切遲杜威 (CHD) 2026 Q2 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to the Church & Dwight second-quarter 2026 earnings conference call. (Operator Instructions)

各位好。感謝各位加入，歡迎參加 Church & Dwight 2026 年第二季財報電話會議。(接線員指示)

I will now hand the conference over to Mr. Rick Dierker, President and Chief Executive Officer of Church & Dwight. Please go ahead, sir.

我現在把會議交給 Church & Dwight 總裁兼執行長 Rick Dierker 先生。先生，請開始。

Thank you. Good morning, everyone. Thanks for joining the call. We had a strong second quarter and first half, and I want to start by thanking all of our Church & Dwight employees all around the world for executing so well in a challenging environment. I'll begin with some thoughts on the broader environment and then a review of our Q2 results. And then I'll turn the call over to Lee McChesney, our CFO, and when Lee is done, we'll open it up for questions.

謝謝。各位早安。感謝加入本次電話會議。我們第二季與上半年表現強勁；我想先感謝全球所有 Church & Dwight 員工，在充滿挑戰的環境中仍能出色執行。我將先談談整體大環境，接著回顧我們第二季的業績。然後我會把電話交給我們的財務長 Lee McChesney；Lee 講完後，我們將開放提問。

Starting with the broader environment. Conditions remain dynamic. However, our categories are growing ahead of our original expectations, and Church & Dwight is growing even faster. Consumer spending remains resilient. Our teams are executing with excellence, and we remain focused on offering high-quality solution-oriented products to consumers the right value. Our brands continue to perform exceptionally well, driving a second straight quarter of industry-leading organic sales growth.

先從整體環境談起。情勢仍然多變。不過，我們所處的品類成長優於原先預期，而 Church & Dwight 的成長更快。消費支出仍具韌性。我們的團隊以卓越執行力推進工作，我們也持續專注於為消費者提供高品質、以解決方案為導向、且具適當價值的產品。我們的品牌持續表現出色，帶動連續第二季達成業界領先的有機銷售成長。

Turning to the quarter. Net sales increased 1.6%, which was ahead of our outlook. And organic sales grew 5.8%, almost 6%, well above our 3% outlook. This growth was broad-based across all three divisions and was primarily driven by volume growth of 4.3% and positive price/mix of 1.5%. Adjusted gross margin was 45.4%, up 40 basis points, and adjusted EPS was $0.89, above our $0.88 outlook.

回到本季表現。淨銷售額成長 1.6%，優於我們的展望。有機銷售成長 5.8%，接近 6%，明顯高於我們 3% 的展望。這項成長在三大事業部皆有貢獻，主要由 4.3% 的銷量成長，以及 1.5% 的正向價格/組合所帶動。調整後毛利率為 45.4%，提升 40 個基點；調整後 EPS 為 0.89 美元，高於我們 0.88 美元的展望。

Overall, this is a great result. And with the first half of the year behind us, it gives us great confidence to raise our sales, EPS and cash flow outlook for the full year. In Q2, we also completed the acquisition of the fast-growing Miss Mouth brand the number one stain remover brand on Amazon. We're encouraged by the strong initial sales results from the brand since the June acquisition.

整體而言，這是一個非常好的結果。隨著上半年已經結束，這讓我們更有信心上調全年銷售、EPS 與現金流的展望。第二季我們也完成了對快速成長的 Miss Mouth 品牌之收購；該品牌是 Amazon 上排名第一的去漬劑品牌。自 6 月收購以來，該品牌初期銷售表現強勁，令我們備受鼓舞。

And I'm especially excited about the growth opportunities for Miss Mouth over the next 12 to 18 months. In the second quarter, Miss Mouth consumption grew over 50% and gained almost 3.5 share points. And we think this is just the beginning as household penetration for the brand is currently just 2.5%.

我也特別期待 Miss Mouth 在未來 12 到 18 個月的成長機會。第二季 Miss Mouth 的消費量成長超過 50%，市占率提升近 3.5 個百分點。我們認為這只是開始，因為該品牌目前的家庭滲透率僅 2.5%。

Compared to the category, which is 50%. Additionally, ACV for Miss Mouth is only 35% compared to 80% for the category, which again indicates plenty of room to run on distribution. Innovation and distribution gains remain a significant competitive advantage for Church & Dwight. They were a major contributor to our industry-leading growth. We're confident that our relentless focus on innovation will continue to drive strong growth, distribution gains at shelf and market share expansion.

相較之下，該品類為 50%。此外，Miss Mouth 的 ACV 只有 35%，而品類為 80%，這再次顯示在通路鋪貨方面仍有很大成長空間。創新與通路鋪貨的提升，仍是 Church & Dwight 重要的競爭優勢。這也是我們達成業界領先成長的主要貢獻因素。我們有信心，對創新的不懈專注將持續帶動強勁成長、貨架端的通路鋪貨提升，以及市占率擴張。

New product launches this year are expected to account for about half of our organic growth as we innovate in key categories across the portfolio. Consumption across our largest categories grew at 2.7% in the second quarter, which exceeded our category growth expectations of around 2%.

我們預期今年的新產品上市將貢獻約一半的有機成長，因為我們在產品組合的關鍵品類持續創新。第二季我們最大幾個品類的消費量成長 2.7%，高於我們對品類成長約 2% 的預期。

Now I'm going to turn my comments to each of the three divisions. First up is the US business. Domestic organic sales increased 5.1% with sustained growth in both of our household and personal care portfolios. Growth was driven by volume and favorable price mix with strong performance from Therabreath mouthwash and toothpaste, Hero, ARM & HAMMER Cat Litter and Zicam.

接下來我將針對三大事業部逐一說明。首先是美國業務。美國本土有機銷售成長 5.1%，我們的家用與個人護理產品組合皆維持成長動能。成長由銷量與有利的價格組合所帶動，其中 Therabreath 漱口水與牙膏、Hero、ARM & HAMMER 貓砂以及 Zicam 表現強勁。

The ARM & HAMMER brand had another quarter of growth with laundry maintaining record shares across total laundry. ARM & HAMMER laundry detergent consumption and category consumption grew about 1% in the quarter despite a step-up in competitive promotions and a lower level for ARM & HAMMER. The value segment of laundry continues to grow.

ARM & HAMMER 品牌本季再度成長，洗衣品類在整體洗衣市場維持創新高的市占率。儘管競品促銷力度提升，且 ARM & HAMMER 的促銷水準較低，ARM & HAMMER 洗衣精的消費量與品類消費量在本季仍約成長 1%。洗衣的超值（value）區隔持續成長。

Next step is Cat Liter. Continued fantastic results as ARM & HAMMER cat litter consumption grew a robust 7.5% and share increased 0.8 points to reach [24.5]. While category promotional levels declined slightly, they remain at historically high levels. ARM & HAMMER, Cat Litter launched dual defense Microban clubbing letter earlier this year, and that launch continues to do very well. Hero and Therabreath continue to contribute considerably to overall performance.

下一個是貓砂。持續繳出極佳成果，ARM & HAMMER 貓砂消費量強勁成長 7.5%，市占率提升 0.8 個百分點至[24.5]。雖然品類促銷水準略有下降，但仍處於歷史高檔。ARM & HAMMER 貓砂今年稍早推出 Dual Defense Microban clumping litter，該新品上市後持續表現非常好。Hero 與 Therabreath 也持續對整體表現做出顯著貢獻。

Therabreath achieved another quarter of record share gains, jumping 4.5 points to a 25.3% share and further solidified our number two position in total mouthwash. Even with that growth, household penetration remains relatively low at only 14% compared to the mouthwash category of 65%. Our Therabreath toothpaste launch continues to perform well and it's still early in the launch.

Therabreath 再度創下單季市占率增幅新高，市占率躍升 4.5 個百分點至 25.3%，並進一步鞏固我們在整體漱口水市場的第二名地位。即便有此成長，家庭滲透率仍相對偏低，僅 14%，相較之下漱口水品類為 65%。我們的 Therabreath 牙膏上市持續表現良好，目前仍處於上市初期。

It's off to a great start with a 1 point share in total toothpaste despite only just fully entering brick-and-mortar in the last several months. [Pure]consumption outpaced the patch category and with the cleanser launched just starting now, we're confident in hero continuing to gain share in total acne. Facial cleansers represent a $650 million category and accounts for approximately 30% of the total acne category. Lots of runway as Hero has, again, relatively low household penetration at 10% compared to the category of 30%, which gives us confidence in the continued growth of this brand.

開局非常亮眼：儘管在過去幾個月才剛全面進入實體通路，仍在整體牙膏市場取得 1 個百分點的市占率。[Pure] 的消費量成長超越痘痘貼片品類；而隨著潔面產品剛開始上市，我們有信心 Hero 將持續在整體痘痘護理市場提升市占率。臉部潔面產品是一個 6.5 億美元的品類，約占整體痘痘護理品類的 30%。成長空間仍大；Hero 的家庭滲透率同樣相對偏低，為 10%，而品類為 30%，這讓我們對該品牌的持續成長更具信心。

For Touchland, sales grew in the second quarter and with back half weighted innovation, new collaborations and activations, we expect continued sales growth in the second half of the year. Looking forward further, our international expansion, our innovation categories and future distribution opportunities continue to give us confidence in this brand as we look to 2027. Global e-comm was once again a strong contributor Global e-commerce grew 22.7% in the second quarter, and global online sales now represent 25.5% of total consumer.

至於 Touchland，第二季銷售成長；隨著下半年以創新為主軸，並推出新的合作與行銷活動，我們預期下半年銷售將持續成長。再往前看，國際擴張、創新品類以及未來的通路機會，持續讓我們在展望 2027 年時對該品牌充滿信心。全球電商再次成為強勁的貢獻來源：第二季全球電商成長 22.7%，目前全球線上銷售占總消費者銷售的 25.5%。

Turning to international. Q2 is another great success with our international business delivering organic sales growth 9.1%, driven by higher volume and favorable price mix. Our great international brands are leading to share gains and growth that outpaced local countries GDP.

接著談國際業務。第二季再次大獲成功，國際業務有機銷售成長 9.1%，由更高的銷量與有利的價格組合所帶動。我們優秀的國際品牌帶動市占率提升，且成長速度超越各當地國家的 GDP。

In addition, our recent US acquisitions are paying dividends across the world in a big way. where brands like Hero and Therabreath are driving outsized growth. Our ability to scale brands to so many countries so quickly is getting better and better. Overall, our international team is executing very well. Our Specialty Products division also performed well. We're getting sales growth of 2.8% due to a combination of higher volume and higher price and product mix.

此外，我們近期在美國的收購也在全球範圍內以顯著方式帶來回報，例如 Hero 與 Therabreath 等品牌正帶動超額成長。我們將品牌快速擴展到眾多國家的能力正持續提升。整體而言，我們的國際團隊執行得非常出色。我們的特殊產品事業部表現也不錯。在銷量提升以及價格與產品組合提升的共同帶動下，銷售成長 2.8%。

I'll close by saying that we were very pleased with the great first half. The benefits of our strategic actions in 2025 are enabling greater focus on our growth initiatives. I am especially pleased with the time the entire organization is spending focused here on the future. Momentum is building. The category works surrounding ARM & HAMMER, our acceleration plans for oral care behind Therabreath and the pipeline for M&A within the international business are just a few examples.

最後我想說，我們對上半年優異的表現感到非常滿意。我們在2025年的策略性行動所帶來的效益，使我們能更聚焦於成長計畫。我尤其高興的是，整個組織投入大量時間把焦點放在未來。動能正在累積。圍繞ARM & HAMMER的品類工作、以Therabreath為核心的口腔護理加速計畫，以及國際業務中的併購（M&A）管線，這些都只是幾個例子。

I'll provide a detailed update in early 2027. But I'll say more, but I will say I'm more optimistic about the future than I've ever been. I'm also very proud of our Church & Dwight as we continue to execute well in a volatile environment.

我會在2027年初提供更詳細的更新。不過我還想補充，我對未來的樂觀程度前所未有。同時，我也為我們的Church & Dwight感到非常自豪，因為我們在波動的環境中仍持續良好執行。

And with that, I'll turn the call over to Lee for more detail in the quarter.

接下來，我把電話交給Lee，請他就本季提供更多細節。

Thank you, Rick, and good day, everyone. We appreciate you joining the call. As we now enter the second half of the year, we are encouraged with the results fueled by innovation and share growth, which provides us the momentum to deliver strong Church & Dwight Evergreen model results.

謝謝你，Rick，各位大家好。感謝各位參與本次電話會議。隨著我們進入下半年，我們對由創新與市占成長所帶動的成果感到振奮，這也為我們帶來動能，以交出強勁的Church & Dwight Evergreen模型成果。

The second quarter demonstrates the strength of our portfolio of categories, our leading levels of innovation and the execution capabilities of our teams around the globe. Similar to Rick, I also want to recognize our teams across the globe for their focus and execution this past quarter. Very well done.

第二季展現了我們品類組合的實力、領先水準的創新，以及全球團隊的執行能力。和Rick一樣，我也想肯定全球各地團隊在本季的專注與執行。做得非常好。

Let's get into the details. We'll start with EPS. Second quarter EPS -- adjusted EPS was $0.89, exceeding our outlook of $0.88, stronger-than-expected sales and continued gross margin improvement fueled our results and enabled increased investments in our brands. Organic sales in the second quarter grew 5.8%, well above our outlook of approximately 3%. And growth was broad-based across the business and primarily volume driven, with volume growth of 4.3% and positive pricing and mix of 1.5%.

我們進入細節。先從EPS開始。第二季EPS——調整後EPS為0.89美元，優於我們0.88美元的展望；優於預期的銷售表現與持續的毛利率改善推動了成果，並使我們得以增加對品牌的投資。第二季有機銷售成長5.8%，明顯高於我們約3%的展望。成長在整體業務中相當廣泛，且主要由銷量帶動：銷量成長4.3%，定價與產品組合（mix）帶來1.5%的正向貢獻。

Our Power Brands once again gained share fueled by well-received innovation and a robust distribution wins with our commercial partners. Strong organic growth and the contributions from our acquisitions more than offset the impact of our 2025 business exits and led to reported net sales growth of a positive 1.6% in the quarter, ahead of our expectations.

我們的Power Brands在廣受好評的創新以及與商業合作夥伴取得強勁通路勝利的帶動下，再次提升市占。強勁的有機成長與併購貢獻，足以抵銷我們2025年退出部分業務的影響，使本季公告淨銷售成長1.6%，優於我們的預期。

Let's now turn to gross margin. Our second quarter adjusted gross margin was 45.4%, an increase of 40 basis points versus last year. Our results were driven by 150 basis points from productivity programs, 110 basis points from our higher-margin acquisitions, combined with the impact of our successful portfolio actions and 180 basis points from the combination of volume, price and mix.

接著看毛利率。第二季調整後毛利率為45.4%，較去年增加40個基點。成果主要來自：生產力計畫貢獻150個基點、較高毛利的併購貢獻110個基點，加上成功的產品組合調整行動的影響，以及銷量、價格與組合共同帶來180個基點。

These factors offset the headwinds from inflation, tariffs and transportation of 400 basis points. We continue to invest in our brands in the second quarter as the marketing expense was $165 million, up $8.2 million or 40 basis points versus last year.

上述因素抵銷了通膨、關稅與運輸帶來的400個基點逆風。我們第二季持續投資品牌，行銷費用為1.65億美元，較去年增加820萬美元或40個基點。

And similar to our strategy in past quarters, when our sales and gross margin results exceed our original expectations, we will utilize those opportunities to invest in our brands. Adjusted SG&A was $241.4 million or 15.8% of net sales, a 220 basis point increase versus the prior year. As we've noted in our 2026 outlook, SG&A in the first half of the year is primarily growing to the inclusion of Touch lands SG&A and amortization expense. Adjusted other expense increased by $9.2 million due to the lower interest income compared to last year.

並且如同過去幾季的策略，當銷售與毛利率表現超出原先預期時，我們會把握機會加大對品牌的投資。調整後SG&A為2.414億美元，占淨銷售15.8%，較去年增加220個基點。如我們在2026年展望中所提到，上半年SG&A的成長主要來自納入Touch lands的SG&A與攤銷費用。調整後其他費用因利息收入較去年降低而增加920萬美元。

Let's now turn to cash flow. Cash flow remains a significant strength of the company. And for this first six months of 2026, cash from operations was $462 million, an increase of 10.8% versus the prior year as we delivered improved cash earnings and executed disciplined working capital results. Capital expenditures were $61.8 million in the first half, and we continue to expect full year capital expenditures of approximately $130 million or roughly 2% of sales.

接著看現金流。現金流仍是公司的重要優勢。2026年前六個月，營運活動現金流為4.62億美元，較去年增加10.8%，因我們提升現金獲利並以紀律執行營運資金管理。上半年資本支出為6,180萬美元，我們仍預期全年資本支出約為1.3億美元，約占銷售額2%。

Let's now turn our outlook to the outlook for 2025. And as detailed in our press release this morning, we are increasing our sales, earnings per share and cash flow outlook despite the challenging macro environment. This improvement reflects the strength of our operating fundamentals, which is led by volume-based organic growth, steady market share gains and management's focus on gross margin expansion.

接著看我們對2025年的展望。如同今天早上新聞稿所述，儘管宏觀環境具挑戰性，我們仍上調銷售、每股盈餘與現金流展望。此改善反映我們營運基本面的強勁，主要由以銷量為基礎的有機成長、穩健的市占提升，以及管理層對毛利率擴張的聚焦所帶動。

Our outlook continues to reflect the impact of transitory cost pressures that developed over the past 100 days. Our latest outlook of approximately $30 million reflects raw materials, transportation costs and various premiums resulting from the conflict in the Middle East. And this outlook assumes a crude oil price of approximately $9 a barrel. Our teams have acted to fully mitigate this headwind this year through increased productivity.

我們的展望仍反映過去100天出現的短期成本壓力影響。我們最新展望約3,000萬美元，涵蓋原物料、運輸成本，以及因中東衝突所產生的各項溢價。此外，此展望假設原油價格約為每桶9美元。我們的團隊已透過提升生產力，在今年完全抵銷這項逆風。

And separately, on a positive note, we expect to receive approximately $15 million of Phase 2 tariff refund benefits during the second half of 2026. We will invest these proceeds in primarily customer consumer-facing business activities. We are raising our full year organic sales outlook to approximately 4% to 5%, up from the prior outlook of 3% to 4%.

另外，正面消息是，我們預期在2026年下半年可收到約1,500萬美元的第二階段關稅退稅利益。我們將把這些款項主要投入於面向客戶與消費者的業務活動。我們將全年有機銷售展望上調至約4%至5%，高於先前的3%至4%。

The improved outlook reflects the strong first half execution and the continued momentum across the portfolio during the second half of 2026. And we now expect to adjust gross margin expansion of approximately 100 to 120 basis points for the year.

展望上調反映上半年強勁的執行力，以及2026年下半年整體產品組合持續的動能。我們目前預期全年調整後毛利率擴張約100至120個基點。

And marketing investments is now expected to be at or above 11% of sales as we invest behind our brands and continue supporting our growth initiatives. We are raising our adjusted EPS outlook to a growth rate of 6% to 8% and versus our prior expectation of 5% to 8%. And we also now expect cash from operations of approximately $1.175 billion, up from $1.15 billion.

行銷投資目前預期將達到或高於銷售額的11%，以支持我們的品牌並持續推動成長計畫。我們將調整後EPS展望上調至成長6%至8%，高於先前預期的5%至8%。我們也將營運活動現金流預期上調至約11.75億美元，高於11.5億美元。

And turning to the third quarter. we expect organic growth -- sales growth of approximately 3% and an adjusted EPS of approximately $0.89 per share, representing approximately 10% growth versus the prior year while we also invested approximately 12% rate of marketing as a percentage of sales.

再看第三季，我們預期有機成長——銷售成長約3%，調整後EPS約為每股0.89美元，較去年約成長10%，同時我們也將以銷售額約12%的比率投入行銷。

So to conclude, we are very pleased with our first half performance and are confident in our ability to deliver our improved outlook for the balance of 2026. Our portfolio remains strong. Our brands continue to gain share, and our teams are executing well in a dynamic environment.

總結來說，我們對上半年表現非常滿意，並對在2026年剩餘期間達成上調後展望充滿信心。我們的產品組合依然強勁。我們的品牌持續提升市占，而我們的團隊在多變的環境中執行良好。

Operator, we are now ready for questions.

接線員，我們現在準備開始提問。

(Operator Instructions)

（接線員指示）

Rupesh Parikh, Oppenheimer.

Rupesh Parikh，Oppenheimer。

Good morning. Thanks for taking my question. Congrats on a nice quarter. So just going back to the organic sales growth delivery for the quarter. Just curious, at a high level, what are some of the areas that drove the significant upside that we saw on that line item?

早安。謝謝讓我提問。恭喜本季表現不錯。我想回到本季有機銷售成長的達成情況。想請教整體而言，是哪些領域帶動了我們在這個項目上看到的顯著超預期表現？

Yes. Thanks, Rupesh. The good news is it was pretty broad-based. But as we said in the release, I think Therabreath, Cat Litter, I'd say, ARM & HAMMER laundry was kind of flattish. Anything else you would add, Lee?

是的。謝謝你，Rupesh。好消息是，成長相當廣泛。不過如同我們在新聞稿中所說，我認為Therabreath、貓砂；另外，ARM & HAMMER洗衣品類大致持平。Lee，你還有要補充的嗎？

So I think as Rick said, it's pretty broad-based. Home care, personal care across the globe, really good to see international at 9% as well, and that was pretty broad-based across both Europe and Asia and Latin America as well.

所以我認為如 Rick 所說，這是相當廣泛的成長。居家照護、個人照護在全球各地表現都很好，也很高興看到國際市場同樣達到 9%，而且在歐洲、亞洲以及拉丁美洲等地都是相當廣泛的成長。

Okay. Great. And then my follow-up question, just on the Miss Mouth acquisition. It sounds like very strong consumption that you guys are seeing right now. But as we look out the next couple of years, is -- I know you guys talked about this business growing double digits. But is there any more granularity you can give in terms of the types of growth rates you expect for the business?

好的。很好。接著我的追問是關於 Miss Mouth 的收購。聽起來你們目前看到的消費力道非常強。但展望未來幾年，我知道你們提到這個業務會有雙位數成長。不過就你們對該業務預期的成長率類型而言，能否提供更細的資訊？

Yes. I think it's a little early to do that. I mean we just bought it in June, early June. I would say a lot of work is going on to integrate and then accelerate this business. And I don't think we've been more excited about an acquisition in a long time.

是的。我認為現在談這個還稍早。我們是在 6 月、6 月初才剛買下來。我會說目前有很多工作正在進行，以完成整合並加速這項業務。而且我認為我們已經很久沒有對一項收購這麼興奮了。

There's five individuals that came over. They've talked right into our Fabric Care business. We know Fabric Care really, really well. And retailers, our internal sales force are clamoring for this brand. So it's already at a 13 share at a major retailer, and it's only been there for a few months as one example.

有五位成員加入了我們。他們直接併入我們的衣物護理（Fabric Care）事業。我們非常、非常了解衣物護理。而零售商以及我們內部的銷售團隊都在搶著要這個品牌。所以舉例來說，它在某家大型零售商那裡的市占已經到 13%，而且上架也才幾個月。

But I'd just go back to household penetration 3, it's 50 for the category. Probably the right time to talk about our North Star on growth ambitions is probably early 2027, but we think there's a lot of enthusiasm around this math.

不過我想回到家戶滲透率只有 3，而該品類是 50。我想談我們成長企圖的「北極星」目標，可能要到 2027 年初才是合適的時點，但我們認為大家對這個數字背後的邏輯非常有熱情。

Great. Thank you.

很好。謝謝。

Anna Lizzul, Bank of America.

Anna Lizzul，美國銀行。

Hi, good morning. Thank you so much for the question. I was wondering if you could comment on the success you're seeing across ARM & HAMMER Landry. I wanted to follow up on the fact that you mentioned in the beginning of this year where you surpassed tide original and wash load volumes? And where are you seeing now the share gains for ARM & Hammer across the value mid-tier and premium tiers.

嗨，早安。非常感謝讓我提問。我想請你們談談目前在 ARM & HAMMER 洗衣產品上看到的成功。我想追問一下，你們在今年年初提到洗滌量（wash load volumes）已經超越 Tide Original？另外，ARM & HAMMER 目前在超值、中階與高端各價位帶的市占提升，主要是在哪些地方看到的？

And then on the premium side for the brand, you touched on touched earlier in the call and the expansion to toothpaste with the rollout. I wanted to see how you're thinking about this expansion as we move forward this year. Thank you.

另外在品牌的高端面向，你們在電話會議前面也提到並談到擴展到牙膏、以及上市鋪貨。我想了解你們如何看待今年接下來推進這項擴張。謝謝。

Yes. Anna on your second one, are you talking about TheraBreath? Or are you talking about touch?

是的。Anna，你第二個問題是指 TheraBreath 嗎？還是你是指 touch？

Sorry, TheraBreath, you're right.

抱歉，是 TheraBreath，你說得對。

Well, on laundry, look, laundry in general, -- the good news or really the great news is despite a significant increase in promotion. I'd say we're back to historical levels of promotion and laundry. The category was up 200 basis points. Henkel was up 1,100 basis points and Procter was up almost 200 basis points as well. Church & Dwight was down 300 basis points on promotion. And so despite that, the value segment grew, and we maintained our share.

好，關於洗衣品類，整體來看——好消息，或者說非常好的消息是，儘管促銷大幅增加，我會說洗衣品類的促銷已回到歷史水準。該品類促銷上升了 200 個基點。Henkel 上升了 1,100 個基點，寶僑（Procter）也上升了將近 200 個基點。Church & Dwight 的促銷則下降了 300 個基點。即便如此，超值（value）區隔仍然成長，而我們也維持了市占。

So just the world we live in these days, ARM & HAMMER is so well positioned for growth. there's a lot of couponing that happens off of the off channel as well, and our competitors are spending on couponing, of course, as well.

所以在我們如今所處的環境下，ARM & HAMMER 的成長定位非常好。線下通路（off channel）也有很多折價券（couponing）活動，而我們的競爭對手當然也在折價券上投入。

So ARM & HAMMER to hold share in an environment like that is fantastic. Over time, we'll make sure that we're at historical levels of promotion as well. So a lot of optimism on ARM & HAMMER laundry, especially behind our innovations. Like we have a good, better, best strategy, and I'd say each of those tiers within laundry are doing well. Even our sheets as TiVo launches, and take shelf space and money behind it.

因此，ARM & HAMMER 能在那樣的環境中守住市占非常了不起。隨著時間推進，我們也會確保促銷回到歷史水準。所以我們對 ARM & HAMMER 洗衣非常樂觀，尤其是有我們的創新作為後盾。我們採取 good、better、best 的策略，而我會說洗衣品類中各個價位帶的表現都不錯。甚至我們的洗衣片（sheets），隨著 TiVo 上市，並取得貨架空間與行銷資源的支持。

We're the number two player in the sheet space. So our sheets are up 30% as well, and we're going along for the ride, which is great. So that's on ARM & HAMMER Laundry. On Therabreath, I would say, again, number two mouthwash, lots of runway. Consumption grew at 20% plus. We grew 4.5 share points to 25%. We're less than 1,000 basis points from the market leader who's Listerine.

我們在洗衣片（sheet）這個品類空間是第二大玩家。所以我們的洗衣片也成長了 30%，我們也順勢受惠，這很棒。以上是 ARM & HAMMER 洗衣。至於 TheraBreath，我會說，同樣地，它是第二大漱口水品牌，還有很長的成長跑道。消費量成長超過 20%。我們的市占提升了 4.5 個百分點到 25%。距離市場領導者李施德霖（Listerine）不到 1,000 個基點。

Our household penetration is still relatively low at 14 compared to the category at 65. That is enabling us to go into other parts of oral care like toothpaste, like we never deserved the space that we got for Therabreath toothpaste, but because of the success of the mouthwash, we got some premium great shelf space.

我們的家戶滲透率仍相對偏低，只有 14，而該品類是 65。這讓我們得以進入口腔護理的其他領域，例如牙膏；坦白說，TheraBreath 牙膏原本不太「配得上」拿到那麼多貨架空間，但因為漱口水的成功，我們拿到了一些高端且很好的陳列位置。

And as a result, we have a great brand with a great value proposition on fresh breath and cleaning. -- and it's doing extremely well, and it's already at one share point. So I couldn't be more optimistic about our oral care franchise behind Therabreath.

因此，我們擁有一個很強的品牌，並在清新口氣與清潔方面具備很好的價值主張——而且表現非常好，目前市占已經到 1 個百分點。所以我對以 TheraBreath 為核心的口腔護理事業群再樂觀不過。

Great. Thank you so much. Very helpful.

很好。非常感謝。很有幫助。

Chris Carey, Wells Fargo Securities.

Chris Carey，富國銀行證券。

Okay, great. Sorry about that. So I wanted to start with the oral care portfolio and specifically the TheraBreath rollout. You said that you're getting more than your fair share out of the gate. I wanted to -- I was wondering how you think you're tracking relative to the ambitions that you outlined at the Investor Day, I think it was an incremental $0.5 billion.

好的，很好。抱歉剛剛那樣。我想先從口腔護理產品組合、特別是 TheraBreath 的鋪貨推廣談起。你提到一開始你們拿到的份額超過「合理份額」（more than your fair share）。我想請問——你們認為目前的進度相較於投資人日所提出的目標如何？我記得是額外增加 5 億美元。

Do you feel like you're starting out stronger than expected? And was that shipment for that launch, a bit stronger in the quarter than perhaps what you anticipated. I was surprised you didn't call out some of the key drivers of organic sales. Is that something that we should be mindful for going forward, given the quite robust personal care implied organic sales number this quarter? And I have a follow-up.

你覺得起步是否比預期更強？另外，這次上市的出貨（shipment）在本季是否也比你們原先預期更強一些？我有點意外你們沒有特別點出有機銷售（organic sales）的關鍵驅動因素。考量到本季個人護理隱含的有機銷售數字相當強勁，這是否是我們未來需要留意的事項？我還有一個追問。

Yes. Therabreath pace is off to a good start is what I would say. And it's meeting or slightly beating our expectations. I think there's a lot of great conversations in the works with additional retailers to get behind it, which is fantastic. Those conversations are easier when you have a Therabreath mouthwash brand and business that's just, again, growing so fantastically well. So yes, I mean for the quarter, Therabreath Pace was a contributor to net sales for sure. I did it over deliver a little bit, maybe some.

是的。我會說 TheraBreath 的推進速度（pace）有一個不錯的開局。而且符合或略優於我們的預期。我認為我們正在與更多零售商進行非常好的洽談，讓他們一起支持這個品牌，這很棒。當你擁有一個 TheraBreath 漱口水品牌與業務，而且再次強調，它成長得非常出色時，這些洽談就更容易。所以是的，就本季而言，TheraBreath 的推進確實對淨銷售有所貢獻。它確實有稍微超出一點點，可能有一些。

What was the other -- the other part of the question, Chris?

Chris，問題的另一部分——你剛剛另一個部分是什麼？

I think that was about it. It's starting stronger than you expected. It's early days, and it was a bit of a contributor a bit more than expected in Q2, if I heard all that correctly. Just interrupt me if...

我想大概就是這樣。它的起步比你預期的更強。現在還在初期階段，如果我沒聽錯的話，第二季它的貢獻也比預期稍微多一些。如果我說錯了就打斷我……

Yes. Yes. And you really had asked in terms of the growth initiatives, it's kind of early to talk about how it's doing for the first the growth initiatives laying the groundwork is what I would say, not just in oral care, but all the ARM and HAMMER stuff, too. But that groundwork and the momentum that we're starting to build is fantastic.

是的。是的。而你問到成長計畫的進展，就目前來說還有點早，第一階段主要是在打基礎——我會這麼說——不只是口腔護理，還包括所有 ARM & HAMMER 的相關業務。但這些基礎工作，以及我們開始建立的動能，都非常棒。

Okay. The second question is, I think this is one of the highest inflation numbers that we've seen over the past four years or so. How quickly did that develop for you? Was that freight and logistics inflation that happened quicker than you anticipated? And should we be expecting about that kind of number as we go through the rest of the year with that Q2 more of an anomaly.

好的。第二個問題是，我認為這是我們過去四年左右看到的最高通膨數字之一。對你們來說，這是多快形成的？是運輸與物流的通膨比你們預期更快發生嗎？而我們是否應該預期今年剩餘時間也會維持這樣的水準，還是第二季比較像是異常值？

And I'm also struck just by a bit stronger price mix contribution to both top line and gross margin. Is there a bit of a step change in thinking about how you're going to be covering inflation this year with pricing? Or is there a bit of mix dynamic in that number as well? Thank you.

另外我也注意到，價格/組合（price mix）對營收與毛利率的貢獻都稍微更強。你們今年在用定價來覆蓋通膨的思維上，是否出現某種「階躍式」的改變？或者這個數字也包含一些產品組合變化的動態？謝謝。

Yes. Good morning, Chris. So keep in mind, when we talked about the $25 million to $30 million of kind of Middle East derived inflation, our outlook in 2Q said it was going to be higher in 2Q. There is some transportation costs that were going to happen right away, and then you get time to respond to it. Our productivity issues that we we kicked off accelerated to mitigate that. We definitely would be more back half.

是的。早安，Chris。請記得，當我們談到約 2,500 萬到 3,000 萬美元、某種程度上源自中東的通膨時，我們在第二季的展望就說過第二季會更高。有一些運輸成本會立刻發生，之後你才有時間去因應。我們啟動的生產力改善措施也加速推進以緩解影響。我們確實會更偏向在下半年改善。

But -- so it's a combination of two things. That number should drop down because there's just some anomalies in the second quarter. And then we have essentially more productivity in the back half. So we have this outlook of 100 to 120 basis points of gross margin improvement. You can see where we are halfway through the year. That implies that the gross margin will expand over 100 basis points in the back half of the year.

不過——所以這是兩件事的組合。那個數字應該會下降，因為第二季有一些異常因素。而且我們在下半年基本上會有更多的生產力提升。因此我們維持毛利率改善 100 到 120 個基點的展望。你可以看到我們上半年走到哪裡。這意味著下半年毛利率將擴張超過 100 個基點。

On the price volume mix, that's a good number. Obviously, we always say never overreact to one quarter. The first quarter was just slightly negative. Our mindset is to drive volume growth, and we do drive positive mix -- that's part of our algorithm. And then remind you, this year, we do have the benefit of the portfolio actions that help as well, and that will be a benefit all year.

至於價格/銷量/組合（price volume mix），那是一個不錯的數字。當然，我們一向說不要對單一季度過度反應。第一季其實只是小幅為負。我們的思維是推動銷量成長，同時我們也會帶來正向的組合——那是我們模型的一部分。另外提醒你，今年我們也受惠於投資組合調整（portfolio actions），這也會在全年帶來助益。

Yes. And I'd probably say in the quarter, we don't spend as much on promotion on laundry, that helps. Year-over-year a little bit on the price side of Intel.

是的。我可能會說，就本季而言，我們在洗衣品類的促銷投入沒那麼多，這有幫助。在價格面上，相較去年也有一點來自 Intel 的影響。

Okay, great. Thank you.

好的，很棒。謝謝。

Bonnie Herzog, Goldman Sachs.

Bonnie Herzog，高盛。

Hi, thank you and good morning, everyone. All right. I just had a question on your improved outlook for the year. You took up your top line growth guidance by 1 point and now expect higher gross margins, and while you did raise the lower end of your EPS growth guidance, you did -- you kept the high end of the range. So I wanted to understand the drivers of that, and maybe how much further you plan to step up reinvestments to drive sustainable top line growth ahead Also, if you could provide some examples of these investments and any changes you might be making to your strategy given the pressured macro environment would be helpful. Thanks.

嗨，謝謝，大家早安。好的。我想問你們上調全年展望的問題。你們把營收成長指引上調了 1 個百分點，現在也預期更高的毛利率；同時你們也上調了 EPS 成長指引的下緣，但——你們維持了區間的上緣不變。所以我想了解背後的驅動因素，以及你們計畫在再投資上加碼多少，以推動可持續的營收成長。此外，如果你們能提供一些投資的例子，以及在宏觀環境承壓下策略上可能做的調整，會很有幫助。謝謝。

Yes. Thanks, Bonnie. It's a good question. I would say, look back at our track record over the last 1, 3, 5, 10 years, what do we do when we feel like we're over delivering and performing well against our expectations and against the industry as we tend to spend back. Like we could, in theory, beat the earnings and EPS in any one year, but we choose to spend more on marketing or we spend more on investments.

是的。謝謝，Bonnie。這是個好問題。我會說，回頭看我們過去 1、3、5、10 年的紀錄：當我們覺得自己超出交付、表現優於預期且優於產業時，我們通常會把錢再花回去。理論上，我們在任何一年都可能把獲利與 EPS 做得更高，但我們選擇在行銷上投入更多，或在投資上投入更多。

And so, we want to make sure that flywheel is going that virtuous cycle happens, and we keep gaining share in shelf space and support the innovations that we're launching. We -- so beyond marketing, we're also going to spend -- we've also started to spend money behind AI. And there's some initiatives we have in place. We're going to pull some of those forward as an example, so that we can scale faster. One of our core competencies, and I think competitive advantages is really our speed and agility. And so we're going to go try to adopt and adapt faster than most people.

因此，我們想確保飛輪持續轉動、良性循環發生，並且持續提升貨架佔有率，同時支持我們正在推出的創新。我們——所以除了行銷之外，我們也會投入——我們也已開始在 AI 方面投入資金。我們有一些計畫正在進行。舉例來說，我們會把其中一些計畫提前，以便更快擴大規模。我們的核心能力之一、我認為也是競爭優勢，就是速度與敏捷性。因此我們會嘗試比大多數人更快採用並調整。

Alright. Thank you for that. I will pass it on.

好的。謝謝你的說明。我把問題交給下一位。

Peter Grom, UBS.

Peter Grom，瑞銀。

Great. Thank you. Good morning, everyone. So you mentioned that consumption in your largest category, I think, grew 2.7% in the quarter, above your expectation for 2%. And -- so obviously, a lot of the moving pieces within the quarter itself. So kind of curious if you could speak to what you saw throughout the quarter and maybe more specifically the exit rate? And just kind of as you think about the back half of the year, what are you embedding in terms of cash flow growth?

很好。謝謝。各位早安。你們提到最大品類的消費量在本季成長 2.7%，高於你們原先預期的 2%。而且——顯然本季內有很多變動因素。所以想請你談談你們在整個季度中看到的情況，或更具體地說，季末的退出率（exit rate）如何？另外，當你們看下半年時，在現金流成長方面你們內含了哪些假設？

Yes. I mean the short answer is, we're still assuming around 2% for category growth. We continue to do better than that as you saw in the last couple of quarters. I think that's a good, in general, walking around number for a while. Our monthly consumption numbers in Q2 were just -- were fantastic.

是的。我的簡短回答是，我們仍然假設品類成長約 2%。如你在過去幾個季度看到的，我們持續做得比這更好。我認為這在一段時間內大致會是個合理的「走動數字」（walking around number）。我們第二季每月的消費數據非常——非常出色。

And June, was also good with the exception of laundry as we didn't repeat some promotions in laundry. Sometimes, we choose to do that. We also had a club promotion that we didn't do at the -- in the quarter as well. So I would say we did that fantastic growth without really with flattish impact from one of our larger businesses. So I'm just, again, consumption is going really well. Shares are doing really well.

而 6 月也不錯，唯一的例外是洗衣品類，因為我們沒有重複某些洗衣促銷。有時候我們會選擇這麼做。我們也有一個會員制通路（club）的促銷在——在本季也沒有做。所以我會說，我們在其中一個較大業務影響相對持平的情況下，仍然達成了非常亮眼的成長。因此我再說一次，消費表現非常好。市佔也表現非常好。

It's broad-based to my first answer to kind of Rupesh's question early on. So there are a lot of things that are going right. So this is the right time for us as a company, especially because we're not distracted with some of those businesses that we've sold, Peter. We had the time to focus in the future. And so we're laying the groundwork for those three growth initiatives that we've talked about again and again and again. So a lot of internal time is being spent in the future right now.

這是廣泛性的，呼應我一開始回答 Rupesh 問題時所說的。所以有很多事情都在往正確方向發展。因此對我們公司而言，現在是正確的時點，特別是因為我們不再被那些已出售的業務分散注意力，Peter。我們有時間把重心放在未來。因此我們正在為我們一再、一再、一再談到的三項成長計畫打基礎。所以目前有大量的內部時間都投入在未來。

That makes sense. And then Rick, you mentioned we're going to get some more color at a later date. But you did say that you were more optimistic than ever. And I guess just looking at the guidance on the 4Q implied would suggest a pretty nice momentum heading into next year. So maybe, putting that all together, can you maybe just discuss why you are as optimistic as you've ever been? And maybe what that means as it pertains to top and bottom line growth.

這很合理。接著，Rick，你提到我們之後會再提供更多細節。但你也說你比以往任何時候都更樂觀。而我想，單看第4季指引所隱含的走勢，似乎顯示出相當不錯的動能，將延續到明年。所以也許把這些綜合起來，你能否談談為什麼你會像現在這樣、比以往任何時候都更樂觀？以及這對營收與獲利成長（上、下線）意味著什麼。

Yes. I don't know if I'll go to top and bottom line growth yet. But I'll tell you like we're doing all this category working ARM & HAMMER. We're getting real consumer feedback. We're getting real good buy-in from some retailers on the ideas.

是的。我還不確定是否要先談到營收與獲利成長。但我可以告訴你，我們正在針對 ARM & HAMMER 做各品類的深耕工作。我們拿到真實的消費者回饋。我們也從一些零售商那裡，對這些想法獲得非常好的認同與支持。

We're making great progress on how and why they have a reason for being and have a right to win in a certain category. It's obvious why we're happy about TheraBreath and its success. And meanwhile, internationally, that brand, along with Hero is really developing a business of tens of millions of dollars. So there's good global expansion going on.

我們在釐清它們為何存在、以及為何在特定品類中有其存在理由並具備勝出權（right to win）方面，進展非常好。我們對 TheraBreath 及其成功感到高興，原因也很明顯。同時在國際市場，該品牌加上 Hero，正在真正發展成一個規模達數千萬美元的業務。所以全球擴張進展良好。

And then the third growth initiative was really international growth. And a piece of that is international M&A, and we've been talking a lot over the past few years about, hey, we -- we have people here now. We have a process here now, but it's starting to go from theoretical to practical. And we filtered through 100 deals over the last 6 to 12 months now internationally. And so we're being as picky and as fussy as we always would be with any deal. But now we're starting to see the deal flow, which is great. So those are some examples.

接著第三項成長倡議其實就是國際成長。其中一部分是國際併購（M&A），而過去幾年我們談了很多：嘿，我們——我們現在有人才了。我們現在也有流程了，但它正開始從理論走向實務。而在過去 6 到 12 個月，我們在國際市場篩選了 100 個案子。所以我們仍然像以往做任何交易一樣挑剔、謹慎。但現在我們開始看到交易案源（deal flow），這很棒。以上是一些例子。

Great. Thank you so much.

很好。非常感謝。

Olivia Tong, Raymond James.

Olivia Tong，Raymond James。

Great. Thanks, good morning. Regarding the competitive backdrop, you mentioned the promotional environment. Everyone is obviously talking about their various investments in affordability. I realize this isn't new to you, though perhaps there are more tools out there now, whether it's leveraging retail relationships, AI and other tools. So to the extent that your competitors continue to invest in some of the affordability initiatives that they're pushing. Can you provide a little bit more in terms of how you think about combating those, particularly if they start to continue to increase.

很好。謝謝，早安。關於競爭環境，你提到促銷氛圍。大家顯然都在談各自對「可負擔性」的各種投入。我知道這對你們來說並不新鮮，但或許現在可用的工具更多了，不論是運用零售關係、AI 或其他工具。因此，在競爭對手持續投入他們推動的某些可負擔性倡議的情況下，你能否多談一點你們如何思考應對，特別是如果他們開始持續加碼的話。

Yes, I think it's a fair question, Olivia. I would just tell you, though, like look at our track record over the last not one or five a decade or two of how we compete in household, right? And we have a great ability to do that. And sometimes, it's trade promotion, hopefully, usually it's innovation, hitting the right price pack architecture and sizing you want to deliver -- like I said in my remarks, a great high quality at a value price for the consumer. And it just so happens that our brands or the intersection of that naturally. And so they have to -- competitors have to compete a lot harder than we do because we naturally fall in those intersections.

是的，我覺得這是個合理的問題，Olivia。不過我想說，你看看我們過去不是一、五年，而是十年、二十年在家用（household）領域的競爭紀錄，對吧？我們有很強的能力做到這點。有時候是通路促銷（trade promotion），但希望、通常是創新，搭配正確的價格/包裝架構與你想提供的規格——就像我在發言中說的，為消費者提供高品質且具價值的價格。而剛好我們的品牌天生就落在那個交集上。因此競爭對手必須比我們更用力競爭，因為我們自然就處在那些交會點。

Got it. And then on Miss Mouth, sort of similar to Hero with TheraBreath touch wind. I know it's early days, but what do you think Miss Mouth can bring to you in terms of discussions with new retailers, new categories, geographic opportunities as you sort of assess the ability to grow that business beyond where it is right now.

了解。接著談 Miss Mouth，某種程度上類似 Hero 搭上 TheraBreath 的順風。我知道現在還很早期，但就你們評估要把這項業務從目前規模再往上擴張而言，你認為 Miss Mouth 能在與新零售商、新品類、以及地理區域機會的討論上，為你們帶來什麼？

Yes, it has the ability to do all of that. When really you have a brand that's driving category growth, driving usage occasions, it's driving new consumers and young consumers of that into the category. It has a magic moment. It's actually not even the same consumer as OxiClean. OxiClean is a bit more broader base, but Miss Mouth is really higher end and just a great see something -- do something in terms of the stain.

是的，它有能力做到上述所有事情。當你真的擁有一個能帶動品類成長、帶動使用情境、帶來新消費者與年輕消費者進入該品類的品牌時，它就會有一個「魔法時刻」。而且它的消費者其實甚至不是 OxiClean 的同一群人。OxiClean 的客群更廣，但 Miss Mouth 真的更偏高端，而且在去漬方面屬於那種「看到就能處理」的很棒產品。

It is, I don't want to get into too much detail. I would just say it is additive for every retail conversation that we have and we're working hard at the not just do current capacity, but also what the future of that brand and where it has the right -- where consumers say it has the right to go because it's going to continue to broaden on forms and maybe even [adjacent].

是的，我不想講得太細。我只想說，它對我們每一次與零售商的對話都是加分項；我們也在努力的不只是滿足目前產能，還包括這個品牌的未來，以及它適合——也就是消費者認為它有資格（right）延伸到哪裡，因為它會持續在型態上擴展，甚至可能延伸到[相鄰領域]。

Understood. Thank you.

明白。謝謝。

Steve Powers, Deutsche Bank.

Steve Powers，德意志銀行（Deutsche Bank）。

Hey, great. Good morning, guys. To start, I think year-to-date, Rick, the consumption that you put -- I mean, the results you put up around to 5% volumetric shipments, both for the total company, and I think even in the Consumer Domestic business. I guess, how does that compare to your views on consumption year-to-date? And how does that inform your back half thinking.

嗨，很好。各位早安。先從年初至今來看，Rick，你提到的消費——我是說，你們交出的結果大約是 5% 的出貨量成長（以量計），不論是全公司，甚至我想在美國消費品業務也是如此。我想問，這和你們對年初至今「消費端」的看法相比如何？以及這如何影響你們對下半年的思考。

And I guess, (inaudible) against that, it sounds like you made some choices this quarter that benefit of the price/mix line that, butit seems kind of unique for the quarter. So I guess, as I think forward, do we see sort of a return to a more full promotional stance in the back half as well?

另外我想，（聽不清）在此背景下，聽起來你們本季做了一些選擇，讓價格/組合（price/mix）那一行受益，但看起來對這一季而言有點特別。所以我往前看，下半年我們是否也會看到回到更完整、更積極的促銷姿態？

Yes. I would say consumption and our organic -- there is no real disconnect. It's around 5% or so on both. So there's great momentum that we experienced in the first half. In the second half, we expect a lot of that to continue. I think even like I think we pulled the data on a two-year stack as an example, and the two-year stack for organic growth is 5% in the first half and 6% in the second half.

是的。我會說，消費端與我們的有機——兩者之間沒有真正的落差。兩邊大約都是 5% 左右。所以我們在上半年經歷了很好的動能。下半年我們預期其中很大一部分會延續。我想我們甚至拉了兩年疊加（two-year stack）的數據作為例子，上半年有機成長的兩年疊加是 5%，下半年是 6%。

So again, just really broad-based more than just one thing going on as a tailwind for the company. And you're right, I kind of referenced a little bit maybe a bit of a pullback in promotion that we had. I wouldn't say a pullback. I'd say we were at a certain level, and there was an acceleration by other competitors. So I don't know about a year -- much year-over-year change from a price mix perspective, but a little bit from help from laundry.

所以再一次，這是非常廣泛的動能，不只是單一因素在為公司帶來順風。你說得對，我剛才有稍微提到，我們在促銷上可能有一點點收斂。我不會說是收斂。我會說我們維持在某個水準，但其他競爭對手加速了。因此從價格/組合的角度，我不確定年對年是否有很大的變化，但洗衣品類帶來了一點幫助。

But there are other things happen in the portfolio. As we have these higher-margin products like a TheraBreath or like a Hero or even like in Miss Mouth, as they continue to grow, that's going to be a favorable flow on mix.

但產品組合中也有其他事情在發生。隨著像 TheraBreath、Hero，甚至 Miss Mouth 這些高毛利產品持續成長，組合（mix）會帶來有利的流向。

Lee, anything you would add to that?

Lee，你有什麼要補充的嗎？

Yes. I mean I think Rick said it well. I mean we focus on volume growth. If you look at our history on price mix, it's neutral to positive. It's just a little bit slightly higher in in the second quarter. Some of that's a little bit year-over-year. As you look forward, that's going to be the equation. It's going to be volume driven. And we'll benefit from the Rick things we've talked about, the way we're positioned. We we will do what we do on discounting that we don't have to do as much as the others do.

是的。我的意思是，我覺得 Rick 說得很好。我的意思是，我們專注於銷量成長。如果你看我們在價格/組合（price mix）方面的歷史表現，是中性到正向。只是第二季略微高一點。其中一部分是年對年因素。展望未來，這將會是那個等式。將由銷量驅動。而且我們會受惠於 Rick 提到的那些事情，以及我們的定位方式。我們會在折扣上做我們一貫會做的事——我們不需要像其他人那樣做那麼多。

Perfect. Perfect. And then Rick, I was hoping you could talk a little bit more about international M&A. As you said, you've been talking about it for a while. It seems from your -- from the way you're talking about (inaudible), the excitement is is building -- anticipation is building.

很好。很好。接著 Rick，我希望你能再多談一點國際併購（M&A）。如你所說，你談這件事已經有一段時間了。從你——從你談（聽不清）這件事的方式來看，興奮感正在累積——期待感也在累積。

But I guess as you -- have you learned anything in terms of -- I mean, the opportunity has been there on paper for a long time, but it's also take a little while to be fast in the transaction? Is it -- have you learned anything in terms of where it's harder just or not? Just any perspective on kind of the opportunities you see it today versus when you set out to focus on this initiative?

但我想問的是，當你——你在這方面有學到什麼嗎——我的意思是，這個機會在紙面上存在很久了，但在交易上要快速推進也花了一些時間？是不是——你有學到哪些地方比較難、或其實沒那麼難嗎？想請你分享一下，關於你們現在看到的機會，和當初開始聚焦這項倡議時相比，有什麼樣的觀點。

Yes. I think we are best in our pick on it for a little while, and it was all about people and structure. It wasn't a bad approach, but we -- initially, we added M&A people and a person in Europe, for example. And I would say it was a little bit disconnected from the management teams. And it was almost like a center of excellence on M&A. We changed that approach about six to eight months ago.

是的。我想我們在這件事上摸索了一段時間，而重點都在人才與架構。那不是個不好的做法，但我們——一開始我們增聘了併購人員，例如在歐洲就有一位。但我會說，這跟管理團隊之間有點脫節。幾乎像是把併購做成一個卓越中心（center of excellence）。大約在六到八個月前，我們改變了這個做法。

And we said the management teams are responsible and the M&A person supports that. And so the -- all of a sudden, the international management teams, the Country Director and his or her staff, Australia had the same thing and Southeast Asia, the same thing. In Latin America, the same thing. You have a right to go and an obligation to go look at not just what you hear from the bankers or for our M&A contact. But where do you want what brands would you like to go and look at.

我們說由各管理團隊負責，而併購人員提供支援。因此——突然之間，國際管理團隊、各國區總監及其團隊，澳洲也是一樣，東南亞也是一樣。拉丁美洲也是一樣。你有權利去看、也有義務去看，不只是從投行或我們的併購聯絡人那裡聽到的案子。而是你想要什麼、你希望去看哪些品牌。

And that has -- when we made it, I guess, their objective and they owned it. I'd say that was the unlock for us. And of course, our M&A team is enabling and helping, but I think we went into like right from first to third year since we did that.

而那件事——當我們把它變成（我想）他們的目標、而且由他們擁有（負責）之後，我會說那就是我們的解鎖點。當然，我們的併購團隊在促成並協助，但我覺得自從那樣做之後，我們就像是從第一年直接跳到第三年的進度。

Perfect. Thanks so much.

很好。非常感謝。

Lauren Lieberman, Barclays.

Lauren Lieberman，巴克萊（Barclays）。

Great. Thanks. So I had two questions. First was at the risk of being redundant. So I got a little bit confused on the way on Chris' question and the answer was just the gross margin this quarter, the [youth bridge] -- but in total, it did come in below your expectations. And there wasn't a huge change on the inflation guide, as you guys pointed out. So just curious on the slight shortfall in gross margins this quarter.

很好。謝謝。我有兩個問題。第一個問題是，冒著有點重複的風險。我在 Chris 的問題與回答那段有點困惑：是說本季的毛利率、那個 [youth bridge] ——但整體而言，確實低於你們的預期。而如你們指出的，通膨指引並沒有很大的變化。所以想請教，本季毛利率小幅不如預期的原因是什麼。

And then my second question was just about how Techland is trending on to slide into organic sales going forward from here. So just wanted to get an update on that brand. Thanks.

第二個問題是，關於 Techland 未來納入有機銷售（organic sales）的走勢如何。想請你們更新一下這個品牌的狀況。謝謝。

All right. So I'll take the first question. Just to answer the question. We had a just slightly higher transportation costs in the second quarter, even a little bit higher than we thought. But as we talked about for the year, we're still at $30 million (inaudible)

好的。我先回答第一個問題。直接回答你的問題：第二季我們的運輸成本略高一些，甚至比我們原先預期的還要高一點。但如同我們談到全年時所說，我們仍然維持在 3,000 萬美元（聽不清）。

And then I will touch on, I think my comments were really -- we had sales growth in the second quarter. We have a lot of back half-weighted innovation, new collaborations with other brands and some activations up and down the channel or you expect sales growth in the second half of the year. And then we have a lot of work going on in innovation into, as we've said before, another category to and some other distribution opportunities plus international expansion. I think that's a muscle that we've built really well some of these brands now takes a little bit of regulatory perspective that that's going to start hitting in 2027 as well. So that -- it should be a tailwind.

接著我也補充一下，我的評論其實主要是——我們第二季有銷售成長。我們有很多偏向下半年發力的創新，與其他品牌的新合作，以及在通路上下游的一些行銷啟動（activations），因此我們預期下半年銷售會成長。另外，我們也在創新上投入很多工作，正如我們之前說過的，會進入另一個品類，以及一些其他的通路機會，再加上國際擴張。我認為這是我們已經把肌肉練得很好的能力；而對其中一些品牌來說，還需要一些法規面的考量，這也會在 2027 年開始反映出來。所以——這應該會是個順風（tailwind）。

Javier Escalante, Evercore ISI.

Javier Escalante，Evercore ISI。

Hi, good morning. I guess the punchline in laundry is that ran hammer is holding share without promoting less. And while the others promote, but I don't know whether I heard this correctly because it sounded like a big number, but do you say that Henkel increased promotional activity by how much. So that's high. So what does it mean right now, given how the oil is trending? Do you -- have you seen any change given that the category is so low? So if you can clarify that a little bit?

嗨，早安。我想洗衣品類的重點是，ARM & HAMMER 在促銷較少的情況下仍能守住市占。而其他人則在促銷，但我不確定我是否聽對了，因為聽起來是個很大的數字：你是說漢高（Henkel）把促銷活動增加了多少？那很高。那麼在目前油價走勢之下，這代表什麼？你們——有看到任何變化嗎，考量到這個品類目前這麼低迷？所以如果你能再澄清一下。

Yes. No, it's a good question, Javier. And look, I think I said last quarter, like when commodities are high, and they stay high for a while, what tends to happen, promotion tends to kind of dial back a bit. That is not what happened this past quarter. My belief is a lot of people got tariff refunds and they're spending it back and trying to drive volume.

是的。不，這是個好問題，Javier。你看，我想我上季說過，當大宗商品價格很高、而且維持高檔一段時間時，通常促銷會稍微收斂一些。但上個季度並沒有發生這種情況。我認為很多人拿到了關稅退稅（tariff refunds），所以把錢再花回去，試圖拉動銷量。

The good news for us is again, ARM & HAMMER is at that intersection of value and just quality. And we don't need to promote as much in order to hit that kind of price point. And so we held share, which is fantastic. And -- as we increase promotion a little bit at historical levels, of course, I tend to think that we're going to continue to do what we've done for the last 15, 20 years, gained share in ARM & HAMMER year after year.

對我們來說的好消息是，ARM & HAMMER 再次處在「價值」與「品質」的交會點上。我們不需要做那麼多促銷，就能達到那樣的價格帶。因此我們守住了市占，這非常棒。而且——當我們把促銷稍微提高到歷史水準時，當然，我傾向認為我們會繼續做過去 15、20 年一直在做的事：ARM & HAMMER 年復一年地提升市占。

Thank you. And my second one is in Cat Litter, continue doing really well. You mentioned in Q1 that you got the strongest GDP growth in HPC, and we are seeing it. So any heading into back-to-school, any change in distribution, particularly in this business. If you can comment on that. Thank you.

謝謝。第二個問題是關於貓砂（Cat Litter），表現持續非常好。你們在第一季提到在 HPC 看到最強的 GDP 成長，而我們也確實看到了。那麼在進入返校季（back-to-school）之前，在這個業務上，特別是通路鋪貨/配銷（distribution）方面，有沒有任何變化？如果可以的話請評論一下。謝謝。

Yes. I would say Litter is doing extremely well. To have 7.5% consumption growth and almost a full share point gained is great. And we're doing that the right way. We're doing that the way we've always done it, which is innovation.

是的。我會說貓砂的表現非常非常好。能有 7.5% 的消費量成長（consumption growth），並且幾乎提升了整整 1 個市占點，這很棒。而且我們是用正確的方式做到的。我們用的方式跟我們一直以來的做法一樣，也就是創新。

ARM & HAMEER, Cat Litter is just known for innovation. Our new one this year on dual defense with Microban is a great example of that. And some competitors are spending a lot. We're within historical levels, and we're doing all the right things. And we've talked before about -- some of the attributes of why ARM & HAMMER does so well. We have the orange box, we have the black box, we have premium value. So just again, Litter's doing great.

ARM & HAMEER，貓砂一向以創新著稱。我們今年推出的搭載 Microban 的雙重防護新品，就是很好的例子。而有些競爭對手在投入上花了很多錢。我們仍在歷史水準範圍內，而且我們把該做的事情都做對了。我們之前也談過——ARM & HAMMER 表現如此出色的一些原因。我們有橘色盒裝、黑色盒裝，也有高端價值定位。所以再說一次，貓砂業務表現非常好。

Thank you.

謝謝。

Robert Moscow, TD Cowen.

Robert Moscow，TD Cowen。

Thank you. One of the many positive surprises here is there's no mention of retailers reducing inventory in your categories. So my first question is, how do you think you dodged that bullet. Do you think it's because of the categories? Or do you think it's just because you, in particular, have the right inventory levels.

謝謝。這裡眾多正面驚喜之一是，你們的品類中沒有提到零售商在去化庫存。所以我第一個問題是，你認為你們是如何避開這一槍的？你覺得是因為品類的關係嗎？還是你認為只是因為你們自身的庫存水位特別合適？

And then I had another question on Touchland. You mentioned that it grew, but there's not a lot of commentary on how much it grew. Is the pace of growth decelerating compared to first quarter? Can you be more specific for us? Thanks.

然後我還有一個關於 Touchland 的問題。你提到它有成長，但對於成長幅度沒有太多評論。相較於第一季，成長速度是否在放緩？你能否更具體一點？謝謝。

Yes. So let's see, the first question is on retail inventory. Look, if you look back at all of our transcripts, probably for the last 10 or 15 years, we've talked about retail inventory maybe two or three times. And two of those times were earlier in 2025. There's always dynamics that are happening with retail inventory, but we never believe they are impactful enough for us to comment on or something that we can't overcome. So there is, I would say, some movement, but overall immaterial.

是的。那我們先看第一個問題：零售端庫存。你看我們過去大概 10 到 15 年的所有法說逐字稿，我們可能只提過兩三次零售庫存。而其中兩次是在 2025 年較早的時候。零售庫存一直都有一些動態變化，但我們從不認為它對我們的影響大到需要特別評論，或是我們無法克服的事情。所以我會說確實有一些變動，但整體而言並不重大。

The second one is on Touchland. I would say the business, the business is is growing and our outlook for that is probably high single digits these days. But again, we're really comforted by the fact that we have this great innovation lineup. We have this great collab lineup coming. A lot of the the support that we have in the back half with displays from these retailers. So yes, so touched continue to be optimistic about it.

第二個是關於 Touchland。我會說這個業務正在成長，而我們目前對它的展望大概是高個位數成長。但同樣地，讓我們很安心的是，我們有很強的創新產品陣容。也有很棒的聯名合作（collab）陣容即將推出。此外，下半年我們也會獲得這些零售商在陳列展示（displays）上的大量支援。所以，是的，我們仍然對它保持樂觀。

Great. Thanks.

很好。謝謝。

Filippo Falorni, Citi.

Filippo Falorni，花旗（Citi）。

Hi, good morning, everyone. I want to talk about the international business, solid performance there. It's now like continue to deliver on pretty tougher comparisons. Maybe can you give us a sense of what regions are driving the growth there, where are you seeing the strength?

嗨，各位早安。我想談談國際業務，那邊表現很穩健。在相當嚴峻的比較基期下，仍持續交出成績。你們能否讓我們了解一下，是哪些地區在帶動那邊的成長、你們在哪些地方看到強勁動能？

And then the second part of the question, as you think about the opportunity for some of the recent acquisitions like Therabreath, Hero, Touchland. How much more opportunity do you see for expansion of those brands internationally? Thank you.

然後第二部分的問題是，當你們思考近期一些併購案（如 Therabreath、Hero、Touchland）的機會時，你們認為這些品牌在國際市場還有多少擴張空間？謝謝。

Yes. I'll take the brand one, and then I'll let Lee talk about kind of the countries and the regions. But we are still in early innings for baseball analogy for Therabreath and Hero and very early for Touchland. I think we're hitting number one share positions in many, many countries all over the world. We have great retailer discussions about how we're growing kind of the acne category with Hero.

是的。我先回答品牌的部分，然後我會讓 Lee 談談各國與各區域的情況。以棒球比喻來說，Therabreath 和 Hero 我們仍在比賽的前幾局；Touchland 則更是非常早期。我認為我們在全球許多、許多國家都拿到市佔第一的位置。我們也和零售商就如何透過 Hero 來帶動痘痘（acne）品類成長，進行了很好的討論。

And of course, the mouthwash rollout is a little bit slower than the acne rollout, but they're both doing extremely well. And once they get in market, these brands because they are a problem solution because consumers can see them working because they're premium brands or retailer driving category growth. Once they're in market, it starts to become kind of a virtuous cycle.

當然，漱口水的鋪貨推進速度比痘痘品類的鋪貨稍慢一些，但兩者表現都非常好。而且一旦進入市場，這些品牌因為是「問題解決方案」——消費者能看見效果——又因為它們是高端品牌，或能帶動零售端品類成長，所以一旦進入市場，就會開始形成某種良性循環。

And I'll just pick up from there. Certainly, Hero, Therabreath is a great driver in the quarter for us. And then if you think about that, taking those -- we're taking those across the globe, that's what we do really well. So you ask like which part is doing well, quite frankly, very broadly, Europe, for example, Europe, because economy wants to be slower, we're growing at the levels you see at the total level here. doing really well in Asia and Latin America as well.

我接著補充。本季 Hero、Therabreath 的確是我們很重要的成長驅動力。而你若想想把這些品牌推向全球——我們正是在做這件事，而這也是我們非常擅長的。所以你問哪一部分表現好，坦白說是相當全面：例如歐洲，雖然經濟看起來較為放緩，我們仍以你在整體層面看到的那種成長速度在成長；亞洲與拉丁美洲也表現得很好。

So you said this in the first quarter. First quarter had a little bit of impact in the Middle East. You take it out. It was growing towards mid- to high single digits. The outlook for the business is to be high single digits. That's what it is in the evergreen model. And it was great to see another strong quarter from them.

你在第一季也提過這點。第一季在中東有一些影響。把那個因素排除後，成長大約接近中個位數到高個位數。而我們對這項業務的展望是高個位數成長。這也正是常青模型（evergreen model）中的假設。很高興看到他們又交出一個強勁的季度。

Great. Thank you again.

很好。再次謝謝。

Andrea Teixeira, JPMorgan.

Andrea Teixeira，摩根大通（JPMorgan）。

Thank you, operator. Hi, everyone. I just wanted to go back to what you mentioned about GDP's rate in one of the categories. But I was hoping to see if you can explore a little bit of the GDPs on the laundry side and how we're cycling that. And you just say that you're not engaging your promo levels are below, just curious and you're still getting share.

謝謝接線員。各位好。我想回到你剛才提到某個品類的 GDP 速度。但我希望你能再多談一點洗衣（laundry）這邊的 GDP，以及我們如何在比較基期上「循環」（cycling）。你也提到你們沒有加大促銷、促銷水準低於以往，但仍在取得市佔，這點我很好奇。

Just curious to see the volume, if you think about like volume share. If you can talk about that and as well as like how to think about GDP for Laundry and in general in the US for the remainder of the year. And when you're cycling that. You see that tightening some of the GDP growth into next year? Or you're cycling some of it like in the third quarter?

也想了解一下量的表現，例如從銷量市佔（volume share）的角度。如果你能談談這點，以及今年剩餘時間在美國市場洗衣品類與整體的 GDP 該如何看待。以及你們何時會進入比較基期循環。你是否看到部分 GDP 成長在明年會收斂？或者你們會在第三季就開始循環掉一部分？

Yes. So thanks, Andrea. Really, remember, last quarter, we kind of talked about our industry-leading GDP growth, and it was, I want to say, around 11% or 12%, and most of the industry average 5% or 6%. So we were double what most people were getting. And at the time, when we talked about GDP growth, I said it was very broad-based.

是的。謝謝你，Andrea。請記得，上季我們談到我們在業界領先的 GDP 成長，當時我記得大約是 11% 或 12%，而多數同業平均大約是 5% 或 6%。所以我們大概是多數人的兩倍。而當時我們談 GDP 成長時，我也說那是非常廣泛的。

It was across brands and across channels, and that was entirely true. So I think laundry, I don't have it in front of me, but I would guess it was high single digits for ARM & HAMMER. So that all was kind of towards the front part of the year. So it takes a while for that to reset. But, so that's, into next year is what I would say, all those GDP results help with.

它橫跨各品牌、也橫跨各通路，而這完全屬實。所以洗衣這塊，我手邊沒有數字，但我猜 ARM & HAMMER 應該是高個位數。因此那一切大多發生在今年前段。所以要花一點時間才會重置。但我會說，這些 GDP 的成果會一路幫助到明年。

Edward Lewis, Rothschild.

Edward Lewis，Rothschild。

Thanks very much. Just a couple from me, please, Rick-- but (inaudible) I guess one of your power brands is a bit of a tricky 25 view in the US and you call out strength in international, but I just wondered how things are going in the US for (inaudible). Is it a category challenge you're facing there? Or is it more of a brand challenge.

非常感謝。我這邊有兩個問題，Rick——但（聽不清）我想你們其中一個主力品牌在美國對 2025 年的展望有點棘手，你們也提到國際市場很強，但我想知道在美國這邊（聽不清）的情況如何。你們在那裡面臨的是品類層面的挑戰嗎？還是更偏向品牌層面的挑戰？

And then I think you went live on the ERP didn't in April. I'm looking back what sort of you talked about or in the Investor Day, you talked about it being an engine of growth in the future, at least rated there who implementing it. And I just wonder, Rick, as you think clear optimism you feel about the outlook for the business. How much does does this new sort of upgraded ERP sort of feed into that optimism?

然後我想你們在四月就讓 ERP 上線了，對嗎？我回頭看你在投資人日（Investor Day）談到的內容，你提到它在未來會是成長引擎，至少對正在導入的人來說是如此。我只是想請問，Rick，當你談到你對業務前景的明確樂觀時，這套新的、升級後的 ERP 在多大程度上支撐了你的樂觀？

Yes. Thanks, Ed. So for Batiste, we've talked about this -- it's really a tale of two cities. But is internationally is doing phenomenally well. It's growing double digits. It's one of the main drivers of growth behind Therabreath and Hero behind innovation, the right pricing strategy. Our international Batiste business is doing extremely well. Batiste in the US is growing. We're growing a little short of the category. Category grew 5.5%. We grew closer to 2% from consumption. So we lost a little bit of share, 1.44%. That was closer to four or five share points in prior quarters.

是的。謝謝你，Ed。關於 Batiste，我們談過——這其實是「兩個城市的故事」。但在國際市場的表現非常出色。成長是雙位數。它是推動成長的主要動能之一，與 Therabreath、Hero 一樣，背後來自創新與正確的定價策略。我們的國際 Batiste 業務表現極佳。Batiste 在美國也在成長。我們的成長略低於品類。品類成長 5.5%。我們從消費端（consumption）來看成長接近 2%。所以我們流失了一點市占，約 1.44%。而在前幾個季度，這個數字更接近 4 到 5 個市占點。

We are making great headway on Batiste. I've seen the inflection. I'm not worried about Batiste. We have a great set of actions that are already in market or lined up for market in late this year, early next year on sizes and offerings and price pack architecture. So we have some great innovation queued up and just a lot of confidence in the Batiste brand.

我們在 Batiste 上取得了很大的進展。我已經看到拐點。我不擔心 Batiste。我們有一套很好的行動方案，已經在市場上推進，或已排程在今年稍晚、明年初推出，涵蓋規格尺寸、產品組合與價格/包裝架構（price pack architecture）。所以我們有一些很棒的創新已經排隊待發，對 Batiste 品牌也非常有信心。

So that's not something that I really worry about long term. The ERP system, I think it's an underappreciated fact that we have a North American ERP system. And so as we do acquisitions, it is one of the things that enables us to do acquisitions so flawlessly and seamlessly.

所以長期來看，這不是我真正擔心的事情。至於 ERP 系統，我認為有個事實常被低估：我們有一套北美的 ERP 系統。因此當我們進行併購時，它就是讓我們能夠非常順暢、無縫完成併購整合的關鍵之一。

And just to give you a real life example. We closed on Miss Mouth, I think, around June 1 or so, and we're going to be fully integrated by end of August. Like that is lightning fast, even for us. And so that capability is, I think, again, just a great advantage for us.

我舉一個真實案例。我們大概在 6 月 1 日左右完成 Miss Mouth 的收購交割，而我們會在 8 月底前完成全面整合。這速度快得驚人，即使以我們的標準也是如此。所以我認為這項能力再次顯示，對我們而言是一個很大的優勢。

Kevin Grundy, BNP Paribas.

BNP Paribas 的 Kevin Grundy。

Great. Thanks, everyone. Two questions for me, Rick, related to the pricing environment. where we certainly seem like the cost environment and cost inflation we're seeing would justify additional pricing. So a lot of discussion about brand strength broadly from Church and from some of your peers, but it doesn't seem like in certain cases that the industry is looking at pricing as a lever to offset the cost inflation where there's a clear justification for that. Like for Procter, it's a more premium portfolio than new Clorox sort of well documented what's going on from a market share perspective.

很好。謝謝各位。我有兩個問題，Rick，都與定價環境有關。我們確實看到成本環境與成本通膨，似乎足以支持進一步提價。因此，Church 以及你的一些同業都在廣泛討論品牌力，但在某些情況下，產業似乎並未把定價當作抵消成本通膨的槓桿，儘管有明確的理由可以這麼做。例如對寶潔（Procter）而言，它的產品組合更偏高端；而新的 Clorox，市場份額方面發生的事情也眾所周知。

So I'm just trying to square some of the brand strength discussion and what would certainly appear to be a clear cost justification for additional pricing in this backdrop of a softer consumer environment, particularly in household products, and some of the decisions not to take additional price. And what's different in the current environment versus past where the industry seems more inclined to move on price. So just your thoughts there, Rick, on retailers' openness for additional price in your portfolio, how you're thinking about it for Church and what you've included in your outlook? Thanks.

所以我想釐清的是：在消費者環境轉弱（特別是家用產品）之下，一方面大家在談品牌力，另一方面又似乎有明確的成本理由可以再提價，但卻做出不再加價的決策，這兩者如何一致？以及目前環境與過去相比有何不同，因為過去產業似乎更傾向於在價格上採取行動。所以想請你談談，Rick，零售商對你們產品組合進一步提價的接受度如何、你對 Church 的思考方式，以及你在展望中納入了哪些假設？謝謝。

Yes. Thanks, Kevin. My answer doesn't really changed a lot from what I talked about last quarter. I think in this environment, consumers are pressed. And we see that. Like when you see stuff go on promotion, I would say elasticities are higher than they normally would be. So consumers are pressed. And so our job is to help offset that as best we can. And we said last quarter, we're going to do that with productivity. And we were fighting hard to do that, and we've largely done that, which is great.

是的。謝謝你，Kevin。我的回答跟我上季談的其實沒有太大改變。我認為在這樣的環境下，消費者的壓力很大。我們也看得到。例如當你看到產品做促銷時，我會說需求彈性（elasticities）比平常更高。所以消費者確實承壓。因此我們的工作就是盡可能幫助抵消這些壓力。而我們上季說過，我們會透過生產力提升（productivity）來做到這點。我們也非常努力在做，而且大致上已經做到了，這很棒。

We said that if we couldn't do that, and this inflationary environment stays higher for longer, then we would look at pricing eventually. And that's still true. We believe, we hope that this higher inflation environment isn't permanent. But meanwhile, we're fighting it with productivity, we're fighting it with trade and promotional optimization.

我們也說過，如果我們做不到，而這個通膨環境「高位維持更久」，那我們最終就會考慮定價。這點仍然成立。我們相信、也希望這種較高的通膨環境不是永久性的。但同時，我們正用生產力提升來對抗，也用通路與促銷最佳化（trade and promotional optimization）來對抗。

And so far, we're winning. I mean, look at our gross margin expansion as an example, I think a lot of our peer groups are going backwards on margin. So for a long time, typically, what you see is when inflation happens, promotional levels abate as a first step.

到目前為止，我們是贏的。例如看看我們毛利率的擴張；我認為很多同業的毛利率反而在倒退。所以長期以來通常你會看到的是：當通膨發生時，第一步是促銷強度會下降。

That's not what's happening right now. Like I said before, I believe that a lot of tariff rebates are happening from retailers to other manufacturers and they're competing that away a bit. So that has to play out a bit. Kevin, is my short answer to you, but we're in a great position to win either way.

但現在並不是這樣。就像我之前說的，我相信零售商正在把不少關稅回饋（tariff rebates）給其他製造商，而他們也在某種程度上把這些回饋拿去競爭掉。所以這需要一些時間讓它發展、消化。Kevin，這就是我給你的簡短回答，但不論哪種情況，我們都處在很好的位置可以取勝。

Thank you.

謝謝。

There are no further questions at this time. I will now turn the call back to Mr. Rick Dierker for closing remarks.

目前沒有其他問題。我現在把電話交回給 Rick Dierker 先生做結語。

Okay. Thanks, everyone. Looking forward to talking again in the third quarter. And meanwhile, have a great rest of the summer. Bye.

好的。謝謝各位。期待在第三季再與各位交流。同時，祝各位夏天剩下的時間過得愉快。再見。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位參與。您現在可以掛線。