Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you expand on where the upside in organic growth guidance is coming from versus your prior expectations?
A: Noel R. Wallace - Chairman, CEO & President: The upside is largely due to balanced organic sales growth, with strong pricing across the board and share growth globally. This includes volume growth despite headwinds and robust investment in advertising, driving growth across the portfolio.
Q: Could you discuss the market share trends in Oral Care by region?
A: Noel R. Wallace - Chairman, CEO & President: We're seeing acceleration in market shares globally, especially in Europe with record shares and strong performance in therapeutic brands. The growth is broad-based across regions, driven by increased spending and innovation.
Q: How should we think about the gross margin progression throughout the year?
A: Noel R. Wallace - Chairman, CEO & President: Expect pricing to ladder down as the year progresses, with continued focus on revenue growth management and productivity to drive gross margin expansion despite headwinds from transactional foreign exchange and raw material costs.
Q: What are the expectations for the Hill's pet food business in terms of volume and innovation?
A: Noel R. Wallace - Chairman, CEO & President: We anticipate sequential volume improvement, driven by strong share growth and innovation, particularly in wet pet food. The focus is on leveraging new manufacturing capabilities to enhance product offerings and market penetration.
Q: How is consumer behavior affecting volume growth, especially in the U.S. and China?
A: Noel R. Wallace - Chairman, CEO & President: Consumer behavior is constructive, with a return to volume growth as inflation stabilizes. The focus is on maintaining vibrant brands through innovation and advertising, particularly in premium segments.
Q: Could you elaborate on your strategy for advertising spend and its expected ROI?
A: Noel R. Wallace - Chairman, CEO & President: The strategy involves increasing spend to drive premiumization and category value. The focus is on using data and analytics to optimize media spend and improve ROI, with continued investment to build brand saliency and drive long-term growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
