Kimberly-Clark (KMB) 22 Apr 202020 Q1 Earnings call transcript

Company Profile

Participants

Paul Alexander	Vice President of Investor Relations
Michael Hsu	Chairman and Chief Executive Officer
Maria Henry	Senior Vice President and Chief Financial Officer
Lauren Lieberman	Barclays Bank PLC
Dara Mohsenian	Morgan Stanley
Nik Modi	RBC Capital Markets
Olivia Tong	Bank of America Merrill Lynch
Andrea Teixeira	JPMorgan Chase & Co.
Jason English	Goldman Sachs Group Inc.
Stephen Powers	Deutsche Bank
Wendy Nicholson	Citigroup Inc.
Kevin Grundy	Jefferies LLC
Steven Strycula	UBS Investment Bank

Call transcript

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Operator

Ladies and gentlemen, thank you for your patience and holding. We now have your presenters in conference. Please be aware that each of your lines is in a listen-only mode. At the conclusion of the presentation, we will open the floor for questions. [Operator Instructions]

pleasure our my presenter, now is to first introduce Mr. It Alexander. Paul ahead, Please go sir.

Paul Alexander

good to Mike everyone. Earnings you, and morning, Thank and CFO. our Welcome and Executive Today, will Maria Henry, Chairman Conference you Kimberly-Clark’s hear our from Hsu, Chief Officer; Call. Quarter First

have of in today's We the our of section a presentation website. materials Investors

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

to Lastly, we'll That results, be about to items certain described further financial has this referring these release. adjusted news GAAP which and reconciliations comparable exclude morning's adjustments information in measures. release

Now call I'll turn the over to Mike.

Michael Hsu

everyone. unprecedented to like during morning, society individuals our challenges and you you, at The uncertainty. and all hope affecting and Paul. time, companies overcome we are crisis it's We an ours staying stakeholders healthy and adapt operating large, COVID-XX to safe. Good today near-term joined severely and is Thank forcing

Kimberly-Clark’s vision. seriously are on world around than for our to and the that to us. depend better life essential now this take consumers with know teams on ever the vision our to a we more are who our ensure products fulfill essentials and counting is our responsibility consumers We provide us to clock working get

thus efforts. the United to and the Foundation we million Red And relief K-C our donations The far, and COVID-XX of programs brands Way. Cross, launched UNICEF, than support provided have including organizations, $X more to

COVID-XX, manage business crisis. need. organizations our of decisive effectively through products action Since to and other our are We millions taken also the of outbreak have donating in this we millions to

right consumers. operating We than our the number been Throughout employees priorities. XXX-year our and health and have more protect this important history, safety now. never of our has three one, key Priority

of extensive where our includes they taken have matter facilities, distance protocols around no course, world, and implementing aggressive sanitization, work. social We employees quarantine, in manufacturing the travel That action and policies, restrictions. our to protect work-from-home

employees appreciation bonuses in also are their recognizing our manufacturing We efforts. with well-deserved of

two, Priority to essential chain manage ensure products our supply our our to supply consumers. number of proactively global

teams dynamic to They multiple each are day supply doing environment. many times chain record chain job in the output. our in global navigate a effectively meeting are great cases, Our largely operational, delivering supply keeping

running and greatly are simplifying assortment flat We assets out product improve to our our availability.

are chain to distribution we In We maximize with rolling. ensure supply deliveries. partners cases, working continuity keep and some the costs suppliers additional incurring raw and material to are

and dynamic We including some have we manufacturing have material chain in challenges disruption, temporary the to near-term. slowdowns and ongoing experienced environment supply The is had shutdowns, impact expect but date. none

are environment. encouraged effectively our with thus to However, the far manage team's we current in ability

strengthen the business prudently to continuing three, Priority near-term manage long-term number volatility, health through the of Kimberly-Clark. while

balanced We will both assess on as and continue to operate top both with risk the perspective opportunity. line a and we bottom

invest to will health commercial us for brands, near-term in our business our of success. and our to products, continue maintain capabilities long-term and We our position the

including appropriate support, be because effective deferred current isn't it brand in promotion in investment activity or some said, That environment. will the temporarily

balance We Maria financial as have to And we even taken discretionary will our our describe, strengthen further additional more also flexibility. manage will overhead our steps and tightly. sheet enhance

delivering balance our sincere rapidly, sheet, of express to the and quarter, through a evolve of team. I results Maria our While business managing proud cash will extremely the from K-C have performing as I flow. well, can teams take you for you solid but to release, we how entire vision. our see are the and our fulfilling continues are strong environment the are am they well. our thanks priorities are want

but questions, outlook and the for Maria. your In turn over discuss it few minutes, I'll a open call for I'll now, then to the

Maria Henry

Mike, good morning, Thanks and everyone.

say more How global incredible I'd for First, we company. to reviewing proud and echo I everyone is comments this results. but are of crisis now, work time our few thing I staying a want most during safe XX,XXX this actions hope at crisis. this during important I've healthy managing employees the been and spend do also never health to their right great is, through that our like course, minutes period. let my this me to thank

up Overall, first and by quarter flow increases strong both teams. our We balance execution as well reflect excellent stock volume from sheet. as cash further results significant consumer generated our strengthened

business our in positions continue in shape. invest we more and to are market good share addition, our In

some results. Let of our me cover the details of

in sales a in two net outbreak. particular XX%, support stock were significant billion. up were up year-on-year. currencies related X% shipments quarter were increased point to occurred all That's to while consumer $X tissue. business COVID-XX including sales up three segments, That First Volumes benefited up consumer geographies X%, all the and stock drag. Organic major

our promotion start adult selling Net in driven also including to in outbreak in the excellent to elevate the were to Eastern personal Huggies our reflecting Product year. we in environment trade quarter. care categories care performance That mix and remained addition, an the the Diapers last America, China in up areas. quarter in X%, Overall, up. and Europe. prior good increases pricing prices premium-tier In X% off the first and broadly included by were North with several drive to taken strategies improved year and broadly, constructive Asia

market eight and were year-on-year of year-on-year, market in Eastern here American Europe care, key in pause eight D&E in our personal In touch or categories share shares of North up first on me in and products, even positions. up sequentially. Let shares in in categories consumer In China, our briefly and even market up categories quarter and even Brazil. or markets, six most or five were

which Shares is place Peru, healthy, although countries in broadly a sequentially. including to Latin market our were down shares was in position stable some good be other are in America, this environment. our Overall, there

financials. to back Turning the

million basis restructuring margin gross expected. XXX a on FORCE quarter of from with our gross Commodities up adjusted benefit points were had programs. increased million, strong quarter profit better we year-on-year. total Adjusted XX.X%, somewhat $XXX than and $XXX was We of savings XX%. a savings cost First

were year-on-year. costs manufacturing Other higher

somewhat at high currencies expected Foreign worse profit in nice spending. was single-digit Between than XXX were a as line percent of rate. sales, spending the a operating including advertising a points reduced we and step up a basis up net

grew $X.XX, share XX%. up up was count. adjusted quarter lower XX%. tax All-in-all, margin XXX and rate, operating share benefited Adjusted bottom and higher operating a The adjusted slightly a profit from income first points also line equity basis XX.X%, were earnings per lower

flow The Cash sheet. million operations earnings year significant in by to including the activity higher strong increase Now driven by cash in soft working related restructuring. restructuring to was Capital $XXX quarter, million. our $XXX was million compared let's a balance the and improved of was year-on-year last turn to spending quarter provided $XXX at capital.

delayed the ahead, of because We in program year. of expect up for the rather XXXX near-term Looking managing capital wrapping of restructuring the end than projects a complexities be into current this charges some or our will will environment. reprioritized and activities of at continue temporarily restructuring now that

be the also previous the towards of expect total end will We estimate. the program charges for our high

allocation, it target until totaled our On consistent will million. first savings our that restructuring in be repurchases although total that sometime approximately XXXX. and expect estimate, previous quarter capital full share with possible is we We dividends $XXX hit won't

credit further are A also environment, and to remains We our already liquidity strong temporary rating of maintain intention prudently uncertainty. managing robust. overall position is balance this our our this period strengthening our and in liquidity sheet and It through

quarter. the We transactions executed two debt in long-term

need a first one, million August. a transaction. that transaction $XXX That reduced March, of our offering. $XXX pre-funded $XXX commercial for our paper. will notes the executed late a we liquidity essentially due million in XX-year This that and overall flexibility enhanced bond The was and million offering XX-year second come bond In near-term

to credit that maintain totaling facilities never revolving We also continue $X.XX drawn two upon. billion we've

We also remainder for program the our repurchase to suspending provide second of quarter are flexibility. temporarily additional least at share the

share will there in another We in environment repurchases has capital monitor will we allocation Longer-term, our July. been change to uncertainty continue and you update the in give on strategies. the no

expected on net We actuals our and the quarter Using the I forward basis. rates point of daily March, on X% year. remained this with at currency volatile be originally first reduce and would and one rates currencies some will by end perspectives approximately the that a would finish sales commodity markets. headwind

two For impact to translation your three benefit account on been the our currency effects impact on a the historical into operating times basis, sales. typically and has our on transaction taking profit both

In same of many affiliate a facing Mexican peso. we that equity Mexico weaker K-C is are, addition, uncertainties our including to much the

will realization is however, headwinds, our near-term much Improving incremental net environment, than will more strategies price realized new normal. price currency in – remains to occur revenue realization of of uncertain one this much incremental a in offset occur the

markets cost influenced oil, and volatile commodity is down front, although can the some the as material the including in impact oil look be On less goes from forward-looking recently, favorable, where oil, much although unclear. remain have changes than that resin usual decline environment. to by move markets certainly promotion Raw started here could trends and

the America $XXX lower North in we January, industry full-year per in the our was ton. $XXX prices use eucalyptus to forecast metric set recent to are half pulp, On which of market for plan range

strong. the fundamentals, sheet, quarter, and financial am I balance execution are all-in-all, all So our business our in health encouraged by and our our

it I'll now to back Mike. hand

Michael Hsu

Thank you, Okay. Maria.

Now perspective. I'll some provide forward-looking

our but focused a were of feel right on the supply on the where now, economy, effects including of very plans that are about potential lack are and address dynamic continuity developing environment. suspending we chain impact scenarios. markets, we robust to ensuring pandemic, wide guidance. our good We global navigating about contingency temporarily range our to and business a Due I stand its of visibility are uncertainty the forward-looking potential we and

through uncertainty our it pandemic the have the more future and into the with will excellent an inherent navigating as guidance. and visibility makes assess the done however, impact that the progresses precision. we for difficult resume unpredictability get Today, pandemic, we any the Now, volatility, creates us of outcomes job teams situation of to

the volatility supply and are In that in some on commodities demand there perspective and share chain, right effects addition, I'll on currency, now.

growth have consumer, is and solid making we essential historically momentum strategic well our on our In in turbulence. of are underlying progress strong Our economic categories performed initiatives. times

marketing. Depend and Huggies our in to Near-term innovation in China, Brazil, Kotex with innovation will and Poise We support North upgrades and Eastern Europe, in continue include North in launches, America, America. brands and

in April. as far the will play second ran quarter thus out and volume are shipments result, in ahead retailers expect first and additional that we that quarter, the seeing in Consumption inventory of see will a we and rebuild

but in reverse will most, up all consumer stock later expect from demand out increase year. not We of the the

that consumer higher likely and consumption periods. more people home in place also to will shelter attention with be personal tissue it's at closer However, paying hygiene, during

closely and of markets, are categories. in and pandemic America how that conditions monitoring our We and the our also could consumers economic evaluating leading including health impact Latin

solid Now K-C the shifting quarter Professional, up by was in to occurred stock in and March. demand that activity first boosted

KCP occurred home, of decline face Given that the the population second with is more persist that's in levels”. at economic conditions likely staying the to quarter, to shock returned will until much and economic “normal starting volume

far retail that April. We high-track and include, end-markets are offices, including lodging, thus manufacturing. softness accounts, are seeing early obviously, likely to signs travel of and Impacted in

to Now with messages. I'd important few conclude like a

very health the are and overall our in the company. the First, confident resilience strength, we of

We K-C strong appreciate our of and are well uncertainty the near-term team. commitment navigating

ability value. our managing in are shareholder in long-term near-term create and prudently We to believe the strongly

And to we'd questions. that our prepared concludes remarks your happy be take and

Operator

and time Barclays. Lieberman floor Instructions] the Lauren you. Our questions. question is open Thank [Operator for gentlemen, your from comes this with at Ladies first

Michael Hsu

Lauren. Hey,

Lauren Lieberman

Hi. morning. Good Thanks.

So One two things. K-C was Professional. first different on

people Number of the is the kind offices of looking shares that versus in market? business, exposure side have to in of of Professional that sort more number then better the understand what much of the thinking K-C And one. in businesses are manufacturing, some lot roughly, Kind a there. safety let's it, definitely are wipers hoping, versus market the hospitality things, of there three, you about your product business. also consumer cleaning exposure the call to how mix Just of versus two,

could helpful about too. Thanks. that, a If talk be you little I think bit it'd very

Michael Hsu

remote in Thanks, point locations. were or Lauren. Yes. out, Maria separate all I'll Paul, and I locations

volume the we this a overall your clunky, little Professional. K-C Lauren, expect over maybe do need regarding near-term But to some question, logistics So and do in we phone. decline may

need becomes However, long-term as I going hygiene a very healthier more and focus serve say important workplaces to important forward. will opportunity there's a on creating

use business. business. However, Overall, largest the to And what majority would which in data of hit can hard that we – the our is I shows we office just early Onvation that our business. business of see more short-term, XX%, offices, the half products. say our through expect our our of than be That's where down part I data about particularly washroom by the is mentioned, are that

Travel and significantly down. lodging,

hotel latest in was traffic the XX% ceded the think could I down so at capacity. saw, data is we're restaurant XXX% occupancy we amazingly, week, globally latest And of we a see.

will be business, we increases will healthier workplaces. commensurate a make our will say impact and a which our better but wipers that there or that employers I safety we does some helping pivot, So in ready provide PPE, we're and do create to job can an there, actually believe business, see

Lauren Lieberman

demand. up website, that wipers of right the then business, we're our think to with doing keep on QCP talks in sort about, safety And now and I best

magnitude those I think full down out try of the what of that you the there? again, order can up products growth If quarter are? businesses, give we estimates I’m makes come like on And what own – looks educational to what you those So just second but tell K-C are together about, with fit people, how perfect us right? just all on our can us you for currently much, bit little to Professional running can trying PPE if in we the that a Because sense, just tools, like. looks of being

Michael Hsu

wiper ask feel starting that's is will And the side. come and we're to part can but Yes. the seeing a maybe for say, performing. right of Paul we And in, increase I may great us now jump business through I that now. that on expand business commensurate the we strong like bigger to

We for any PPE safety of On produce the or gloves directly. business us. small the a side, it is relatively don't masks

We have those co-packed.

are the tight we world situation so supply has. everybody a else as And in in

in tight expect we situation. a time. supply grow in anything there? the so But we're to And add Paul, to over that near-term,

Paul Alexander

Yes. Thanks, Mike.

is on on part safety and eyewear an are these call KCP's little about about scientific to with just and safety XX% XX% So wipers. well. products set level then are a the – are gloves Lauren products products, is insignificant exposure, And and and of product tissue-based everyone Masks is as for that Mike apparel XX% about mentioned. the bit The scientific of primarily business. rough

Lauren Lieberman

Referring D&E mix was up was more personal strategic Okay, a the care and And number. then great. of I market, I And switching hoping longer to which being a really to a term. The just about mix, you to the gears to bit where could elevate talk if bit was think, – sort notable bring little three for that's back categories innovation. coming goal from?

there personal happening of change care. the it that So sort in like on in just seems step a D&E markets was

anything So would you be can that great. offer there

Michael Hsu

that we And first K-C Yes. all, well. remain very Thank I'll Lauren. working our committed say strategy. you, XXXX And of to is strategy

then stock the we up effect felt got and of quarter started beginning the toward a the like start the end we saw occurring March. to As that Maria said, we at very of good off pronounced

excited and programming. So very commercial our innovation we’re about

business and out –the or We opportunity and continue the really to job I think our down the our for a team at to markets of big categories Maybe the and – three COVID-XX as excellent lot China, well. our for categories navigating or an I elevate markets the both was the of delivering and were our growth strong also there's same some down in was us there the expand pockets, about time. is notably, think expand weeks. doing manufacturing country our

trend in the down fully for in strong We we've the category share like product overall, diapers competing is digits through reverting China was in performance. we to growth in to growth I'm tiers saw encouraged mid managing online January, by growth strong effects, double-digit and value, single-digit growth diapers. in with obviously I the and but And the since. up Organic tiers. bit in do femcare about positioned. that. is and quarter a is, the feel we're the feel premium premium back were February, the volume on important well we're Still they the strong been And low-double first but believe ones very thing

up Central well. digits was Eastern Similarly, teens. Europe Brazil and D&E low-double as I was think, high in up,

our markets. very So much was good Lauren, would market. there stock we're also D&E you, seeing behavior tell performance up D&E Notably, across I less in the

saw the China was in Brazil, bit categories. So we tissue. would I in a team consumer none say there think in do our little

Lauren Lieberman

much. so Thanks great. That's

Paul Alexander

Lauren. Thanks,

Michael Hsu

Okay. Thanks, Lauren.

Operator

Thank you.

question with next from comes Dara Our Morgan Mohsenian Stanley.

Michael Hsu

Good morning, Dara.

Dara Mohsenian

Hey you're all well. guys. Good morning. Hope

Maria Henry

Hi, Dara.

Dara Mohsenian

environment little QX. you and looking a the the more just Or repurchases specific unknown just external at through point guidance year a in there. at Mike, you clarity the internally suspend to to still have us share was balance for make guidance? full-year versus guidance? can that's the So pull this Is the more just prior that more sense decision bit is it there the as run doesn't something I concern causing it that at least look of

deload, you Obviously, we consumer understand which the pantry mentioned.

So understand to liquidity sort a what outlook EPS pretty just be position. but also upside seem that given seem you trying obviously portfolio with decision? repurchases, a not in of all of you strong drove QX through, And flows the then to pretty side, defensive to on have that

try So the to just understand behind motivation that.

Michael Hsu

great a the It's question. Yes. Dara, it's definitely former.

that. strong. environment. in think, the to confident obviously, date, performance our feel good very in We ability I about feel current our manage has We been to

maybe to of unknowns to do takes it said the it's what what path on the the repurchase also perspective additional However, with and at of all maybe as – has I what doing share going commensurate and I then with some future let Maria end. – come and virus both back think the maybe outlook a comment and impact remarks, that. I'll there really with And are lot we're I'll But my is be. let I'll the in

Maria Henry

Sure.

we're just business and with you we On plans reading in meaningful. is the the in of and And and rate. talking nobody looking all And our of well knows will try perspective store to uncertainty what sure to what strategy epidemiological X% our really anywhere volatility from be. this some models what and to been rates But at folks and and have, our COVID-XX impacts the happen will guidance, it. for at point to it's north infection knows this really I'm X% environment on studies outside the the as confident kinds has this numbers us range nobody performing that in is get infection XX%.

And last unknown affects post The this of that long our potentially know as the could at virus business, our and and availability, length we availability outlook including We and increased business. And professional recession commodities the think caused that peak point. scenarios about length don't that affect distancing. have for volatile. model will chain, very impacts the by is currency an supply, and then various been our significant the social supply of how rate obviously infection the depth for worker of and

there's wide this the guidance any of reasons. for led So that can't practices. range to the suspending and all to of at same provide our guidance environment scenarios But with buybacks. Those means that on a better It's consistent we'll point. of position of all weighed it year in with monitor when scenarios with forward-looking same and around past that, you certainty us in range stabilizes, potential lack to the a we'll for an the XXXX for factors be confidently that continue expected provide those given the we are here, pull

mentioned year, the We'll in very we're I of could we our now. fact for continue hopefully and remarks. visibility the overall that given to the line outlook of right in more cash are business you uncertainty quarter-by-quarter, heightened managing really As some the that the have that we both prepared P&L is we'll said, in a what buybacks The when say for the liquidity prudently mean flows. our to you with suspension have stats monitor position. in of for the my more strong to level July

on program. it up both of sum least our quarter our and temporary we and are our prudently suspension the the managing the overall saying, period at I'd by guidance in this buyback view So that affects uncertainty on view second company through on

Michael Hsu

tough Yes. is encouraged follow-on, definitely I'll which are we by notwithstanding. environment think start, I our this even

think through uncertainty managing I effectively. we're this

don't our all through be they ever mentioned, would As in like of we different think Maria felt jobs, and actually models assumptions. them arguing and we we're And we over are. through have I epidemiological working XX

to that all outcomes planning to perspective, we tell you And it this the the plans for are will those to now us I models our while from scenario business contingency operations for for makes call purpose, an drive and predict difficult operating using around world. of

great team team, it global the how thinking so about rolling. applying us. And and our we're how take for and we're our thorough operations we've a employees learnings we very terms And very managing COVID-XX consumers got about of of how in crisis care and proactive keep to

Dara Mohsenian

question. Great. And I one ask That's other if helpful. can then

restrictions Just your pull theoretically now. the traffic you look distancing lot mentioned social thoughts year and obviously of a stores consumers half much shopping It's at when promotional – and the promotion. the the promotional aren't environment. back for environment, as curious forward back right price exactly you on in as to But of a there's the

hand, On probably of some lingers. this behavior one the consumer

there's assuming from deload, pantry be hand, other going consumer standpoint. the tougher volume a situation the On manufacturer to is a

is sticky in back we or not? some then also up Or So this of just if the the is that could pricing markets take as And there limit FX environment the as Thanks. look to level anticipate pressure with the the curious for lower look half away promotion that mentioned, of ability of out if emerging perspective year? in be you you your to would consumer markets? on ramp likely pricing emerging you or some to

Michael Hsu

promotions, time, – high innovation categories. I'm build because brands Yes. a grow think reduction we taking call last we That overall. road, huge again, overpromoting a markets prefer supply. is through advertising philosophically, is the mostly of fan not in we are demand I think and Dara, I ahead I said, and I and think which the running category on seeing of the mentioned

And doesn't at promoting to shelves are point. not make so this it sense the when be full

that the back. second expect to be So we pair would the kind I environment are quarter. of us seeing for into some – in

there impact. be Obviously, maybe recessionary significant in a be think think seen will will among I that it I pretty we've and history. largest recent the

consumers in us While think time, that competed necessarily in times, food business, was that promotion, about value to become of of categories. was I'm And I to And not value and the the years I was in saw more the explaining interested the that those promoted environment. that certain the the aggressively drives strategy the it during best brands. a more about but not products business our I wasn't managing recession. consumers here we the at value at

not their So we're happy player for a we're I strategy. though even cover the to niche We're well premiumization We and and and we're premium. not most our positioned think are recession. where that is that. consumers consumers serve and meet want to we needs in a niche We're going core do do tiers we player, premium

Dara Mohsenian

helpful. Any strategies in there perspective? detail from emerging more color That's emerging the a markets? any Great. on markets And pricing on

Michael Hsu

Yes.

some recover already or cases some and we some FX we offset will in think priced the to issues. I have of price

price the given been have short-term on Although markets are place Latin with what's in America, in into general, But like, taking be we will in going the some price done seeing pandemic. we in some already that. controls in markets we and notably more put

Dara Mohsenian

Okay. Thanks guys.

Michael Hsu

you. Thank

Operator

you. Thank

question comes Nik with Capital RBC Markets. next Our from Modi

Nik Modi

Good morning, Thanks. everyone. Yes.

Michael Hsu

Good morning, Nik.

Nik Modi

engines backdrop taking Kimberly-Clark. over development I'll just I’m Melucci maybe Mike, you how the possibly this current M&A. feature for against background Jeff ask in the business responsibility the the lead his growth has curious And given rethink situation of to of made team

different So showing I accelerated growth. of are their a now right in obviously are there mean, any colors terms of categories that thoughts? lot

with that over of time. would portfolio Some probably fit well your

You sheet. have a balance good

likely Asset prices cheaper. get are to

around helpful. would be context any that So

Michael Hsu

our We K-C our to love categories. committed we're Nik, XXXX strategy. Yes.

there's in think of over the lot in expand and our we our our markets there, and I potential and terms how elevate of how a markets categories markets both we existing also develop time. premiumize

So the excited and for about I it's strategy working. remain reasons, very we those think

I maybe how situation to look with other opportunities the for opportunity that, with to if pandemic, more we the we're does it at accelerate those. think create us think or current about going

that active you radar now, right tell can't Jeff experienced. very I is but there's on anything

Maria to or always we're disciplined. quarter into strengthen think right always Certainly, in the focus I for look the us excited those at anything add M&A. a it geography had a the and that existing to in position is technology it looking continue geography, categories, But value. obviously, Maria, we're about actively a be there? a every or either very we and would opportunities, And geography very that we'll very Jeff very says, experienced. our be a our fit at brought if or or well would As brand product, within a

Maria Henry

Well No. Yes. said.

Nik Modi

a for staying are your for do we rate home but buying on of clearly, loading but it they're March. know maybe address which should pantry think Because going more, this know I people lot you're on then or not me at at People was I it? in about we is using the one it. you saw sense, they’re up obviously deloading? Maria, want how it if I you want – you what to mean, it's to products. guidance, And Mike hard imagine giving makes

now. actually back months can and how buying cycle think from we consumers just – how the months maybe of under coming I'm we two thinking about or think about So about purchasing kind should three normal that? from now

think that? about do you how guys So

Michael Hsu

maybe right. will start I'll and Maria. a Yes. There de-stock, be

went definitely pantry we two my And a running will bit retail. there's will maybe we their with looking It one, I carry into effect. consumption far second or inventory be and will stocking. think ahead in remarks, I of – to mentioned will I consumer that's at systems. more a was own, customers and which inventory think there be rebuild this in to want consumers our So homes is on effects, shipments, to rebuild so still general, so looking in also their not inventory

while So de-stocking, be will think, be, it significant lumpy. will there I I think

reason bought lumpy what's stocking don't is evenly households very of the every it I fraction easy other it. it predict that would the have if And to I XX% is it's happened think But across a think be will why occurred consumers. be Meaning, more. household our

will de-stocking. while product, think, be be there. little the in sifting get it's through still we be more up build some the a more we're others And and reason, will going inventory households and or hands working looking call, data so to And will continue, to their for their I on challenging that

Nik Modi

Thanks very much. Great.

Operator

Thank you.

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

Olivia Tong

Great. Thanks. Good morning.

couple of these questions around huge a swings demand. So navigating in

you yet markets, not to just covering emerging You that. much lot room didn't up obviously and a mentioned do frankly there's of stock in see

you So now? Are more what Are they in store? shifts are getting virus as happened the trying to you what planning changes there? Like for? more have run capacity right

are And you And facilities also reverse chain changes productive for much making yourself? repurposing while doing not then what to the there? secondly, can and drive right just do to overextending overarchingly you are professional, Thank how then you. the along production what you those supply now, keep

Michael Hsu

the outages in well but on think, of my output. our very in record executing COVID-XX. general, driving the achieving and remarks a that you our really sporadic had a now I Yes. chain And mentioned utilization throughput. cases, in I Olivia, had tell our on lot disciplined through is we're I'll mentioned, managing a focus very approach increasing supply to right they've I We've few is and that

capacity more SKUs just is we of that's ever than given done locations. and We're out significantly really large getting we're theoretical pared in SKUs the have us output we've a more and back the producing lot of volume What number producing. we are

the And say, so the right I will now up progress I see that and is us it's second second and quarter focus working you'll demand quarter. in catch made the to and during think,

other the probably missed part around I was Sorry, KCP.

Olivia Tong

Correct.

Michael Hsu

Yes.

was demand with we well. also in finished we saw the running flat that As quarter KCP first the as out KCP,

and be will demand shift, and to an I to some as now. we're us through on relative opportunity into kind shift lower also the demand side, the consumer we in point at that looking think, there for and of consumer given working that mentioned increased some capacity professional

Olivia Tong

That's and lot dramatically. And forward, And two business Advertising accelerate there. areas, assume to FORCE the leverage sales surge savings was profit of and just Thanks. margins and then go related that I savings realization actually just on obviously we a advertising. helpful. pretty as the from

savings So actions Does as you it taking incremental pushing you're have because like expectations here there sales projects how that out. about of normalized? changed? some of think the as it in they're Or go-forward, are sounds those come from your

on view forward. going your just opportunity savings So

COVID, advertising, raised And comes then QX. and QX assume that's I on mentioned you that in of in big well. as advertising pre- you a increase off

your you this advertising view if update against just on us on backdrop? could So

Michael Hsu

is business. and little a about to marketing say in the I'll on or Maria ask would Maybe catch second our that's Yes. and maybe But I generating What going of handle to a to the the comment defer. advertising demand the, make a continue bit have the parts second until the But just quarter fulfilling going little headline, talk on demand is maybe in invest we're bit grow quarter and up the capability existing one, the the we more our to the to savings. better there. Olivia to out brands clearly we're

innovation, of have plans the about really So quality our excited year. quality this the marketing, good we the feel that we're about of we the

sense shelf. But not where full stock make as over it I category mentioned, promote doesn't available the to a the there's on

ROI focus to going we're doesn't reason, return. drive that it for big so because a And on

We It's but want and shift, to to pair now. continue we watch back, invest brands. it in the to a tough Maria? will right it's temporary

Maria Henry

on good there. a had quarter and I'll expectations in Great. was levers FORCE. side our program. start with with line we of FORCE, And We It that savings across the cost savings on drove all

reasons the we've our about One savings. lower extensively material talked of price throughout the delivery Remember were in on back they for is. first quarter those last Those line than with things what negotiated XXXX, historically noticeable normal year. were is in are in

quarter quarter at first savings compares last the light million of So quarter in $XXX of on first good that a savings year. to FORCE FORCE also

with As in When have good were should outcome in look you chain full-year FORCE a I our some forward, cost our through North working recall, issues we savings. as supply America. we

of of focus is times supply is less our priority that supply and now to teams complexities demand all to the and Clearly the the a where producing Although orders. it given that market up lever be on fulfill in product end than we working actually chain consumer in our right normal through. would of chain is that getting customer out

have plays to that FORCE for year? We will of all for out see. how the so And

we the the there, implementation do of good to of the some which terms of is directly to restructuring continue on activity overall. the program progress restructuring We COVID-XX related delays situation. expect the did of make on In program, impacts the

travel people can't know, the If places to as we that to think we to really need get that the so all there restrictions about are get them. get that, need we you we

engineering work As both with. you that with parties can in-house third experienced very imagine, teams we and we've got

the there those absolutely out, And are in supply chain surge cannot for minute we're products. the ago, is, therefore, experiencing flat teams people right and And factor other demand meet travel, project mentioned trying now delays. our a I to as our

of all delays the so restructuring. on that’s And leading to

We unknown. away those are into we swing they'll back delays full is can our supply but in have on go away, hard when working chain get when go currently to projects and those

So we I restructuring at XXXX, will for savings point, are. where this how out tell the can't you but that's play

Olivia Tong

you. Thank

Michael Hsu

Thanks, Olivia.

Operator

you. Thank

with JPMorgan. comes next from question Our Teixeira Andrea

Andrea Teixeira

Thank hope well. you. is all And

the Western not mentioned stock shipments. consumption elsewhere. but in much and the the Brazil you on follow-up against some Europe tissue, So of up Internationally,

developed in growth And So are to South catching I'm stockpiling assuming of Korea most you and from up that how on the was impact. grow this you distancing. much it know, you they the how ecommerce, through much in they're at quarter And ecommerce, because you globally, this for perhaps, did there not have just And a example, diapers, point? very for up and in places? in get fulfilled consumption because much early represents were were you April, seen going likely as there's they stock with social because

couple Maria, and expand coming anticipated to the to find clarifications, And of ex-commodities shift we will likely even first just the continue expect gross mix are do in diaper. better than you in tissue to quarter, particular, margin a from as

to going margin. that's assuming a bit be of a your I'm benefits So for

the the question Thank – And consumer KCP the this advantage as at some the that of great into likely much is production paper initiative tissue and other the of also some simplification tissue, you. of of point. you parts your pivot which in sorry, increasing competitive capacity SKUs? of this production three with is a How obviously

Michael Hsu

– through. start I’ll I'll Maybe take Yes.

I largely up consumption phenomenon. yes developed sorry, think a effect D&E effect, – the largely a market was the stock Andrea –

In in So business some business. think probed improved extent. North was I America, our although saw in definitely small Yes, that personal to Western our Korea you're Europe, growth Australia, excited I would less so New share see there and to – diaper some effect. We Korea say performance Zealand and care, we from diaper on. are

did the general, Korea in it childcare, even solid in consumer So remain category including more think North in though bit Zealand UK February New Australia, stock our America, tissue trends stock and see New – yes, then the – in I diaper and in up we earlier, in Brazil little well. put impact very growth. Zealand. business up up behavior across on down in as Western occurred infant Europe, Korea, some and a significant Korea But And

wanting I he With of consumer accelerated I the in has aggressively dramatically number. out to shipments go and regard all-up don't the the shifted all-up because behavior tell to And have been ecommerce, I'll quarter. stores. will number. to news, reading if you, not the some you've ecommerce, ask degree people Paul pretty to demand has an if

the number. have And you feeling I – we're our if that know, And in so Paul, have business. don't overall I don't

Paul Alexander

Yes.

for Andrea. up very sales. markets. a our of the percentage It double-digit would three low Globally, ecommerce couple was a in things So biggest double-digits be strong you,

would and be, China, U.S. South that So the Korea

of We I were to yet a we're it can actually meaningfully. don't just markets All in accelerated where year, the have given in those compared early global total still say that they accelerated confidently last year. but total

Maria Henry

And gross ahead and I'll comment go on margin.

margin basis XXX points were extent that and basis drivers volume our the the some margins talked currencies. upside, the to year-on-year, included savings was sequentially quarter. we had about, offset deflation the commodity up and around they in were gross gross in the Our price by cost points the we at first quarter. That that realization continued And XXX

in currencies coming updated we comments. provided for prepared of on our But a impacts help And if than currency And the us typical year pricing revenue a negative point, the environment. trending commodities into look I lever forward, net offset the worse discussed. price also and lever in are expected we we eucalyptus better key realized as trending on are to or is the the outlook

the And However, in uncertainty our the ability the priced to near-term consumer. more is the around get is normal. than uncertain of economic that health

of around us price countries. particular, those If some a currency risk. are prices societal clear raise price and it's products for think our that's uneasiness Latin internationally, markets general, you times. America increasing developed in about of there more during to finally, our And and lot and environment, political a difficult these in taking on In challenges in this potential from came

gross year, three the play our major how to effects out for have we'll So factors will those of margin the that see. affect

Andrea Teixeira

super is helpful. That

capacity for will thinking on going be the from increase? material should Is tissue by issue your follow-up besides SKU Or we of that increase that XX%? your we the your to expect should rationalization, on Just How something forward? capacity KCP. that throughput

Michael Hsu

Maybe in. Yes. Paul I'll jump to ask

I think pencil I to Paul, that that. But it. know next we don't a if the through number I some thought we're can I working know definitely still don't mean, shift capacity. you opportunity have about. to I

Paul Alexander

two making segments. do decision It's add. will just if be would simple I as the this, as not mean, we it. that and different go do between I lot technologies There's business a then Yes. tissue involved including

look now no it, – we'll right for go after that quarter to we're though. taking certainly think an I at a there's going So on message is, impact and had the the It if it. first we're opportunity,

Andrea Teixeira

it pass on. Thank you. I'll

Michael Hsu

Thank Okay. Andrea. you,

Operator

Thank you.

question next Jason Our comes with Sachs. from Goldman English

Jason English

questions. Excellent. Thank for everyone. morning, and spotting you A good of in, me couple quick

is in business was do right to question have guess quarter? of was my strength to be face the why it flat we going that I well running issues out. now? the to it driving forward. the was What and doing Michael, some you about KCP so first you First, mentioned inventory the headwinds cognizant expect You mentioned

Michael Hsu

did end point, at the toward user, and a late through pull a to as some distributors products. we exactly not was lot sure well. on tissue. And this On of think lot in one, Yes. there the a anything on it through that see I of we up quarter, as went it got went toward stock washroom particularly we're But effect about to

So the again, expect to into quarter. diminish obviously strong we move second we that as demand,

Jason English

tissue though. idea really I grow. many care the spike some totally the this yet stock the how to personal reverse, a of understand happen statistic? on sense in-home typically if out-of-home I'm it's as versus of not usage likely you me being Can where up particularly and on consumer of occasions to get demand side convinced occasions that you know give then And usage don't Okay. easy

Michael Hsu

and have occasions they but consumers them more my with interact would for top there's don't to thinking, our then the going many be home which I look, I is, of with agree so brands of have. traditionally – Well, to your that are I head, definitely more, off where line

in the tissue. tends other side, the is shift big sense oranges towels. is, big bath to the horse products to tend to The an horse be – of it's the And the thing be consumer of kind and KCP consumers KCP, shift on apples

And in good consumer need the we're is I think so the position us side to we Obviously, there we meet a tissue here. a where ready bath going to like, be shift they consumers and effect. that have on

Jason English

up industry. up apples real would mean, actual it's consumption get that it's seeing XX%, be tissue to that we make but aren't and demand, and I could just should Totally, for I And arguably imagine for at consumer the not you, be arguments at least piling. hard oranges not XX%. home stock No. that you

And a somewhat related question. different, but

you're some faster you I competitors mentioned washroom even harder evidence industrial are and a divert get some glove to any it tethered to I imagine the long know, consumer. don't to do You the of of are deeply there much in and refit to side other coming? trying Are who seeing your side of KCP two, some that more consumer six lot towards the side, capacity what shift that. a working a of supply and that ground of takes to stuff. however coming out, is bit risk So months that of we just three,

Michael Hsu

seen haven't thus evidence any Again, of far. that I

our some make our think that short-term I Scott or expect. people the Scott in which But same is situation make or way products been in shifting X,XXX right consumers a is we're little certainly every the quality the when and I think general, sell given maybe shift supply has the in bit looking use. products for market, there it'll would more the have to the and what consumer to flexibility in Cottonelle we different that to Paul marketplace capacity products talking about, and going – was

the of certainly going that of any something suppliers, haven't to thought from I keep kind other that's evidence so as we're but shift seen we're watching. far doing. And

Jason English

pass it Thank good. I'll on. Very Okay. you.

Michael Hsu

Jason. you, Thank

Operator

you. Thank

from with Our next question comes Steve the Deutsche Bank. Powers

Stephen Powers

my a there? here seem just Can some around encompass critical maybe guess or prioritizing deferred that you're you're few little I environment Hey that on this progress you the can that to versus ago. is more you Hope just make be Are a question you how less strategy just Mike, urgency in on give Thanks. think take on even versus color need that investments months others XXXX, well. today or doing K-C bit strategy. there still capabilities

Michael Hsu

Yes.

management. on products for all a and in-market them we're digital, or kind company. just foundational special I'll think a of mean, are capabilities consumer and execution big moving kind all of now, and they're execution the one. Marketing forward sales you I critical I using with through good right Innovation, revenue right. for emphasis walk the

and strong through those, Innovation, effects traction North seeing our us if all China, launches. think product have click America they so And important for in I Eastern Central Europe, you on we're this year. all

investment. we competing, it's digital and lion's those. Obviously, share our want is so And to we the continue kind media really of of are how

we that and And so got better continuously. get at to

think strong revenue – promotion you it very in supply I think to the lot glad when and locally, down then matters to though be and capability help create tight there. environment think and and in we lastly, us does what I seeing capability given the that’s we that I And a recessionary execution market to if that execution impacts what important or will this still in effective think we're do anticipate might an manage the more coordination pricing in might we're way. very an some situation, management, that a we are that about environment come pressure that through had especially and

Maria Henry

would just and back add in have that, the first our with we you discussed out K-C strong that as the on we there Yes. in of quarter I expected with gate you XXXX January. capability you We also the areas that come the came lines that as strategies gate of on advertising out being right quarter and through around and saw Mike up in the meaningfully the just in the the described. numbers between investment executed spending

of trade this like things already see to how building be in you pause need spend We've again, where in talked just there. people on travel and quarter, especially of a the that environment. then those on second terms get with here can't the in work the can place, in activities, they programs capability advertising the to spend imagine, planning do And as some the in to spend restrictions we about of some take the we’re near-term, will as

completely in gate the growth bit them and talked will can fully soon remain quarter we of restrictions turn strong back our of the that. full here first about do in as speed, But with line committed a those around strategy out near-term. activities certainly a the given on So in we in XXXX, to we the what as we K-C pause

Stephen Powers

all I expected question, sounds Because it, givebacks pressures, past. – second saying and price in bit deflation mix you're be developed could, net on price and the it in markets. and recessionary you've I thinking Okay. we've promotion net I little if about input just guess trade what in of That's great. the hone how versus about about cycle really cost it And this and through or because sounds of trajectory like want we talked realization a it like see might to you're experienced more clear down

I get through pricing offset based to you're should than us you, on sounds have we put that I expected in undoubtedly past demand, to precedent. to FX, don't while to you see mouth. we heard the… D&E markets that once just words want and less take will back just that because to in the sought your might preparing I Just want I like surge is might've want after it and run be by what

Michael Hsu

Yes.

I environment, that still One, I probably the there. our demand in tell am environment broadly And think current remains pricing promotion we have constructive. given just would right you the environment. back a significantly now I different the in dialed activity place

advertising and through growth be overall category to I the think, drive in innovation the happening and what's and marketplace grow will stay to in going to my we is categories. to close general, preference we're continue But competitive. to

promotion to provide And both capability driven. go. to brands But to I our that, or that in it that or I where recessionary offer right it's I we lot And will a the a think consumers. say relating brands context. it's the price positioned I think the want consumers. of I But we're have be very effective to do not in marketing with necessarily when value think be cases not to value communication And Steve, well the

Stephen Powers

Okay.

leaving So on what you're see one way in table leaning just message. the and other, we'll it not for options this all you're moment, happens. the being ready That's the or

Michael Hsu

and and the road, Yes. to lead, grow were prefer I And high rather innovation I'd through I again, brands. in if

Stephen Powers

That's clear. Okay. Thanks so much.

Michael Hsu

Okay. Thank you.

Operator

Thank you.

question Citigroup. next with comes Wendy Our from Nicholson

Wendy Nicholson

well environment capitalized thinking also GP, example. Procter private label less Hi. and or the the with side company. you to and to competitors on of are not imagine My some strategically first than do professional would I question but retailers, who for the competitive has that only the supply for

wondering good to sort that, think again, will? new this if back growth How some maybe as think This of opportunity contracts professional label about you I'm either strategic do sort be question. you goes think of take on about opportunities to expand side. So could competitors, business, a of a your I of for as you the that sign private to outsized advantage your weaker

Michael Hsu

Well, Wendy, maybe change in environment been think Yes. competitive environment. the overall think theme also I there's certainly and some is – I the significant general the

want when for really us about to to I you and And certainly so think fill Professional, provide think we I is compete healthier is workplaces K-C are. do to opportunity big where what for better I the talk pivot for to needs is And a mentioned us more us opportunity very effectively. the opportunity to

to I have think good there. starting conversations we are very

of our healthier business I much for closed despite air because more success, dryers. faster safer business, than locations now, towel see think but being they're to our towel success or and lot we're in starting in a jet

the of work those through types areas. And making other are we so and we'll moves,

obviously like stronger. we're feel also We

better sheet, We stronger have a balance capitalized.

recognize customers the who are And so value doing there some of that.

we as that want so opportunity And well. to leverage

Wendy Nicholson

past be on increasing? you've economic think branded wrong, depressed heading at kind something to label of of side? this as volumes longer perspective, private that we if want you is the that, point. are focused me actually economic do it an kind interested about mean would in you from I correct X% I'm your that if Is the I in you what a more think Or you of seen keep something, And it's environment, think, into but

Michael Hsu

Yes.

and our focused piece the certainly given on got that of – And right demand on we're really with the with thus we what branded side we all I been business. the focused our right think limitations filling more Wendy, near-term, certainly, now. small now, far relatively all capacity it's got in a brand we're

Wendy Nicholson

question just on Got then the hygiene it. in U.S. feminine And last

all across to whole But better where that the is categories, the both hygiene are recognize area going the outlet Is data, many and market the – had – least bit at on different tell data but little Your again, might Nielsen not one business? in so that I feminine pad story. you Do whatever, shares it not what's be that's innovation? that but if on reflection, the side, is continue be might think What's in you a it share. or Is area an not and accurate pricing? that so much so tampon of it we branding? one may lose

Michael Hsu

volume, was point about high-single down we’re America in in up but North Yes. femcare on about digits a Wendy, share. on

I on. you're So what think on you're right pushing

I We for have global brand great our us Can a global and working idea, positioning with that's think been brand She globally.

do bring to execution have to in think team I our improve is North that the innovations the America right that working market. also we and

And so of North job brand do America and the we but got it. a executing to better that love positioning, all the we teams over

Wendy Nicholson

much. so Thanks it. Got

Michael Hsu

Thank you.

Operator

you. Thank

Our comes Kevin with from question Grundy Jefferies. next

Kevin Grundy

you Good Thanks. everyone. staying morning, families healthy. And questions. and and your I hope are safe Two unrelated

the and rates impact on business First recession in one, the diaper the Mike the from on U.S. birth

financial heading into saw their the we and they saw improve rates then into had dip birth we crisis, back, look and we decline. continued rates to begun global the when So birth recession

if was the and what over recession on here, out be I that part three over next may the category birth thoughts So rates how on your the updated years. your implications the but the to XX your curious from five would view process looking next potential of inform planning not for months, just maybe

say, little shift accelerated of on has there's the this given unrelated recession. adoption I there then the that would only ecommerce, nature And debate

private positioning versus maybe Thank views biggest retail, helpful share your some your versus in for that. comments your So it'd ecommerce be for it categories on the me. on then traditional updated in and to I to relative margins you traditional And retail, positions get market do think all that'll label? company's

Michael Hsu

think diapers, see rate did to improvement in over North in the regard we With the some so. Yes. birth America or past I year

recognize year. just lag Now we Kevin, a

was the category, and year, down I really down it year of think through mid-single I quite half this technically was for and of think about back expectation digits most had our first couple up point. digits. months previous been mid-single the year, the about, it – recent X-ish percent. the know, I And the So down be maybe I years, to don't for it few would a through last almost And I rebounding well, or think say

stock a So latest the the in that I nice think was really got kind our effect of globally. the we to the Obviously, it full affected up very about diaper rebound up excited and are business in quarter. it But category. double-digits quarter for

products, America, got products strong And a our in and we've premium & great we've in business. got great Dry. improvement significant product Snug Huggies And in across coming North and premium particular got momentum we've

think and wouldn't I pandemic diapers. think, point, And to expect Jason's so, grow consumption I I again, and the category

stock in there's seeing But up rate. an expect think, do improvements improvement birth some or we I to are pronounced see the So effect.

there On as now, situation, the to making that right think, and the given double-digit customers. out in out again, customers products we the ecommerce, getting our The allocating is mentioned, Paul we to the and are we get right that now had I sure very very, products supply supply growth quarter. strong right focus

focus the there getting about is up and And increasing so out near-term maybe capacity. supply our the and really, in ramped

question. third the So – I then and forgot

Kevin Grundy

was not It load on. was ecommerce I related, because going what's much Mike. on pantry now there's so a all going realize It

relative as online margins your looks your traditional even very sort retail share label the and retail the sell-through traditional of It's retail. Selling course, online So market good really, to is private and phenomenal. it's relative relative well. of traditional to positioning it, for to

Michael Hsu

down to Well, Yes. break our three I'll markets. that principal

diaper obviously So on and ecommerce, position business in in leader markets And is strong the very and the well In Korea, of are biggest we our over Korea. XX% U.S., obviously, China, away ecommerce ecommerce. share far we’re there. Similarly ecommerce businesses and in our a the of have almost in XX% China market Korea.

progress I we're U.S., the lighter say, diapers, in there. and however, overall, bit although, fair little would categories on on tissue a consumer we're then share, a And we've but probably across our been ahead making about little

In online fact, point a I think on diaper year we our shares. share had last increase multiple

So we're progress. making

all in we price customers, way the America, a similar our generally margins, program. particularly to we price regard out they're on With North

same. tend some at customer. they because a margins advertising because about going customer reflect be differences the to So level be There to investment we to the highest the do are are back

or slightly And we're margins will media lower, what appear may doing, be really so with media differences Amazon Walmart say, things. it but and those there maybe or kinds some of let's that reflects the that

Kevin Grundy

Thank fine. very you you very thank Yes, much. Mike, much. that's

Michael Hsu

Kevin. Thanks

Operator

you. Thank

with from Our next question Strycula UBS. comes Steve

Steven Strycula

Hi, good morning.

a BRIC Particularly, focus more piece want really of understand the from rather a to So piece. and mix the in to countries to COVID from just back situation price recessionary volume situation. I go the on than wanted

apart, piece could are near-term BRIC countries ability open, of to aren't being your products the first. demand those think some we in the and those you retail to you if terms about stores seeing What love two maybe able understand pieces So markets, would secure of access because of how to do consumers’ that? in

business like And period countries the America, India, think piece, from these cannot and then follow-up. then a just you And what recessionary Latin China, recessionary XXXX, volumetrically, we do XXXX? know based of in that on the through even a that on have some grow I

Michael Hsu

say, business a feels And team if there. I have, I big of would feel about I the and Yes. I together. to have we would figuratively and our them the I where has But regard resumed, sold to market have just levels. because good China, levels, to online, about With both is the for our regard to think business sales And performing been consumer through BRIC, portion largely headed don't how normal And think think we very say to – since that very want is back the not tend that. closer with online pieces us maybe different talk literally. I'll we bullish normal

demand a of tell still starting is more it's little the it have the up but of phenomenon because Brazil recessionary effect an normal impact. a up was continued elevated. strong versus to little pandemic And do lag a the early tissue. definitely see tough that's we seeing behavior. been Brazil bit experiencing of of see but for now. the why what There's a what is a stock while then I some impact was to through think in was And pull there, I there. effect, it are in impact recent affecting we've the to it the did It's – we stock think

personal And see seeing And we’ve bit. then occur been that soften impacts. last a demand did category quarters the on economic the little again, the just over on in side, care based the several we

we're big But more with Let's double-digit been see. making growth now, BRIC operational recent that's have can now that COVID-XX emphasis focus. right double-digit strong sure growth. the we continue to a – and supply, strong and India, is maintain

as of marketplace read down going business right but you or concerned were while a on fully, that, it's getting we’re permits know and and think the period as the for operate now to essential the may online time, an to I we about in were COVID, very the consumers. we're We repercussions back effect the have

the staying there. And experienced close said, double-digit in to strong quarter so we that. growth we're That

in Europe perform to teens us home. Russia markets Ukraine, Eastern work share Uzbekistan performing Central and And overall up for right multiple we've and out, Ukraine share The in both. diapers quarter, and or was Russia share then It in went overall. achieved leadership. strongly. are femcare very and last was great. from we high Russia growth I It before on in continues points turns Strong

this at that yet a about that very about a in and clear share think we're think marks. on point, watching that's don't Kazakhstan, a I through, closely. but I pandemic its way maybe because view the share very the feel we we're effect still have XX I XX good know I nearly working

Steven Strycula

it And one I'll was That I really pass and Mike. have along. quick follow-up Thanks helpful.

reset? slate of in Did the been help slate or really us onto the about earmarked really understand innovation how the certain maybe excited retail Just you. innovation make for pandemic that to did the On March for that does get have April? back-to-school those Thank may into this put products and slotted shelves? are year, you it pieces Or pipeline? what impact

Michael Hsu

year got we've in I a America lot diapers of as Snug mean, both with & Dry. innovation I North and Yes. this coming mentioned, on

marketplace team Brazil that are products diapers. – innovation especially have premium we're best month launching the Our got very about. excited significant is like feel a launching we significant and to the the well, a America fantastic. in on diaper Latin in upgrade already we this we're coming China, We've that –

to diapers, So back that's come I'll it.

marketing pad have our business. the world plans and and in we improvements great Femcare, around care adult also

good of lot a mentioned have we So I that earlier. innovation

in a care, into general, in per don't especially plan get terms I mentioned, in phasing is Latin delayed, what couple exceptions, which install equipment. to it with America the locations engineers new is, because the think internationally to ability in we've of personal going have Maria we as

in germ want the right. safety going mills, of we different – slated launching don't And delaying into we're reasons don't we that a for going We launch access the Brazil. mill, we We're had just prioritizing going people who innovation launching were in we’re and we employees, creating into for markets. so the executional a environment, to and have until some also other that – mill because of to that not our are the traditionally

but just not restrictions it's for it's So restrictions, for travel also. safety

And consciously some those making trade-offs. of we're so

delay so And net-net, for will some executional we yes, more but innovations, reasons. it's

Steven Strycula

Thank Understood. you.

Michael Hsu

you. Thank

Operator

you. Thank

with comes question Barclays. next Lieberman Our from Lauren

Lauren Lieberman

you set. so all covered. It I'm was much. Thank

Michael Hsu

Lauren. Thanks,

Paul Alexander

Lauren. Thanks,

Operator

time, this Thank you. questions the At queue. we no other have in

Paul Alexander

with we'll today, Mike. comment All right. Well, we appreciate up everyone's a wrap time from and and questions

Michael Hsu

to we to encouraged call. manage our about by while year really all and We're optimistic near-term conditions. very we're our challenging the challenge, for start but realistic potential. long-term ability our through you Thank these they're joining our solid And challenging, remain obviously our in

you thank today. us joining So for

Paul Alexander

you very much. Thank

Operator

Thank gentlemen, presentation. concludes you. that Ladies today's and

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

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