now headwind in will perspective, expecting be commodities to outlook operating $X.XX reduction combined about

the plan original in low Our high double-digit the net to for a drag single-digit included year range.

results begin That additional and are In offset up We in now business near-term approximately cost to we're your expect executing long-term our benefit summary, pricing, wraps benefits remarks, to our savings our a prepared the with strategies time, questions. to and same managing headwinds aggressively take challenging reductions. we from sustainable value. shareholder half we'll more At create to spending environment. the

Operator

Instructions]. [Operator

Ali Dibadj Our first with comes from question Bernstein.

Ali Dibadj

the Can us there, spend your Can cut about I you prepared One need bottom this remarks about point? in marketing is, line make growth give times a at marketing pure spend. numbers. to marketing So mentioned says being just cynic and be are help, on you it have the net please? advertising talk or spend to just of questions in you the couple in comfort some release whether you a you where few in me to Obviously, a spend your here.

Thomas Falk

our on. mean, if I Yes, to can at the and year for it's spend you look broadly similar full would in average I'll Mike say start I pretty maybe advertising quarter, and promotion build XXXX. the

that not pretty nonworking cutting able substantially So the and second thing from you're it's those down quarter. we to prior year are And reinvesting is a savings. bit maybe the see

relatively flat is our spend. if we at plan embedded year so in marketing guidance look the And for our

spend want we're marketing maybe to So on number. that. build you Mike, make not cutting the broadly to

Michael Hsu

Maria Yes, earlier actually line-by-line, on lines and you versus actually are I of plan. and huddling if just up the our it were working all go

an nonworking manage our the was important getting it's our taking restructuring initiative planning, at you us. just in we world. that hard nonlabor better you a efficient are for maybe Ali, a If found around went the all there our or to to of programs produce our to background, global lines of more was we give see, numbers spend nonworking And how down lot that copy is significantly. we or terms And of promotional when little ways look obviously a

around might the the these when distributed initiatives imagine exist can inefficiencies You you that world. have marketing

we're and of So of spend. just nonproductive back, the we pulled getting some really some out

Ali Dibadj

of corollary Okay. Mike, discussions the presentation worried Page is back, And that guys I think just the you you for written. our some helpful that be on the this laid some of controversy be the to that whole last brand confidence environment pricing, of gives think allow world? is, to then you're to you very the it certainly I'm promoting the that And pricing What you XX able around know take to prices. thank competitive pricing going but and slide, selling you and went obviously, a big from pricing, a in that's parts we've that pieces for not it's you, you? I different it would out, take power probably in you that helpful. to put the sector, or about you'll going through

Thomas Falk

we've know we show say, I'd to No, got Yes. you.

history. cost it's of and kind going commodities had level, we been at since while of this So through we've were kind back a

XXXX, that at had XXXX look you were hits both If we're in. XXXX in and XXXX, cost about range the XXXX, that commodity

of it started. so some I with increases. back. price than XXXX, of another of was think increases. it higher in took gave we XXXX, took we two margins we round price the out We XXXX recession, we came

we for of get -- during while that we're So the that hit know and a this suffer Mike cost level embedded scale us confident one. broad to getting is you but we more anything similar so in that while But most do to takes that the period cost at of competitors it be price. commodity the the feel structure price and we time that market, I to there's will if our add else don't there want with

Michael Hsu

I guess No, actions progressed we and that addition we year only around have taken this have pricing, pricing there. some the is the world made some

And so that's piece. one

improve our as understand net large Tom customers as that. as when Second, impact have recover realization. I do and a revenue think is and significant commodity we mentioned, now, you And have our it right to

take evidence one, And have the and would markets show of pricing in intensity markets early promotion seen the moves actions. going the some a various we And bit; easing and appropriate maybe so to by in seen are indications markets is competitors. maybe: some second, we've that we some

Thomas Falk

And it leading so not everywhere. we're

Ali Dibadj

then pressure is what you of you'd returning your as your And implications How of folks some sustainability to a very Because to context you're as share doesn't on you're on on payout that the about could environment the of and trajectory, and cash facing at that like, And the we you should right? repurchases? as obviously, also which the commodity and certainly think in look question shareholders. here. dividend recover much try is like so comment QX, EBIT, EBIT as EBIT the pressure facing very although ratio of context of just your if challenging cost, lot in is recover and the the well the related that obvious seem Okay. to my clear able around to last EBIT, you're

Maria Henry

million Ali, was and Sure, $XXX leverage where slightly is. of be million We the versus into out that. dividend year, $XXX We we come the I'll year share do expect when repurchases a of it to know you tracking this to still our will and we we're gave do as take year. range that that on the up for what started

if which to the year. $X.X so all shareholder billion And in total put tracking together, would be we things I think to we're on billion you returns, what those for $X.X still set

Operator

Deutsche Our next question Bank. comes from Steve Powers with

Stephen Powers

So through that confident question pricing just the your first in I seen obviously, on to about the your haven't -- can it But sounded time, because up I guess we mean, you theme pick half. push at the in very price. same Ali's response to we ability

wasn't back more cycle. 'XX, 'XX, the pricing lot it this you if I immediate, just -- think And I I to the doesn't go seemed came it we're pricing a through, through in just did like XXXX, quickly more sound although half robustly about, than modestly come and talked think seeing it for benchmark the those higher that ambitious. just call back modest

to -- might pricing if of is I having you least, So pressure perceive at be in agree, you that what's you your do that, something now categories? right -- be the How more versus temporary different? more structural much

Thomas Falk

some package implications I'll counter on that may that. there would as X typically, on of well. price sheet in a to takes to people if to to to your retailers market. restructuring, supply probably months particularly doing X out a take us in get Yes, it's we're to focused But through bit we longer is elaborate let price on a it the say probably price, promotion with Mike bit some you're get other I things. either take going it's And say the longer fair middle plans count, chain big had it other probably that,

other And fair want that's push, some you to to probably Mike I'd say, a that. but so there's might maybe color add

Michael Hsu

the the think as were Yes. actions that were than North far I higher beginning it most they Steve, say said the taken the because commodity year. was, at America. not we some in of including we've at would earlier, impact year-to-date what we I markets, expecting level

of the looking North this we're business changes. Tissue. Consumer American point, this a another made couple at big And good at like pretty would I So We've progress of round in pricing. say, year

QX we've QX. Care Our in flat an in being up that points bit. that's the bundled might pricing Personal numbers, with artifact we've probably in a X there. have all lagged in product could after seen, you is desheets improvement And the of our see And you

still to down innovation we're pretty from adult on well. bit And and in doing Part QX. also wanted Huggies an we was of Our our care. That that pricing this artifact that support a that year we end we on that we of promotion plans go that of strong pretty frequency the and the through as and plan last adjusting year. easing the also some at depth had were said, balance locked promoted year is

Stephen Powers

feels competitively, so pressure and it, and the Personal mean, super guess baby on consumer. now. the the get I on you're I to very and for care right important I feedback this. category, Yes. is like retailer this They're asking just but focused on your it the are one It -- winning building, I -- Care especially hand get in that cost that

there's so They're prices them pushing lot pressure on private keep a label. from to low. of And

of biggest their wants competitor, I biggest to their biggest and pool definitely think, for what is Your if win them one categories. profit not

especially like year, back not feels you Do more are agree? that structurally I in it? things Care, this future. am Or only of Personal overdoing pricing the half going are in make there difficult, the foreseeable are, for that it So to but

Thomas Falk

mean, hasn't category that for changed for been time. isn't think I care all the retailers on that market. although long depends long, our the it Well, important always a I much. has say baby I'd thesis an wrong,

And be and our industry shifts. want customers, think want just they competitive. I to price to the And so commodity cost advantaged changes when be they somehow. understand They --

work it. as they implement much. private-label very moved The good look news we is and haven't Personal shares you what so And at that's broadly, we Care have with to as

in a in a the helped innovation so anything, down -- front that's tick diapers, on And bit. mix us they're positively fact, if the driven has which and

Stephen Powers

Great.

into cuts I especially not Ali over another really look the on like just so and reductions is one the on that could, if And savings past Okay, I just or I topic, cutting to side. years pretty media, year, comes comments not SG&A been at your SG&A. the the question appreciating working which feels to but when overhead X or just are -- this that only you're you've of making nonworking aggressive part about it

year, question get where the level much business? source look them like bit I into of Can just a back to you relief the it not sustain I How for have you. Because you're of to cutting? might of of out put feels is growth is, to you that next sort or you inflation So want guess from? offset sourcing when there belt-tightening the this that of profit little may this be

to for that looking help bridge gap. some Just

Maria Henry

sure. Yes,

things We going on of have on, a front. number that between-the-lines spending

You that $XX between program, saw line. the quarter restructuring of the XX% in fell of delivered savings we from results million our second in that our

ratios margin, gross So our in and helped has the below second that certainly quarter.

been second making things year, our of really like on managing can half activities. investments whole the results the discretionary workforce We focused we have those in behind all growth. types those T&E, very really come less we starting that and have taking valuable tightly so of or that either of our protect those and last unnecessary overhead we're spend meeting spend out types you expense, saw are that, that through Beyond of

the the of I'm rate is Your be the know not going rate on program, program seeing And really it on, side of our $XXX quarter, going the million in our couple take said, look and out area between to probably The years, question $XXX the where restructuring to working system associated looking of continue the reductions we SG&A from of sustainable. as to productivity programs. is it where hard, house. to X/X leveraging you're that is quarter guidance every you the say I and to when accrue we're going discretionary next lines that but restructuring second is, the cost the and to the is work where working biggest is that with work administrative that to hard. the various We've the got part of you hard, the will over of that P&L. at savings general structure million

really grow structure and we're the and it, to our at top lower behind invest fundamentally to business is goal hard brands continue line. So of cost the the our to

Operator

question from America. Our comes Olivia Tong Bank next with of

Olivia Tong

the Because to as want focus challenges go-forward such actually the clearly beyond get year product how willingness your change to and consumer's this give cuts more of I be and ability right your guys been priced just was us in a companies, like is for forward, what you you your working I price, pretty to lot view hoping you would year. about necessary tough there's given of spending, longer-term need another parts, half to the going could on first get about in growing more happened premium you And but to pay growing of already nonworking across some marketing ask in what's sort expectations? that around the many areas? seems there ability it the overall. it now, to long-term Is in color hit -- to more the investment we Because talk there? algorithms

Thomas Falk

Yes.

And think the back very so, do was good, kind we to of question get I really the line of most questioning the our Olivia, so how heard quality of wasn't I do growth we get that going signs progress and to of summary the there. when algorithm longer-term have good a question? changes Is you and to to make see of are what

Olivia Tong

it. got you Yes,

Thomas Falk

Okay.

are pile Argentina have going I'll some little some start, largest the a where made double-digit birth second in where X% the places is in on. rate America about things but that rate and places like the And factors, our of So lower like Latin aren't Mike on kind stiffer, the diaper declines we've and we've of obviously unit I'll birth some talked the markets, down helping. let market, seen Korea headwinds volume of

the products On which world, hand, a like like in that got you in best we're places instinct Mike, as baby we innovation we've behind, robust over across places see pipeline is powerful that. more driving the we'll But And the and investing and other more all for do the a premium to that. comment our bit can that China. a maybe portfolio use on drive little U.S.

Michael Hsu

categories. Yes. Olivia, us we're but very big in bullish plenty consumer products the believe can on we're there's and help that to we back that the big is of still opportunity dimensions our we of help categories. us Obviously, working our the premium markets grow know to value the across still I also elevate to the pretty core big believe a have in best some big We make think is there's fundamental get consumers. in from believe markets is, we'll our that swathes of innovative there markets, one, the of big we But planks world, a there's need to on. we we for categories performance opportunity algorithm. opportunity we some that the our part think And some improve that

potential also elevate developing in the markets. category developed there's, bring an so opportunity markets. And the and more big category and obviously, there's emerging think in into we significant And large consumers to still then

say what today, you, And markets is of accelerate growth, to and but know Obviously, and going multiple to coming it's build on multiple today plans As it as a we other to we India We've all got so we've our that. our that. largest that but got can to well. be China we're times, said years. show I've in we've is got working then market the --

Olivia Tong

product changed or thing all discussions guess those in terms -- because I just a bit guess have the right? maybe pricing about just to talked I you can markets and or one anything helpful, has give started by it sounds of follow-up U.S, have about those what You've in color plans a of developed -- like very that's had your package reducing transpired as you the little talked worsened so in but China, doesn't that like stabilization way new still that's pretty in are but doesn't and anticipated? QX we've seem would and track and about you that -- far given count, obviously the competitive transpired had then high. imply it like that data pricing, the in that seen rollouts price promotional innovation it you seem channel And levels challenges, that's

Thomas Falk

has back it China. pricing in one desheeted and some but counts North more. have frequency competitively not, promotional do some Yes, America, And tissue categories, products. to plans bath and down Yes, the come have our moves, have depth in I'll some been we've there down is, we started to additional back

our some have customers We about with discussions had this.

value add the is it or to in think more to in way they I long term category. also see fixed consumption the create categories, to grow category the elevate

just just talking, for products value-added pay creating price that for. to So us our to is more people indiscriminately. to strategy not would be we're It's willing our not raise in

little a bit that's So on America. North

and in think, other little I -- the product most pressure. any my a has world. this under most today. been in core China We've the matched double-digits in terrific the thinness, bit quarter, is launched start, superior markets other I market. that's impact has the bit. out, think that's belief, our but of are been said, think one to been premium And Xd come we've muted those a in on rolled muted recent down this overall in off manufacturer cases, in about That pricing because a to we I have some good major results we mind in any pricing ways a our a have It that got that in as delivers new of flexibility, little China, market breathability

our on a they're now, have cost it that we're remains to it, All knows grow. But structure that So that team to and a board single-largest to make China that for haul, knows products competitors challenging we margins see we've got the lean expect winning because a opportunity, it the great win we the right how for how bit operate to long need. opportunity same be to going China the we and that delivers in too. within

Operator

Our from next Bonnie Fargo. with Wells question comes Herzog

Bonnie Herzog

a Consumer X%, volumes further, I on somewhat was comp. easy to and were X% down go a drill took Tissue bit some wanted yet little it the business back on pricing quarter, your down you in guys up

like segment occurred your then weaker strong I'd is price second, environment? guys this first reported elasticity? QX? hear also volume the that in then in thoughts contributed how your have to might about in And that So And in QX. thinking you on maybe the loading in changing much volume, to How elasticity

Thomas Falk

So I'll over Mike. bonnie, it's want typically and high load start hand very we it don't I'll tissue to don't anyway, to say, load really tube. customers I'd and a

the price. And the calendar then through. strong will thing you a give that sold you see so the color, and first second do a whenever promotional Mike desheet, And and quarter little you more second on positive the negative volume in quarter,

some see out, and in volume if And in your desheet in typically that both fewer you're to there's customers count consumer. a were yes, going cases decline down it's show it environment. volume before less and measure but We so the inventory holding try not some that so software unusual or to call a to customer or sheets XXX it's got don't

exists. ship. that's issue. that case It's so that fewer it units there's watch to just standard elasticity that in of life and And for a something we facts an just know each not It's

or we the half, on with the Tissue as at first plan. Consumer less track look so more we're And for

Mike, I we've if stable, had shares else add organic know Our there's to positive don't anything that. you'd are growth. and But

Michael Hsu

promotional shift was numbers, of was Tom to few timing X, I'll about. due in that organic most No, that on talked Bonnie, just QX and speak down that our

Just American Consumer I our at was volume up back to the X%, think North we the memory, run your in business. said in that, refresh QX, the time Tissue is of and that rate not

it big year. through load, last a was QX a It more volume in that was was in wasn't QX So sold shift. of that it

are innovation plan. said, in off doing our additional well our good So I'll is big X%, at that's one sales Tom change. very care family tell as a which line in up to with And year wipes you start, is very year-to-date, launch. The were wet thing Kleenex this our

the velocity now. if wavy the is very is performing selling product. at mid-single of of feedback. well, shifts, the base already the promotional in very velocity largest it's exclude ripple It's well customer rate getting right up the you some marketplace kind consumer-preferred it and wipe think digits. I just And is great Cottonelle

So we're new we pretty about excited the have. items

some the in getting family and realization are looking forward more. price care business to We

Bonnie Herzog

it a with there And helpful. go is I quality but the wanted competitors' they're follow-up actually I perceived Chinese That's brands, a be few back and in your lot months a was from to the the then actually perception attractively. of times of to to that a Okay. better, market consumer ago, seems priced China question. it's key more just

needs more just what You perspective hear the this? be that love kind on some there? innovation marketplace, if market? to of on into you're wondering implementing positioning just So improve your bringing be changes And to touched may then to you but that in done your

Thomas Falk

done, also -- there's rolling out a diaper second quarter, similar the team I Tier more came end to significantly good definitely off think year. The the then also quarter. diapers diaper-pant a has out a rolling at And the of great the be preferred. this done first that's that job new X out beginning we're we're yes, of to that Yes, start needs but

with perception is all there a would our testing there, think product. versus a I new preference show our the multinational strong out competitors

data, a over are they've long the for haul. responded on on perception are winning think being in the Part I we market very is now though so has aggressive this right team China people of price, and the developed the And the challenge consumer the and to product.

don't we we now, price, -- to driving things definitive are on although we matching in to are want right winning those to And that's price. product, on win we're as market positioning. brand well. want quality that so and the And return And on

Operator

Our next Morgan question comes with from Dara Stanley. Mohsenian

Dara Mohsenian

So question I Maria, on just up Steve's to earlier. want follow

to is in some savings temporary cost that have year. discretionary and look is look there ramp of hangover back when of is areas more half You this -- speak the savings, up question I'm or wondering back back that may in talked you'll you to any that the out, XXXX be type 'XX, about of in come but terms some cutbacks travel, like incentive to et discretionary what's look year hesitant of these But cetera last how of are XXXX as sort I in much of we cost and XXXX. as the the compensation more XXXX? know belt-tightening driving for we more out to of out

Maria Henry

factors trying our we're rates quarter. on affect of a any within is What is lower-cost there that will our think given number what do to SG&A company I are a structure. fundamentally So run

new finding lower-value money working we're hitting as that ways the require that's spend didn't that in hard to something added us of So restructuring. activities. much And on

adjustment. reduction the and of not the spend, in our nonrestructuring clearly, guidance macro are discretionary in as range kind environment we In year, on you of see, in target our happening for terms the what's

year. the comp So structural. the business do will we're making most that a are we this year not next for But benefit have changes hopefully that repeat the part, in

going of timing the these Now vary changes is to quarter-to-quarter.

let we example, by about within savings that program, restructuring give restructuring in increased our actions, accelerated an we you number which we've certain So why fact million $XX our XXXX. talked the is me

we've severance we've had leave the given and through a a the employees are savings number. actually and lot program voluntary our that is program net The so We restructuring business. of

the add-back little a excess the So I a in on lagging little we're would on that the say probably bit ahead and business.

in here business, teams to itself have this seeing work the and are thing, the some the shifts think, is the out and offset help that showing is it's we around through XXXX goal some cost is overall, that'll doing accelerated year. about. a And that fundamentally fact program all I to for what we're number the of that So But, has really of the structure overall, our good restructuring hard headwinds the play lower the headcount, that there may us timing that's savings year.

Dara Mohsenian

trying in then change It the I'm the cetera. That's in that, it Care. a doesn't of has sound last business guess pricing usual given just pricing helpful. mindset front the half $XXX some et combined impact actions, big is there to Care it Personal terms sort to and like like return pricing over I understand input of in if year in you and of the back typical million, Personal And I been pricing, around looks wanted in in as cost of look to big number. Okay. sounds frequency, more year, the like it's a stepped it's

the more is a Is me bigger competitive that's your it about internal not recover the it I going pricing it's more why we you've understand can lot just is Or change lost? your think actions, limiting ability? forward? own environment? it So as help a just given competitive environment focus? that guess Does of actions? you significant environment are what competitive these Or moderate And

Thomas Falk

you and I build. it Mike we as I'll probably impression. guess was impression let Yes, was start business mean, wrong that usual, then I if gave the the

cost at In innovation we so count, not this places, levers. those the compete looking on to And that looking price longer can a when much whether of takes get kind places lots commodity it promotion, that stable going execution. price business run price environment, relatively than the of that vehicles, we and typically lots assuming in But all to trying pull others. environment, commodity through to of and different get we're we're some in

the take while plan products marketplace. heavily in the And getting focused and I'd so say not trying of their ball the to right that, the on team the eye innovation and is winning executing

Michael Hsu

Yes.

add, talk to let's Care diapers in the at I year, think about U.S. Personal last least, Just

a I competitive point had on more the gotten our more little call going last more more of depth the saying environment that I frequency. and we this think bit promotional in year, meant was and some and intense, we're time, to find this in think were marketplace, at -- plans become

I significant to intensity. and historically terms has, market I think year, the it back promotional normalized mind, change in a maybe of where has in my of think there been this has kind been

are had So the us. increases on was part one taking of is we're business for because opportunities to need we to maybe as additional our we price well. evaluating been some -- to like side And part. That's they our significant make I the where or saying pretty to well, as points planning pricing Personal historically back moves trade some side, we're we Care for feel there where costs adjusting then what promotion input second, in and the

Operator

comes from Lieberman question Our Lauren Barclays. with next

Lauren Lieberman

Care markets, So of Personal of... go I just in to D&E kind wanted kind to the performance

Thomas Falk

Lauren. lost [Technical we Oops, you, Difficulty]

Lauren Lieberman

Tom?

Thomas Falk

got Yes, we you now.

Lauren Lieberman

now. You got me

me and down let headset speak Okay, my okay, put before, all hold right. on

D&E So markets at Personal I in was looking organic Care. performance just in

how when to was Europe in everything down sort China overall up in having business quarter, but growth doubled. mid-single, flat else, organic the mid-single XX%, some big went markets you through So script this chunky I'm of trouble but the squares flat the Brazil, the digits, Easter have quarter. things, figuring the all that of Argentina being

sequentially and other not that I might D&E comparisons. that's in probably expect way even to thing that What if I of now on particularly to kind again have out missing both there markets on decelerated what I markets X I forward in having the that were tie weak. a probably maybe am were stack, through quarters So D&E markets to the because improving think other X-year based look a just

from So that's dynamics the and help a a piece both love understanding I'd of the does little quarter how things here? better puzzle. in get

Thomas Falk

Yes.

give maybe little Mike or a detail. I Paul more can think you

competitive one. Nicaragua, the biggest aren't more then little spots is of number. pretty Latin I that big with and Caribbean on missing or America in are of there on through the factor, in a think it. going hurricane part what's litany other we some Central going of signs, parts other positive trend the recovery the China is probably the a And from soft, that And that's size the quarter. issues is was in the go there's activity, pretty, there's some in the piece big with of other bit relative a only those And upheaval offset to some ones and you're political rest first the from that's could it. as that America probably relatively of it, big was And of other but

Paul Alexander

Latin pretty versus total QX you to China at similar was softer. would a looked pretty Argentina and QX, similar softer. you've see was was was if Lauren, performance. and bit Yes, similar American that Brazil

Lauren Lieberman

Okay.

hope better? this go-forward of bit focus America big through macro pricing thinking what Personal the are D&E? Care pieces help environment. look, where big kind Latin just markets, You've as Just from is for these on XXXX for are of of what Is your is launch a of here some little go one things on stability? had by it's and product So gets this challenged in -- the you China a the what in how accelerating

Michael Hsu

I one, underlying about. -- good we think of Lauren, the very Yes. feel performance I think some the

As three in think our market diapers Europe, up about femcare. up and I in I of and points in in diapers Similarly, mentioned couple two were shares femcare. Eastern Brazil, in share points a

pretty premium think some on are in I I or things that of the tiers, the teams working the of think, value offering of improving it's both proposition our tiers So improving working and in fundamentals the value particularly the terms our well.

pretty a bit work challenges part it's Year-to-date in through developed environment, X%. as to of need behind. I D&E, a of to markets that. maybe we've going a is we're Tom work of pricing our got the little a now little piece think our the right and is we're And bit through up overall I are China think and challenging And market some about with is significant business. mentioned, ahead to D&E

probably our our major the the like right in share And think D&E, on on little we're right is working things. got the for But direction call a right looks we first second most year, this for year. of and in call now and in we've best the the the so markets moving half half D&E balance do bit

Lauren Lieberman

a Tissue. talk then could Consumer if in profitability And bit little we Okay. about

in X to seeing X seen we're other, pressures years cost the than any probably the this I are think more primarily margins, lowest business XX% you've probably hitting understand So now. but is

press just Tissue, the kind your restructuring appropriate, So low-margin as terms you've feel that plus high-teens? is in jumps page have low the structural you've some once in a bit is mid-teens? plans you the exits it margins the profitability that Is about versus things over rate off to we've business the it for long-term XX% get been last Consumer think What the the for of you in Tissue? mentioned and five think remembered in run of Consumer -- kind of kind pricing you long-term does Europe. to so seen do got of kind years. I'm of this Is where

Thomas Falk

a Yes, and single-digits. remember I've you Lauren, question, long I you high it's and good been around enough, but

Lauren Lieberman

I've been doing everyone. remind, don't this. Tom, how remind Don't long them

Thomas Falk

And so when is like get $X,XXX you go through that it little pulp a a this price while plus to do takes it through box business a ton, to going especially sheet to going spike it's if take where we're price, it count. and

higher so prior And cycle lows. the good is is lot news low the a point than that the

improving in over doing in so cycle. by I ago. be continue we'll upper innovation, long range mix, up across is teens And mid-teens by hopefully do not And up we plus the time think we're improving the to cost hopefully improving shifting structure. were we that to the can range And the by XX that, the that if what

stiff you costs in commodity that commodity business. XX% a still Care think of shows Personal news was plus, this at see the cycle, good at and margins of I look what's fairly hanging you KCP kind And in the you in heavy north XX in tissue possible a at headwinds.

some next some will of we balance some year and got restructuring, from we've know that us a There's focus savings go work to cost the obviously we get through -- come do the tissue, the to realization. we're year. as revenue and into we've that's in for got So

Lauren Lieberman

what in sub to a today Tissue, think from if say, cycle I you lows, So has the consumer the anything Consumer X% changed like the got competitive where do let's point to last And think. versus standpoint margins or XXXX at cycle? what

worse? Has prevalence too. So of how actually everyone things is this think worried do helpful label, shares Have gotten that in has that of the terms really I and changed? about, threat changed much think could would period? openness consumer be XX-year in you private the demand, this

Thomas Falk

data go something up you and XXXX in share and private-label X little Yes. that been like X. are down have X towel increased. don't -- like back, so huge think our if you a period point over X-year think big U.S., the donor, a there when at think some look we've flat, as and X we're up That's the or in or I we years a points it's shares And have think, generally is not from past I up it's share, in or I that, I towels

up. So at Europe, looked you shares if generally see you private-label

think portfolio, exit tissue that went the that's we I talked less-profitable have to changed some time a is the us the probably that healthier we be So may restructuring we helped thing for since business. last

the And And mix we portfolio. where emerging especially expand so our more premium we've tiers. kind shifted the about into part to of work that then capacity markets, We've continued in choice will business. more of of that be

get the where not overall, And so and I'm we've growth progress we where satisfied I where think with profitable I'm get that we're trying we to with made. manage pleased to it margin get And get growth to are, we should can margin. but

Operator

with comes next Our from Goldman English Jason Sachs. question

Jason English

start to want the market? in how products there's could China. for unpack something proliferated tariff with a been much whether proliferation question don't Japanese around the I just out I'd you're market, to actually it's a to and due past, make broader on and proliferation in the horizon of process some bit there markets, stance of stick on is And the due it could thought and competitors? there about be or highlighted of you've seeing dynamics price on easier? and dig any point, the a in the and or we market? on your that is much the changes much give or the proliferation way endure love why update much market? in maybe what from an you sense that shake could not things the and a the How U.S. And competition your give due how your to an beat major and couple is us us guess I just core persistent in in to This is aggressive how the deeper

Thomas Falk

again start and build it. let Yes. I'll I'll Mike

of I don't any it's the to First all, of think discussion. related tariff

So that China -- or a export Korea, -- sell the that are, part, of made but out import China. U.S. we we all we is products bit for There make the from we in there don't is the most import that in anything

in the make the market. all U.S. also products the U.S. We market for

really So it's a not those. issue big either for of

innovation, guys front, think price. thinks But is -- On everybody some I the you sometimes you the innovation, on compete competitor like also started if other you I the competitive fight usually. us have launching don't when any big have say X would

-- a wants no to so everybody is and China big opportunity behind. get growth one left And and for

And the e-commerce. more of our also this half to category. big is a a transparency And so have price is try e-tailers competing there. in win business little in also each e-commerce other bit it's market, There you with to probably

more So that can a make competitive. bit also the pricing

a the diaper category not world. in biggest the volatile, it's biggest to mean And but it's day. everybody I diaper the sees one else exciting said, it a while. up but operate well. as we're challenge, be our to yet, for It's Mike as will so, And going place that And market be for

Michael Hsu

this Yes, question Jason, this job flying to afternoon. Shanghai I would probably do week, better this out a answering after I'm

my the would think months And couple to to over So there's share of the or maybe of traction the from I been last who've picked I'll chunk sense years hey is, is last know be you you let some some XX local a some response growth. players in nice I of pretty more. tell able price over But up that or so.

manufacturers growth. don't let share And some of the want to their major

Our on price has product is said, and why had out we and response to to innovation, be we year on push competitive them, the which so marketplace, the and has Xd the market match this our we to had competitive as well. big are beat we quality want going be That in them core. been help moved, with

on. going of So that's little I think bit what's a

what's It's the to have And is, consumers my China for we the think more baby. market to want system. that I their demonstrated where premium now, market that for mind going a value strategy market is right create in most create still forward. more the think get I our in more business And long-term, to added. there's right value-added potential best

Thomas Falk

markets cutting, price are in China attractive quite some had to we've while other well. the And as prices relative

Jason English

We've I a we've has couple retailers against been it challenging defend and in presumably e-commerce. to That's diapers do quick of If pretty and rate. sort at mortar growth investing America. aggressively questions to data, it North pushing seems -- combined that helpful. see to retailers, battle. training then to with has also The -- brick birth for look looks Nielsen of mortar And on pressure like pants North be know we back America got brick and surprising there. the upstream is and had winning

one some are you One, driving hard investment not, last if we've with should lot on to on least So pushing what's a lag another Do a brick-and-mortar at soon retail-led that year and of just know came found floor Or of out? price anniversary of private-label of couple we last can And expect restaging seeing retailer investment? that online channel of related stall price the of growth? top it? in that sort sort shift questions. b, Or a that I on beginning think August that major year. we you

Thomas Falk

guess would that. dicing broadly, thigs necessarily other time know seen tend answer which slowdown and of and be we share I I complex a at that would club look of don't of correct and questions. spend set the lot aren't trends. any e-commerce and the don't say indication data, I that data on Nielsen, Yes, haven't includes I to e-commerce all say, so in that's Nielsen to in a our I slicing outlet person

that popular in to private-label we as want our And data shop. diapers. for private-label, broadly, And mom to continues it much so on seen haven't to movement shares outlet in a relates place be all to

needle end in moved super for us positive Mike, there's a premium category. anything while if others that overall been some you the retailers But know you in and has And still the to the seeing want the don't there has been hasn't and at so of add mix to some by else it are uptick space, the segment, that? I activity which some end, in consumer

Michael Hsu

No. that Jason X. year, was is category time from category this was it overall of and diaper The we category last be And maybe part when the concerns is, that and think down it that, think, some that's I I certainly is was think deflation which headline big well. a last saw I didn't the I good as mega the may the X. where news our last And with like customers year, think the for the we the in change -- up quarter raises

winners. a news. the good With one piece that's don't think to channel, we very I pick regard try So to

to our support Our our strategy of tactics support and all is within in tailor customers kind market the of strategies. of their

I it. we're way supporting significantly. them same and that and -- consumers through our with both in that to very And so our pretty up know on customers be are in served. sides serve but want e-commerce we're ways, and is different they pure-play focused And of in the business, to trying the objective, mortar both And in bricks

Operator

comes question Teixeira with from Andrea JPMorgan. next Our

Andrea Teixeira

was hoping if restructuring I the the more So elaborate program. you can on and FORCE

added some you guidance. cuts So incremental cost to

elaborate in on -- your your you can So level. R&D

that describe those include So And one, questions was incremental cost R&D a areas how but this So you against forward? of more that plans? your about optimistic spend terms little flat, part are what you you going little opportunities? what two R&D, if Travel. can But the discussed you then I at bit see look hoping marketing from a of also spoke cuts bit the in areas you is what R&D more that can cuts D&E are became you areas specifically, and previous working and

Maria Henry

Sure. Well in we program you've and FORCE restructuring got have program. the it X right cost significant our that got in

includes we compared were able Let year, our to me up about And with. remainder to second We savings had quarter. of in take that talk what the a to for lower expect that see productivity and the from We're we driving up well to we were it the negotiating the FORCE FORCE product for X generate all program, legs year. the prices. facilities savings which with the outlook that we quarter. We first cost from start and across optimization that program seeing include achieve quarter good through savings across of down our as material as spending

an spike, So worth that we've negotiated when you more. the are inflation have discount

FORCE good expect year front. so have cost the to on And a we savings

getting to work On news the the fact and for about that that's we've of being that because I savings restructuring yielding in teams the us, accelerated are XXXX. some we aggressive activities the behind that's planned and program, good the more talked take,

really has On R&D our restructuring the do covered R&D efficiencies and that have. of we and spend R&D things. programs driving and in two our One, program, that with to is our effectiveness think R&D I side,

strategy. So R&D plank become programs. do an spend very efficient we our innovation we those is have are our R&D is that's area important the more a that behind What Innovation to us. in key is looking in growth to

program. of So part restructuring R&D is the

spend, the discretionary Mike that say That's I'd kind I and third the would we areas the spend on earlier, that's a our hitting big in cost not our that reduction emphasize, fundamental items. piece in include agenda, investment is money similar said we and we've savings the of thing other in the business, all a But innovation talked would business, reducing in discretionary board. XXXX to and got what The of the that across are in is and about R&D organization the both I future. on

affecting and And on with the restructuring so or R&D lines the is the from program of cost a come are either critical that benefit cuts the reductions P&L. any all would benefit the discretionary there area,

Thomas Falk

responsibility of functional I'll maybe one that. and just of Each pile onto areas member for have of our program. Yes, leadership their the team as restructuring part

sales and Maria So had the R&D. had customer I Mike did IP, organization, finance and

our and capability the come right to innovation. R&D going better than was better capabilities the of business the goal my into faster with with we right people So drive the restructuring it even to with in had out place right

capability little have have bit better we when but so this down. a we will will fully less, we And vetted innovation spend

Andrea Teixeira

terms But the sales that than percentage helpful. old. are which new, in like -- less percentage of the that's products of coming because natural where not that are of down I that at products from is that of coming say, Is Yes, years coming down or your you're are that point? that think adjustment making Or is it's that it's organic you growth going this concerned? this are to? something probably X

Thomas Falk

part year, as X. at innovation we're of goals rolling, track X. for our innovation on look X-year with how if And track We Yes. tracking and look compensation at year this you at look we're We our yes, our goals. we year

of a innovation supporting lot that. we right are level, we So that the expect market the that were to deliver the going

Some far But it's Argentina Obviously launched. looks little you buy of the X-year the categories track. declined it, doesn't have where to a you're the not dramatically innovation like that underperform. in to behind, off the rolling going or places have consumer money

getting we're say And so, level. hitting. front, base the I'd at we're the We broadly innovation sure volume on the right make got to

Operator

from Ali Dibadj comes with question Bernstein. next Our

Ali Dibadj

about and whether you be I what of of then be your revisit company And about overall structural discussion whether most it there's see talk of whether of Halyard us Europe some been guys Care out in you being often how change, that up for to structural was breaking really little tough. wondering surprised Can think diapers you that'd those Europe to bit to ideas? change a obviously potential Personal in more and getting anymore terms versus Europe, be sorts not. within

these the now of Some different environment used little but we've than be? seems it a topics to revisited,

Thomas Falk

a big the mean in of Well, middle I restructuring. one, we're number

getting and portfolio going to it So continue. are time, not in that plan term the you and It's structural been And year, stewards guys plate flawlessly we've restructuring we've company. but the near as And at we've executing for in And anyway. focusing on our over on time plenty look to every we the handle something that look change price on at the market. got time. we would we of expect good got from know, at the I meantime, the to

Ali Dibadj

those time, you're the in that one is at to portfolio-wise? So looking it, of times time this

Thomas Falk

comment so, rumors, as to we're on I be unusually our around not whether say of so. wouldn't will comment on just answer don't kind and comment the I bush the mean, particularly. Reuters beating story, I'll no because we

Ali Dibadj

to No, a process where of your to is I'm trying and is those your sense make some decisions. getting cadence where just

Thomas Falk

to rigid got It from I that. as say isn't and think we're that mean broadly, at the things periodic we've And with look a I'd portfolio. portfolio. that look we're major happy the fine tune as segments time. pretty That right to don't time It's the we in, doesn't

Ali Dibadj

a you the to. Where following U.S. you your there? be used Okay. lightly. think do which you about showing Just you would you do specifically see you certainly are? up think bit update Are a more separate bit market on you did We e-commerce? guys What helpful. still Can on question, an how in a get on little touched behind? than times e-commerce, about to you a up few share little then you And talk

Thomas Falk

Yes. to we're that behind in where haven't add working across an is and where were there's behind and other we caught important we're I'd I'll up. other There's we see some say yet, ahead. going markets, broadly were you've detail. got business. with markets some And markets, that And e-commerce up. little partners shake a In emerged And early where that to Mike adopter let and some markets catching just strategy, and how it's out. the we're monitoring

share U.S. And catching is e-commerce there's in share. Overall, we'd add say e-commerce. you anything know fair the Mike, so should We're up. share specifically to it were we in the anything, you guys think about what to there's particular, in want I U.S. the else because behind. But on our drive still higher in be else are don't less about it. fair if I'd that's label doing than But say I private case. total

Michael Hsu

experiencing digital opportunity e-commerce pretty is No. -- E-commerce it's and more us and broadly strategy then know we've I been recently. growth more a for big good our still, digital,

Korea, X our e-commerce the where about or Xx big the of size If in categories. brand next you think, I largest markets, think the

ahead in ahead so China. And we're We're there.

a were and behind there. we'd overall care and ground of performance our gaining all bit North we're in baby and the America, little fair we're I in think say across but share the categories, category, area our child fast, improving

our category is, purchases, high if think -- they're and category, think, in it's at broader So look it's -- the the frequency. but you and about thing using it's day, high every very a range annual behave you our I how products consumers Ali, the

terms consumer believe relation we so us with opportunity which relationship. one think a part. and be the that a I we for do different create opportunity of of one lot different And a which brands, of unique, even e-commerce on how is bigger our different But CPG digital in a can a have fits build is to for

strategy that's And so but we're not we're about the growth excited seeing, there. our entire

Thomas Falk

we're broadly, shop, to not any I just that. complicated trying more think, where wants it's and be present mom than to

Operator

question next Grundy comes with Kevin from Jefferies. Our

Kevin Grundy

price the in was on that? on the than on And been clarification a XX% the quarter, less I'll touched X% organically. volume think Quick broader you and past, composition in to then sales. would reaches of think in which the of greater help strategic be I much if the business? Strategically, China part company X% do a bigger to question if What return the for has private-label, of brief. think it's mix opposed board be you Would the company, it margin down a can that and get over than that, differential to And or time? emphasis Are that bigger of us about the that talk that philosophically? even XX% where point you becomes sales? becoming comfortable than about sort so you

Thomas Falk

Yes.

say question it are few I'd start overall the maybe it we private and advantages first areas I'll with where So I with back we private-label come very question. we'll then and And typically first think relationship. guess, the doing our doing people to Mike, in this, label

continue from say that's we know I'd go through to to there don't if to that that that you're the lens Mike, so to it. probably looked we've where say what with we the at to to it do I think you'd come want be extent, -- And what And going wanted I you back standpoint. to.... the decide

Michael Hsu

low price China. in down we're in pricing, China. on or pricing mix Okay, China double-digits Yes, the

mix little our was a I think favorable.

And talk we so does reflect competitive about. the that environment that

Paul, is came came pricing category more bit term than overall what a I right down. we what the digits know the don't mid-single -- think mid-double and down, I it's little

Thomas Falk

And in digits was double femcare total quarter. is strong our the in other mix business China the up

in and hit So that the blunted price some of volume diapers.

Operator

time, At the no we this other in queue. have questioners

Paul Alexander

we'll and thanks right, comment this up All a the morning, from with for wrap questions Tom.

Thomas Falk

of of environment, Kimberly-Clark. best Well, job on And count do and can once the appreciate for challenging us delivering you in again, can dialing a your to environment. results we support challenging we in today. Thanks

Paul Alexander

you. Thank

Operator

this Ladies that gentlemen, presentation. morning's concludes and

your You may lines, you this and morning. phone for disconnect thank us joining

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