Q1 2025 Prestige Consumer Healthcare Inc Earnings Call

Operator: Good day, and thank you for standing by. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. I would now like to hand the conference over to your first speaker today, Phil Terpolilli, Vice President, Investor Relations, and Treasury.

Good day, and thank you for standing by.

Operator: Thanks for watching! Good day, and thank you for standing by. Welcome to the Q1 2025 Prestige Consumer Healthcare, Inc. Earnings Conference Call. This time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press * one on your telephone. You will then hear an automated message advising that your hand is raised.

Good day, and thank you for standing by.

Operator: Welcome to the Q1 2025 Prestige Consumer Healthcare earnings conference call.

Speaker Change: Welcome to the Q1, 'twenty 'twenty five prestige consumer Healthcare, Inc earnings Conference call.

This time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press Star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again.

Speaker Change: At this time all participants are in a listen only mode.

After the speaker's presentation, there will be a question and answer session.

Speaker Change: Ask a question during this session you will need to press star one one on your telephone.

Speaker Change: Then here an automated message advising that your hand as rates.

The withdraw your question. Please press star one again.

Please be advised that today's conference is being recorded.

Operator: To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Phil Terpolilli, Vice President, Investor Relations and Treasury.

Speaker Change: Please be advised that today's conference is being recorded.

Bill Terpolilli: I would now like to hand the conference over to your first speaker today, Bill Terpolilli, Vice President, Investor Relations and Treasury.

Philip Terpolilli: Thanks, Operator. And thank you to everyone who has joined us today.

Speaker Change: I would now like to hand, the conference over to your first speaker today.

Chip Lilly, Vice President Investor Relations and Treasury.

Ronald Lombardi: Please go ahead. Thanks operator, and thank you to everyone who has joined today. And the call of me, Ronald Lombardi, our chairman, president, and CEO, and Christine Sacco, our CFO.

Speaker Change: Please go ahead.

Philip Terpolilli: On the call with me are Ronald Lombardi, our Chairman, President, and CEO, and Christine Sacco, our CFO. On today's call, we'll review our first quarter fiscal 25 results, discuss the full year outlook, and then take questions from analysts. A slide presentation accompanies today's call and can be accessed by visiting PrestigeConsumerHealthcare.com.

Phil Terpolilli: Thanks, Operator. And thank you to everyone who has joined us today.

Chip Lilly: Thanks, operator, and thank you to everyone who has joined today on the call with me are Ron Lombardi, Our chairman, President and CEO and Christine Sacco our CFO.

Phil Terpolilli: On the call with me are Ronald Lombardi, our Chairman, President, and CEO, and Christine Sacco, our CFO. On today's call, we'll review our first quarter fiscal 25 results, discuss the full year outlook, and then take questions from analysts. A slide presentation accompanies today's call and can be accessed by visiting PrestigeConsumerHealthcare.com.

Ronald Lombardi: On today's call, we will review our first quarter fiscal 25 results, discuss the full-year outlook, and then take questions from analysts. A slide presentation at companies today is called. It can be accessed by visiting Prestige Consumer Healthcare.com, clicking on the Investors' link, and then on today's webcast and presentation. Please remember some of the information contained in the presentation today, including non-GAMF financial measures. Reconciliation to the nearest GAMF financial measures are included in our earnings release and slide presentation.

Speaker Change: On today's call will review, our first quarter fiscal 'twenty five results discuss the full year outlook and then take questions from analysts.

Speaker Change: A slide presentation accompanies today's call it can be accessed by visiting prestige consumer healthcare dot com.

Philip Terpolilli: Clicking on the investors link and then on today's webcast and presentation. Please remember some of the information contained in the presentation today includes non-GAAP financial measures. Reconciliations to the nearest comparable GAAP financial measures are included in our earnings release and slide presentation. This means results could change at any time, and the forecasted impact of risk considerations is the best estimate based on the information available as of today's date.

Phil Terpolilli: Clicking on the investors link and then on today's webcast and presentation. Please remember some of the information contained in the presentation today includes non-GAAP financial measures. Reconciliations to the nearest gap financial measures are included in our earnings release and slide presentation. On today's call, Manchin will make forward-looking statements around risks and uncertainties, which are detailed in a complete Safe Harbor Disclosure on page 2 of the slide presentation, which accompanies the call

Speaker Change: Clicking on the investors link and then on today's webcast and presentation.

Speaker Change: Please remember some of the information contained in the presentation today includes non-GAAP financial measures.

Speaker Change: Reconciliations to the nearest GAAP financial measures are included in our earnings release and slide presentation.

On today's call, we will make forelooking statements around risks and uncertainties, which are detailed at a complete safe harbor disclosure on page 2 of the slide presentation, which accompanies the call. These are important to review and contemplate. Business environment uncertainty remains heightened due to supply chain constraints and high inflation, which have numerous potential impacts. This means results could change at any time, and the forecast impact of risk considerations is the best estimate based on the information available as of today's date.

Speaker Change: On today's call Mitchell make forward looking statements around risks and uncertainties, which are detailed in a complete safe harbor disclosure on page two of the slide presentation, which accompanies the call.

Phil Terpolilli: These are important to review and contemplate. Business environment uncertainty remains heightened due to supply chain constraints and high inflation, which have numerous potential impacts. This means results can change at any time, and the forecasted impact of risk considerations is the best estimate based on the information available as of today's date. Further information concerning risk factors and cautionary statements is available in our most recent SEC filings and recent Company 10 cases. Now I'll hand it over to our CEO, Ron Lombardi. Ron?

Mitchell: These are important to review and contemplate business environment uncertainty remains heightened due to supply chain constraints high inflation, you have numerous potential impacts.

Speaker Change: This means results could change at any time and the forecasted impact of risk considerations is the best estimate based on the information available as of today's date.

Further information concerning risk factors and cautionary statements are available at our most recent SEC filing and most recent company 10-K.

Speaker Change: Further information concerning risk factors and cautionary statements are available in our most recent SEC filings and most recent company 10-K.

Ronald Lombardi: Now handed over to our CEO, Ronald Lombardi.

Philip Terpolilli: Now I'll hand it over to our CEO, Ron Lombardi. Ron?

Speaker Change: Now I'll hand, it over to our CEO Ron Lombardi Ron.

Ron? Thanks, though.

Ronald Lombardi: Thanks, Phil. Let's begin on slide 5.

Ronald Lombardi: Thanks, Phil. Let's begin on slide 5. We are encouraged with our start to the year. Q1 exceeded our sales and earnings expectations set back in May. Although our diverse portfolio continues to experience solid consumption trends thanks to our proven brand-building strategy and investment, sales of $267 million declined versus the prior year, largely due to supply chain challenges and clear eyes that were expected. However, the impact was better than forecast thanks to improving production trends and our ability to expedite shipments to retailers, which aligns with our focus on service.

Let's begin on slide five. We are encouraged with our start to the year. Q1 exceeded our sales and earnings expectations set back in May. Our diverse portfolio continues to experience solid consumption trends thanks to our proven brand building strategy and investments. Sales of 267 million decline versus the prior year largely due to supply chain challenges and clear eyes that were expected. However, the impact was better than forecast, thanks to improving production trends and our ability to expedite shipments to retailers that aligns with our focus on service. Meanwhile, the quarter also benefited from continued strong international growth that was broad-based and led by our Hydrolyte brand.

Ron Lombardi: Thanks, Bill, let's begin on slide five.

Ronald Lombardi: We are encouraged with our start to the year. Q1 exceeded our sales and earnings expectations set back in May. Our diverse portfolio continues to experience solid consumption trends thanks to our proven brand building strategy and investment. However, the impact was better than forecast thanks to improving production trends and our ability to expedite shipments to retailers, which aligns with our focus on service. Free cash flow of $54 million grew versus the prior year and continues to enable capital deployment that is used to enhance shareholder value. In Q1, we reduced debt by $35 million while still repurchasing about $25 million in shares and maintaining a leverage ratio of 2.8 times.

Ron Lombardi: We are encouraged with our start to the year Q1 exceeded our sales and earnings expectations set back in May.

Ronald Lombardi: Meanwhile, the quarter also benefited from continued strong international growth that was broad-based and led by our Hydro Light brand, which was executed largely with temporary air freight. In total, adjusted EPS of $0.90 declined less than anticipated thanks to the sales upside. Free cash flow of $54 million grew versus the prior year and continues to enable capital deployment that is used to enhance shareholder value. In Q1, we reduced debt by $35 million while still repurchasing about $25 million in shares and maintaining a leverage ratio of 2.8 times.

Ron Lombardi: Our diverse portfolio continues to experience solid consumption trends, thanks to our proven brand building strategy and investments.

Speaker Change: Sales of $267 million declined versus the prior year, largely due to supply chain challenges and clear eyed that were expected.

Ron Lombardi: However, the impact was better than forecast, thanks to improving production trends and our ability to expedite shipments to retailers that aligns with our focus on service.

Speaker Change: Meanwhile, the quarter also benefited from continued strong international growth that was broad based and led by our hydro light brand.

The additional shipments were executed largely with temporary air freight that resulted in a slightly lower gross margin than forecasted. In total, adjusted EPS of 90 cents declined less than anticipated, thanks to the sales upside. Free cash flow of 54 million grew versus the prior year and continues to enable capital deployment that is used to enhance shareholder value.

Speaker Change: The additional shipments were executed largely with temporary airfreight that resulted in a slightly lower gross margin than forecasted and total adjusted EPS of <unk> 90.

Speaker Change: Declined less than anticipated thanks to the sales upside.

Speaker Change: Free cash flow of $54 million grew versus the prior year and continues to enable capital deployment that is used to enhance shareholder value in Q1, we reduced debt by $35 million, while still repurchasing about 25 billion in shares.

In Q1, we reduced debt by 35 million while still repurchasing about 25 billion in shares and maintaining a leverage ratio of 2.8 times.

Speaker Change: Maintaining a leverage ratio of two eight times.

Now let's turn to page 6 for an update on Summer's Eve. As discussed last quarter, we are making progress in our women's health franchise, which is represented by two distinct number one market share brands, Monistat and Summer's Eve. Our action steps have led to largely stabilized Monistat sales trends, allowing us to further focus our efforts on returning Summer's Eve to growth.

Ronald Lombardi: Now, let's turn to page six for an update on Summer's Eve. Summer's Eve begins with a long heritage and connection with consumers. It offers one of the most comprehensive product offerings in the feminine hygiene category, made up of washes, wipes, sprays, and other products designed for feminine hygiene needs. Within this wide assortment are two separate trends for our brand. On the other hand, cloth, and especially washes, which make up about 65% of brand sales, are performing comparatively well and are set up for long-term growth. We see a runway for further growth with these tactics, along with long-term geographic opportunities beyond Australia and New Zealand. With that, I'll pass it to Chris to walk through the financials.

Ronald Lombardi: Now, let's turn to page six for an update on Summer's Eve. As discussed last quarter, we are making progress in our women's health franchise, which is represented by two distinct number one market share brands, Monistat and Summer's Eve. Our action steps have led to largely stabilized Monistat sales trends, allowing us to further focus our efforts on returning Summer's Eve to growth. Summer's Eve begins with a long heritage and connection with consumers.

Speaker Change: Now, let's turn to page six for an update on Summer's Eve.

Speaker Change: As discussed last quarter, we are making progress in our women's health franchise, which is represented by two distinct number one market share brands Monistat and Summer's Eve.

Ron Lombardi: Our action steps have led to largely stabilized monistat sales trends allow.

Speaker Change: Owing us to further focus our efforts on returning summer's eve to growth.

Summer's Eve begins with a long heritage and connection with consumers. It offers one of the most comprehensive product offerings in the feminine hygiene category, made up of washes, wipes, sprays, and other products designed for feminine hygiene needs. Within this white assortment are two separate trends for our brand. Certain on-the-go offerings such as sprays and nests shown on the pie at last, continue to face pressure from consumer behavioral shifts away from on-the-go sprays due to numerous factors. On the other hand, cloth and especially washes, which make up about 65% of brand sales, are performing comparatively well in our setup for long-term growth.

Speaker Change: Summer's Eve begins with a long heritage in connection with consumers. It offers one of the most comprehensive product offerings in the feminine hygiene category made up of washers wipes and sprays and other products designed for feminine hygiene needs.

Ronald Lombardi: It offers one of the most comprehensive product offerings in the feminine hygiene category, made up of washes, wipes, sprays, and other products designed for feminine hygiene needs. Within this wide assortment are two separate trends for our brand.

Speaker Change: Within this white assortment are two separate trends for our brand certainly on the go offerings, such as sprays and lists shown on the pie It left.

Ronald Lombardi: Certain on-the-go offerings, such as sprays and mists, shown in the pie at left, continue to face pressure from consumer behavioral shifts away from on-the-go sprays due to numerous factors. On the other hand, cloth, and especially washes, which make up about 65% of brand sales, are performing comparatively well and are set up for long-term growth. We believe new marketing and new innovation will help each of these form factors drive a return to sales growth.

Speaker Change: Continue to face pressure from consumer behavioral shifts away from on the go sprays due to numerous factors on the other hand.

Speaker Change: And especially washers, which make up about 65% of brand sales are performing comparatively well.

Speaker Change: Set up for long term growth.

We believe new marketing and new innovation will help each of these form factors drive a return to sales growth.

Speaker Change: We believe new marketing and new innovation will help each of these form factors drive a return to sales growth.

For Summer's Eve, our latest media campaign highlights its key consumer benefit of voter protection and gets back to communicating and connecting with consumers based on the brand's heritage around freshness and confidence. The recent launch of Summer's Eve Ultimate Voter Protection, which emphasizes this attribute and utilizes a patented odor-reducing formula, is one of our best-performing new product launches of the last several years. This leads us with conviction that the brand-building campaign we've put in place is the right one and should build momentum as the year progresses.

Ronald Lombardi: For Summer's Eve, our latest media campaign highlights its key consumer benefit of odor protection and gets back to communicating and connecting with consumers based on the brand's heritage around freshness and comfort. The recent launch of Summer's Eve Ultimate Odor Protection, which emphasizes this attribute and utilizes a patented odor-reducing formula, is one of our best performing new product launches of the last several years.

Speaker Change: For Summer's Eve, our latest media campaign highlights its key consumer benefit of odor protection and gets back to communicate them and connecting with consumers based on the brand's heritage around freshness and confidence.

Speaker Change: The recent launch of Summer's Eve ultimate odor protection, which jumped the sizes. This attribute and utilizes a patented odor reducing formula is one of our best performing new product launches.

Speaker Change: The last several years.

Ronald Lombardi: This leaves us with conviction that the brand-building campaign we've put in place is the right one and should build momentum as the year progresses. Now, let's turn to slide 7 for an update on Hydro Light. A reminder for our U.S. investors that are not familiar with Hydrolyte, it is a great tasting and efficacious oral hydration product that defines the category in Australia. With a 20-plus year history in the market, the majority of Australians recognize the brand immediately and continue to turn to it for numerous usage occasions like sickness, sport, and exercise, and excessive heat.

Speaker Change: This leaves us with conviction that the brand building campaign, we've put in place is the right one and should build momentum as the year progresses.

Now, let's turn to slide seven for an update on Hydro Light. A reminder for our U.S. investors that are not familiar with Hydro Light, it is a great tasting and efficacious oral hydration product that defines the category in Australia. With a 20-plus year history in the market, the majority of Australians recognize the brand immediately and continue to turn to it for numerous usage occasions like sickness, sport and exercise, and excessive heat. The brand remains a large portion of our international business and represents a majority of our sales in Australia. Leveraging its clear number one market share position, Hydro Light focuses its efforts on finding ways to build a category with consumers using proven brand-building tactics.

Speaker Change: Now, let's turn to slide seven for an update on hydro life.

Speaker Change: A reminder, for our U S investors that are not familiar with hydro light. It is a great tasting and efficacious oral hydration product.

Speaker Change: Finds the category in Australia, with a 20 plus year history in the market. The majority of Australians recognize the brand immediately and continue to turn to it for numerous usage occasions, like sickness sport and exercise and excessive heat.

Ronald Lombardi: The brand remains a large portion of our international business and represents a majority of our sales in Australia. Leveraging its clear number one market share position, HydroLite focuses its efforts on finding ways to grow the category with consumers using proven brand building tactics. Most recently, HydroLite continues to emphasize the reason to hydrate with more than just water through both retail and digital touch. These robust efforts continue to yield results. Compared to five years ago, the HydroLite brand has grown at a mid-teens kegger rate, thanks to improving both usage rates as well as expanding household penetration within its core Australian market. We see a runway for further growth with these tactics, along with long-term geographic opportunities beyond Australia and New Zealand. With that, I'll pass it to Chris to walk through the fin-

Speaker Change: <unk> remains a large portion of our international business and represents a majority of our sales in Australia.

Speaker Change: Leveraging its clear number one market share position hydrolase focuses its efforts on finding ways to grow the category with consumers use improvement brand building tactics.

Most recently, Hydro Light continues to emphasize the reason to hydrate with more than just water through both retail and digital touch points. These robust efforts continue to yield results compared to five years ago. The Hydro Light brand has grown at a mid-teens category thanks to improving both usage rates as well as expanding household penetration within its core Australian market.

Speaker Change: Most recently hydro like continues to emphasize the reason to hydrate with more than just water through both retail and digital touch points.

Speaker Change: These robust efforts continue to yield results compare to five years ago. The hydro <unk> brand has grown at a mid teens CAGR, thanks to improving both usage rates as well as expanding household penetration within its core Australian market.

We see a runway for further growth with these tactics, along with long-term geographic opportunities beyond Australia and New Zealand.

Speaker Change: We see a runway for further growth with these tactics along with long term geographic opportunities beyond Australia, and New Zealand.

Christine Sacco: With that, I'll pass it to Chris to walk through the financials. Thanks, Ron. Good morning, everyone.

Speaker Change: With that I'll pass it to Chris to walk through the financials.

Christine Sacco: Thanks, Ron, and good morning, everyone. Let's turn to slide 9 and review our first quarter Fiscal 25 financial results. As a reminder, the information in today's presentation includes certain non-GAAP information that is reconciled to the closest GAAP measure in our earnings report. Q1 revenue of $267.1 million declined 4.4% from $279.3 million in the prior year, and 4.3% excluding the effects of foreign currency. As expected, EBITDA and EPS both declined in Q1 from the prior year, with the majority of the change driven by lower revenue and the quarterly timing of certain costs. Let's turn to slide 10 for detail around these consolidated results.

Chris: Thanks, Ron and good morning, everyone, let's turn to slide nine and review our first quarter fiscal 'twenty five financial results.

Christine Sacco: Let's turn to slide 9 and review our first quarter fiscal 25 financial results. As a reminder, the information in today's presentation includes certain non-GAAP information that is reconciled to the closest GAAP measure in our earnings release. Q1 revenue of $267.1 million declined 4.4% from $279.3 million in the prior year and 4.3% excluding the effects of farm currency. As expected, EBITDA and EPS both declined in Q1 from the prior year, with the majority of the change driven by lower revenue and the quarterly timing of certain costs.

Christine Sacco: As a reminder, the information in today's presentation includes certain non-GAAP information that is reconciled to the closest GAAP measure in our earnings report. Q1 revenue of $267.1 million declined 4.4% from $279.3 million in the prior year, and 4.3% excluding the effects of foreign currency. As expected, EBITDA and EPS both declined in Q1 from the prior year, with the majority of the change driven by lower revenue and the quarterly timing of certain costs. Let's turn to slide 10 for detail around these consolidated results.

Chris: As a reminder, the information in today's presentation includes certain non-GAAP information that is reconciled to the closest GAAP measure in our earnings release.

Chris: Q1 revenue of $267 $1 million declined four 4% from $279 3 million in the prior year and four 3% excluding the effects of foreign currency.

Speaker Change: As expected EBITDA and EPS both declined in Q1 from the prior year with the majority of the change driven by lower revenue and the quarterly timing of certain costs.

Christine Sacco: Let's turn to slide 10 for detail around these consolidated results. As I just highlighted, our Q1 fiscal 25 revenues decreased 4.3% organically versus the prior year. By segment, excluding effects, North America's segment revenues decreased 5%, and international segment revenues increased 5.3% versus the prior year. As Ron noted earlier, we exceeded our Q1 sales forecast, owing primarily to our ability to move supply-constrained, clear-rise product to customers more rapidly than anticipated to meet demand. This helps eye-and-earcare category performance exceed our expectations, along with strength in our Thereteers, D-Brocks, and Stybrans. This performance was more than offset by declines in women's health and cough-cold categories, where we faced continued pressure in on-the-go summer Z-Blofferings, as Ron discussed, as well as the planned impact of retail ordering in the cough-and-cold category.

Speaker Change: Let's turn to slide 10 for details around these consolidated results.

Christine Sacco: As I just highlighted, our Q1 fiscal 25 revenues decreased 4.3% organically versus the prior year. By segment, excluding FX, North America segment revenues decreased 5%, and international segment revenues increased 5.3% versus the prior year. As Ron noted earlier, we exceeded our Q1 sales forecast owing primarily to our ability to move supply-constrained clearized product to customers more rapidly than anticipated to meet demand. This helps the eye and ear care category performance exceed our expectations along with strength in our TheraTiers, Dbrox, and Stuy brands.

Christine Sacco: As I just highlighted, our Q1 fiscal 25 revenues decreased 4.3% organically versus the prior year. By segment, excluding FX, North America segment revenues decreased 5%, and international segment revenues increased 5.3% versus the prior year. As Ron noted earlier, we exceeded our Q1 sales forecast owing primarily to our ability to move supply-constrained clearized product to customers more rapidly than anticipated to meet demand. This helps the eye and ear care category performance exceed our expectations along with strength in our TheraTiers, Dbrox, and Stuy brands.

Speaker Change: As I just highlighted our Q1 fiscal 'twenty five revenues decreased four 3% organically versus the prior year.

Speaker Change: By segment, excluding FX North America segment revenues decreased 5% and international segment revenues increased five 3% versus the prior year.

Speaker Change: As Ron noted earlier, we exceeded our Q1 sales forecast, owing primarily to our ability to move supply constrained clear eyes product to customers more rapidly than anticipated to meet demand.

Ron Lombardi: This helped eye and ear care category performance exceed our expectation along with strength in our third tier <unk> and <unk> brands.

Christine Sacco: This performance was more than offset by declines in women's health and cough-cold categories, where we faced continued pressure on-the-go summer Eve offerings, as Ron discussed, as well as the planned impact of retail ordering in the cough and cold category. We experienced impressive double-digit year-over-year growth in the e-commerce channel, continuing the long-term trend of higher online purchases. Total company gross margin of 54.7% in the first quarter was approximately flat sequentially but below the prior year due to continued cost inflation and the use of higher-cost air freight on clear ice products, which was only partially offset by pricing actions and cost savings efforts.

Speaker Change: This performance was more than offset by declines in women's health and cough cold category, where we faced continued pressure and on the go Summer's Eve offerings as Ron discussed as well as the planned impact of retail ordering in the cough cold category.

We experienced impressive double-digit year-over-year growth in the E-commerce channel, continuing the long-term trend of higher online purchasing. Total company growth margin of 54.7% in the first quarter was approximately flat sequentially, but below the prior year, due to continued cost inflation and the use of higher-cost air freight on clear-rise product, which was only partially offset by pricing actions and cost savings efforts. For the full fiscal year, we now anticipate a growth margin of approximately 56% due to the higher air freight costs incurred in Q1. We still expect the increase from the prior year to be driven by pricing actions and cost savings that more than offset inflationary cost headwinds.

Christine Sacco: We experienced impressive double-digit year-over-year growth in the e-commerce channel, continuing the long-term trend of higher online purchases. Total company gross margin of 54.7% in the first quarter was approximately flat sequentially, but below the prior year due to continued cost inflation and the use of higher-cost air freight on clear ice products, which was only partially offset by pricing actions and cost savings efforts. For the full fiscal year, we now anticipate a gross margin of approximately 56% due to the higher air freight costs incurred in Q1.

Speaker Change: We experienced impressive double digit year over year growth in the E Commerce channel continuing the long term trend of higher online purchasing.

Speaker Change: Total company gross margin of 54, 7% in the first quarter with approximately flat sequentially, but below the prior year due to continued cost inflation and the use of higher cost airfreight unclear ice product, which was only partially offset by pricing actions and cost savings efforts.

Christine Sacco: For the full fiscal year, we now anticipate a gross margin of approximately 56% due to the higher air freight costs incurred in Q1. However, we still expect the increase from the prior year to be driven by pricing actions and cost savings that more than offset inflationary cost headwinds. Q2 gross margin is estimated to be approximately 55.5%. As expected, advertising and marketing was up in dollars and as a percentage of sales, coming in at approximately $39 million, or 14.7% of sales.

Speaker Change: For the full fiscal year, we now anticipate a gross margin of approximately 56% due to the higher airfreight costs incurred in Q1.

Speaker Change: We still expect the increase from the prior year to be driven by pricing actions and cost savings that more than offset inflationary cost headwinds.

Christine Sacco: Q2 growth margin is estimated to be approximately 55.5%. As expected, advertising and marketing was up in dollars and as a percentage of sales, coming in at approximately $39 million, or 14.7% of sales. For fiscal 25, we still anticipate an A&M rate of just over 14% of sales and up in dollars versus the prior year. GNA expenses were 10.8% of sales in Q1 due to the timing of certain expenses. We still anticipate full-year GNA of approximately 9.5% as a percent of sales. Adjusted EPS of 90 cents compared to a dollar six in the prior year, down from the impact of lower Q1 revenues, air freight costs, and the timing of A&M and GNA spend.

Speaker Change: Q2 gross margin is estimated to be approximately 55, 5%.

Christine Sacco: As expected, advertising and marketing was up in dollars and as a percentage of sales, coming in at approximately $39 million, or 14.7% of sales. For fiscal 25, we still anticipate an A&M rate of just over 14% of sales and up in dollars versus the prior year. We still anticipate full-year GNA of approximately 9.5% as a percent of sales and adjusted EPS of $0.90 compared to $1.06 in the prior year, down from the impact of lower Q1 revenues, air freight costs, and the timing of A&M and G&A spend.

Speaker Change: As expected advertising and marketing was up in dollars and as a percentage of sales coming in at approximately $39 million or 14, 7% of sales.

Christine Sacco: For fiscal 25, we still anticipate an A&M rate of just over 14% of sales and up in dollars versus the prior year. G&A expenses were 10.8% of sales in Q1 due to the timing of certain expenses. We still anticipate full-year GNA of approximately 9.5% as a percent of sales and adjusted EPS of $0.90 compared to $1.06 in the prior year, down from the impact of lower Q1 revenues, air freight costs, and the timing of A&M and G&A spend.

Speaker Change: For fiscal 'twenty, five we still anticipate an A&M rate of just over 14% of sales and up in dollars versus the prior year.

Speaker Change: G&A expenses were 10, 8% of sales in Q1 due to the timing of certain expenses.

Speaker Change: Still anticipate full year G&A of approximately nine 5% as a percent of sales.

Speaker Change: Adjusted EPS of <unk> 90, compared to $1 six in the prior year down from the impact of lower Q1 revenues airfreight costs and the timing of A&M and G&A spend.

Ronald Lombardi: For full year fiscal 25, we expect adjusted EPS growth of approximately 5 to 6% as well as an EBITDA margin in the low to mid-30s, consistent with our long-term trends. Finally, looking below the line, interest expense of approximately $13 million benefited from the effects of our continued debt reduction efforts. Our Q1 adjusted tax rate of 22.9% excluded an unusually large discreet tax item we do not anticipate repeating. We anticipate a normalized tax rate of just under 24% for the remaining quarters of fiscal 25. Now let's turn to slide 11 and discuss cash flow. In Q1, we generated $53.6 million in free cash flow, up double digits versus the prior year. We continue to maintain industry-leading free cash flow and are maintaining our outlook for the full year of 240 million or more. At June 30, our net debt was approximately $1.1 billion, 1 billion of which is fixed, and we maintained a covenant-defined leverage ratio of 2.8 times. In the quarter, we repurchased approximately 400,000 shares for $26 million and will continue to evaluate further repurchases opportunistically for the remainder of fiscal 25. With that, I'll turn it back to Ron. Thanks, Chris.

Christine Sacco: For the full year fiscal 25, we expect adjusted EPS growth of approximately 5-6%, as well as an EBITDA margin in the low to mid-30s, consistent with our long-term trend. Finally, looking below the line, interest expense of approximately $13 million benefited from the effects of our continued debt reduction efforts. Our Q1 adjusted tax rate of 22.9% excluded an unusually large discrete tax item we do not anticipate repeating. At June 30, our net debt was approximately $1.1 billion, $1 billion of which is fixed, and we maintained a covenant-defined leverage ratio of 2.8 times. In the quarter, we repurchased approximately 400,000 shares for $26 million and will continue to evaluate further repurchases opportunistically for the remainder of fiscal 25. With that, I'll turn it back to Ron.

Christine Sacco: For full year fiscal 25, we expect adjusted EPS growth of approximately 5-6%, as well as an EBITDA margin in the low to mid-30s, consistent with our long-term trend. Finally, looking below the line, interest expense of approximately $13 million benefited from the effects of our continued debt reduction efforts. Our Q1 adjusted tax rate of 22.9% excluded an unusually large discrete tax item we do not anticipate repeating. We anticipate a normalized tax rate of just under 24% for the remaining quarters of Fiscal 25.

Speaker Change: For full year fiscal 'twenty five we expect adjusted EPS growth of approximately 5% to 6% as well as an EBITDA margin in the low to mid <unk> consistent with our long term trend.

Speaker Change: Finally, looking below the line interest expense of approximately $13 million benefited from the effects of our continued debt reduction efforts.

Speaker Change: Our Q1 adjusted tax rate of 22, 9% excluded an unusually large discrete tax item, we do not anticipate repeating.

Speaker Change: We anticipate a normalized tax rate of just under 24% for the remaining quarters of fiscal 'twenty five.

Christine Sacco: Now, let's turn to slide 11 and discuss cash. In Q1, we generated $53.6 million in free cash flow, up double digits versus the prior year. We continue to maintain industry-leading free cash flow and are maintaining our outlook for the full year of $240 million or more. As of June 30th, our net debt was approximately $1.1 billion, $1 billion of which is fixed, and we maintained a covenant-defined leverage ratio of 2.8 times. In the quarter, we repurchased approximately 400,000 shares for $26 million, and we'll continue to evaluate further repurchases opportunistically for the remainder of fiscal 25. With that, I'll turn it back to Ron. Thanks.

Speaker Change: Now, let's turn to slide 11, and discuss cash flow.

Speaker Change: In Q1, we generated $53 6 million and free cash flow up double digits versus the prior year, we continue to maintain industry, leading free cash flow and are maintaining our outlook for the full year of $240 million or more.

Speaker Change: At June 30, our net debt was approximately $1 $1 billion 1 billion of which is fixed and we maintained our covenant defined leverage ratio of two eight times.

Ron Lombardi: In the quarter, we repurchased approximately 400000 shares for $26 million and we will continue to evaluate further repurchases opportunistically for the remainder of fiscal 'twenty five with that I'll turn it back to Ron.

Ronald Lombardi: Thanks Chris. Let's turn to slide 13 to wrap things up. Our business is building momentum, and our fiscal year is off to a good start. We are reaffirming our full-year outlook thanks to our diverse and leading consumer health care portfolio, which is helping to offset near-term supply chain headwinds in eye care. For Fiscal 25, we continue to anticipate revenues of $1,125,000,000 to $1,140,000,000 and organic revenue growth of approximately 1% versus Fiscal 24. We're expecting Q2 revenues of $282 million, down slightly year-over-year, again due to clear-eyes timing. We continue to look for ways to improve clear ice shipments into retailers to support in-stock levels.

Ronald Lombardi: Let's turn to slide 13 to wrap up. Our business is building momentum in our fiscal years off to a good start. We are reaffirming our full year outlook thanks to our diverse and leading consumer healthcare portfolio that is helping to offset near-term supply chain headwinds in I.K. For fiscal 25, we continue to anticipate revenues of $1,125,000,000 to $1,140,000,000 and organic revenue growth of approximately 1% versus fiscal 24. We're expecting Q2 revenues of $282,000,000, down slightly year-over-year again due to rise timing. We continue to look for ways to improve clear-eye shipments into retailers to support in-stock levels.

Ron: Thanks, Chris, Let's turn to slide 13 to wrap up.

Ron Lombardi: Our business is building momentum in our fiscal year is off to a good start.

Ronald Lombardi: We are reaffirming our full-year outlook thanks to our diverse and leading consumer health care portfolio that is helping to offset near-term supply chain headwinds in eye care. We continue to look for ways to improve clear ice shipments into retailers to support in stock levels. However, this doesn't change the full-year outlook but may shift sales from the second half into the first.

Ron Lombardi: We are reaffirming our full year outlook, thanks to our diverse and leading consumer health care portfolio that is helping to offset near term supply chain headwinds in eyecare.

Ron Lombardi: For fiscal 'twenty five we continue to anticipate revenues of $1 billion $125 million to $1 billion $140 million and organic revenue growth of approximately 1% versus fiscal 'twenty four.

Speaker Change: We're expecting Q2 revenues of $282 million down slightly year over year again due to clear eyes timing.

Ronald Lombardi: We continue to look for ways to improve <unk> shipments into retailers to support in stock levels. However, this doesn't change the full year outlook, but may shift sales from the second half into the first half.

Operator: However, this doesn't change the full-year outlook but may shift sales from the second half into the first. For EPS, we continue to anticipate adjusted EPS of $4.40. $4.46 for the full year. For Q2, we'd anticipate EPS of $1.08. Lastly, we continue to anticipate free cash flow of $240 million or more with the benefit of capital deployment optionality that has a history of maximizing value for our shareholders. With that, I'll open it up for questions. Operator.

However, this doesn't change the full-year outlook, but may shift sales from the second half into the first half. For EPS, we continue to anticipate adjusted EPS of $4.40 to $4.46 for the full year. For Q2, we anticipate EPS of a dollar rate.

Ronald Lombardi: For EPS, we continue to anticipate adjusted EPS of $4 40.

Ron Lombardi: To $4 46 for the full year for Q2, we'd anticipate EPS of $1 right.

Lastly, we continue to anticipate pre-cash low of $240,000,000 or more, with the benefit of capital deployment optionality that has a history of maximizing value for our shareholders.

Ronald Lombardi: Lastly, we continue to anticipate free cash flow of $240 million or more with the benefit of capital deployment Optionality that has a history of maximizing value for our shareholders.

Ronald Lombardi: With that, I'll open it up for questions.

Speaker Change: With that I'll open it up for questions operator.

Operator? Thank you.

Operator: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A roster. The first question comes from Rupesh Parikh with Oppenheimer.

At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star 1-1 and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster.

Speaker Change: Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one.

Speaker Change: And wait for your name to be announced to withdraw your question. Please press star one again.

Operator: To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster.

Speaker Change: Please standby, while we compile the Q&A roster.

Rupesh Parikh: The first question comes from Rupesh Parik with Oppenheimer. Go ahead. Your line is open. Good morning, and thanks for taking my question. So just going back to supply chain, it sounds like from your commentary, you guys are on track and resolving the supply chain issue as you guys expected. Just want to confirm that. And then, you know, as you look at the eye category, you know, have you seen any shell for share loss, or is it playing out, you know, exactly as you guys would have expected on the consumption basis.

<unk> Parikh: Our first question comes from <unk> Parikh with Oppenheimer go ahead. Your line is open.

Operator: Go ahead. Your line is open. Good morning.

Ronald Lombardi: Good morning and thanks for taking my question. So just going back to the supply chain, it sounds like from your commentary that you guys are on track to resolving the supply chain issue as you expected. Just wanted to confirm that. And then, you know, as you look at the I category, have you seen any shelf or share loss, or is it playing out, you know, exactly as you guys would have expected on a consumption basis?

Ronald Lombardi: Good morning and thanks for taking my question. So just going back to the supply chain, it sounds like from your commentary that you guys are on track to resolving the supply chain issue as you expected. Just wanted to confirm that. And then, you know, as you look at the I category, have you seen any shelf or share loss, or is it playing out, you know, exactly as you guys would have expected it on a consumption basis?

Speaker Change: And thanks for taking my question, so just going back to the supply chain. It sounds like from your commentary that you guys are on track and resolving the supply chain issue that as you guys expected.

Ronald Lombardi: Just wanted to confirm that and then as you look at it.

Ronald Lombardi: Category.

Ronald Lombardi: Have you seen any shelf or share loss or is it playing out exactly as you guys would've expected.

Speaker Change: Consumption basis.

Ronald Lombardi: Good morning, Rupesh. In terms of the Clear Eyes supply chain, we continue to be in line with what we talked about back in May in terms of production. Q1, we saw the ability to use some air freight to get stuff in a bit sooner at the end of the quarter. And what was originally anticipated, and as I just said in the prepared remarks, we're looking to see if we can get a bit more into the first half or the second half by continuing to use air freight. So clear eyes supply chain on track at this point, we continue to fit about it.

Ronald Lombardi: Good morning, Rupesh. In terms of the ClearEyes supply chain, we continue to be in line with what we talked about back in May in terms of production. In Q1, we saw the ability to use some air freight to get stuff in a bit sooner at the end of the quarter than what was originally anticipated. And as I just said in the prepared remarks, we're looking to see if we can get a bit more into the first half versus the second half by continuing to use air freight.

Speaker Change: Okay. Good morning, we're past.

Speaker Change: In terms of the clear eyes supply chain.

Speaker Change: We continue to be in line with what we talked about.

Speaker Change: Back in May in terms of production.

Speaker Change: Q1, we have the ability to use some air freight to get it stop being a bit sooner at the end of the quarter.

Speaker Change: And what was originally anticipated and as I just said in the prepared remarks.

Speaker Change: We're looking to see if we can get a bit more into the first half versus the second half by continuing to use air freight so.

Ronald Lombardi: So, ClearEyes' supply chain is on track at this point. We continue to feel good about it. In terms of share and consumption, ClearEyes continues to be well positioned on the shelf. So, we've been focusing on making sure that we've got product available on the shelf. So, maybe not all the SKUs, but SKUs that can meet consumer demand on the shelf. So, so far, so good in terms of consumption and

Speaker Change: <unk> supply chain on track at this point.

In terms of share in consumption, Clear Eyes continues to be well positioned at shelf. So we've been focusing on making sure that we've got a product available at shelf. So maybe not all the skews, but skews that can be consumed with demand at the shelf. So far, so good in terms of consumption and share.

Speaker Change: Continue to feel good about it.

Speaker Change: Sure and consumption chlorides continues to be well positioned at shelf. So we've been focusing on making sure that we've got product available.

Speaker Change: At shelf, so maybe not all the skus, but SKU that to meet consumer demand at the shelf.

Speaker Change: So good in terms of consumption and share.

Ronald Lombardi: And then maybe just one follow-up question, just given some concerns about the Pharmacy Channel, you know, Walgreens closing stores, it looks like CVS is rationalizing their supply chain. How do you guys feel about, you know, inventorying the channel within pharmacy and, you know, any concerns about inventory stocking going forward?

Ronald Lombardi: And then maybe just one Bob question, just given some concerns on the pharmacy channel, you know, Walgreens closing stores and looks like CVS's rationalized rationalizing their supply chain. Just how do you guys feel about, you know, inventory the channel within pharmacy and, you know, any concerns about inventory stocking going forward? Yeah, at this point in total, we haven't seen any headwinds from retailers reducing inventory in total. You know, certainly some channels have some activities going on that's being offset by both in other channels. And then the other thing I'll comment on is what you may be hearing from others in the industry is it's really more cost cold and other categories that we don't plan in a big way at this point.

Speaker Change: And then maybe just one follow up question just given some concerns on the pharmacy channel Walgreens closing stores it looks like Cvs is rational.

Speaker Change: Rationalizing their supply chain, just how do you guys feel about inventory.

Speaker Change: Inventory in the channel within pharmacy, and any concerns about inventory destocking going forward.

Ronald Lombardi: Yeah, at this point, in total, we haven't seen any headwinds from retailers reducing inventory in total. You know, certainly some channels have some activities going on that's being offset by growth in other channels. And then the other thing I'll comment on is what you may be hearing from others in the industry, that it's really more cost cold and other categories that we don't play in in a big way at this point. So we'll see how that plays out, but at this point, we continue to be well positioned to get through that.

Ronald Lombardi: Yeah, at this point, in total, we haven't seen any headwinds from retailers reducing inventory in total. You know, certainly some channels have some activities going on that's being offset by growth in other channels, and then the other thing I'll comment on is what you may be hearing from others in the industry, that it's really more cost-conscious and other categories that we don't play in in a big way at this point. So we'll see how that plays out, but at this point, we continue to be well positioned to get through it.

Ronald Lombardi: Yes.

Ronald Lombardi: This point in total we haven't seen really any headwinds from.

Operator: Good day, and thank you for standing by.

Ronald Lombardi: Retailers, reducing inventory in total.

Operator: Welcome to the Q1 2025 Prestige Consumer Healthcare Earnings Conference call. This time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again.

Ronald Lombardi: Some channels.

Ronald Lombardi: Some activities going on thats being offset by growth in other channels.

Ronald Lombardi: And then the other thing I'll comment on is what you may be hearing from other others in the.

Ronald Lombardi: The industry is really more cough cold and other categories.

Ronald Lombardi: We don't play in in a big way at this point so.

So we'll see how that plays out, but at this point, we continue to be well positioned to get through that.

Ronald Lombardi: We'll see how that plays out but at this point, we continue to be well positioned to get through that.

Operator: Please be advised that today's conference is being recorded.

Ronald Lombardi: And then just my final question, just given some concerns out there on the consumer, you know, as you look at your categories and, you know, are you seeing any shifts to private labor or any other new consumer dynamics during the sponsor? Yeah, you know, we talked about the last couple of quarters because what we've seen is consumers shifting where they buy, looking for better value for the brands that they bought historically rather than any change in what they buy. So at this point, you know, we continue to believe that taking care of your health or someone in your family.

Ronald Lombardi: And then just my final question, just given some concerns out there about the consumer, you know. As you look at your categories, and you know, are you seeing any shifts to private labor or any other new consumer dynamics during this past quarter?

Bill Terpolilli: I would now like to hand the conference over to your first speaker today, Bill Terpolilli, Vice President Investor Relations and Treasury. Please go ahead. Thanks operator, and thank you to everyone who has joined today.

Speaker Change: And just my final question just given some concerns out there on the consumer as you look at your categories.

Speaker Change: Are you seeing any shifts or private waiver any other new consumer dynamics during this past quarter.

Ronald Lombardi: Yeah, you know, as we've talked about over the last couple of quarters, Rupesh, what we've seen is consumers shifting where they buy, looking for better value for the brand that they bought historically, rather than any change in what they buy. So at this point, we continue to believe that

Ronald Lombardi: Yeah, you know, as we've talked about over the last couple of quarters, Rupesh, what we've seen is consumers shifting where they buy, looking for better value for the brand that they bought historically, rather than any change in what they buy. So at this point, you know, we continue to believe that taking care of your health or someone in your family is the last place you look to make a change or save a few pennies.

Ronald Lombardi: Yes, as we've talked about over the last couple of quarters in the past what we've seen is.

Ronald Lombardi: And the call of me, Ronald Lombardi, our Chairman, President, and CEO, and Christine Sacco, our CFO. On today's call, we will review our first quarter fiscal 25 results, discuss the full-year outlaw, and then take questions from analysts. A slide presentation at companies today is called. It can be accessed by visiting Prestige Consumer Healthcare.com, clicking on the Investors' link, and then on today's webcast and presentation. Please remember some of the information contained in the presentation today, including non-GAMF financial measures.

Ronald Lombardi: Consumers shifting where they buy looking for better value for the brands that they bought historically rather than any change in one day.

Ronald Lombardi: Bye.

Ronald Lombardi: At this point, we continue to believe that.

Speaker Change: Taking care of your health or someone who it is.

It's the last place you look to make a change or save a few pennies.

Rupesh: Last place, you'll look to make a change or save a few pennies.

Great, thank you. All possible on. Great, thank you.

Operator: Great, thank you. I'll pass it along.

Unnamed Participant: Great, thank you all. Pass it along.

Rupesh: Great. Thank you I'll pass it along.

Susan Anderson: One moment for our next question. The next question comes from Susan Anderson with conic originality. Go ahead. Your line is open. Hi, good morning. Thanks for taking my questions.

Operator: One moment for our next question. The next question comes from Susan Anderson with Conocor Genuity. Go ahead. Your line is open.

Rupesh: Great. Thank you.

Speaker Change: One moment for our next question.

Ronald Lombardi: Reconciliation to the nearest GAMF financial measures are included in our earnings release and slide presentation. On today's call, we will make forelooking statements around risks and uncertainties, which are detailed at a complete safe harbor disclosure on page 2 of the slide presentation, which accompanies the call. These are important to review and contemplate. Business environment uncertainty remains heightened due to supply chain constraints and high inflation, which have numerous potential impacts. This means results could change at any time and the forecast impact of risk considerations is the best estimate based on the information available as of today's date.

Unnamed Participant: Okay.

Operator: The next question comes from Susan Anderson with Conocor Genuity. Go ahead. Your line is open.

Speaker Change: Your next question comes from Susan Anderson with Canaccord Genuity go ahead. Your line is open.

Christine Sacco: Hi, good morning. Thanks for taking my questions. I was wondering, just in terms of the North America business, can you maybe give us an idea of how much the decline was due to clear eyes versus women's health versus the weaker cold, cough season? And I guess, should we expect that same trend as we look into next quarter?

Operator: Hi, good morning. Thanks for taking my questions. I was wondering, just in terms of the North America business, can you maybe give us an idea of how much the decline was due to clear eyes versus women's health versus the weaker cold, cough season? And I guess, should we expect that same trend as we look into next quarter?

Susan Anderson: Hi, good morning, Thanks for taking my questions.

Susan Anderson: I was wondering just in terms of the North America business, do you give us an idea of how much the decline was due to Clear Eyes versus the woman's health versus with their cold coffee then? And I guess should we expect that same trend as we look into next quarter? So, we have a little bit of a hard time hearing at the beginning. I think Susan, you're asking us to give a little detail behind the makeup and what drove sales the class year over here? Yeah, correct. So, as we look to the various categories, women's health, I would say, as expected, and you'll be able to see these categories versus the prior year, it was down about 5 million.

Christine Sacco: I was wondering just in terms of North America business can you maybe give us some ideas how much the decline was due to <unk>.

Speaker Change: The women's health versus the weaker cold cough season.

Christine Sacco: Should we expect that same trend as we look into next quarter.

Christine Sacco: So, we had a little bit of a hard time hearing at the beginning. I think, Susan, you're asking us to give a little detail behind the makeup and what drove sales.

Christine Sacco: Okay.

Speaker Change: We have a little bit of a hard time hearing at the beginning I think you are asking us.

Ronald Lombardi: Further information concerning risk factors and cautionary statements are available at our most recent SEC filing and most recent company 10K.

Speaker Change: I'm, a little detail behind the makeup and what drove sales declines year over year.

Ronald Lombardi: Now handed over to our CEO, Ronald Lombardi. Ron? Thanks, though. Let's begin on slide five. We are encouraged with our start to the year. Q1 exceeded our sales and earnings expectations set back in May. Our diverse portfolio continues to experience solid consumption trends thanks to our proven brand building strategy and investments. Sales of 267 million decline versus the prior year largely due to supply chain challenges and clear eyes that were expected.

Speaker Change: Yes, correct, yes.

Christine Sacco: Yeah, correct. Hi, it's Chris.

Christine Sacco: Yes.

Christine Sacco: So as we look to the various categories, women's health, I would say, as expected, and you'll be able to see these categories versus the prior year, it was down about 5 million. Cough cold, again, as expected, down similarly to women's health. We're expecting cough cold trends to be flat to down slightly, right? The seasonality of and versus the comps of last year is what's going to drive the improvement in the second quarter versus the first quarter.

Speaker Change: Yes, hi, thank you.

Chris: It's Chris.

Speaker Change: As we look to the various categories women's health I would say as expected.

Christine Sacco: Okay.

Speaker Change: Youll be able to see these categories versus the prior year was down about $5 million, a cough cold again as expected down similarly to women's health.

Cobb cold, again, as expected, down similarly to women's health. We're expecting Cobb cold trends to be flat to down slightly. Seasonality of and versus the comps of last year is what's going to drive the improvement in the second quarter versus the first quarter. Women's health, seeing improvement as Ron mentioned, is prepared remarks, but likely to be a bit challenged still in the second quarter. Have a little bit of a backside wind in the second quarter that we're planning for, but sequential improvement in eye care is expected. And remember, as we commented in the remarks, if you heard the year and eye care category, also saw strong performance from Syracuse, D-Brock, and Si, so really all the brands in that portfolio hitting all cylinders.

Speaker Change: We're expecting.

Speaker Change: Cough cold trends to be.

Speaker Change: Flat to down slightly seasonal.

Ronald Lombardi: However, the impact was better than forecast thanks to improving production trends and our ability to expedite shipments to retailers that aligns with our focus on service. Meanwhile, the quarter also benefited from continued strong international growth that was broad-based and led by our hydrolyte brand. The additional shipments were executed largely with temporary air freight that resulted in a slightly lower gross margin than forecasted. In total, adjusted EPS of 90 cents declined less than anticipated thanks to the sales upside.

Speaker Change: Seasonality of <unk>.

Speaker Change: Versus the comps of last year is what's going to drive the improvement in the second quarter versus the first quarter.

Christine Sacco: Women's health, seeing improvement, as Ron mentioned in his prepared remarks, but likely to be a bit challenged still in the second quarter, has a little bit of FX headwind in the second quarter that we're planning for, but sequential improvement in eye care is expected. And remember, as we commented in the remarks, if you heard, the ear and eye care category also saw strong performance from TheraTiers, D-Brux, and Sky So really, all the brands in that portfolio are hitting all. Okay, great. And then...

Speaker Change: Women's health.

Christine Sacco: <unk> improvement as Ron mentioned in his prepared remarks.

Speaker Change: Likely to be a bit challenged.

Speaker Change: Still in the second quarter.

Speaker Change: Have a little bit of FX headwind in the second quarter that we're planning for it but sequential improvement in eyecare expected remember we commented in the remarks that would be heard.

Speaker Change: Ear and eye care category also saw strong performance from third tier <unk> and Sky, So really all of the brands.

Speaker Change: In that portfolio hitting on all cylinders.

Ronald Lombardi: Okay, great. And then I guess maybe just a follow up. So, on the eye care business, it sounds like the manufacturing plants are not necessarily quite up and running yet. Is that correct? And I guess, you know, when you guys expect them to be, and should we expect more air freight to impact those margins in the second quarter? Thanks. Yeah, so production levels really through the end of July continue to be in line with what we anticipated. We've got two suppliers, and they're again largely as expected. And we anticipate that they'll be continuing to ramp up the output level as the year continues.

Ronald Lombardi: Free cash flow of 54 million grew versus the prior year and continues to enable capital deployment that is used to enhance shareholder value. In Q1, we reduced debt by 35 million while still repurchasing about 25 billion in shares and maintaining a leverage ratio of 2.8 times.

Speaker Change: Okay great.

Christine Sacco: I guess maybe just a follow up. So on the eye care business, it sounds like the manufacturing plants are not necessarily quite up and running yet. Is that correct? And I guess, you know, what do you guys expect them to be? And should we expect more air freight to impact these margins in the second quarter?

Speaker Change: And then.

Speaker Change: I guess, maybe just a follow up so on the eye care business. It sounds like the manufacturing plants are not necessarily quite up and running yet.

Speaker Change: Correct and I guess.

Speaker Change: Do you guys expect them to be and should we expect more airfreight to impact gross margin in the second quarter.

Christine Sacco: So, production levels, really through the end of July, continue to be in line with what we anticipated. So, we've got two suppliers, and they're, again, both largely as expected, and we anticipate that they'll be continuing to ramp up the output level as the year continues. And then for the second quarter, I think, as we mentioned earlier, we anticipate some additional air freight to continue to focus on service levels. So, if we can expedite, get it in, and get it back out to the retailers to help with in-stock at the shelf, that's what we're going to be focused on. And that's obviously included in our guide.

Ronald Lombardi: Now let's turn to page 6 for an update on summer's eve. As discussed last quarter, we are making progress in our women's health franchise, which is represented by two distinct number one market share brands, Monastat and Summer's Eve. Our action steps have led to largely stabilized Monastat sales trends, allowing us to further focus our efforts on returning summer's eve to growth.

Speaker Change: Yes, so production levels.

Speaker Change: Really through the end of July continued to be in line with what we anticipated. So we've got two suppliers.

Speaker Change: They are again largely.

Speaker Change: As expected and we anticipate that there will be continuing to ramp up the output level as the year continues and then for the second quarter I think as we mentioned earlier, we anticipate some additional airfreight to continue to focus on service levels. So if we can expedite getting in and get it.

And then for the second quarter, I think, as we mentioned earlier, we anticipate some additional air freight to continue to focus on service levels. So if we can expedite, get it in and get it back out to the retailers to help with in stock at shelf, that's what we're going to be focused on. And that's how you think we included in our guide? Yeah, okay.

Ronald Lombardi: Summer's eve begins with a long heritage and connection with consumers. It offers one of the most comprehensive product offerings in the feminine hygiene category, made up of washes, wipes, sprays, and other products designed for feminine hygiene needs. Within this white assortment are two separate trends for our brand. Certain on-the-go offerings such as sprays and nests shown on the pie at last, continue to face pressure from consumer behavioral shifts away from on-the-go sprays due to numerous factors.

Speaker Change: Back out to the retailers to help with in stock at shelf, that's what we're going to be focused on and that's obviously included in our guidance.

Unnamed Participant: Yeah, okay, great. Thanks so much. I'll pass it along. Thank you.

Operator: Yeah, okay, great. Thanks so much. I'll pass it along. Thank you.

Great. Thanks so much. I'll pass it along. Thank you.

Speaker Change: Yeah, Okay, great. Thanks, so much I'll pass it along.

Operator: Thank you. One moment while we prepare the next question. The next question is from Linda Bolton-Weiser with D.A. Davidson. Go ahead, your line is open.

Linda Bolton: One moment while we prepare the next question. The next question is from Linda Bolton Weiser with DA Davidson. Go ahead. Your line is open. Yes, hi. So I was wondering, in terms of the track channel, POS data, which I know doesn't tell the whole picture, but still, the data actually look really pretty strong for clear eyes. Like, you know, oddly strong actually. Can you shed a little light on how the POS does look so strong, even though there are some supply issues. Is it just that retailers had enough inventory, or just can you kind of give a little more color on why it actually does look so good?

Speaker Change: Thank you.

Speaker Change: Thank you one moment, while we prepare the next question.

Speaker Change: The next question is from Linda Bolton Weiser with D. A Davidson go ahead. Your line is open.

Christine Sacco: Yes, hi. So I was wondering, in terms of the track channel POS data, which I know doesn't tell the whole picture, but still, the data actually looks really pretty strong for clear eyes, like, you know, oddly strong, actually. Can you shed a little light on how the POS does look so strong, even though there are some supply issues? Is it just that retailers had enough inventory? Or can you kind of give a little more color on why it actually does look so good? Yeah, so

Operator: Yes, hi. So I was wondering, in terms of the track channel POS data, which I know doesn't tell the whole picture, but still, the data actually looks really pretty strong for clear eyes, like, you know, oddly strong, actually. Can you shed a little light on how the POS does look so strong, even though there are some supply issues? Is it just that retailers had enough inventory? Or can you kind of give a little more color on why it actually does look so good?

Speaker Change: Yes, hi.

Christine Sacco: So I was wondering.

Christine Sacco: In terms of the tracked channel Pos data, which I know doesn't tell the whole picture, but still the data actually look really pretty strong for clear eyes.

Ronald Lombardi: On the other hand, cloth and especially washes, which make up about 65% of brand sales, are performing comparatively well in our setup for long-term growth. We believe new marketing and new innovation will help each of these form factors drive a return to sales growth. For Summer's Eve, our latest media campaign highlights its key consumer benefit of voter protection and gets back to communicating and connecting with consumers based on the brand's heritage around freshness and confidence.

Christine Sacco: You know oddly strong actually.

Christine Sacco: Can you shed a little light.

Christine Sacco: The Pos does look so strong even though there are some supply issues is it just that.

Christine Sacco: Retailers had enough inventory or just can you kind of give a little more color on why it actually does look so good.

Ronald Lombardi: Yeah, so consumption is outpacing our shipments into the retailers for clear eyes. So that's the first part of it.

Christine Sacco: Yeah, so consumption is outpacing our shipments into the retailers for clear eyes. So that's the first part of it. The second is, you know, we've been focused on making sure we've got some product available that we can ship so that there's something on the shelf.

So, consumption is outpacing our shipments into the retailers for clear rides. So that's the first part of it. And the second is, we've been focused on making sure we've got some product available that we can ship so that there's something at shelf. So when consumers are showing up at the shelf, Linda, there's product there for them, which is what's driving consumption. And really it's the continuation of strong performance for that brand. It's really nothing new for us. That's a new product out there, and some campaigns that we've had going on for a while here that continue to do well in the marketplace.

Speaker Change: Yes, so consumption is outpacing our shipments into the retailers for clear eyes.

Ronald Lombardi: The second is, you know, we've been focused on making sure we've got some product available that we can ship so that there's something on the shelf. So when consumers are showing up at the shelf, Linda, there's product there for them, which is what's driving consumption. And really, it's the continuation of strong performance for that brand. It's really nothing new for us. We've got some new products out there and some campaigns that we've had going on for a while here that continue to do well in the marketplace.

Ronald Lombardi: The recent launch of Summer's Eve ultimate voter protection, which emphasizes this attribute and utilizes a patented odor-reducing formula is one of our best-performing new product launches of the last several years. This leads us with conviction that the brand-building campaign we've put in place is the right one and should build momentum as a year progresses.

Christine Sacco: So that's the first part of it in the second half.

Christine Sacco: We've been focused on making sure we've got some product available that we can ship so that theres something at shelf.

Linda: So when consumers are showing up at the shelf Linda Theres product there for them, which is whats driving consumption.

Speaker Change: And really it's the continuation of strong performance for that brand.

Ronald Lombardi: Now, let's turn to slide seven for an update on hydro light. A reminder for our U.S, investors that are not familiar with hydro light, it is a great tasting and efficacious oral hydration product that defines the category in Australia. With a 20-plus year history in the market, the majority of Australians recognize the brand immediately and continue to turn to it for numerous usage occasions like sickness, sport and exercise, and excessive heat.

Speaker Change: It's really nothing new for US we've got some new products out there and some campaigns.

Speaker Change: We've had going on for a while here.

Speaker Change: You too.

Speaker Change: Well in the marketplace.

Ronald Lombardi: Okay.

And then, just on the women's health business, I know you commented that modest status, largely stabilized. Can you just refresh off on exactly the actions taken and what is kind of stabilizing that business? I mean, given that it is driven by incident by illness incidents among women. So how can that be controlled? So what are the marketing actions that you've taken that have stabilized that? So, a couple of things. First, the marketing campaign and the messaging was refined over the last year to better connect with consumers, or digital and TV messaging is more on point than it was kind of a year, year and a half ago.

Ronald Lombardi: And then, um... Just on the women's health business, I know you commented that Monistat is largely stabilized. Can you just refresh us on exactly the actions taken and what is kind of stabilizing that business? I mean, given that it's driven by incident by illness incidents among women, so how can that be controlled? So what are the marketing actions that you've taken that have stabilized that?

Christine Sacco: Okay.

Christine Sacco: And then.

Speaker Change: Just on the women's health business I know you commented that modest that has largely stabilized.

Speaker Change: Can you just refresh us on exactly the actions taken and what is kind of stabilizing that business I mean given that it.

Ronald Lombardi: The brand remains a large portion of our international business and represents a majority of our sales in Australia. Leveraging its clear number one market share position, hydro light focuses its efforts on finding ways to build a category with consumers using proven brand-building tactics. Most recently, hydro light continues to emphasize the reason to hydrate with more than just water through both retail and digital touch points. These robust efforts continue to yield results compared to five years ago. The hydro light brand has grown at a mid-teens category thanks to improving both usage rates as well as expanding household penetration within its core Australian market.

Speaker Change: Driven by incident by illness incidents among women. So how can that be control. So what are the marketing actions that you've taken that have stabilized that.

Christine Sacco: So a couple of things. First, the marketing campaign and the messaging was refined over the last year to better connect with consumers. So our digital and TV messaging is more on point than it was kind of a year, year and a half ago. And then there's really two parts to the monostat business. We've got Cure, which you're right, Linda, it is linked to incident levels.

Ronald Lombardi: So a couple of things. First, the marketing campaign and the messaging was refined over the last year to better connect with consumers. So our digital and TV messaging is more on point than it was kind of a year, year and a half ago. And then there are really two parts to the monostat business.

Christine Sacco: Yes.

Christine Sacco: A couple of things first.

Christine Sacco: The marketing campaign and the messaging.

Christine Sacco: Okay.

Christine Sacco: And over the last year to better connect with consumers, who are digital and television.

Christine Sacco: Messaging.

Christine Sacco: More on <unk> and it was kind of a year year and a half ago.

Ronald Lombardi: And then, there's really two parts of the monostat business. We've got cure, which you're right when it is linked to incident level, detection, incident level. And then, there's the care line of products where we've got a number of new products out: the boric acid wash that is really doing well. So, it's never one thing that turns the brand around, but it's still elements around Monistat that have repositioned it to the ability to position that for growth. And then, to get into Summer's Eve, as I mentioned on the prepared remarks, we continue to make good progress on washing wipes with new products and digital messaging that are out there.

Ronald Lombardi: We've got Cure, which you're right, Linda, it is linked to incident levels, Incident Levels, and then there's the care line of products where we've got a number of new products out, the Boric Acid Wash, that is really doing well. So it's never one thing that turns a brand around, but it's those elements around Monistat that have repositioned it to really be positioned back for growth And then to get into summer's Eve, as I mentioned in my prepared remarks, we continue to make good progress on washing wipes with new products and digital messaging that are out there.

Christine Sacco: And then Theres really two parts of the Monistat business, we've got cure.

Linda: You are right. It is linked to incident level views infection.

Ronald Lombardi: We see a runway for further growth with these tactics along with long-term geographic opportunities beyond Australia and New Zealand.

Linda: Incident levels.

Linda: And then there is the care line of products.

Christine Sacco: Where we've got a number of new products out the boric acid wash.

Christine Sacco: With that, I'll pass it to Chris to walk through the financials. Thanks, Ron. Good morning, everyone.

Linda: That is really doing well so.

Linda: It's never one thing.

Christine Sacco: Let's turn to slide 9 and review our first quarter fiscal 25 financial results. As a reminder, the information in today's presentation includes certain non-gap information that is reconciled to the closest gap measure in our earnings release. Q1 revenue of $267.1 million declined 4.4% from $279.3 million in the prior year and 4.3% excluding the effects of farm currency. As expected, EBITDA and EPS both declined in Q1 from the prior year with the majority of the change driven by lower revenue and the quarterly timing of certain costs.

Linda: Terms of bring it around.

Linda: Those elements around Monistat.

Linda: Repositioned it too.

Christine Sacco: Really being positioned for growth.

Summer's Eve: And then to get into Summer's Eve.

Christine Sacco: We continue to make good progress on Washington, Weiss with new products and digital messaging that are out there and we continue to focus on the goal to get that segment revive right. We're the market leader with more than 50 share for that segment and it's really up to us.

Ronald Lombardi: And we continue to focus on the go to get that segment revived, right? We're the market leader with more than 50 percent of the share in that segment. And it's really up to us to get that element back to growth, and we're

And we continue to focus on the goal to get that segment revived with a market leader with more than 50 share for that segment. And it's really up to us to get that element back to growth, and we're focused on it. Okay, thank you. That's it for me. I'll pass it on. Thanks. Thank you, Linda.

Linda: Element back.

Christine Sacco: Let's turn to slide 10 for detail around these consolidated results. As I just highlighted, our Q1 fiscal 25 revenues decreased 4.3% organically versus the prior year. By segment, excluding effects, North America's segment revenues decreased 5%, and international segment revenues increased 5.3% versus the prior year. As Ron noted earlier, we exceeded our Q1 sales forecast, owing primarily to our ability to move supply-constrained, clear-rise product to customers more rapidly than anticipated to meet demand.

Christine Sacco: To grow and we're focused on it.

Operator: Okay, thank you. That's it for me.

Linda: Okay. Thank you that's it for me I'll pass it on thanks.

Operator: I'll pass it on. Thanks. Thank you, Wanda.

Linda: Thank you Linda.

Operator: Thank you.

Operator: Thank you. A reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. I'll now bring up the next question. Your next question comes from Anthony Lebiedzinski with Zanotti & Co. Please go ahead. Your line is open.

And reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. I'll now bring up the next question.

Speaker Change: Thank you and a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced will now bring up the next question.

Anthony Lebiedzinski: Next question comes from Anthony. Thank you very much.

Speaker Change: Your next question comes from Anthony revisit Vince Keith Sorry, I apologize.

Speaker Change: <unk> an kao. Please go ahead your line is open.

Operator: Yeah, no problem, and good morning all, and thank you for taking the questions. So first, can you just give a little bit more details as far as the impact of air freight on your gross margin? And I know there was a partial offset by some pricing action. So if you could be a little bit more specific as to those two things, that'd be great.

Christine Sacco: Yeah, no problem, and good morning all, and thank you for taking the questions. So first, can you just give a little bit more details as far as the impact of air freight on your gross margin? And I know there was a partial offset of some pricing action, so if you could be a little bit more specific as to those two things, that'd be great.

Speaker Change: No problem good morning, all and thank you for taking the questions. So first.

Christine Sacco: This helps eye-and-earcare category performance exceed our expectations along with strength in our Thereteers, D-Brocks, and Stybrans. This performance was more than offset by declines in women's health and cough-cold categories where we faced continued pressure in on-the-go summer Z-Blofferings as Ron discussed, as well as the planned impact of retail ordering in the cough-and-cold category. We experienced impressive double-digit year-over-year growth in the E-commerce channel, continuing the long-term trend of higher online purchasing. Total company growth margin of 54.7% in the first quarter was approximately flat sequentially, but below the prior year, due to continued cost inflation and the use of higher-cost air freight on clear-rise product, which was only partially offset by pricing actions and cost savings efforts.

Christine Sacco: Can you just give a little bit more details as far as the impact of airfreight on your gross margin and I know there was a partial offset of some pricing actions. So if you could be a little bit more specific as to those two things that that'd be great.

Christine Sacco: Good morning, Anthony. It's Chris.

Yeah, good morning, Anthony. It's Chris. So, air freight was the entire difference delta to our expectations. We had guided to 55 and a half percent for the first quarter.

Christine Sacco: Good morning, Anthony it's Chris so.

Speaker Change: Air freight was the entire difference delta to our expectations, we had guided to 55% for the first quarter and.

Christine Sacco: So air freight was the entire difference delta to our expectations. We had guided to 55.5% for the first quarter, and air freight was really the difference there.

And air freight was really the difference there. Okay, that's very helpful. Chris, yeah, thanks.

Speaker Change: In Air freight was really the difference there.

Operator: Okay. All right. That's very helpful, Chris. Yeah, thanks.

Unnamed Participant: Okay. All right. That's very helpful, Chris. Yeah, thanks.

Christine Sacco: Okay, Alright, that's very helpful. Chris Yeah, Thanks, and then.

Ronald Lombardi: And then so, so I know you guys gave some color as to what you expect for the second quarter. You reaffirmed your full-year guidance, obviously. So, as we look at the back half of the fiscal year, and we look to update our models for Q3 and Q4, anything there you can call out there as far as how to think about the cadence of sales and earnings. I know Ron, you had mentioned something that there might be a little bit of a shift from Q, I guess from the back half to the second quarter. But anything else you can add as we look to recalibrate our models for the balance of the fiscal year.

Ronald Lombardi: And then, so I know you guys gave some color as to what you expect for the second quarter. You obviously reaffirmed your full year guidance. So as we look at the back half of the fiscal year and we look to update our models for Q3 and Q4, anything there you can call out as far as how to think about the cadence of sales and earnings? I know, Ron, you had mentioned something that there might be a little bit of a shift from, I guess, from the back half to the second quarter, but anything else you can add as we look to recalibrate our models for the balance of the fiscal year?

Ronald Lombardi: And then, so I know you guys gave some color as to what you expect for the second quarter. You obviously reaffirmed your full year guidance. So as we look at the back half of the fiscal year and we look to update our models for Q3 and Q4, anything there you can call out as far as how to think about the cadence of sales and earnings? I know, Ron, you had mentioned something that there might be a little bit of a shift from, I guess, from the back half to the second quarter, but anything else you can add as we look to recalibrate our models for the balance of the fiscal year?

Speaker Change: So I know you guys gave some color as to what you expect for the second quarter.

Ronald Lombardi: Reaffirmed your full year guidance, obviously, so as we look at the back half of the fiscal year.

Ronald Lombardi: And we look to update our models for Q3 and Q4 anything there you can call out there as far as how to how to think about.

Christine Sacco: For the full fiscal year, we now anticipate a growth margin of approximately 56% due to the higher air freight costs incurred in Q1. We still expect the increase from the prior year to be driven by pricing actions and cost savings that more than offset inflationary cost headwinds. Q2 growth margin is estimated to be approximately 55.5%. As expected, advertising and marketing was up in dollars and as a percentage of sales, coming in at approximately $39 million or 14.7% of sales.

Ronald Lombardi: Cadence of sales and earnings I know, Ron you had mentioned something that there might be a little bit of a shift from.

Ron: Keith I guess I'll move back half to the second quarter, but.

Ronald Lombardi: So you could add as we look to recalibrate our models for the balance.

Ronald Lombardi: Yeah, Anthony, hi. Obviously, we're not giving a specific guide to the back half quarters, but I would just remind you of the comps that we're going to be lapping from the fourth quarter of Fiscal 24.

Yeah, Anthony, so we're not given specific guide to the back half quarter, but I would just remind you of the concept we're going to be laughing from the fourth quarter of fiscal 24. Okay, got you. You'll have an easy compa and a fourth quarter as well. All right.

Speaker Change: Balance of the fiscal year.

Anthony: Yes Anthony.

Speaker Change: Specific to the back half quarters, but I would just remind you of the cost that we're going to be lapping from the fourth quarter of.

Christine Sacco: For fiscal 25, we still anticipate an A&M rate of just over 14% of sales and up in dollars versus the prior year. GNA expenses were 10.8% of sales in Q1 due to the timing of certain expenses. We still anticipate full-year GNA of approximately 9.5% as a percent of sales. Adjusted EPS of 90 cents compared to a dollar six in the prior year, down from the impact of lower Q1 revenues, air freight costs, and the timing of A&M and GNA spend.

Ron: Fiscal 'twenty four.

Ronald Lombardi: Okay, gotcha. Yeah, you'll have an easy comp in the fourth quarter as well. All right, and then lastly for me, as far as the international segment, which was up again this quarter. Anything you can call out as far as your ability or confidence level and your ability to sustain that performance internationally?

Speaker Change: Mhm Okay.

Ronald Lombardi: Got you Yeah, Youll have an easy comp in our fourth quarter as well.

Christine Sacco: Mm-hmm. Okay. Got you. Yeah. You'll have an easy comp in the fourth quarter as well. All right. And then lastly for me, as far as the international segment, which was up again this quarter. Anything you can call out as far as your ability or confidence level and your ability to sustain that performance internationally?

And then lastly, for me, as far as the international segment, so that was up again here in the quarter.

Ronald Lombardi: And then lastly for me as far as the International segment. So that was up again here in the quarter anything you can call out as far as your ability or confidence level and your ability to sustain that performance internationally.

Ronald Lombardi: Anything you can call out as far as your ability or confidence level and your ability to sustain that performance internationally. Yeah, Anthony. So, you know, international, as you mentioned, it's had a few years now of a really impressive growth and, you know, coming off of those comps. Hydro light, we've cited on the call had nice growth; sales were up double digits in a period. A few other brands and geographies were up. We have a brand called Zadden, that is an allergy I care and Australia had a real strong quarter. So really a diversified portfolio over there, an international segment similar to what we have here in North America.

Christine Sacco: Yeah, Anthony, International, as you mentioned, has had a few years now of really impressive growth, and coming off of those comps, HydroLite, which we highlighted on the call, had nice growth, sales were up double digits in the period. A few other brands, Engiographies were up. We have a brand called Zadidin that is an allergy eye care brand in Australia, and it had a real strong quarter. So, really, a diversified portfolio over there in our international segment, similar to what we have here in North America, and, as expected, the results, I think, organically, were up 5.3%, in line with our long-term algorithm of 5-plus percent, and no reason to think that's going to slow down any time We feel confident that that can happen. Thank you.

Anthony: Yes Anthony.

Speaker Change: International as you mentioned is that a few years now of really impressive growth.

Speaker Change: Coming off of those comps hydro.

Christine Sacco: For full year fiscal 25, we expect adjusted EPS growth of approximately 5 to 6% as well as an EBITDA margin in the low to mid-30s consistent with our long-term trends Finally, looking below the line, interest expense of approximately $13 million benefited from the effects of our continued debt reduction efforts Our Q1 adjusted tax rate of 22.9% excluded an unusually large discreet tax item we do not anticipate repeating We anticipate a normalized tax rate of just under 24% for the remaining quarters of fiscal 25 Now let's turn to slide 11 and discuss cash flow In Q1, we generated $53.6 million in free cash flow up double digits versus the prior year We continue to maintain industry leading free cash flow and are maintaining our outlook for the full year of 240 million or more At June 30, our net debt was approximately $1.1 billion, 1 billion of which is fixed and we maintained a covenant-defined leverage ratio of 2.8 times In the quarter, we repurchased approximately 400,000 shares for $26 million and will continue to evaluate further repurchases opportunistically for the remainder of fiscal 25 With that, I'll turn it back to Ron Thanks, Chris.

Speaker Change: Cited on the call have a nice growth sales were up double digits in the period.

Speaker Change: A few other brands and geographies were up we have a brand called <unk> added and that is an allergy Ikea in Australia had a real strong quarter, so really a diversified portfolio over there.

Speaker Change: International segment similar to what we have here in North America, and as expected the results organically five 3% in line with our long term algorithm of 5% and no reason to think that.

And, as expected, the results are organic. We're at 5.3% in line with our long term algorithm of five plus percent. No reason to think that's going to slow down anytime soon. We feel confident that that can continue.

Speaker Change: Slowdown anytime soon we feel confident that that can continue.

All right. Well, that's great to hear. Thank you. And best of luck. Thank you.

Operator: All right, well, that's great to hear. Thank you and best of luck.

Speaker Change: Alright, well that's great to hear thank you and best of luck.

Operator: And bye for our next question.

Operator: And bye for our next question. The next question comes from Mitchell Pinheiro with Sturtevant & Co. Go ahead. Your line is open.

Mitchell Pinheiro: And bye for our next question. The next question comes from Mitchell, the hero with stirred event and co go ahead. Your line is open. Hey, good morning. You know, I was curious. I may have missed it, but often cold was down significantly, you know, second consecutive quarter of double-digit declines. I didn't really quite understand why it's that large. And then also in oral care, you know, down in mid teens. I was curious. Just, you know, why the weakness there?

Speaker Change: Thank you.

Speaker Change: And our next question.

Speaker Change: The next question comes from Mitchell Pinheiro with Sturtevant <unk> Co go ahead. Your line is open.

Unnamed Participant: Hey, good morning. You know, I was curious. I may have missed it, but... Why the weakness there?

Operator: Hey, good morning. I was curious, I may have missed it, but Coffin Cold was down significantly, you know, second consecutive quarter of double-digit decline. I didn't really quite understand why, why, it's that large. And then also in oral care, you know, down in the mid-teens. I was curious.

Speaker Change: Hey, good morning.

Unnamed Participant: Yes.

Speaker Change: I was curious I may have missed it but.

Speaker Change: Cough and cold was down significantly second consecutive quarter of double digit declines.

Speaker Change: I didn't really quite understand why.

Unnamed Participant: Why.

Speaker Change: That large and then also in oral care.

Speaker Change: You know down mid teens I was curious.

Ronald Lombardi: You know, why the weakness there?

Unnamed Participant: Okay.

Speaker Change: Why the weakness there.

So for cough cold start with Mitch. It's really a comp issue here, right? Last year, retailer order patterns were still different than the historic level of the seasonality. So it's really accomplished. issue.

Ronald Lombardi: So for cough cold, I'll start with Mitch. It's really a comp issue here, right? Last year, retailer order patterns were still different than the historic level of seasonality. So it's really a comp issue for us.

Ronald Lombardi: Let's turn to slide 13 to wrap up. Our business is building momentum in our fiscal years off to a good start. We are reaffirming our full year outlook thanks to our diverse and leading consumer healthcare portfolio that is helping to offset near-term supply chain headwinds in I.K. For fiscal 25, we continue to anticipate revenues of $1,125,000,000 to $1,140,000,000 and organic revenue growth of approximately 1% versus fiscal 24. We're expecting Q2 revenues of $282,000,000 down slightly year-over-year again due to rise timing.

Mitch: So for for cough cold start with Mitch.

Speaker Change: It's really a comp issue here right last year retailer order patterns were still different than the historic level of the seasonality.

Speaker Change: So it's really a comp issue.

Ronald Lombardi: For us, we expect more of a seasonal trend for cough cold stuff, so we'll see the pre-season buys, maybe at the tail end of RQ-2, early Q-3. We'll see where that goes, and then we'll wait to see how incident levels play out. But as Chris mentioned earlier, the whole year we anticipate that the cough cold segment will be flat to down slightly for our shipment since the retailers. And then for oral care, it's really timing for the whole year performance versus the first quarter of last year. And again, consumption, this is another example where consumption is outpacing our shipment since the retailer, so it's a timing issue.

Ronald Lombardi: We expect more of a seasonal trend for cough and cold stuff, so we'll see the pre-season buys maybe at the tail end of our Q2, early Q3. We'll see where that goes, and then we'll wait to see how incident levels play out.

Speaker Change: For us we expect more of a seasonal trend for cough cold stuff. So we'll see the pre season buys maybe at the tail end of our Q2 early Q3, we will see where that goes and then we'll wait to see how incident levels play out, but as Chris mentioned earlier for the whole year we.

Ronald Lombardi: But as I think Chris mentioned earlier, for the whole year, we anticipate that the cough cold segment will be flat to down slightly for our shipments into the region. And then for oral care, it's really timing for the whole year performance versus the first quarter of last year. So, and again, consumption is another example where consumption is outpacing our shipments into the retailer. So it's a timing issue.

Speaker Change: That the cough cold segment will be flat to down slightly for our shipments into the retailers and then for oral care, it's really timing for the whole year performance.

Ronald Lombardi: We continue to look for ways to improve clear-eye shipments into retailers to support in stock levels. However, this doesn't change the full-year outlook but may shift sales from the second half into the first half. For EPS, we continue to anticipate adjusted EPS of $4.40 to $4.46 for the full year. For Q2, we anticipate EPS of a dollar rate. Lastly, we continue to anticipate pre-cash low of $240,000,000 or more with the benefit of capital deployment optionality that has a history of maximizing value for our shareholders.

Speaker Change: Versus the first quarter of last year.

Speaker Change: So and again consumption. This is another example, where consumption is outpacing our shipments into the retailer. So it's a timing issue.

Okay, and obviously you're in needs-based, have a needs-based portfolio, but are you having conversations with your customers regarding either pricing or promotion or anything? Are they asking for anything more in terms of helping with price to get consumers back in stores or buying branded, but is there any pressure? Are they asking for any discounts or promotions more so than normal? Yeah, really no change in that dynamic niche. We're not like the food isles, where inflation has had a different kind of impact on those that part of the store. For us, were needs-based, and consumers are looking for those trusted brands with products that have proven to work for them. So at this point, we really haven't seen any changing in that kind of dynamic.

Unnamed Participant: Okay.

Ronald Lombardi: Okay. I mean, obviously, you have a needs-based portfolio, but are you having conversations with your customers? You know, regarding either pricing or promotion or anything, are they asking for anything more in terms of sort of, you know, helping with price to get, you know, I don't say consumers back in stores or buying branded, but is there any, I don't say pressure, but are they asking for any discounts or promotions, more so than normal?

Unnamed Participant: And.

Unnamed Participant: With.

Speaker Change: I mean, obviously you're in need space have a needs based portfolio, but.

Unnamed Participant: Yeah.

Speaker Change: Are you having conversations with your customers.

Ronald Lombardi: You know, regarding either pricing or promotion or anything, are they asking for anything more in terms of sort of, you know, helping with price to get, you know, I don't say consumers back in stores or buying branded, but is there any, I don't say pressure, but are they asking for any discounts or promotions, more so than normal?

Ronald Lombardi: Regarding either pricing or promotion or anything.

Operator: With that, I'll open it up for questions. Operator? Thank you. At this time we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1-1 and wait for your name to be announced. To withdraw your question, please press star 1-1 again. Please stand by while we compile the Q&A roster.

Ronald Lombardi: Are they asking for anything more.

Ronald Lombardi: In terms of sort of.

Ronald Lombardi: Helping with price to get.

Ronald Lombardi: I don't see consumers back in stores or were buying branded but is there any.

Ronald Lombardi: I will see pressure, but are they asking asking for any discounts or promotions more so than normal.

Ronald Lombardi: Yeah, really no change in that dynamic Mitch. You know, we're not like the food aisles where inflation has had a different kind of impact on those in that part of the store. For us, we're needs-based, and consumers are looking for those trusted brands with products that have proven to work for them. So at this point, we really haven't seen any change in that kind of dynamic.

Speaker Change: Yeah really no change in that.

Rupesh Parikh: The first question comes from Rupesh Parik with Oppenheimer. Go ahead. Your line is open. Good morning, and thanks for taking my question. So just going back to supply chain, it sounds like from your commentary, you guys are on track and resolving the supply chain issue as you guys expected. Just want to confirm that. And then, you know, as you look at the eye category, you know, have you seen any shell for share loss or is it playing out, you know, exactly as you guys would have expected on the consumption basis.

Mitch: Dynamic Mitch we're not like the food aisle.

Speaker Change: Inflation has had a different kind of impact on those that part of the store for us where needs based.

Speaker Change: And consumers are looking for those trusted brands with products that have proven to work for them. So.

Ryan: At this point, we really havent seen any changing in that kind of dynamic amidst to highlight that in our original guide we talked about expecting about half half of our growth from price and half from volume. So we're still anticipating volume growth, which we have now for several years. So I think to highlight Ryan's point, a little different than some other categories you may be hearing about.

Yeah, Mitch, to highlight that in our original guide we talked about expecting about half of our growth from price and half from volume, so we're still anticipating volume growth, which we have now for several years. So I think to highlight Ron's point, you know, a little different than some other categories you may be hearing about from others.

Christine Sacco: Yeah, Mitch, to highlight that, in our original guide, we talked about expecting about half of our growth from price and half from volume. So we're still anticipating volume growth, which we have now for several years. So I think to highlight Ron's point, which is, you know, a little different than some other categories you may be hearing about from others.

Ronald Lombardi: Yeah, Mitch, to highlight that, in our original guide, we talked about expecting about half of our growth from price and half from volume. So we're still anticipating volume growth, which we have now for several years. So I think to highlight Ron's point, which is, you know, a little different than some other categories you may be hearing about from others.

Rupesh Parikh: Good morning, Rupesh. In terms of the clear eyes supply chain, we continue to be in line with what we talked about back in May in terms of production. Q1, we saw the ability to use some air freight to get stuff in a bit sooner at the end of the quarter. And what was originally anticipated, and as I just said in the prepared remarks, we're looking to see if we can get a bit more into the first half or the second half by continuing to use air freight.

Thank you, and then Crystal on G&A, you know, it's up. What were the discrete costs or items that caused the little bump this quarter? Yeah, so really just timing, you know, and I expect that to step down now for the remainder of the year, just the timing of initiatives, nothing, no one thing within G&A.

Christine Sacco: Thank you. And then, Chris, on G&A, you know, it's up. What were the discrete costs or items that caused the little bump this quarter?

Christine Sacco: Thank you. And then, Chris, on G&A, you know, it's up. What were the discrete costs or items that caused the little bump this quarter?

Speaker Change: From others.

Speaker Change: Okay. Thank you and then.

Crystal: Crystal on G&A.

Chris: What was the.

Chris: Discrete costs or items that caused the.

Chris: The little bump this quarter.

Christine Sacco: Yeah, so really just timing, you know, and I'd expect that to step down now for the remainder of the year, just the timing of initiatives, nothing, no one thing within G&A.

Christine Sacco: Yeah, so really just timing, you know, and I expect that to step down now for the remainder of the year, just the timing of initiatives, nothing, no one thing within G&A.

Speaker Change: Yes, so really just timing and I'd expect that to step down now for the remainder of the year just the timing of initiatives nothing no one thing within G&A.

Rupesh Parikh: So clear eyes supply chain on track at this point, we continue to fit about it. In terms of share in consumption, clear eyes continues to be well positioned at shelf. So we've been focusing on making sure that we've got a product available at shelf. So maybe not all the skews, but skews that can be consumed with demand at the shelf. So far is so good in terms of consumption and share. And then maybe just one Bob question, just given some concerns on the pharmacy channel, you know, Walgreens closing stores and looks like CBS's rationalized rationalizing their supply chain.

Ronald Lombardi: And then finally, I'd just love to hear your comments, any changes, or anything unusual that you could call out in the M&A environment.

Christine Sacco: And then finally, I'd just love to hear your comments, any changes or anything unusual that you could call out in the M&A environment in the West.

Ronald Lombardi: And then finally, I just love to hear your comments, any change or anything unusual that you could call out in the M&A environment over the last quarter. Yeah, no, the pipeline continues to be consistent with what we've seen over the years. We continue to look at things, and we'll remain disciplined. We have a lot of capital allocation optionality during the quarter. We repurchase some shares, right? We pay down some debt, and we'll continue to keep M&A as kind of our number two priority for cash flow allocation after investing in our brands. But no change to what we've been seeing this.

Speaker Change: And then finally, just I just love.

Ronald Lombardi: Love to hear your comments any change or anything unusual that you could call out.

Speaker Change: On the M&A environment.

Ronald Lombardi: Over the west.

Ronald Lombardi: Quarter.

Christine Sacco: Yeah, no, the pipeline continues to be consistent with what we've seen over the years. We continue to look at things, and we'll remain disciplined. We have a lot of capital allocation optionality during the quarter. We can repurchase some shares, right, pay down some debt, and we'll continue to keep M&A as kind of our number two priority for cash flow allocation after investing in our brands, but nothing, no change to what we've been seeing, Mitch.

Ronald Lombardi: Yes.

Speaker Change: Pipeline continues to be consistent with what we've seen over the years.

Operator: Thank you.

Ronald Lombardi: <unk> to look at things and we will remain disciplined.

Speaker Change: We have a lot of capital allocation optionality during the quarter, we repurchased some shares and pay down some debt and we will continue to keep M&A is kind of our number two priority for cash flow allocation after investing in our brands but.

Rupesh Parikh: Just how do you guys feel about, you know, inventory the channel within pharmacy and, you know, any concerns about inventory stocking going forward? Yeah, at this point in total, we haven't seen any headwinds from retailers reducing inventory in total, you know, certainly some channels have some activities going on that's being offset by both in other channels. And then the other thing I'll comment on is what you may be hearing from other others in the industry is it's really more cost cold and other categories that we don't plan in a big way at this point.

Speaker Change: No change to what we've been seeing image.

Thank you.

Ronald Lombardi: Okay.

Trevor Sahr: As a reminder to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced. Our next question comes from Trevor, so here with William Blair. Go ahead; your line is open. Hi, I think this is Trevor on for Jon. Just one question for me. Kind of scanning through the thank you here and looking at some of the categories and the overview, looking at some of these eye and ear care is up and out performing. A lot of the other ones are performing quite as well. I think we've walked through a couple of them, but from a high level, what are you seeing broadly across the rest of the portfolio?

Speaker Change: Thank you.

Operator: As a reminder, to ask a question, you will need to press star one on your telephone and wait for your name to be announced. Your next question comes from Trevor Sahir with William Blair. Go ahead. Your line is open.

Speaker Change: As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced.

Ronald Lombardi: Your next question comes from Trevor here with William Blair Go ahead. Your line is open.

Operator: Hi. Thanks. This is Trevor for Jon.

Ronald Lombardi: Alright. Thanks. This is Trevor on for John just one question for me.

Operator: Just one question for me. Kind of scanning through the thank you notes here and looking at some of the categories and the category performance, I would love to hear just a little bit of an overview. Looking at some of these, eye and ear care is up and outperforming. A lot of the other ones aren't performing quite as well. I think we've walked through a couple of them, but from a high level, what are you seeing broadly across the rest of the portfolio that are leading to some of these declines, if these are long-term impacts or kind of short-term impacts that you're lapping? Just kind of any other detail you could provide on some of the segmenting and category information for the quarter.

Speaker Change: Kind of scanning through the thank you here and looking at some of the the <unk>.

Speaker Change: Categories in the category performance.

Speaker Change: Love to hear just a little bit of.

Rupesh Parikh: So we'll see how that plays out, but at this point, we continue to be well positioned to get through that. And then just my final question, just given some concerns out there on the consumer, you know, as you look at your categories and, you know, are you seeing any shifts to private labor or any other new consumer dynamics during the sponsor? Yeah, you know, we talked about the last couple of quarters because what we've seen is consumers shifting where they buy looking for better value for the brands that they bought historically rather than any change in what they buy. So at this point, you know, we continue to believe that taking care of your health or someone in your family. It's the last place you look to make a change or save a few pennies.

Speaker Change: In overview.

Speaker Change: Looking at some of these.

Speaker Change: Your care as is often the.

Ronald Lombardi: Outperforming.

Operator: Great, thank you all possible on. Great, thank you. One moment for our next question.

Speaker Change: A lot of the other ones are performing quite as well.

Speaker Change: I think we've walked through a couple of them but.

Speaker Change: From a high level, what are you seeing broadly across the rest of the portfolio.

They're leading to some of these declines if these are long-term impacts or kind of short-term that you're lapping, just kind of any other detail you could provide over some of the segmenting and category information in the quarter.

Speaker Change: They are leading some of these declines as these are long term.

Speaker Change: <unk> are kind of short term that youre lapping just kind of any any other detail you can provide over some of the segmenting and category information in the quarter.

Good morning, Trevor. First of all, I think I'll start with, we generally feel good about the overall consumption trends for our brands and our portfolio. We talked about a few of them already this morning, and as you just mentioned, we've got some funny comp stuff going on. Oral care and cough cold for different reasons, but we've got some funny comp things that were the big drivers behind the declines year over year for those categories. We do have the supply chain challenges and clear eyes, but it's really being way more than offset by very strong performance in seroteurs, debrocks and style, which is the majority of the driver and performance in the ear and eye category to call out.

Ronald Lombardi: Good morning, Trevor. So first of all, I think I'll start with, you know, we generally feel good about the overall consumption trends for our brands in our portfolio. We talked about a few of them already this morning. And as you just mentioned, we've got some funny comp stuff going on. Oral care and cough cold for different reasons, but we've got some funny comp things that were the big drivers behind the declines year over year for those categories.

Trevor: Good morning Trevor.

Speaker Change: First of all I think.

Speaker Change: I'll start with we generally feel good about the overall consumption trends.

Speaker Change: For our brands in our portfolio.

Speaker Change: We talked about a few of them already this morning, and as you just mentioned, we've got some funny comp stuff going on.

Speaker Change: Oral care and cough cold for different reasons, but we've got some funny comp things that were the big drivers, but behind the declines year over year for those categories.

Susan Anderson: The next question comes from Susan Anderson with conic originality. Go ahead. Your line is open. Hi, good morning. Thanks for taking my questions. I was wondering just in terms of the North America business, do you give us an idea of how much the decline was due to clear eyes versus the woman's health versus with their cold coffee then? And I guess should we expect that same trend as we look into next quarter?

Ronald Lombardi: We do have the supply chain challenges with clear eyes, but they're really being way more than offset by very strong performance in TheraPierce, D-Brox, and Stye, which is the majority of the driver of performance in the ear and eye category to call out. And then, as Chris mentioned earlier, the international business at 5% continues to have good performance. So a lot of noise this quarter when you look at the category performance, which is why I would encourage you to continue to listen around our full year guidance of up, you know, plus 1% or so with the offset of the clear eyes supply chain. So again, we feel good with what's going on. Thanks, Ron. Thank you.

Speaker Change: We do have the supply chain challenges and clear eyes, but it's really being way more than offset by very strong performance in third tiers D blocks and Sky, which is the majority of the driver and performance in the <unk> category.

And then, as Chris mentioned earlier, the international business at 5% continues to have good performance. So a lot of noise this quarter when you look at the category performance, which is why I would encourage you to continue to listen around our full-year guidance of plus 1% or so, with the offset of the clear eyes supply chain. So again, we feel good with what's going on here.

Ronald Lombardi: To call out.

Ronald Lombardi: And then as Chris mentioned earlier, the international business at 5% continues to have good performance. So a lot of noise. This quarter. When you look at the category performance.

Susan Anderson: So, we have a little bit of a hard time hearing at the beginning. I think Susan, you're asking us to give a little detail behind the makeup and what drove sales the class year over here? Yeah, correct. So, as we look to the various categories, women's health, I would say, as expected, and you'll be able to see these categories versus the prior year, it was down about 5 million. Cobb cold, again, as expected, down similarly to women's health.

Speaker Change: Which is why I would encourage to encourage you to continue to listen around our full year guidance.

Speaker Change: Plus 1% or so.

Speaker Change: With the offset of the clear eyes supply chain. So again, we feel good.

Speaker Change: What's going on here.

Thanks, Ron.

Thank you.

Ron: Thanks, Ron.

Speaker Change: Okay. Thank you.

Ronald Lombardi: I'm showing no further questions at this time, so I would now like to turn the call back over to CEO Ron Lombardi for closing comments. Thank you, operator, and thanks to everyone for joining us this morning. We look forward to providing another update after Q2.

Ronald Lombardi: I'm showing no further questions at this time, so I would now like to turn the call back over to CEO Ron Lombardi for closing comments.

Operator: I have no further questions at this time, so I would now like to turn the call back over to CEO Ron Lombardi for closing comments.

Ronald Lombardi: Im showing no further questions at this time I would now like to turn the call back over to CEO, Ron Lombardi for closing comments.

Susan Anderson: We're expecting Cobb cold trends to be flat to down slightly, seasonality of and versus the comps of last year is what's going to drive the improvement in the second quarter versus the first quarter. Women's health, seeing improvement as Ron mentioned is prepared remarks, but likely to be a bit challenged still in the second quarter. Have a little bit of a backside wind in the second quarter that we're planning for, but sequential improvement in eye care expected. And remember, as we commented in the remarks, if you heard the year and eye care category, also saw strong performance from Syracuse, D-Brock and Si, so really all the brands in that portfolio hitting all cylinders.

Ronald Lombardi: Thank you, operator, and thanks to everyone for joining us this morning. And we look forward to providing another update after Q2. Have a great day.

Ron Lombardi: Thank you operator, and thanks to everyone for joining us this morning, and we look forward to providing another update after Q2 have a great day.

Have a great day.

Operator: Thank you for your participation in today's conference.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now go.

Ronald Lombardi: Thank you for your participation in today's conference. This does conclude the program. You may now go.

Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

This does conclude the program. You may now just come.

Ronald Lombardi: Okay.

Ronald Lombardi: [music].

Ronald Lombardi: Okay.

Ronald Lombardi: Okay.

Ronald Lombardi: [music].

Susan Anderson: Okay, great. And then I guess maybe just a follow up. So, on the eye care business, it sounds like the manufacturing plants are not necessarily quite up and running yet. Is that correct? And I guess, you know, when you guys expect them to be and should we expect more air freight to impact those margin in the second quarter? Thanks. Yeah, so production levels really through the end of July continue to be in line with what we anticipated.

Ronald Lombardi: <unk>.

Ronald Lombardi: [music].

Susan Anderson: We've got two suppliers and they're again largely as expected. And we anticipate that they'll be continuing to ramp up the output level as the year continues. And then for the second quarter, I think as we mentioned earlier, we anticipate some additional air freight to continue to focus on service levels. So if we can expedite, get it in and get it back out to the retailers to help with in stock at shelf, that's what we're going to be focused on. And that's how you think we included in our guide? Yeah, okay.

Operator: Great. Thanks so much. I'll pass it along. Thank you. One moment while we prepare the next question.

Ronald Lombardi: So.

Ronald Lombardi: Hum.

Ronald Lombardi: [music].

Linda Bolton: The next question is from Linda Bolton Weiser with DA Davidson. Go ahead. Your line is open. Yes, hi. So I was wondering in terms of the track channel, POS data, which I know doesn't tell the whole picture, but still the data actually look really pretty strong for clear eyes. Like, you know, oddly strong actually, can you shed a little light on how the POS does look so strong, even though there are some supply issues.

Ronald Lombardi: Sure.

Ronald Lombardi: Yes.

Ronald Lombardi: Okay.

Ronald Lombardi: [music].

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Ronald Lombardi: Okay.

Ronald Lombardi: Okay.

Ronald Lombardi: Okay.

Ronald Lombardi: Okay.

Ronald Lombardi: [music].

Linda Bolton: Is it just that retailers had enough inventory or just can you kind of give a little more color on why it actually does look so good? So, consumption is outtacing our shipments into the retailers for clear rides. So that's the first part of it. And the second is, we've been focused on making sure we've got some product available that we can ship so that there's something at shelf. So when consumers are showing up at the shelf, Linda, there's product there for them, which is what's driving consumption.

Linda Bolton: And really it's the continuation of strong performance for that brand. It's really nothing new for us. That's a new product out there and some campaigns that we've had going on for a while here that continue to do well in the marketplace.

Linda Bolton: Okay. And then, just on the women's health business, I know you commented that modest status, largely stabilized. Can you just refresh off on exactly the actions taken and what is kind of stabilizing that business? I mean, given that it driven by incident by illness incidents among women. So how can that be controlled? So what are the marketing actions that you've taken that have stabilized that? So, a couple of things. First, the marketing campaign and the messaging was refined over the last year to better connect with consumers or digital and TV messaging is more on point than it was kind of a year, year and a half ago.

Linda Bolton: And then, there's really two parts of the monostat business. We've got cure, which you're right when it is linked to incident level, detection, incident level. And then, there's the care line of products where we've got a number of new products out the boric acid wash that is really doing well. So, it's never one thing that turns the brand around, but it's still elements around monostat that have repositioned it to the ability to position that for growth.

Linda Bolton: And then, to get into summer's eve, as I mentioned on the prepared remarks, we continue to make good progress on washing wipes with new products and digital messaging that are out there. And we continue to focus on the on the goal to get that segment revived with a market leader with more than 50 share for that segment. And it's really up to us to get that element back to growth and we're focused on it.

Operator: Okay, thank you. That's it for me. I'll pass it on. Thanks. Thank you, Linda. Thank you. And reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. I'll now bring up the next question.

Anthony Lebiedzinski: Next question comes from Anthony. [inaudible] Yeah, good morning, Anthony, it's Chris. So, air freight was the entire difference delta to our expectations. We had guided to 55 and a half percent for the first quarter. And air freight was really the difference there. Okay, that's very helpful. Chris, yeah, thanks. And then so, so I know you guys gave some color as to what you expect for the second quarter. You reaffirmed your full year guidance, obviously.

Anthony Lebiedzinski: So, as we look at the back half of the fiscal year, and we look to update our models for Q3 and Q4, anything there you can call out there as far as how to think about the cadence of sales and earnings. I know Ron, you had mentioned something that there might be a little bit of a shift from Q, I guess from the back half to the second quarter. But anything else you can add as we look to recalibrate our models for the balance of the fiscal year.

Anthony Lebiedzinski: Yeah, Anthony, so we're not given specific guide to the to the back half quarter, but I would just remind you of the concept we're going to be laughing from the fourth quarter of fiscal 24. Okay, got you. You'll have an easy compa and a fourth quarter as well. All right. And then lastly, for me, as far as the international segment, so that was up again here in the quarter. Anything you can call out as far as your ability or confidence level and your ability to sustain that performance internationally.

Anthony Lebiedzinski: Yeah, Anthony. So, you know, international as you mentioned, it's had a few years now of a really impressive growth and, you know, coming off of those comps. Hydro light, we've cited on the call had nice growth sales were up double digits in a period, a few other brands and geographies were up. We have a brand called Zadden, that is an allergy I care and Australia had a real strong quarter. So really a diversified portfolio over there, an international segment similar to what we have here in North America.

Anthony Lebiedzinski: And as expected, the results are organic. We're at 5.3% in line with our long term algorithm of five plus percent. No reason to think that's going to slow down anytime soon. We feel confident that that can continue.

Anthony Lebiedzinski: All right. Well, that's great to hear. Thank you. And best of luck. Thank you.

Operator: And bye for our next question.

Mitchell Pinheiro: The next question comes from Mitchell, the hero with stirred event and co go ahead. Your line is open. Hey, good morning. You know, I was curious. I may have missed it, but often cold was down significantly, you know, second consecutive quarter of double digit declines. I didn't really quite understand why it's that large. And then also in oral care, you know, down in mid teens. I was curious. Just, you know, why the weakness there? So for for cough cold start with Mitch. It's really a comp issue here, right? Last year, retailer order patterns were still different than the historic level of the seasonality. So it's really accomplished, issue.

Mitchell Pinheiro: For us, we expect more of a seasonal trend for cough cold stuff, so we'll see the pre-season buys, maybe at the tail end of RQ-2, early Q-3, we'll see where that goes, and then we'll wait to see how incident levels play out, but as Chris mentioned earlier, the whole year we anticipate that the cough cold segment will be flat to down slightly for our shipment since the retailers, and then for oral care, it's really timing for the whole year performance versus the first quarter of last year, and again, consumption, this is another example where consumption is outpacing our shipment since the retailer, so it's a timing issue. Okay, and obviously you're in needs-based, have a needs-based portfolio, but are you having conversations with your customers regarding either pricing or promotion or anything?

Mitchell Pinheiro: Are they asking for anything more in terms of helping with price to get consumers back in stores or buying branded, but is there any pressure? Are they asking for any discounts or promotions more so than normal? Yeah, really no change in that dynamic niche. We're not like the food isles where inflation has had a different kind of impact on those that part of the store for us were needs-based, and consumers are looking for those trusted brands with products that have proven to work for them, so at this point we really haven't seen any changing in that kind of dynamic.

Mitchell Pinheiro: Yeah, Mitch, to highlight that in our original guide we talked about expecting about half of our growth from price and half from volume, so we're still anticipating volume growth, which we have now for several years, so I think to highlight Ron's point, you know, a little different than some other categories you may be hearing about from others.

Mitchell Pinheiro: Thank you, and then Crystal on G&A, you know, it's up, what were the discrete costs or items that caused the little bump this quarter? Yeah, so really just timing, you know, and I expect that to step down now for the remainder of the year, just the timing of initiatives, nothing, no one thing within G&A.

Mitchell Pinheiro: And then finally, I just love to hear your comments, any change or anything unusual that you could call out in the M&A environment over the last quarter. Yeah, no, the pipeline continues to be consistent with what we've seen over the years. We continue to look at things and we'll remain disciplined. We have a lot of capital allocation optionality during the quarter. We repurchase some shares, right, we pay down some debt, and we'll continue to keep M&A as kind of our number two priority for cash flow allocation after investing in our brands. But no change to what we've been seeing this.

Operator: Thank you. As a reminder to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced.

Trevor Sahr: Our next question comes from Trevor, so here with William Blair. Go ahead, your line is open. Hi, I think this is Trevor on for Jon, just one question for me. Kind of scanning through the thank you here and looking at some of the categories and the overview, looking at some of these eye and ear care is up and out performing. A lot of the other ones are performing quite as well. I think we've walked through a couple of them, but from a high level, what are you seeing broadly across the rest of the portfolio?

Trevor Sahr: They're leading to some of these declines if these are long-term impacts or kind of short-term that you're lapping, just kind of any other detail you could provide over some of the segmenting and category information in the quarter. Good morning, Trevor. First of all, I think I'll start with, we generally feel good about the overall consumption trends for our brands and our portfolio. We talked about a few of them already this morning, and as you just mentioned, we've got some funny comp stuff going on.

Trevor Sahr: Oral care and cough cold for different reasons, but we've got some funny comp things that were the big drivers behind the declines year over year for those categories. We do have the supply chain challenges and clear eyes, but it's really being way more than offset by very strong performance in seroteurs, debrocks and style, which is the majority of the driver and performance in the ear and eye category to call out. And then, as Chris mentioned earlier, the international business at 5% continues to have good performance.

Trevor Sahr: So a lot of noise this quarter when you look at the category performance, which is why I would encourage you to continue to listen around our full-year guidance of plus 1% or so with the offset of the clear eyes supply chain. So again, we feel good with what's going on here. Thanks, Ron. Thank you.

Ronald Lombardi: I'm showing no further questions at this time, so I would now like to turn the call back over to CEO Ron Lombardi for closing comments.

Ronald Lombardi: Thank you, operator, and thanks to everyone for joining us this morning, and we look forward to providing another update after Q2.

Operator: Have a great day. Thank you for your participation in today's conference.

Operator: This does conclude the program. You may now just come. [inaudible]