高露潔 (CL) 2023 Q2 法說會逐字稿

Good morning. Welcome to today's Colgate-Palmolive 2023 Second Quarter Earnings Conference Call. This call is being recorded and is being simulcast live at www.colgatepalmolive.com.

早上好。歡迎參加今天的高露潔棕欖 2023 年第二季度收益電話會議。本次通話正在錄音，並在 www.colgatepalmolive.com 上同步直播。

Now for opening remarks, I'd like to turn this call over to Chief Investor Relations Officer and Executive Vice President, M&A, John Faucher.

現在，我想將這次電話會議轉交給首席投資者關係官兼併購執行副總裁 John Faucher。

Thank you, Allison. Good morning, and welcome to our second quarter 2023 earnings release conference call. This is John Faucher.

謝謝你，艾莉森。早上好，歡迎參加我們的 2023 年第二季度收益發布電話會議。這是約翰·福徹。

Today's conference call will include forward-looking statements. Actual results could differ materially from these statements. Please refer to the Q2 2023 earnings press release and related prepared materials and our most recent filings with the SEC including our 2022 annual report on Form 10-K and subsequent SEC filings, all available on Colgate's website, for a discussion of the factors that could cause actual results to differ materially from these statements.

今天的電話會議將包括前瞻性陳述。實際結果可能與這些陳述存在重大差異。請參閱 2023 年第二季度收益新聞稿和相關準備材料以及我們最近向 SEC 提交的文件，包括我們的 10-K 表格 2022 年年度報告和隨後的 SEC 文件，所有這些都可以在高露潔網站上找到，以討論可能影響公司業績的因素。導致實際結果與這些陳述存在重大差異。

This conference call will also include a discussion of non-GAAP financial measures, including those identified in tables 4, 6, 7, 8 and 9 of the earnings press release. A full reconciliation to the corresponding GAAP financial measures is included in the Q2 2023 earnings press release and is available on Colgate's website.

本次電話會議還將討論非公認會計準則財務指標，包括收益新聞稿表 4、6、7、8 和 9 中確定的指標。 2023 年第二季度收益新聞稿中包含了相應 GAAP 財務指標的完整調節表，並可在高露潔網站上查看。

Joining me on the call this morning are Noel Wallace, Chairman, President and Chief Executive Officer; and Stan Sutula, Chief Financial Officer. Noel will provide you with some thoughts on our Q2 results and our 2023 outlook, and we will then open it up for Q&A. Noel?

今天早上與我一起參加電話會議的還有董事長、總裁兼首席執行官諾埃爾·華萊士 (Noel Wallace)；斯坦·蘇圖拉 (Stan Sutula)，首席財務官。 Noel 將為您提供一些關於我們第二季度業績和 2023 年展望的想法，然後我們將開放問答。諾埃爾？

Well, thanks, John, and good morning, everyone. So a few quick thoughts this morning on our strong quarter of top and bottom line growth and clearly along with the improved 2023 outlook we provided. On the first quarter call, you'll recall, I highlighted 3 priorities for the year: driving organic sales growth as we face tougher comparisons; executing on productivity and revenue growth management to fund brand investment while also delivering on our earnings targets; and improving our cash flow performance.

好吧，謝謝約翰，大家早上好。今天早上，我們簡單思考一下我們強勁的季度收入和利潤增長，以及我們提供的 2023 年前景的改善。您可能還記得，在第一季度電話會議上，我強調了今年的 3 個優先事項：在我們面臨更嚴格的比較時推動有機銷售增長；執行生產力和收入增長管理，為品牌投資提供資金，同時實現我們的盈利目標；並改善我們的現金流績效。

While not without its challenges, in Q2, we made strong progress on all 3 of these. On organic sales growth, Q2 showed the strength of our global portfolio as we delivered our strongest quarterly growth on a 2-year stack basis since Q3 2008. with both organic volume and pricing growth accelerating on a 2-year stack basis. We delivered organic sales growth in all 6 divisions and in each of our categories grew in the mid-single digits or higher. We are laser-focused on returning to balanced organic sales growth, and we believe the investments we are making, combined with easier comparisons, give us a path to improved volume growth going forward as we leverage increased brand support and innovation while still delivering profit growth.

儘管並非沒有挑戰，但在第二季度，我們在所有這三個方面都取得了巨大進展。在有機銷售增長方面，第二季度顯示了我們全球產品組合的實力，因為我們實現了自 2008 年第三季度以來兩年堆棧基礎上最強勁的季度增長。有機銷量和價格增長都在兩年堆棧基礎上加速。我們的所有 6 個部門均實現了有機銷售增長，每個類別的銷售額均實現中個位數或更高的增長。我們專注於恢復平衡的有機銷售增長，我們相信，我們正在進行的投資，加上更容易的比較，為我們提供了一條改善未來銷量增長的道路，因為我們利用增加的品牌支持和創新，同時仍然實現利潤增長。

The strength of our revenue growth management efforts, combined with our progress on funding the growth, drove improvement in our gross margin both sequentially and year-over-year. Our Base Business SG&A was down 30 basis points in the quarter, a strong sales growth, lower logistics costs and the benefits of our 2022 global productivity initiative drove operating leverage even as we increased advertising spending by 20%. Combined with our gross margin expansion, we delivered 60 basis points of operating margin expansion in the quarter. This enabled us to deliver upside versus expectations in the quarter despite continued pressure from below-the-line items, including the impact of higher interest rates and tax.

我們的收入增長管理努力的實力，加上我們在為增長提供資金方面取得的進展，推動了我們的毛利率環比和同比的改善。本季度我們的基本業務 SG&A 下降了 30 個基點，儘管我們將廣告支出增加了 20%，但強勁的銷售增長、較低的物流成本以及 2022 年全球生產力計劃的好處推動了運營槓桿。結合毛利率的擴張，我們本季度的營業利潤率增長了 60 個基點。儘管面臨來自線下項目（包括利率和稅收上升的影響）的持續壓力，這使我們能夠在本季度實現高於預期的業績。

As you've heard me say, it's this virtuous combination of growth-driven leverage, revenue growth management, cost containment and productivity to drive investments in capabilities and brand building which drove the strong quality of this quarter's results. We believe it also lays the groundwork for our performance across the balance of the year and into the future. And finally, our strong cash flow performance continued in the quarter, which is helping us offset some of these below-the-line headwinds. Free cash flow was up more than 50% in the quarter and is more than up -- up more than 80% year-to-date through net income growth and improved working capital performance, and pleasingly, particularly in inventories and payables.

正如您所聽到的，正是這種增長驅動槓桿、收入增長管理、成本控制和生產力的良性結合，推動了對能力和品牌建設的投資，從而推動了本季度業績的強勁質量。我們相信，這也為我們今年和未來的業績奠定了基礎。最後，我們在本季度繼續保持強勁的現金流表現，這有助於我們抵消一些線下不利因素。本季度自由現金流增長超過 50%，並且通過淨收入增長和營運資本績效改善，今年迄今增長超過 80%，尤其是在庫存和應付賬款方面。

So I'm pleased with how we started the year, but I'm also well aware of the challenges and uncertainty ahead of us. Our goal is to deliver consistent, high-quality compounded top and bottom line growth to drive shareholder value. And I believe Colgate-Palmolive has the brands, the global footprint and the people to deliver.

因此，我對今年的開局感到滿意，但我也很清楚我們面臨的挑戰和不確定性。我們的目標是實現持續、高質量的營收和利潤複合增長，以推動股東價值。我相信高露潔棕欖擁有品牌、全球足跡和人才。

So with that, I'll turn it over to the Q&A.

那麼，我將把它交給問答環節。

(Operator Instructions) And Our first question today will come from Dara Mohsenian of Morgan Stanley.

（操作員說明）今天我們的第一個問題將來自摩根士丹利的 Dara Mohsenian。

So another impressive quarter of organic sales growth. And as you mentioned, the CAGR is accelerated on a multiyear basis, but it was driven by pricing more than entirely. And obviously, from here, we're going into a period where we're cycling higher pricing.

有機銷售增長又一個令人印象深刻的季度。正如您所提到的，複合年增長率在多年的基礎上加速，但它不僅僅是由定價驅動的。顯然，從現在開始，我們將進入一個定價更高的時期。

So can you just talk about conceptually at a high level, how you think about the balance of organic sales growth going forward, level of visibilities that volume can come back as pricing drops off? And maybe within that question also, if you could just touch on the global Oral Care share and the performance in the quarter and prospects going forward. That would be helpful also.

那麼，您能否從高層次上談談概念，您如何看待未來有機銷售增長的平衡，以及隨著價格下降銷量可以恢復的可見性水平？也許在這個問題中，您是否可以談談全球口腔護理份額以及本季度的業績以及未來的前景。這也會有幫助。

Sure. Thanks, Dara. So let me go back to a couple of the comments I made in my opening statement and really talk about how we're trying to work to improve the quality of the P&L, which puts us in the best position to drive compounded long-term balanced growth top and bottom line, which is what we've been talking about for quite some time. As you know, we're coming out of what has been the worst raw material environment in decades. So our plan is with the combination of the revenue wealth management we talked about and the discipline that we're putting across the company in that area, more pricing and productivity, we can restore our gross margins. And that's been the key focus.

當然。謝謝，達拉。因此，讓我回顧一下我在開場白中發表的一些評論，並真正談談我們如何努力提高損益表的質量，這使我們處於推動複合長期平衡的最佳位置增長頂線和底線，這是我們已經討論了一段時間的內容。如您所知，我們正在擺脫幾十年來最糟糕的原材料環境。因此，我們的計劃是結合我們所討論的收入財富管理以及我​​們在該領域對整個公司製定的紀律，提高定價和生產力，我們可以恢復毛利率。這是重點。

We believe that if we exit this type of environment with a structurally lower gross margin, you're going to be in a hole that's very difficult to dig yourself out of in the future, particularly because you need the gross margin to fund the investment in capabilities and the brand building, which you certainly saw in the quarter. We want to grow margins while still investing behind our brands and sustain a consistent organic sales growth, which we're clearly demonstrating. The key to do is getting pricing in the P&L. We certainly focused our teams on the ground in that area. Because the depth and duration of this cost inflation that we're experiencing has been an issue, and you simply can't do it with one round of pricing. It needs to be consistent and deliberate and purposeful. And now as we look at cost inflation slowing overall, there are still places where we see margin pressure. So we -- of course, we need to take additional pricing, and this has had an impact on the volume.

我們相信，如果我們以結構性毛利率較低的方式退出這種環境，那麼您將來將陷入一個很難擺脫的困境，特別是因為您需要毛利率來為投資提供資金能力和品牌建設，您在本季度肯定看到了。我們希望在增加利潤的同時仍然投資於我們的品牌並維持持續的有機銷售增長，我們已經清楚地證明了這一點。關鍵是要在損益表中定價。我們當然將我們的團隊集中在該領域。因為我們正在經歷的這種成本膨脹的深度和持續時間一直是一個問題，而且你根本無法通過一輪定價來做到這一點。它需要一致、深思熟慮且有目的。現在，當我們看到成本通脹總體放緩時，我們仍然在某些地方看到利潤率壓力。所以我們——當然，我們需要採取額外的定價，這對銷量產生了影響。

Maybe a couple of examples. China is a good example. We've taken pricing on our Hawley & Hazel joint venture in order to improve profitability long term to drive the necessary investments in digital, the premium innovation required in that market, and a continued shift to e-commerce. And as you know, China is a very difficult market in which to take pricing. And in the short term, that hasn't -- that's had an impact on our volume through lower promotions and wholesaler inventories as we look to set the new pricing in the market. But the long-term implications of not restoring margins are more problematic. I'd go on to North America as well, where we're working to improve the health of our business and our brands through shifting more consistent brand support from above the net revenue line to obviously into margin expansion.

也許舉幾個例子。中國就是一個很好的例子。我們對 Hawley & Hazel 合資企業進行了定價，以提高長期盈利能力，推動對數字化、該市場所需的優質創新以及持續轉向電子商務的必要投資。如您所知，中國是一個很難定價的市場。從短期來看，這並沒有影響我們的銷量，因為我們希望在市場上設定新的定價，因此促銷活動和批發商庫存的減少對我們的銷量產生了影響。但不恢復利潤率的長期影響則更成問題。我還會繼續前往北美，在那裡我們正在努力通過將更一致的品牌支持從淨收入線以上轉向利潤擴張，來改善我們的業務和品牌的健康狀況。

This will improve health of our brands and our P&L. We're seeing this play out in our non-promoted share, which is growing, which is a healthy way to grow the business. In the short term, was the volume impact from reduced promotions more than we expected? Yes, it was. But the good news is we've adjusted the P&L, we've strengthened it and we can adjust moving forward as we see the opportunities provide themselves.

這將改善我們品牌和損益的健康狀況。我們看到這種情況在我們的非促銷份額中得到體現，該份額正在增長，這是發展業務的健康方式。從短期來看，促銷活動減少對銷量的影響是否超出我們的預期？是的。但好消息是我們已經調整了損益表，我們已經加強了它，並且當我們看到機會出現時我們可以調整前進。

So while we're delivering both sales and profit growth along with increases in brand support in the middle of the P&L, it's clearly a healthier way to drive the business.

因此，雖然我們在損益表中實現了銷售額和利潤的增長以及品牌支持的增加，但這顯然是推動業務的更健康的方式。

If I look at the Hill's business, we're still seeing high levels of cost inflation, as you've heard us talk about in the first quarter, and gross margins are still down year-over-year. So we've taken additional pricing to get the right margin structure for this business for the long term. Much of the Hill's volume decline in the quarter was in emerging markets as much of the time is due to go-to-market changes or shipments that we had. The good news is the EMEA or our Europe business, and particularly there we were strong, U.S. volumes were only down slightly in the quarter against a very difficult comparison with pricing as you saw up in the teens. But we're focused on getting Hill's back to volume growth the right way. This is a business that responds very well to science-driven innovation and strong advertising. We want to make sure that it's well funded and through the gross margin expansion that you've seen. And Hill's saw the biggest advertising increases in brand building in this quarter and will continue to fuel that investment.

如果我看看希爾的業務，我們仍然看到高水平的成本通脹，正如您在第一季度聽到我們談論的那樣，並且毛利率仍然同比下降。因此，我們採取了額外的定價，以獲得該業務長期正確的利潤結構。 Hill 本季度銷量下降的大部分是在新興市場，因為大部分時間是由於市場變化或我們的發貨量造成的。好消息是歐洲、中東和非洲地區或我們的歐洲業務，尤其是我們在該地區的業務表現強勁，美國的銷量在本季度僅略有下降，而與您在十幾歲時看到的定價進行比較非常困難。但我們的重點是讓 Hill's 以正確的方式恢復銷量增長。這是一個對科學驅動的創新和強有力的廣告反應非常好的企業。我們希望確保它有充足的資金並通過您所看到的毛利率擴張。 Hill's 本季度在品牌建設方面的廣告增幅最大，並將繼續推動這一投資。

So I understand the importance of gaining volume growth, as you asked. We know we're all focused on that and as you are. But as I said, we want to do that in a way that sets us up structurally for long-term profitable growth. That means a good visibility towards restoring our gross margin to previous levels through revenue growth management and productivity that we've been talking about, well-funded advertising and the ability to drive operating leverage with the strong innovation that we're bringing to the market and healthier brands.

因此，正如您所問的，我理解獲得銷量增長的重要性。我們知道我們都專注於此，就像您一樣。但正如我所說，我們希望以一種能夠在結構上為長期盈利增長奠定基礎的方式做到這一點。這意味著通過我們一直在談論的收入增長管理和生產力、資金充足的廣告以及通過我們向市場推出的強大創新來提高運營槓桿的能力，我們可以很好地了解將毛利率恢復到以前的水平和更健康的品牌。

So with a lot of great work by Colgate people, we have gross margin, overheads and logistics trending positively. We just finished the first half where we increased advertising by 17%. We have put additional pricing in place. We have strong innovation across all the divisions and categories. And we have second half volume comps that are easier by about 500 basis points. So we feel we're very well positioned.

因此，通過高露潔員工的大量出色工作，我們的毛利率、管理費用和物流都呈積極趨勢。我們剛剛完成了上半年的廣告投放，增加了 17%。我們已經制定了額外的定價。我們在所有部門和類別中都擁有強大的創新能力。我們的下半年成交量比較容易下降約 500 個基點。所以我們覺得我們處於非常有利的位置。

So with that, let me turn it over to the other questions.

那麼，讓我把它轉向其他問題。

Our next question will come from Filippo Falorni of Citi.

我們的下一個問題將來自花旗銀行的 Filippo Falorni。

Just a follow-up on the prior question, Noel. You mentioned the need to take incremental pricing. Can you give us a little bit more color which category, country combination are you taking more pricing? What has been the response so far, and generally, like the magnitude relative to the prior price increases?

只是對前一個問題的跟進，諾埃爾。您提到需要採取增量定價。您能給我們提供更多信息嗎？哪個類別、哪個國家/地區組合您的定價更高？到目前為止，總體反應如何，比如相對於之前價格上漲的幅度？

Sure. And let me just come back to a quick finish on Dara's point. He asked about market shares. Dara, so our market share -- global market shares are up on toothpaste around the world. Strong growth obviously in Europe, a little softness in North America, as you've seen in the scanner data. And we're obviously addressing that as we go into the back half. Latin America shares look good. Asia shares look good. Africa shares look really, really strong. We're up or flat in all 11 markets where we read shares there. So overall, oral toothpaste shares are pretty good.

當然。讓我快速回顧一下達拉的觀點。他詢問了市場份額。達拉，所以我們的市場份額——全球牙膏市場份額正在上升。正如您在掃描儀數據中看到的那樣，歐洲的增長明顯強勁，北美的增長略有疲軟。當我們進入後半部分時，我們顯然正在解決這個問題。拉丁美洲股市看起來不錯。亞洲股市看起來不錯。非洲股市看起來非常非常強勁。在我們研究的所有 11 個市場中，我們的股價都是上漲或持平。所以總體來說，口服牙膏的股價還是不錯的。

Filippo, on your question regarding the pricing, certainly in some of the higher inflationary markets, we will probably still see pricing in the back half of the year. Take Turkey, take Argentina, take Pakistan and some of the other higher inflationary areas around the world. We took pricing in the second quarter in North America. Obviously, that had some impact on volume in the quarter, but we'll see deliberate and very focused pricing where we have margin pressure. On the Hill's business, clearly, we've seen ag prices accelerate through 2022 and into '23.

Filippo，關於你關於定價的問題，當然在一些通脹較高的市場，我們可能仍會在今年下半年看到定價。以土耳其、阿根廷、巴基斯坦和世界上其他一些通脹較高的地區為例。我們在北美第二季度進行了定價。顯然，這對本季度的銷量產生了一些影響，但我們會在面臨利潤壓力的情況下看到經過深思熟慮且非常集中的定價。顯然，在 Hill 的業務中，我們看到農產品價格在 2022 年和 23 世紀加速增長。

So we're taking pricing commensurate with that as we move into the back half. But it will be more isolated and targeted the bigger price increases are in the P&L. And as you heard us talk about, we took a lot of pricing in 2022. About 58% of the pricing in the P&L this year is flow-through from last year. So we still have a little bit to go, but most of it is in the P&L already.

因此，當我們進入後半部分時，我們將採取與之相稱的定價。但損益表中價格上漲幅度越大，它的孤立性和針對性就越強。正如您聽到我們談論的那樣，我們在 2022 年進行了大量定價。今年損益表中約 58% 的定價是去年的流量。所以我們還有一點路要走，但大部分已經在損益表中了。

Our next question will come from Bryan Spillane of Bank of America.

我們的下一個問題將來自美國銀行的 Bryan Spillane。

Noel, maybe just kind of tying it back to Dara -- maybe this ties back to Dara's question. But in the prepared remarks, you talked about -- on a percentage of sales basis, SG&A would be up in North America, Europe and Hill's to support volume acceleration. And I guess as we look through the results, it looks like it's been pretty good in Europe, like you've gained share.

諾埃爾，也許只是將其與達拉聯繫起來——也許這與達拉的問題聯繫在一起。但在準備好的發言中，您談到——以銷售額的百分比為基礎，北美、歐洲和 Hill's 的 SG&A 將上漲，以支持銷量加速。我想，當我們查看結果時，看起來歐洲的情況相當不錯，就像你獲得了份額一樣。

So maybe if you can, for some context, in terms of that investment, how much of it is -- like where has each of those geographies progressed relative to the investment? Is it right to read that you're having an impact in Europe and you still have some catch-up to do in North America? Just want to get some color on that.

因此，也許您可以在某些情況下，就該投資而言，其中有多少——比如每個地區相對於投資的進展如何？聽說你們在歐洲已經產生了影響，但在北美仍有一些工作要做，這是否正確？只是想對此有所了解。

Absolutely. Thanks, Bryan. Yes, I'll start with Europe. Obviously, we've increased investment there, and we're seeing terrific response to particularly the elmex and meridol brands where we've elevated our investment there, but likewise, on the Colgate brand. So a lot of the efforts that we've had on premium whitening have played out to drive incremental share in Europe. So that investment across that business is certainly playing out. But importantly, the investment in Europe is broader based than just Oral Care. We have a wonderful relaunch on Sanex, that's underway across Europe. We're putting investment behind that. We relaunched our Soupline business in France, which is a big business for us. And we've launched the Suavitel, the Soupline Hearts, which we're putting investment behind that.

絕對地。謝謝，布萊恩。是的，我將從歐洲開始。顯然，我們增加了在那裡的投資，我們看到了很好的反應，特別是 elmex 和 meridol 品牌，我們增加了在那裡的投資，但同樣，高露潔品牌也是如此。因此，我們在優質美白方面所做的許多努力已經發揮作用，以提高在歐洲的份額。因此，對該業務的投資肯定會發揮作用。但重要的是，歐洲的投資基礎更廣泛，而不僅僅是口腔護理。我們對 Sanex 進行了精彩的重新啟動，該活動正在歐洲各地進行。我們正在為此進行投資。我們在法國重新啟動了 Soupline 業務，這對我們來說是一項大業務。我們還推出了 Suavitel、Soupline Hearts，我們對此進行了投資。

So I think what's important is with operating margins back to growth, it's giving us a lot more flexibility to support a wide array of brands, particularly in Europe. And that would be the case likewise in Latin America, where we've obviously seen a little pickup in exchange. So on a local currency basis, we're getting more advertising. And I'd also point to the fact that we're getting more efficient and targeted with our advertising with some of our digital skills that we're implementing across the world.

因此，我認為重要的是營業利潤率恢復增長，這使我們能夠更加靈活地支持各種品牌，特別是在歐洲。拉丁美洲的情況也是如此，我們顯然看到了交換的小幅回升。因此，以當地貨幣計算，我們獲得了更多的廣告。我還想指出這樣一個事實，即通過我們在世界各地實施的一些數字技能，我們的廣告變得更加高效和有針對性。

North America, it's taking a little bit more time. You certainly have seen the promoted share fall off. But as I mentioned in my comments to Dara, the important thing is our non-promoted volume share is growing. And that's a clear reflection of the fact that we've increased support on the brand and building the health of the brand. If you look at the attributes of the Colgate brand, particularly in North America, we're seeing good movements in terms of how we measure the health of the equity. So good news there. Asia, likewise, good response. We've obviously seen a falloff on our biggest business, which is Darlie due to the price increase. But the Colgate business overall, where we've added more support similarly is responding very, very well. And we couldn't be more happy with the progress we're seeing in Africa on the Oral Care business with the elevated increase that we're seeing.

北美則需要更多時間。您肯定已經看到促銷份額下降了。但正如我在對 Dara 的評論中提到的，重要的是我們的非促銷銷量份額正在增長。這清楚地反映了我們增加了對品牌的支持並建立品牌健康的事實。如果你看看高露潔品牌的屬性，特別是在北美，我們會看到在衡量股票健康狀況方面發生了良好的變化。這是個好消息。亞洲也同樣反響良好。由於價格上漲，我們明顯看到我們最大的業務（Darlie）出現了下滑。但高露潔公司的整體業務（我們增加了更多類似的支持）的反應非常非常好。我們對非洲口腔護理業務所取得的進展感到非常高興，增長速度不斷加快。

Advertising doesn't respond immediately. It takes quarters after quarters of consistent growth. And what's important, back to the quality of the P&L, is that with the quality of the P&L where it is, it allows us to sustain that advertising. In this quarter, you obviously saw us increase it. And that's clearly the strategy because over the long term, consistent levels of advertising play out for brands the best.

廣告不會立即做出反應。這需要一個又一個季度的持續增長。回到損益表的質量，重要的是，隨著損益表的質量，它使我們能夠維持廣告。在本季度，您顯然看到我們增加了它。這顯然是我們的策略，因為從長遠來看，一致的廣告水平對品牌來說效果最好。

Our next question comes from Andrea Teixeira of JPMorgan.

我們的下一個問題來自摩根大通的安德里亞·特謝拉。

Noel, you mentioned the balanced volume and pricing, obviously, impressive to see some of the green shoots in Africa and Eurasia. Can you talk also about the brand support above the line you mentioned in North America and elaborate more on that? And obviously, that has been a main drag to global volumes. And I understand it takes time, of course, to see volume share rebound. But do you see in terms of like when should we see some improvement there as you talk to your customers?

諾埃爾，你提到了平衡的銷量和價格，顯然，看到非洲和歐亞大陸的一些萌芽令人印象深刻。您能否談談您提到的北美線以上的品牌支持並詳細說明這一點？顯然，這是全球銷量的主要拖累。當然，我知道銷量份額的反彈需要時間。但是，當您與客戶交談時，您是否認為我們什麼時候應該看到一些改進？

And then sorry to get a second part of the question, but I want to understand also your impressive rebound in margins in the quarter came through. Even looking at your prepared remarks, you mentioned raw material and packaging, you still ahead of 540 basis points negative impact.

然後很抱歉回答問題的第二部分，但我想了解您在本季度利潤率方面令人印象深刻的反彈已經實現。即使看看你準備好的言論，你提到了原材料和包裝，你仍然領先 540 個基點的負面影響。

So I'm thinking about the cadence of this inflation, if you can comment and then how we can expect that from here? I know you reiterated margins up, but I just want to see to the P&L, what would be the puts and takes there?

因此，我正在考慮這種通貨膨脹的節奏，如果您可以發表評論，那麼我們如何從這裡期待這一點？我知道你重申了利潤率的提高，但我只想看看損益表，看跌期權和持倉是多少？

Sure. Thanks, Andrea. So on above-the-line expenses, obviously, when you're in an environment of inflation and recovering cost and taking pricing either through list prices or revenue growth management, it involves a reallocation of your promotional dollars for 2 reasons. One, you want to ensure that when you're taking list price increases, you see that pricing in the market and you get consistency of implementation around the retail environment. So that was an important part of the second quarter pricing we took in North America. To do that, you need to pull back on some of your promotional volumes. That was done, one, because some of those promotional volumes are unprofitable.

當然。謝謝，安德里亞。因此，對於線上費用，顯然，當您處於通貨膨脹和恢復成本的環境中並通過標價或收入增長管理進行定價時，它涉及到促銷資金的重新分配，原因有兩個。第一，您希望確保在提高標價時，您可以看到市場定價，並且在零售環境中獲得一致的實施。因此，這是我們在北美採取的第二季度定價的重要組成部分。為此，您需要減少一些促銷量。這樣做的原因之一是，其中一些促銷量是無利可圖的。

So as I mentioned earlier, we are very focused in North America on building brand health and getting back to consistent delivery of share growth with advertising and innovation through simply -- and simply taking some of the reliance on promotions away. Did we pull back a little bit too much perhaps but we're going to be very thoughtful moving forward on how we put grocery net back into the North America business, to ensure that we continue to grow margins and obviously grow share at the same time. But we will ensure that, that happens in the back half. But I can tell you that we're going to be very thoughtful on how we approach all the categories relative to promotions to ensure we maintain the margins in the P&L.

因此，正如我之前提到的，我們在北美非常專注於建立品牌健康，並通過簡單地通過廣告和創新恢復份額增長，並簡單地消除對促銷的一些依賴。我們是否可能退縮得太多了，但我們將非常深思熟慮地推進如何將雜貨網重新引入北美業務，以確保我們繼續提高利潤率，同時明顯提高份額。但我們將確保這發生在後半場。但我可以告訴你，我們將非常仔細地考慮如何處理與促銷相關的所有類別，以確保我們維持損益表中的利潤。

And around the world, I think we were quite consistent with the above the line where we had list price increases. We were managing promotions. We'll have a little bit easier comps as we've talked about on pricing -- harder comps on pricing in the back half but easier on volume. So I think we'll see a better balance between our organic growth as we move through the back half of the year, but we'll still see a little bit of pricing moving through, as I mentioned, upfront.

在世界各地，我認為我們與標價上漲的情況非常一致。我們正在管理促銷活動。正如我們在定價方面討論的那樣，我們將有一些更容易的比較——後半部分的定價比較困難，但在數量上更容易。因此，我認為，隨著今年下半年的到來，我們的有機增長之間將會取得更好的平衡，但正如我所提到的，我們仍然會看到一些定價的變化。

On the margin line, clearly very pleased with the progress that we're making both at the gross profit level and the operating margin level. And I remind everyone that our gross profit does not include logistics and cost of goods. So if you take logistics, obviously, we had a very strong quarter relative to gross profit acceleration. And our SG&A was down despite the fact that we took a 20% -- we implemented a 20% increase in advertising.

在利潤率方面，顯然我們對毛利潤水平和營業利潤率水平所取得的進展非常滿意。我提醒大家，我們的毛利潤不包括物流和商品成本。因此，如果以物流為例，顯然，相對於毛利潤加速而言，我們的季度表現非常強勁。儘管我們的廣告費用增加了 20%，但我們的 SG&A 卻下降了。

Let me turn it over to Stan. He can give you a little bit of color on how we're thinking about raw materials phasing out through the balance of the second half.

讓我把它交給斯坦。他可以給你一些關於我們如何考慮通過下半年的平衡逐步淘汰原材料的信息。

Thanks, Noel. So raw materials, as we look towards the second half, we will see these moderate. But there are pockets that actually are going up, and predominantly, they're impacting Hill's. So around ag and proteins, those continue to escalate. So while on a year-on-year basis, these will moderate slightly coming off of the first half, there still will be a headwind in the second half of the year. Now we continue to drive funding the growth savings. The teams have done a really nice job on driving that productivity, and we will carry that through the back half of the year as well.

謝謝，諾埃爾。因此，當我們展望下半年時，原材料將保持溫和。但有些口袋實際上正在上漲，而且主要是對希爾的影響。因此，圍繞銀和蛋白質，這些問題繼續升級。因此，雖然與去年同期相比，這些因素將比上半年略有放緩，但下半年仍將面臨阻力。現在，我們繼續推動為增長節省提供資金。這些團隊在提高生產力方面做得非常出色，我們也將在今年下半年繼續保持這一成果。

So we do expect margin to improve in the second half and continue that momentum. And then obviously, just as we look at FX, it's going to bounce around here a bit. And in particular, we've seen pressure in Africa/Eurasia countries as well as Asia Pacific. So overall, we do expect margins to improve in the back half of the year.

因此，我們確實預計下半年利潤率將有所改善，並繼續保持這一勢頭。顯然，正如我們觀察外匯一樣，它會在這裡出現一些反彈。特別是，我們看到非洲/歐亞大陸國家以及亞太地區面臨壓力。因此，總體而言，我們確實預計今年下半年的利潤率將會改善。

Our next question is from Olivia Tong of Raymond James.

我們的下一個問題來自 Raymond James 的 Olivia Tong。

Great. First, can you just elaborate a little bit on what the impact of logistics is just so we can kind of compare you to your peers? And then specifically on the U.S., could you just talk about the path forward? I mean, we talked about the -- what's driven some of the challenges so far in terms of volume. But could you talk about the actions that you're planning to take for the second half, whether it's some relaxation in terms of the pullback and reinstating perhaps some of the promotion or other actions that you're planning to take with respect to the U.S.

偉大的。首先，您能否詳細說明一下物流的影響，以便我們可以將您與同行進行比較？那麼具體到美國，您能談談前進的道路嗎？我的意思是，我們討論了迄今為止在數量方面造成一些挑戰的原因。但您能否談談您計劃在下半年採取的行動，無論是在撤回方面有所放鬆，還是恢復一些促銷活動，或者您計劃對美國採取的其他行動？

Sure. Thanks, Olivia. I'd ask you to reference the Q on details on logistics. There's a lot more detail in there. And if you're not finding what you need, obviously follow-up with John and Stan afterwards. On the volume cadence, certainly, as you look at the back half, as I mentioned, the comps get much easier. But despite that, we're going to be very deliberate in how we think about volume creation in the back half. We're going to be thoughtful, as I mentioned, continuing to focus on the structure of the P&L, which we believe is absolutely imperative for the long-term sustainability of the company. We think that we can keep the gross margin accelerating, we'll keep the advertising in the P&L, and not simply chasing unprofitable volume. So we're going to be very focused on that.

當然。謝謝，奧利維亞。我建議您參考有關物流細節的問題。裡面還有很多細節。如果您沒有找到您需要的東西，顯然可以事後與約翰和斯坦聯繫。在音量節奏上，當然，正如我提到的，當你看後半部分時，比較變得容易得多。但儘管如此，我們仍將非常慎重地考慮如何考慮後半段的交易量創建。正如我提到的，我們將深思熟慮，繼續關注損益表的結構，我們認為這對於公司的長期可持續發展絕對是必要的。我們認為，我們可以保持毛利率加速增長，我們會將廣告保留在損益表中，而不是簡單地追逐無利可圖的銷量。所以我們將非常關注這一點。

That being said, we do expect a slightly heightened promotional environment in the back half. As cost tend to level out, we'll see probably a little bit more promotions. I will say that around the world today, we have not seen an elevated promotional environment. We are recently starting to see more volume being sold on promotions but not the frequency of promotions there or the depth of promotions in the market. So that's an important aspect. But we're going to be very deliberate in how we think about the promotional cadence in the back half, probably a little bit more in the U.S. But the rest of the world will be very targeted where we see competitive needs to put more money there. But so far, it's been quite constructive. And we continue to believe pushing our brands through innovation and top -- and advertising is the healthiest way to grow the business longer term.

話雖如此，我們確實預計下半年的促銷環境會略有加強。隨著成本趨於平穩，我們可能會看到更多的促銷活動。我要說的是，今天在世界各地，我們還沒有看到更高的促銷環境。我們最近開始看到促銷活動的銷量有所增加，但促銷頻率或市場促銷深度卻沒有增加。所以這是一個重要的方面。但我們將非常謹慎地考慮下半年的促銷節奏，在美國可能會更多一點。但世界其他地區將非常有針對性，我們認為有競爭性需要在那裡投入更多資金。但到目前為止，這是相當有建設性的。我們仍然相信，通過創新和頂級廣告來推動我們的品牌發展是實現業務長期增長的最健康方式。

Our next question will come from Jason English of Goldman Sachs.

我們的下一個問題將來自高盛的傑森·英格利希。

Stan mentioned earlier the elevated degree of inflation that's continuing to impact but also the new price increases. How should we expect them to translate into margins? I mean, it's good to see the moderation in gross margin expansion this quarter. But we're still down a lot from where we were. What is the right level of profitability for that business on a normalized basis? And what is the pathway to getting there?

斯坦早些時候提到，通貨膨脹率的升高正在繼續產生影響，但新的價格上漲也帶來了影響。我們應該如何期望它們轉化為利潤？我的意思是，很高興看到本季度毛利率擴張放緩。但我們仍然比原來的水平下降了很多。在正常化的基礎上，該業務的正確盈利水平是多少？到達那裡的途徑是什麼？

Yes. Thanks, Jason. So again, we are taking aggressive pricing across the Hill's business, as you've seen through the recent quarters, and we continue to see some inflationary prices on ag prices. Now do we think that's going to continue into '24? Unlikely, but we want to assure we continue to take pricing this year to recover that. Is there a number that we're targeting? No. We want to continue to do this in a very thoughtful way. We see real opportunities to continue to grow both gross profit and operating margin at Hill's in a healthy way quarter-to-quarter moving out, particularly given the pricing that we'll see flow through the back half of the P&L and hopefully a more benign cost environment.

是的。謝謝，傑森。因此，正如您在最近幾個季度所看到的那樣，我們在 Hill 的業務中採取了積極的定價，並且我們繼續看到農產品價格出現一些通貨膨脹。現在我們認為這種情況會持續到 24 世紀嗎？不太可能，但我們希望確保今年繼續採取定價來恢復這一水平。我們有一個目標數字嗎？不。我們希望繼續以一種非常深思熟慮的方式來做這件事。我們看到了希爾的毛利潤和營業利潤率繼續以健康的方式逐季度增長的真正機會，特別是考慮到我們將看到損益表後半部分的定價，並希望有一個更良性的定價成本環境。

We also have mixed opportunities that we're very focused on as we get the new Tonganoxie plan up and running and the wet -- and we get wet capacity building that will allow a little bit of margin accretion on mix. So we're pleased with that. We're getting the productivity through the plants operating more efficiently. So we'll see that. And obviously, as the private label business comes off, that will be a natural organic accretion to both gross profit and operating profit at the end. So good aspects to -- as we see the business projecting over time. We're going to ensure that we're competitive relative to pricing in the market. We're going to continue to ensure that we keep the high levels of advertising there on the Hill's business, which you saw in the quarter. So overall, we feel pretty good about the phasing of gross profit accretion moving forward.

當我們啟動並運行新的 Tonganoxie 計劃和濕地時，我們也有非常關注的混合機會 - 我們得到了濕地產能建設，這將允許混合上增加一點利潤。所以我們對此感到滿意。我們通過工廠更高效的運營來提高生產力。所以我們會看到這一點。顯然，隨著自有品牌業務的發展，最終毛利潤和營業利潤將自然而然地有機增長。正如我們看到的隨著時間的推移業務的發展，這是非常好的方面。我們將確保我們在市場定價方面具有競爭力。我們將繼續確保 Hill 的業務保持高水平的廣告，正如您在本季度看到的那樣。因此，總體而言，我們對未來毛利潤增長的階段性感到非常滿意。

Our next question will come from Steve Powers of Deutsche Bank.

我們的下一個問題將來自德意志銀行的史蒂夫·鮑爾斯。

I wanted to ask more of a general question on the state of the advertising industry as you see it. You talked obviously making increases, the 20% increase this quarter. I guess the question I'm left with is just how you're seeing the efficacy of that advertising. Do you believe the efficacy is up commensurate with the increased dollar investment? Or is there inflation or other dynamics cutting into that efficacy just as you see the environment today as you plan ahead?

我想就您所看到的廣告行業的狀況提出更多一般性問題。您顯然談到了增加，本季度增加了 20%。我想我剩下的問題就是你如何看待該廣告的效果。您認為功效的提高與美元投資的增加相稱嗎？或者，正如您在未來計劃中看到的今天的環境一樣，是否存在通貨膨脹或其他動態因素會削弱這種功效？

Yes. Thanks, Steve. I'll take you back to CAGNY. When Yves presented a lot of our digital advancement and the digital transformation and ultimately how our focus on digital advertising is yielding a much higher ROI, we have the ability to analytically measure that much more effectively than we have in the past. Our copy effectiveness is getting much better. So we're seeing the efficacy delivered there through the brand health measures that I talked about earlier. We're obviously spending more money on generating first-party data. That allows us to obviously look more holistically across the market and get more targeted media that's more personalized and effective, which has been terrific. And as I mentioned upfront, the non-promoted volume share in the U.S. is a big metric for us, because that clearly indicates that our advertising is driving more non-promoted share. So we were up about 100 basis points in non-promoted share. And that's excellent. That's exactly what we want.

是的。謝謝，史蒂夫。我會帶你回卡尼。當 Yves 介紹了我們的數字化進步和數字化轉型，以及最終我們對數字廣告的關注如何產生更高的投資回報率時，我們有能力比過去更有效地進行分析衡量。我們的文案效率正在變得越來越好。因此，我們看到了通過我之前談到的品牌健康措施所帶來的功效。顯然，我們在生成第一方數據上花費了更多的錢。這使我們能夠更全面地審視整個市場，並獲得更有針對性、更個性化和更有效的媒體，這非常棒。正如我之前提到的，美國的非促銷銷量份額對我們來說是一個重要指標，因為這清楚地表明我們的廣告正在推動更多的非促銷份額。因此，我們的非促銷份額上漲了約 100 個基點。那太好了。這正是我們想要的。

Now we may have pulled back, as I mentioned, a little too much on the promotion, but we'll get the balance right as we move forward. So the efficacy overall, we're very pleased. And that's clearly demonstrated in some of the market share performances we have around the world where we've had elevated advertising to support that, particularly across some of the brands -- non-Colgate brands. I mentioned Sanex in Europe. We talked about the Suavitel business and the Axion business in Mexico, which is obviously well supported. So overall, we see a more healthy balance of advertising across our categories. And over time, this is going to lead to more sustainable growth.

正如我所提到的，現在我們可能在促銷活動上退縮得太多了，但隨著我們的前進，我們會取得正確的平衡。所以整體的功效，我們非常滿意。這在我們在世界各地的一些市場份額表現中得到了清楚的體現，我們通過加大廣告力度來支持這一點，特別是在一些品牌（非高露潔品牌）中。我提到了歐洲的 Sanex。我們談到了墨西哥的Suavitel業務和Axion業務，顯然得到了很好的支持。總體而言，我們看到各個類別的廣告更加健康地平衡。隨著時間的推移，這將帶來更可持續的增長。

Our next question will come from Robert Ottenstein of Evercore ISI.

我們的下一個問題將來自 Evercore ISI 的 Robert Ottenstein。

Great. A quick follow-up and then my other question. Where your volumes are down, particularly in the U.S.? Has that gone to competitors? Or is it more of a function of consumers postponing purchase or orders being postponed? So that's just kind of the follow-up.

偉大的。快速跟進，然後是我的另一個問題。你們的銷量在哪裡下降，特別是在美國？這些錢都流向了競爭對手嗎？或者更多的是消費者推遲購買或訂單推遲的結果？這只是後續行動。

And then my main question is where you see yourself in digital and e-commerce. Arguably, a few years ago, you were unsatisfied and have made a lot of investments, and they're certainly panning out particularly in China. Do you believe that you're kind of where you need to be, to be fully competitive globally in digital and e-commerce now?

然後我的主要問題是你如何看待自己在數字和電子商務中的地位。可以說，幾年前，你並不滿意，並進行了大量投資，而且它們肯定會取得成功，尤其是在中國。您是否認為您現在已經達到了在數字和電子商務領域具有全面全球競爭力的目標？

Yes. Thanks, Rob. So on the volume, particularly in the U.S., as I mentioned already, we saw some -- our promoted share fall off across a couple of our categories in the U.S. as we pulled back on some of the promotions and established some of the new pricing. Where it's gone to is a multitude of the competitors, obviously, where they have not pulled back on their promotional levels as much. And therefore, we saw a little bit of migration to them. But clearly, that consumer typically responds to promotions, whether it's couponing or otherwise. And they're not that difficult to get back, but we want to get -- we want to get those consumers back in a much healthier way moving forward. So the overall structure of the U.S. P&L improves, and that's pretty consistent around the world. When you pull back on promotions, you're going to have a highly driven consumer that looks at pricing and value, and you need to ensure that you're obviously providing that value moving forward. So we'll get the balance right.

是的。謝謝，羅布。因此，在數量上，特別是在美國，正如我已經提到的，我們看到了一些——隨著我們取消了一些促銷活動並製定了一些新的定價，我們在美國的幾個類別的促銷份額有所下降。顯然，它的目標是眾多競爭對手，他們並沒有大幅降低促銷水平。因此，我們看到了一些向他們的遷移。但顯然，消費者通常會對促銷活動做出反應，無論是優惠券還是其他形式。讓他們回來並不難，但我們希望——我們希望以一種更健康的方式讓這些消費者回來，繼續前進。因此，美國損益表的整體結構有所改善，這在世界範圍內相當一致。當你取消促銷活動時，你將擁有一個高度驅動的消費者，他們會關注定價和價值，並且你需要確保你明顯地提供了前進的價值。所以我們會取得正確的平衡。

Our digital -- on that, we've talked a lot about our digital transformation. Yes, 3 years ago, we weren't where we needed to be. And I would say we're very, very pleased with where we are today. We do an external study with BCG, which assesses all of our peer group vis-a-vis their digital capabilities. And 3 years ago, we were below the peer group. Today, we are above the peer group. And we're not best-in-class yet, so we feel we've got more room to go. And Brigitte and Diana and Prabha and all the operating units are very focused on this, and we feel we've got good plans in place to continue to advance that. And our goal is absolutely to become best-in-class.

我們的數字化——在這方面，我們已經談論了很多關於我們的數字化轉型的事情。是的，三年前，我們還沒有達到我們需要達到的目標。我想說，我們對今天的處境非常非常滿意。我們與 BCG 進行了一項外部研究，評估了我們所有同行群體的數字能力。三年前，我們的水平低於同行。今天，我們超越了同行。而且我們還不是同類中最好的，所以我們覺得我們還有更多的空間。 Brigitte、Diana、Prabha 以及所有運營部門都非常關注這一點，我們認為我們已經制定了良好的計劃來繼續推進這一目標。我們的目標絕對是成為一流的。

Next question is from Lauren Lieberman of Barclays.

下一個問題來自巴克萊銀行的勞倫·利伯曼。

Great. I was hoping to maybe talk a little bit about Latin America. I know it's a market where you've been putting a lot of premium innovation in place. It's been a core part of the strategy, particularly in Oral Care. And yet there's significant inflation in some markets. So I was just curious for an update there maybe on premiumization versus affordability, what you're seeing in terms of consumer trends outside of the reported results, but kind of what the dynamics are from a consumer environment standpoint and how you're managing those 2 ends of the pricing ladder.

偉大的。我希望能談談拉丁美洲。我知道這是一個您一直在實施大量優質創新的市場。這是該戰略的核心部分，特別是在口腔護理領域。然而，一些市場卻出現了嚴重的通貨膨脹。因此，我只是好奇關於高端化與可負擔性的更新，您在報告結果之外的消費者趨勢方面看到了什麼，但從消費者環境的角度來看，動態是什麼以及您如何管理這些動態定價階梯的兩端。

Yes. Thanks, Lauren. So you saw the results, another strong organic sales growth for Latin America. And pleasingly, after 5 quarters of double-digit pricing, we saw volume improve in Latin America. And I think this is a good proxy for as we think about pricing in other markets and coupling that with strong advertising, ultimately the volume will come back. It's a quite resilient consumer. They're accustomed to inflationary pricing. But as long as you're bringing a collection of strong innovation and continuing their brand support, which is vitally important to come out of these tougher times with stronger brands, you see the volume return to category. So both Mexico and Brazil delivered volume growth in the quarter and both had very strong growth organically given the fact that they also took pricing.

是的。謝謝，勞倫。所以你看到了結果，拉丁美洲的有機銷售再次強勁增長。令人高興的是，在連續五個季度兩位數定價之後，我們看到拉丁美洲的銷量有所改善。我認為這是一個很好的指標，因為我們考慮其他市場的定價並將其與強大的廣告相結合，最終銷量會回來。這是一個相當有彈性的消費者。他們已經習慣了通貨膨脹的定價。但只要你帶來一系列強大的創新並繼續他們的品牌支持（這對於讓更強大的品牌走出這些艱難時期至關重要），你就會看到銷量回歸類別。因此，墨西哥和巴西在本季度都實現了銷量增長，而且考慮到它們也採取定價，兩者的有機增長都非常強勁。

So overall, really pleased with what we're seeing in Latin America. And likewise, we're seeing the velocity and the turns improve more than we anticipated given some of the inflationary pressures in those markets. Now we shall watch it very carefully as the inflation continues to mount. But overall, structurally the P&Ls are in good shape, and the consumer seems to be quite responsive to the innovation and the pricing that we're putting in the market. So overall, we feel we're in a very good place.

總的來說，我們對拉丁美洲所看到的情況非常滿意。同樣，考慮到這些市場的一些通脹壓力，我們看到速度和周轉率的改善超出了我們的預期。現在，隨著通貨膨脹的繼續加劇，我們將非常仔細地觀察它。但總體而言，從結構上看，損益表狀況良好，消費者似乎對我們投放市場的創新和定價非常敏感。總的來說，我們覺得我們處於一個非常好的位置。

Question is from Mark Astrachan of Stifel.

問題來自 Stifel 的 Mark Astrachan。

Wanted to ask a question on the Hill's business. Again, just maybe thinking about category in your business. So how are you thinking -- or what are you observing from the category standpoint? We can obviously see somewhat U.S. data, but curious how you think about it around the world, that volumes overall are a little bit weaker. How much of that is a reflection of just all the pricing that you and your competitors are taking?

想問一下關於山莊生意的問題。再說一次，也許只是考慮一下你的業務類別。那麼您是如何思考的——或者您從品類的角度觀察到了什麼？我們顯然可以看到一些美國數據，但好奇你如何看待世界各地的數據，總體銷量有點弱。其中有多少反映了您和您的競爭對手所採用的所有定價？

Is there some of just sort of pause within the category over the -- after the last couple of years of really strong growth and adoption levels? And then longer term, how do you think about -- and maybe this goes to Jason's question a little bit, but how do you think about the contribution to price and mix and volumes for that business over time? And how does that contribute to improving margins relative to where we are.

在過去幾年真正強勁的增長和採用水平之後，該類別是否存在某種暫停？然後從長遠來看，你如何看待——也許這有點符合傑森的問題，但你如何看待隨著時間的推移對該業務的價格、組合和銷量的貢獻？相對於我們目前的情況，這如何有助於提高利潤率？

Yes. Thanks, Mark. So clearly, another strong quarter for Hill's, double-digit organic sales growth. despite lapping. And I remind everyone that we're lapping 18% growth in the year ago period. So obviously, a really strong quarter. And the quarter a year ago was mid-single-digit volume, so ultimately, a good quarter. And on a 2-year stack, we were up. So looking quite strong. Categories softened a little bit towards the end of the category -- I mean, excuse me, the end of the quarter. You would expect that given the amount of pricing that's gone into that over the last 3 or 4 quarters. But overall, Europe continues to be very strong. U.S., strong despite very high comps.

是的。謝謝，馬克。顯然，希爾的另一個強勁季度實現了兩位數的有機銷售增長。儘管有研磨。我提醒大家，我們去年同期的增長率為 18%。顯然，這是一個非常強勁的季度。一年前的季度銷量僅為個位數，因此最終是一個不錯的季度。從 2 年的堆棧來看，我們已經領先了。所以看起來還是蠻強的。類別在接近類別末時有所軟化 - 我的意思是，對不起，季度末。考慮到過去 3 或 4 個季度的定價量，您可能會想到這一點。但總體而言，歐洲仍然非常強勁。美國，儘管競爭非常高，但仍然很強大。

We anticipate that we'll see a little bit of sluggishness as we move forward in the categories, only because of all the pricing that's been taken. But that will be more around the discretionary items in pet specialty than food. Nutrition seems to be okay. I walked stores with some of the CEOs of the big pet specialty retailers recently, and they seem quite bullish relative to the nutritional and particularly the premium segment of the market, where you don't see a live elasticity in terms of when consumers trade off of diets, particularly on our prescription side. But we're going to have to watch that quite carefully because there's been a lot of pricing that's going into the category.

我們預計，隨著我們在類別中前進，我們會看到一些低迷，這只是因為所有定價都已被採取。但這將更多地圍繞寵物專業的非必需品而不是食品。營養好像還可以。最近，我與一些大型寵物專業零售商的首席執行官一起走訪了商店，他們似乎對營養品市場，尤其是高端市場相當看好，在該市場中，消費者在進行權衡時看不到實時彈性飲食，特別是在我們的處方方面。但我們必須非常仔細地觀察這一點，因為該類別中有很多定價。

Emerging markets continues to be a real growth opportunity for us. It's small for us right now, but we need to continue to focus on those opportunities, particularly in Latin America -- in Southeast Asia, to a certain extent. So overall, you'll see us focus on those moving forward. But the categories continue to be quite robust, particularly given the growth headwind -- growth head space that we have in emerging markets given we don't have high penetration there. So overall, we feel pretty good, but we're cautious on ultimately how the category continues to evolve from a volume standpoint as we see a lot of pricing going in those categories. But again, getting the P&L structured right, getting gross margin up consistently over the next couple of quarters will be very important for us to maintain the high advertising levels that are so critical to drive penetration in that category.

新興市場仍然是我們真正的增長機會。目前對我們來說還很小，但我們需要繼續關注這些機會，特別是在拉丁美洲和東南亞，在某種程度上。總的來說，您會看到我們專注於那些前進的事情。但這些類別仍然相當強勁，特別是考慮到增長的逆風——我們在新興市場的增長空間，因為我們在新興市場的滲透率不高。總的來說，我們感覺很好，但我們對該類別最終如何從銷量的角度繼續發展持謹慎態度，因為我們看到這些類別的定價很高。但同樣，正確的損益表結構、在未來幾個季度持續提高毛利率對於我們保持高廣告水平非常重要，而這對於推動該類別的滲透率至關重要。

Our next question is from Chris Carey of Wells Fargo Securities.

我們的下一個問題來自富國銀行證券的克里斯·凱里。

So just a couple quick follow-ups for me. Just -- and apologies for asking a North America question. This is more about making sure expectations are set and we know how to think about this going forward. But a little bit of promotions come back in, but you're really focusing on a more sustainable total P&L. Could still see some volume pressure for a bit until you lap some of these strategy adjustments that you made. And by the time we get beyond that, perhaps the volumes start to smooth out a bit more. So am I characterizing that correctly?

所以對我來說只有幾個快速跟進。只是——並對提出北美問題表示歉意。這更多的是為了確保設定預期，並且我們知道如何思考未來的情況。但一些促銷活動又回來了，但你真正關注的是更可持續的總損益。在您完成所做的一些策略調整之前，仍然可能會遇到一些成交量壓力。當我們超越這個目標時，也許體積開始變得更加平滑。那麼我的描述正確嗎？

And then second, just a quick clarification or follow-up. Olivia asked a question about freight. I think the 10-Q just says the year-over-year change. Stan, you had said 9.5% of sales was the freight number in Q1, and you expected it to trend low 9s for the rest of the year. Did that come through in the quarter? So thanks so much on those 2 items.

其次，只是快速澄清或跟進。奧利維亞詢問了有關運費的問題。我認為 10-Q 只是說明同比變化。斯坦，您曾說過第一季度銷售額的 9.5% 是貨運量，您預計今年剩餘時間貨運量將呈低 9 的趨勢。這個季度實現了嗎？非常感謝這兩件事。

Let me -- Stan answer the logistics question, then I'll get back to your North American question.

讓我——斯坦回答後勤問題，然後我會回到你的北美問題。

Yes. So logistics is playing out like we expected and improved slightly from the previous quarter. And we expect that, that improvement will also continue in the second half.

是的。因此，物流的發展正如我們預期的那樣，並且比上一季度略有改善。我們預計，這種改善也將在下半年繼續下去。

On -- Chris, on North America, so I think you said it well. I mean, we're looking very deliberately to improve the structure of that P&L as we move forward. Again, it's the inherent objective there is to improve brand health. So we will clearly continue to fund advertising. We will be very choiceful on where we start to look at elevating promotions to recover some of that promotional share. Our focus is driving non-promoted share moving forward. But we need to be careful that we're not pulling back too much there. So we'll monitor that moving forward. And we'll see. I think from quarter-to-quarter, there will be a little bit of volatility in the gross margin line as we move forward as we see costs ultimately level out and where the pricing and the mix ends up.

關於——克里斯，關於北美，所以我認為你說得很好。我的意思是，隨著我們的前進，我們正在非常刻意地改進損益表的結構。同樣，改善品牌健康是其固有目標。因此，我們顯然將繼續資助廣告。我們將非常謹慎地選擇從哪裡開始考慮提升促銷活動，以收回部分促銷份額。我們的重點是推動非促銷份額的發展。但我們需要小心，不要在這方面撤退太多。因此，我們將密切關注這一進展。我們拭目以待。我認為，從季度到季度，隨著我們看到成本最終趨於平穩以及定價和組合的最終結果，毛利率線將會出現一些波動。

But we feel good about the back half relative to our ability to continue to drive operating margin expansion. I remind everyone that North America -- the North America HPC business is about 20% of our total business. And what is so nice about the Colgate business is that we have such diversity of our business around the world that as we need to fund opportunities in North America or Asia, we will have the ability to pull from certain regions around the world. So we're well balanced in that regard. And I think North America has a good plan for the back half, and we'll be very deliberate on their spending, and their focus on recovering some of the share loss that we've had in the quarter.

但相對於我們繼續推動營業利潤率擴張的能力，我們對下半年感到滿意。我提醒大家，北美——北美HPC業務大約占我們總業務的20%。高露潔業務的優點在於，我們在世界各地擁有如此多元化的業務，當我們需要為北美或亞洲的機會提供資金時，我們將有能力從世界各地的某些地區汲取資金。所以我們在這方面做得很好。我認為北美對於下半年有一個很好的計劃，我們將非常謹慎地對待他們的支出，以及他們的重點是彌補我們在本季度所遭受的一些份額損失。

Our last question will come from Peter Grom of UBS.

我們的最後一個問題將來自瑞銀集團的彼得·格羅姆。

So I wanted to just circle back to the top line growth, which the second half organic sales guidance is still relatively wide and implies a decent flow, which makes sense as you start to cycle pricing. Can you maybe just talk about the moving pieces that would put organic revenue growth at the higher end or the lower end of that range as we move forward here?

因此，我想回到營收增長，下半年的有機銷售指導仍然相對廣泛，並且意味著不錯的流量，當您開始循環定價時，這是有意義的。您能否談談當我們向前推進時，哪些因素會使有機收入增長處於該範圍的高端或低端？

And maybe specifically, you mentioned several times throughout this call the sequential improvement on a 2-year stack for volume. And just given the step up in investment and innovation, should we expect that trend to continue as we move into the back half of the year?

也許具體地說，您在整個電話會議中多次提到了 2 年堆棧數量的連續改進。鑑於投資和創新的加強，我們是否應該期望這種趨勢在進入今年下半年時會繼續下去？

Yes. So it's tough to nail down exactly how the balance will end up. I mean, we'll have to watch it very carefully. It's going to differ by category and by geography. But clearly, the comps get easier from a volume standpoint in the back half. You heard me mention around 500 basis points. So that will certainly be a nice tailwind for us. And obviously, the comps on pricing get a little bit more challenging in the back half as we move forward. But we feel very good relative to the guidance that we provided and comfortable that we can achieve that. We'll see how the categories behave as the consumer continues to be rather fickle around the world. But as I mentioned, it's been very constructive promotionally.

是的。因此很難確定最終的平衡結果如何。我的意思是，我們必須非常仔細地觀察。它會因類別和地理位置而有所不同。但顯然，從後半場的音量角度來看，比賽變得更加容易。你聽到我提到了大約 500 個基點。所以這對我們來說肯定是一個很好的推動力。顯然，隨著我們的前進，後半段的定價比較變得更具挑戰性。但相對於我們提供的指導，我們感覺非常好，並且對我們能夠實現這一目標感到滿意。我們將看看隨著世界各地消費者的變化無常，這些品類將如何表現。但正如我所提到的，這是非常有建設性的促銷。

And so far, the resilience, particularly in markets like Latin America, and to a certain extent, Africa, had been very, very good where we've taken a lot of pricing. We'll watch North America quite closely. And obviously, we think we continue to have a lot of hedge based on the Hill's business as we continue to drive penetration and share growth, which, incidentally, I didn't talk shares on Hill's. They continue to respond very, very well with share growth in the quarter across most of our recipes, which is terrific. So we feel good about where we are in the guidance and we'll see where it ultimately ends up. Obviously, if there's upside, we'll take it. But we feel good that we're in a range that is responsible to continuing to keep the structure of the P&L the way it is.

到目前為止，彈性非常非常好，特別是在拉丁美洲和非洲等市場，我們在這些市場進行了大量定價。我們將密切關注北美。顯然，我們認為隨著我們繼續推動滲透率和份額增長，我們將繼續基於希爾的業務進行大量對沖，順便說一句，我沒有談論希爾的股票。他們的反應繼續非常非常好，我們大多數食譜的份額在本季度都有增長，這非常棒。因此，我們對指南中的位置感到滿意，我們將看到它最終的結果。顯然，如果有好處，我們就會接受。但我們感覺很好，因為我們處於一個有責任繼續保持損益表結構不變的範圍內。

A relative to the second part of your question was on was on advertising, Peter? Or what was it on?

與你問題的第二部分有關的是廣告，彼得？或者說那是什麼？

No, it was just the sequential improvement on a 2-year stack basis. Just recognizing that the comps get easier, if the 2-year stack improves, what does that actually imply? Because it would seem to imply it does improve that there could be some nice improvement in return to volume growth in the back half of the year?

不，這只是 2 年堆棧基礎上的連續改進。只是認識到比較變得更容易，如果 2 年堆棧有所改善，這實際上意味著什麼？因為這似乎意味著它確實有所改善，下半年銷量增長的回報可能會有一些不錯的改善？

Yes, exactly. And you said it well. I think we'll start to see a return to volume growth in the back half of the year. The 2-year stacks, as I mentioned upfront, have continued to accelerate. We'll have to -- my expectation, you'd probably see that moderate a bit as we move through the back half. But volumes will improve. And as I mentioned, we still have some pricing coming through that we've taken this year, so we'll see the benefit of that, and a little bit of the flow-through from last year. So overall, I think we'll have a more balanced composition as we move through the back half of the year.

對，就是這樣。而且你說得很好。我認為我們將在今年下半年開始看到銷量增長恢復。正如我前面提到的，兩年堆棧持續加速。我們必須——我的期望是，當我們進入後半場時，你可能會看到這種情況有所緩和。但銷量將會有所改善。正如我所提到的，我們今年仍然有一些定價，所以我們會看到它的好處，以及去年的一些流量。總的來說，我認為今年下半年我們的構成將會更加平衡。

This concludes the Q&A portion of the call.

電話問答部分到此結束。

Okay, I think that's -- great. Well, thank you, everyone, and thanks for the questions this morning. We continue to appreciate your interest in our company. Clearly, we had a strong quarter, and I hope you agree, the strategies and the plans in place to deliver consistent compounded profitable growth are there, and that will allow us to drive increased shareholder value. We couldn't do this without the incredible efforts from Colgate people all over the world, who continue to focus on execution of our strategy and the consistency of delivery. So I thank them and I look forward to talking to everyone in the third quarter.

好吧，我認為這——太棒了。好的，謝謝大家，也謝謝今天早上提出的問題。我們繼續感謝您對我們公司的興趣。顯然，我們有一個強勁的季度，我希望您同意，實現持續複合利潤增長的戰略和計劃已經存在，這將使我們能夠提高股東價值。如果沒有世界各地的高露潔員工的巨大努力，我們不可能做到這一點，他們繼續專注於我們戰略的執行和交付的一致性。所以我感謝他們，並期待在第三季度與大家交談。

The conference has now concluded. We thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。我們感謝您參加今天的演講。您現在可以斷開線路。