Q4 2023 Church & Dwight Co Inc Earnings Call & Investor Day

February 2, 2024

To shareholders. So let's begin we have a safe harbor statement courage, everybody to read that after class.

Bass.

And I'm going to start out with the who's with US here today, we have virtually the entire management team.

One of the best looking management teams in CPG sure you'll agree.

And I'm going to start out with the who's with US here today, we have virtually the entire management team.

And I've got a kind of a packed agenda I won't read it to you but.

One of the best looking management teams in CPG true you'll agree.

We had a number of people coming up we're going to talk to you today about the financials are our new products.

And I've got a kind of a packed agenda I won't read it too, but <unk> got.

Digital and also our international story, so here's a quick look back to 2023 so.

Got a number of people coming up we're going to talk to you today about the financials are our new products.

Digital and also our international story, so here's a quick look back to 2023 so.

So we had a great year for reported and also organic growth I reported 9%, an organic 5% and we had gross margin expansion of 220 basis points.

Hold the applause for a minute.

We had all time high shares in a lot of our major brands share gains marketing spending historically has been a 11% we got almost got all the way back to 10, 9% and we generated $1 billion in cash from operations and finally as you know we've been investing in capacity for laundry litter and vitamins.

Hold the applause for a minute.

We had all time high shares in a lot of our major brands share gains marketing spending historically has been around 11%. We got almost got all the way back to 10, 9% and we generated $1 billion in cash from operations and finally as you know we've been investing in capacity for laundry litter and vitamins.

And also adding to the capabilities of the company.

And here's our CSR. We show this to you every year 135, and 10 years, especially what matters to our shareholders.

And also adding to the capabilities of the company.

And here's our T. S arm. We show this to you every year 135, and 10 years is to see what matters to our shareholders.

2022 was an abysmal year for us and we've recovered in 2023.

We got a lot of confidence going forward in which youre going to walk out of the room here today thinking. This is that we've got a lot of confidence in our ability to grow in the U S. You see that we tweaked our evergreen model in our press release, So we're expecting 3% growth in the future in the U S. International we've tweaked that there to say, we expect 8% growth.

2022 was an abysmal year for us and we've recovered in 2023.

We got a lot of confidence going forward in which you're going to walk out of the room here today thinking. This is that we've got a lot of confidence in our ability to grow in the U S. You see that we tweaked our evergreen model in our press release, So we're expecting 3% growth in the future in the U S. International we've tweaked that there to say, we expect 8% growth.

Internationally going forward, we have a wonderful lineup of new products in 2024, but we've been consistent in our innovation for many many years, we're becoming more and more digitally savvy.

So one of the markers for that would be what percentage of your sales is online and the answer is 20% of ourselves as a purchase online that's over $1 billion in sales.

So one of the markers for that would be what what percentage of your sales is online and the answer is 20% of ourselves is purchase online that's over $1 billion in sales.

The new Evergreen model is very healthy and she's going to leave here today thinking that we've got really strong fundamentals going forward.

Then the new Evergreen model is very healthy I'm sure you're going to leave here today thinking that we've got really strong fundamentals going forward.

So who are we ran a $6 billion company.

Largely U S is 78% domestic and 17% international especially products is our original business back from back in the 18 forties.

So who are we ran a $6 billion company largely U S. You see 78% domestic and 17% international especially products is our original business back from back in the 18 forties.

Storage, we've talked to you about 14 power branch in those 14 power brands account for 85% of our revenues and profits.

Storage <unk>, we've talked to you about 14 power branch in those 14 power brands account for 85% of our revenues and profits.

But today as you saw on our release in the future, we're going to narrow our communication to investors and shareholders and analysts to seven of those 14 and those seven are ones that are in larger categories and we also believe they have a lot of potential for our global growth. So those are the seven thorough breath fight effusion hero of <unk>.

Arm <unk> Hammer, our biggest brand Waterpick batiste, and Oxiclean and they account for 70% of our revenues and profits so I'm going to run through what our winning Formula is first off is we have a very balanced and diversified business. We have low private label exposure, great innovation as youre going to see here.

Arm <unk> Hammer, our biggest brand Waterpick, batiste, and Oxiclean and they account for 70% of our revenues and profits.

We're going to run through what our winning Formula is first off is we have a very balanced and diversified business. We have low private label exposure, great innovation as youre going to see here today, and we are an acquisitive company.

Today, and we are an acquisitive company.

For many many years, we've said the highest and best use of our cash flow is to buy brands.

For many many years, we've said the highest and best use of our cash flow is supai brands.

Here's the balance were pretty much 50, 50 between household and personal care.

As far as value versus premium historically, its been 40 60 between value and premium because of the growth of thorough breath and hero that shifted a little bit, but it's still a pretty solidly up around 40 60 low private label explosion exposure. This is on a weighted average basis, it's around 12% and it's been like that for many many.

Alright, here's the balance were pretty much 50, 50 between household and personal care.

As far as value versus premium.

Storage, it's been 40 60 between value and premium because of the growth of thorough breath and hero that shifted a little bit, but it's still a pretty solidly up around 40 60 low private label exposure exposure. This is on a weighted average basis, it's around 12% and it's been like that for many many years category leading innovation Barry.

Years category, leading innovation barrier Bruno is going to take you through a lot of the innovation group things, we're launching in 2024, and we have a long history of acquisitions. So if you went back to 2000 and for everyone.

Bruno it's going to take you through a lot of the innovation group things, we're launching in 2024, and we have a long history of acquisitions. So if you went back to 2004.

$1 5 billion in sales now we only have $6 billion in sales in 2023, and our acquisition quite criteria is very specific so we're very fussy about what we're going to buy.

We have $1 5 billion of sales now we only have $6 billion in sales in 2023, and our acquisition quite criteria is very specific so we're very fussy about what we're going to buy.

They have to be number one or number two brands. It can be high growth high margin brands fast moving consumables asset like we have to be able to bring something to the party and leverage our supply chain of our internal capabilities and they have to have a long term sustainable competitive advantage.

We're a global growth. So those are the seven Thoroughbred fight effusion hero of course arm <unk> Hammer, our biggest brand Waterpick batiste and Oxiclean and they account for 70% of our revenues and profits so I'm going to run through what our winning Formula is first off is we have a very balanced and diversified.

Alright, so we have seven of those power brands today and more to come.

And here's our SKU wrap it up here just remind you balanced portfolio I think is really key to the long term success of this company low private label exposure, we don't have nearly the exposure that some of our peers do.

Alright, so we have seven of those power brands today and more to come.

Innovation is the reason why our brands are so successful and the reason why our brand equity grows year after year and finally, we're an acquisitive company and we do it well I'm going to bring up Rick now to take you through the financials.

Business, we have low private label exposure, great innovation as Youre going to see here today, and we are an acquisitive company.

Innovation is the reason why our brands are so successful and the reason why our brand equity grows year after year and finally, we are an acquisitive company and we do it well I'm going to bring up Rick now to take you through the financials.

For many many years, we've said the highest and best use of our cash flow is to buy brands.

Alright, here's the balance were pretty much 50, 50 between household and personal care.

Alright, Thanks, Matt when I talk to you about the quarter the full year, which we finished really strongly.

As far as value versus premium.

Okay.

<unk>, it's been 40 60 between value and premium because of the growth of thorough breath and hero that shifted a little bit, but it's still a pretty solidly up around 40 60 low private label exposure exposure. This is on a weighted average basis, it's around 12% and it's been like that for many many years category leading innovation Barry.

Alright, Thanks, Matt.

And also our outlook and our evolved evergreen model.

Talk to you about the quarter the full year, which we finished really strongly and also our outlook and our evolved evergreen model.

So first the quarter.

Our outlook was 5% net sales growth perspective, it was 4% organically.

So first the quarter our outlook was 5%.

It came in at $6 four or five three so just better than the topline all around gross margin would just had expansion we came in at 260 basis points.

Net sales growth perspective, it was 4% organically.

We came in at $6 four or five three so just better than the topline all around gross margin would just had expansion we came in at 260 basis points.

Bruno it's going to take you through a lot of the innovation group things, we're launching in 2024, and we have a long history of acquisitions. So if you went back to 2004.

Spanning versus a year ago, and then EPS was up so just green arrows all the way.

Expanding versus a year ago, and then EPS was up so just green arrows all the way.

For the full year similar story, we had 9% as an outlook for the top line and five for organic came in at $9, two and $5. Three gross margin. We would expect it to be up to 10, we were actually up $2 20, as Matt mentioned, and then EPS reported an adjusted or both better than we expected cash flow.

We had $1 5 billion of sales now we only have $6 billion in sales in 2023, and our acquisition quite criteria is very specific so we're very fussy about what we're going to buy.

For the full year similar story, we had 9% as an outlook for the top line and five for organic came in at nine 2% and five three gross margin. We would expect it to be up to 10, we were actually up to 'twenty as Matt mentioned.

<unk> was our outlook and we came in at $1 30, So just strong cash flow all the way around.

And then EPS reported an adjusted or both better than we expected cash flow of $1 billion was our outlook and we came in at $1 30, so to strong cash flow all the way around.

Alright, so just I'm going to spend some time on the evergreen model. So for many many years, we've been going through and I began in and almost all my presentations with the evergreen model because that is the fact the backdrop for the company.

Alright, so we have seven of those power brands today and more to come.

Alright, so just I'm going to spend some time on the evergreen model. So for many many years, we've been going through and I began in and almost all of my presentations with the evergreen model because that is the fact the backdrop for the company Org.

Organic net sales of 3% gross margin expansion of 25 basis points flat percentage for marketing higher dollars and then we leverage SG&A by by 'twenty five and that's how we got to 50 and that led to 8% EPS growth and that's what we've been saying year after year after year and we're evolving it today and we're going to say, 4% for the last 10.

10 years, if you look back at our history, we've been growing 10 four.

<unk>, 4%.

What we're saying we are we have confidence in the future and we're going to continue to grow at 4% I'll get into that detail in a second but the divisions would be 3% domestic 8% international and five 5% for SPD <unk>.

10 years, if you look back at our history, we've been growing 10, 4%.

Okay.

But we're saying we are we have confidence in the future and we're going to continue to grow at 4% I'll get into that detail in a second but the divisions would be 3% domestic 8% international and five 5% for SPD.

Rick: Alright, Thanks, Matt.

The thing about the quarter, the full year, which we finished really strongly.

Gross margin. We also think that this is the time that we are accelerating on productivity.

Rick: And also our outlook and our evolved evergreen model.

Rick: So first the quarter.

Gross margin.

Rick: Our outlook was 5% net sales growth perspective, it was 4% organically.

Inflation is starting to moderate.

We also think that this is the time that we are accelerating on productivity inflation.

And we have some fast growing acquisitions that we've done that are helping that or tailwind to gross margin.

Rick: We came in at $6 four or five three so just better than the topline all around gross margin would just had expansion we came in at 260 basis points.

Inflation is starting to moderate.

And we have some fast growing acquisitions that we've done that are helping that or tailwind to gross margin.

Marketing same story flat percentage, but higher dollars. So as we grow faster that just means we're going to invest even more dollars in marketing.

Rick: Spanning versus a year ago, and then EPS was up so just green arrows all the way.

Marketing same story flat percentage, but higher dollars. So as we grow faster that just means we're going to invest even more dollars in marketing.

<unk> gained share and to help grow our brands.

Rick: For the full year similar story, we had 9% as an outlook for the top line and five for organic came in at nine 2% and five three gross margin. We had expected to be up to 10, we were actually up $2 20, as Matt mentioned, and then EPS reported an adjusted or both better than we expected cash flow.

SG&A, we're going to leverage maybe not as much as in the past is still leverage in.

<unk> gained share and to help grow our brands.

And in that number we're now investing largely behind international and.

SG&A, we're going to leverage maybe not as much as in the past is still leverage in.

And largely behind E com and we'll get into that detail on our second tale. So operating margin still expand 50 basis points and industry, leading growth of 8%. That's that's the new model.

And in that number we're now investing largely behind international and.

And largely behind E com and we'll get into that detail in a second til. So operating margin still expand 50 basis points and industry, leading growth of 8%. That's that's the new model.

So, let's just go through the detail a little bit on organic what gives us confidence well we are in fast growing categories and Barry will show you as we talk about those seven they're extremely fast growing we want to take share and we do that through marketing through innovation and we've done that year after year after year.

Rick: <unk> was our outlook and we came in at $1 30, so to strong cash flow all the way around.

So, let's just go through the detail a little bit on organic what gives us confidence well, we're in fast growing categories and Barry will show you as we talk about those seven they're extremely fast growing we want to take share and we do that through marketing through innovation and we've done that year after year after year.

Rick: Alright, so just I'm going to spend some time on the evergreen model. So for many many years, we've been going through and I began in and almost all my presentations with the evergreen model because that is the fact the backdrop for the company.

Their breath and hero recent acquisitions are fast growing and then international growth has accelerated to 8%.

On the gross margin side again productivity is outpacing inflation.

We have higher margin acquisitions on the marketing side and server is going to talk about it we're getting good rois on our spend.

On the gross margin side again productivity is outpacing inflation.

We have higher margin acquisitions on the marketing side and server is going to talk about it we're getting good rois in our spend.

That transition is helping and then we have higher dollars as we grow the top line.

Rick: In years, if you look back at our history, we've been growing 10, 4%.

And then SG&A, we're putting in systems all over the world, we've put into China ERP system, we're putting in an ERP system for our.

That transition is helping and then we have higher dollars as we grow the top line.

Rick: What we're saying we are we have confidence in the future and we're going to continue to grow at 4% I'll get into that detail in a second but the divisions would be 3% domestic 8% international and five 5% for SPD <unk>.

And then SG&A, we're putting in systems all over the world, we've put into China ERP system, we're putting in an ERP system for our.

For our Gmg business based out of Europe. All of these investments are embedded in our numbers.

We also are building capabilities around the world regulatory back office to support this fast growing business called Gmg within our international.

Rick: Gross margin. We also think that this is the time that we are accelerating on productivity.

We also are building capabilities around the world regulatory back office to support this fast growing business called Gmg within our international.

Rick: Inflation is starting to moderate.

And then analytics and e-commerce those are capabilities, we want to build.

Rick: And we have some fast growing acquisitions that we've done that are helping that or tailwind to gross margin.

Okay move into 'twenty 'twenty four so I'll just talk to the new Evergreen model. The outlook is actually a step up from that.

And then analytics and e-commerce those are capabilities, we want to build.

Rick: Marketing same story flat percentage, but higher dollars. So as we grow faster that just means we're going to invest even more dollars in marketing.

Okay move into 2024, so I'll just talk to the new Evergreen model. The outlook is actually a step up from that.

The outlook is 4% to 5% on the top line, it's 4% to 5% organically, excluding mega lack excluding currency.

Rick: <unk> gained share and to help grow our brands.

The outlook is 45% on the top line, it's 4% to 5% organically, excluding mega lack excluding currency.

Most margins up 50 to 75 basis points, so to step up again from our evergreen model.

Rick: SG&A, we're going to leverage maybe not as much as in the past is still leverage in.

SG&A is leveraged operating profit expansion is higher than our evergreen model 60 to 80 tax rate's, a little bit higher and EPS growth of 7% to 9%.

Gross margins up 50 to 75 basis points, so to step up again from our evergreen model.

Rick: And in that number we're now investing largely behind international and.

Rick: And largely behind E com and we'll get into that detail on our second til. So operating margin still expand 50 basis points and industry, leading growth of 8%. That's that's the new model.

SG&A is leveraged operating profit expansion is higher than our evergreen model 60 to 80 tax rate's, a little bit higher and EPS growth of 7% to 9%.

Our cash from operations was 1 billion plus.

Now, we do have some timing within our EPS outlook. So the first half.

Rick: So, let's just go through the detail a little bit on organic what gives us confidence well we are in fast growing categories and Barry will show you as we talk about those seven they're extremely fast growing we want to take share and we do that through marketing through innovation and we've done that year after year after year.

And our cash from operations was 1 billion plus.

Essentially flat in the second half is where all of our EPS growth is coming from why is that well, we're purposely moving marketing spend from the second half the first half because we have one of the biggest new product introductions and a major categories in our history and bearings and I'll walk you through what each one of those are but we're excited about that we're going to go ahead and spend the money upfront.

Now, we do have some timing within our EPS outlook. So the first half.

Essentially flat in the second half is where all of our EPS growth is coming from why is that well, we're purposely moving marketing spend from the second half to the first half because we have one of the biggest new product introductions and a major categories in our history and berries and I'll walk you through what each one of those are but we're excited about that we're going to go ahead and spend the money upfront.

Rick: Their breath and hero recent acquisitions are fast growing and then international growth has accelerated to 8%.

To drive trial drive awareness to do that and then the second point is we had a great first half of 2023. The first half of last year is a strong comp to compare against we had 11% EPS growth last year in the first half.

Rick: On the gross margin side again productivity is outpacing inflation.

Rick: We have higher margin acquisitions on the marketing side and server is going to talk about it we're getting good rois on our spend.

Rick: That transition is helping and then we have higher dollars as we grow the top line.

How do you think about or how do we think about EPS growth.

Rick: And then SG&A, we're putting in systems all over the world, we've put into China ERP system, we're putting in an ERP system for our.

8% to 10% if we strip out the Mega lack again, we're not excluding mega lack. It's included these are the shutdown cost. These are the stranded costs. So adjusted EPS growth before Mega lack is 8% to 10% <unk> impact as well.

How do you think about how do we think about EPS growth.

8% to 10% if we strip out the <unk> again, we're not excluding <unk> included these are the shutdown cost. These are the stranded costs. So adjusted EPS growth before Mega lack is 8% to 10% megawatt impact as a 1% drag that's how we get to seven to nine if you think about the tax rate. That's also a headwind of about 2%.

Rick: For our Gmg business based out of Europe. All of these investments are embedded in our numbers.

Rick: We also are building capabilities around the world regulatory back office to support this fast growing business called Gmg within our international.

1% drag that's how we get to seven to nine if you think about the tax rate. That's also a headwind of about 2%.

For operating performance. So we're really strong operating performance is what I wouldn't want to leave you with for 2024.

Rick: And then analytics and e-commerce those are capabilities, we want to build.

For operating performance. So we're really strong operating performance is what I wouldn't want to leave you with for 2024.

Okay move into 2024, so I just talked to the new evergreen model. The outlook is actually a step up from that.

Let's look at our track record 10 years of growth last year net sales growth grew nine 2% one of our strongest years ever and we're going to have 4% to 5% growth on top of that growth in.

Let's look at our track record 10 years of growth last year net sales growth grew nine 2% one of our strongest years ever and we're going to have 4% to 5% growth on top of that growth.

Rick: The outlook is 45% on the top line, it's 4% to 5% organically, excluding mega lack excluding currency.

In 2024.

Rick: Gross margins up 50 to 75 basis points, so to step up again from our evergreen model.

Organically long track record again of above 4%.

In 2024.

So the median for 'twenty 'twenty four is four 5% or the average.

Rick: SG&A as leverage operating profit expansion is higher than our evergreen model 60 to 80 tax rate's, a little bit higher and EPS growth of 7% to 9%.

Organically long track record again of above 4%.

And we're going to.

So the median for 'twenty 'twenty four is four 5% or the average.

So that's better than a 10 year average better than our new evergreen model, so that four 5% or so above the five three is again growth on top of growth.

And we're going to.

Rick: Our cash from operations was 1 billion plus.

So that's better than our 10 year average better than our new evergreen model, so that four 5% or so above the $5 threes again growth on top of growth.

Rick: Now, we do have some timing within our EPS outlook. So the first half.

And it matters, where that's coming from.

Rick: Essentially flat in the second half is where all of our EPS growth is coming from why is that well, we're purposely moving marketing spend from the second half the first half because we have one of the biggest new product introductions and a major categories in our history and berries and I'll walk you through what each one of those are but we're excited about that we're going to go ahead and spend the money upfront.

In years past before all the Covid noise and all the pricing and the inflation we are.

And it matters, where that's coming from.

In years past before all the Covid noise and all the pricing and the inflation. We are we're a volume driven company.

We're a volume driven company.

Hundred percent of our organic growth was really from volume. Many companies right now are talking about the return to volume we've already returned to volume the last two quarters consecutively. We have volume growth, we expect that in 2024 as well about two thirds of our growth we expect to be volume driven growth in 2024.

Rick: To drive trial drive awareness to do that and then the second point is we had a great first half of 2023. The first half of last year is a strong comp to compare against we had 11% EPS growth last year in the first half.

On gross margin.

This is a slide to spend some time on so we had a fantastic gross margin expansion of 220 basis points in 2023.

On gross margin I know this is a slide to spend some time on so we had a fantastic gross margin expansion of 220 basis points in 2023.

How do you think about how do we think about EPS growth.

That got us to 44, 1%.

Rick: 8% to 10% if we strip out the Mega lack again, we're not excluding mega lack. It's included these are the shutdown cost. These are the stranded costs. So adjusted EPS growth before Mega lack is 8% to 10% <unk> impact as well.

Eyes are on our high of 45 five back before cover the 2019 number.

That got us to 44, 1% our eyes are on our high of 45 five back before Covid 2019 number.

If we hit the middle of our 50 to 75 basis point outlook.

And then that means we have 80 bps remaining to get back to that kind of pre COVID-19 number now we also have tailwind from from acquisitions that we didn't have back then.

1% drag that's how we get to seven to nine if you think about the tax rate. That's also a headwind of about 2%.

If we hit.

The middle of our 50 to 75 basis point outlook.

And then that means we have 80 bps remaining to get back to that kind of pre COVID-19 number now we also have tailwind from from acquisitions that we didn't have back then.

Rick: For operating performance. So we're really strong operating performance is what I wouldn't want to leave you with for 2024.

But our eyes are firmly on recovering back to $45 five and Thats also why we have confidence and raised our gross margin outlook for the next few.

But our eyes are firmly on recovering back to 45, five and Thats also why we have confidence and raised our gross margin outlook for the next few.

Rick: Let's look at our track record 10 years of growth last year net sales growth grew nine 2% one of our strongest years ever and we're going to have 4% to 5% growth on top of that growth in.

For the future.

Here's the bridge. So this is always the detailed that folks want to see in 2023 price volume mix as expected very strong tailwind from price in 2024, not as much we have some carryover price, but it's not.

For the future.

In 2024.

Rick: Organically long track record again of above 4%.

Rick: So the median for 'twenty 'twenty four is four 5% or the average.

The driver manufacturing cost for a headwind of 240 basis points last year, we expect that to be closer to down 130, <unk> hundred 40, <unk> about $85 million.

And we're going to.

The driver manufacturing costs for a headwind of 240 basis points last year, and we expect that to be closer to down 130 down 140, <unk> about $85 million.

Rick: So that's better than our 10 year average better than our new evergreen model. So it at four 5% or so above the five three is again growth on top of growth.

It was about 125 in 2023.

Acquisition is a tailwind in 2023, we don't expect to have acquisitions in 2024 from carryover impact on gross margin.

And it matters, where that's coming from.

It was about $1 25 in 2023.

Rick: In years past before all the Covid noise and all the pricing and the inflation we are.

Acquisition is a tailwind in 2023 we don't expect to have acquisitions in 2024 from carryover impact on gross margin.

Productivity programs up 150 that was one of our best years ever it was our best year ever for our.

Rick: We're a volume driven company.

Rick: Hundred percent of our organic growth was really from volume. Many companies right now are talking about the return to volume we've already returned to volume the last two quarters consecutively. We have volume growth, we expect that in 2024 as well about two thirds of our growth we expect to be volume driven growth in 2024.

Productivity programs up 150 that was one of our best years ever it was our best year ever for our.

For our productivity program and then in 2024, we also expect to have a really strong productivity program.

Gross margin changed would then be 220 in 'twenty three and then 50 to 75 in 2024.

Gross margin change would then be 220 in 'twenty three and then 50 to 75 in 2024.

I'll spend a minute on manufacturing costs.

Rick: On gross margin. This is a slide to spend some time on so we had a fantastic gross margin expansion of 220 basis points in 2023.

Inflation is still there I would say it's moderating so maybe a few months ago I would've said.

I'll spend a minute on manufacturing costs.

Inflation is still there I would say it's moderating so maybe a few months ago I would have said.

Inflation I would say, it's moderate inflation and the nuance in 2024 is a small piece of that is commodity related and whether it's.

Rick: That got us to 44, 1% our eyes are on our high of $45 five back before Covid 2019 number.

Inflation I would say, it's moderate inflation and the nuance in 'twenty 'twenty four is a small piece of that is commodity related and whether it's.

Resin prices or natural gas, our sugar those costs were up but the bigger part for church <unk> Dwight is some of the costs and the investments we're making in capacity. So the new depreciation on the capital that we've put in.

Rick: If we hit the middle of our 50 to 75 basis point outlook.

Rick: And then that means we have 80 bps remaining to get back to that kind of pre COVID-19 number now we also have tailwind from from acquisitions that we didn't have back then.

Resin prices or natural gas our sugar those costs are up but the bigger part for church <unk> Dwight is some of the costs and investments we're making in capacity. So the new depreciation on the capital that we've put in.

We added a new distribution center, we're outsourcing international supply in some cases until we can bring it in house.

Rick: But our eyes are firmly on recovering back to $45 five and Thats also why we have confidence and raised our gross margin outlook for the next few.

Our new distribution center, we're outsourcing international supply in some cases until we can bring it in house we.

We have higher third party manufacturing costs and higher labor costs. So that's the bigger makeup of the pie largely capacity driven as we grow into it.

Rick: For the future.

Rick: Here's the bridge. So this is always the detail that.

We have higher third party manufacturing costs and higher labor costs. So that's the bigger makeup of the pie largely capacity driven as we grow into it.

Rick: When I say 2023 price volume mix as expected very strong tailwind from price in 2024, not as much we have some carryover price, but it's not.

Moving to marketing, so, 11% with 4% to 5% net sales growth.

This is an investment of 35 or so million dollars. So this is real incremental dollars year over year to help drive the <unk>.

Rick: The driver manufacturing cost for a headwind of 240 basis points last year, and we expect that to be closer to down 130 down 140, <unk> about $85 million.

This is an investment of $35 $7 million. So this is real incremental dollars year over year to help drive the <unk>.

Topline and share.

SG&A, we continue to believe we're going to leverage SG&A and I walked through even in the future evergreen model leverage of 25 basis points to zero. So those investments behind international E Com are key.

Topline and share.

Rick: It was about $1 25 in 2023.

SG&A and continue to believe we're going to leverage SG&A and I walked through even in the future evergreen model leverage of 25 basis points to zero. So those investments behind international E Com are key.

Rick: Acquisition is a tailwind in 2023 we don't expect to have acquisitions in 2024 from carryover impact on gross margin.

And all of that leads to great consistent strong EPS growth over time double digit in many cases are high single digit and we have a great outlook in 2024.

Rick: Productivity programs up 150 that was one of our best years ever it was our best year ever for our.

And all of that leads to great consistent strong EPS growth over time double digit in many cases are high single digit and we have a great outlook in 2024.

Turning to cash flow. So cash flow is what we believe drives value and our free cash flow conversion, which is.

Rick: For our productivity program and then two.

Rick: 2024, we also expect to have a really strong productivity program.

Turning to cash flow. So cash flow is what we believe drives value and our free cash flow conversion, which is.

Free cash flow divided by net income is industry, leading so for 10 years, our average was 119% and our recent history because were making huge capital investments on Capex that number is down but still right in line with industry or maybe even a little bit better, but we expect that to continue to inflict.

Rick: Gross margin change would then be 220 in 'twenty three and then 50 to 75 in 2024.

Free cash flow divided by net income is industry, leading so for 10 years, our average was 119% and our recent history because were making huge capital investments on capex that numbers down, but still right in line with industry or maybe even a little bit better, but we expect that to continue to inflict.

Speaker Change: I'll spend a minute on manufacturing costs.

Inflation is still there I would say it's moderating so maybe a few months ago I would've said.

Speaker Change: Inflation I would say, it's moderate inflation and the nuance in 2024 is a small piece of that is commodity related.

Positively.

Our cash conversion cycle, which has been a track record of church <unk> Dwight we've taken our cash conversion cycle from 52 days down into the Twenty's, we had a spike up this year largely because of acquisitions, but again, that's going to work its way back down over time.

Positively.

Speaker Change: Whether it's.

Our cash conversion cycle was has been a track record of church <unk> Dwight we've taken our cash conversion cycle from 52 days down into the Twenty's, we had a spike up this year largely because of acquisitions, but again, that's going to work its way back down over time.

Speaker Change: Resin prices or natural gas, our sugar those costs were up but the bigger part for church <unk> Dwight is some of the costs and the investments we're making in capacity. So the new depreciation on the capital that we've put in.

Strong balance sheet.

One of the strongest position we've ever been and so we.

Speaker Change: Our new distribution center, we're outsourcing international supply in some cases until we can bring it in house.

Strong balance sheet.

We ended this year at one eight times Levered, we expect to end next year closer to one six times.

One of the strongest position we've ever been and so.

We ended this year at one eight times Levered, we expect to end next year closer to one six times.

Speaker Change: Higher third party manufacturing costs and higher labor costs. So that's the bigger makeup of the pie largely capacity driven as we grow into it.

And this chart is updated so even from a few months ago back in September we presented at Barclays. Our financial capacity is about 20% higher and why why is that because we are generating even more EBITDA. It's because we are generating and paying down cash at such a rate we are paying down debt is.

And this chart is updated so even from a few months ago back in September we presented a Barclays. Our financial capacity is about 20% higher and why why is that because we're generating even more EBITDA. It's because we are generating and paying down cash at such a rate we are paying down debt as well.

Speaker Change: Moving to marketing so.

Speaker Change: 1% with 4% to 5% net sales growth.

Speaker Change: As an investment of $35 $7 million. So this is real incremental dollars year over year to help drive the topline and share.

Well and so those things are just again virtuous cycles, when we look at doing acquisitions and deals to grow our business.

And so those things are just again virtuous cycles, when we look at doing acquisitions and deals to grow our business.

So number one far and away for for capital allocation is M&A and we're laser focused on M&A.

So number one far and away for capital allocation is M&A and we're laser focused on M&A.

Number two is capex for organic growth in our good to great program number three is new products and before debt reduction.

And all of that leads to great consistent strong EPS growth over time double digit in many cases, our high single digit and we have a great outlook in 2024.

Number two is capex for organic growth in our good to great program number three is new products and before debt reduction.

And number five return cash to shareholders.

We're not a capital intensive company.

Speaker Change: Turning to cash flow so cash flow is what we believe drives value.

And number five returning cash to shareholders.

We spiked up in 2022, three on the way down in 2024, and we believe it will be at 2% of sales back to normal in 2025.

We're not a capital intensive company, we've we spiked up in 2022 three on the way down in 2024, and we believe it will be at 2% of sales back to normal in 2025.

Speaker Change: And our free cash flow conversion, which is.

Speaker Change: Free cash flow divided by net income is industry, leading so for 10 years, our average was 119% and our recent history because were making huge capital investments on Capex that number is down but still right in line with industry or maybe even a little bit better, but we expect that to continue to inflict.

And then finally, we have a we announced this morning. The press release, we have a 4% dividend increase right in line with our capital allocation strategy and I'll turn it over to Barry.

And then finally, we have we announced this morning. The press release, we have a 4% dividend increase right in line with our.

Barry to talk about the domestic division and new products. Thank you.

Capital allocation strategy, and I'll turn it over to <unk>.

Barry to talk about the domestic division and new products. Thank you.

Speaker Change: Positively.

Afternoon, everybody I think Rick likes when I go right. After the dividend slide to remind me I've got an obligation to keep it going so 123 year strong and some more good quarters ahead, so I'm very Bruno I'm responsible for our U S business I'm going to talk a little bit about our categories. The U S consumer and what I think has some really great <unk>.

Speaker Change: Our cash conversion cycle was has been a track record of church <unk> Dwight we've taken our cash conversion cycle from 52 days down into the Twenty's, we had a spike up this year largely because of acquisitions, but again, that's going to work its way back down over time.

Afternoon, everybody I think Rick likes when I go right. After the dividend slide to remind me I've got an obligation to keep it going so 123 year strong and some more good quarters ahead, so I'm very Bruno I'm responsible for our U S business I'm going to talk a little bit about our category is the U S consumer and what I think has some really great <unk>.

Speaker Change: Strong balance sheet.

<unk> that we've got in each of our key categories going forward.

One of the strongest position we've ever been and so.

Im going to start with a slide I left you with last year, which was we've got great confidence in our future. If you look at the categories in which we compete and I'll show you a look at the old power brand in the new power brand categories to break them out for you where not only leaders in those categories. We're driving growth in those categories. We thrive in difficult environments, you've seen our value percentage of our portfolio I'll take you through how our Harmon.

Speaker Change: We ended this year at one eight times Levered, we expect to end next year closer to one six times.

Patient that we've got in each of our key categories going forward.

I'm going to start with a slide I left you with last year, which was we've got great confidence in our future. If you look at the categories in which we compete and I'll show you a look at the old power brand in the new power brand categories to break them out for you where not only leaders in those categories. We're driving growth in those categories. We thrive in difficult environments, you've seen our value percentage of our portfolio I'll take you through how on a harm.

Speaker Change: And this chart is updated so even from a few months ago back in September we presented a Barclays. Our financial capacity is about 20% higher and why why is that because we're generating even more EBITDA. It's because we are generating and paying down cash at such a rate we are paying down debt as well.

Hammer in particular, we bring consumers and in tough times, we keep them, we trade them up.

And then acquisitions have a ton of room to run hero and thorough breath of then absolutely homeruns.

Hammer in particular, we bring consumers and in tough times, we keep them, we trade them up.

Speaker Change: And so those things are just again virtuous cycles, when we look at doing acquisitions and deals to grow our business.

And they are in the early innings of that story is still and I'll show you what that looks like.

And then acquisitions have a ton of room to run hero and thorough breath of then absolutely homeruns.

So this slide was getting a little complicated right. This is our old 14 power brand. Prior look 17 categories as we got into new categories. The chart that longer and longer you can see which in 'twenty. Three we're growing mid single digit growth high single digit growth pretty strong, but when you look at the new look of our seven power brands and these compete and eight <unk>.

And they are in the early innings of that story is still and I'll show you what that looks like.

Speaker Change: So number one far and away for capital allocation M&A and we're laser focused on M&A.

Speaker Change: Number two is capex for organic growth in our good to great program number three is new products and before debt reduction.

Speaker Change: And number five returning cash to shareholders.

Speaker Change: We're not a capital intensive company with.

Categories, just as reminder, arm <unk> hammer competes in laundry and litter of course, seven brands eight categories incredibly strong growth rate of 11% in 'twenty, 118% in 'twenty, two and then 16, 9% on top of that and we're driving a lot of that growth I'll show you that in just a little bit but these are exciting healthy categories to be in.

Speaker Change: We spiked up in 2022, three on the way down in 2024, and we believe it will be at 2% of sales back to normal in 2025.

Categories, just as a reminder, arm <unk> hammer compete in laundry and litter of course, seven brands eight categories incredibly strong growth rate of 11% in 'twenty, 118% in 'twenty, two and then 16, 9% on top of that and we're driving a lot of that growth I'll show you that in just a little bit but these are exciting healthy categories to be in.

Speaker Change: And then finally, we have a we announced this morning. The press release, we have a 4% dividend increase right in line with our.

Speaker Change: Capital allocation strategy, and I'll turn it over to <unk>.

Matt talked about these a little bit too so our portfolio has changed a little over time, so we're 63% premium 37% value still incredibly valuable to us in tough economic times as we bring consumers in and low private label exposure of 12%.

Speaker Change: Barry to talk about the domestic division and new products. Thank you.

Barry: Afternoon, everybody.

Barry: Rick likes when I go right. After the dividend slide to remind me I've got an obligation to keep it going so 123 year strong and some more good quarters ahead, so I'm very Bruno I'm responsible for our U S business I'm going to talk a little bit about our category is the U S consumer and what I think has some really great innovation that we've got in each of our key categories going forward I'm.

And then the third reason for confidence about these new acquisitions right. When we met with you over the last two years talking about Sarah breath and hero, it's been about our ability to build distribution to bring these to more and more consumers and you can see the success that we're having thorough breath up 57% in terms of distribution last year and lots of room to run to catch up with the big guys and hero is another great story is.

And then the third reason for confidence is about these new acquisitions right. When we met with you over the last two years talking about Sarah breath and hero, it's been about our ability to build distribution to bring these to more and more consumers and you can see the success that we're having thorough breath up 57% in terms of distribution last year and lots of room to run to catch up with the big guys and hero is another great story.

Barry: I'm going to start with the slide I left you with last year, which was we've got great confidence in our future. If you look at the categories in which we compete and I'll show you will look at the old power brand in the new power brand categories to break them out for you where not only leaders in those categories. We're driving growth in those categories. We thrive in difficult environments, you've seen our value percentage of our portfolio I'll take you through how on a harm.

Well up 200% last year and tons of room to keep growing and that's just in Mueller. That's in measured channels. If you look at it from a numerator standpoint mouthwash is at 63% of U S households today.

Well up 200% last year and tons of room to keep growing and Thats just in Mueller. That's in measured channels. If you look at it from a numerator standpoint mouthwash is at 63% of U S households today.

<unk> only and seven and then you can see the growth, we're making from one to two to three to four to seven great growth, but there's a ton of households, where we're not in just yet and so there's room to run there and heroes of the same story here almost didn't exist five years ago with 1.2% household penetration up to six 4% today and you can see the rate of growth accelerating so whether you measure.

Barry: Hammer in particular, we bring consumers and in tough times, we keep them, we trade them up.

<unk> only and seven and you can see the growth, we're making from one to two to three to four to seven great growth, but there's a ton of households, where we're not in just yet and so there is room to run there and heroes. The same story here almost didn't exist five years ago with a 0.2% household penetration up to six 4% today and you can see the rate of growth accelerating so whether you measure.

Barry: And then acquisitions have a ton of room to run hero and thorough breath of then absolutely homeruns.

Barry: And they are in the early innings of that story is still and I'll show you what that looks like.

Barry: So this slide was getting a little complicated right. This is our old 14 power brand. Prior look 17 categories as we got into new categories. The chart that longer and longer you can see which in 'twenty. Three we're growing mid single digit growth high single digit growth pretty strong, but when you look at the new look of our seven power brands and these compete and eight <unk>.

Hello are you measure numerator households tons of room to run on acquisitions.

So let's look at some category and consumer dynamics now we're going to start with our largest brand arm <unk> hammer and one of our largest categories fabric care.

Hello are you measure numerator households tons of room to run on acquisitions.

So let's look at some category and consumer dynamics now we're going to start with our largest brand arm <unk> hammer and one of our largest categories fabric care.

And the look back is a pretty compelling story of growth from a five share to an all time share high 14, 4% last year on top of an all time share height in the prior year and all of that growth has been driven as we've talked with you about being anchored in the value tier of the laundry detergent category, that's about 30% of the category, but I'm happy to be talking today.

Barry: Categories, just as reminder, arm <unk> hammer compete in laundry and litter of course, seven brands eight categories incredibly strong growth rate of 11% in 'twenty, 118% in 'twenty, two and then 16, 9% on top of that and we're driving a lot of that growth I'll show you that in just a little bit but these are exciting healthy categories to be in.

Arm <unk> hammer deep clean our most powerful formula and our first entry into the mid tier segment and to give you. Some idea that's about 27% of the category. The mid tier we haven't played there today.

About arm <unk> hammer deep clean our most powerful formula and our first entry into the mid tier segment and to give you. Some idea that's about 27% of the category. The mid tier we haven't played there today and we're thrilled about this new formula that's going to be launching in Q1 in 2024 and.

And we're thrilled about this new formula that's going to be launching in Q1 in 2024 and.

And just to break it out for you. So you can see our architecture, we've got our core arm <unk> hammer products. Those are our better products arm <unk> Hammer, plus oxiclean and arm <unk> Hammer is good arm <unk> Hammer, plus oxiclean, better and now with deep clean our best Formula and the best anchor in our architecture and we are telling consumers about this new formula is starting very soon and I'll play one of the spots we call. It dig deep to show you how we're bringing.

Barry: And then the third reason for confidence is about these new acquisitions right. When we met with you over the last two years talking about Sarah breath and hero, it's been about our ability to build distribution to bring these to more and more consumers and you can see the success that we're having thorough breath up 57% in terms of distribution last year and lots of room to run to catch up with the big guys and hero is another great story is.

And just to break it out for you. So you can see our architecture, we've got our core arm <unk> hammer products. Those are our better products arm <unk> Hammer, plus oxiclean and arm <unk> Hammer is good arm <unk> Hammer, plus oxiclean, better and now with deep clean our best Formula and the best anchor in our architecture and we are telling consumers about this new formulas, starting very soon and I'll tell you one of the spots we call. It dig deep to show you how we're bringing.

Awareness to the category and the brand.

Well up 200% last year and tons of room to keep growing and Thats just in Mueller. That's in measured channels. If you look at it from a numerator standpoint.

Okay.

Thanks.

Paul.

Awareness to the category and the brand.

Stent graft.

Andre.

Paul.

Barry: Washington, 63% of U S households today.

Paul.

Yes.

Okay.

Sure.

Jake on the everyday derrington stink lingers deeper than you think now clean deep with new arm <unk> hammer deep clean laundry detergent, our most powerful formula yet penetrate deep into buybacks and get to the bottom on order in that arm <unk> hammer deep cleaning more power to you.

Sure.

Yes.

Okay.

Keith on the everyday derrington stink lingers deeper than you think now clean deep with new arm <unk> hammer deep clean laundry detergent.

Our formula yet to penetrate deep into buybacks.

Barry: Hello are you measure numerator households tons of room to run on acquisitions.

So that's just one way we are spending some of the incremental marketing that Rick talked about earlier, but fabric care. So important to us we're not done with deep clean. We're also happy to be talking about arm <unk> hammer power sheets laundry sheets, not dryer sheets, where the first mainstream brand to bring this form new form of unit dose to market. We launched it in Q4 of last year online. We click quickly grew to the number two.

I'm a believer in that arm <unk> hammer deep cleaning more power to you.

Barry: So let's look at some category and consumer dynamics now we're going to start with our largest brand arm <unk> hammer and one of our largest categories fabric care.

Barry: And the look back is a pretty compelling story of growth from a five share to an all time share high 14, 4% last year on top of an all time share height in the prior year and all of that growth has been driven as we've talked with you about being anchored in the value tier of the laundry detergent category, that's about 30% of the category, but I'm happy to be talking today.

Detergent sheet on Amazon and we're expanding it into bricks and mortar. This year, it's a great new form of unit dose and Theres a lot of education that needs to take place when you've got a new form so let US show you. How we are using one of our army of Influencers to educate consumers about this great new form of unit dose, let's play the spot.

<unk> detergent sheet on Amazon and we're expanding it into bricks and mortar. This year, it's a great new form of unit dose and Theres a lot of education that needs to take place when you've got a new form so let US show you how we're using one of our army of Influencers to educate consumers about this great new form of unit dose, let's play the spot.

As a family of five the amount of laundry recreate is Ann Cairns partnered with arm <unk> hammer to share their brand new power seats that have been a total game changer in our launch around when I say power sheet I'm not talking about dryer sheets people. These are laundry detergent shape, that's right. It's a brand new formal laundry detergent from arm <unk> Hammer and it's made with the same type of <unk>.

As a family of five the amount of laundry recreate is Ann Cairns partnered with arm <unk> hammer to share their brand new power sheets that have been a total game changer in our laundry around when I say power sheet I'm talking about dry people need our laundry detergent shape. That's right. It's a brand new pharma laundry detergent from arm <unk> Hammer and it's made with the same type of power.

Barry: And just to break it out for you. So you can see our architecture, we've got our core arm <unk> hammer products. Those are our better products arm <unk> Hammer, plus oxiclean and arm <unk> Hammer is good arm <unk> Hammer, plus oxiclean, better and now with deep clean our best Formula and the best anchor in our architecture and we are telling consumers about this new formulas, starting very soon and I'll tell you one of the spots we call. It dig deep to show you how we're bringing.

Powerful cleaning ingredients is arm <unk> hammer liquid laundry detergent achieved fully and rapidly dissolve and leisure clothes smelling incredible freshman and.

Cleaning ingredients is arm <unk> hammer liquid laundry detergent.

Hmm Repower sheets are super convenient to you just have the sheet in your washer and euro.

<unk> fully and rapidly dissolve and leave your clothes smelling incredible with a freshman and stance.

Barry: Awareness to the category and the brand.

Jeff No spills no measuring gave yourself the trusted and fresh clean of arm <unk> hammer with the new power sheet shop, now with the link and my bias as a family of five the amount of laundry.

Hammer powertrains are super convenient to you just have the sheet in your washer and euro.

Okay.

Barry: Veeva.

Barry: Paul.

Barry: Yes.

Barry: Dan.

No spills no measuring gave yourself the trusted and breast clean of arm <unk> hammer with the new power sheet shop, now with the link and mobile as a family of five the amount of laundry.

Barry: Thank you.

Barry: Yes.

Barry: Okay.

Six months is enough.

Barry: Keith on the everyday derrington stink lingers deeper than you think now clean deep with new arm <unk> hammer deep clean laundry detergent, our most powerful formula yet penetrate deep into buybacks and get to the <unk>.

You could tell she is excited about it we are too I just dropped myself at college, a few weeks ago in laundry sheets were one of the first things that I made sure to pack for them far more convenient the unit dose for sure and then a liquid for sure.

I think once there's enough.

So staying with arm <unk> hammer moving over to cat litter now another important multibillion dollar category for US you can see that the categories healthy rate was up 11% last year, it's been a consistent grower for a long time during COVID-19. There were increased pet adoptions and then there were multiple rounds of price increases of 11, 7% growth arm <unk> hammer contributing to that growth up 11, 8% last year and when Youre growing.

Barry: I'm a believer in that arm <unk> hammer deep cleaning more power to you.

Staying with arm <unk> hammer moving over to Cat litter now another important multibillion dollar category for US you can see that the categories healthy rate was up 11% last year, it's been a consistent grower for a long time during COVID-19. There were increased pet adoptions and then there were multiple rounds of price increases of 11, 7% growth arm <unk> hammer contributing to that growth up 11, 8% last year when youre growing fast.

Barry: So that's just one way we are spending some of the incremental marketing that Rick talked about earlier, but fabric care. So important to us we're not done with deep clean. We're also happy to be talking about arm <unk> hammer power sheets laundry sheets, not dryer sheets, where the first mainstream brand to bring this form new form of unit dose to market. We launched it in Q4 of last year online. We click quickly grew to the number two.

Faster than category Youre, gaining share of course, we're up to a $24 eight share almost a 25 share of the category and you can see we've been a consistent grow over time from 23, six up to 24, eight and one way that we're keeping that growth going is through new products arm <unk> Hammer hard ball is what we're talking about today, we're changing the lightweight litter experience, we think it's lightweight perfected.

And category Youre, gaining share of course, we were up to a $24 eight share almost a 25 share of the category and you can see we've been a consistent grow over time from 23, six up to 24, eight and one way that we're keeping that growth going is through new products arm <unk> Hammer hard ball is what we're talking about today, we're changing the lightweight litter experience, we think it's lightweight perfected.

Barry: Detergent sheet on Amazon and we're expanding it into bricks and mortar. This year, it's a great new form of unit dose and Theres a lot of education that needs to take place when you've got a new form so let US show you. How we are using one of our army of Influencers to educate consumers about this great new form of unit dose, let's play the spot.

Ultra compact strong clumps, 60% lighter than our base product today plant based and it was one of the strongest performing literate new product launches at Walmart last year. So were expanding internationally. This year and why are we so excited about lightweight well today, we've just got a for sure in the lightweight sub segment versus our 25 share overall so get.

Speaker Change: As a family of five the amount of laundry recreate is Ann can partnered with arm <unk> hammer to share their brand new power seems to have been a total game changer in our laundry around when I say power sheet I'm talking about dry people need our laundry detergent shape. That's right. It's a brand new pharma laundry detergent from arm <unk> Hammer and it's made with the same type of powerful.

Altra compact strong clumps, 60% lighter than our based product today plant based and it was one of the strongest performing literate new product launches at Walmart last year. So were expanding internationally. This year and why are we still excited about lightweight well today, we've just got a for sure in the lightweight sub segment versus our 25 share overall, so getting our.

Our fair share equals $100 million opportunity in retail shelves. So we're squarely focused on growing and gaining share in this important sub segment of the category.

Speaker Change: Cleaning ingredients is arm <unk> hammer liquid laundry detergent achieved polian rapidly dissolve and leisure clothes smelling incredible with a fresh linen.

Fair share equals $100 million opportunity in retail shelves. So we're squarely focused on growing and gaining share in this important sub segment of the category.

And we'll share how we're doing that via piece of advertising right now, which is kats watching humans on the internet so a little bit of a different play let's play the spot.

Hmm Repower Super Super convenient to use just toss issued in your washer and Euro no drips, no spills no measuring give yourself the trusted and breast clean of arm <unk> hammer with the new power sheet shop, now with a link and mobile as a family of five the amount of laundry.

And we'll share how we're doing that via piece of advertising right now, which is kats watching humans on the internet so a little bit of a different play let's play the spot.

Alright.

How long is it.

No.

You got to check this out.

Hey.

How hard is it.

Amazing I'm obsessed with humans on the Internet, it's the virtually indestructible club hardball lightweight litter.

Okay.

Okay, you got to check this out.

Speaker Change: Six months is enough.

Amazing I'm obsessed with humans on the Internet, it's the virtually indestructible club hardball lightweight litter.

Speaker Change: You could tell she is excited about it we are too I just dropped myself at college, a few weeks ago in laundry sheets were one of the first things that I made sure to pack for them far more convenient the unit dose for sure and then a liquid for sure.

I swear we test all of our advertising and our cat obsessed consumers love. It. So it is helping to bring awareness to this this great new product.

Alright, switching gears to something slightly different dry shampoo batiste dry shampoo has been an absolute care categories healthy up 15, 6% last year as the leader in the category were up 16% a combination of new products and advertising is absolutely driven continued growth for us and you can see the share story is the same here, whether we're talking about litter or <unk>.

Speaker Change: So staying with arm <unk> hammer moving over to cat litter now another important multibillion dollar category for US you can see that the categories healthy rate was up 11% last year, it's been a consistent grower for a long time during COVID-19. There were increased pet adoptions and then there were multiple rounds of price increases of 11, 7% growth arm <unk> hammer contributing to that growth up 11, 8% last year. When you are growing.

Alright, switching gears to something slightly different dry shampoo batiste dry shampoo has been on an absolute tear categories healthy up 15, 6% last year as the leader in the category were up 16% a combination of new products and advertising is absolutely driven continued growth for us and you can see the share story is the same here, whether we're talking about litter.

Debris care or keast, we're hitting all time share highest rate of 46, 3% last year were up nine share points in the last few years. So incredibly strong growth continues here and again. The theme is the same we're keeping it going with new products that were supporting by advertising now we're talking about the keast sweat and touch activated our newest innovation in dry shampoo they used.

Speaker Change: Faster than category Youre, gaining share of course, we were up to a $24 eight share almost a 25 share of the category and you can see we've been a consistent grow over time from 23, six up to 24, eight and one way that we're keeping that growth going is through new products arm <unk> Hammer hard ball is what we're talking about today, we're changing the lightweight litter experience, we think it's lightweight perfected.

Our fabric care or keast, we're hitting all time share highest rate of 46, 3% last year were up nine share points in the last few years. So incredibly strong growth continues here and again. The theme is the same we're keeping at donlin with new products that were supporting by advertising now we're talking about batiste sweat and touch activated our newest innovation in dry shampoo.

Bursting bead technology that have been in skincare before but never in dry shampoo. So they drop they offer a burst of fragrance with every touch a drop of sweat for up to 24 hours of freshness. Those are launching starting now in Q1, both forms and we think theyre pretty futuristic so we've been and we've engaged some help from the future to tell the story about this new product let's play the.

Ultra compact strong clumps, 60% lighter than our based product today plant based and it was one of the strongest performing literate new product launches at Walmart last year. So were expanding internationally. This year and why are we so excited about lightweight well today, we've just got a for sure in the lightweight sub segment versus our 25 share overall so getting.

He was bursting bead technology that have been in skincare before but never in dry shampoo. So they dropped they offer a burst of fragrance with every touch a drop of sweat for up to 24 hours of freshness. Those are launching starting now in Q1, both forms and we think theyre pretty futuristic so we've been.

Bob.

Engaged some help from the future to tell the story about this new product, let's play the spot.

Our fair share equals $100 million opportunity in retail shelves. So we're squarely focused on growing and gaining share in this important sub segment of the category.

Well people live on Mars.

And Jerry here.

Well people live on Mars.

If the Keith touch and sweat activated dry shampoo and keeps our fresh all day long, it's about the invention ever.

Speaker Change: And we'll share how we're doing that via piece of advertising right now, which is kats watching humans on the internet so a little bit of a different play let's play the spot.

And Jerry here.

Expertise touch and sweat activated dry shampoo and keeps our fresh all day long, it's the best inventions ever.

Better than flat spread.

Speaker Change: Hey.

Speaker Change: Later.

Hap and Betty.

Speaker Change: Got it.

Yes.

Speaker Change: Okay, you got to check this out.

No.

Better than flat spread.

Speaker Change: Amazing I'm obsessed with humans on the Internet, it's the virtually indestructible club hardball lightweight litter.

Harper and Betty.

The future of hair care is here.

No.

So having a lot of fun with batiste as we approach a 50 share in the category and keep innovating and investing.

The future of hair care is here.

Speaker Change: I swear we test all of our advertising and our cat obsessed consumers love. It. So it is helping to bring awareness to this this great new product.

Vital fusion, so a slightly different story, when we talk about quite a fusion inviting vital.

A lot of fun with batiste as we approach a 50 share in the category and keep innovating and investing.

So once made vital fusion unique our gummy form our great taste, our wide assortment has now become really prevalent in the Vms category. There are over 60 vitamin players in the gummy form right now and Thats just in bricks and mortar there over 100, if you were to look at online players. So.

Vita fusion, so a slightly different story, when we talk about bright a fusion invited by defense.

Speaker Change: Alright, switching gears to something slightly different dry shampoo batiste dry shampoo has been on an absolute tear the category is healthy up 15, 6% last year as the leader in the category, we were up 16% a combination of new products and advertising is absolutely driven continued growth for us and you can see the share story is the same here, whether we're talking about litter or fat.

So once made via fusion unique our gummy form our great taste, our wide assortment has now become really prevalent in the Vms category. There are over 60 vitamin players in the gummy form right now and Thats just in bricks and mortar there are over 100, if you were to look at online players. So.

Ultimately there's been a share decline that you've seen has gone from 23 nine down to 12% the category. The gummy category has just about doubled during that time and you see a real inflection back in Q4 of 2019 in Q1 of 2020 during Covid, but obviously the share decline is going to stop and we're making the investments required to do just that because our consumers and our customers depend on us to do that.

Ultimately, there's been a share decline that you've seen it has gone from 23 nine down to 12% the category. The gummy category has just about doubled during that time and you see a real inflection back in Q4 of 2019 in Q1 of 2020 during Covid, but obviously the share decline is going to stop and we're making the investments required to do just that because our consumers and our customers depend on us to do that.

Speaker Change: <unk> care or <unk>, we're hitting all time share highs. We have 46, 3% last year were up nine share points in the last few years. So incredibly strong growth continues here and again. The theme is the same we're keeping it going with new products that were supporting by advertising now we're talking about batiste sweat and touch activated our newest innovation in dry shampoo they use <unk>.

We're the number one gummy player still at Amazon at Walmart at Walgreens and all the players you see listed here and we've got the highest household penetration in the gummy form.

Speaker Change: <unk> <unk> technology that have been in skincare before but never in dry shampoo. So they dropped they offer a burst of fragrance with every touch a drop of sweat for up to 24 hours of freshness. Those are launching starting now in Q1, both forms and we think theyre pretty futuristic so we've been and we've engaged some help from the future to tell the story about this new product, let's play the spa.

But we've got to turn it around and so we're investing in new product upgrades to our base formulas to new packaging that pop better at shelf, we're taking that in packaging into new displays to get off shelf display we've got new advertising to support it and we're launching a new forms beyond gummies and 2024 with the whole goal of stabilizing the business stopping that share decline and getting back to growth in.

Speaker Change: Got.

2025.

Now going to close or talking about just a few acquisition. So I'll start with Cerro breath and I think the service story is pretty well known.

Speaker Change: Well people live on Mars.

Speaker Change: And Jerry here.

<unk> 2025.

Now going to close out talking about just a few acquisition. So I'll start with Cerro breath and I think the service story is pretty well known.

If the Keith touch and sweat activated dry shampoo it keeps their fresh all day long, it's the best inventions ever.

85% growth last year, right incredible growth driving category growth of 12, 8%. So healthy category again, driven by <unk>, where we're now category leaders and you can see the share growth is absolutely playing out this isn't the total mouthwash category. We've gone from a two share to a 13 share and the alcohol free portion of the category, where we play.

85% growth last year, right incredible growth driving category growth of 12, 8%. So healthy category again, driven by <unk>, where we're now category leaders and you can see the share growth is absolutely playing out this isn't the total mouthwash category. We've gone from a two share two of 13 share and the alcohol free portion of the category, where we play.

Better than flat spread.

Speaker Change: Hap and Betty.

No.

Speaker Change: The future of hair care is here.

Speaker Change: A lot of fun with batiste as we approach a 50 share in the category and keep innovating and investing.

Six share category leader and actually a fun fact in January alcohol free for the first time is larger than the alcohol segment of the mouthwash category. So we are continuing to gain share and grow dramatically here and it's a similar story, we've got a great new products, introducing thorough breath deep clean our first alcohol free antiseptic wrench and etcetera.

Vital fusion, so a slightly different story, when we talk about quite a fusion inviting vitamins. So once made via fusion unique our gummy form our great taste. Our wide assortment has now become really prevalent in the Vms category. There are over 60 vitamin players in the gummy form right now and Thats just in bricks and mortar there are over 100, if you were to look at online players. So.

Six share category leader and actually a fun fact in January alcohol free for the first time is larger than the alcohol segment of the mouthwash category. So we are continuing to gain share and grow dramatically here and it's a similar story, we've got a great new products, introducing Sarah breath deep clean our first alcohol free antiseptic wrench in that yourself.

30% of the category today, we don't play there at all deep things are first worried there kills 99% of germs with no burn because theres no alcohol and it's dentist formulated launching in Q1 I don't have any great advertising to share with you here because the team just got back from La last night, but we'll have it for those of you we're going to be at Cagney as it supports our launch in Q1.

Speaker Change: Ultimately there's been a share decline that you've seen has gone from 23 nine down to 12% the category. The gummy category has just about doubled during that time and you see a real inflection back in Q4 of 2019 in Q1 of 2020 during Covid, but obviously the share decline is going to stop and we're making the investments required to do just that because our consumers and our customers depend on us to do.

And last but definitely not least is a little brand called hero and it's not so little anymore, you could see that it's absolutely driving category growth were up 72% last year driving category growth of 20% and.

Speaker Change: With that we're the number one gummy player still at Amazon at Walmart at Walgreens and all the players you see listed here and we've got the highest household penetration in the gummy form.

And when I say little it was a point to share five years ago right. Now, it's an 18 share all time category high end category leader in acne care and we're absolutely keeping it going with innovation in both our patch form we're a leader with over 50 share today and in acne adjacent skincare, where we're launching dissolve away our daily cleansing bonds. So patch innovation combined.

Speaker Change: But we've got to turn it around and so we're investing in new product upgrades to our base formulas to new packaging that pop better at shelf, we're taking that in packaging into new displays to get off shelf display we've got new advertising to support it and we are launching a new forms beyond gummies and 2024 with the whole goal of stabilizing the business stopping that share decline and getting back to growth in <unk>.

The skin care innovation equals lots of good growth yet to come.

Thousand 25.

Speaker Change: Now going to close or talking about just a few acquisition. So I'll start with Sarah breath, and I think the service story is pretty well known.

So let's talk about patches for just one more second because the form is still not all that well known in the U S. We've got the first National campaign called Temple meet your Mighty patch, bringing awareness to this great new form let's play that spot.

<unk> skin care innovation equals lots of good growth yet to come.

So let's talk about patches for just one more second because the form is still not all that well known in the U S. We've got the first national campaign called simple meet your Mighty patch, bringing awareness to this great new form let's play that spot.

Speaker Change: 85% growth last year, right incredible growth driving category growth of 12, 8%. So healthy category again, driven by <unk>, where we're now category leaders and you can see the share growth is absolutely playing out this isn't the total mouthwash category. We've gone from a two share to a 13 share and the alcohol free portion of the category, where we play.

So are you looking at me.

Or is it.

Don't do it you can't ignore me, but you know what you can do.

So are you looking at me.

Yes.

Don't do it you can't ignore me, but you can do.

Goodbye.

Perfect for loosening, you would definitely not regret it.

Speaker Change: Six share category leader and actually a fun fact in January alcohol free for the first time is larger than the alcohol segment of the mouthwash category. So we are continuing to gain share and grow dramatically here and it's a similar story, where we've got a great new products, introducing thorough breath deep clean our first alcohol free antiseptic wrench in <unk>.

Okay.

It's a perfect solution that you would definitely not regret it.

Still.

Yes.

You don't topic patch it mighty patch Pembroke patches reveal clear looking skin overnight painful meet your mighty patch.

Okay.

Yes.

Still.

Yes.

Without topic patch it mighty patch pamper patches reveal clear looking skin overnight temple meet your mighty patch.

Again, the form is new so we're pioneering in the <unk> and the industry launching the first new advertising nationally to bring awareness to this form.

Speaker Change: It's 30% of the category today, we don't play there at all deep things are first worry there kills 99% of germs with no burn because theres no alcohol and it's dentist formulated launching in Q1 I don't have any great advertising to share with you here because the team just got back from La last night, but we'll have it for those of you we're going to be at Cagney as it supports our launch in Q1.

The form is new so we're pioneering in the camp.

So the summary is great momentum right you heard about all timeshare highest in laundry and cat litter and batiste in mouthwash and in acne care, we've got great new products, we're supporting with more advertising.

The industry launching the first new advertising nationally to bring awareness to this form.

So the summary is great momentum right you heard about all timeshare highs in laundry and cat litter and batiste and mouthwash and in acne care, we've got great new products, we're supporting with more advertising.

And ultimately that brings us back to the algorithm that we're talking about earlier, you'll see we've raised our target to 3% for the U S and we're absolutely confident we can achieve that seven out of the last 10 years. Our U S business has been growing faster than 3% and we're absolutely committed to continuing to do that going forward. One way. We're doing that is via digital and E Commerce and so cirrhotic poker I was going to come up now to talk about how we.

Speaker Change: And last but definitely not least is a little brand called hero and it's not so little anymore, you could see that it's absolutely driving category growth were up 72% last year driving category growth of 20%.

And ultimately that brings us back to the algorithm that we're talking about earlier, you'll see we've raised our target to 3% for the U S and we're absolutely confident we can achieve that seven out of the last 10 years. Our U S business has been growing faster than 3% and we're absolutely committed to continuing to do that going forward. One way, we're doing that is via digital and ecommerce and social Ravi Poker I was going to come up now to talk about how.

Speaker Change: And when I say little it was a point to share five years ago right. Now, it's an 18 share all time category high end category leader in acne care and we're absolutely keeping it going with innovation in both our patch form we're a leader with over 50 share today and in acne adjacent skincare, where we're launching dissolve away our daily cleansing bonds. So patch innovation combined.

We're gonna keep that great growth going.

Thanks.

We're going to keep that great growth going thanks.

Instead of the book.

Digital growth officer here that doesn't Duane.

Alright.

Instead of the book.

Some quick context, setting because I know all of us are consumer goods the users, but not always fancy. Some geeky things might have been hearing so keep me honest I'd answer that until I wanted to say that we are not in the business of getting consumers to shop online. We are simply in the business of being where the consumer shops and that happens to be online more often.

And the digital growth officer here at Church <unk> Dwight.

And with skin care innovation equals lots of good growth yet to come.

Alright.

Some quick context, setting because I know all of us are consumers going to users, but not always fancy. Some geeky thing might have been hearing so keep me honest I'd answer that until I wanted to say that we are not in the business of getting consumers to shop online. We are simply in the business of being where the consumer shops and that happens to be online more often.

Speaker Change: So let's talk about patches for just one more second because the form is still not all that well known in the U S. We've got the first National campaign called Temple meet your Mighty patch, bringing awareness to this great new form let's play that spot.

But that said 70% of purchases in the U S. Specifically are digitally influenced what that means is every time you pick up that makes sense device out of pocket look up their iPad youre, making purchase decisions not just to buy online, but walk the store lookup of review online and that make that purchase that's what digitally influenced fooled.

Speaker Change: So are you looking at me.

Speaker Change: Zip.

Speaker Change: Don't you can't ignore me, but you know what you can do.

But that said 70% of purchases in the U S. Specifically are visibly influence what that means is every time you pick up that makes sense device out of your pocket look up their iPad youre, making purchase decisions not just to buy online, but walk the store lookup of review online and that make that purchase that's what digitally influenced fooled.

Speaker Change: Goodbye.

Speaker Change: Perfect and loosening you would definitely not regret it.

Speaker Change: Please.

Speaker Change: Yes.

Speaker Change: Phil.

Also we added <unk> 10, less commerce. So the consumer is very fluid between buying in brick and mortar store buying online or making that to an order to get the product delivered to the door, maybe a laundry ship.

Speaker Change: Yes.

Speaker Change: So don't puppet patch it mighty patch PEMCO patches reveal clear looking skin overnight pimple meet your mighty patch.

Also we added <unk> 10, or less commerce. So the consumer is very fluid between buying in brick and mortar store buying online or making that too an order from getting the product delivered to the norm maybe of laundry ship.

Speaker Change: The form is new so we're pioneering in the camp.

So it's important to segregate how the physical shelf is very different from the digital shelf. The physical shelf is set once a year, maybe twice a year and it is set and forget it but does it have the shelf like this time lapse video shows the intended by the second so our tactics really have to cater to the online world and a very different model.

Speaker Change: And the industry launching the first new advertising nationally to bring awareness to this form.

Speaker Change: So the summary is great momentum right you heard about all timeshare highest in laundry and cat litter and batiste in mouthwash and in acne care, we've got great new products, we're supporting with more advertising.

So it's important to segregate how the physical shelf is very different from the digital shelf. The physical shelf is set once a year, maybe twice a year and it is set and forget it but does it have a shelf like this time lapse video shows you Tien tsin by the second so our tactics really have to cater to the online world and a very different manner.

Speaker Change: And ultimately that brings us back to the algorithm that we're talking about earlier, you'll see we've raised our target to 3% for the U S and we're absolutely confident we can achieve that seven out of the last 10 years. Our U S business has been growing faster than 3% and we're absolutely committed to continuing to do that going forward. One way. We're doing that is via digital and e-commerce and so so Ravi poker I was going to come up now to talk about how.

Let's talk some numbers and Madden brought the partner for me, we go from <unk> to 'twenty in under seven.

Let's talk some numbers and Madden broke the partner for me, we go from <unk> to 'twenty and under seven.

Seven years.

Kind of e-commerce penetration, we are seeing for our categories. It's.

Important to say here that we have seen a sustained post COVID-19 momentum in almost all of our categories medical humor, once who has decided and chosen convenience doesn't want to give it back think about getting your led unsubscribe and showing that every month on your door versus having to lug it from the store.

Seven years, that's the kind of e-commerce penetration, we are seeing for our categories. It's important to say here that we have seen a sustained post COVID-19 momentum in almost all of our categories Medical you want who has decided and chosen convenient doesn't want to give it back think about getting your Orlando subscribe and <unk>.

Ravi: We're going to keep that great growth going thanks.

Ravi: Considerably brokerage.

Ravi: And the digital growth officer here at Church <unk> Dwight.

Ravi: Alright.

Ravi: So quick context, setting because I know all of us are consumer goods the users, but not always fancy. Some geeky things might have been hearing so keep me honest I'd like to turn that into I wanted to say that we are not in the business of getting consumers to shop online, we're simply in the business of being where the consumer shops and that happens to be online more often.

Of course, we are in Southend about timeshare highs like body was speaking in the online World also we have new metrics, where we say, we aspire to be an online share at least equal or higher wasn't brick and mortar and we have had some fantastic success as you can see here six out of our new.

Every month on your door versus having to lug it from the store.

Of course, we are.

And second about <unk> Shanghai is like body was speaking in the online World also we have new metrics, where we say, we aspire to be an online share at least equal or higher wasn't brick and mortar and we have had some fantastic success. As you can see here six out of our new seven power brands have grown.

Ravi: But that said 70% of purchases in the U S. Specifically, our digitally influence what that means is every time you pick up that makes sense device out of your pocket look up their iPad youre, making purchase decisions not just buy online, but walk the store look up a review online and that made that purchase that's one digitally influenced tools.

Seven power brands have grown in the share in 2022 and these are some all time high share names arm <unk> hammer, both laundry and litter pet a breath, there and spend rush.

And the share in 2022 and these are some all time highs.

Named arm <unk> hammer, both laundry and litter pet a breath, there and spend rush.

It's important to understand how these are the results like the what now I will speak a little bit to the hall.

Ravi: Also we had in the Ed all 10 or less commerce. So the consumer is very fluid between buying in brick and mortar store buying online on making that call in order to get the product delivered to the door, maybe a laundry ship.

It's important to understand how these are the results like the what now I will speak a little bit to the hull.

Rick was mentioning a lot of our media spend in the last couple of years has pivoted to visit right simply as the consumer has gotten onto more digital consumption, which is at 2%.

Rick was mentioning a lot of our media spend in the last couple of years has pivoted to visit right simply as the consumer has gotten onto more digital consumption, which is 18%.

But more beautiful and that is as we have more tactics to measure the efficacy of our media, we are having more and more to auto why on every dollar that we put so we get maximum stretch out of a dollar. So that we don't just need the consumer at that moment of truth, but getting better returns on that dollar spent.

Ravi: So it's important to segregate how the physical shelf is very different from the digital shelf. The physical shelf is set once a year, maybe twice a year and it is set and forget it.

More beautiful than data and we have more tactics to measure the efficacy of our media, we are having more and more to Ottawa on every dollar that we put so we get maximum stretch out of a dollar. So that we don't just meet the consumer at that moment of truth, but getting better returns on that dollar spend.

This shelf like this time lapse video shows the <unk> Tianjin by the second so our tactics really have to cater to the online world and a very different manner.

So broadly right I'm going to speak about the consumer connection and that zero moment of truth, whether the consumer meets us in and out of home advertising on a Youtube video auto Instagram influenza, but we act.

Ravi: Let's talk some numbers and Madden brought the partner for me we go from <unk> to 'twenty in under seven years, that's the kind of E. Commerce penetration, we are seeing for our categories. It's important to say here that we have seen a sustained post COVID-19 momentum in almost all of our categories medical humor.

Add to it the <unk> and the Hallmark of church <unk> Dwight if that doesn't beautiful execution excellence. So I'll share with you. Some examples of how we execute.

Add to it the <unk> and the Hallmark of church, and Dwight that doesn't beautiful execution excellence. So I'll share with you. Some examples of how we execute.

Ravi: <unk>, who has decided and Susan convenience doesn't want to give it back think about getting your led unsubscribe and showing that every month on your door versus having to lug it from the start.

Neither of them visible plus out of home advertising, what you will note here that each of them you might have seen in your own feeds sorry.

These are some visibility plus out of home advertising, what you will note here that each of them.

<unk>.

Of course, we are in SaaS and about timeshare highs like body was speaking in the online World also we have new metrics, where we say, we aspire to be an online share at least equal or higher wasn't brick and mortar and we've had some fantastic success as you see here six out of our new <unk>.

You might have seen in your own feed sorry.

It just means you might have seen Indiana wanted what we tried to do is we want to make content that is authentic to the platform. So when you see a youtube advertisement on Pinterest undertake top advertisement it doesn't feel like an AD creative it feels like a clear doesn't that was meant for that platform and that's why it generates.

Back.

Each of these you might have seen in <unk>, what we try to do is we want to make content that is authentic to the platform. So when you see a youtube advertisement on a pinterest or a tech talk advertisement it doesn't feel like an AD creative it feels like a clear dose that was meant for that platform and that's why it generates more.

Ravi: Seven power brands have grown in the share in 2022 and these are some all time high share names.

More pumped up in connection with the consumer.

Interestingly I'm sure.

Pumps topping connection with the consumer.

Ravi: Both laundry and litter pet of Rep, naira and spin rush.

Buzzword olive.

All over the place one thing that we are noting is there are some use cases of AI, especially in my tech.

Interestingly I'm sure you know and the buzzword olive all over the place one thing that we are noting is there are some use cases of AI, especially in my tech with the creative that Youll see on the left from a brand there usually we might have thought he wanted and created that clear there over five six days with the help of technology.

Ravi: It's important to understand how these are the results like the what now I will speak a little bit to the hall as Nick was mentioning a lot of our media spend in the last couple of years has pivoted to visit rate simply as a consumer has gotten onto more digital consumption, which is 80% today, but more beautiful than that is.

Creative that Youll see on the left from a brand and they're usually they might have storyboard and created that cleared there over five six days with the help of technology and the right human oversight.

Creative can now we could add another five hours or so.

And the right human oversight.

And we try to scale those creators and what you see on the right in a very large surround sound more so like I was mentioning we have fixed our platform BB <unk> saw some creative retail media and clear them as a consumer buys online and search all of that comes in a surround sound go ahead. So manner. So that you might think and they will clear there was <unk>.

Ravi: And we have more tactics to measure the efficacy of our media, we are having more and more ottaway on every dollar that we put so we get maximum stretch out of our dollar. So that we don't just need the consumer at that moment of truth, but getting better returns on that dollar spend.

Kind of creative can now be candidate in a low five hours or so.

And we try to scale those creators and what you can see on the right and a very large surround sound more so like I was mentioning we have fixed our platform BB <unk> saw some creative retail media and clear them as a consumer buys online and search all of that comes in a surround sound go ahead. So manner. So that you might think and they will clear there was.

So broadly right I'm going to speak about the human connection and that zero moment of truth, whether the consumer meets us in and out of home advertising on a Youtube video auto Instagram influenza, but.

That's right to the point of purchase.

Social social is what I call as the consumers engaged in boots crawl. The endless scrolling. These are some key items, which are truly I believe Atlantic hung stopping this magical then we are no longer in Vietnam, where we would make a 62nd television commercial cut it down to six we want to add.

Farthest right to the point of purchase.

Yes, social social is what I call them as consumers engage in booms crawl. The endless scrolling. These are some clear ideas without truly I believe Atlantic hung stopping the magical 10.

Ravi: Add to it the incessant and the Hallmark of church <unk> Dwight that doesn't beautiful execution excellence. So I'll share with you. Some examples of how we execute.

We are no longer in Vietnam, where we would make a 62nd television commercial cutting down to six we want to and we do make commercials that are fed from platform six seconds and like you say on Tech talk we don't make may make tictoc. So that's the kind of creative we have all of this created amazing, but as we get the consumer from <unk>.

Ravi: Neither of them visible plus out of home advertising, what you will note here that each of them you might have seen in your own feed sorry.

We do make commercial benefits from platform six seconds and like you say on Tech talk we don't make me make tictoc. So that's the kind of creative we have all of this created an amazing but as we get the consumer from inspiration to purchase we have to make sure. We have one click to cut because we know every time the consumer has to take more time.

<unk>.

Ravi: Each of these you might have seen in <unk>, what we try to do is we want to make content that is authentic to the platform. So when you see a youtube advertisement on Pinterest undertake top advertisement it doesn't feel like an AD creative it feels like a clear doesn't that was meant for that platform and that's why it generates more.

<unk> to purchase we have to make sure we have one click to cut because we know every time the consumer has to click more ties we lose 90% of that traffic. So from inspiration to purchase it has to be a single click and that's what drives a lot of one on license revenue.

But you will lose 90% of that traffic so from inspiration to push as it has to be a single click and that's what drives a lot of water on lines Avenue.

Yes.

Ravi: Non stop in connection with the consumer.

Another interesting, but what we haven't seen especially in the last two years, usually we would do go to market and go brick and mortar first and go a lot we have slightly changed that model, especially hard with some launches like arm and hammer power sheets and hard ball, where we were.

Interestingly I'm sure.

Yes.

Ravi: Buzzword olive.

Another interesting, but we haven't seen especially in the last two years, usually we would do go to market and gold brick and mortar first and go a lot we have slightly changed that model, especially hard with some launches like arm <unk> hammer power sheets and hard ball, where we will launch online first get initial category and consumer insights all that fits data.

Ravi: All over the place one thing that we are noting is there are some use cases of AI, especially in my tech with the creative that you'll see on the left from a brand and they're usually they might have storyboard and created that clear there over five six days, but the help of technology and the right human oversight there he is.

We'll launch online first get initial category and consumer insight on that but it stayed up all the ratings and reviews that he was mentioning do audience testing on the different social platforms AB testing the product detail page the content that you see and once we have satisfied by making it good online has been making big and brick and mortar.

Ravi: Kind of creative can now be candidate in allo five hours or so.

On the ratings and reviews and that he was mentioning do audience testing on the different social platforms <unk> tested the product detail page the content that you see and once we have satisfied by making it good online has been making big and brick and mortar that's exactly what we did with hardware. That's what we are doing with arm <unk> Hammer sheets, we noted that an unsafe.

Ravi: And we try to scale those creators and what you see on the right in a very large surround sound more so like I was mentioning we have fixed our platform BB creative social creative retail media cleared them as a consumer buys online and search all of that comes in a surround sound go ahead. So manner. So that you might think and they will clear the cause.

That's exactly what we did with Hardball, that's what we are doing with them and how much we noted that and unseat. The consumer is looking for not just the sustainability message of good for you and good for the planet Theyre looking for the clean that the charter not Manhattan and that's what we learned online and then we take it to break in water and the logistics.

The consumer is looking for not just the sustainability message of good for you and good for the planet Theyre looking for the claim that their chest and not Manhattan and Thats, what we learned online and then we take it to break in water and a lot of it.

Ravi: This flight to the point of purchase.

So in summary in terms of metrics and aspiration like I said, we are not in the business of getting consumers to shop online, but we are where the consumer is and online is a lot of growth for us. So we will be very passionate about growing our land sales and share growth to clarify I'm sure that we don't just look at third player that is Amazon chewy.

Ravi: Social social is what I call as consumers engage in boots crawl. The endless scrolling. These are some clear ideas, which are truly I believe authentic punks topping the magical 10, and we are no longer in the era, where we would make a 62nd television commercial cut it down to six second we want to and we do.

So in summary.

The metrics that aspiration like I said, we are not in the business of getting consumers to shop online, but we are where the consumer is and online is a lot of growth for us. So we will be very passionate about growing online sales and share growth.

Commercial benefit from platform six seconds and like you say on Tech talk we don't make me make tictoc. So that's the kind of creative we have all of this created an amazing but as we get the consumer from inspiration to purchase we have to make sure. We have one click to cut because we know every time the consumer has to take more time.

All lines showed as measured across Amazon Chewy, Walmart Dot com Targa dotcom polka dot com because that the universe of where E. Commerce happens in the country and globally. We are also more tech powered and human guidance.

And sure. We don't just look at third player that does Amazon and chewy online share is measured across Amazon chewy, Walmart Dot com target dot com polka dot com because that the universe of where e-commerce happens in the country and globally.

The entrance to the Mark taken AD Tech investments that we're making and the next tap the two dot online for US is we are going to be more focused on efficiency and profitability on guy unwilling to make fit for another kind of products that makes sense for us in the online world.

We are also more tech powered and human guidance relating to the Mark taken AD Tech investments that we're making and the next step the two dot online for US is we are going to be more focused on efficiency and profitability on guy unwilling to make fit for another kind of products that makes sense for us in the online world.

Ravi: We lose 90% of that traffic so from inspiration to purchase it has to be a single click and that's what drives a lot of one on line is open.

So I just wanted to say landing we have come a long way from digital being a capability builder for church <unk> Dwight does it will now be England tube business and growth driver for the company. So we're on the topic of growth drivers I'll give it to my grid because international is also a huge growth driver for us.

Ravi: Yes.

Ravi: Another interesting, but we haven't seen especially in the last two years, usually we would do go to market and gold brick and mortar first and go a lot we have slightly changed that model, especially for some launches like arm and hammer power sheets and hard ball, where we will launch online first get initial category and consumer insight on that would stay there.

So I just wanted to say landing we have come a long way from digital being a capability builder for church <unk> Dwight does it is now being a good business and growth drivers for the company. So we're on the topic of growth drivers I'll give it to my grid because international is also huge contract growth driver for us.

Ravi: On the ratings and reviews that he was mentioning do audience testing on the different social platform AB testing the product detail page the content that you see and once we have satisfied by making it good online has been making big and brick and mortar that's exactly what we did with hardball. That's what we are doing with arm <unk> Hammer ships, we noted that an unchanged.

Good afternoon.

My name is Mike Great I mean, our international and our SPD business. So let me just start with the international story.

Good afternoon. My name is Mike Great I mean, our international and our SPD business. So let me just start with the international story.

As Rick mentioned earlier, we have upgraded our evergreen model, so what used to be 6% organic growth. We now move to 8% organic catch here so exciting step for the division.

As Rick mentioned earlier, we have upgraded our evergreen model. So it used to be 6% organic growth, we now move to 8% organic each year, so exciting step for the division.

Break that down a bit we're about $1 billion in size, just kind of two parts to it we have six six subsidiary markets that go direct to retail.

Ravi: The consumer is looking for not just the sustainability message of good for you and good for the planet Theyre looking for the clean that the trust in our Manhattan and Thats, what we learned online and then we take it to break in water and the logistics.

If I break that down a bit we're about $1 billion in size just kind of two parts to it we have six six subsidiary markets that go direct to retail.

It's about 63% of our total business, Canada, UK, Mexico, Australia, France, Germany. The remaining 37% is through our global markets group. So we operate in about 100 different countries.

It's about 63% of our total business, Canada, UK, Mexico, Australia, France, Germany. The remaining 37% is through our global markets group. So we operate in about 100 different countries, we partner with.

Speaker Change: So in summary in terms of metrics and aspiration like I said, we are not in the business of getting consumers to shop online, but we are where the consumer is and online is a lot of growth for us. So we will be very passionate about growing online sales and share growth to clarify on share. We don't just look at third player that is Amazon chewy.

Partners for.

400 400 diaper.

Distributor partners around the world. So our global markets business has been our fastest growing over the over the last few years and we'll continue to do so and just to make that kind of point. If you go back to 2009.

400 400 diaper.

Speaker Change: Online shared as measured across Amazon Chewy, Walmart Dot com Targa dotcom polka dot com because that the universe of where e-commerce happens in the country and globally.

International business tripled in size and during that time, our global markets group has doubled in importance. I mean, you can see that trend continuing while we've had strong growth in our subs, we do expect <unk> to continue to outpace that.

The business tripled in size and during that time, the global markets group has doubled in importance and we see that trend continuing while we've had strong growth in our subs, we do expect <unk> to continue to outpace that.

Speaker Change: We're also more tech powered and human guidance.

Speaker Change: Related to the Mark taken AD Tech investments that we're making and the next step the two dot online for US is we are going to be more focused on efficiency and profitability on guy unwilling to make fit for channel kind of products that makes sense for us in the online world.

If I if I just give a summary of our 2020 22023, a very strong year.

If I if I just give a summary of our 2020 through 22023, a very strong year, we had a break.

<unk> quarter in Q1, almost 12% growth followed by six 1% in Q2 seven three in Q3, and we finished strong with 9.0 in Q4, so our full year organic of eight 5%, we had strong growth across all of our subsidiary markets and double digit growth across our gmg region as well so across the board really strong.

So I just wanted to say and ending.

Breakout quarter in Q1, almost 12% growth followed by a six 1% in Q2 seven three in Q3, and we finish strong with 9.0 in Q4, so our full year organic of eight 5%, we had strong growth across all of our subsidiary markets and double digit growth across our gmg region as well so across the board really strong.

Speaker Change: Hum along way from digital being a capability builder for church <unk> Dwight.

Speaker Change: Now being a good business and growth driver for the company. So we're on the topic of growth drivers I'll give it to my grid because international is also a huge growth driver for us.

<unk>.

And that sort of shows the 6% to 8% Evergreen model change if you look back over the over a number of years other than Mr. Setback from last year, we've had pretty consistent growth across.

Results.

And that just sort of shows the 6% to 8% Evergreen barbell change if you look back in over the over a number of years other than the sort of step back from last year, we've had pretty consistent growth across.

Mike: Good afternoon. My name is Mike I mean, our international and our SPD business. So let me just start with the international story.

Number of years and approaching.

Switching above 80% in 2023 at eight 5%.

Mike: As Rick mentioned earlier, we have upgraded our evergreen model, so what used to be 6% organic growth. We now move to 8% organic catch here so exciting step for the division of.

A number of years and.

I think the good news is is relative to our peers. We are still very much underdeveloped. So we're about 17% of ourselves as a company comes from international we're very much in growth mode. Many of our peers are in the 59% to 60% range. So a long runway ahead, but what's most encouraging about that runway is we've got a portfolio the travels extremely well.

Switching above 8% in 2023 at eight 5%.

Mike: If I break that down a bit we're about $1 billion in size just kind of two parts to it we have six six subsidiary markets that go direct to retail.

Mike: It's about 63% of our total business, Canada, UK, Mexico, Australia, France, Germany. The remaining 37% is through our global markets group. So we operate in about 100 different countries, we partner with.

As do our acquisitions. So we've got a combination of U S power brands like arm <unk> Hammer Oxiclean quite a fusion of the travel very well and that's complemented with a strong personal care and OTC portfolio headlined by Batiste stair Martin farm fresh so brands that aren't necessarily commercializing in the U S that are play important roles for the International Division.

As do our acquisitions. So we've got a combination of U S power brands like arm <unk> Hammer Oxiclean quite infusion the travel very well and that's complemented with a strong personal care and OTC portfolio headlined by Batiste <unk> and farm fresh so brands that aren't necessarily commercialized in the U S that are play important roles for the International Division.

Mike: 400 400 diaper.

I think most notably though as acquisition has been a really big part of the growth story within an international if you go back to a few years back when the acquisition of Waterpick. That's one of our biggest brands internationally and were thrilled with the addition of their breath and hero. So just rolling both of those brands are globally. Both are on track and actually making a big splash already with <unk>.

Mike: The business tripled in size and during that time, the global markets group has doubled in importance. I mean, you can see that trend continuing while we've had strong growth in our subs, we do expect <unk> to continue to outpace that.

I think most notably though as acquisition has been a really big part of the growth story within an international if you go back to a few years back when the acquisition of water Pik. That's one of our biggest brands internationally and were thrilled with the addition of their breath and hero so.

Mike: If I if I just give a summary of our 2020 through 22023, a very strong year, we had a break.

It's become so really excited about adding those two pieces of the portfolio.

Rowling both of those brands globally, both are on track and actually making a big splash already with what's to come. So we're really excited about adding those two pieces to the portfolio.

Mike: A breakout quarter in Q1, almost 12% growth followed by six 1% in Q2 seven three in Q3, and we finish strong with 9.0 in Q4, so our full year organic of eight 5%, we had strong growth across all of our subsidiary markets and double digit growth across our gmg region as well so across the board really strong.

If I just sort of summarize sort of three key things to think about from a from an international perspective, Rick talked about some of the investments that we're making particularly in our Gmg group, but we are putting all the infrastructure process heater to shore up and be able to support the growth that's coming from our global markets Group. We've also added a lot of capabilities around portfolio strategy.

Mike: Results.

<unk> revenue growth management, and as Sherman mentioned, just really upscaling, our digital ecommerce capability and certainly the acquisition additions I'm just getting on the on the front foot on both of those both of those acquisitions are are the focus areas for international.

Mike: And that just sort of shows the 6% to 8% Evergreen barbell change if you look back in over the over a number of years other than Mr. Setback from last year, we've had pretty consistent growth across.

<unk> revenue growth management, and as Sheryl mentioned, just really upscaling, our digital ecommerce capability and certainly the acquisition additions I'm just getting on the on the front foot on Boston Boston is acquisitions are are the focus areas for international.

Mike: A number of years and <unk>.

Mike: Switching above 8% in 2023 at eight 5%.

Alright, so over to specialty products.

So the specialty products Division, we are holding our evergreen model at 5% growth.

Speaker Change: I think the good news is is relative to our peers. We are still very much underdeveloped. So we're about 17% of ourselves as a company comes from international we're very much in growth mode. Many of our peers are in the 59% to 60% range. So a long runway ahead, but what's most encouraging about that runway is we've got a portfolio that travels extremely well.

Alright, so over to specialty products.

So the specialty products Division, we are holding our evergreen model at 5% growth.

If you just break that into kind of two main parts, we have an animal nutrition business, which is about two thirds of the business are you seeing sort of the impact of Mega luck. There. The rest of the specialty chemicals is about a $320 million business. If you. If you kind of unpack that a little bit tough year in 2023 were down minus 8%. Most of that is megawatt driven so if you take <unk> out we're actually.

If you if you can kind of unpack that a little bit tough year in 2023 were down minus 8%. Most of that is megawatt driven so if you take mega lockout were actually in positive growth in the animal nutrition business was and stronger growth on that.

Speaker Change: As do our acquisitions. So we've got a combination of U S power brands like arm <unk> Hammer oxiclean by diffusing, the travel very well and that's complemented with a strong personal care and OTC portfolio headlined by Batiste <unk> and farm fresh so brands that aren't necessarily commercializing in the U S that are play important roles for the International Division.

Most importantly is we're still very focused on building out our portfolio and supporting prebiotics probiotics and nutritional supplements across across.

And positive growth in the animal nutrition business was in stronger growth from that.

Most importantly is we're still very focused on building out our portfolio and supporting prebiotics probiotics and nutritional supplements across across.

Speaker Change: I think most notably though as acquisition has been a really big part of the growth story within an international if you go back to a few years back when the acquisition of Waterpick. That's one of our biggest brands internationally and were thrilled with the addition of their breath and hero so.

Our wide range of species dairy cattle swine and poultry so nothing really changes megawatts coming out with the rest of the portfolio is strong we have a higher growth ambitions for most notably we're focused on international similar to the consumer side. So if you go back to kind of <unk>.

Our wide range of species dairy cattle swine and poultry so nothing really changes megawatts coming out with the rest of the portfolio are strong we have a higher growth ambitions for most notably we're focused on international similar to the consumer side. So if you go back to kind of <unk>.

Speaker Change: Rowling both of those brands out globally, both are on track and actually making a big splash already with what's to come. So we're really excited about adding those two pieces to the portfolio.

15 were less than 6%, we're now at 17%, which is in parallel with our consumer business last year grew 25%, so really strong growth internationally as well so with that I'll pass back to myself.

2015 were less than 6%, we're now at 17%, which is in parallel with our consumer business last year grew 25%, so really strong growth internationally as well so with that I'll pass back to myself.

Speaker Change: If I just sort of summarize sort of three key things to think about from a from an international perspective, Rick talked about some of the investments that we're making particularly in our inner Gmg group, but we are putting all the infrastructure process heater to shore up and be able to support the growth that's coming from our global markets Group. We've also added a lot of capabilities around portfolio strategy.

Okay.

Thanks.

Okay.

People, who are long term shareholders.

Thanks.

Okay.

I have a pretty good handle on this you understand the brands.

People, who are long term shareholders.

And the growth rates in the margins and all that kind of good stuff, but the long term shareholders, who I think a better understanding of the importance of the culture in the company.

I have a pretty good handle on this you understand the brands and the growth rates in the margins and all that kind of good stuff, but the long term shareholders, who I think a better understanding of the importance of the culture in the company.

The culture of the church and Dwight as described in our annual report and you can read it. It says we're a blue collar organization.

Both of these acquisitions are are the focus areas for international.

The culture of Church <unk> Dwight is described in our annual report.

Speaker Change: Alright, so over to specialty products so.

That doesn't mean, that's unaddressed code thing. This is we're just greedy and people.

Speaker Change: So the specialty products Division, we are holding our evergreen model at 5% growth.

You can read it it says we're a blue collar organization.

Speaker Change: If you just break that into kind of two main parts of an animal nutrition business, which is about two thirds of the business are you seeing sort of the impact of Mega luck. There the rest of the specialty chemicals is about a $320 million business.

A lot of high aptitude people, there's a lot of people who have joined our company that come from Big CPG.

That doesn't mean, that's unaddressed code thing. This is we're just greedy and people.

A lot of high aptitude people, there's a lot of people that join our company that come from Big CPG.

It's kind of tired of the Big company thing and want to go small and we consider are so small.

We say, we are blue collar or high attitude or underdogs, there's a lot of the people. We compete with are much bigger than we are but beyond that for the last five years, we've been getting into predictive analytics. So we go sit in meetings to church and Dwight everybody wants to know what are the facts get the facts. The next thing is serve you described is becoming.

It's kind of tired of the Big company thing and want to go small and we consider is so small.

Speaker Change: If you if you kind of unpack that a little bit tough year in 2023 were down minus 8%. Most of that is megawatt driven so if you take mega lockout were actually in positive growth in the animal nutrition business was in a stronger growth on that.

We say we are blue collar for high attitude or underdogs, there's a lot of the people. We compete with are much bigger than we are but beyond that for the last five years, we've been getting into predictive analytics. So we go you sit in meetings to church and Dwight everybody wants to know what are the facts get the facts Nexium serve you described is becoming.

Speaker Change: Most importantly is we're still very focused on building out our portfolio and in supporting prebiotics, probiotics and nutritional supplements across across.

Digitally savvy, we've embraced that and it's throughout the company and one of the things we said in our release and today is that hey, we're going to put more money into this.

Speaker Change: Our wide range of species dairy cattle swine and poultry so nothing really changes megawatts coming out with the rest of the portfolio are strong we have a higher growth ambitions for most notably we're focused on international similar to the consumer side. So if you go back to kind of <unk>.

Digitally savvy, we've embraced that.

And it's throughout the company and one of the things we said in our release and today is that hey, we're going to be putting more money into this.

We had to spend more money in E. Commerce, both of them were people, but also technology just to kind of round out what our our culture as like we.

Are we going to spend more money in E. Commerce, both of them were people, but also technology just to kind of round out what our our culture as like we.

2015 were less than 6%, we're now at 17%, which is in parallel with our consumer business last year grew 25%, so really strong growth internationally as well so with that ill pass back to myself.

We do embrace the diversity.

Super important.

Teamwork is super important and finally were risk takers, because as companies get bigger from went up from pullback and you make decisions in groups and consensus and that slows things down and often you don't make the best decisions I mean, that's the elements you're never going to read about it in this in the sell side analyst report they might get it privately, but you weren't going to read it in and out but.

We do embrace the diversity.

Super important.

Teamwork is super important and finally were risk takers, because as companies get bigger from winter pullback and you make decisions.

Speaker Change: Okay.

Speaker Change: Thanks.

Speaker Change: Okay.

In groups and consensus and that slows things down and often you don't make the best decisions.

Speaker Change: People, who are long term shareholders.

Speaker Change: I have a pretty good handle on this you understand the brands and the growth rates in the margins and all that kind of good stuff, but the long term shareholders, who I think a better understanding of the importance of the culture in the company.

That's the element you're never going to read about it in this in the sell side analysts report they might get it privately but you weren't going to ruin a note, but that's one of the things that you're investing in and that's one of the things that makes the company go and if you think about 2022, we pancaked in 2022, right minus EPS hadn't happened in 20 years.

That's one of the things that you're investing in and that's one of the things that makes the company go and if you think about 2022, we pancaked in 2022, right minus EPS hadn't happened in 20 years.

Speaker Change: The culture of Church <unk> Dwight is described in our annual report.

But the company is just so creative.

Clever and resilient that we said hey, we're.

Speaker Change: You can read it it says we're blue collar organization.

But the company is just so creative.

We're going to turn that around in 2023.

Speaker Change: That doesn't mean, that's unaddressed code thing. This is we're just greedy and people.

Lever and resilient that we said hey that that's we're going to turn that around in 2023.

And we have to hear a few more things about how we run the place for us.

A lot of high after two people, there's a lot of people to join our company that come from Big CPG.

I'll, just I won't read them all to you, but I'll kind of bump from leverage brands, we've talked about the brand's already now a friend of the environment.

And we have to hit a few more things about how we run the place for us.

I'll, just I won't read them all to you, but I'll kind of bump from leverage brands, we've talked about the brand's already now a friend of the environment.

Speaker Change: It's kind of tired of the Big company thing and want to go small and we consider are so small.

That's important to us as people and just as human beings, but it's also important to the consumers. So if you talk to younger consumers there, they're really interested in brands that want to be sustainable. So we've embraced that and if you look at the laundry sheets that as the most sustainable form of unit dose comes in a cardboard box system.

Speaker Change: We say, we are blue collar for high attitude or underdogs, because a lot of the people. We compete with are much bigger than we are but beyond that for the last five years, we've been getting into predictive analytics. So we go you sit in meetings to church and Dwight everybody wants to know what are the facts get the facts.

That's important to us as people and just as human beings, but it's also important to the consumers. So if you thought the younger consumers there, they're really interested in brands that want to be sustainable. So we've embraced that and if you look at the laundry sheets that as the most sustainable form of unit dose that was in a cardboard boxes.

Theres no plastic.

Speaker Change: As <unk> described this becoming digitally savvy, we've embraced that and it's throughout the company and one of the things we said in our release and today is that hey, we're going to be put more money into this.

And it's just a little bit corny, but if you go back to the 19th century Huawei on the left part of this slide we were putting pictures of birds and baking soda boxes, not baseball players, but birds and the card said save the birds save the planet.

Theres no plastic.

And it's just a little bit corny, but if you go back to the 19th century or the way on the left part of this slide we were putting pictures of birds and baking soda boxes, not baseball players, but birds in the cards said save the birds save the planet. So this company was into any environment before anybody could spell sustainability and then more recently.

Speaker Change: Are we going to spend more money in E. Commerce, both of them were people, but also technology just to kind of round out what our our culture as like we.

This company was Anthony environment before anybody could spell sustainability and more recently in 2020. One we've made a commitment to science based targets and in 'twenty to 'twenty three we start investing in those where we're putting our money where our mouth is and cap capital programs and those capital programs. They are in.

We do embrace diversity.

Super important.

Speaker Change: Teamwork is super important and finally were risk takers, because as companies get bigger from lender pullback and you make decisions.

2021, we've made a commitment to science based targets and the 'twenty to 'twenty three we start investing in those so where we're putting our money where our mouth is and cap capital programs and those capital programs, there and they're focused on removing putting less cotwo into the atmosphere because up until recently, where we've been investing in its trees.

Speaker Change: In groups and consensus and that slows things down and often you don't make the best decisions.

They're focused on removing putting less cotwo into the atmosphere because up until recently, where we've been investing in its trees to take the C. O two LD atmosphere and now we're going to reduce the amount that we actually pump out of our plants.

Speaker Change: That's the element you're never going to read about it in this in a sell side analyst report they might get it privately but you weren't going to ruin a node, but that's one of the things that you're investing in and that's one of the things that makes the company go and if you think about 2022, we pancaked in 2022.

To take the C O two out of the atmosphere and now we're going to reduce the amount that we actually pump out of our plants.

Are we getting recognized for that there's lots of rating agencies surround around the league that right companies, but.

It will be getting recognized for that there's lots of rating agencies surround around the league that the rail companies but.

As you can see we can recognize triple b.

Speaker Change: Minus EPS hadn't happened in 20 years.

<unk> for the last couple of years.

Speaker Change: But the company is just so creative.

Number three is the people so I'll give you a little bit thumbnail with respect to the culture of the company, but we're like Super productive and I think this is a really underappreciated metric.

As you can see we can recognize triple b.

<unk> for the last couple of years.

Lever and resilient that we said hey that that's we're going to turn that around in 2023.

Number three is the people. So I gave you a little bit thumbnail with respect to the culture of the company, but we're like Super productive and I think this is a really underappreciated metric.

Speaker Change: And we have to hear a few more things about how we run the place for us.

So we generate over $10 million per employee.

Speaker Change: I'll, just I won't read them all to you, but I'll kind of bump from leverage brands, we've talked about brands already now a friend of the environment.

And the company and generally youre going to see that with what startups, but.

So we generate over $10 million per employee.

We were very proud of this.

The company and generally youre going to see that wood with startups, but.

And I guess they were.

If you talk to antibody that's coming up on this stage. They will say, we don't have enough people.

We were very proud of this.

And like I said, we.

If you talk to antibody that's coming up on this stage. They will say, we don't have enough people.

When we do that deliberately because when you have fewer people fewer really good people prioritize she only work on the stuff that matters and again, that's part of the culture at a really simple compensation structure.

When we do that deliberately because when you have fewer people fewer really good people prioritize seemingly work on the stuff that matters and again, that's part of the culture at a really simple compensation structure.

Speaker Change: Theres no plastic.

Speaker Change: And it's just a little bit corny, but if you go back to the 19th century Huawei on the left part of this slide we were putting pictures of birds and baking soda boxes, not baseball players, but birds in the cards said save the birds save the planet. So this company was Anthony environment before anybody can spell sustainability.

Familiar net revenue gross margin and EPS cash flow, but also strategic initiatives. So we want to make sure that on an annual basis. We're also looking to the future and the types of strategic initiatives. We have are.

Familiar net revenue gross margin and EPS cash flow, but also strategic initiatives, we want to make sure that on an annual basis. We're also looking to the future and the types of strategic initiatives. We have are.

With respect to the environment.

Ni, how well we're at we're integrating acquisitions.

With respect to the environment.

Speaker Change: More recently in 2020, one we've made a commitment to science based targets in 'twenty two 'twenty three we start investing in those where we're putting our money where our mouth is and cap capital programs and those capital programs.

So are we investing in international and also where our ecommerce area. So there's five components to the strategic initiatives and gross margin expansion you saw we changed our evergreen model. So now we're saying.

Eni, how well we're at we're integrating acquisitions also.

So are we investing in international and also where our e-commerce area. So there's five components to the strategic initiatives and gross margin expansion you saw we changed our evergreen model. So now we're saying.

Speaker Change: Their focus on removing putting less cotwo.

Excuse me, we can expand faster in the future and that rains money and then you can spend that money back in marketing back on SG&A and again.

Speaker Change: Misfire, because up until recently, where we've been investing in its trees to take the C. O two out of the atmosphere and now we're going to reduce the amount that we actually pump out of our plants.

Excuse me, we can expand faster in the future and that rains money and they can spend their money back on marketing back on SG&A and again.

International and E Commerce.

And when that's part of your incentive comp if you're an employee you're asking yourself, okay. How can I get it how can I participate and here's some of the ways that we run after it one is good to great.

Getting recognized for that there's lots of rating agencies surround around the league that rig companies, but.

National and ecommerce.

Speaker Change: C. We can recognize triple B, a double way for the last couple of years.

Speaker Change: Number three is the people. So I gave you a little bit from there with respect to the culture of the company, but we're like Super productive and I think this is a really underappreciated metric. So we generate over $10 million per employee in the company.

Which is the name of our continuous improvement program always likes to joke that that's the book that everybody's heard about but nobody's red. The next one is supply chain optimization and this is just investing in our plants automation et cetera, new products you want to launch new products that have a higher gross margin than the gross margin of the products that they're replacing.

Speaker Change: And generally youre going to see that with startups, but we were very proud of this and and.

And then finally acquisition synergies when we buy businesses. That's one of the levers we have to improve that.

Speaker Change: And as I said.

Speaker Change: If you talk to antibody that's coming up on this stage. They will say, we don't have enough people.

And finally acquisition synergies when we buy businesses. That's one of the levers we have to improve the.

The businesses that we buy.

So our procurement supply chain et cetera, but also its helping our.

Speaker Change: When we do that deliberately because when you have fewer people fewer really good people prioritize certainly work on the stuff that matters and again, that's part of the culture at a really simple compensation structure.

The businesses that we buy.

Gross margin going forward because of the mix.

So our procurement supply chain et cetera, but also its helping our gross margin going forward because of the mix.

Alright number four is leverage assets.

So something else, we pay a lot of very close attention to.

Alright number four is leverage assets.

This is kind of a pretty slide and we say, 2% or 2% of sales is generally what we think is our sweet spot for investing in capex, but we pay a play coast close attention to the relationship of our cash earnings to two our property plant equipment in our working capital because we believe that every company's machine.

Something else, we pay a lot of very close attention to so it's just kind of a pretty slide and we say 2% of our 2% of sales is generally what we think is our sweet spot for investing in capex, but we pay a play coast close attention to the relationship of our cash earnings to two our property plant equipment.

Speaker Change: Familiar net revenue gross margin and EPS cash flow, but also strategic initiatives. So we want to make sure that on an annual basis. We are also looking to the future and the types of strategic initiatives. We have are.

Speaker Change: With respect to the environment, the Eni, how well were at where were integrating acquisitions.

And the machine you need to invest in assets property.

Working capital because we believe that every company has a machine and the machine you need to invest in assets with property.

Speaker Change: So are we investing in international and also where our e-commerce area. So there's five components to the strategic initiatives and gross margin expansion you saw we changed our evergreen model. So now we're saying.

Net working capital and our relationship with the cash earnings so that matters, Okay and finally, if you do those first four really well youre going to have a good company and youre going to good returns, but if you. If you put on top of that a good acquisitions and that is the skill of this company.

On working capital and our relationship with the Kashering so that matters.

And finally, if you do those first four really well youre going to have a good company and youre going to good returns, but if you. If you put on top of that a good acquisitions and that is the skill of this company.

Speaker Change: Excuse me, we can expand faster in the future and that rains money and then you can spend that money back in marketing back on SG&A and again.

If you look at all of these acquisitions, we've done over so many years almost one per year, we lift in 2023, we did look at four deals this past year, but we're very fussy about what we're going to buy.

Speaker Change: Our national and E Commerce.

If you look at all of these acquisitions, we've done over so many years almost one per year. We whiffed in 2023, we did look at Ford deals. This past year, but we're very fussy about what we're going to buy.

Speaker Change: And when that's part of your incentive comp if you're an employee you're asking yourself, okay. How can I get it how can I participate and here's some of the ways that we run after it one is good to great.

So we've gone from one five to $5 9 million and a lot of that was through acquisitions.

And I went through these before we're very fussy, we stick to this and with seven big ones today with the opportunity to be even bigger.

So we've gone from one five to $5 9 million and a lot of that was through acquisitions.

Speaker Change: Which is the name of our continuous improvement program always like to joke that that's the book that everybody's heard about but nobody's red. The next one is supply chain optimization and this is just investing in our plants automation et cetera, new products you want to launch new products that have a higher gross margin than the gross margin of the products that they're replacing and.

And I went through these before we're very fussy, we stick to this and with seven big ones today with the opportunity to be even bigger.

But more to come in the future and just kind of wrap up here.

Strong organic growth and 23, showing organic growth in 'twenty, four we're seeing 4% to 5% gross margin expansion again back to back.

But more to come in the future and just kind of wrap up here.

Strong organic growth in 'twenty three.

Speaker Change: Then finally acquisition synergies when we buy businesses. That's one of the levers we have to improve the.

On an organic mechanic growth in 'twenty, four we're seeing 4% to 5% gross margin expansion again back to back.

This new product pipeline is the best in my 17 years with the company and then international is the future for US you saw were only 70% of our sales in most of our competitors are 4%, 40% or higher that's the future and then E. Commerce, if 20% of our sales are ordering online today, we believe by the end of the decade it'll be 30.

Speaker Change: The businesses that we buy.

This new product pipeline is the best in my 17 years with the company and then international is the future for US you saw were only 70% of our sales in most of our competitors are for 40% or higher that's the future and then ecommerce if 20% of our sales are ordering online today, we'd probably by the end of the decade it'll be 30.

Speaker Change: So our procurement supply chain et cetera, but also its helping our.

Speaker Change: Gross margin going forward because of the mix.

Speaker Change: Alright number four is leverage assets.

Speaker Change: So something else, we pay a lot of very close attention to.

Speaker Change: So, it's just kind of a pretty slide and we say, 2% or 2% of sales is generally what we think is our sweet spot for investing in capex, but we pay a play coast close attention to the relationship of our cash earnings to two our property plant equipment in a word capital because we believe that every company's machine.

Percent, so you've got to get ready for that and then finally, we generate lots and lots of cash. So we're always on the hunt for new brands.

And we're going to bring the whole crown up here now so we can play stump the band.

And we're going to bring the whole crowd up here now so we can play stump the band.

Right.

Steve Powers Europe.

Speaker Change: And the machine you need to invest in assets with property.

Right.

Right and center.

Steve Powers Europe.

Working capital and our relationship with the Kashering, so that matters, Okay and finally, if you do those first four really well youre going to have a good company and youre going to good returns, but if you. If you put on top of that a good acquisitions and that is the skill of this company.

Right and center.

Is the idea.

Yeah.

He is hiding in the center.

The powers from Deutsche Bank. Thank you.

Is the idea.

Two questions on laundry.

He is hiding in the center.

The first one is just when we look at.

Steve powers from Deutsche Bank. Thank you.

Speaker Change: If you look at all these acquisitions, we've done over so many years almost one per year. We whiffed in 2023, we did look at four deals this past year, but we're very fussy about what we're going to buy.

Two questions on laundry.

Track data market shares have been under some pressure across all formats for church <unk> Dwight of late it looks like both sort of at the high end P&G and as well as the private label just.

The first one is just when we look at.

Trax data market shares have been under some pressure across all formats for church <unk> Dwight of late it looks like both sort of at the high end P&G and as well as the private label just.

So we've gone from one five to $5 9 million and a lot of that was through acquisitions.

Just some perspective on what you see going on there.

Emblematic of all channels or is that sort of what we see in the track data.

Speaker Change: And I went through these before we're very fussy, we stick to this and with seven big ones today with the opportunity to be even bigger.

For some perspective on what you see going on there thats emblematic of all channels or is that sort of what we see in the track data and then looking into <unk> into 'twenty, four specifically with deep clean.

And then looking into <unk> into 'twenty, four specifically with deep clean.

A little bit more details on the on the rollout there do.

Speaker Change: But more to come in the future and just kind of wrap up here.

Do you expect it to be incremental in terms of facings for the.

Little bit more details on the on the rollout there.

Speaker Change: Strong organic growth and 23, showing organic growth in 'twenty, four we're seeing 4% to 5% gross margin expansion again back to back.

<unk> hammer brands on the shelf et cetera. Thank you. Okay. So your first question is probably with respect to the weakness in the fourth quarter with respect to arm <unk> Hammer laundry.

Do you expect it to be incremental in terms of facings for for the year.

Arm <unk> hammer brands on the shelf et cetera. Thank you. Okay. Your first question is probably with respect to the weakness in the fourth quarter with respect to arm <unk> Hammer laundry.

Speaker Change: This new product pipeline is the best in my 17 years with the company and then international is the future for US you saw were only 70% of our sales in most of our competitors are 4%, 40% or higher that's the future and then E. Commerce, if 20% of our sales are ordering online today, we believe by the end of the decade it'll be 30.

If you recall back when we did our Q3 call, although it sounds a little weird right now.

If you recall back when we did our Q3 call by the way this sounds a little weird right now.

Does that okay. If you think back towards our Q3 call. We said Hey, we had because it for revenue gross mat growth management, we identified a lot of promotions that we had in Q4 of 22 that we're not going to repeat in Q4 'twenty three so that caused us. So we lost some share but it was the right thing to do and if you look at the most recent four weeks.

Okay. If you think back towards our Q3 call. We said Hey, we had because of revenue gross mat growth management, we identify a lot of promotions that we had in Q4 of 22 that we're not going to repeat in Q4 2003, so that caused us. So we lost some share but it was the right thing to do if you look at the most recent four weeks.

Speaker Change: Percent. So we've got to get ready for that and then finally, we generate lots and lots of cash. So we're always on the hunt for for new brands.

Speaker Change: And we're going to bring the whole crown up here now so we can play stump the band.

And I'd say mid January the same is true.

So we cut back as well so we have very low sold on deal. The first couple of weeks of January so it's not unexpected from inside out. Your second question is with respect to deep claim so deep clean as it were entering into the into the high tier something going on with this thing.

And I'd say mid January the same is true.

Speaker Change: Right.

Steve Powers: Steve Powers Europe.

So we cut back as well so we have very low sold on deal first couple of weeks of January so it's not unexpected from inside out.

Steve Powers: Right and center.

Second question is with respect to deep claim so deep clean as it were entering into the into the high tier something going on with this thing.

Steve Powers: Is the idea.

Yes.

Steve Powers: Yeah.

Orient intimate.

Steve Powers: He is hiding in the center.

Mid tier world.

Steve Powers: Yes, Steve powers from Deutsche Bank. Thank you.

Historically, we've played it in value.

Steve Powers: Two questions on laundry.

The oriented.

And yes, we are we are going to be getting incremental.

Mid tier World historical who have played it in value and yes. We are we are going to be getting incremental share.

Steve Powers: The first one is just when we look at.

Shelling there and we do think it's going to contribute to our share growth in 2024, but the bar if you like to add anything.

Steve Powers: Track data market shares have been under some pressure across all formats for church <unk> Dwight of late it looks like both sort of at the high end P&G and as well as the private labels.

Shelly there and we do think it's going to contribute to our share growth in 2024, but the barrier if you like to add anything.

I think you've covered it largely right so where.

We're going to support the launch of deep clean as you'd expect as well as fabric shades part of that is going to be part of the share growth story that youre going to see in the months ahead.

No I think you've covered it largely right so where.

Steve Powers: Just some perspective on what you see going on there that's emblematic of all channels or is that sort of what we see in the track data.

We're going to support the launch of deep clean as you would expect as well as fabric sheets part of that is going to be part of the share growth story that youre going to see in the months ahead.

And if you look at the last week attract out of shares up in just the last week of your board Karl and you want to pile on or off.

Steve Powers: And then looking into <unk> into 'twenty, four specifically with deep clean.

If you look at the last week attract out of shares up in just the last week, if you're bored carling and want to pile on or off.

Yes.

Okay.

Steve Powers: A little bit more details on the on the rollout there do.

Absolutely.

Steve Powers: Do you expect it to be incremental in terms of facings for you all.

Great.

Barry.

Speaker Change: <unk> hammer brands on the shelf et cetera. Thank you. Okay. So your first question is probably with respect to the weakness in the fourth quarter with respect to arm <unk> Hammer laundry.

We probably had a mic up here too.

Barry.

Craig.

Okay Tara.

We probably had a mic up here too.

Speaker Change: If you recall back when we did our Q3 call by the way this sounds a little weird right now.

Craig.

Diversity of Morgan Stanley.

Okay Tara.

So Matt if you go back over time, there is a.

Speaker Change: Just to say, Okay, we think.

Speaker Change: Back to our Q3 call, we said Hey, we had because it for revenue gross mat growth management, we identified a lot of promotions that we had in Q4 of 22 that we're not going to repeat in Q4 'twenty three so that caused us. So we lost some share but it was the right thing to do and if you look at the most recent four weeks and I'd say mid January.

Diversity of Morgan Stanley.

A number of examples in the CPG industry of companies raising long term topline guidance, and then sort of disappointing kind of analogous to the.

So Matt if you go back over time there's.

A number of examples in the CPG industry of companies raising long term topline guidance, and then sort of disappointing kind of analogous to the.

Si coverage inks, you get confident in unexpected things happen so maybe in that vein just off.

Si cover drinks you get confident in unexpected things happen so maybe in that vein just off.

Obviously numerically you've answered the division's international higher growth.

The same is true.

Mystic a bit higher growth numerically, but what gives you the confidence behind raising the evergreen long term topline growth target at this point, maybe give us a little bit of detail within those divisions, what's giving you the confidence and then also Rick margins didn't change in the evergreen target topline went up earnings didn't go.

Obviously numerically you've answered the division's international higher growth.

Speaker Change: So we cut back as well so we have very low sold on deal first couple of weeks of January so it's not unexpected.

Speaker Change: Inside out your second question is with respect to deep claim so deep clean as it were entering into the into the high tier something going on with this thing.

They're oriented and mid tier world historical who have played it in value and yeah. We are we are going to be getting incremental share.

Is that just rounding do you have sort of more confidence in the earnings growth and evergreen, but just that specific question would be helpful.

Speaker Change: Selling there and we do think it's going to contribute to our share growth in 2024, but the bar if you like to add anything.

Past this prologue so we had a slide up here that show that if you looked over the last 10 years. So what's been organic growth rate average, it's been 4% and almost every year, it's above 4%.

Past this prologue so we had a slide up here that show that if you looked over the last 10 years. So what's been organic growth rate average four 4% and almost every year, it's above 4%.

No I think you've covered it largely right so where.

Speaker Change: We're going to support the launch of deep clean as you'd expect as well as fabric sheets part of that is going to be part of the share growth story that youre going to see in the months ahead.

Often at these meetings forget the question how come it's 3%. So we finally fessed up and said Yeah, you know what Gulfport is 4%.

Speaker Change: If you look at the last week attract out of shares up in just the last week of your board Karl do you want to pile on or off.

Often at these meetings forget the question how come it's 3%. So we finally fessed up and said Yeah, you know what Gulfport is 4%.

It's as simple as that now while we have confidence there because we did change.

Speaker Change: Right.

It's as simple as that now why do we have confidence there because we did change.

Absolutely.

How we're going to get to the 4% Reits, We said, 3% U S, 8% international 5% specialty products, Okay International is going to be a juggernaut for us.

How we're going to get to the 4% Reits, We said, 3% U S, 8% international 5% specialty products.

Barry.

Speaker Change: Yes.

Speaker Change: We probably had a mic up here to fore.

It was a 8% growth at all.

National is going to be a juggernaut for us.

And one big component as global markets group and that's been doubling every five years. So we would have such great brands of what we're doing is what our competitors did.

Speaker Change: Most of the crowd.

Okay Tara.

8% growth at all.

And one big component as global markets group and Thats been doubling every five years. So we would have such great brands of what we're doing is what our competitors did.

Diversity of Morgan Stanley.

30, 40 years ago lets take your products on the road.

Speaker Change: So Matt if you go back over time there's.

So I think a lot of faith in international and international and U S are going to benefit from our two most recent acquisitions, which as thorough breath and hero nor are we able to launch a hero in 40 countries.

Speaker Change: A number of examples in the CPG industry of companies raising long term topline guidance, and then sort of disappointing kind of analogous to the.

30, 40 years ago lets take your products on the road.

So I think a lot of faith in the international and just international and U S are going to benefit from our two most recent acquisitions, which as thorough breath and hero, where we have a whole bunch of hero in 40 countries in 2024.

Si coverage inks, you get confident in unexpected things happen so maybe in that vein just.

2024, and we did.

Speaker Change: Obviously numerically you've answered the division's international higher growth.

Got so much runway there.

Total capex and our ability to grow the top line 4%.

Speaker Change: Tick a bit higher growth numerically, but what gives you the confidence behind raising the evergreen long term topline growth target at this point, maybe give us a little bit of detail within those divisions, what's giving you the confidence.

We just got so much runway there.

Yeah I guess.

So total capex and our ability to grow the top line 4%.

Can't rest on your laurels, which grew 4% for the last 10 years, but given where I stand today and the kind of innovation that we have I think it's in the bag.

Yeah I guess.

You can't rest on your laurels, which grew 4% for the last 10 years, but given where I stand today and the kind of innovation that we have I think it's in the bag.

Speaker Change: And then also Rick margins didn't change in the evergreen target topline went up earnings didn't go up is that just rounding do you have sort of more confidence in the earnings growth and evergreen, but just that specific question would be helpful.

And then in terms of gross margin all really geared how about operating margin 50 basis points didn't change from the prior very model to the current evergreen model gross margin, we're raising a lot of confidence.

Yeah, and then in terms of gross margin all really geared how about operating margin 50 basis points didn't change from the prior very model to the current evergreen model gross margin, we're raising a lot of confidence.

You talked about productivity is offsetting moderate inflation best productivity program that we've ever had when Rick came in.

Speaker Change: Past this prologue so we had a slide up here that show that if you looked over the last 10 years. So what's been organic growth rate average four 4% and almost every year, it's above 4%.

We talked about productivity is offsetting moderate inflation best productivity program.

Our site for too low on productivity and so we've made a turn the ship has turned.

That we've ever had when Rick came in with our sites for too low on productivity and so we've made a turn in the ship has turned and so that's a great place to be in it for inflation is moderating.

That's a great place to be and if inflation is moderating.

Speaker Change: And often at these meetings forget the question.

Good confidence there, but we're going to go spend some of that money back on SG&A for those growth investments to cement.

Speaker Change: That's 3% so we finally fessed up and said Yeah, you know what Gulfport.

So good confidence there, but we're going to go spend some of that money back on SG&A for those growth investments to cement.

This higher very model into the future and so that's why operating margin. It doesn't it doesn't change, but it helps gives us more degrees of flexibility which is great.

Speaker Change: It's as simple as that now while we have confidence there because we did change.

This this higher very model into the future and so that's why operating margin. It doesn't it doesn't change, but it helps gives us more degrees of flexibility which is great.

How we're going to get to the 4% Reits, We said, 3% U S, 8% international 5% specialty products.

Sure Tom.

One follow up there sorry.

Speaker Change: International is going to be a juggernaut for us.

So hero and Taro, Brett obviously huge growth last year, you mentioned in your answer to the acquisition contribution can you just give us a sense of your thought process in terms of growth for those two brands in 2020 for maybe the distribution opportunity in the U S and how big International is as you think about the growth opportunity for those to be.

Yes.

Sure well keep one follow up there sorry.

Speaker Change: 8% growth in our.

Speaker Change: One big component as global markets group and Thats been doubling every five years. So we'd have such great brands of what we're doing is what our competitors did.

Speaker Change: 30, 40 years ago lets take your products on the road.

Speaker Change: So I think a lot of faith in the international number.

Okay, well I want to throw it to Mike to talk about international.

Speaker Change: And just international and U S are going to benefit from our two most recent acquisitions, which as thorough breath and hero who are we have a whole bunch of hero in 40 countries in 2024, and so we just got so much runway there.

Carlin I have a crack at that.

Okay, well I want to throw it to Mike to talk about international I guess Carlin have a crack at that.

How we're thinking about it in the U S. Why don't we give some good details on what the growth drivers are but we don't get into what percentage growth that we're expecting.

Speaker Change: So I have total confidence in our ability to grow the top line 4%.

Yes, I can take that first from an international perspective, the hang on buses.

Speaker Change: Yeah I guess.

Mike.

Yes, I can take that first from an international perspective, the hang on Boston.

Speaker Change: You can't rest on your laurels, which grew 4% for the last 10 years, but given where I stand today, the kind of innovation that we have I think it's in the bag.

A lot of them like Ebola.

Really loud if I hear you were not as Scott.

Mike.

So from a from a third about first perspective, I think anytime you have got a great success story.

A lot of alike.

Really loud it might hear you were not as Scott.

Speaker Change: Yeah, and then in terms of gross margin all really geared how about operating margin 50 basis points didn't change from the prior very model to the current evergreen model gross margin, we're raising a lot of confidence.

So from a from a third about first perspective, I think anytime you have got a great success story and our.

Category growth that you can take that story internationally that called <unk> and I think we've got a lot of points of that within our portfolio. I think what's also encouraging on Thoroughbred specifically is we have a very similar type of penetration success in South Korea, where the brand is equally developed and so being able to take not only a great U S story, but bill will take another market internationally and be able to take that.

Category growth that you can take that story internationally that called 12, I think we've got a lot of proof points. So that within our portfolio I think what's also encouraging on third brought specifically is we have a very similar type of penetration success in South Korea, where the brand is equally developed and so being able to take not only a great news story, but bill will take another market internationally and be able to take that.

Speaker Change: We talked about productivity is offsetting a moderate inflation best productivity program.

Speaker Change: That we've ever had when Rick came in with our sites for too low on productivity. So we've made a turn the ship has turned and so that's a great place to be and inflation is moderating.

Turning to the trade has been really positive.

The same thing it's been such a such a clear winner for the business. It's a very simple thing to get.

Starting to the trade has been really positive.

Speaker Change: So good confidence there, but we're going to go spend some of that money back on SG&A for those growth investments to cement.

Here are the same thing it's been such a such a clear winner for the business. It's a very simple thing to get.

Retailers around the world are really excited about it so both of those brands provide scale and fairly easy entry points in our global markets. There's a real demand for it so we're pretty excited about.

Speaker Change: This this higher very model into the future and so that's why operating margin. It doesn't it doesn't change, but it helps gives us more degrees of flexibility which is great.

Unlike the U S.

I would say similar story I mean retailers are incredibly excited about both euro and their breath, we see tremendous growth and distribution gains. This past year, obviously based on the results you saw that.

Speaker Change: Yes.

Speaker Change: Sure Tom.

Speaker Change: Good one follow up there sorry.

Unlike the U S.

I would say similar story I mean retailers are incredibly excited about those hero in their breath, we see tremendous growth and distribution gains. This past year, obviously based on the results you saw that there was a lot of runway to go on both of those brands in terms of it's nice to have a brand where retailers are actually calling.

Speaker Change: So hero and Taro, Brett obviously huge growth last year, you mentioned in your answer the acquisition contribution can you just give us a sense of your thought process in terms of growth for those two brands in 2020 for maybe the distribution opportunity in the U S and how big International is as you think about the growth opportunity for those two.

A lot of runway to go on both of those brands in terms of.

It's nice to have a brand where retailers are actually calling you asking so we really see a tremendous potential for both euro and their breath across all channels I would say agnostic.

Are you asking so we really see a tremendous potential for both euro and their breath.

Speaker Change: Okay, well I want to throw at Mike to talk about international I guess Carlin have a crack at that.

And obviously, we know the resets what the planet grants are going to work like we do have that plus nuclear automation on what we're seeing in terms of that.

Ross all channels I would say agnostic.

Speaker Change: How we're thinking about it in the U S. Why don't we give some good details on what the growth drivers are but we don't get into what percentage growth that we're expecting.

Obviously, we know the resets what the planet grants are going to work like we do have that.

You know what in theory substantial improvements in placement as well as additional phases. So a lot of space coming from from both those brands, Okay perpetual rep.

Nuclear automation and what we're seeing in terms of that.

And what.

Mike: Yes, I can take that first from an international perspective, the hang on Boston.

What youll see a substantial improvement in placement as well as additional facings, So latter space coming from from both those brands, Okay refresh Europe.

Mike: I've got a mic.

And then Chris.

Couple of them.

Speaker Change: Really loud it might hear you were not as Scott.

And then Chris.

Speaker Change: So from a from a fair by first perspective, I think anytime you have got a great success story and a category grower. There you can take that story internationally that called <unk> I think we've got a lot of points. So that within our portfolio I think what's also encouraging on third specifically as we have a very similar type of penetration of success in South Korea, where the brand is equally developed.

Bring your own microphone.

Refresh for Oppenheimer. So just Rick question on guidance does your guidance incorporate any bonuses benefits from share buybacks or debt pay down and then I have a follow up question.

Bring your own microphone.

Refresh for Oppenheimer. So just Rick a question on guidance does your guidance incorporate any benefits benefits from share buybacks or debt pay down and then I have a follow up question.

Yeah No. Good question. We are we got ahead of our 2020 for expectations for buyback with your $300 million.

Yeah no good question.

Speaker Change: So being able to take not only a great U S story, Bill will take another market internationally and be able to take that starting to the trade has been really positive.

We got ahead of our 2020 for expectations for buyback, we did $300 million.

In Q4 of this year and if cash continues to build the balance sheet for an extended period of time, we would do a larger buyback at some point in terms of debt pay down I think at year end, we had nearly $200 million on our revolver, we have already paid down another $100 million. So that's kind of embedded in our outlook. Okay. And then maybe two questions just on innovation or not in terms of that line.

In Q4 of this year and as cash continues to build our balance sheet for an extended period of time, we would do a larger buyback at some point in terms of debt pay down I think at year end, we had nearly $200 million on our revolver, we have already paid down another $100 million. So that's kind of embedded in our outlook.

Speaker Change: Here are the same thing it's been such a such a clear winner for the business. It's a very simple thing to get.

With engineered 17 years.

Okay, and then maybe two questions on innovations are not you said, it's the best lineup of engineered 17 years.

Speaker Change: And then I'll talk to the U S.

How do we think about the contribution because I think previously said, it's typically a one to one and a point contribution from new products and then the power sheet any sense, whether you're bringing new customers into the franchise or whether youre sourcing from existing army ever users.

Speaker Change: I would say similar story I mean retailers are incredibly excited about those hero in there Brad we've seen tremendous growth and distribution gains. This past year, obviously based on the results you saw that there was a.

Yeah, I'll take that one first of all I'm going to toss that one to our berrien surobi as far as what we're seeing for Amazon.

Speaker Change: A lot of runway to go on both of those brands in terms of.

Yeah, I'll take that one first of all I'm going to toss that one to our berrien, Serbia as far as what we're seeing for Amazon.

Speaker Change: It's nice to have a brand where retailers are actually calling you asking so we really see a tremendous potential for both euro and their breath across all channels I would say agnostic.

Harsh it's still in early days with three or four months into launch, but absolutely new users coming in and incremental usage coming on who might use it when you're traveling you might use their vacation home et cetera, So still three or four months and we don't have the full analysis of exactly where but yeah, absolutely new would you add anything danica four months in the market purpose got Colorado 6000 reviews on pulp on five star.

Harsh it's still in early days with three or four months into launch, but absolutely new users coming in and incremental usage coming on who might use it when you're traveling you might use their vacation home et cetera, So still three or four months and we don't have the full analysis of exactly where but yeah, absolutely new if you had anything backed up with four months in the market purpose.

Speaker Change: Obviously, we know the resets what the planet grants are going to work like we do have that.

Speaker Change: Nuclear automation on what we're seeing in terms of that.

Speaker Change: And what Youll see are substantial improvements in placement as well as additional facings, So latter space coming from from both those brands, Okay refresh Europe.

Reading the reviews are Super positive, it's a mix of people, who want sustainability and careful planning and do good and people were truly like clean coming out of it because efficacy was really really important for us and we didn't want to lose as greenwashing, but I think more to come on the analysis of how many that shifting versus new a lot of them seem to be incremental.

Around 6000 reviews on pulp on five star rating and reviews are Super positive. It's a mix of people, who want sustainability and care for the planet and do good and people who truly like the clean coming out of it because efficacy was really really important for us and we didn't want to lose as greenwashing, but I think more to come on the analysis of how many are shifting versus new a lot of.

Speaker Change: And then Chris.

Speaker Change: Bring your own microphone.

Yes, there were press you are accurate that historically, we've said that.

Speaker Change: Refresh for <unk>. So just request on guidance does your guidance incorporate any benefits benefits from share buybacks or debt pay down and then I have a follow up question.

Them seem to be incremental.

If you look at our organic growth at one to one 5% is going to come from new products. So our expectation is we're going to exceed 100%.

Yes, there were press you are accurate that historically, we've said that.

If you look at our organic growth at one to one 5% is going to come from new products. So our expectation is we're going to exceed 100%.

Chris: Yeah No good question with your passion.

24, thank you.

We got ahead of our 2020 for expectations for buyback, we did $300 million.

24, thank you.

Chris: In Q4 of this year and as cash continues to build the balance sheet for an extended period of time, we would do a larger buyback at some point in terms of debt pay down I think at year end, we had nearly $200 million on our revolver, we have already paid down another $100 million. So that's kind of embedded in our outlook. Okay. And then maybe two questions on innovation. So not you said, it's the best lineup.

Get ready Andrea your next after Chris Hey, Chris Carey of Wells Fargo.

Just on the guidance and the phasing so more of a back half weighted guide totally makes sense with the front half investment how much of that back half weighted guidance, where if any depends on success of the innovation basically what's your visibility on the ability to accelerate and.

Got ready Andrea next after Chris Hey, Chris Carey of Wells Fargo.

Just on the guidance and the phasing so more of a back half weighted guide totally makes sense with the front half investment how much of that back half weighted guidance or if any depends on success of the innovation basically what's your visibility on the ability to accelerate it.

Chris: I think in your 17 years.

Chris: How do we think about the contribution because I think previously said, it's typically a one to one and a point contribution from new products and then the power sheet any sense, whether you're bringing new customers into the franchise or whether youre sourcing from existing arm <unk> hammer users.

And are you anchoring to anything that you are rolling out this year in order to hit that back half number and then just connected to this can you maybe give us a sense of what your expectations are for Vms. This year, obviously, some interesting packaging and.

Speaker Change: Yeah, I'll take that one first so I'm going to toss that one to our berrien surobi as far as what we're seeing for Amazon.

Advertising behind the product going into 2024, do you expect that business to flatten out and maybe you could also comment on your expectations for water Pik as well yeah I'll take a swing at the Vms you guys can prepare for the other pieces. So.

She is still in early days with three or four months into launch, but absolutely new users coming in and incremental usage coming on but usually when you're traveling you might use their vacation home et cetera, So still three or four months and we don't have the full analysis of exactly where but yeah, absolutely Neil would you add anything backed up with four months in the market purpose.

Advertising behind the product going into 'twenty 'twenty four do you expect that business to flatten out and maybe you could also comment on your expectations for water Pik as well yeah I'll take a swing at the Vms you guys can prepare for the other pieces. So.

We look at the category.

Cory has really struggled this past year. If you look the first three quarters. It was down in first quarter up like a point in the second quarter down in Q3 and down from down 4% in Q4. So the category is still recovering from the Covid.

We look at the category.

Speaker Change: Around 6000 reviews on pulp on five star rating and reviews are Super positive, it's a mix of people, who want sustainability and care for the planet and the good people, who truly like clean coming out of it because efficacy was really really important for us and we didn't want to lose as greenwashing, but I think more to come on the analysis of pulmonary shifting versus new a lot of.

Cory has really struggled this past year fill up the first three quarters. It was down in first quarter up like a point in the second quarter down in Q3 and down from down 4% in Q4, so that the category is still recovering from the Covid.

Success, where the category just just.

Rocket were down even more in 2023.

Success, where the category just just rocketed, we were down even more in 2023.

So we've as you heard today were making a lot of changes there.

Speaker Change: Doesn't seem to be incremental.

We'd be happy with a flat year.

Speaker Change: Yes, there were press you are accurate that historically, we've said that.

So we've as you heard today were making making a lot of changes there.

For our vitamin business in 2024, so that's not we're not banking on a big recovery in the Vms business in order to hit our numbers for 'twenty four.

If you look at our organic growth at one to one 5% is going to come from new products. So our expectation is we're going to exceed one 5%.

We'd be happy with a flat year in <unk>.

For our vitamin business in 2020 for it so that's not we're not banking on a big recovery in the BMS business in order to hit our numbers for 2004.

Okay, Yes.

24, thank you.

I guess cadence and reliance on new products to kind of hit our outlook on revenue I would say, we give revenue ranges for a reason and there's lots of things in play there and whether it's how fast our recent acquisition acquisitions grow how fast our categories grow.

Okay, Yes.

Speaker Change: Not really Andrew your next after Chris Hey, Chris Carey of Wells Fargo.

Speaker Change: Just on the guidance and the phasing so more of a back half weighted guide totally makes sense with the front half investment how much of that back half weighted guidance or if any depends on success of the innovation basically what's your visibility on the ability to accelerate it.

Petition we've mixed all of that together and we're very confident in hitting the.

The 45%.

Petition we've mixed all of that together and we're very confident in hitting the.

Just one quick one as well just with the balance sheet going to where it is your capacity to do deals is accelerated 2023 is the first time in 20 years you haven't done a deal can you just talk about the tension of not doing a deal cash burning a hole in your pocket what do you do about it would you just.

45%.

And are you anchoring to anything that Youre rolling out this year in order to hit that back half number and then just connected to this can you maybe give us a sense of what your expectations are for Vms. This year, obviously, some interesting packaging and.

First on that cash and make money because it's a high interest rate environment as long as I don't know where.

Speaker Change: Advertising behind the product going into 'twenty 'twenty four do you expect that business to flatten out and maybe you could also comment on your expectations for water Pik as well yeah I'll take a swing at the Vms you guys can prepare for the other pieces. So.

The rest on that cash and make money because it's a higher interest rate environment as long as I don't know where.

But.

Six months from now we don't have a deal or are you starting to get anxious about that or.

But.

Six months from now we don't have a deal or are you starting to get anxious about that or.

How are you thinking about that in the context of shareholder returns or number five on your tis are accretive M&A.

Speaker Change: We look at the category.

How are you thinking about that in the context of shareholder returns or number five on your tis are accretive M&A.

Speaker Change: Cory has really struggled this past year fill up the first three quarters. It was down in first quarter up like a point in the second quarter down in Q3 and down down 4% in Q4, so that the category is still recovering from the Covid.

Priorities any context.

It's only been 12 months, though.

Yeah.

Priorities any context.

We did have.

It's only been 12 months.

Early on we had a bit of a drought.

Yeah.

I think in 2008, we acquired Orajel in 2011, we acquired.

We did have.

Success, where the category just just rocketed, we were down even more in 2023.

Early on we had a bit of a drought.

I think in 2008, we acquired Orajel in 2011, we acquired a taste. So and then we had some small deals there but business that we do.

So and then we had some small deals there but business that we do.

Speaker Change: So we've as you heard today were making it making a lot of changes there.

Talk about the very small brand so far as you know this.

Speaker Change: We'd be happy with a flat year.

<unk> sized transactions, we've had seen a drop in the past and yeah I get the whole, it's a burn a hole in your pocket.

For our vitamin business in 2020 for it so that's not we're not banking on a big recovery in the BMS business in order to hit our numbers for 2004.

Talk about a very small brands so for us yes.

The size transactions, we've had seen a drop in the past and yeah I get the whole it's a burn a hole in your pocket and this is what do you do with the cash.

Or what do you do with the cash.

We did a large buyback can't remember what year it was.

Speaker Change: Okay, Yeah in terms of.

Speaker Change: I guess cadence and reliance on new products to kind of hit our outlook on revenue I would say, we give revenue ranges for a reason and there's lots of things in play there and whether it's how fast our recent acquisition acquisitions grow how faster categories grow.

It's quite a while ago pre COVID-19, where we had a lot of cash building up the balance sheet, we hadn't done a sizable deal in a while and we wound up ink.

We did a large buyback can't remember what year it was.

It's quite a while ago pre COVID-19, where we had a lot of cash building up the balance sheet, we hadn't done a sizable deal in a while and we wound up ink.

Increasing our authorization to buyback and we bought back more shares. So that's always available to us, but like I said, we looked at for deals this past year.

Increasing our authorization to buyback and we bought back more shares. So that's always available to us, but like I said, we looked at for deals this past there.

Competition with mixed all of that together and we're very confident in hitting the.

Someone who I have pretty good economics, but we just didn't think alternative they were going to be able to be sustainable. So now we are we don't ever get deal momentum.

Speaker Change: 45%.

And just one quick one as well just with the balance sheet going to where it is your capacity to do deals is accelerated 2023 is the first time in 20 years you haven't done a deal can you just talk about the tension of not doing a deal cash burning a hole in your pocket what do you do about it would you just.

Some of them have pretty good economics, where we just didn't think long term that they were going to be able to be sustainable. So now we are we don't ever get deal momentum.

The company so like I said, we're we're really fuzzy, but we do recognize the fact that we have an unlevered balance sheet pristine.

The company so like I said, we're really fuzzy, but we do recognize the fact that we have an unlevered balance sheet pristine.

We could be building up a lot of cash if we don't do this so at this time next year, we haven't done a deal obviously, we'd be looking a lot harder at buybacks.

Speaker Change: Rest on that cash and make money because it's a higher interest rate environment as long as I don't know where.

We could be building up a lot of cash if we don't do that so if this time next year, we haven't done a deal obviously, we'd be looking at a lot harder at buybacks.

The only thing I would add is we're.

We're in a great position.

Speaker Change: But.

Speaker Change: Six months from now we don't have a deal or are you starting to get anxious about that or.

We are never chased after a deal just to do a deal and we say no a lot we have a lot of rigor around that this team on the stage spends a lot of their time doing due diligence and Brian leads that in a big way.

The only thing I would add is we're.

We're in a great position.

Speaker Change: How are you thinking about that in the context of shareholder returns or number five on your tis are accretive M&A.

Speaker Change: Priorities any context, it's only been 12 months.

So when you have a great performing business you never forced to reach for a deal and so we are again just the rigor around that so we will let the cash build as he said if it builds for a period of time, then we'll look at doing buyback. Meanwhile, at five or 6% interest it's fine to be on the balance sheet and you know you might be encouraged by the fact that we've doubled the size of our M&A team.

Speaker Change: Yeah.

So when you have a great performing business you never forced to reach for a deal and so we are again just the rigor around that so we will let the cash build as he said if it builds for a period of time that we'll look at doing buyback. Meanwhile, at five or 6% interest it's fine to be on the balance sheet.

Yeah, we did have.

Speaker Change: Early on we had a bit of a drought.

I think in 2008, we acquired Orajel in 2011, we acquired.

Speaker Change: So and then we had some small deals there but business that we don't talk about very small brand so far as you know.

So for so I joined in 2006 and.

He might be encouraged by the fact that we've doubled the size of our M&A team.

Brian joined in 2006, and 'twenty to 'twenty three we added another person so.

So for so I joined in 2006 and.

Speaker Change: Decent sized transactions, we've had seen a drop in the past and yeah I get the whole it's a burn a hole in your pocket and this is what do you do with the cash.

And Brian joined in 2006, and 'twenty to 'twenty three we added another person so.

We're very lean out.

Yeah.

Hey man I'm going on one app that we're tripling it in 2024 with our European footprint now that's true.

We're very lean out.

Speaker Change: We did a large buyback can't remember what year it was.

Yeah.

Speaker Change: It's quite a while ago pre COVID-19 or we had a lot of cash building up the balance sheet, we hadn't done a sizable deal in a while and we wound up ink, increasing our authorization to buyback and we bought back more shares. So that's always available to us, but like I said, we looked at for deals this past here and.

Hey Man I'm Gonna went up that we're tripling that in 2024 with our European footprint now that's true.

We're in the hunt to hire somebody in Europe, and also in Singapore, and Asia Pacific. So we didn't deal flow outside the U S. Because historically, it's more U S centric.

Focus, but it is true and this is by the way. This is a team that goes to the diligence meetings.

Speaker Change: Some of them have pretty good economics, where we just didn't think long term that they were going to be able to be sustainable. So now we are we don't ever get deal momentum.

The graveyard, so all the people with the.

Focus, but it is true and this is by the way. This is a team that goes to the diligence meetings.

Veteran experience, so brian's very grateful.

The graveyard, so all the people with the.

Okay, I think I said, Andrew is going to be next and then Peter.

Veteran experience, so brian's very grateful.

Speaker Change: The company so like I said, we're really fuzzy, but we do recognize the fact that we have an unlevered balance sheet pristine.

Thank you Andrea Teixeira from Jpmorgan. So my question like I have a question on the organic growth themes of 'twenty 'twenty four and then one on a follow up on M&A.

Okay, I think I said, Andrew is going to be next and then Peter.

Thank you Andrea <unk> from J P. Morgan. So my question like I have a question on the organic growth seems to 'twenty 'twenty four and then one on a falloff on M&A.

Speaker Change: It could be building up a lot of cash if we don't do that so this time next year, we haven't done a deal obviously, we'd be looking at a lot harder at buybacks.

First on the organic growth for 2024, I understood you mentioned, Rick two thirds coming from volumes. So if my math is correct is about 3%.

Speaker Change: The only thing I would add is.

First on the organic growth for 2024 I understood you mentioned, Rick two thirds coming from volume. So if my math is correct is about 3%.

Speaker Change: We're in a great position like a weird never chased after a deal just to do a deal and we say no a lot we have a lot of rigor around that this team on the stage spends a lot of their time doing due diligence and Brian leads that in a big way.

Volume growth for 2024, and with your and so kind of like with your cadence of EPS being zero. The first half than the first half is the easiest comp for volume can you walk us through.

Speaker Change: So when you have a great performing business you never forced to reach for a deal and so we are again just the rigor around that so we'll let the cash build as he said if it builds for a period of time that we'll look at doing buyback. Meanwhile, at five or 6% interest it's fine to be on the balance sheet.

Number one.

Eagles last question.

Getting hero and Terra bras and all of those with more ACD and then having the easy comps for Vms and then the launches of boundary how we should be thinking of that cadence for organic volume and then the follow up on M&A is that like what are the categories that you believe you should have better by Grove over.

Number one.

Eagles last question Yeah.

Speaker Change: He might be encouraged by the fact that we've doubled the size of our M&A team.

Speaker Change: So for US I joined in 2006.

Speaker Change: And Brian joined in 2006, and 'twenty to 'twenty three we added another person so.

Greenfield Thank you.

I'll do the M&A. One so is your focus your question about what categories would be focused on.

We're very lean out.

Speaker Change: Yeah.

Greenfield Thank you.

Speaker Change: Hey Man I'm Gonna went up that we're tripling that in 2024 with our European footprint now that's true.

I'll do the M&A one so.

I mean, if you look at the what you can only buy what's for sale.

Is your focus your question about what categories would be focused on yes.

We venture into lots of different categories, we will not venture into devices, but we look at it where household or personal care.

Yeah, well I mean look at the what you can only buy what's for sale and.

Speaker Change: We're in the hunt to hire somebody in Europe, and also in Singapore, and Asia Pacific. So we didn't deal flow outside the U S. Because historically, it's more U S centric our focus but it is true and this is by the way. This is a team that goes to the diligence meetings.

Yeah.

We venture into lots of different categories, we will not venture into devices, but we look at it where household or personal care again, it has to be how GOR. How good is the brand. How good is the brand equity the economics, obviously matter, but what do we bring to the table are we a good owner so we have a pretty wide lens.

Again, it has to be how GOR. How good is the brand how good is the brand equity economics, I would say matter, but what do we bring to the table are we a good owner. So we have to have a pretty wide lens.

Speaker Change: The graveyard, so all the people with the veteran experience Bryan very grateful.

The types of brands and products that we'll look at but again, it's got to be.

Speaker Change: Okay, I think I said, Andrew is going to be next and then Peter.

Fast moving consumable, but we don't have we don't target. So one thing we don't do so Brian doesn't spend all day long looking at categories, let's say wouldn't it be wonderful to own that brand.

The types of brands and products that we'll look at but again, it's got to be a fast moving consumable, but we don't have we don't target. So one thing we don't do so Brian doesn't spend all day long looking at categories, I say wouldn't it be wonderful to own that brand.

Speaker Change: Thank you Andrea Teixeira from JP Morgan. So my question, Mike and I have a question on the organic growth into 2024, and then one on a follow up on M&A first.

Yeah, but they're not for sale so it's been anytime when those powerpoints.

Andrea F. Teixeira: First on the organic growth for 2024 I understood you mentioned, Rick two thirds coming from volume. So if my math is correct is about 3%.

Want to make sure is that we're in the deal flow that anything that's for sale, we know about it. So we can look at it that's that's most important.

Yeah, but they're not for sale. So it's been anytime when those powerpoints, but we want to make sure is that we're in the deal flow that anything that's for sale. We know about so we can look at it that's that's most important.

In terms of cadence for organic it's pretty our expectation is pretty consistent throughout the year right. Our outlook is for it to 5% our Q1 numbers for but in general it's pretty consistent throughout the year, there's lots of things underneath that whether its campaign brown to a concentration in laundry and when that happened whether it's.

Volume growth for 2024, and with your and so kind of like with your cadence of EPS being zero. The first half than the first half is the easiest comp for volume can you walk us through.

In terms of cadence for organic it's pretty our expectation is pretty consistent throughout the year right. Our outlook is 45% of our Q1 numbers for but in general it's pretty consistent throughout the year, there's lots of things underneath that whether its campaign brown to a concentration in laundry and when that happened whether it's.

Andrea F. Teixeira: Number one.

Speaker Change: Eagles last question Yeah.

Speaker Change: Getting hero and Terra bras and all of those with more ACD and then having the easy comps for Vms and then the launches of boundary how we should be thinking of that cadence for organic volume and then a follow up on M&A is that like what are the categories that you believe you should have better by growth over <unk>.

Vitamin category and assumptions.

So theres a lot of puts and takes but I'd say in general it's a it's a pretty consistent growth throughout the year.

Vitamin category and assumptions.

Okay, Peter you're next.

So theres a lot of puts and takes but I'd say in general it's a it's a pretty consistent growth throughout the year.

So, let's keep it at that table so happy.

Okay, Peter you're next.

Sure.

Speaker Change: Greenfield.

So right so let's keep it at that table so happy.

Maybe just following up on the phasing, but more on the gross margin side, some 50 to 75.

Speaker Change: I'll do the M&A one so.

Sure.

Speaker Change: Is your focus your question about what categories would be focused on.

Maybe just following up on the phasing, but more on the gross margin side, some 50 to 75.

Still above your new evergreen target, but just in the context of exiting the year with 200 basis points plus can you maybe just give us a sense for how we should be thinking about gross margin expansion for the year is it more front half weighted versus back half just any color there and then last year.

Speaker Change: I mean, if you look at the what you can only buy what's for sale and.

Still above your new evergreen target, but just in the context of exiting the year with 200 basis points plus can you maybe just give us a sense for how we should be thinking about gross margin expansion kind of for the year is it more front half weighted versus back half just any color there and then last year.

Speaker Change: We venture into lots of different categories, we will not venture into devices, but we look at it where household or personal care again, it has to be how GOR. How good is the brand how good is the brand equity.

You delivered upside like sales came in better gross margin came in better, but you chose to reinvest some of that back into marketing.

Speaker Change: The economics, obviously matter, but what do we bring to the table are we a good owner.

You delivered upside like sales came in better gross margin came in better, but you chose to reinvest some of that back into marketing.

If that were to play out again this year, how should we think about the balance of reinvestment versus dropping more of that to the bottom line.

Speaker Change: So we have to have a pretty wide lens of the types of brands and products that we'll look at but again, it's got to be a fast moving consumable, but we don't have we don't target. So one thing we don't want the brand doesn't spend all day long looking at categories, I say wouldn't be wonderful to own that brand.

If that were to play out again this year, how should we think about the balance of reinvestment versus dropping more of that to the bottom line.

Yeah. Okay. So the first one is on gross margin cadence 50 to 75 for the year. We do expect gross margin in the first half to be a little bit better why because we are pricing carryover that's happening.

Speaker Change: Yeah, but they're not for sale. So it's been anytime when those powerpoints, but we want to make sure is that we're in the deal flow that anything that's for sale. We know about so we can look at it.

A bit still in the first half of the year that wasn't there so gross margin a little bit better than the front half in the back half.

And then your second question.

Was on.

Speaker Change: Support.

Speaker Change: In terms of cadence for organic it's pretty our expectation is pretty consistent throughout the year right. Our outlook is 45% of our Q1 numbers for but in general it's pretty consistent throughout the year, there's lots of things underneath that whether it's comping brown to a concentration in laundry and when that happened whether it's.

And then your second question.

Oh, yes, our marketing investment and stuff like that okay.

Was on.

Look the scorecard last year was kind of a unique right. We wanted to build back the war chest on marketing because they've got too low during the COVID-19 because we were outside of <unk>.

Oh, yes, our marketing investment and stuff like that okay.

Look the scorecard last year was kind of a unique right. We wanted to build back the war chest on marketing because they've got too low during the COVID-19 because we were outside of <unk>.

We were out of stock we didn't have the supply all of those reasons and so we did that a year at a time, we really initially said we're gonna go to 10 and a half and then 11 this year when we fast forward it put them back to 11 and.

Speaker Change:

We were out of stock we didn't have the supply all of those reasons and so we did that a year at a time, we really initially said we're gonna go to 10 and a half and then 11. This year when we fast forward you put them back to 11.

Speaker Change: Vitamin category and assumptions.

Speaker Change: So theres a lot of puts and takes but I'd say in general it's a it's a pretty consistent growth throughout the year.

We think 11% the right number but with that said share matters share is the scorecard to tell you if you're the right number right now we're getting share in about 60% of our sales that is a good metric and good scorecard. So right now we believe that number is the right number.

Speaker Change: Okay, Peter you're next.

We think 11% the right number but with that said share matters share is the scorecard to tell you if you're the right number right now, we're gaining share and about 60% of our sales that is a good metric and good scorecard. So right now we believe that number is the right number.

Speaker Change: Yeah.

Peter: So, let's keep it at that table so happy.

Speaker Change: Sure.

Peter: Maybe just following up on the phasing, but more on the gross margin side, some 50 to 75.

Yeah, and the other thing Peter I'm sure Barry Bruno put his hand up for spending more marketing money extent, there were where we got a lot of new products to support out there, yes, but look when you got all these new products launch and it's a target rich environment. There's lots of places that we could spend money, where we get the sheets. They were just came out with that.

Peter: Still above your new evergreen target, but just in the context of exiting the year with 200 basis points plus can you maybe just give us a sense for how we should be thinking about gross margin expansion kind of for the year is it more front half weighted versus back half just any color there and then last year.

Yeah, and the other thing Peter I'm sure Barry Bruno put his hand up for spending more marketing money sent the word where we've got a lot of new products to support out there, yes, but look it when you've got all these new products launch and it's a target rich environment. There's lots of places that we could spend money, where we get the sheets. They were just came out with there is an awareness about that you guys mentioned, though.

There is an awareness about that you guys mentioned, though there were two two and pull that out but there is lots of opportunity.

Peter: You delivered upside like sales came in better gross margin came in better, but you chose to reinvest some of that back into marketing.

There were two two.

Alright. Thank you analytical from Bank of America I was wondering in your evergreen model with the recent revision today, how much is that driven by the success of your more recent acquisitions like hero and thorough breadth versus the growth of the remainder of the portfolio.

Blow that out but yes.

Peter: If that were to play out again this year, how should we think about the balance of reinvestment versus dropping more of that to the bottom line.

Lots of opportunity.

Alright. Thank you analyst from Bank of America I was wondering in your evergreen model with the recent revision today, how much is that driven by the success of your more recent acquisitions like hero and thorough breadth versus the growth of the remainder of the portfolio.

Speaker Change: Yeah. Okay. So the first one is on gross margin cadence 50 to 75 for the year. We do expect gross margin in the first half to be a little bit better why because we are pricing carryover that's happening.

Look everybody is aware of the fact that we got two fast growing brands, but this is not just a one year look it's because we've grown 4% for 10 years in a row.

Speaker Change: A bit still in the first half of the year that wasn't there so gross margin a little better than the front half in the back half.

Look everybody is aware of the fact that we got two fast growing brands, but this is not just a one year look it's because we've grown 4% for 10 years in a row.

The stable of your portfolio can change over time, and obviously, we got to fast moving once we'll have other ones in the future. So we used to see if it's sustainable and clearly a sustainable for next couple of years because of those two.

Speaker Change: And then your second question.

Speaker Change: Was on.

Speaker Change:

Speaker Change: Oh, yes, our marketing investment and stuff like that okay.

Yeah, no it's not.

Speaker Change: Look the scorecard last year was a kind of a unique right. We wanted to build back the war chest on marketing because they've got too low during the COVID-19 because we were outside of <unk>.

Cause effects.

I would also add that in 2023, the rest of the portfolio ex their breath next year.

Yes, no it does not cause effects.

Hit or exceed our evergreen model. So we feel great about the strength of the portfolio.

I would also add that in 2023, the rest of the portfolio ex their breath next year.

Speaker Change: We were out of stock we didn't have the supply all of those reasons and so we did that a year at a time, we really initially said, we're going to have a turn and a half and then 11. This year when we fast forward it to put it back to 11.

Yeah. That's a good point. So if you think about that 5% growth and a five 3% growth in 2020 three.

Hit or exceed our evergreen model. So we felt great about the strength of the portfolio.

Yeah. That's a good point. So if you think back that 5% growth and a five 3% growth in 2020 three.

Today more than half of that came from business ex their revenue in Europe.

Speaker Change: We think 11% the right number but with that said share matters share is the scorecard to tell you if you're the right number right now, we're gaining share and about 60% of our sales that is a good metric and good scorecard. So right now we believe that number is the right number.

The base business is strong.

Today more than half of that came from business ex the arithmetic and hero.

Okay.

Let's move over to the far tables now.

The base business is strong.

And co mail Gujranwala Jefferies.

Okay.

Let's move over to the floor our tables now.

Speaker Change: Yeah, and the other thing Peter I'm sure Barry Bruno put his hand up for spending more marketing money. The extent that we're we've got a lot of new products to support out there, yes, but look it when you've got all these new products launch and it's a target rich environment. There's lots of places we can spend money. It will get the sheets thing, we just came out with that.

It makes a lot of logical sense, why you've narrowed it down to seven focus brands with the most growth does that open up the door for divestitures and some of your other categories.

And co mail Gujranwala Jefferies.

It makes a lot of logical sense, why you've narrowed it down to seven focus brands with the most growth does that open up the door for divestitures and some of your other categories.

And that question in the past then we evaluate all of our brands are regularly.

Because everything's got to pull their weight, but I wouldn't say that that signals anything or do you see that mega lag is one that we've looked at that for a while it had good years and bad years, but consider that's become commoditized. So we think we should.

And that question in the past then we reevaluate all of our brands are regularly.

Speaker Change: There is an awareness about that you guys spent some dough.

Because everything's got to got to pull their weight, but I wouldn't say that that signals anything or do you see that mega lag is one that we've looked at that for a while it had good years and bad years, but consider that's become Commoditized, we think we should.

Speaker Change: To employ.

That out, but there is lots of opportunity.

Speaker Change: Alright. Thank you analyst from Bank of America I was wondering in your evergreen model with the recent revision today, how much is that driven by the success of your more recent acquisitions like hero and thorough breadth versus the growth of the remainder of the portfolio.

Move it out but yes, it's a regular analysis that we do as a company.

Moving out, but yes, it's a regular analysis that we do as a company.

Got it and the second question on Hero 40 countries it sounds like.

Can you maybe just walk through the process why you feel comfortable there's that much demand and that many different places do you have the supply how would you balance of marketing I'm, just going over that little more okay, let's start with supply. So we're explorers take a swing that they can supply 40 countries.

Got it and the second question on Hero 40 countries it sounds like.

Speaker Change: Look everybody is aware of the fact that we got two fast growing brands, but this is not just a one year look it's because we've grown 4% for 10 years in a row and the stable of your portfolio can change over time, and obviously, we got to fast moving once we'll have other ones in the future. So we have to see if it's sustainable and clearly a sustainable for next couple of years.

A lot can you maybe just walk through the process why you feel comfortable there's that much demand and that many different places do you have the supply how would you balance the marketing I'm just going over that little more okay, let's start with supply. So we're explorers ticket swain they can supply 40 countries.

So we have we.

We have a third party manufacturing out Rick Oh, yeah, Okay, that's such a good story.

So we have a.

Speaker Change: Because of those two.

Thank you everybody can hear it.

We have a third party manufacturing Iraq Yep, Okay, that's such a good story.

Speaker Change: Yes, it's not a class effect.

We have a third party manufacturer in South Korea, who who has.

Speaker Change: I would also add that in 2023, the rest of the portfolio ex their breath ex hero.

Thank you everybody can hear it.

A lot of them to grow right now and there are a lot of property and they have committed to us that they will they will put up more buildings and put more lines in place and keep up with our keep up with our demands with new issues on supply at all and in fact, if you look at the growth that we've supported last year.

We have a third party manufacturer in South Korea, who who has.

Speaker Change: Hit or exceed our evergreen model. So we felt great about the strength of the portfolio.

A lot of them to grow right now and they have a lot of property and they are committed to us that they will they will put up more buildings and put more lines in place and keep up with our keep up with our demand. So we have no wishes on supply at all and in fact, if you look at the growth that we've supported last year.

Yeah. That's a good point. So if you think about that 5% growth and a five 3% growth in 2020 three.

Speaker Change: They're more than half of that came from business ex the arithmetic in Europe.

We didn't see all of that coming and they were able to respond and meet that meet that very high demand that we had.

Speaker Change: I'll tell you that the base business is strong.

Speaker Change: Okay.

We didn't see all of that coming and they were able to respond to meet that meet that very high demand that we had.

Maybe maybe Mike you want to comment on the 40 countries, maybe even telling U K story kukui spring for another one and he was up here He's got a mic he's got it okay.

Speaker Change: Move over to the far tables now.

Speaker Change: And co mail Gujranwala Jefferies.

Maybe maybe Mike do you want to comment on the 40 countries, maybe even telling U K story kukui spring for another one of these up here he's got a mic he's got it okay.

Speaker Change: It makes a lot of logical sense, why you've narrowed it down to seven focus brands with the most growth does that open up the door for divestitures and some of your other categories.

Oh, you're right.

Okay, Yeah, what I'd say, just generally across the portfolio, we've had really balanced growth across our five geographic regions and are subsequently healthy and we're doing that we're able to add more brands to our to our business with strong strong appetite from our distributor partners and then onto retail.

Okay.

Youre right.

Speaker Change: And that question in the past and we evaluate all of our brands are regularly.

Okay. Okay, Yeah, what I'd say is there's just generally across the portfolio, we've had really balanced growth across our five geographic regions and are subsequently healthy and we're doing that we're in.

Speaker Change: Because everything's got to pull their weight, but I wouldn't say that signals anything or do you see that mega lag is one that we've built.

I want to add more brands to our to our business with strong strong appetite from our distributor partners and then onto retail.

Speaker Change: Looked at that for a while they had good years and bad years, but consider that's become Commoditized, we think we should.

So here is not the only one we actually have other other opportunities to expand multiple brands across multiple countries, but I think just the success story of hero not only in the U S. But now as we've gone into commercializing into most of our subs already they're already taking number one positions they are really strong.

So here, it's not the only one we actually have other other opportunities to expand multiple brands across multiple countries.

Speaker Change: Moving out, but yes, it's a regular analysis that we do as a company.

Just the success story of of hero not only in the U S. But now as we've gone into commercializing into most of our subs already they're already taking number one positions they have really strong.

Speaker Change: Got it and the second question on Hero 40 countries it sounds like.

Consumption Randy early so we've only been in for two three months, we're already a well established as a brand. So the playbook that clearly played out in the U S. I was playing out beautifully already in the markets that we're in and that just becomes a story that we take to those 40 countries, but we are well poised with.

Speaker Change: Can you maybe just walk through the process why you feel comfortable there's that much demand and that many different places do you have the supply how would you balance the marketing I'm just going over that little more okay, let's start with supply. So we're explorers ticker sway anything he can supply 40 countries.

Consumption really early so we've only been in for two or three months of our already well established as a brand. So the playbook that clearly played out in the U S. I was playing out beautifully already in the markets that we're in and that just becomes a story that we take to those 40 countries, but we are well poised with.

With our distributor partners around the globe to make a big success globally.

Speaker Change: So we have a.

Speaker Change: A third party manufacturing Eirich yep, Okay, that's such a good story.

Then you can tick off.

With our distributor partners around the globe to make a big success globally.

Four or five countries, we've already launched yeah. So just in terms of our registration getting into markets, where we've we've launched in Canada, and we're watching the U K, we launched in Germany, France, Australia, all with a really strong positions great retail partnerships doing well online. So everything that we were hoping for it than that and a little bit more so it's the successes there.

Speaker Change: Make sure everybody can hear it.

Then you can tick off.

Speaker Change: A third party manufacturer in South Korea, who who has.

Four or five countries, we've already launched the yeah. So just in terms of our registration getting into markets, where we've launched in Canada. We've launched in the U K, we launched in Germany, France, Australia, all with a really strong positions great retail partnerships doing well online. So everything that we were hoping for it than that and a little bit more so it's the successes there.

Speaker Change: A lot of them to grow right now and they have a lot of property and they are committed to us that they will they will put up more buildings and put more lines in place and keep up with our keep up with our demand. So we have no wishes on supply at all and in fact, if you look at the growth that we've supported last year.

Every time, we have that repeatable success and the playbook and just adds more momentum for those for those new partners that were trying to bring on.

Speaker Change: We didn't see all of that coming and they were able to respond to meet that meet that very high demand that we had.

Okay.

Thank you Filippo Felonious I wanted to ask you about the promotional environment in your categories, you talked about them at the <unk>.

Okay.

Speaker Change: Maybe maybe Mike do you want to comment on the 40 countries, maybe even until the UK story.

Thank you Filippo for Lauren yesterday, I wanted to ask you about the promotional environment in your categories, you talked about Matt the stepping back on laundry up in.

Tapping back on laundry I bet.

What about the other categories like are you see any need to step up more promotional activity and what youre seeing from your competitors. Thank you. Yeah. We will look at when you're talking about the promotional environment, you're generally talking about household.

Speaker Change: We spring for another one of the things up here He's got a mic he's got it okay.

Speaker Change: Okay.

What about the other categories like are you see any need to step up more promotional activity and what youre seeing from your competitors.

Speaker Change: Sure.

Speaker Change: Okay.

Mike: I'd say, it's just just generally across the portfolio, we've had really balanced growth across our five geographic regions and are subsequently healthy and we're doing that we're able to add more brands to our to our business with strong strong appetite from our distributor partners and then onto retail.

So that is where you have by far the most promotions coupons et cetera et cetera. So if you look at say <unk>.

Yeah, we will look at when you talk about the promotional environment, you're generally talking about household.

So that is where you have by far the most promotions coupons etcetera etcetera. So if you look at say <unk>.

Liquid laundry detergent.

Unit dose scent boosters sequentially Q3 to Q4 actually sold on deal was declined.

Mike: So here is not the only one we actually have other other opportunities to expand multiple brands across multiple countries.

Liquid laundry detergent.

Unit dose scent boosters sequentially Q3 to Q4 actually sold on deal was declined.

No.

Mike: Just the success story of of hero not only in the U S. But now as we've gone into commercializing into most of our subs already they're already taking number one positions they have really strong.

It went the other way with cat litter. So cat litter was up 70 basis points sequentially from Q3 Q4.

No.

It went the other way with cat litter. So cat litter was up 70 basis points sequentially from Q3 Q4, but if you look at the the numbers historically literate around 15% sold on deal today. If you went back 2019 or 18. It was 20% so it's nowhere near where.

If you look at the the numbers historically literate around 15% sold on deal today. If you went back 2019 or 18. It was 20%. So it's nowhere near where you have historical levels. The same is true for say liquid laundry detergent, it's 33% in Q4.

Mike: Consumption really early so we've only been in for two or three months of our already well established as a brand. So the playbook that clearly played out in the U S. I was playing out beautifully already in the markets that we're in and that just becomes a story that we take to those 40 countries, but we are well poised with our with our distributor partners around the globe to make a big success globally.

You have historical levels. The same is true for civil liquid laundry detergent, it's 33% in Q4.

Have to go back again.

Mike: Then you can take off.

Quite a few years and I think the high watermark with almost 40% quite a while ago. Because then yes. It is quite a while ago. So you got to stay yourself Hey.

Mike: Four or five countries, we've already launched the yeah. So just in terms of our registration getting into markets, where we've launched in Canada. We launched in the U K, we launched in Germany, France, Australia, all with a really strong positions great retail partnerships doing well online. So everything that we were hoping for it than that and a little bit more so it's the successes there.

Have to go back again.

Quite a few years and I think the high watermark with almost 40%.

Oil suppliers have have absorbed this is huge.

A while ago because as it is quite a while ago. So you got to say to yourself Hey.

Cost increases had a raise price as it is is it sensible to think that this is gonna be dealt back.

Suppliers have have absorbed this is huge.

Cost increases had to raise price as it is is it sensible to think that this is going to be dealt back.

So I think if you look at the trend you would say probably not.

Mike: Every time, we have that repeatable success in the play book and just adds more momentum for those for those new partners that were trying to bring on.

Just that the trend line.

So I think if you look at the trend you'd say probably not.

Yep.

Okay.

Mike: Okay.

A microphone over here.

Speaker Change: Thank you Filippo for Lauren yesterday, I wanted to ask you about the promotional environment in your categories, you talked about Matt the stepping back on laundry up in what about the other categories. Like are you see any need to step up more promotional activity and what you're seeing from your competitors.

Just to look at the trend line.

Yeah.

Okay.

Javier Escalante Evercore, if we can talk again, a little bit the opposite to M&A. The two acquisitions that you made seems to have more extended ability into adjacencies.

Michael microphone over here.

Javier Escalante Evercore.

If we can talk again, a little bit the opposite to M&A. The two acquisitions that you made seems to have more extended ability into adjacencies.

Speaker Change: Yeah, we will look at when you talk about the promotional environment, you're generally talking about household.

At our peak doesn't come across that way, but.

Hero hero brands.

Speaker Change: So that's where you have by far the most promotions coupons etcetera etcetera. So if you look at say <unk>.

Seem to be Adjacencies have you when you talk about that whether that inform also.

At our peak doesn't come across that way.

Hero in Nebraska.

Seem to be Adjacencies have you and you talk about that whether that inform also.

The 4% that probably is five if you then you're targeting internally if you can talk about that.

Speaker Change: Liquid laundry detergent.

Unit dose scent boosters sequentially Q3 to Q4 actually sold on deal was declined.

The 4% that probably is five if you then you're targeting internally if you can talk about that.

Yeah.

It was the last part of that before is actually you mentioned that your first hub that you thought it was four and you are promising three perhaps now you think that is five.

Speaker Change: No.

Yeah.

Speaker Change: It went the other way with cat litter. So cat litter was up 70 basis points sequentially from Q3 Q4, but if you look at the the numbers historically the literate around 15% sold on deal today. If you went back 2019 or 18. It was 20% so it's nowhere near where.

What was the last part of that before is actually you mentioned that your first hub that you thought it was four and you are promising three perhaps now you think that is five.

Before.

You had mentioned.

That's one way to think about it.

From us before.

Yeah.

Kevin It's Jim.

We wouldn't really comment on what our internal expectations are but why don't we answer how extendable as hero in there, but the other yeah, well I'll start off and then Barry you pile on or so.

That's one way to think about it.

Speaker Change: You have historical levels. The same is true for civil liquid laundry detergent, it's 33% in Q4.

We wouldn't really comment on what our internal expectations are but why don't we answer Hal extendable as hero and third other yeah, well I'll start off and then Barry you pile on her.

So we bought a business that that disrupted a category. So the category was a $500 million category in the U S.

Speaker Change: Have to go back again.

Speaker Change: Quite a few years and I think the high watermark with almost 40%.

So we bought a business that that disrupted a category. So the category was a $500 million category in the U S.

Four or five years ago, and then this new form comes along that's a billion dollar category and.

Speaker Change: A while ago because as it is quite a while ago. So you don't have to say to yourself hey.

Four or five years ago, and then it's new form comes along Outspending dog category and Stu.

Speaker Change: Suppliers have have absorbed this is huge.

Still growing so we said hey, what you really wanted to see I wanted to get distracted you want to really do a great job.

Speaker Change: Cost increases had to raise price as it is is it sensible to think that this is going to be dealt back.

It's still growing so we've said hey, what you really wanted to say I want to get distracted you want to really do a great job.

With household penetration of patches in the United States and also taking it globally. So that's that's where our focus is but there are opportunities to go elsewhere.

Speaker Change: So I think if you look at the trend you'd say probably not.

With household penetration of patches in the United States and also taking it globally. So that's that's where our focus but there are opportunities to go elsewhere.

Speaker Change: Is that the trend line.

Yes for sure both of them are extendable Theres no question about it right oral care and skin care two giant categories, depending on how you define them. Both brands are so strong that they are absolutely expandable. It's a balancing act of doing the right job at the right time and not getting over your skis too fast. So I would say, it's not a question of.

Speaker Change: Yep.

Speaker Change: Okay.

Speaker Change: Michael microphone over here.

For sure both of them are extendable Theres no question about it right oral care and skin care two giant categories, depending on how you define them. Both brands are so strong that they are absolutely expandable. It's a balancing act of doing the right job at the right time and not getting over your skis too fast. So I would say, it's not a question of.

Javier Escalante Evercore.

Joseph Nicholas Altobello: If we can talk again, a little bit the opposite to M&A. The two acquisitions that you made seems to have more extended ability into adjacencies.

Or if it's win and we've got an absolute plan about adjacencies to move into for each brand, they're super strong brands consumers are asking for more and more from us. It's tempting to go faster, we just want to support them in the right way, especially their foundation products.

Speaker Change: At our peak doesn't come across that way.

If it's win and we've got an absolute plan about adjacencies to venture for each brand, they're super strong brands consumers are asking for more and more from US. It's tempting to go faster, we just want to support them in the right way, especially their foundation products.

Speaker Change: Hero and a breath.

Joseph Nicholas Altobello: Seem to be Adjacencies have you and you talk about that whether that inform also.

I'll be getting emails from people in marketing and new products tomorrow, because youre on their team.

Joseph Nicholas Altobello: 4% that probably is five ish and then you're targeting internally if you can talk about that.

We should be going into adjacent categories more quickly, but I think a slow roll it's going to pay off long term great.

I'll be getting emails from people in marketing and new products tomorrow, because youre on their team.

Joseph Nicholas Altobello: Yeah.

Joseph Nicholas Altobello: It was the last part of that before is actually you mentioned that you first hub that you thought it was four and you are promising three perhaps now you think that is five.

I wish I could go into adjacent categories more quickly, but I think a slow roll it's going to pay off long term.

Great.

Okay, I think that anybody else that Olivia it's been waiting.

Great.

Okay, I think that.

Olivia So sorry Dead Center.

Joseph Nicholas Altobello: Pharmacy before.

Anybody else that Olivier has been waiting.

Kevin: Kevin It's Jim.

Thank you.

Speaker Change: That's one way to think about it.

Olivia So sorry Dead Center.

I just wanted to ask you Rick about the SG&A target coming in a little bit and if you could give a little bit more color behind that.

Speaker Change: Yeah.

Speaker Change: We wouldn't really comment on what our internal expectations are but why don't we answer how extendable as hero and thorough about the other yeah, well I'll start off and then Barry you pile on her.

Thank you.

I just wanted to ask you Rick about the SG&A target coming in a little bit and if you could give a little bit more color behind that.

Does it reflects incremental investment in certain areas in terms of operations or is it more a function of.

Joseph Nicholas Altobello: So we bought a business that that disrupted a category. So the category was a $500 million category in the U S.

Does it reflect incremental investment in certain areas in terms of operations or is it more a function of.

Lower leverage even though the organic sales target is coming up.

And then just on the sort of narrowing and consolidation of power brands what does that.

Lower leverage even though the organic sales target is coming up.

Joseph Nicholas Altobello: Four or five years ago, and then it's new form comes along that billion dollar category and Stu.

And then just on the sort of narrowing and consolidation of power brands what is that.

Does that suggest anything in terms of the ones that arent part of Osama bin Salman.

Stu: It's still growing so we've said hey, what you really wanted to say I want to get distracted you want to really do a great job.

Imagine that there there is no change in terms of Resourcing. Its just a function of how you are calling it but just wanted to make sure that I clarify that thank you yeah. So the second one first we've been managing the business with classifying our brands in a certain way for a very long time and resources.

Does that suggest anything in terms of the ones that arent part of Osama bin Salman.

And that they are there's no change in terms of resource you can just a function of how you are calling it but just wanted to make sure that I clarify that thank you.

Stu: With household penetration of patches in the United States and also taking it globally. So that's that's where our focus is but there are opportunities to go elsewhere.

The second one first we've been managing the business with classified our brands in a certain way for very long time and resources.

Stu: For sure both of them are extendable Theres no question about it right oral care and skin care two giant categories, depending on how you define them. Both brands are so strong that they are absolutely expandable. It's a balancing act of doing the right job at the right time and not getting over your skis too fast. So I would say, it's not a question of.

Resources brands in a certain way.

Depending on that classification and that is not changing right. That's our internal this is to help simplify when we talk outside.

Resources brands in a certain way.

Depending on that classification.

Is that changing alright, that's our internal this is to help simplify when we talk outside what those brands represent and narrow the conversation because those are what are driving kind of whether it's top line moves or margin expands or earnings. So that's kind of the purpose.

What those brands represent and narrow the conversation because those are what are driving kind of whether it's top line moves or margin expands or earnings. So that's kind of the purpose.

Stu: If it's win and we've got an absolute plan about adjacencies to venture for each brand, they're super strong brands consumers are asking for more and more from US. It's tempting to go faster, we just want to support them in the right way, especially their foundation products.

Your first question on SG&A I think you talk about the outlook really the evergreen model.

Yeah dollars or higher in general or getting leverage for two reasons really primarily because we're growing faster than the top line is what we're doing we're also spending money as we've been talking about for a long time on investments in analytics automation now we're trying to take hundreds of thousands of hours out over the next three to five years and we're not going to.

Your first question on SG&A I think you talked about the outlook really the evergreen model.

Speaker Change: I'll be getting emails from people in marketing and new products tomorrow, because you're on their team.

Yeah dollars or higher in general or getting leverage for two reasons really primarily because of we're growing faster than the top line is what we're doing we're also spending money as we've been talking about for a long time on investments in analytics automation now we're trying to take hundreds of thousands of hours out over the next three to five years and we're not going to renew.

Speaker Change: I wish I could go into adjacent categories more quickly, but I think a slow roll it's going to pay off long term.

Speaker Change: Great.

Speaker Change: Okay, I think that.

Reduce people, we're going to not add people when we scale bright and making the assistant investments in ERP systems, not so that we can.

Speaker Change: Anybody else that Olivia it's been waiting.

Speaker Change: Olivia So sorry Dead Center.

<unk> people, we're going to not add people when we scale bright or in making these system investments in ERP systems, not so that we can.

Olivia: Thank you.

Olivia: I just wanted to ask you Rick about the SG&A target coming in a little bit and if you could give a little bit more color behind that.

Have a a workforce that's reduced because as we grow from 6 billion to 7 billion to $8 billion. The ERP system can handle that type of growth.

Have a work force is reduced because as we grow from 6 billion to $7 billion to 8 billion. The ERP system can handle that type of growth.

Olivia: Does it reflects incremental investment in certain areas in terms of operations or is it more a function of.

A short answer.

Okay.

Olivia: Lower leverage even though the organic sales target is coming up.

I think we're good hey, thanks, everybody for joining us.

A short answer.

Olivia: And then just on the sort of narrowing and consolidation of power brands what is that.

Okay.

Thank you.

I think we're good hey, thanks, everybody for joining us.

Olivia: Does that suggest anything in terms of the ones that arent part of Osama bin Salman.

Thank you.

Olivia: Matching that there there is no change in terms of resource you can just a function of how you are calling it but just wanted to make sure that I clarify that thank you.

Olivia: The second one first we've been managing the business with classified our brands in a certain way for a very long time and the resources.

Olivia: Resources brands in a certain way.

Olivia: Depending on that classification and that is not changing alright, that's our internal this is to help simplify our when we talk outside what those brands represent and narrow the conversation because those are what are driving kind of whether it's top line moves or margin expands or earnings. So that's kind of the purpose.

Olivia: Your first question on SG&A I think you talked about the outlook really the evergreen model.

Olivia: Yeah dollars or higher in general or getting leverage for two reasons really primarily because of we're growing faster than the top line is what we're doing we're also spending money as we've been talking about for a long time on investments in analytics automation now we're trying to take hundreds of thousands of hours out over the next three to five years.

Olivia: Not going to reduce people, we're going to not add people when we scale bright and making these system investments in ERP systems, not so that we can.

Olivia: Have a work force is reduced because as we grow from 6 billion to $7 billion to $8 billion. The ERP system can handle that type of growth.

Speaker Change: A short answer.

Speaker Change: Okay.

Speaker Change: I think we're good hey, thanks, everybody for joining us.

Speaker Change: Thank you.

Speaker Change: Okay.

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