Kimberly-Clark (KMB) 22 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Christopher Jakubik	executive
Michael Hsu	executive
Lauren Lieberman	analyst
Nelson Urdaneta	executive
Nik Modi	analyst
Anna Lizzul	analyst
Bonnie Herzog	analyst
Christopher Carey	analyst
Kevin Grundy	analyst
Javier Escalante Manzo	analyst

Call transcript

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Operator

Greetings. Welcome to the Kimberly-Clark's Third Quarter 2024 Question-and-Answer Session. I will now turn the conference over to your host, Chris Jakubik, Vice President, Investor Relations.

You may begin.

Christopher Jakubik

Thank you, and hello, everyone. Head Investor Jakubik, Clark. at Chris is of Relations Global Kimberly This welcome for Update. session our Third And Q&A Business our to Quarter XXXX

During discussed we the will are our to filings risks results we with forward-looking and due earnings remarks that these release uncertainties, statements our are may make differ based our things SEC. see some how and today. in Actual on today, and

financial replacement We not measures and discuss will non-GAAP today. should together a investor.kimberlyclark.com. some financial the GAAP read And be non-GAAP be within to considered results. non-GAAP the and posted you for supplemental release find These should at measures GAAP reconciliations also with earnings materials our can

CEO, a Mike opening comments. Before quick Hsu, it begin, we going and to few I'm hand Chairman to our

Michael Hsu

everyone. to we and Powering long-term advancing above strides I to Chris, made team confidence executing execution. in let on our growth and our by category in you, and and To acceleration good our driven our our this. you deliver enhanced has bolstering want achieve and share making categories. driving growing be know, We're markets, Thank global XXXX. We're must strategy to progress leaders, across great algorithm our Care our our steady strategy, morning, categories in innovation commercial lead growth consumption

our Our productivity growth line bottom aspiration. delivering our is while fueling our initiatives investments support in innovation growth to

to And no faster thrive new Kimberly-Clark achieved complex on transformation organizational We've with better, We're become on X, disruptions. environment. to competitive a global increasingly organization. an and rapidly notably, our we key milestones and completed structure and October in track stronger successfully transforming our is

improve, Asia term. pockets on the professional headwinds that lower channels are and some exiting discrete demand -- label retail and that levels demand private as are we're we deceleration North and near creating America. include of growth pressures businesses in However, these reductions in service weaker-than-anticipated American inventory there in the are some in Latin And that

actions a that we taking market enhance part the we're stakeholders. and all enterprise accelerate of our to strategy can as consumer navigate our retail dynamic the the environment, of transformation for us of Kimberly-Clark that growth across And and so lead are positioning value investments

to So that, for up like I'd open questions. it with

Operator

[Operator for is Barclays. Lauren Instructions] Lieberman from Your first question today with

Lauren Lieberman

wanted I because some retail So quarter about of had expectation, the some I just source a touch you rebuild been, lapping were to But first year. inventory on volatility. before last has you really guess, this talked

about stand of talk standpoint So was and you today. shipments think where service of a been volatility? such there going between shelf a you anything source if curious And levels disconnect again, could the also, how it, has from because, is space about consumption kind on

Michael Hsu

distribution think, Thanks, innovation good we're pipeline feel our to continue I from I robust. that Yes. a we about will mean, and no And count, that very bringing have support we remains SKU Lauren. shelving. Yes, that. disconnect growth, a great in

challenges the to I reflect we little Lauren, reflect had may do retail inventory you a -- supply point they year. say reductions, would us localized the be So last as out, and

Just that year to months we Personal impacted in Care supplier to most -- our down a had America. brands was just you, packaging of a give that little couple last for remind of you North a

supply we year. third we quarter -- supply, think of I last as in got into So back fully and back got the

this we're cycling our of in in that in see you we could that third quarter a last that year, in the chart presentation and so spike quarter. had inventories And kind

think So driver. that's overall the I really

year-to-date, At to the basis primarily the impact potentially I I'd inventories reflects, levels. our net for So quarter, inventory. say about from look consistent environment And said, sales I'd from us historical financing global point service overall America. between end to year, say, and with year North of restocking that seen reductions side improving hurricane, last the in this as XX we've headwind and costs an retail an higher

But should hopefully, think dynamism say, we the would through So mostly it. -- working environment. some hey, through I you are we're in we be

further And so we through retailer next reductions of in which could happened the year-end, year. still see some QX fiscal

at So if growth that year. be in closer could the persists X% similar QX, levels a full for organic we to

Nelson Urdaneta

some will, quarter, to and factors, and bill retail Yes. QX the we year. And the the as the what Consumer in quarter we QX, in Southeast. of of lastly, And again, a really the on Care, few was impacts it inventory Lauren, on, of in this slight label One, year. add shipments, if had which, factors. with well in the had that's by combined, we'll year. you America is of the lapped as Tissue hurricane both couple and transitory is changes, we We a next North inventory, then businesses of impacted pretty exiting the out about shipments at X.X%, the inventories last disconnect, things volumes with reduction that grew think some in the business And again consumer category. the Personal exit so of in drops had impact hurricane we're offtake a Then private we both the ahead a as strong, end just

in there is and in attributable shortfall weakness is bit professional referred transitory account led XXX basis in QX, about North in underlying a combination markets to. America in international of just factors is into referred that if other And some X Personal to point North Tissue Care, was demand North the to the the But X/X to. I take around was America Consumer the in points that that key some think The you headwind Mike particular, whereas Tissue, about about Consumer XXX basis America. in business to the these

how you to be that's the bridge numbers. overall, able X So would

Lauren Lieberman

some been around surge your takeaway in I in ahead port There's hurricanes. seen Nielsen Okay. the the and And curious, categories worth, of in Great. of just it's consumer what questions around for we've was just data, strike.

you be... for would that dynamics terms to just did to see So consider that things think shipment XQ, any of anything in and about

Michael Hsu

really would expecting I up of quarter. the the any consumers. level. we Lauren, that of I'd I'd we potentially to kind not in by say, say from enterprise would at any hurricane it yes, bit and little behavior related strike. port Yes, a say, And expect stock both did we'll through work an see benefit meaningful the we're not

Operator

is question RBC Modi Capital next Your Nik Markets. from with

Nik Modi

talk shares. just can you good you things maybe release that Mike, looked from market In the suggested about standpoint. pretty So

kind which innovation. of I your to on numerator like environment some on we've the very tagging seen on mean, competitive just So and out a thoughts of that I in cannibalization that data there's kind wanted some Skin of the suggests on get high But to innovation rate. just Essentials, general. of your of

play. about so you role to markets? I wanted get kind thoughts some other about and and gains? as it's expanding pool this with been And you the tier just about market that to going price of suggesting you've the U.S. value think of innovation have of in this Or share kind the really your how Is opportunities on is the

Michael Hsu

answer all Okay. of Nik. I'll that, try to

our the steer depending on we're But to and the short me market growing expanding off may how we're shares think to after You answer I overall, answer. category. is, hey, have I

significant quarter, on very the So say are think market it's I progress both for making the overall And of that think good we're feel share. I about those. overall I I'd we -- say pretty globally, weighted improvement cohort improvement. on And I'd ago, more a versus which on a this flat overall, half about time a year than basis. slightly basis, we're an is

we have Importantly, in I categories in year think quarter Consumption strong the in X so ago is discrepancy -- a up in X consumption. where the of very and and we're were solid, or making even versus sequentially. U.S. progress we of X a where X and

I we've investing commercial driven all market hey, progress together. we're We're make innovation. good So Nik, in really to advertising better which investing been you strong is, to we're levers that's improve all strategy And those our on and and by about, pulling products front. think talking activation, driving that we're to pioneering the making share the

if on you're in the your overall a whatever is margin-accretive the margin. goal to premiumize consumer say need drive delight path think at should overall, be preferred innovation look is I'd I innovation, we in in trade-up as so a obviously, higher question premium And our way, right? that is that So do our categories, or to to. way driving that we to

care And I'm And excited that from Skin the the that so like great Essentials, in, kind feature great a in That's investing worth lot of benefits consumers perspective. ways, I a a so thing. about see of and a skin delivers that right? category, that's great in feel really product new

to going all tiers better, every products all tier on innovation But of spectrum, we so our also on make -- are right? of best And we're good, the better. throughout cascading our to our focused bring

my some want value, so And they our us to do tiers job up? the of Or and that ask spectrum. me, you organization across trade is want best good, deliver frustrate well, say do all answer I to of you right? the Because sometimes short which yes, maybe when better,

Operator

next Your today America. question for with Lizzul is Anna Bank from of

Anna Lizzul

about talk if label the you wondering businesses. was I private could

private label businesses, this exit did certain impacted You which quarter.

helping on XX% moving gross So should goal now Maybe you just longer-term XXXX? by how give forward process? you at expecting margin detail least your can to where and us that are overall be is we what you of more in get this

Michael Hsu

Yes. shift Anna. focused us think right-to-win overall and the Thanks, kind really for innovation science-based our Yes. behind really is label in Yes, the of behind underlying proprietary that's I brands. we're private strategy on spaces,

investment drive differentiation. our capacity So we and in focus technology to really to the want brands further

of been months. basis branded -- able so brand. enabled expand that up business XX we've us which been was some growth last we've that XXX this had label for the share has Kleenex, And the example, our behind our the step in to for to private quarter. in we've almost up some business, is out That That past quarter part capacity or because of points of moving

important So I been an that's think move.

sales time combined headwind quarter next was for I in us business in club in we private the material call cease last think and that And us the noted the I diaper maybe going enough a year. about it's some for large part that out. create to I in X% customers QX, highlight with did that the for to our weaker presentation. some think exit first label last a XXXX, label production quarter that's of that U.S., we'll

private to and result, over XXXX And so label as to that from mix X% about shrink year, further our will about decline time. next expect X% in a I

Operator

question Herzog with Bonnie is from next Sachs. Your Goldman

Bonnie Herzog

ahead I your which and about wanted pretty tracking it's of year-to-date pre-COVID to meaningfully margin, gross expanded ask levels.

step to of we sustainability on environment and need sales levels, and So think a benign and I the up the limit see given the also pressures these especially downturning. your should about support what's given you that just to cost of wondering considering level input consumer ongoing possibility the savings. organic soft margin the how guess from productivity probably promos right

Nelson Urdaneta

Yes.

So what innovation the mean sustainable the margin dollars. day margins, gross the margins behind at been because a business, ability few pretty trajectory end the invest drive pleased Overall, in with that's Bonnie. in the really invest which things, just to our talking the and operating of putting our profit that of Mike our was about. importantly, we've funds marketplace, gross brands more and the we're I that's focus

doing X we've we to right on been as we last to which consistently have is pretty healthy margin after a an average year expect, what on year, year-over-year margin the gross on continue basis. For gross margin, And of year-over-year. so, we're for gains gross gains quarter the the And quarter, or gain. XX% quarters still a around is we've exit seen

of playing XX% have things to before to in out margin strong what's stated the out few gross or range XX% goal we end of still what's long-term gross and following. margin ability least terms played our to operating margin A And is in have the in driving the our the decade. why XX% of confidence of get at the

overall to first on focus on is, our focus meaningful One and making it foremost, driving margins. accretive and innovation

really than more our can in react our at that what into X proactive did, we managing around is overall, say, have we We're basket management coming ago. look what's shift our cost cost risk us more we the Secondly to and appropriately. way strategies, years allows visibility way so much a X, different to how basket

productivity our past element, and playing of through this Powering supply gross this as we Powering third billion. been million, manufacturing going strategy few our next We've the it's our forward of to and transformation strong the the out part quarters very year. procurement, really strategy -- well Care is first years $XXX from quarter, just very that's part and we chain. have of including supply underway and year, over the very The in our and in deliver $X chain, pipeline not it's We're strong get delivered productivity a that X Care as

So we over time. see that as very sustainable

into to take not linear. A key is account progression point margin is

there will ups So downs quarter-to-quarter. be and

The thing from happening what's over basis important is time. year-to-year a and

stand the basket, exactly same projected. question. was pleased the we Right bit from outlook of we QX. that number year. but And We've of right are beginning the what kind an expect So cost that about now. to QX, staring at in of -- line an a a we same where obviously, on we QX your cost in overall, have that's seen at now, trajectory had very seen we have as uptick in that of part we with still the had provided We

at So versus what seeing. stage no we're this change

Michael Hsu

that maybe And driving very focused or we touched the discipline, on its productivity the on and we're to of and had we're of net focused expansion you promotional mix-driven -- what right? so growth. environment. also just on discipline the own. Bonnie, And price the Yes. do that, magic is drives pricing if of right volume the And or margin think on then call that I say overall, kind organic really on commodity PNOC, I'll PNOC, we now

to year. ladder. run -- we as say, would best really good, is want had pricing mentioned as the I throughout the to better better, inflation planned every But be of just at We offset I earlier, overall, cost proceeding value had

then And advertising so to and with it. how commercial strong our innovation, brands our kind really or focus That's on building the we of really, world-class vernacular execution. play storytelling and want

as we say we how pioneering it. a promotion driver but do with think use -- primarily about would innovation our I trial and is

Operator

is The from with Fargo Wells next question Carey Chris Securities.

Christopher Carey

category question the growth. going on organizational new to So QX and structure profit about I in sneak I'm operating just then oneX a the have just expectation. And

that at of in end to be for your organizational lower have the X, expectation structure decelerate also place you category least regarding you long-term new of to growth So have the October as an or range.

that saw in remarks. prepared I think I the

And where so QX organization coming and that yet bit looking growth part had below how long perhaps those see an next top that how X to the growth where so maybe even -- these for? organizational I for together, before sales a this bit with really XXXX I pricing going outcomes changes fit right? you've And So driving to little an new global the on How you'll in are wonder of have than organic similar line you and that less organizational important be kind just year of eye is do trajectory year. a have this And QX, organization is, things rate, driving together. category outlook place. the specifically think, you're you that

muted differences really we just on QX? the narrowing is of some behind the characterize in the -- decision a be and QX, could gross being certain margin a Is standpoint? just I from investment that operating if investment? that things profit bit expecting in performance? you just is that Should And discretionary sneak more between you're offensive gross QX How an about being would relative margin

Michael Hsu

of lot up questions earlier. there. to Okay. There's a Chris, in you're unpack

And said The address we've say informal steer growth something. pleased basis little I'm that But October So X, behind for and an we that the progress one, that our around just been is operating earlier. wire organization as truth with forget really implementing officially. in on the making -- us is will we've if doing that our been we to organization. I

gone starting kind So I of it's and that of well, very, think structure. moving very we're see off to the benefits

in but need the well. I'll value markets Underlying strengthen overall hit Consumer very remain our healthy, mindful affordability I We're propositions. category Chris, on remains better-performing the and emerging developed our categories. still and hey, very in especially remains as think, I'd markets, products say, about developing brand resilient. healthy. interest in categories growth, to

growing the us which and The dollars overall, are in I say penetration, categories stable, drivers long that is term units. remains big a healthy, underlying I'd think demand for includes opportunity. and overall remain and So

markets troughed. But you're birth like birth lower The We some China. I'd in aware slowed Korea actually that in has are as seeing and of the like and slowed have they down. well in South rate have tempered say declines down.

kind performing in and environment. still -- are that so And well our businesses of

We a the population lot strong care business adult of course, tailwind developing across aging of markets. our across is then, stages markets and still remain have very categories of this for development with markets. that emerging early developed a And at

And a grow, markets, but especially for think seeing even story. good a penetration, emerging big in developing and remains the and markets. driver in and to so premium including I still both emerging I and Trade-up U.S. category, it's markets, developing demand the continue developed products of think we're the

some is see notably little using bit America tougher consumers in softness products Latin Asia to I a where think bit their economic typically now. little environment, Typically, right to Southeast the frequency tend longer try a and we some like by duration. in stretch markets money out for in a

bit America And Latin and Asia. a softness of so are we Southeast seeing in little

slowdown in think I our addition, our professional presentation, business. we're some we in And in North mentioned seeing traffic American

likely X% previously. say So closer weighted range be as year category X% to I'd said, I we the that on That to to had a versus full highlighted algorithm. growth result, remain think is X% our we

across share our which goal will category to And up to we we're year. as think. lead growth, this businesses to Of then is continue on course, do, our slightly we flat globally

Nelson Urdaneta

can bit margins, the trajectory, and back top line Chris. QX me get let into a we little the then And

trajectory. the at we So a few things as line top look

pricing. thing one, a So is, transitory the factors, absent key

We are expected. pricing players growth we organic can projected year, has all come the ourselves. QX had you at as been QX, And the pricing happened what's and is, in see and category, overall of have taken actions our down lapping as as from the beginning across that impact to of the

we quarter, X%. go the was But were only For QX, X% you that pricing. if to back

So been case be because that year we also as economies coming much the expect hyperinflationary and the has it's down, pricing pretty coming down. in closes, been

having is The bit the an category is that also incidence other growth. on

the an pricing in rates. see and we're that's has remained category that you down, on what impact Nielsen healthy, having in seeing BQ overall While and seeing coming also et data you're is cetera, growth

So that's something to expect we have.

But key this overall, that's Day, as is QX. really is -- element said our new Investor volume the what for we phase we mix-led growth, at about expect and

at can't We normalize for saw. be top you And what If top QX on again, implication we don't could stronger the line saw our that transitory that be outlook QX, one-offs. look to what what But control. is predict of we we'd we're do than know, we we we the stating factors QX based our there actually in on expect happen the expect for that what for once we line. to

advertising few of points. we a gross saw One, play for behind we margin our signaled We In the up as things. that terms our up brands QX QX, platforms. in July. basis are in XX We by stepping had stepped out spend investments and

We in expect up QX. advertising at least by brand to step that support and amount

be So of the north the X should of X%. combination

into to be account. taken that's element one So

last would QX. costs time. cost in timing these is least half we continue last costs of to we loaded. economies mean back slow played currency would year-on-year are P&L there the in Secondly, a we out the actions of strong in But we some input little progress out we hit how that and do play to hyperinflationary in, had overall, more we That of the but QX. because thing inflation, And had of in of out back that to key margins, January, in expect over -- making including will on expect QX. I pricing not year be That discretionary bucket as is and our indicated are some our

Michael Hsu

we What miss, Chris? did

Christopher Carey

was think I I And that as hoped for. that -- could comprehensive as was have

entertaining all for you thank that. So

Operator

next for with Grundy Kevin Your BNP today from question is Paribas.

Kevin Grundy

follow-up of Question a a on for Chris' -- you a as on bit though. different question, angle,

Mike, what organizational of of Just visibility as dynamic results, to change in pretty pushing through sort pertains this still is myth, on that been the all a environment. you've kind it

fell So and Street. I expectations asked context, own that internal bit your quarter a of short in the the the

something recently, factors Some really throughout for the being September, these that the it. of these early with When kind the There's the sound it's like was known. quarter. braced amplified inventory was like speaking it such of were of Street didn't you're -- as evolve some build of Street factors magnitude the

the of So the environment. I volatility can appreciate

investors question both visibility what on Nelson, visibility be around with well the that concerned your the there contending the kind for visibility Street. the and in of not of speaks change you really to the and organization should quarter organizational done But to all productivity as of have sort P&L, terms down why of has kind the this point you and is of certainly setback that a further you're guidance you're really conveying this taken. my

Michael Hsu

Yes.

one, the well. I'm I'll controllables from I'd start, have Kevin, really the we strong Overall, that very, the think execution I'm pleased the that really are managing very really, globally world. we around say with pleased team I with

market happened inventory, very the I to certainly you do think in conditions. be transitory what retail is of quarter, say, we'll think react the impact. I certainly, to understand would a part evolving think I I it it's on

little our to we started Asia we've America professional as in Southeast so And business. Latin in and see and, a softness in noted,

for think it. is good we the on I visibility us, have opportunity

condition reorg gone I months. change the organizational our been has think internally in say, very would a very, words, X well. for past operating, the We've soft I

has think visibility the good in the running changed importantly, pretty so markets operationally. have And not management And are we significantly. I businesses that

investors' that our think I should give there. us So comfort

all is aware what there think out of. markets some calling that we softness are I is we're in some

better we Sure. product marketing perspective perspective? conditions that could from Some category be a doing or of the are is things a that certainly

visibility the international and the about our And our and for Personal creating or growth I markets. into America North impact, of make that so the like more rewiring it's that's us, markets for think some big is Tissue biggest big Consumer I thing Care

so and quicker. on would to say, we're respond And able, going diagnose I much what's

China, that some though to And of we on areas it have in it on little slightly even share in the up the was work opportunity Kotex softened harder, bit. a quarter,

fem in tissue That Korea soft Brazil, quarter. a care in Our business in similarly. was South little the

of a now only bit growth little was category One the offset -- And we let's in some little conditions. than little harder. that saw have rather in of of category points say, of of we XXX a we're slowdown why reasons a bit that that that things been a slowdown the share Korea the quarter points in hits growing the multiple XXX share bit or, the growing share home basis

I opportunity we have So think there. some

And lastly, we're parts have some over. of Huggies I in then improvement Latin opportunities, all which think product America, we do

good good feel feel the and we about are the I And reorganization. visibility, where again, so in I about

you to if know don't I Nelson, wanted add... But

Nelson Urdaneta

Yes.

just add, in Kevin, business that will our volume to been we consumption a and So and we've discipline of a how end. the around manage things. on lot One, instilling -- approach we to remain few

And consumption. fact what on consumption, happen. be role We're that because month-to-month pleased that just consumption basis be and predict we a shipments chasing chasing a America, we promotions North with doing. the going that's and between there in elements will going Again, they there remains So play, are that on strong. We're can't to and the we're to there's steadfast disconnect remain not we're volume.

around Our business. the fuel focus be invest -- and generate to back the line, discipline business to also able has the manage we overall how remained in our profitability bottom to of

that again, we're we And Our better as execute. by getting on performance has day been end. the strong

carry looking have we're lot to Care they're been change what teams transformation. few next Our we doing Powering -- accomplished going of the proud very and our at what as years through last they've next be months, going and the few of the we're over over a out over how

overall, setting the to growth there'll and profitable manage manner, category what to our organization a So and But through do. we'll dynamics. quarters, we're be few next is sustainable that's market objective ultimately, lead and in the

Operator

is with question Escalante final from Your ISI. Javier Evercore

Javier Escalante Manzo

I'm items because be I it going some is of to that, lot there in revisit discussed a moving simpler pieces. way that of think, the may a

factors. say external internal of kind So like issues versus

So not just destocking the bigger one this is is you. one, external the inventory

-- We about with of other have been some your with peers. this talking

you it, points about is the it stores shift that driving that of that a And Is what's using you If mechanics was basis can I it -- they basis. are just basically to think COVID? XX talk if heard I it say, e-commerce can differently? on year-to-date

If you can was what just simply the impact QX. on tell us

the that's So externality.

more into I but wait, which would is me interesting. piece, more I'll like to internal go the to

you for if give that address So can then and me question. a minute the internal piece

Nelson Urdaneta

supply that what's numbers and last destock of QX. particularly in the of there year, especially, see. And in I the on happened that following for of give -- had mean, as But are point We had our bill to So bit we sense get inventory you more me just XX the stated, reconcile what to movements. basis Javier, can QX let and you externalities, year. QX in And then U.S. chain a a normalized as in had QX this QX you

We the X of very the hurricane of the X, shipments. had days the end impact last quarter, also at

label element we September. the private materialized other softer the shipments. And some demand then the we of that in end exited contracts. then other at label private And was of on had top that, I mean

elements of the that X transitory quarter. growth to called as we've added -- in factors that I've to X point Those referred slightly of north

growth. the the want to give that drove what for me you you referred if it points, take to exact. X.X or round roughly if year, that that. bps, That's the for all So That's overall to XX add Mike be enterprise in

Javier Escalante Manzo

Yes.

are the following, a So doing the you lot. company, roughly highly the decentralized This -- question real you the same. is right? categories basically, So the at a is time, basically are but same

are you basically, moving private from label. So away

you tell can you if process again. how that are So in us

your -- points year, plan -- next sales that that what is label the as private were your is what private of in coming because year explain label, was the what an at item into of they exit alone. there for now, can are is percentage you So impending of if X global So the where the business beginning XXXX?

guys then -- an the S/XHANA year? going item, math have more tissue guide of being about implementation better item which, news impact there professional the [ is you X% (sic) another businesses, you in ]. and out, you that is So can that terms or To you the of And international is so X/SHANA strategic extent if for in a what into of visibility came give next evaluating profit. there options my

So to lot be doing very seem time. at same you a the

So us the have control Do to system volatility can the organization the manage so going you forward? is tell responding. this you how

Michael Hsu

Yes.

what's think think in deliver haven't the new start the happening maybe. response October of organization's of model reality for I any up reorganization. I switch on we And And is been to -- we pleased operating mentioned, start it. the have is X, soft each And that structure of Javier, mode I been running the or significantly the I'll local we've flipped but markets, new we to leading in said, P&L. kind as we markets changed a management as the a very a I operating of the kind with the in reality several the on months

And all. my in hasn't there would very mind, there little much expectation our be at been disruption so disruption. And

into think I the about again, And proceeding. business very, kind feel good. how is of organization very very we good the remains looking at our visibility So

sales our label, earlier, it be company. X% again, of -- I'd about overall the I'd year, I of say mentioned on it's this private the will think

Next would be the be And way -- label. then we'll X% be will exit, private there. work down plans it year, our our from about after will it probably

So that's that the did part. want... I forgot what -- else what you

Nelson Urdaneta

had Javier. You question a on SX,

we... So

Javier Escalante Manzo

is news pro ahead. question tissue don't because you of -- X/SHANA about volatility you that about I whether basically foresee X% the But is. more strategic S/XHANA ] what item which and better to [ Actually, looking for the about capacity options guys international profit. Go this give for there is this will business, (sic) know is

Michael Hsu

-- call technology S/XHANA what First my did door, of the since but flip nobody my Javier, on complement than all, of American I weekend if DTS, me, the them, our organization, the experiences before don't contrary was it earnings service most easier be last end switch And North remiss to digital we opened you at really will are, other July, the noticed of implementation run. quarter. actually the to

I great our so a done has job. And organization think

without the slippage. meet how I -- think, to did the us see that we off who you pull software vendor actually, provides do how any to with wants

I think I a job -- so there, extremely, again, the good continues we've I from done that think, perform extremely well. and perspective, So to think, very organization,

know you know. And care your we consumers like those robust think more we're important in to contributor our a you to our need I'd recognize me, there's returns to to matter We we'll more something not and add to And on don't let I'm say predictable rumors. assets. optimize the Javier, that that to and of regard our said, I'll a professional, international growth in our feel family a right and like where we're taking news But a value going questions I us. articles participation With practice, the places and we for win to have categories, believe in long to that can lot I also or we customers. in. categories when that term, you'll make look we That think steps obviously, for comment as

the some that difficult us is saw in to and made have example that discussed where it I you compete. structural for we And I Brazil, factors think

would in, couldn't that On one business, to good I difficult more government that access that some, made some the was incentives Tissue of we the category I say, the the compete company. very think we different for side to a a due Consumer made decision

we'll And so decisions. to continue business. again, think tough make know I But there's regarding we'll you about I to think those the think if let tissue anything

Christopher Jakubik

joining today. for has will your anybody who us to around for And everybody, calls. be Relations follow-up Investor Well, thanks, questions, take

a have great very much, thanks day. So and

Operator

This this lines time. you your your and disconnect concludes may today's Thank participation. for conference, at you

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