艾利丹尼森 (AVY) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. (Operator Instructions)

女士們先生們，謝謝你們的支持。（操作員說明）

Welcome to Avery Dennison's Earnings Conference Call for the Third Quarter ended on September 28, 2024. This call is being recorded and will be available for replay after 4:00 p.m. Eastern Time, today and until midnight Eastern Time, October 2, 2024.

歡迎參加艾利丹尼森於 2024 年 9 月 28 日結束的第三季財報電話會議。此通話正在錄音，並將在下午 4:00 後重播。東部時間，今天至東部時間 2024 年 10 月 2 日午夜。

Track us to replay, please dial 18007702030 or 1609800-9909 for international callers. The conference ID number is 5855706.

追蹤我們重播，國際電話請撥打18007702030或1609800-9909。會議ID號碼為5855706。

I'd now like to turn the call over to John Eble, Avery Dennison, Vice President of Finance and Investor Relations. Please go ahead, sir.

我現在想將電話轉給艾利丹尼森財務和投資者關係副總裁 John Eble。請繼續，先生。

Thank you, Jeremy. Please note that throughout today's discussion, we'll be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined, qualified and reconciled from GAAP on schedules A-4 to A-9 of the financial statements accompanying today's earnings release.

謝謝你，傑瑞米。請注意，在今天的討論中，我們將提及非公認會計準則財務指標。我們使用的非 GAAP 衡量標準是根據 GAAP 定義、限定和調整的，請參閱今天收益發布所附財務報表附表 A-4 至 A-9。

We remind you that we'll make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These forward-looking statements are made subject to the safe harbor statement included in today's earnings release.

我們提醒您，我們將做出某些預測性陳述，以反映我們對未來業績和財務表現的當前看法和估計。這些前瞻性陳述是根據今天的收益發布中包含的安全港聲明做出的。

On the call today are Deon Stander, President and Chief Executive Officer; and Greg Lovins, Senior Vice President and Chief Financial Officer.

今天參加電話會議的是總裁兼執行長 Deon Stander；資深副總裁兼財務長 Greg Lovins。

I'll now turn the call over to Deon.

我現在將把電話轉給 Deon。

Thanks, John, and hello, everyone. We delivered another strong quarter with earnings per share of $2.33, above our expectations and are raising our full year guidance. We now expect earnings of $9.35 to $9.50 per share for the year and are targeting roughly 20% earnings growth compared to prior year.

謝謝約翰，大家好。我們再次實現了強勁的季度業績，每股收益為 2.33 美元，高於我們的預期，並上調了全年指引。我們目前預計今年每股收益為 9.35 美元至 9.50 美元，目標收益較上年增長約 20%。

Both Materials Group and Solutions Group delivered strong bottom-line growth in the quarter. And in Intelligent Labels, we are delivering another year of strong top line growth and continue to see significant opportunity ahead. Materials Group continued to demonstrate its resilience in the third quarter, again delivering solid volume growth and strong margins.

材料集團和解決方案集團在本季度實現了強勁的利潤成長。在智慧標籤領域，我們又迎來了營收強勁成長的一年，並繼續看到未來的重大機會。材料集團在第三季度繼續展現其韌性，再次實現了銷量的穩健成長和強勁的利潤率。

In North America and Asia, volume increased compared to prior year and sequentially, in line with expectations. In Europe, volume was slightly below expectations, increasing compared to prior year and down sequentially, largely driven by normal volume seasonality.

在北美和亞洲，銷售量與去年同期相比有所增加，符合預期。在歐洲，成交量略低於預期，與去年相比有所增加，但環比有所下降，這主要是受到正常成交量季節性的推動。

Broadly, macro retail volumes remain soft relative to long-term trends, particularly in developed regions as the cumulative effects of inflation continue to end consumers, and we do not anticipate this will change in the near term.

整體而言，宏觀零售量相對於長期趨勢仍然疲軟，特別是在已開發地區，因為通膨的累積影響持續影響最終消費者，我們預期這種情況短期內不會改變。

Solutions Group delivered strong sales growth and margins in the third quarter, driven by strong growth in the base and continued growth in high-value solutions. Overall, the apparel category was strong after normalizing midyear as we expected, providing further evidence that retailers and brands are largely through destocking.

在基礎強勁成長和高價值解決方案持續成長的推動下，解決方案集團第三季​​實現了強勁的銷售成長和利潤率。總體而言，正如我們預期的那樣，服裝類別在年中正常化後表現強勁，進一步證明零售商和品牌很大程度上是透過去庫存實現的。

In the quarter, we were able to largely overcome some interruption in the apparel industry due to the unrest in Bangladesh, a key apparel sourcing country. Within high-value solutions, strong growth in apparel and general retail categories was partially offset by logistics and drugstore channel softness. Focusing on our Intelligent Labels platform.

本季度，我們基本上克服了由於主要服裝採購國孟加拉國的騷亂而造成的服裝行業的一些中斷。在高價值解決方案中，服裝和一般零售類別的強勁成長被物流和藥局通路的疲軟部分抵消。專注於我們的智慧標籤平台。

As we continue to connect billions of physical items of digital identities, I have high conviction in delivering against our target of roughly 15% plus sales growth over the long term. This multi-decade growth opportunity will be driven by continued adoption in apparel and accelerated adoption in new segments such as food, logistics and general retail, a key focus for us in the near term.

隨著我們繼續連接數十億個數位身分實體項目，我堅信能夠實現我們的長期銷售成長約 15% 以上的目標。這一數十年的成長機會將由服裝的持續採用以及食品、物流和一般零售等新領域的加速採用來推動，這是我們近期的重點關注點。

As the market leader, we are extremely well positioned to capitalize on this opportunity. In food, we announced a strategic collaboration with Kroger focused on building a better customer and associate experience through RFID technology.

身為市場領導者，我們處於非常有利的位置來利用這個機會。在食品領域，我們宣布與 Kroger 進行策略合作，重點是透過 RFID 技術打造更好的客戶和員工體驗。

This collaboration makes item-level digital identification possible, enabling more frequent and accurate inventory information to maximize freshness, reduce waste and improve the associate experience the collaboration will begin in the bakery department across the Kroger network.

此次合作使物品級數位識別成為可能，從而實現更頻繁、更準確的庫存信息，以最大限度地提高新鮮度、減少浪費並改善員工體驗。開始。

This is the first grocer moving to rollout for item level RFID tagging and represents a significant step forward for our Intelligent Labels business and the industry overall, in a very large addressable market with significant opportunity for growth in the years to come.

這是第一家推出商品級 RFID 標籤的雜貨店，代表著我們的智慧標籤業務和整個行業向前邁出了重要一步，在一個非常大的潛在市場中，未來幾年有巨大的成長機會。

Turning to results. Enterprise wide Intelligent Label sales were up mid-teens year-to-date. As we shared during our Investor Day, new customer rollouts will be uneven, particularly due to the pace of deployment as well as by comparison to initial volume builds for new program adoption in prior years. In this context, we now expect double-digit growth for the full year on softer logistics volume.

轉向結果。今年迄今為止，企業範圍內的智慧標籤銷售額成長了十幾歲。正如我們在投資者日期間分享的那樣，新客戶的推出將不均衡，特別是由於部署速度以及與前幾年採用新計劃的初始​​數量相比。在此背景下，我們現在預計，由於物流量疲軟，全年將出現兩位數成長。

Overall, the ability of our solutions to help address industry challenges, such as labor efficiency, waste, transparency and consumer connection in very large volume categories like logistics, retail and food is increasingly resonating with customers. Key pilots and rollouts are delivering significant value and compelling proof points for broader segment adoption.

總體而言，我們的解決方案有助於解決行業挑戰的能力，例如物流、零售和食品等大批量類別的勞動效率、浪費、透明度和消費者聯繫，並越來越引起客戶的共鳴。關鍵的試點和推廣為更廣泛的細分市場採用提供了巨大的價值和令人信服的證據。

We continue to invest to capture the significant opportunity ahead as we grow the size of the overall industry, further advancing our leadership position at the intersection of the physical and digital. Stepping back, the underlying fundamentals of our business are strong. We're exposed to diverse and growing markets with clear catalysts for long-term growth.

隨著整個產業規模的擴大，我們將繼續投資，以抓住未來的重大機遇，進一步提升我們在實體和數位交叉領域的領導地位。退一步來說，我們業務的基本面是強勁的。我們面臨多元化且不斷成長的市場，這些市場具有明顯的長期成長催化劑。

We are industry leaders in our primary businesses with clear competitive advantages in scale and innovation, and we have a clear set of strategy that we continue to evolve over time and are key to our success over the long term and acute and dynamic environments will enable us to continue to generate superior value creation through a balance of GDP-plus growth and top quartile returns over the long term.

我們是主要業務的行業領導者，在規模和創新方面具有明顯的競爭優勢，我們有一套明確的策略，隨著時間的推移，我們將不斷發展，這是我們長期成功的關鍵，尖銳和動態的環境將使我們能夠透過平衡GDP+成長和長期最高四分之一的回報，持續創造卓越的價值。

In summary, we delivered another strong quarter and raised our guidance for the year to deliver nearly 20% earnings growth in 2024. While we are increasing our outlook for the year, the environment remains uncertain and were in some degree of caution, we remain confident in delivering 10% earnings growth across a range of scenarios over the cycle recently laid out in our Investor Day.

總而言之，我們再次實現了強勁的季度業績，並上調了全年指引，預計 2024 年獲利將成長近 20%。雖然我們提高了今年的前景，但環境仍然不確定，並且處於一定程度的謹慎態度，但我們仍然有信心在投資者日最近提出的周期內的一系列情景中實現 10% 的盈利增長。

I want to thank our entire team for their continued resilience, focus on excellence and commitment to addressing the challenges at hand.

我要感謝我們整個團隊的持續韌性、對卓越的關注以及對應對當前挑戰的承諾。

And with that, I'll hand the call over to Greg.

這樣，我就把電話轉給格雷格。

Thanks, Dean, and hello, everybody. In the third quarter, we delivered adjusted earnings per share of $2.33, up 9% compared to prior year, driven largely by benefits from higher volume and productivity. Compared to prior year, sales were up 5% ex currency and 4% on an organic basis as higher volume was partially offset by deflation-related price reductions.

謝謝，迪恩，大家好。第三季度，我們的調整後每股收益為 2.33 美元，比去年同期成長 9%，這主要得益於產量和生產力的提高。與上年相比，銷售額按匯率計算增長了 5%，有機增長 4%，因為銷量增加被通貨緊縮相關的價格下降部分抵消。

Adjusted EBITDA margin was strong at 16.4% in the quarter, up 40 basis points compared to prior year, with strong margins in both segments. And we continue to generate strong free cash flow with $420 million generated through the first three quarters, up nearly $50 million compared to prior year.

本季調整後 EBITDA 利潤率為 16.4%，較上年同期成長 40 個基點，兩個細分市場的利潤率均強勁。我們繼續產生強勁的自由現金流，前三個季度產生 4.2 億美元，比去年增加近 5,000 萬美元。

Our balance sheet remains strong with a net debt to adjusted EBITDA ratio at quarter end of 2.1, which includes paying down $300 million of debt, which matured in August. We continue to execute our disciplined capital allocation strategy, including investing in organic growth and acquisitions while continuing to return cash to shareholders.

我們的資產負債表仍然強勁，季度末的淨負債與調整後 EBITDA 比率為 2.1，其中包括償還 8 月到期的 3 億美元負債。我們繼續執行嚴格的資本配置策略，包括投資有機成長和收購，同時繼續向股東返還現金。

In the first nine months of the year, we returned $315 million to shareholders through the combination of share repurchases and dividends. And in the third quarter, we repurchased 300,000 shares and distributed $71 million in dividends.

今年前九個月，我們透過股票回購和股利結合的方式向股東返還了 3.15 億美元。第三季度，我們回購了 30 萬股股票，並發放了 7,100 萬美元的股息。

Turning to segment results for the quarter. Materials Group sales were up 4% ex currency and on an organic basis compared to prior year. Driven by mid-single-digit volume growth, partially offset by deflation-related price reductions.

轉向本季的分部業績。與前一年相比，材料集團的銷售額（以匯率計算）有機成長 4%。受到中個位數銷售成長的推動，但部分被通貨緊縮相關的價格下降所抵消。

Looking at label materials organic volume trends versus prior year in the quarter North America was up mid- to high single digits. Europe was up mid-single digits, including the impact of the slight volume pull forward into Q2 that we noted last quarter.

從標籤材料的有機銷售趨勢來看，本季北美地區的有機銷售量成長了中等到高個位數。歐洲成長了中個位數，其中包括我們上個季度注意到的第二季成交量小幅成長的影響。

Asia Pacific was up low single digits and Latin America was up mid- to high single digits. High Value segment growth was also strong with graphics and reflective sales up mid-single digits organically and takes up low single digits organically with particular strength in industrial categories.

亞太地區出現低個位數成長，拉丁美洲出現中高個位數成長。高價值細分市場的成長也很強勁，圖形和反光銷售額有機成長到中個位數，並有機地佔據低個位數，尤其是工業類別。

Materials Group delivered a strong adjusted EBITDA margin of 17% in the third quarter, moderating sequentially as expected due to typical volume seasonality and comparable to prior year as higher volume and benefits from productivity were offset by higher employee-related costs and the net impact of pricing and raw material costs. Regarding raw material costs in the third quarter, globally, we saw low single-digit inflation sequentially as expected.

材料集團第三季​​的調整後EBITDA 利潤率為17%，由於典型的銷售季節性因素，該利潤率按預期連續放緩，與上年相比，銷量增加和生產力帶來的收益被員工相關成本上升和淨影響所抵銷。關於第三季的原料成本，在全球範圍內，我們看到通貨膨脹率連續低位個位數，正如預期的那樣。

The increase was driven by higher paper prices, primarily in Europe. We've addressed the cost increases through a combination of product reengineering and pricing actions as we discussed last quarter. As we move through the third quarter, paper prices began to stabilize. Overall, we expect our raw material cost to be fairly stable in the fourth quarter.

這一增長是由紙價上漲推動的，主要是在歐洲。正如我們上季度討論的那樣，我們透過產品重新設計和定價行動相結合來解決成本增加問題。隨著第三季的到來，紙張價格開始穩定。整體而言，我們預計第四季原物料成本將相當穩定。

Shifting now to Solutions Group. Sales were up 6% with base solutions up mid-teens as apparel volume (inaudible) remain normalized and high-value solutions were up low single digits. Within our high-value solutions, strong growth in Intelligent Labels, apparel and general retail categories was partially offset by logistics and softer volumes in our drug store channel in Vestcom.

現在轉移到解決方案組。由於服裝銷售（聽不清楚）保持正常化，而高價值解決方案的銷售額增長了低個位數，基礎解決方案的銷售額增長了 6%。在我們的高價值解決方案中，智慧標籤、服裝和一般零售類別的強勁成長被物流和 Vestcom 藥局通路的銷售疲軟部分抵消。

As Deon mentioned, enterprise-wide intelligent label sales grew mid-teens through the first three quarters of the year as apparel volume normalizes and new categories adopt. While the third quarter was below our expectations, we delivered more than 20% growth in apparel and general retail categories, which was partially offset by logistics, largely due to prior year customer inventory builds and a customer transition that reduced some RFID parcel volume in the third quarter.

正如 Deon 所提到的，隨著服裝銷售正常化和新類別的採用，今年前三個季度整個企業的智慧標籤銷售額成長了 15%。雖然第三季低於我們的預期，但我們在服裝和一般零售類別中實現了超過20% 的成長，這部分被物流所抵消，這主要是由於去年客戶庫存的增加和客戶轉型減少了一些RFID包裹數量。

That transition is now largely complete. Despite uneven growth this year, as Deon mentioned, the Kroger collaboration we announced yesterday is another proof point of our industry leadership and builds on our confidence in delivering on the significant opportunity ahead.

這種轉變現已基本完成。正如 Deon 所提到的，儘管今年的成長不平衡，但我們昨天宣布的克羅格合作是我們行業領先地位的另一個證明，並建立在我們抓住未來重大機會的信心之上。

Solutions Group delivered strong adjusted EBITDA margin of 17.9%, up 110 basis points sequentially and 150 basis points compared to prior year. Driven by benefits from higher volume and productivity, partially offset by higher employee-related costs and investments.

Solutions Group 的調整後 EBITDA 利潤率為 17.9%，較上季成長 110 個基點，與前一年相比成長 150 個基點。受到產量和生產力提高帶來的好處的推動，但部分被員工相關成本和投資的增加所抵消。

Now shifting to our outlook for 2024. We have raised our guidance for adjusted earnings per share to be between $9.35 and $9.50, with the midpoint reflecting nearly 20% growth versus prior year. As you'll recall, our outlook includes our four key drivers of earnings growth in 2024, which are on track.

現在轉向我們對 2024 年的展望。我們將調整後每股收益指引上調至 9.35 美元至 9.50 美元之間，中點反映較上年增長近 20%。您可能還記得，我們​​的展望包括 2024 年獲利成長的四個關鍵驅動因素，這些驅動因素都已步入正​​軌。

The normalization of label volumes early in the year, the normalization of apparel volume mid-year strong growth in Intelligent Labels as apparel rebounds and new programs roll out and ongoing productivity actions.

年初標籤產量正常化，年中服裝產量正常化，隨著服裝的反彈、新計劃的推出以及持續的生產力行動，智慧標籤的強勁增長。

We've outlined additional key contributing factors to our guidance on Slide 12 of our supplemental presentation materials. In particular, and focusing on the changes from July, we estimate 4.5% to 5% organic sales growth. now targeting the high end of our previous outlook.

我們在補充簡報資料的幻燈片 12 上概述了指導的其他關鍵影響因素。特別是，關注 7 月以來的變化，我們預計有機銷售額將增長 4.5% 至 5%。現在的目標是我們之前展望的高端。

For the year, we continue to expect high single-digit volume growth, partially offset by deflation related price reductions. We expect incremental savings from restructuring actions of more than $55 million, up $5 million from our previous outlook, some of which was delivered in Q3.

今年，我們繼續預期銷售量將出現高個位數成長，但部分將被通貨緊縮相關的價格下降所抵銷。我們預計重組行動帶來的增量節省將超過 5500 萬美元，比我們之前的預期高出 500 萬美元，其中一些是在第三季實現的。

And we now anticipate a headwind from currency translation of roughly $5 million in operating income for the year, slightly better than our previous outlook for both the third and fourth quarters. And we continue to target roughly 100% adjusted free cash flow conversion.

我們現在預計今年營業收入將因貨幣換算而受到約 500 萬美元的阻力，略好於我們先前對第三季和第四季的預期。我們繼續以大約 100% 調整後的自由現金流轉換為目標。

In summary, we delivered another strong quarter increased our outlook for earnings growth, we remain confident in our ability to continue to deliver exceptional value through our strategies for long-term profitable growth and disciplined capital allocation.

總而言之，我們實現了又一個強勁的季度，提高了我們的獲利成長前景，我們仍然相信我們有能力透過長期獲利成長和嚴格的資本配置策略繼續提供卓越的價值。

And now we'll open up the call for your questions

現在我們將開放電話詢問您的問題

(Operator Instructions)

（操作員說明）

Ghansham Panjabi from Baird.

來自 Baird 的 Ghansham Panjabi。

Hello everyone. Hope you're doing well. So I guess, first off, on the Materials segment and as it relates to the volume rebound in 2024, is that starting to plateau in your opinion? In other words, you had a rebound following the destocking impact last year, and now you have a weaker consumer as an offset, which is why you're still below sort of 2022 levels. And then an intelligent label specific to logistics, is the lower-than-forecast volume dynamic in that 2024 specific to just end market conditions or just tough comps? What is the issue there?

大家好。希望你一切都好。因此，我想，首先，在材料領域，由於它與 2024 年的銷售反彈有關，您認為該領域是否開始趨於穩定？換句話說，去年去庫存影響後出現了反彈，而現在消費者疲軟作為抵消，這就是為什麼你仍然低於 2022 年的水平。然後，針對物流的智慧標籤，2024 年低於預期的銷售動態是僅針對終端市場狀況還是僅針對艱難的競爭？那裡有什麼問題？

Yeah. Ghansham, so on the material side, I think when we look at the quarter overall, I think we see, as we would have expected, materials volumes, particularly in Europe, sequentially slowing a little bit from seasonality. I guess if you compare over a couple of year period, especially comparing to 2022, price is a pretty significant factor there. So from that perspective, we're in the midst of raising prices in 2022. Now we've seen some deflation over the last year and prices have come down.

是的。Ghansham，所以在材料方面，我認為當我們縱觀整個季度時，我認為我們看到，正如我們所預期的那樣，材料量，特別是在歐洲，與季節性因素相比，順序略有放緩。我想如果你比較幾年的時間，特別是與 2022 年相比，價格是一個非常重要的因素。因此從這個角度來看，我們將在 2022 年提高價格。現在我們看到去年出現了一些通貨緊縮，價格也有所下降。

So that's part of it when you look at the sales number overall. From a volume perspective, I don't think we've seen much change in the overall trends I would say or as Deon mentioned in the earlier comments, Materials Europe was a little bit lighter than we expected, and we do continue to see a little bit softer retail volumes in Europe overall. But otherwise, not much changed from a trend perspective on volumes and materials.

因此，當您查看總體銷售數據時，這就是其中的一部分。從成交量的角度來看，我認為我們沒有看到總體趨勢發生太大變化，或者正如Deon 在之前的評論中提到的那樣，歐洲材料展比我們預期的要輕一些，而且我們確實繼續看到歐洲整體零售量略有疲軟。但除此之外，從數量和材料的趨勢角度來看，沒有太大變化。

Yeah, Ghansham, just let me reiterate. I think the broader macro environment still remains uncertain, and we're seeing that even in feedback from our customers we talked about, particularly in Europe, our customers in Europe and their end customers are reflecting kind of the more muted sentiment we're seeing over there.

是的，Ghansham，讓我重申一下。我認為更廣泛的宏觀環境仍然存在不確定性，我們看到，即使在我們談到的客戶（尤其是歐洲客戶）的反饋中，我們在歐洲的客戶及其最終客戶也反映出我們所看到的更為溫和的情緒在那邊。

And that's confirmed by macro retail volume data that we see in Europe. To your IR question specifically, let me just maybe take a step back. I think we laid out what we believe is the significant growth opportunity that lies ahead of us the last time we met at their Investor Day.

我們在歐洲看到的宏觀零售量數據證實了這一點。具體到你的投資人關係問題，讓我退後一步。我認為，上次我們在投資者日見面時，我們已經闡述了我們認為擺在我們面前的重大成長機會。

And our conviction in delivering on that 15% plus growth target over the time. I think the Kroger announcement is just yet another inflection point, I think, that is going to really resonate in the industry and provide a catalyst for further growth. And think about our Apparel business having adopted multiple proof points.

我們堅信在一段時間內實現 15% 以上的成長目標。我認為克羅格的聲明只是另一個轉折點，這將在行業中真正引起共鳴，並為進一步成長提供催化劑。想想我們的服裝業務已經採用了多個證據點。

We now have another proof point visible in logistics. And we're now in the process of having a visible proof point in food as well. And I think that is going to be a key part of how we unlock the future. I will also say our focus in the near term is very much on driving adoption, making sure that we're not only creating the demand, but also executing that demand.

現在我們在物流領域有了另一個可見的證據。我們現在也在食品中尋找可見的證據。我認為這將成為我們開啟未來的關鍵部分。我還要說，我們近期的重點主要是推動採用，確保我們不僅創造需求，而且執行該需求。

And some of these intra-quarterly movements are less focused on as we move forward. I will say in logistics specifically, the biggest variance that we saw was really down to prior year inventory customer builds year-on-year. And then also, this customer transition that impacted some RFID volume overall. And this is I think is which has now largely been completed, as Greg indicated.

隨著我們的前進，其中一些季度內的變動不再受到關注。我要特別指出的是，在物流方面，我們看到的最大差異實際上是由於去年客戶的庫存比去年同期增加所致。此外，這種客戶轉變也影響了 RFID 的整體銷售。正如格雷格指出的那樣，我認為現在已經基本完成。

And that is, I think, a first year annualization challenge, less an ongoing issue moving forward.

我認為，這是第一年年化挑戰，而不是一個持續存在的問題。

John McNulty from BMO Capital.

BMO Capital 的約翰·麥克納爾蒂。

Yeah, good morning. Thanks for taking my question. So I guess on the on the new Kroger opportunity, can you help us to think about the scale of that? I know fresh bakery is kind of the first launch and then there's more to come.

是的，早安。感謝您提出我的問題。所以我想關於克羅格的新機會，你能幫助我們思考它的規模嗎？我知道新鮮麵包店只是第一次推出，然後還會有更多。

But I guess, can you help us to think about what that might mean in terms of either tag volumes or growth for you, how that phases in, how quickly that may phase? And then, I guess, also tied to that, I know there's a lot of discussion right now in the QSR markets around food safety. I guess, can you speak to the pilot programs that you're seeing, and if you see the potential for some meaningful launches in QSR as we go into 2025?

但我想，您能否幫助我們思考這對您的標籤量或成長可能意味著什麼，它如何階段性，階段性有多快？然後，我想，也與此相關，我知道現在快餐市場上有很多關於食品安全的討論。我想，您能談談您所看到的試點計畫嗎？

John, thanks for the question. Let me spend a bit of time on the Kroger piece first, and I'll switch to QSR. And I think, as I said, our conviction in our long-term growth target of delivering on that 15% plus is really anchored on making sure that we drive adoption. So as we said, in apparel, driving that and continue to drive on logistics.

約翰，謝謝你的提問。首先讓我花一點時間討論 Kroger 部分，然後我將轉向 QSR。我認為，正如我所說，我們對實現 15% 以上的長期成長目標的信念確實取決於確保我們推動採用。正如我們所說，在服裝領域，推動這一趨勢並繼續推動物流。

And I think for the first time, the Kroger announcement puts an exclamation point under the fact that the technology has ubiquity and has value in driving demonstrable return on investments for food customers, particularly at the grocery level as well. I also just would characterize that, that food segment, as you recall, is the largest of all the segments we've been talking about. It is of an order of magnitude higher than apparel, which is only 40% penetrated roughly in the 200 million units billion unit site.

我認為，克羅格的聲明第一次給這樣一個事實添加了一個感嘆號：該技術無處不在，並且在為食品客戶帶來明顯的投資回報方面具有價值，特別是在雜貨店層面。我還想說，正如您所記得的那樣，食品領域是我們一直在談論的所有領域中最大的領域。它比服裝高一個數量級，在2億單位的網站中，服裝的滲透率大約只有40%。

So, it presents a significant upside for the industry and for us as the market leaders. The work that we're doing with Kroger will start in the bakery channel and then roll out across the estate for over time. And our expectation, John, is that in time, ultimately will expand beyond bakery into areas such as protein and fresh produce.

因此，它為行業和我們作為市場領導者帶來了顯著的優勢。我們與克羅格所做的工作將從麵包店管道開始，然後隨著時間的推移在整個莊園推廣。約翰，我們的期望是，隨著時間的推移，最終將擴展到烘焙以外的領域，例如蛋白質和新鮮農產品。

I think equally, this is going to take time and the rollout will be adoption. We've seen this in apparel. We've seen this in logistics, and I don't doubt that we're going to also see this in food. But I think there's a couple of things that stand out for me on the Kroger piece. One is the value of the partnership that we've had with them over a long period, which actually was founded on the relationship that we have with our Vestcom business in Kroger over many years as well.

我同樣認為，這將需要時間，並且推廣將被採用。我們已經在服裝中看到了這一點。我們已經在物流中看到了這一點，我毫不懷疑我們也會在食品中看到這一點。但我認為克羅格的文章中有幾件事對我來說很突出。一是我們與他們長期合作的價值，這實際上是建立在我們與克羅格的 Vestcom 業務多年來的關係基礎上的。

And secondly, the fact that we've been able to bring to them an approach that both drives at an innovation level, but also at an execution level. We don't comment, as you know, on the size of programs, the specific customer levels, but this rollout will help us deliver on that 15% plus growth target as we discussed in our Investor Day, John.

其次，我們已經能夠為他們提供一種既能推動創新水準又能推動執行水準的方法。如您所知，我們不會對項目規模、特定客戶級別發表評論，但這次推出將幫助我們實現我們在投資者日討論的 15% 以上的增長目標，約翰。

On the QSR specifically, I think we already have a couple of QSRs in rollout most notably one, where their focus has been on food safety, which is what drove it originally. And in that instance, we're actually leveraging the digital identification and physical items to go back to source, so that you have transparency of where something was produced and its freshness through the cycle. We have a number of other QSRs in similar discussions.

具體就 QSR 而言，我認為我們已經推出了幾個 QSR，其中最引人注目的是其中一個，其重點是食品安全，這也是其最初的推動力。在這種情況下，我們實際上正在利用數位識別和實體物品來追溯源頭，以便您可以透明地了解某些產品的生產地點及其整個週期的新鮮度。我們還有許多其他 QSR 正在進行類似的討論。

And I do think the more recent FISMA regulations that have come out in the United States will act as an accelerant for food safety drive. And by definition, I think they're going to lean into RFID as an enabling technology, which then will continue to be to our benefit as the market leader.

我確實認為美國最近出台的 FISMA 法規將成為食品安全運動的促進劑。根據定義，我認為他們將傾向於將 RFID 作為一種支援技術，這將繼續為我們作為市場領導者帶來好處。

George Staphos from Bank of America.

美國銀行的喬治‧斯塔福斯。

Hi everyone. Good morning. Thanks for taking the question. Yeah, So I wanted to continue on the Intelligent Label question progress. So I know you can't talk about size of program and all that relative to a customer. Can you talk us though about how many stores this initially is launched that within Kroger over whatever number of months or quarters you kind of speak to?

大家好。早安.感謝您提出問題。是的，所以我想繼續討論智慧標籤問題的進展。所以我知道你不能談論程序的規模以及與客戶相關的所有內容。您能否告訴我們，在您交談的幾個月或幾個季度內，克羅格內部最初開設了多少家商店？

And tell us a little bit more underneath the hood, what's going on in terms of how Kroger needs to implement this front end, back end, and how you're involved. So any color there would be helpful. And then secondly, what's going on with Vestcom in terms of the slowdown there? And what's that mean in terms of your earnings, recognizing that you are still you raised guidance for the year, and I'll come back in the next round.

請告訴我們更多幕後情況，克​​羅格需要如何實施前端、後端以及您如何參與。所以任何顏色都會有幫助。其次，Vestcom 的經濟放緩是怎麼回事？這對你的收入意味著什麼，並認識到你仍然提高了今年的指導，我將在下一輪中回來。

Sure, George. On the Kroger specific role, so the focus is initially on bakery, and we're going to ramp over time as we go through the next number of quarters to ultimately be close to kind of full estate, which I think is in the order of 2,800 stores.

當然，喬治。關於克羅格的具體角色，所以最初的重點是麵包店，隨著時間的推移，我們將在接下來的幾個季度中逐步擴大規模，最終接近完整的地產，我認為這是按順序進行的2,800 家商店。

And the way that we're doing that, George, is because bakery in some ways is largely contained within one department, within one supply chain, it's a much easier piece to execute. Most of the execution will actually happen in the bakery in the store, not in the specific supply chain itself, although there will be elements as we progress that will further go back down the supply chain.

喬治，我們這樣做的方式是因為麵包店在某種程度上主要包含在一個部門、一個供應鏈內，這是更容易執行的部分。大部分執行實際上將在商店的麵包店中進行，而不是在特定的供應鏈本身中進行，儘管隨著我們的進展，會有一些元素會進一步回到供應鏈。

That makes it more manageable, and the approach that we're going to take work in collaboration with Kroger is to do this on a phase rollout as we go across the next 6-or-so quarters as well. In terms of Vestcom, the issue that we saw in the third quarter was really related to a couple of points. So one was the general drugstore channel softness that I'm sure all of you are aware of, had an impact on some of our volume in the third quarter.

這使得它更易於管理，我們將與克羅格合作採取的方法是在接下來的 6 個左右季度中分階段推出。就Vestcom而言，我們在第三季看到的問題確實與以下幾點有關。因此，我相信大家都知道，藥局通路的整體疲軟對我們第三季的部分銷售量產生了影響。

One of our customers is just now starting to merge from bankruptcy, which is a positive sign. We'll return to growth as we move forward. And actually, we'll see overall Vestcom growth in the fourth quarter, actually, again. The second element, which is a little bit more a little different is that because of the hurricane, we saw, particularly affecting southeastern states, part of the emergency declaration that happens is they have a price freeze on all food items.

我們的一位客戶剛開始從破產中合併，這是一個積極的跡象。隨著我們的前進，我們將恢復成長。事實上，我們將再次看到 Vestcom 在第四季度的整體成長。第二個因素有點不同，我們看到，由於颶風，特別是影響東南部各州，緊急聲明的一部分是他們對所有食品進行價格凍結。

And so that meant there were less price ticket changes during that period. Again, that will be ameliorated as we move into the fourth quarter.

因此，這意味著在此期間票價變化較少。同樣，隨著我們進入第四季度，這種情況將會得到改善。

Yes, Vestcom remains a very significant high-value segment business for us with outsized above segment margins and good growth prospects even in the drug store channel, where we're engaged with a very large white space opportunity and hoping to have some progress as we go through '25 in that regard, George.

是的，Vestcom 對我們來說仍然是一個非常重要的高價值細分市場業務，即使在藥局通路中，我們也擁有巨大的細分市場利潤率和良好的成長前景，我們在藥局通路中擁有非常大的空白機會，並希望在我們的發展過程中取得一些進展。

Michael Roxland from Truist Securities.

來自 Truist 證券公司的 Michael Roxland。

Thanks Greg, two questions for me, just in 3Q, can you comment how much intelligence we're able to actually grow? You mentioned strong growth in IL apparel and general retail. You mentioned the weakness in logistics and the, so just wondering how much it actually grew in the quarter? And then second question is just following up on your comments, it sounds like the last question that it's temporary in terms of this. But could it be something more permanent?

謝謝格雷格，我有兩個問題，就在第三季度，你能評論一下我們實際上能夠成長多少智力嗎？您提到伊利諾伊州服裝和一般零售業的強勁成長。您提到了物流方面的弱點，所以想知道本季實際成長了多少？然後第二個問題只是跟進您的評論，聽起來就像最後一個問題，就這而言，它是暫時的。但它能是更永久的東西嗎？

Do you see a lot of drug stores, Walgreens and others announced store closures. So do you think there's been a shift in drug stores in terms of fewer drugstores that could have some type of more permanent impact on Vestcom.

你是不是看到很多藥局、沃爾格林等都宣布關店了。那麼，您是否認為藥局數量的減少可能會對 Vestcom 產生某種更持久的影響？

So, Mike, in the third quarter, I think as you heard Greg say, we moved our given the softness in logistics we called out, we moved our year-to-date performance from the half year, we were mid- to high teens to mid-teens for the year-to-date after nine months.

所以，麥克，在第三季度，我想正如你聽到格雷格所說的那樣，鑑於我們所呼籲的物流疲軟，我們改變了我們的業績，我們將上半年迄今為止的表現調整了，我們處於中高水準九個月後，今年迄今，這一數字已降至十幾歲左右。

As it relates to the drug stores, there's certainly a temporary piece of this volume recovery as it relates to, for example, hurricane pricing and some of the recovery of these some of our drugstore channel partners as they come through their own challenges. But I don't necessarily see this as a long-term permanent shift. In fact, we actually see significant white space opportunity.

由於它與藥局有關，因此銷售的恢復肯定是暫時的，因為它與例如颶風定價以及我們的一些藥局通路合作夥伴在經歷自己的挑戰時的一些恢復有關。但我並不一定認為這是一個長期的永久性轉變。事實上，我們確實看到了巨大的空白機會。

We don't deal with all the drug store players. And we have in discussion with a very large one talking about how we can deliver some of the solutions we have. If you think about what we do in our Vestcom business is really to provide two elements. One is a productivity solution for labor efficiency in store.

我們不與所有藥局玩家打交道。我們與一個非常大的公司進行了討論，討論我們如何提供我們擁有的一些解決方案。如果你想想我們在 Vestcom 業務中所做的事情實際上是提供兩個要素。一是提高商店勞動力效率的生產力解決方案。

And labor is still the biggest denominated quotient concern that retailers generally have. And the second is a media solution that brings consumer connection at the point of purchase of the shelf. Much of what Vestcom does, which is largely data composition engine that takes in multiple feeds of data and then send that out in terms of a label format is patented ourselves.

勞動力仍然是零售商普遍關注的最大商數。第二個是媒體解決方案，可以在貨架上的購買點為消費者帶來連結。Vestcom 所做的大部分工作（主要是資料合成引擎），接收多個資料來源，然後以標籤格式發送出去，這些都是我們自己申請的專利。

And so we have a uniquely advantaged solution in that regard, and I do think as retail continues to have some degree of challenge when it comes to labor and attracting consumers in the store, our solutions will increasingly resonate in that regard.

因此，我們在這方面擁有獨特優勢的解決方案，而且我確實認為，隨著零售業在勞動力和吸引商店消費者方面繼續面臨一定程度的挑戰，我們的解決方案將在這方面越來越引起共鳴。

Jack Zekauskas from JPMorgan.

摩根大通的傑克·澤考斯卡斯。

Thanks very much.

非常感謝。

So in the Solutions Group, base solutions grew 15%. So that's 6% growth for the whole segment. And if Intelligent Labels is now growing 15%, and it used to grow 17% or 18%. That means that intelligent labels grew 10%. So best comm and embellishments then must have shrunk 10%. Is that correct? And then secondly, Kroger's baked goods are about $5 billion. And I don't know. Their average baked good is somewhere between $2.50 and $5. So that's 1 billion tags or maybe 2 billion tags at $0.03. So that's 30 million to 60 million a year. Is this the order of magnitude we're talking about?

因此，在解決方案集團中，基礎解決方案成長了 15%。整個細分市場的成長率為 6%。如果智慧標籤現在成長 15%，那麼它過去成長 17% 或 18%。這意味著智慧標籤成長了 10%。那麼最好的通訊和裝飾肯定縮小了 10%。這是正確的嗎？其次，克羅格的烘焙食品價值約為 50 億美元。我不知道。他們的平均烘焙食品價格在 2.50 美元到 5 美元之間。也就是說 10 億個標籤或 20 億個標籤的價格為 0.03 美元。所以每年有 3000 萬到 6000 萬。這就是我們所說的數量級嗎？

Yeah. On your first question, Jeff. So when you look at overall and high-value segments as we talked about, were up low single digits ex currency in the quarter. So Deon already talked about Vestcom. Vestcom was down given the drugstore channel impacts that we talked about. And be was also a little soft partially impacted by that Bangladesh unrest as well as in performance apparel, a little bit softer this quarter as well. Intelligent Labels growth, if you recall, is in both segments.

是的。關於你的第一個問題，傑夫。因此，當您查看我們所討論的整體和高價值細分市場時，本季的匯率換算值成長了低個位數。Deon 已經談到了 Vestcom。鑑於我們談到的藥局通路影響，Vestcom 股價下跌。受到孟加拉騷亂以及功能性服裝的影響，本季也有些疲軟。如果您還記得的話，智慧標籤的成長是在這兩個領域。

So we continue to drive growth in the Solutions segment as we also continue to leverage our strong converter base within our Materials segment to grow really in the general retail categories that we've talked about growing very well and that shows up in the materials business. So it's split between both our growth in IL split between both solutions and materials. So overall, that's largely the framework for how we get to where we were on overall high-value set.

因此，我們繼續推動解決方案領域的成長，同時我們也繼續利用我們材料領域內強大的轉換器基礎，在一般零售類別中真正實現成長，我們已經談到成長得非常好，並在材料業務中得到體現。因此，它分為我們在 IL 方面的成長，分為解決方案和材料。總的來說，這在很大程度上是我們如何達到整體高價值集的框架。

And Jeff on Kroger, you're right that bakery is the smallest part of that kind of what I would call periphery, perishable items. But it's one that has significant impact for the retailer in this regard. A lot of what gets done in terms of understanding what items are fresh and highly perishable in that regard are manually done. And so you have both an impact on kind of labor effectiveness as well as the associate experience in the store. And this is why we know that the technology can impact both of those, both improve the social experience, which is critical for retailers.

克羅格的傑夫，你說得對，麵包店是我所說的外圍、易腐物品中最小的一部分。但在這方面，它對零售商產生了重大影響。在了解哪些物品是新鮮的以及哪些物品極易腐爛方面所做的許多工作都是手動完成的。因此，您不僅會影響員工的工作效率，還會影響店內員工的體驗。這就是為什麼我們知道該技術可以影響這兩方面，改善社交體驗，這對零售商來說至關重要。

And the second piece is also making sure that you're able to drive efficiency and by definition, reduce waste as well. We're not going to comment on the size of the exact program as we roll out over time, Jeff. But I will say that this is going to be, for us, a very important tipping point for the industry. It's the first visible marker that food and grocery will go. And when people realize the scale of the ubiquity of that benefit, like in apparel, as we're now starting to see in logistics, I think it will act as a catalyst for further acceleration and adoption.

第二部分還確保您能夠提高效率，並根據定義減少浪費。隨著時間的推移，我們不會評論具體計劃的規模，傑夫。但我想說，對我們來說，這將是業界的一個非常重要的轉捩點。這是食品和雜貨將去的第一個可見標記。當人們意識到這種好處的普遍性時，就像在服裝領域一樣，正如我們現在開始在物流領域看到的那樣，我認為它將成為進一步加速和採用的催化劑。

Josh Spector from UBS.

瑞銀 (UBS) 的喬許‧斯佩克特 (Josh Spector)。

Ahead.

前方。

Yeah, good morning. I, I guess maybe more generally, within RFID, specifically the food opportunity. Can you just talk about the margins or kind of the drop-through that you expect on that market, assuming you're not going to comment on Kroger specifically. I guess does that come in line with what your average RFID book of business is today? Is it below until you get scale? Or is there some reason why it's higher? Any framing there would be helpful.

是的，早安。我想，也許更普遍的是，在 RFID 領域，特別是食品機會。假設您不會具體評論克羅格，您能談談您對該市場的預期利潤率或下降類型嗎？我想這與您現在的 RFID 業務平均狀況相符嗎？直到你達到規模之前它是否低於？或者有什麼原因導致它更高？那裡的任何框架都會有幫助。

Yeah, Sure, Josh. I'll start to saying that for our -- as we said for a long time, our Intelligent Labels platform is above segment margin overall. And whether the product is ultimately in apparel or in logistics or now in these different food categories, while the ASP may vary depending on the complexity of the product or the breadth of the solution we typically see relatively consistent margins across all of these and they're above average segment margin.

是的，當然，喬許。我首先要說的是，正如我們長期以來所說，我們的智慧標籤平台總體上高於細分市場利潤率。無論產品最終是在服裝、物流或現在在這些不同的食品類別中，雖然平均售價可能會根據產品的複雜性或解決方案的廣度而變化，但我們通常會看到所有這些領域的利潤率相對一致，而且它們」高於平均分部利潤率。

Matthew Roberts from Raymond James.

雷蒙德詹姆斯的馬修羅伯茨。

Hey, good morning everybody and thank you for the time. Maybe if I can get you a little bit more.

嘿，大家早上好，謝謝您的寶貴時間。也許我能給你多一點。

Can you hear me? Yes. Okay. Maybe if I could touch a little bit more on the food opportunity and see when Kroger is trying to look or learn from the bakery. I know you said it's 6-or-so quarters for the full rollout. But once it is in place, are there any milestones or time lines put in place before potentially rolling it out to other departments? And also, while I appreciate it is still early and planning with more to come in a couple of months for 2025.

你聽得到我嗎？是的。好的。也許我可以多接觸食品機會，看看克羅格何時試圖向麵包店學習或學習。我知道您說過全面推出需要 6 個左右的季度。但一旦到位，在可能將其推廣到其他部門之前是否有任何里程碑或時間表？而且，雖然我很高興現在還為時過早，但我們計劃在 2025 年幾個月內推出更多內容。

And in September, you laid out your long-term financial framework. But should we expect 2025 to be within that framework of the 5% top line and 10% EPS growth, or are there any unique items or timing from 2024 that could impact that bridge.? Thanks for taking the questions.

九月，您制定了長期財務架構。但我們是否應該預期 2025 年將達到 5% 的營收成長和 10% 的每股盈餘成長的框架內，或者從 2024 年開始是否有任何獨特的項目或時間安排可能會影響這一橋樑？感謝您提出問題。

Yeah, In terms of the broader food opportunity, Matthew, just me to reiterate again, it's the largest category that we see for IL adoption overall. The order of magnitude comparison is 200 billion units or same food in the addressable market relative to 65 or 70 for logistics relative to 45-or-so for apparel. So there's an enormous runway, multi-decade opportunity ahead of us in that regard. As it relates to the timing of the rollout, we're not necessarily sharing all the details on this. We're focused on bakery first and over the estate rollout over a period of time.

是的，就更廣泛的食品機會而言，馬修，我再次重申，這是我們總體上看到的 IL 採用的最大類別。比較的數量級是目標市場中的 2000 億單位或相同食品，相對於物流而言為 65 或 70 單位，相對於服裝而言為 45 左右。因此，在這方面，我們面臨著巨大的跑道、數十年的機會。由於它與推出時間有關，因此我們不一定會分享這方面的所有細節。我們首先關注麵包店，然後在一段時間內關注莊園的推出。

Based on those results, our anticipation is that we will then move to categories like proteins and leafy greens as we move forward. And again, that will take time. And I will stress this again, there will be an even rollout as we go through this period, both from a timing and an adoption phase across -- we've seen this across apparel.

根據這些結果，我們的預期是，隨著我們的前進，我們將轉向蛋白質和綠葉蔬菜等類別。再說一遍，這需要時間。我要再次強調這一點，當我們經歷這個時期時，無論是從時間安排還是採用階段，都會出現均勻的推出——我們已經在服裝領域看到了這一點。

We're now seeing this slightly in logistics. And I don't know if we're going to see this in food as well. Our focus, I'll reiterate this, our focus is ensuring we're driving adoption, creating the demand and then executing and fulfilling that demand.

我們現在在物流方面看到了這一點。我不知道我們是否也會在食物中看到這種情況。我重申一下，我們的重點是確保推動採用、創造需求，然後執行並滿足該需求。

Yeah, On the 2025 question, Matt, as you said at Investor Day, we laid out our financial framework for the future, where we talked about growing 10% adjusted earnings per share growth annually. I would say right now, our early view of 2025 is that we'd be following that algorithm that we laid out a month or so ago. When we look at the drivers of that, obviously, Intelligent Labels growth, we've talked about being a driver of that. In apparel, we'll have a more normalized first half of the year next year.

是的，關於 2025 年的問題，馬特，正如您在投資者日所說，我們制定了未來的財務框架，其中我們談到每年調整後每股收益增長 10%。我現在想說的是，我們對 2025 年的早期看法是，我們將遵循大約一個月前製定的演算法。當我們審視智慧標籤成長的驅動因素時，我們已經談到了成為這一成長的驅動因素。在服裝方面，明年上半年我們將更加正常化。

And our margins in the second half of this year in solutions are better in our first half, so that should give us a little bit of first half benefit as well. and then continue to have a more normalized growth in materials. But as Deon laid out earlier, a bit uncertain retail environment there. So we remain cautious a little bit on that front. But those are the main drivers that help get us towards delivering that target we laid out back in September

今年下半年我們在解決方案方面的利潤率比上半年更好，因此這也應該會為我們帶來一些上半年的好處。然後繼續實現材料更加正常化的成長。但正如 Deon 早些時候指出的那樣，那裡的零售環境有點不確定。因此，我們在這方面保持謹慎。但這些都是幫助我們實現 9 月所訂定的目標的主要驅動力

Anthony Pettinari from Citi.

花旗銀行的安東尼‧佩蒂納裡。

Hi, good morning, good morning. Do you think your label volumes tracked kind of in line with the industry in 3Q? Or given it may be difficult to track market share quarter-to-quarter. Maybe you could just speak year-to-date. And then, I guess, maybe same question for intelligent labels. Do you think you're kind of growing in line or stronger or a little bit weaker than market? And then just to reiterate, like the weaker 3Q IL activity, is that just completely kind of like timing of projects and the comp? Or is there anything from like an industry perspective that you'd point to that impacted volumes in the quarter?

嗨，早上好，早安。您認為您的標籤銷售在第三季與業界保持一致嗎？或者考慮到逐季度追蹤市場份額可能很困難。也許你可以只講今年迄今為止的情況。然後，我想，對於智慧標籤來說，也許會有同樣的問題。您認為您的成長與市場一致還是比市場更強還是稍弱？然後重申一下，就像第三季 IL 活動較弱一樣，這是否完全像專案和補償的時間安排？或者從產業角度來看，您認為有哪些因素影響了本季的銷售量？

Yes. So I think the high level, yes, our label volumes are largely in line with industry, and we continue to hold, if not likely maintain and expand share in our label business generally across the world. As it relates to our IL business, there is some volatility because of this logistics significant rollout last year and some softness this year.

是的。因此，我認為從高水準來看，是的，我們的標籤產量在很大程度上與行業一致，我們將繼續持有（如果不太可能維持和擴大）我們在全球標籤業務中的份額。由於它與我們的 IL 業務相關，由於去年物流的重大部署和今年的疲軟，因此存在一些波動。

But generally, we're performing given that we're creating the market we're performing in line with the market overall, and we expect over the long term to continue to be the majority share provider and likely expand our share as we move through that, given some of the competitive advantage we have as well.

但總的來說，我們的表現是因為我們正在創造與整體市場一致的市場，我們預計從長遠來看，我們將繼續成為多數股權提供者，隨著我們的發展，我們的份額可能會擴大考慮到我們也擁有一些競爭優勢。

As it relates to the third quarter, your question was, was it related to just those specific comps and the transition piece. Yes, it was. There was nothing else that really had a fundamental impact on what we saw from a third quarter IL performance

由於它與第三季有關，您的問題是，它是否僅與那些特定的比較和過渡部分有關。是的，確實如此。沒有其他因素對我們從第三季 IL 業績中看到的情況產生真正的根本影響

Michael Leithead from Barclays.

巴克萊銀行的邁克爾·萊特黑德。

Great. Thank you. Good morning guys. Can you speak to the pricing in both of your businesses sequentially in the third quarter? Are you seeing incremental price give back or prices generally flat at current levels? And relatedly, it sounds like European materials input costs up, price and demand perhaps a bit softer. Is there any change in terms of how you guys need to approach the European market going into '25? Or is it just sort of transitory weakness given where we are in the cycle at this point?

偉大的。謝謝。早安，夥計們。可以談談第三季你們兩家公司的定價嗎？您是否看到增量價格回饋或價格整體持平於當前水準？與此相關的是，聽起來歐洲材料投入成本上漲，價格和需求可能有點疲軟。進入 25 年，你們進入歐洲市場的方式有什麼改變嗎？或者考慮到我們目前所處的周期，這只是暫時的疲軟？

Thanks, Mike, for the question. So overall, when we look from Q2 to Q3, we saw low single-digit inflation, really, I guess, very low single-digit inflation sequentially after a little bit of sequential inflation in the second quarter as well. And as you said, that's really largely in paper and Europe is where we're seeing that.

謝謝邁克提出這個問題。因此，總體而言，當我們從第二季度到第三季度時，我們看到了較低的個位數通膨，實際上，我猜，在第二季度出現了一點連續通膨之後，連續出現了非常低的個位數通膨。正如你所說，這實際上主要是在紙面上，而我們在歐洲看到了這一點。

And we talked about last quarter that we were announcing and implementing some pricing actions. So we also had some low single-digit price benefit sequentially from Q2 to Q3, and you're managing that. So the net impact was pretty negligible in the quarter overall.

我們談到上個季度我們宣布並實施了一些定價行動。因此，從第二季度到第三季度，我們也連續獲得了一些較低的個位數價格優勢，而您正在管理這一點。因此，整個季度的淨影響可以忽略不計。

So I think when we look forward, we continue to see a relatively stable environment overall from a materials perspective. So we don't see that shifting too much in the very near term, difficult to call more on an ongoing basis, though.

因此，我認為，當我們展望未來時，從材料角度來看，我們繼續看到整體上相對穩定的環境。因此，我們認為短期內不會發生太大變化，但很難持續呼籲更多。

Mr. Eble, there are no further questions at this time. I will now turn it back over to you for closing remarks.

Eble 先生，目前沒有其他問題。我現在將其轉回給您作結束語。

Thanks, Jeremy. As you all know, our overarching objective is to deliver GDP-plus growth and top quartile returns, which is a recipe for superior EVA and value creation over the long term. We are confident that the consistent execution of our strategies will enable us to achieve our long-term objectives. This now concludes our Q3 earnings call. Thank you all for joining today.

謝謝，傑里米。眾所周知，我們的首要目標是實現GDP+成長和最高四分之一的回報，這是長期卓越EVA和價值創造的秘訣。我們相信，持續執行我們的策略將使我們能夠實現我們的長期目標。我們的第三季財報電話會議到此結束。感謝大家今天的加入。

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。