Berry Global Group Inc (BERY) 2024 Q3 法說會逐字稿

Good day, everyone, and thank you for standing by. Welcome to the Q3 2024 Berry Global Group Inc. Earnings Conference Call. (Operator instructions) Please be advised that today's conference is being recorded.

大家好，感謝你們的支持。歡迎參加 Berry Global Group Inc. 2024 年第三季財報電話會議。（操作員說明）請注意，今天的會議正在錄製中。

I will hand the call over to Dustin Stilwell with Berry Group. Please go ahead.

我會將電話轉交給貝瑞集團的達斯汀史迪威。請繼續。

Thank you, operator, and thank you, everyone, for joining Berry's third fiscal quarter 2024 earnings call. Joining me this morning, I have Berry's Chief Executive Officer, Kevin Kwilinski; and Berry's Chief Financial Officer, Mark Miles.

謝謝業者，也謝謝大家參加 Berry 的 2024 年第三財季財報電話會議。今天早上與我一起的有貝瑞首席執行官凱文·奎林斯基 (Kevin Kwilinski)；以及貝瑞的財務長馬克·邁爾斯。

Following our comments today, we will have a question and answer session. In order to allow everyone, the opportunity to participate, we do ask that you limit yourself to one question with a brief follow-up, and then fall back into the queue for any additional questions.

在我們今天的評論之後，我們將舉行問答環節。為了讓每個人都有參與的機會，我們確實要求您將自己限制在一個問題上並進行簡短的跟進，然後再回到隊列中回答任何其他問題。

A few things to note before handing the call over. On our website at berryglobal.com, you can find today's press release and earnings call presentation under our Investor Relations section. As referenced on slide 2 and 3, during this call, we will be discussing certain non-GAAP financial measures.

轉交電話前需要注意的一些事項。在我們的網站 berryglobal.com 上，您可以在投資者關係部分找到今天的新聞稿和財報電話會議演示。如同投影片 2 和 3 中所提到的，在本次電話會議中，我們將討論某些非 GAAP 財務指標。

The measures are reconciled to the most directly comparable GAAP financial measures in our earnings press release and presentation, which were made public earlier this morning. Additionally, we will make forward-looking statements that are subject to risks and uncertainties.

這些指標與我們今天早上早些時候公佈的收益新聞稿和簡報中最直接可比較的公認會計準則財務指標進行了調整。此外，我們將做出具有風險和不確定性的前瞻性陳述。

Actual results or outcomes may differ materially from those that may be expressed or implied in our forward-looking statements. Some factors that could cause the results or outcomes to differ are in the company's latest 10-K, other SEC filings and our news release.

實際結果或成果可能與我們的前瞻性陳述中明示或暗示的結果有重大差異。本公司最新的 10-K、其他 SEC 文件和我們的新聞稿中包含一些可能導致結果或成果不同的因素。

I will now cover to Berry's CEO, Kevin Kwilinski.

現在我將向 Berry 執行長 Kevin Kwilinski 介紹情況。

Thank you, Dustin, and thank you to everyone for joining us today to discuss various third quarter results for fiscal 2024 our team delivered 2% organic volume growth and strong financial performance during the quarter. Our results were consistent with our expectations, and we made substantial progress toward our long-term strategic objectives and delivering on our multiyear cost improvement initiatives.

謝謝達斯汀，也感謝大家今天加入我們討論 2024 財年第三季度的各項業績，我們的團隊在本季度實現了 2% 的有機銷量增長和強勁的財務業績。我們的結果與我們的預期一致，我們在實現長期策略目標和實施多年成本改進計劃方面取得了實質進展。

We delivered third quarter EPS and operating EBITDA growth of 16% and 6%, respectively over the prior year quarter, with volume growth and strong operational performance driving our results as our team remains focused on managing the items that are within our control.

我們第三季的每股盈餘和經營 EBITDA 比去年同期分別成長 16% 和 6%，銷售成長和強勁的營運表現推動了我們的業績，因為我們的團隊仍然專注於管理我們控制範圍內的專案。

Our proactive measures around the positioning our portfolio to higher growth and reducing our cost structure has allowed us to outperform in a weaker than normal macro demand environment and the fact that our customers are communicating their focus on driving growth over price, including increased promotional activity.

我們圍繞著將投資組合定位為更高成長和降低成本結構的積極措施，使我們能夠在比正常宏觀需求疲軟的環境中表現出色，而且我們的客戶正在傳達他們的重點是推動成長而不是價格，包括增加促銷活動。

As a result, we are confirming our fiscal 2024 guidance within our previously announced ranges for adjusted EPS and free cash and expect our fourth fiscal quarter to deliver low single digit volume growth aligned with our long term. As part of our ongoing commitment to maintaining a strong and balance sheet, we remain committed to achieving a year end leverage of 3.5 times or lower by the end of '24.

因此，我們確認我們的 2024 財年指引在先前宣布的調整後每股收益和自由現金範圍內，並預計我們的第四財季將實現與我們的長期目標一致的低個位數銷售增長。作為我們維持強勁資產負債表的持續承諾的一部分，我們仍然致力於在 24 年底之前實現 3.5 倍或更低的年終槓桿率。

Included in our September quarter expected cash flow generation of $1 billion. As anticipated portfolio optimization proceeds, we expect to deliver over $3 billion of cash over the next four quarters. Specifically, we believe cash proceeds could exceed $2 billion from strategic divestitures alone within the next year.

包括在我們 9 月季度預計產生的 10 億美元現金流中。隨著預期投資組合優化的推進，我們預計將在未來四個季度交付超過 30 億美元的現金。具體來說，我們認為明年僅戰略剝離帶來的現金收益可能超過 20 億美元。

This includes approximately from the already announced proposed spinoff and merger and another $1 billion from future portfolio optimization opportunities within fiscal 2025. With respect to portfolio optimization, we continue to make progress. Not only will these divestitures accelerate deleveraging, they will push us toward our goal of increasing our consumer products focus from over 70% to over 80% of volume.

這大約包括來自已宣布的擬議分拆和合併的資金，以及來自 2025 財年未來投資組合優化機會的另外 10 億美元資金。在投資組合優化方面，我們不斷取得進展。這些資產剝離不僅會加速去槓桿化，還將推動我們實現將消費品業務比重從 70% 以上增加到 80% 以上的目標。

The Berry HH&S and Glatfelter transaction is still expected to close before the end of the calendar year and is subject to approval by Glatfelter shareholders and completion of customary closing conditions. Our teams continue to work on integration activities, and we remain optimistic about substantial upside potential.

Berry HH&S 和 Glatfelter 的交易預計仍將在今年年底前完成，並須獲得 Glatfelter 股東的批准並滿足慣例成交條件。我們的團隊持續致力於整合活動，我們對巨大的上行潛力保持樂觀。

In our base synergy case, we made great progress during the quarter on furthering our continuous improvement focused culture. We stood up our first lean transformation site at our health care focus facility in Franklin, Indiana. I had the opportunity to visit Franklin again a few days ago, and I'm very excited and encouraged by the level of engagement by our associates and leadership there.

在我們的基礎協同案例中，我們在本季度在進一步推進以持續改進為重點的文化方面取得了巨大進展。我們在印第安納州富蘭克林的醫療保健重點設施中建立了第一個精益轉型站點。幾天前，我有機會再次拜訪富蘭克林，我們的同事和領導層的參與程度讓我感到非常興奮和鼓舞。

The focus in this facility has shifted from how do we win the month to how we win the hours. And this shift brings in a whole new level level of urgency for results. We have begun hosting business from other business units to see what is being built in Franklin so that they can begin replicating our business operating model in other areas of the company.

該設施的重點已從如何贏得月份轉變為如何贏得時間。這種轉變將結果的迫切性提升到了一個全新的水平。我們已經開始託管其他業務部門的業務，看看富蘭克林正在建立什麼，以便他們可以開始在公司的其他領域複製我們的業務營運模式。

We have also begun to recruited additional lean leaders to support and see scale, faster implementation path across the business. We are also seeing substantial improvements in how we deliver quality and service to our customers. Our capability to identify root causes and quickly apply corrective actions has increased and accelerated.

我們也開始招募更多的精實領導者來支持和了解整個企業的規模化、更快的實施路徑。我們也看到我們為客戶提供品質和服務的方式取得了重大改進。我們識別根本原因並快速採取糾正措施的能力得到了增強和加速。

The result is improved product and service differentiation that is allowing us the opportunity for faster organic growth. Faster organic growth is also being enabled by our efforts to improve the capability of our commercial excellence process.

其結果是提高了產品和服務的差異化，使我們有機會實現更快的有機成長。我們努力提高商業卓越流程的能力，也實現了更快的有機成長。

During the quarter, we began the second phase of our pilot and Consumer Products North America, where we are building a world-class conversion engine to produce the right innovation, deliver that innovation to the best target pipeline and convert that pipeline at world class rates of conversion center of excellence from which we will replicate the new processes across the other berry business units.

本季度，我們開始了北美消費品試點的第二階段，我們正在建立世界一流的轉換引擎，以產生正確的創新，將創新交付到最佳目標管道，並以世界一流的速度轉換該管道卓越轉換中心，我們將在其他漿果業務部門複製新流程。

Now I will turn it over to Mark, who will review Berry's financial results. Mark.

現在我將把它交給馬克，他將審查貝瑞的財務表現。標記。

Thank you, Kevin. Turning now to our financial results highlights on slide 8. As Kevin pointed out, our quarterly results for both revenue and earnings aligned with our expectations. Our global teams have persistently work towards optimizing our manufacturing footprint, enhancing our customer experience and improved product mix across our businesses.

謝謝你，凱文。現在轉向幻燈片 8 中的財務業績亮點。正如凱文所指出的，我們的季度收入和獲利結果符合我們的預期。我們的全球團隊一直致力於優化我們的製造足跡、增強我們的客戶體驗並改善我們整個業務的產品組合。

We've made considerable consolidating our higher cost assets. And as volumes continue to recover, we anticipate an incremental earnings benefit from more efficient assets. These strategic actions are focused approach are effectively countering the challenges posed by softer global market demand due to inflation.

我們已經大力整合我們的高成本資產。隨著銷售量持續恢復，我們預計更有效率的資產將帶來增量收益。這些策略行動的重點是有效應對通膨導致的全球市場需求疲軟帶來的挑戰。

For the quarter, adjusted earnings per share saw 16% increased amounting to $2.18 per share. Operating EBITDA also increased to $546 million, a 6% increase compared to the previous year. In line with our expectations as volumes increase delivering 2% year over year growth was all four operating segments.

本季調整後每股收益成長 16%，達到每股 2.18 美元。營運 EBITDA 也增至 5.46 億美元，比上年成長 6%。所有四個營運部門的銷量年增 2%，符合我們的預期。

I would like to refer everyone to slide 9 for our quarterly performance by each of our four operating segment review will focus on the career changers for fiscal Q3. Starting with our consumer packaging international division, revenue was down 5% after a polymer costs, partially offset by organic volume growth of 1%.

我想請大家參考投影片 9，了解我們的季度業績，我們四個營運部門的審查將重點放在第三財季的職業轉變者。從我們的消費包裝國際部門開始，由於聚合物成本的影響，收入下降了 5%，但部分被 1% 的有機銷售成長所抵消。

Our industrial and personal care markets improved compared to the while food service markets were weaker. We continue to execute our strategy today drive an improved product mix to higher-value products. Operating EBITDA was up 5% compared to the prior year quarter, driven by our structural cost reduction initiatives, lower energy costs in certain European regions and positive or volume growth.

與食品服務市場疲軟相比，我們的工業和個人護理市場有所改善。今天，我們繼續執行我們的策略，推動改進產品組合，生產更高價值的產品。由於我們的結構性成本削減計劃、某些歐洲地區能源成本的降低以及銷售的正增長，營運 EBITDA 與去年同期相比增長了 5%。

We also continue to invest and expect improved product mix by utilizing our sustainability leadership and increasing our presence in health care packaging, pharmaceutical devices and dispensing systems.

我們也繼續投資並期望透過利用我們的永續發展領導力並增加我們在醫療保健包裝、製藥設備和分配系統方面的影響力來改善產品組合。

On slide 10, revenue in our Consumer Packaging North American division increased by 3%, primarily driven by 2% organic volume growth. This growth was broad-based across many markets, including food, beverage, personal care, home care and industrial. Our foodservice business saw a modest decline against a strong prior year quarter.

在幻燈片 10 中，北美消費品包裝部門的收入成長了 3%，這主要是由 2% 的有機銷售成長所推動的。這種成長廣泛存在於許多市場，包括食品、飲料、個人護理、家庭護理和工業。與去年同期的強勁表現相比，我們的餐飲服務業務略有下降。

Our teams have successfully mitigated a weaker demand is driven by inflation through share gains. Notably, we've witnessed numerous substrate conversions from paper, phone, glass and metal to plastics. Our ongoing efforts include integrating more circular materials, offering sustainable solutions and enhancing the end consumer experience.

我們的團隊透過股價上漲成功緩解了通膨驅動的需求疲軟。值得注意的是，我們見證了無數基材從紙張、電話、玻璃和金屬到塑膠的轉變。我們持續的努力包括整合更多的循環材料、提供永續的解決方案和增強最終消費者體驗。

Operating EBITDA showed strong performance, increasing by 10% compared to the prior year quarter. Growth was primarily attributed to our cost reduction efforts, focus on higher-value products, timing of polymer pass throughs and a 2% organic volume increase.

營運 EBITDA 表現強勁，與去年同期相比成長 10%。成長主要歸功於我們降低成本的努力、對高價值產品的關注、聚合物傳遞的時機以及 2% 的有機銷售成長。

And on slide 11, revenue in our flexibles division declined 2% due to lowering prices, partially offset by a 2% organic volume increase, primarily consumer categories and European film products. While our industrial markets experienced modest headwinds when compared to the prior year, we continued to see recovery as overall volumes increased over Q2.

在幻燈片 11 中，由於價格下降，我們的軟包裝部門的收入下降了 2%，但部分被 2% 的有機銷售成長（主要是消費品類別和歐洲薄膜產品）所抵消。儘管與去年相比，我們的工業市場遇到了溫和的阻力，但隨著第二季整體銷售的增加，我們繼續看到復甦。

Operating EBITDA for the quarter increased by 2% compared to the prior year quarter, driven by positive volume growth and structural cost reduction initiatives, partially offset by unfavorable mix.

在銷售正面成長和結構性成本削減措施的推動下，本季的營業 EBITDA 與去年同期相比成長了 2%，但部分被不利的組合所抵銷。

On slide 12, revenue in our Health, Hygiene & Specialties division remained flat compared to the prior year. This result was driven by a 2% organic volume increase, which was offset by lower selling prices from polymer capacitors. Notably, we observe strong volume growth in our surgical suite, hard-surface disinfecting wipes and adult incontinence markets.

在投影片 12 中，我們的健康、衛生和專業部門的收入與前一年相比保持持平。這一結果是由 2% 的有機銷量成長推動的，但聚合物電容器售價下降抵消了這一增長。值得注意的是，我們觀察到手術套件、硬表面消毒濕紙巾和成人失禁市場的銷售量強勁成長。

Encouragingly, overall volumes have shown sequential improvement over the past four quarters. Additionally, operating EBITDA for the quarter increased by 5% compared to the prior year quarter, fueled by volume growth and our ongoing structural cost reduction initiatives.

令人鼓舞的是，過去四個季度的整體銷售量連續改善。此外，在銷售成長和我們持續的結構性成本削減措施的推動下，本季的經營 EBITDA 與去年同期相比成長了 5%。

The HH&S segment delivered solid volume and earnings growth during the quarter, while at the continuing integration activities of the previously announced spin-merge transaction, including the creation of the Magnera brand.

HH&S 部門在本季度實現了穩健的銷售和盈利增長，同時繼續進行先前宣布的分拆合併交易的整合活動，包括創建 Magnera 品牌。

Magnera will be a global leader in specialty materials industry. The broadest global product offering in high-growth markets for both polymer and fiber-based product applications. Our consistent cash flows have allowed us the ability to deliver substantial returns to our shareholders, a testament to our company's core strength and value.

Magnera將成為特種材料產業的全球領導者。在高成長市場中為聚合物和纖維產品應用提供最廣泛的全球產品。穩定的現金流使我們能夠為股東帶來豐厚的回報，這證明了我們公司的核心實力和價值。

This fiscal strength and stability enables us to channel investments into our businesses to drive organic volume growth, boost efficiency can currently distribute capital to our shareholders.

這種財政實力和穩定性使我們能夠將投資引入我們的業務，以推動有機銷售成長，提高效率，目前可以將資本分配給我們的股東。

As shown on slide 13, our unwavering capital allocation strategy is rooted in returns and captures ongoing investments in buckets, strategic portfolio management, debt repayment, share buybacks, and a growing quarterly cash dividend.

如投影片 13 所示，我們堅定不移的資本配置策略植根於回報，並涵蓋了對桶子、策略性投資組合管理、債務償還、股票回購和不斷增長的季度現金股息的持續投資。

As Kevin mentioned, we expect to deliver $1 billion in free cash flow and our fiscal fourth quarter. Additionally, we foresee generating proceeds exceeding $2 billion within the next year, inclusive of our proposed spin merger transaction with Glatfelter that we've previously announced.

正如 Kevin 所提到的，我們預計第四財季將實現 10 億美元的自由現金流。此外，我們預計明年將產生超過 20 億美元的收益，其中包括我們先前宣布的與 Glatfelter 擬議的分拆合併交易。

These divestitures aligned seamlessly with our long-term strategy, which aims to streamline the portfolio, bolster earnings stability and augment long term growth. Capitalizing on our robust and reliable cash flows, we have strengthened our solid balance sheet with a focus on driving long-term value for our shareholders.

這些資產剝離與我們的長期策略無縫銜接，旨在簡化投資組合、增強獲利穩定性並促進長期成長。憑藉著強勁可靠的現金流，我們強化了穩健的資產負債表，並專注於為股東帶來長期價值。

We project to be within our targeted leverage range by the close of fiscal 2024. We believe we are well positioned for continued value creation. Our strong cash flows have allowed us the flexibility to drive returns for our shareholders.

我們預計到 2024 財年結束時槓桿率將處於目標範圍內。我們相信，我們處於持續創造價值的有利位置。我們強勁的現金流使我們能夠靈活地為股東帶來回報。

As demonstrated on slide 14 Berry has reduced net debt by more than $3 billion since mid-2019, along with more than $1.5 billion returned to shareholders through both share repurchases and dividends in fiscal 2022 and 2023. By the end of fiscal 2024, we expect that we will have returned a number of $5.4 billion cumulative net debt reduction and capital return since fiscal 2020.

如投影片 14 所示，自 2019 年中期以來，Berry 已減少了超過 30 億美元的淨債務，並透過 2022 財年和 2023 財年的股票回購和股息向股東返還了超過 15 億美元。到2024財年末，我們預計將返還自2020財年以來累計54億美元的淨債務削減和資本回報。

As you can see on slide 15, various track record of delivering top-tier results across various key financial metrics, including revenue, earnings and free cash flow, a testament to the effective implementation of our strategies. We remain committed to enhancing long-term value holders by maintain being a reliable and balanced portfolio.

正如您在投影片 15 中所看到的，在各種關鍵財務指標（包括收入、收益和自由現金流）上提供頂級業績的各種記錄，證明了我們策略的有效實施。我們仍然致力於透過保持可靠和平衡的投資組合來增強長期價值持有者的能力。

This consistency has withstood numerous economic cycles. And since our last notable acquisition of RPC in 2019, we have generated free cash flow annually, ranging from $850 million to $1 billion. Furthermore, from an earnings standpoint, our annual adjusted EPS CAGR of 8%. This achievement further solidifies our leading position in the industry.

這種一致性經受住了多次經濟週期的考驗。自 2019 年我們上次重大收購 RPC 以來，我們每年產生的自由現金流量從 8.5 億美元到 10 億美元不等。此外，從獲利角度來看，我們的年度調整後每股盈餘複合年增長率為8%。這項成果進一步鞏固了我們在業界的領先地位。

This concludes our review, and now I'll turn it back to Kevin.

我們的評論到此結束，現在我將把它轉回給凱文。

Thank you, Mark. Our fiscal 2014 guidance and assumptions outlined on slide 16. Reflect a solid three quarter performance. We are now targeting $7.60 earnings per share for fiscal 2024. For this EPS assumes operating EBITDA, specifically fiscal Q4 as EBITDA of $560 million or a 2.5% increase over the past prior year quarter and low single digit volume growth.

謝謝你，馬克。我們的 2014 財年指導與假設已在投影片 16 中概述。反映出穩健的三季業績。我們目前的目標是 2024 財年每股收益 7.60 美元。對於此每股收益，假設經營 EBITDA，特別是第四財季的 EBITDA 為 5.6 億美元，比去年同期成長 2.5%，銷售成長幅度較低。

We continue to expect free cash flow in the range of $800 million to $900 million. Furthermore, and in line with our focus on driving long-term shareholder value, we expect to prioritize repayment of debt to meet our leverage target commitment along with further share repurchases. We continue to believe our shares are undervalued and our repurchases reflect our confidence in the outlook of our business and long term strategy.

我們仍然預期自由現金流在 8 億至 9 億美元之間。此外，為了與我們致力於推動長期股東價值一致，我們預計將優先償還債務，以實現我們的槓桿目標承諾以及進一步的股票回購。我們仍然認為我們的股票被低估，我們的回購反映了我們對業務前景和長期策略的信心。

As you can see on slide 17, you will observe that Barry has a track record of meeting and often surpassing our objectives. Our long-term objectives underscore the reliability of our model, targeting an EBITDA growth of 4% to 6% and adjusted EPS growth of 7% to 12% and a total shareholder return of 10% to 15%.

正如您在投影片 17 中看到的，您會發現 Barry 有著滿足並經常超越我們目標的記錄。我們的長期目標強調了我們模型的可靠性，目標是 EBITDA 成長 4% 至 6%，調整後每股盈餘成長 7% 至 12%，股東總回報率為 10% 至 15%。

We foresee our dividend growing year on year, and we're on track to reach our recently reduced long-term leverage target by the close of fiscal 2024. To summarize, our strategic objectives are unchanged.

我們預計股息將逐年增長，並且我們預計在 2024 財年結束時實現最近降低的長期槓桿目標。總而言之，我們的策略目標並沒有改變。

To summarize, our strategic objectives are unchanged, optimize the portfolio, applied lean transformation and expedite growth through top tier commercial excellence with a clear trajectory to attain a low-threes leverage in the next 12 to 15 months, a lean transformation pipeline that enables a 2% to 3% annual reduction in conversion costs and the capacity to achieve organic growth of 2% to 3% per year, we anticipate delivering performance above that of our peers.

總而言之，我們的策略目標保持不變，優化投資組合，應用精實轉型，並透過頂級商業卓越加速成長，並制定明確的軌跡，在未來12 至15 個月內實現低三倍槓桿率，這是一條精益轉型管道，可實現每年轉換成本降低 2% 至 3%，並有能力實現每年 2% 至 3% 的有機成長，我們預計將提供高於同行的績效。

Our positive outlook for the next several quarters is fueled by several elements, including the ongoing mitigation of inflation and a resurgence of more standard levels of customer promotional activity. Lastly, we have acted on areas to enhance our valuation multiple. We have fortified our robust balance sheet, reduced our targeted leverage range and return significant cash to shareholders.

我們對未來幾季的樂觀前景受到多種因素的推動，包括通貨膨脹的持續緩解和更標準水準的客戶促銷活動的復甦。最後，我們在提高估值倍數的領域採取了行動。我們強化了穩健的資產負債表，降低了目標槓桿範圍，並向股東返還了大量現金。

And as we persist in showcasing sales volumes, we are confident that we will persistently narrows the valuation gap to our peer group, thereby offering a compelling investment opportunity. Thank you for your time and interest in Berry.

隨著我們堅持展示銷量，我們有信心不斷縮小與同行的估值差距，從而提供令人信服的投資機會。感謝您的時間和對貝瑞的興趣。

And with that, Mark and I are happy to address any questions which you may have. Operator?

因此，馬克和我很樂意回答您可能提出的任何問題。操作員？

(Operator instructions) Josh Spector, UBS.

（操作員說明）Josh Spector，UBS。

Actually, this is Sahas speaking on behalf of Josh, thank you for taking my questions. So well, in terms of our interest expense on the guidance in the fourth quarter looks much higher than the of than they ever reach a positive three quarters. So, any color on that?

實際上，這是 Sahas 代表 Josh 發言，感謝您回答我的問題。那麼，就我們在第四季度指導的利息支出而言，看起來比以往三個季度的正利息支出要高得多。那麼，有什麼顏色嗎？

Sure. Good morning. This is Mark. At the increase in interest expense is primarily driven by some non-cash cost income, if you will, that falls off or did fall off in Q3. And that was always project given our outlook for fiscal '24.

當然。早安.這是馬克。利息支出的增加主要是由一些非現金成本收入（如果你願意的話）所驅動的，這些非現金成本收入在第三季下降或確實下降。考慮到我們對 24 財年的展望，這始終是一個項目。

Okay. Got it. Thank you. And the income solve our I mean, so they take all the carbon market share trends underway, and we mentioned before that we are gaining market share there. So any color on the covenant trend thinking?

好的。知道了。謝謝。我的意思是，收入解決了我們的問題，所以他們掌握了所有碳市場份額趨勢，我們之前提到過，我們正在那裡獲得市場份額。那麼聖約趨勢思維有什麼色彩嗎？

The question was about how volume trends in general or anything specific?

問題是整體或具體的成交量趨勢如何？

Sorry for the takeout of the comp.

抱歉，我們取消了補償。

Sorry, you broke up a little bit.

抱歉，你們分手了一點。

Sorry, we take it out of comp.

抱歉，我們將其從補償中刪除。

-- So there were some, as you probably saw in many of our customer reports of foot traffic has been a little weaker than expected, driven by predominantly inflate. So as a result of that, you've seen many of our customers increase Kris promotional activity here recently, and we are starting to see the benefit of that in our volumes here term.

——所以，正如您可能在我們的許多客戶報告中看到的那樣，客流量略低於預期，主要是由於通貨膨脹所致。因此，您已經看到我們的許多客戶最近在這裡增加了 Kris 促銷活動，並且我們開始在我們的銷售中看到這一點的好處。

And we expect those customers to continue to focus on growing their business. So we're optimistic about the outlook going forward. Yes, I would say we've in the last few weeks seen a notable improvement. Can you give out?

我們希望這些客戶繼續專注於發展他們的業務。因此我們對未來的前景持樂觀態度。是的，我想說我們在過去幾週看到了顯著的進步。可以發出來嗎？

I would turn it over. Thank you.

我會把它翻過來。謝謝。

Philip Ng. Jefferies.

吳菲利普.傑弗里斯.

Hey, guys. I guess on that note, a lot of the QSRs and even the CPG guys have talked about consumer being weaker inflation and all that. So, my question is, have you already felt the pain and seen it in your numbers? Pretty encouragingly here that you're seeing some uptick here.

嘿，夥計們。我想在這一點上，很多 QSR 甚至 CPG 人員都談到了消費者通膨疲軟之類的問題。所以，我的問題是，你是否已經感受到了痛苦並在你的數據中看到了它？令人鼓舞的是，您在這裡看到了一些上升。

So, I guess, predicated in your guidance for the fourth quarter, that low single-digit volume growth, are you assuming things kind of pick up from here because of the promos already? And what do you have kind of supporting that low single-digit growth is just easier comp. Just give us a little more context what you're seeing.

因此，我想，根據您對第四季度的指導，單位數的銷售增長較低，您是否認為由於促銷活動，情況會因此有所好轉？你有什麼辦法來支持低個位數的成長？請向我們提供更多您所看到的背景資訊。

Yes. That is really home and has been all year. Our view is that we would just have comps. We expected the second half to not continue to see any deterioration but to show some very modest improvement, but still to be kind of down from where they historically would have been.

是的。那才是真正的家，而且已經一整年了。我們的觀點是，我們只會有比較。我們預計下半年不會繼續出現任何惡化，而是會出現一些非常溫和的改善，但仍低於歷史水準。

And that's really what we're seeing so far. Fourth quarter projection is it's not dependent on any market improvement. If there is market improvement, I would say that would give us some upside, but it's really just what we see happening now translating versus what we said quarter of last year.

這確實是我們目前所看到的情況。第四季的預測是它不依賴任何市場的改善。如果市場有所改善，我想說這會為我們帶來一些好處，但這實際上只是我們現在看到的情況與我們去年第四季所說的情況相比。

And what have you seen, Kevin, I guess month of July so far?

凱文，我想到目前為止，你看到了什麼？

We're having a good month. It's positive and encouraging.

我們度過了美好的一個月。這是積極且令人鼓舞的。

Okay. And then can you give us an update on the process of the potential divestitures just given the $3 billion of cash you highlighted coming in and then just help us contextualize given the EBITDA profile might be it will be different post the spin. How do you kind of see leverage shaping up by the end of 2025? Could you kind of actually get below 3 times?

好的。然後，考慮到您強調的 30 億美元現金流入，您能否向我們介紹潛在資產剝離的最新流程，然後幫助我們了解 EBITDA 情況，因為剝離後的情況可能會有所不同。您如何看待 2025 年底槓桿率的變化？你實際上能達到 3 次以下嗎？

Just give us some color there. And with your balance sheet in that leverage target ratio by the end of 2024? How are you prioritizing capital deployment? You talked about maybe buying back more stock. Give us a little more context in terms of capital deployment, M&A, buybacks and debt pay down from here?

只是給我們一些顏色。到 2024 年底，您的資產負債表是否達到槓桿目標比率？您如何決定資本部署的優先順序？你談到可能回購更多股票。請給我們更多關於資本部署、併購、回購和債務償還的背景資訊？

Sure. Yes, we're committed to getting to that 3.5 or lower this year. I would expect in '25 with our divestiture plan and the cash flows that we see coming, we should be in the very low-three. I mean, possibly, you could hit the high-two, but I would say, safely in the very low-three.

當然。是的，我們致力於今年達到 3.5 或更低。我預計在 25 年，根據我們的剝離計劃和我們看到的現金流，我們應該處於非常低的三分之二。我的意思是，你可能可以打出高兩桿，但我想說，安全地打出很低的三桿。

And I think we're very focused on the value of our stock being below what it should be. So, we continue to see share buyback as a meaningful value for our shareholders. Of course, we're always looking at bolt-on acquisitions that are highly accretive. So, we would balance that with what opportunities we see to transpire in the market.

我認為我們非常關注我們的股票價值低於應有的價值。因此，我們仍然認為股票回購對我們的股東來說具有有意義的價值。當然，我們一直在尋找具有高度增值性的補強收購。因此，我們將平衡這一點與我們看到的市場上出現的機會。

Thank you. Appreciate the color Kevin.

謝謝。欣賞凱文的顏色。

George Staphos, Bank of America Securities.

喬治‧斯塔福斯，美國銀行證券公司。

Hey everyone. Good morning, How you doing Kevin, Mark, Dustin. Thanks for the details. My two questions I want to talk about the two pipelines you talk about. First of all, can you talk about how the pilot at Franklin has evolved and what you've a little bit of detail? I would like to get maybe some quantification there can mean for the broader business over time in terms of improved efficiency and margin and the likes.

嘿大家。早安，凱文、馬克、達斯汀，你們好嗎？感謝您提供詳細資訊。我的兩個問題我想談談你所說的兩條管道。首先，您能談談富蘭克林的飛行員是如何演變的以及您有什麼細節嗎？我想得到一些量化數據，隨著時間的推移，在提高效率和利潤等方面可能對更廣泛的業務意味著什麼。

Second question, you talked about the pipeline that you're developing. We'd like little bit of color a little bit more on that. And in particular, with customers now beginning to promote more specialized the foodservice side, what are they asking from you now in terms of promotion acumen in terms of an innovation, right?

第二個問題，您談到了您正在開發的管道。我們想要在上面多一點顏色。特別是，隨著顧客現在開始推廣更專業化的餐飲服務，他們現在對您在創新方面的推廣敏銳度有什麼要求，對嗎？

So if they're dropping price and trying to come to the customer with a retail shops through their door doors, how is the packaging? How is your products helping that occur? And what's new beyond kind of their comp from a couple of years ago? Thanks and good luck in the quarter.

因此，如果他們降價並試圖透過零售店的大門來接觸顧客，那麼包裝怎麼樣？您的產品如何幫助實現這一目標？除了幾年前的比賽之外，還有什麼新內容？謝謝，祝本季好運。

Sure. Yes, I'll start at first. The the innovation and growth, I'm extremely encouraged by the progress that we've seen at a very short period of time. In our CPNA we are tracking $75 million of wins ahead of where we were at the same point last year.

當然。是的，我先開始。創新和成長，我對我們在很短的時間內看到的進步感到非常鼓舞。在我們的 CPNA 中，我們追蹤的勝利金額比去年同期領先 7500 萬美元。

Here and we see really strong momentum. Developing are, of course, have a piece of that business is, in fact, food service and where we really delayed and help drive success in these promotions in two ways, we have a of excellent sustainable solution in a very clear product is that the consumer has shown in multiple tests to have a high preference for is why we continue to win share in that space.

在這裡，我們看到了非常強勁的勢頭。當然，發展中的業務實際上是餐飲服務，我們真正推遲並透過兩種方式幫助推動這些促銷活動取得成功，我們在非常明確的產品中擁有出色的可持續解決方案，即消費者在多項測試中表現出高度偏好，這就是我們繼續在該領域贏得份額的原因。

And we have the ability to service customers with rapidly changing demand requirements in a very consistent way and they rely on us to be able to move with them. We start to promote and they want to go quickly. We have the ability to go quickly in a way that are most of our competitors just can't match.

我們有能力以非常一致的方式為需求快速變化的客戶提供服務，他們依賴我們能夠與他們一起行動。我們開始推廣，他們想快點行動。我們有能力以大多數競爭對手無法比擬的方式快速前進。

And then in the first area, lean, we focused on Franklin because it was a ripe environment in a very meaningful growth area for our business in health care. And one where we knew by driving productivity, we can immediately impact sales since we began the effort. We have seen it north of 20% improvement in throughput, and it's really coming from a couple of key areas.

然後在第一個領域，精益，我們專注於富蘭克林，因為它是一個成熟的環境，對於我們的醫療保健業務來說是一個非常有意義的成長領域。我們知道，自從我們開始努力以來，透過提高生產力，我們可以立即影響銷售。我們已經看到吞吐量提高了 20% 以上，這確實來自幾個關鍵領域。

One is the daily management processes that have gone out to really drive our by our at the shop floor level, to quickly raise areas of opportunity to drive improvement, fix issues with machines with how we scale the supply chain side of the business and quickly respond and remove those bottlenecks.

一是日常管理流程，這些流程真正推動了我們在車間層面的發展，快速提出推動改進的機會領域，解決機器問題以及我們如何擴展業務供應鏈方面并快速做出響應並消除這些瓶頸。

We think that that process will have dramatic impact across all these, which we have around 200 facilities post HH&S divestiture and who are very few of them have that sort of daily management process in place today.

我們認為，這項流程將對所有這些機構產生巨大影響，在 HH&S 剝離後，我們擁有約 200 家工廠，而如今只有很少的工廠擁有這種日常管理流程。

The second big we are finding is in the area of total qual predictive maintenance we have in our asset intensive in terms of conversion and we need those assets are running at a very high uptime, our OEEs have room to improve. And we have seen substantial improvement in those OEE through a focus on that predictive maintenance being ahead of the gain, avoiding breakdowns.

我們發現的第二大問題是在全面品質預測維護方面，我們在資產密集型方面擁有轉換方面的能力，我們需要這些資產以非常高的正常運行時間運行，我們的 OEE 有改進的空間。透過專注於預測性維護，避免故障，我們已經看到 OEE 得到了顯著改善。

That as another building out as part of this lean transformation, which will ultimately help us to be more capital efficient to achieve sustained growth levels. And as we grow faster than we have historically, we should be able to do that without having to raise our overall capital requirements.

這是精益轉型的另一項建設，最終將幫助我們提高資本效率，以實現持續成長水準。由於我們的成長速度比歷史上更快，我們應該能夠做到這一點，而不必提高我們的整體資本需求。

Kevin, is it too soon to say what the raising of the OEE could mean in terms of your earnings, thanks sort of come back to those kind of a hanging questions?

凱文，現在說 OEE 的提高對您的收入意味著什麼還為時過早嗎？

Yes. We I mean we're building into our '25 outlook, what we think it can mean in but we're definitely targeting this 2% to 3% continual conversion cost improvement, and we see no reason why we can't continue to focus on that as the goal.

是的。我的意思是，我們正在建立我們的“25 年展望”，我們認為它可能意味著什麼，但我們的目標肯定是持續提高 2% 到 3% 的轉換成本，而且我們沒有理由不繼續關注以此為目標。

Thank you so much.

太感謝了。

Sure.

當然。

Mike Roxland, Truist Securities.

麥克‧羅克克蘭 (Mike Roxland)，Truist 證券公司。

Okay. Thank you, Kevin, Mark and Dustin for taking my questions,Just one quickly on the EBITDA guidance. It seems like you lowered EBITDA to $2.06 billion from the prior range of $2.05 billion to $2.15 billion despite better volumes and positive price cost. So, I just want to get a sense for you of what's driving this lower EBITDA outlook?

好的。謝謝凱文、馬克和達斯汀回答我的問題，請快速提出一個關於 EBITDA 指南的問題。儘管銷量增加且價格成本為正，但您似乎將 EBITDA 從之前的 20.5 億美元至 21.5 億美元範圍降低至 20.6 億美元。那麼，我只是想讓您了解是什麼原因導致 EBITDA 前景下降？

And also, can you just give us some color on how you expect to generate $1 billion in free cash flow in fiscal 4Q as you're negative about $176 million on a year-to-date basis?

另外，您能否告訴我們您預計如何在第四財季產生 10 億美元的自由現金流，因為您對年初至今的 1.76 億美元持負面看法？

Yes. So the first part on EBITDA, we did not lower our EBITDA guidance. We are coming in the range that we've talked about where we just are reporting the third quarter. We have one quarter left. So we're being more specific and where we see the final number for the year, how much resin inflation we see in our timing on recovery of that.

是的。因此，關於 EBITDA 的第一部分，我們沒有降低 EBITDA 指導。我們正處於我們剛才討論的第三季報告的範圍內。我們還剩四分之一。因此，我們更加具體，我們在哪裡看到了今年的最終數字，我們在恢復時間中看到了多少樹脂通膨。

And that is, by far and away the biggest impact in bringing us to have the outcome of the range where we are. We have seen supply side constraints in around the world with areas that you will note in terms of transportation, getting the Suez -- sorry yes, the Suez and the Red Sea.

也就是說，迄今為止，對我們取得目前範圍結果的最大影響。我們已經看到世界各地供應方面的限制，您會在運輸、蘇伊士運河方面注意到這些地區——對不起，是的，蘇伊士運河和紅海。

We also have outages in North America that affected the markets to move price higher. So it puts us a bit behind in terms of the timing of recovery. And that is not a long-term issue will look at the actual results of our margins are better than we would have expected. And we see really strong momentum and performance on costs.

北美地區也出現停電，影響了市場價格上漲。因此，這讓我們在恢復時間上有點落後。這不是一個長期問題，我們將看看我們的利潤率的實際結果是否好於我們的預期。我們看到了非常強勁的勢頭和成本表現。

So when I look at our EBITDA performance, I'm actually varies by it and very happy with the results. I would say the other is the final thing I would focus on is I've come in a new CEO, and I have certainly caused disruption. And I'm doing that with a focus on driving the ultimate long-term rate of improvement in EBITDA, even though there are some short-term impacts from that activity on.

因此，當我查看我們的 EBITDA 表現時，我實際上對此有所不同，並對結果感到非常滿意。我想說的是，我要關注的最後一件事是我任命了一位新首席執行官，我確實造成了混亂。我這樣做的重點是推動 EBITDA 的最終長期改善率，儘管該活動會產生一些短期影響。

So I think all in all, I'm very positive about where our EBITDA has developed and what it means momentum going into '25 and beyond. And then on the cash side, we just have so many moving parts with divestitures, we still see the opportunity to manage our cash, short-term working capital and still come in with our within our range.

因此，我認為總而言之，我對我們的 EBITDA 發展以及這意味著 25 年及以後的勢頭非常樂觀。然後在現金方面，我們有很多資產剝離的活動部件，我們仍然看到管理現金、短期營運資本的機會，並且仍然在我們的範圍內。

Yes, just to add on a cash point. And our outlook for Q4 is actually below what we've achieved the last two years on average, so very achievable. And this is normal in terms of the cash flows on a quarterly basis.

是的，只是增加一個現金點。我們對第四季度的預期實際上低於過去兩年的平均水平，因此非常有可能實現。就季度現金流而言，這是正常的。

Got it. And appreciate the comments you all very helpful. And then just one quick question on you mentioned persistent weakness in North American transportation and treat from, I believe on previously, I think you said the same thing this quarter. Any initiatives underway to drive better performance from that sector?

知道了。感謝你們的評論，非常有幫助。然後，關於您的一個簡單問題提到了北美運輸和招待的持續疲軟，我相信之前，我認為您在本季度也說了同樣的事情。是否正在採取任何措施來推動該行業取得更好的業績？

And if you could share some unpleasant for us, some color on what you're doing to improve that or if not, what you are considerations we possible divestiture allows us any color you can provide would be helpful. Thank you.

如果您可以分享一些讓我們不愉快的事情，或者您正在採取哪些措施來改進這一點，或者如果沒有，您正在考慮什麼，我們可能的資產剝離允許我們提供您可以提供的任何顏色都會有所幫助。謝謝。

Yes. I mean, really a North American business in those areas has been some really strong. I would say we're outperforming the market. We have shifted a portion of our volume to value added higher level of engineered product that allows customers to use our last product because the performance is there, the look-through through lightweighting and material science.

是的。我的意思是，北美在這些領域的業務確實非常強大。我想說我們的表現優於市場。我們已將部分產量轉向增值更高水準的工程產品，使客戶能夠使用我們的最新產品，因為性能已經存在，透過輕量化和材料科學進行了深入研究。

And we are continuing to win share in that area at margins that we really I would say what you you mentioned, I think is really more limited some of what we've seen in Europe, and it's just a slower recovery in Europe. But ultimately, we do see recovery happening in Europe. It's just happening at a slower rate.

我們正在繼續以邊際優勢贏得該領域的份額，我真的想說你提到的，我認為我們在歐洲看到的一些情況確實更加有限，而且歐洲的復甦速度較慢。但最終，我們確實看到歐洲正在復甦。它只是以較慢的速度發生。

Thank you very much.

非常感謝。

Ghansham Panjabi, Baird.

甘沙姆‧潘嘉比 (Ghansham Panjabi)，貝爾德 (Baird)。

Hey, good moring. Your volumes are obviously up a little bit year over year, but very low threshold as or what's your peers in the industry, just the challenges with consumer affordability that seems to be spending, et cetera. How is that dynamic starting to impact competitive activity of as you see it at this point in context of some of your peers calling out price competition and in areas such as food service, for example?

嘿，早安。你們的銷量顯然逐年增加了一點，但與業內同行相比，門檻非常低，只是消費者承受能力方面的挑戰，似乎是支出等等。在您目前看到的一些同儕呼籲價格競爭以及食品服務等領域的競爭活動中，這種動態是如何開始影響競爭活動的？

Yes. I mean, we we have some we certainly are seeing higher levels of competition from what we are offering a free specifically in food service. It is quite superior. And we see really the ability to maintain margin. We are continuing to win share in that space on without sacrificing our margins in this space. And I think we will continue to be able to do that going forward.

是的。我的意思是，我們有一些我們確實看到了更高水平的競爭，因為我們專門提供免費的食品服務。是相當優越的。我們確實看到了維持利潤的能力。我們將繼續贏得該領域的份額，而不會犧牲我們在該領域的利潤。我認為我們未來將繼續能夠做到這一點。

In general from was good to see on the elected by saying that validated was was positive. I think when we look at the negatives that some of our peers experienced in prior years in periods, we didn't go to the same level of now negative. So that what we're seeing there, flashing maybe a couple of numbers that are a little higher, but they're coming off of a much worse performance than we were much more consistent through the cycle.

總的來說，很高興看到當選者說，經過驗證是正面的。我認為，當我們看到一些同行在前幾年經歷過的負面影響時，我們並沒有達到現在的負面程度。因此，我們看到的可能是一些略高的數字，但它們的表現比我們整個週期的一致性要差得多。

And I think we've really set up the business well for consistency. And as we continue to refine this portfolio, we will just become more consistent going forward.

我認為我們確實為業務的一致性做好了準備。隨著我們繼續完善這個產品組合，我們將變得更加一致。

Yes, I think as you may recall, Ghansham, we moved pretty early in fiscal 23 to right-size our footprint and remove our higher cost assets. Our peers, the same. I think many of them were a little slower to respond. But I think much of that, higher cost capacity has been taken out of a network across many of our product categories.

是的，我想你可能還記得，Ghansham，我們在 23 財年很早就採取了行動，以調整我們的足跡並消除我們的成本較高的資產。我們的同齡人，也是一樣。我認為他們中的許多人反應有點慢。但我認為，在很大程度上，我們許多產品類別的網路已經失去了更高的成本能力。

Okay. Got it. Any update to share in terms of the obvious questions on substrate shifts away from plastics to paper, et cetera. Have you seen any shift in that dynamic? And how does the European consumer just more broadly feel at this point in terms of core spending, et cetera?

好的。知道了。任何有關基材的明顯問題的更新都會從塑膠轉向紙張等。您看到這種動態有什麼變化嗎？目前，歐洲消費者在核心支出等方面有何更廣泛的感受？

Sure the number one metric erupted extremely encouraging to me is our growth has moved from 5% to 7%. So that kind of our growth top line wins rate. And we seem to be picking up momentum with products that are really differentiated, especially multi-component products and dispensing and deodorants in these sorts of categories, we are we are having a lot of success and we see momentum building, and that's really from various sustainable model.

當然，第一個指標對我來說非常令人鼓舞，那就是我們的成長率從 5% 上升到 7%。所以我們的成長頂線獲勝率。我們似乎正在透過真正差異化的產品，特別是多成分產品以及此類類別的分配和除臭劑，我們取得了很大的成功，我們看到了勢頭的增強，這確實來自各個方面可持續發展模式。

Military material, lightweight at products that are better than the competitive offering. I would say the one area where there has been a shift in terms of substrate is and drink cups. And in Europe, drink cups are really paper-based see because of the regulation, a shift to be usable plastic cups, and we participated in that play plastic cup space.

軍用材料，產品輕量化，優於競爭產品。我想說，基材改變的一個領域是飲料杯。在歐洲，由於法規的原因，飲料杯實際上是紙質的，因此轉向可用的塑膠杯，我們參與了塑膠杯的發展。

So for us, it's a net positive. Superior growth in Europe is also related to the regulation is that tethered cap. So on bottles, there's regulation requires the cap to be fixed to the bottle for better recycling. And we have a superior product and we we are winning with the big players there. And that is a net positive in an increasing driver of growth for us in Europe.

所以對我們來說，這是一個淨正面的結果。歐洲的強勁成長也與限制上限監管有關。因此，對於瓶子，有規定要求將瓶蓋固定在瓶子上，以便更好地回收。我們擁有優質的產品，我們正在與那裡的大玩家一起獲勝。這對我們歐洲的成長動力來說是一個淨積極的影響。

The consumer, obviously, as I would say, in a sign what we see in terms of the US in terms of recovery, but we are seeing recovery and we've seen stabilization and really our first positive growth.

顯然，正如我要說的，消費者是我們在美國看到的復甦跡象，但我們正在看到復甦，我們已經看到了穩定，並且確實是我們的第一次正增長。

Thank you.

謝謝。

Arun Viswanathan, RBC Capital Markets.

阿倫‧維斯瓦納坦 (Arun Viswanathan)，加拿大皇家銀行資本市場部。

Great. Thanks for taking my question. Have you guys are -- I'm I guess us encouraging to see the 1% to 2% or less at low single digit volume growth in fiscal Q3. And I guess, how do you see that kind of evolving as you move into fiscal Q4 and 2025 for each of the different segments?

偉大的。感謝您提出我的問題。你們是不是——我想我們很高興看到第三財季銷量成長 1% 到 2% 或更低，個位數的低成長率。我想，當您進入第四財季和 2025 年各個不同細分市場時，您如何看待這種演變？

I guess you do know, would you maintain that rate? And maybe if you can discuss if there's any specific drivers as far as new business wins or if it's mainly just market market based recovery?

我想你確實知道，你會維持這個速度嗎？也許您可以討論是否有任何特定的驅動因素來贏得新業務，或者是否主要只是基於市場的復甦？

Sure. I think come we would expect similar low single digit growth in the fourth quarter, and we would expect to be accelerating growth in '25 on based on our performance in those markets, not due to recovery of the markets. If we see recovery of the markets really happening in '25, that traditional upside to our current outlook.

當然。我認為，我們預計第四季度將出現類似的低個位數成長，我們預計將根據我們在這些市場的表現而不是市場的復甦而在 25 年加速成長。如果我們看到市場在 25 年真正復甦，那麼我們當前的前景就會出現傳統的上行趨勢。

And then when we think about that in the context of some maybe some of the planned divestitures, do you expect EBITDA growth next year? Or how should we think about we know that the earnings power of the business, is there any other cost reductions and operating leverage kind of drivers that you would have to come lever that low single digit post maybe to mid-singles or I should think about that? Thanks.

然後，當我們在一些計劃中的資產剝離的背景下考慮這一點時，您預計明年的 EBITDA 會成長嗎？或者我們應該如何考慮我們知道企業的盈利能力，是否有任何其他成本降低和運營槓桿類型的驅動因素，你必須將低個位數的職位槓桿化到中單位數，或者我應該考慮一下那？謝謝。

Yes. I mean, we're not giving guidance today on 25, but I expect that we will see EBITDA growth and roughly the way you characterized it.

是的。我的意思是，我們今天不會給出 25 日的指引，但我預計我們會看到 EBITDA 增長，大致如您描述的那樣。

Then I would add to that.

然後我會補充一點。

Sorry, I was just going to ask similarly on free cash flow and also in light of some of the divestitures, would you be seeing lower CapEx and maybe some increased free cash flow growth? Or how should we think about that? Thanks.

抱歉，我只是想問類似的自由現金流問題，並考慮到一些資產剝離，您是否會看到資本支出降低以及自由現金流增長有所增加？或者說我們該如何思考這個問題？謝謝。

Yes, it's Mark. Yes, I would say we've, again, consistently delivered between $850 million to $1 billion of free cash since the RPC acquisition, obviously, that would have to be adjusted for the spin merge, but there's nothing that free cash flow is an important metric for us, and there's nothing that substance that would change our outlook other than, again, the obvious adjustment you have to make for that spend merge.

是的，是馬克。是的，我想說，自 RPC 收購以來，我們一直持續提供 8.5 億至 10 億美元的自由現金，顯然，這必須針對分拆合併進行調整，但自由現金流並不重要對我們來說，除了必須為支出合併做出的明顯調整之外，沒有任何實質內容可以改變我們的前景。

Great. Thanks

偉大的。謝謝

Adam Samuelson, Goldman Sachs.

亞當·薩繆爾森，高盛。

Good morning everyone. Yes. I guess first question is, again, thinking about 2025 at a high level. One, how much of the price cost kind of catch up from the second half of this fiscal year that you haven't fully done that lag. How much can you quantify that just in terms of what's carrying into 2025 that we should think about normalizing on else equal?

大家早安。是的。我想第一個問題再次是從高層次思考 2025 年。第一，多少價格成本是從本財年下半年開始趕上的，而你還沒有完全彌補這一落後。就 2025 年我們應該考慮在其他條件相同的情況下實現正常化而言，您能量化多少？

Yes, this is Mark. There's kind of two items to that. I guess, one on polymer lag which, again, is just a timing lag that Kevin referenced earlier that is about a headwind of $20 million this year. Again, depending on what polymer does next year, we would typically assume a flat environment, but we'll see as we approved our November call what the what happens with polymer and what the outlook is.

是的，這是馬克。有兩件事。我想，關於聚合物滯後的問題，這又只是凱文早些時候提到的時間滯後，今年的逆風約為 2000 萬美元。同樣，根據聚合物明年的表現，我們通常會假設環境持平，但當我們批准 11 月的電話會議時，我們將看到聚合物會發生什麼以及前景如何。

But our typical assumption would be flat. So that would be a tailwind eliminating that negative lag. And then, I would add our cost reduction program that we increased last quarter does have some incremental benefits that are going to help '25 about $35 million is the number for fiscal '25 incremental benefit from that program.

但我們的典型假設是持平的。因此，這將是消除這種負面滯後的順風車。然後，我想補充一下，我們上季度增加的成本削減計劃確實有一些增量收益，將有助於 25 年，大約 3500 萬美元是該計劃在 25 財年的增量收益的數字。

Okay. That's very helpful, Mark. And so and maybe, Kevin, just in response to kind of the prior question, you kind of alluded to accelerating organic volume growth kind of absent any market recoveries or assuming kind of similar market conditions to where we are today, between the kind of cost between those two cost items, kind of incremental productivity and cost actions that you looking at it as you continue to push lean principles through the organization and better volumes.

好的。這非常有幫助，馬克。因此，凱文，在回答先前的問題時，您提到了在沒有任何市場復甦的情況下加速有機銷量增長，或者假設市場條件與我們今天的情況類似，在成本之間在這兩個成本項目之間，當您繼續在組織中推行精實原則並提高產量時，您會考慮增量生產力和成本行動。

I guess it'd be reasonable to say that as you would look right now, you'd be tracking comfortably ahead of that kind of longer term 4% to 6% EBITDA growth target, is that fair?

我想可以合理地說，正如您現在所看到的，您將輕鬆地領先 4% 至 6% 的 EBITDA 長期成長目標，這公平嗎？

I mean I think that's the long-term trajectory, if we continue to execute at that level. It's really a matter of timing of wins and progress on the pipeline and when that manifests throughout 2025. But we have good momentum going into the year, and I feel positive about us delivering meaningful EBITDA growth.

我的意思是，如果我們繼續在這個水平上執行，我認為這就是長期軌跡。這實際上是一個勝利和進展的時機以及在 2025 年何時體現的問題。但今年我們的勢頭良好，我對我們實現有意義的 EBITDA 成長感到樂觀。

Okay. All right. That's maybe just one more quick one. The change in tax rate for the year, which is really what drove EPS to the midpoint of the range for the full year. Is there anything notable about that? Or should we be thinking about that tax rate reverting back to the historical low-20s rate next year?

好的。好的。這也許只是另一個更快的事情。當年稅率的變化，確實是推動每股盈餘達到全年區間中點的原因。這有什麼值得注意的地方嗎？或者我們應該考慮明年稅率恢復到 20 多歲的歷史低點？

Yes. We've consistently done a good job in that area of beating our target in fiscal '24 is no different. So just really happy with the progress we've made on tax and really, there's nothing more to say other than it's a consistent beat that our tax group has been able to achieve.

是的。我們在這方面一直做得很好，在 24 財年實現了我們的目標也不例外。因此，我們對我們在稅收方面取得的進展感到非常滿意，實際上，除了我們的稅務集團能夠實現的持續領先之外，沒有什麼可說的。

Thank you.

謝謝。

Matt Roberts, Raymond James.

馬特羅伯茨，雷蒙德詹姆斯。

Kevin and Mark, good morning. Thanks for taking the question. On the resin increase you touched on earlier, maybe explicitly, what is the price cost that you're embedding in that 4Q guide and your underlying resin cost assumptions or said differently, if resins move up in the next month, is that incrementally worse versus the current guide? Or are you baking in some further increases from here?

凱文和馬克，早安。感謝您提出問題。關於您之前提到的樹脂價格上漲，也許是明確的，您在第四季度指南中嵌入的價格成本以及您的基本樹脂成本假設是多少，或者換句話說，如果樹脂在下個月上漲，那麼情況是否會逐漸惡化？或者您是否正在從這裡開始進一步增加？

Yes, go ahead.

是的，繼續吧。

Yes. We have a modest headwind built in for Q4, and that's based on it's not yet settled for the month of July. But the market is projecting potentially an increase. So, we've taken a conservative view on that to the extent it doesn't happen that would be a tailwind. Anything that happened beyond July is really more a fiscal '25 matter than '24 just because of the lag in passing through our inventory.

是的。第四季我們面臨溫和的逆風，這是因為 7 月的情況尚未解決。但市場預計可能會增加。因此，我們對此持保守觀點，只要它不會成為順風車。7 月之後發生的任何事情實際上都更多是 25 財年的問題，而不是 24 財年的問題，只是因為我們的庫存流通存在滯後。

Yes. That's what I was going to say.

是的。這就是我想說的話。

Perfect. And then maybe on the price side of that equation, what are you embedding there? Is that going to be a drag in 4Q from incremental competitive pressures? Or do you think you're able to pass through price and be positive in 4Q?

完美的。然後也許在這個等式的價格方面，你在那裡嵌入了什麼？這是否會因競爭壓力的增加而拖累第四季？或者您認為您能夠通過價格並在第四季度保持樂觀嗎？

Yes, I think we're offsetting that lag with the cost reduction initiatives that we continue to deploy. And so, net-net, there's a modest favorability as the cost reductions are able to more than offset that lag that I referred to on timing of polymer pass-through.

是的，我認為我們正在透過繼續部署的成本削減計劃來彌補這一滯後。因此，淨淨來說，由於成本降低能夠抵消我在聚合物傳遞時間上提到的滯後，因此存在適度的優惠。

Christopher Parkinson, Wolfe Research.

克里斯托弗·帕金森，沃爾夫研究。

The first question is, in terms of the volume growth that you're seeing in the back half of the fiscal year, does appear things are getting better on the margin in a lot of different areas, in personal care and obviously some quick service stuff and obviously, promotivity seems to be picking up. So, when I think about that, it seems that user demand is pretty good.

第一個問題是，就您在本財年後半段看到的銷量增長而言，在個人護理和顯然一些快速服務方面，許多不同領域的情況似乎都在邊際上有所改善顯然，促銷力度似乎正在增強。所以我想想，用戶的需求似乎還是不錯的。

You're also coming off of some destocking of various areas over the last couple of years. Is it possible to parse out how you're thinking about volume growth for not only for the fourth fiscal quarter but into the next fiscal year in terms of what those key drivers are and where there could actually be potential areas of upside? I just wanted to dig into the details there a little bit more.

過去幾年裡，各領域的庫存也有所減少。是否有可能分析您如何看待第四財季和下一財年的銷售成長，包括哪些關鍵驅動因素以及哪些領域實際上可能存在潛在的上升空間？我只是想進一步深入了解那裡的細節。

Yes. I mean we're doing that work as we finalize kind of our view for '25. I would say, we see those pluses and minuses playing out around all the and segments we participate in, which are extremely broad and very broad geographies also. Net-net, I would say we see slightly positive market growth for '25 developing. And that's probably the best I would be able to do at this point in time.

是的。我的意思是，我們正在做這項工作，因為我們最終確定了 25 年的觀點。我想說，我們看到這些優點和缺點在我們參與的所有細分市場中發揮作用，這些細分市場也非常廣泛且非常廣泛的地域。Net-net，我想說我們看到 25 世紀發展中的市場略有積極成長。這可能是我目前能做的最好的事了。

Got it. And just a quick follow-up. In terms of the implied fiscal fourth quarter EBITDA versus your prior expectations, given the fact that volumes do appear to be let say, getting sequentially better, especially in QSRs, is there anything else going on that we should be considering? Is that just conservatism on behalf of management that we should be factoring in, in terms of kind of the trajectory here?

知道了。只是快速跟進。就隱含的第四財季 EBITDA 與您之前的預期相比，考慮到銷售確實似乎可以說是連續好轉，特別是在 QSR 方面，還有什麼是我們應該考慮的嗎？就這裡的軌跡而言，這是否只是我們應該考慮的管理階層的保守主義？

Is that are there any competitive pressures you're considering just price cost, you already mentioned earlier in the call. Can you just kind of break that out and how we should really be thinking about that as we progress towards the end of the fiscal year?

您在電話會議的前面已經提到過，您是否只考慮價格成本，是否有任何競爭壓力。您能否簡單介紹一下這個問題，以及當我們接近本財年結束時我們應該如何真正考慮這個問題？

Yes. I would say, our outlook was dependent on low single-digit growth in the second half. And we delivered what we expected, what our outlook was based on, and we don't really see that changing a whole lot between now and the end of our fiscal, which is not 1.5 months --

是的。我想說，我們的前景取決於下半年的低個位數成長。我們實現了我們的預期，我們的前景是基於什麼，我們並沒有真正看到從現在到我們的財政結束（不到 1.5 個月）之間發生很大的變化--

What I would say is the change or what really within the range that we talked about has driven us to the lower side is the resin we discussed. And then we've also done some divestitures. And if you pay to this out, you've got the resin lag as the number one driver.

我想說的是，我們所討論的範圍內的變化或真正推動我們走向較低水平的是我們所討論的樹脂。然後我們也進行了一些資產剝離。如果你為此付出代價，你會發現樹脂滯後是第一大驅動因素。

And the second driver, which should be at roughly half the level of impact, if I just round it off is from divestiture. But again, the core business and the strategic business going forward is performing extremely well.

第二個驅動力，如果我把它四捨五入的話，它的影響水平應該大約是剝離的一半。但同樣，核心業務和未來的策略業務表現非常出色。

Edlain Rodriguez, Mizuho.

艾德蘭·羅德里格斯，瑞穗。

Thank you. Good morning everyone. Kevin, just a follow-up to the volume question. What you're seeing right now? Like how would you characterize it? Like is it will fundamental improvement in demand? Or is it like purely inventory destocking that you see in -- I mean, restocking, sorry.

謝謝。大家早安。凱文，只是音量問題的後續。你現在看到什麼？例如你會如何描述它？需求是否會發生根本性改善？或者這就像你看到的純粹的庫存去庫存——我的意思是，抱歉，重新進貨。

Well, I would say that the destocking has run its course in all meaningful categories for us. And so, there's certainly been some strengthening, but that is really what we anticipated would be the case to drive us to kind of low single-digit second half of the year comps versus negative low single digit in the first half.

嗯，我想說的是，去庫存已經在所有對我們有意義的類別中結束了。因此，肯定會有一些加強，但這確實是我們預期的情況，將推動我們在今年下半年實現低個位數的比較，而上半年則為負低個位數。

That what that suggests is that the actual demand overall is not greatly improved. And we don't anticipate, in the next 1.5 months, it's going to dramatically change either. I do think there is a reason to be optimistic that '25 could see demand actually beginning to improve in some of these core non-discretionary consumer goods categories that make up a big piece of our business and an ever-growing portion of our business.

這顯示實際需求整體上並沒有大幅改善。我們預計，在接下來的 1.5 個月內，情況也不會發生巨大變化。我確實認為有理由樂觀地認為，25 世紀，一些核心非自由消費品類別的需求實際上開始改善，這些類別構成了我們業務的很大一部分，並且在我們業務中不斷增長。

Okay. And in terms of that $1 billion of potential divestitures you have for next year, like how far along are you in that process? And also, like how are those businesses that you plan on divesting different from the other businesses in the portfolio?

好的。就您明年可能進行的 10 億美元資產剝離而言，您在這過程中進行到了什麼程度？另外，您計劃剝離的那些業務與投資組合中的其他業務有何不同？

Yes. We are in various stages of discussions with a handful of businesses that kind of add up to actually, if all were executed, would be more than the $1 billion. They we expect them to be deleveraging, and we -- they, in general, would trade at a similar multiple performance a similar multiple to the overall average of the business.

是的。我們正與幾家企業進行不同階段的討論，如果全部執行的話，實際上加起來將超過 10 億美元。我們預期他們會去槓桿化，而我們——他們一般會以與企業整體平均水平相似的倍數進行交易。

What they do have characteristics of is more industrial exposure and lower overall growth rates than the core business that we're focused on moving forward.

它們的特點是，與我們重點發展的核心業務相比，它們的行業暴露程度更高，整體成長率更低。

Thank you.

謝謝。

George Staphos, Bank of America Securities.

喬治‧斯塔福斯，美國銀行證券公司。

More of a strategic question and recognizing it's going to be hard to talk live Mike on something like this. As you think out the next four quarters on the one hand, Berry is working rather diligently to improve its already good cost specially says you would see it through lean and the like, and you're getting some benefits from that.

更多的是一個戰略問題，並認識到很難在現場與麥克談論這樣的事情。當你一方面考慮接下來的四個季度時，貝瑞正在相當努力地提高其已經不錯的成本，特別是說你會透過精實等方式看到它，並且你會從中獲得一些好處。

And you're also working in the pipeline. In an environment that maybe is more difficult from a macro standpoint from where your customers are, do you think your growth on a relative basis versus your peers will come more because you can become more aggressive in terms of where you are in the cost curve versus peers?

您也在籌備中。從宏觀角度來看，從客戶所在的角度來看，在一個可能更加困難的環境中，您是否認為與同行相比，您的成長會更大，因為您可以在成本曲線中的位置上變得更加積極同行？

Or do you think it's a we are finding that we're much more able to drive new products more quickly and that gets you to volume growth? I recognize it's going to be all the above, but as you think about '25, is it going to be a year where you leverage cost or leverage pipeline to get the growth that you're hoping for?

或者您認為我們發現我們更有能力更快地推出新產品，從而使您實現銷售成長？我意識到這將是以上所有內容，但當你想到 25 年時，這將是你利用成本或管道來獲得你所希望的成長的一年嗎？

Thank you, George. Yes, by far and away, innovation, the pace of innovation our ability to deliver higher levels of sustainability and more circular products is going to be the number one driver of our ability to win in the markets that we're operating in. When we embark on the lean transformation journey, and I said this several quarters ago when we first began to talk about lean.

謝謝你，喬治。是的，到目前為止，創新、創新的步伐、我們提供更高水準的永續性和更多循環產品的能力將成為我們在所經營的市場中獲勝的首要驅動力。當我們踏上精實轉型之旅時，我在幾個季度前剛開始談論精實時就說過了這一點。

I wanted to go into lean not as a cost driver, although it very much is a cost driver, but as a way to drive variation out of our business. And the way variation manifests in our business is it ends up causing inconsistencies in how we provide service, on time and full lead times on a day-to-day basis and the quality of the product to our customers day in and day out.

我想進入精益不是將其作為成本驅動因素（儘管它在很大程度上是成本驅動因素），而是將其作為推動業務變化的一種方式。變化在我們業務中的表現方式是，它最終會導致我們每天提供服務的方式、準時和完整的交貨時間以及日復一日地為客戶提供的產品品質不一致。

And from 30 years in this industry, I have learned the lesson that if you perform consistently on service and quality, you will gain wallet share and you will have much less pressure on price. And I think that is exactly what will play out. So, the second driver of growth will, in fact, be better performance, differentiated service to customers from the lean transformation.

從這個行業的 30 年經驗中，我學到了這樣的教訓：如果你在服務和品質上始終如一，你將獲得錢包份額，並且價格壓力也會小得多。我認為這正是將會發生的事情。因此，第二個成長驅動力實際上是精實轉型帶來的更好的績效和為客戶提供的差異化服務。

And the third, and it's really more of a distant third is the cost advantage that comes from the process of lean and driving out labor and energy and waste and all those things.

第三個，實際上距離第三個更遙遠的是成本優勢，它來自精益過程，消除勞動力、能源和浪費以及所有這些東西。

Rosemarie Morbelli, Gabelli Funds.

羅斯瑪麗·莫貝利，Gabelli 基金。

Thank you. Good morning, everyone. I was wondering if I could follow up on that $1 billion of proceeds from upcoming divestitures in 2025, could you share with us more or less the potential impact on your top line and EBITDA line from those businesses going out?

謝謝。大家早安。我想知道我是否可以跟進 2025 年即將進行的剝離所帶來的 10 億美元收益，您能否與我們分享一下這些業務剝離對您的營收和 EBITDA 線的潛在影響？

Thank you, Rosemarie. I think the revenue of those as a bucket is --

謝謝你，羅斯瑪麗。我認為這些作為一個桶子的收入是--

I think half range. Yes, I think you can do the math that Kevin just mentioned about proceeds divided by about our multiple. We'll get the EBITDA impact. And as Kevin pointed out earlier, the margins are slightly lower but not meaningful.

我認為是半程。是的，我想你可以計算凱文剛才提到的收益除以我們的倍數。我們將得到 EBITDA 的影響。正如凱文之前指出的，利潤率略低，但沒有意義。

So, I think if you do that math, that will give you the both the EBITDA and revenue impact depending on the level of proceeds you want to assume. But again, as Kevin said, we've put out a target of $1 billion but our -- the target portfolio list would drive a result better than that if we're able to execute all of them.

因此，我認為如果你進行數學計算，就會根據你想要假設的收益水準得出 EBITDA 和收入影響。但正如凱文所說，我們已經提出了 10 億美元的目標，但如果我們能夠執行所有這些目標，我們的目標投資組合清單將帶來比該目標更好的結果。

And should we assume that all of those potential businesses are small and are split around your different segments?

我們是否應該假設所有這些潛在業務都很小並且分佈在不同的細分市場？

Yes. So, they are the target list includes businesses from multiple reporting segments.

是的。因此，他們的目標清單包括來自多個報告部門的企業。

That is helpful. And if I may ask one last question. You are working on efficiencies. You are working on eliminating volatility. You have 200 facilities you pointed out. Do you need to handle facilities, should we add facility consolidation as part of your improvement program?

這很有幫助。我可以問最後一個問題嗎？您正在努力提高效率。您正在努力消除波動性。您指出了 200 個設施。您是否需要處理設施，我們是否應該將設施整合作為您改善計劃的一部分？

Yes. Our cost improvement program certainly is contemplating additional rationalization of facilities. We've completed a number of those this year. We will complete a number of those next year. As lean accelerates, it should give us further opportunities to drive a more efficient footprint.

是的。我們的成本改進計劃當然正在考慮進一步合理化設施。今年我們已經完成了其中的一些工作。明年我們將完成其中一些。隨著精實化的加速，它應該為我們提供更多機會來推動更有效率的足跡。

And this ends the Q&A session for today. I will turn it back to management for closing remarks.

今天的問答環節到此結束。我會將其轉回給管理層以供結束語。

Just thank you to everyone for your interest and participation today. We're very excited about the future of Berry as we close out our fiscal year this quarter that we're in, and we're really encouraged with what we see developing for '25. So, thank you very much.

感謝大家今天的關注與參與。我們對 Berry 的未來感到非常興奮，因為我們本季的財年即將結束，我們對 25 年的發展感到非常鼓舞。所以，非常感謝。

And with that, we thank you all for participating in today's conference. You may now disconnect.

在此，我們感謝大家參加今天的會議。您現在可以斷開連線。