Diversey Holdings Ltd (DSEY) 2022 Q2 法說會逐字稿

Greetings and welcome to Diversey Holdings Second Quarter 202 Earnings Conference Call. (Operator Instructions)

您好，歡迎參加泰華施控股 202 年第二季度收益電話會議。 （操作員說明）

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

I would now like to turn this conference over to your host, Mr. Grant Graver, Investor Relations. Thank you, sir. You may begin your presentation.

現在我想把這次會議交給東道主投資者關係部門的格蘭特·格雷弗先生。謝謝你，先生。您可以開始您的演示了。

Thank you. Hello, everyone, and welcome to Diversey's Second Quarter 2022 Earnings Call. With me today are Phil Wieland, our Chief Executive Officer; and Todd Herndon, our Chief Financial Officer.

謝謝。大家好，歡迎參加泰華施 2022 年第二季度收益電話會議。今天與我在一起的有我們的首席執行官菲爾·維蘭德 (Phil Wieland)；以及我們的首席財務官托德·赫恩登 (Todd Herndon)。

As a reminder, during this call, we will make forward-looking statements. Some risk factors that may impact these statements and could cause actual future results to differ materially from our projected results are described in this morning's press release and in the reports we file with the SEC. The company does not undertake any duty to update such forward-looking statements.

提醒一下，在這次電話會議中，我們將做出前瞻性陳述。今天上午的新聞稿和我們向 SEC 提交的報告中描述了一些可能影響這些陳述並可能導致未來實際結果與我們的預測結果存在重大差異的風險因素。公司不承擔更新此類前瞻性陳述的任何義務。

On today's call, the company will discuss certain non-GAAP measures and make reference to the supplemental data, which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures and reference supplemental data can be found on our website at ir.diversey.com and in our most recent annual report.

在今天的電話會議上，公司將討論某些非公認會計準則衡量標準，並參考補充數據，我們認為這些數據有助於評估我們的業績。不應孤立地考慮此附加信息的呈現，也不應將其視為根據 GAAP 準備的結果的替代品。您可以在我們的網站 ir.diversey.com 和我們最近的年度報告中找到這些非 GAAP 衡量標準和參考補充數據的調節表。

I'll now turn the call over to Phil.

我現在將把電話轉給菲爾。

Good morning, everyone. I want to start with the headlines of our Q2 results, about which I'm very proud, and explain why they make me continue to feel so positive about the long term.

大家，早安。我想從我們第二季度業績的頭條新聞開始，我對此感到非常自豪，並解釋為什麼它們讓我對長期發展繼續感到如此積極。

Firstly, revenue improved by 10% as compared to the prior year and over 20% on a constant currency basis, reflecting strong organic growth in both pricing and new customer wins.

首先，收入較上年增長 10%，按固定匯率計算增長超過 20%，反映出定價和新客戶贏得方面的強勁有機增長。

Secondly, growth was strong across both our Institutional and Food and Beverage businesses, which increased by 7% and 18%, respectively, or 17% and 29% on a constant currency basis.

其次，我們的機構業務和食品飲料業務均增長強勁，分別增長 7% 和 18%，按固定匯率計算分別增長 17% 和 29%。

And thirdly, adjusted EBITDA margins improved sequentially by 330 basis points to 12.4%. As we stated last time we spoke, we expect our consolidated margins to improve quarter-on-quarter throughout the year as our pricing and cost initiatives are implemented.

第三，調整後 EBITDA 利潤率環比提高 330 個基點，達到 12.4%。正如我們上次所說，隨著我們的定價和成本計劃的實施，我們預計全年的綜合利潤率將環比提高。

Our second quarter results reflect our commitment to driving revenue growth while improving margins in our $46 billion market where we are 1 of only 2 global players.

我們第二季度的業績反映了我們致力於推動收入增長，同時提高 460 億美元市場的利潤率，我們是全球僅有的兩家參與者之一。

Now moving to the macro environment. We're clearly operating in challenging times with COVID, rising inflation, supply chain bottlenecks and other operating factors, including currency exchange rates. I've been extremely pleased with the resiliency of our business model and our management team's agility in the short term while maintaining focus on our long-term growth goals.

現在轉向宏觀環境。顯然，我們正處於新冠疫情、通脹上升、供應鏈瓶頸和其他運營因素（包括貨幣匯率）的挑戰時期。我對我們業務模式的彈性和管理團隊在短期內的敏捷性感到非常滿意，同時保持對長期增長目標的關注。

Let me give you a couple of highlights of our current initiatives. Firstly, we've been focused on pricing to cover inflation. While input costs have continued to rise, we're implementing price increases across our various geographies and products. In the second quarter, we realized more than 10% revenue growth from pricing, and I expect this level of pricing to increase further as we move through the year. To date, our price increases have been well accepted, as evidenced by our more than 20% constant currency revenue growth in Q2. We expect the majority of these increases to remain intact, reflecting the value Diversey provides to its customers.

讓我向您介紹我們當前舉措的幾個亮點。首先，我們一直專注於定價以應對通貨膨脹。雖然投入成本持續上升，但我們正在對不同地區和產品實施價格上漲。第二季度，我們通過定價實現了超過 10% 的收入增長，我預計這一定價水平將在今年內進一步提高。迄今為止，我們的提價已被廣泛接受，第二季度貨幣收入恆定增長超過 20% 就證明了這一點。我們預計大部分增長將保持不變，反映泰華施為其客戶提供的價值。

Secondly, we've continued to focus on controlling our fixed costs and leveraging our variable costs. Our second quarter adjusted EBITDA margin, which improved by 330 basis points versus the prior quarter, 12.4%, is still reflective of the nearer-term inflationary environment in which we operate. As our pricing actions continue to be implemented, including additional pricing as needed, we'd expect our margins to continue to improve significantly between now and the fourth quarter of the year.

其次，我們繼續專注於控制固定成本和利用可變成本。我們第二季度調整後的 EBITDA 利潤率比上一季度提高了 330 個基點，即 12.4%，仍然反映了我們經營所在的近期通脹環境。隨著我們的定價行動繼續實施，包括根據需要進行額外定價，我們預計從現在到今年第四季度，我們的利潤率將繼續顯著改善。

We're also continuing to invest in opportunities to expand margins further next year and beyond like our plant investment in Kentucky, which remains on track to be completed by the end of this year and is expected to improve total company margins by roughly 100 basis points starting in 2023 as we work to deliver our targeted long-term EBITDA margin of 20% in the coming years.

我們還將繼續投資於明年及以後進一步擴大利潤率的機會，例如我們在肯塔基州的工廠投資，該投資仍有望在今年年底前完成，預計將使公司總利潤率提高約 100 個基點從 2023 年開始，我們致力於在未來幾年實現 20% 的長期 EBITDA 利潤率目標。

So in summary, we're pleased with our pricing and cost containment actions. We will maintain pricing and cost discipline so we can drive revenue growth and capture margin expansion opportunities as the year progresses.

總之，我們對我們的定價和成本控制行動感到滿意。我們將維持定價和成本紀律，以便隨著時間的推移推動收入增長並抓住利潤率擴張的機會。

Now just as important, I've seen strong progress on our strategic growth drivers. We continue to enhance our value proposition with digital innovation and a focus on service, which is leading to high retention levels and acceleration of net new customer wins and a robust pipeline of additional opportunities.

現在同樣重要的是，我看到我們的戰略增長動力取得了巨大進展。我們繼續通過數字創新和對服務的關注來增強我們的價值主張，這將帶來高保留水平和加速淨新客戶贏得以及強大的額外機會渠道。

As an example of our innovation, we recently entered into a multiyear global partnership agreement with Gausium to collectively disrupt the machines market with robotics technology. The focus of this partnership is to unlock the full potential of cleaning robotics with greater operational efficiency and intelligence for our customers around the world. This is part of our TASKI machines business, which is almost 10% of our Institutional business and has grown by over 28% on a constant currency basis in the first half.

作為我們創新的一個例子，我們最近與 Gausium 簽訂了一項多年全球合作夥伴協議，以利用機器人技術共同顛覆機器市場。此次合作的重點是釋放清潔機器人技術的全部潛力，為我們世界各地的客戶提供更高的運營效率和智能性。這是我們 TASKI 機器業務的一部分，該業務幾乎占我們機構業務的 10%，並且按固定匯率計算，上半年增長了 28% 以上。

It's this type of innovation, coupled with our strategic focus in U.S. foodservice, global accounts and water treatment, that leads us to expect strong growth going forward.

正是這種類型的創新，加上我們在美國食品服務、全球客戶和水處理方面的戰略重點，使我們預計未來將出現強勁增長。

And with that, let me now pass it over to Todd to give you some additional details for the quarter and to also cover our outlook for the remainder of the year.

現在，讓我將其轉交給托德，向您提供本季度的一些其他詳細信息，並介紹我們對今年剩餘時間的展望。

Thanks, Phil. In summary, there are a few things I would like you to take away from today's discussion. First, our confidence in the resiliency of this business is strong. Second, we posted solid Q2 results in the current environment. And third, we are updating our full year EBITDA guidance to reflect the current exchange environment.

謝謝，菲爾。總而言之，我希望大家從今天的討論中得到一些啟示。首先，我們對這項業務的彈性充滿信心。其次，我們在當前環境下發布了穩健的第二季度業績。第三，我們正在更新全年 EBITDA 指導，以反映當前的交易環境。

As you all know, we're living in an interesting environment, and we continue to be very encouraged with the resiliency of the business and our ability to gain share in a fragmented market while at the same time implementing aggressive pricing actions, reflective of the inflationary environment we are tackling. We remain on track with our daily execution in growing our business organically with significant net new business, and we continue to invest in both our product innovation and distribution channels to expand market share and margins.

眾所周知，我們生活在一個有趣的環境中，我們繼續對業務的彈性以及我們在分散的市場中獲得份額的能力感到非常鼓舞，同時實施積極的定價行動，這反映了我們正在應對通脹環境。我們仍然按照日常執行的軌道，通過大量的淨新業務有機地發展我們的業務，並且我們繼續投資於我們的產品創新和分銷渠道，以擴大市場份額和利潤。

Our delivery in the first half of the year has been consistent with our initial outlook. That being said, the macro background continues to be broad ranging and unpredictable. As a point of reference, our core execution in the quarter drove revenue growth of more than 20% on a currency-adjusted basis. However, the volatility in global exchange rates is diminishing our strong execution.

我們上半年的交付情況與我們最初的預期一致。話雖如此，宏觀背景仍然廣泛且不可預測。作為參考，我們本季度的核心執行推動了按匯率調整後的收入增長超過 20%。然而，全球匯率的波動正在削弱我們強大的執行力。

As we look to the remainder of the year, I want to update our outlook to reflect the current exchange rate environment.

當我們展望今年剩餘時間時，我想更新我們的展望以反映當前的匯率環境。

While we have a number of exchange rate hedges in place, we're not in the business of predicting foreign currency swings and when they may revert. Accordingly, I believe it's prudent to assume that such headwinds continue to occur for the remainder of the year.

儘管我們採取了多種匯率對沖措施，但我們並不負責預測外匯波動及其何時可能回歸。因此，我認為謹慎的假設是，此類不利因素在今年剩餘時間內繼續出現。

We are reducing both the lower end and higher end of our previous guidance range by $30 million to reflect the current exchange rate environment. To be clear, we're not changing our guidance with respect to any other matters. Our core execution of what we control is strong and on track.

我們將之前指導範圍的下限和上限均減少了 3000 萬美元，以反映當前的匯率環境。需要明確的是，我們不會改變對任何其他事項的指導。我們對我們控制的核心執行力很強並且步入正軌。

Now let me talk about our quarterly results. Net sales for the quarter were $715 million, an increase of $65 million or 10% as compared to Q2 prior year and 20.6% on a constant currency basis, reflecting strong top line growth across both of our business segments.

現在讓我談談我們的季度業績。本季度淨銷售額為 7.15 億美元，比去年第二季度增加 6500 萬美元，即 10%，按固定匯率計算增長 20.6%，反映出我們兩個業務部門的強勁營收增長。

I'm happy to report our Institutional business, which is roughly 70% of our revenue, reported $510 million or a 7% increase over Q2 prior year. On a constant currency basis, our Institutional business revenues increased by 17.4% driven by a combination of new customer wins, pricing actions and expansion with existing customers as we continue to progress towards a return to pre-pandemic levels. We're more than 90% recovered versus pre-COVID volume in our Institutional business.

我很高興地向您報告，我們的機構業務（約占我們收入的 70%）報告收入為 5.1 億美元，比去年第二季度增長了 7%。按固定匯率計算，我們的機構業務收入增長了 17.4%，這得益於新客戶的贏得、定價行動以及現有客戶的擴張，同時我們繼續努力恢復到大流行前的水平。與新冠疫情爆發前相比，我們的機構業務量已恢復 90% 以上。

Our F&B business, which is roughly 30% of our revenue, also continued positive momentum, supporting our long-term growth goals. We continue to experience high customer win rates for new business and recently introduced water treatment to further expand our organic growth initiatives.

我們的餐飲業務約占我們收入的 30%，也繼續保持積極勢頭，支持我們的長期增長目標。我們繼續在新業務中獲得較高的客戶贏得率，並且最近引入了水處理，以進一步擴大我們的有機增長計劃。

Our Q2 revenue of $206 million is 18.4% above prior year as reported and 29.3% above in constant currency. As Phil mentioned, we're especially pleased with our Q2 adjusted EBITDA delivery in light of the numerous inflationary pressures we've had to overcome throughout the first half of the year.

我們第二季度的收入為 2.06 億美元，比上年報告的收入增長 18.4%，按固定匯率計算增長 29.3%。正如 Phil 提到的，鑑於我們今年上半年必須克服的眾多通脹壓力，我們對第二季度調整後 EBITDA 的交付感到特別滿意。

Consolidated adjusted EBITDA for Q2 was $88.4 million, a 12.7% decrease compared to prior year as reported, but nearly flat in constant currency. Our Institutional and F&B beverage segments delivered adjusted EBITDA of $74.5 million and $23.5 million, respectively, representing declines of 4.6% and 33% as reported. Both segments were impacted by currency and high input cost inflation, particularly in Europe due to the war in Ukraine, and we're taking aggressive pricing actions to address the price/cost timing gap.

第二季度合併調整後 EBITDA 為 8840 萬美元，與上年報告相比下降 12.7%，但按固定匯率計算幾乎持平。我們的機構和餐飲飲料部門調整後 EBITDA 分別為 7,450 萬美元和 2,350 萬美元，據報告，分別下降 4.6% 和 33%。這兩個領域都受到貨幣和高投入成本通脹的影響，特別是在歐洲，由於烏克蘭戰爭，我們正在採取積極的定價行動來解決價格/成本時間差距。

While costs continue to increase, I'm committed to ongoing pricing and cost containment to assure we hit our long-term 20% adjusted EBITDA margin target. To offset and get ahead of costs as we progress towards 2023, I said in May that we expected our full year pricing for 2022 to be greater than 8%. Now we're expecting more than 10% for the full year. As of May, we've been offsetting monthly direct material cost inflation in dollars. And as inflationary pressures moderate, combined with our steady productivity gains, I believe we will capture margin improvement over time.

雖然成本持續增加，但我致力於持續定價和成本控制，以確保我們實現 20% 調整後 EBITDA 利潤率的長期目標。為了在我們邁向 2023 年的過程中抵消和領先成本，我在 5 月份表示，我們預計 2022 年全年定價將高於 8%。現在我們預計全年增長超過 10%。截至五月，我們一直在以美元抵消每月的直接材料成本通脹。隨著通脹壓力的緩和，加上我們生產率的穩步提高，我相信隨著時間的推移，我們將實現利潤率的改善。

Now let's quickly touch on what a strong position our balance sheet is in. First, with respect to operating cash flow, we had a negative outflow of roughly $9 million for the first 6 months of 2022 as compared to minus $109 million in the same period last year. We continue to expect positive free cash flow in the back half of the year, consistent with historical cash flow seasonality.

現在讓我們快速了解一下我們的資產負債表處於何種強勢地位。首先，就運營現金流而言，2022 年前 6 個月我們的負流出約為 900 萬美元，而同期為負 1.09 億美元去年。我們繼續預計今年下半年將出現正的自由現金流，這與歷史現金流季節性相一致。

Our expectations for full year free cash flow are the same as when I spoke in May after adjusting for currency and rising interest rates. The good news on the last topic is that we've hit our interest rate caps, meaning we only have $350 million of debt exposed to further interest rate rises. This means each 1% increase in rates represents approximately $3.5 million in annualized incremental interest expense, which puts us in a positive position considering our strong liquidity.

在對貨幣和利率上升進行調整後，我們對全年自由現金流的預期與我五月份講話時相同。關於最後一個主題的好消息是，我們已經達到了利率上限，這意味著我們只有 3.5 億美元的債務面臨進一步利率上升的風險。這意味著利率每上漲 1% 就意味著年化利息支出增加約 350 萬美元，考慮到我們強大的流動性，這使我們處於有利地位。

At quarter end, we had cash and cash equivalents of $248 million and available liquidity of $690 million, which I view as a position of strength.

截至季度末，我們的現金和現金等價物為 2.48 億美元，可用流動資金為 6.9 億美元，我認為這是一個優勢地位。

Our net debt leverage ended the quarter at 4.8x. As we expect to generate increased positive cash flow for the full year of '22, we also expect to see net debt leverage improve by year-end.

本季度結束時，我們的淨債務槓桿率為 4.8 倍。由於我們預計 22 年全年將產生更多的正現金流，因此我們還預計到年底淨債務槓桿率將有所改善。

So we continue to be encouraged with the execution by the team and the resilience of the business in this challenging environment. While we are not isolated from the macro headwinds impacting global markets, we do believe our solid second quarter results reflect our geographic sector and product diversification as well as strong value proposition we offer to our customers.

因此，在這個充滿挑戰的環境中，我們團隊的執行力和業務的彈性繼續受到鼓舞。雖然我們並未受到影響全球市場的宏觀逆風的影響，但我們確實相信，第二季度的穩健業績反映了我們的地理部門和產品多元化以及我們為客戶提供的強大價值主張。

Accordingly, we're reaffirming high single-digit percentage revenue growth for the full year, but lowering the adjusted EBITDA range to reflect the current exchange environment. Our current outlook for full year adjusted EBITDA is $350 million to $390 million. If the inflation or foreign exchange environment changes, we would expect to update our outlook as the year progresses.

因此，我們重申全年高個位數百分比收入增長，但降低調整後的 EBITDA 範圍以反映當前的匯率環境。我們目前對全年調整後 EBITDA 的預期為 3.5 億至 3.9 億美元。如果通脹或外匯環境發生變化，我們預計會隨著時間的推移更新我們的前景。

Now one last item before I turn back over to Phil. We recognize that this is a unique environment. While we generally do not provide quarterly earnings guidance, our estimate for Q3 revenue is in the range of $680 million to $720 million, and adjusted EBITDA is in the range of $85 million to $95 million. The third quarter outlook reflects volume growth and price increases that are expected to build throughout the year, offset by the historical seasonality of Diversey's business and the impact of opening our new Kentucky warehouse, which could have some timing impact between Q3 and Q4, along with incremental onetime costs.

現在是我回到菲爾之前的最後一個項目。我們認識到這是一個獨特的環境。雖然我們通常不提供季度盈利指引，但我們對第三季度收入的估計在 6.8 億美元至 7.2 億美元之間，調整後的 EBITDA 在 8500 萬美元至 9500 萬美元之間。第三季度展望反映了預計全年將出現的銷量增長和價格上漲，被泰華施業務的歷史季節性以及開設新肯塔基倉庫的影響所抵消，這可能會在第三季度和第四季度之間產生一些時間影響，以及增量一次性成本。

The expected increase in earnings from Q3 to Q4 reflects getting the warehouse up and running, pricing, growth and cost containment actions.

第三季度到第四季度的預期收益增長反映了倉庫的啟動和運行、定價、增長和成本控制行動。

In summary, I'm pleased with our performance to date. We are updating our guidance to reflect the current exchange rate environment and our confidence in the resiliency of our long-term growth strategy, and earnings power remains on track.

總而言之，我對我們迄今為止的表現感到滿意。我們正在更新我們的指引，以反映當前的匯率環境以及我們對長期增長戰略的彈性的信心，並且盈利能力仍處於正軌。

With that, I'll hand it back over to Phil for a quick wrap-up.

這樣，我會將其交還給 Phil 進行快速總結。

Yes, I wanted to take a step back and share a few headlines about where we are in our transformation.

是的，我想退後一步，分享一些有關我們轉型進展的頭條新聞。

Firstly, we're executing well against a very clear plan for growth, including U.S. foodservice, water treatment, global accounts and commercial excellence. We've also made some significant investments in our talent to deliver that plan. And we're seeing our employee engagement and customer Net Promoter Scores are significantly up.

首先，我們正在執行非常明確的增長計劃，包括美國食品服務、水處理、全球客戶和卓越商業。為了實現該計劃，我們還對人才進行了一些重大投資。我們看到我們的員工敬業度和客戶淨推薦值顯著提高。

So despite all of the crisis of COVID and inflation and supply chain, our first half revenues were 16% up and our adjusted EBITDA was 23% up versus the precrisis period of 2019. So as these crises subside, we're extremely well positioned to take advantage of all the opportunities that exist in our $46 billion marketplace.

因此，儘管面臨新冠疫情、通貨膨脹和供應鏈危機，我們上半年的收入與 2019 年危機前相比增長了 16%，調整後的 EBITDA 增長了 23%。因此，隨著這些危機的消退，我們處於非常有利的位置充分利用 460 億美元市場中存在的所有機會。

So finally then, before opening up for Q&A, just summarizing the quarter.

最後，在開始問答之前，先總結一下本季度的情況。

We saw 20% constant currency revenue growth, including 10% of price increases. And we saw 330 basis points of sequential margin improvement to 12.4%.

我們看到貨幣收入持續增長 20%，其中包括 10% 的價格上漲。我們看到利潤率環比提高了 330 個基點，達到 12.4%。

Now operator, it'd be great if you can open the line for questions.

現在，接線員，如果您能開通提問熱線，那就太好了。

(Operator Instructions) Our first question comes from the line of Vincent Andrews with Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的文森特·安德魯斯（Vincent Andrews）。

This is Steve on for Vincent. I just wanted to ask a question on the updated guidance. Can you -- maybe just on the top line, the high single-digit sales growth, can you kind of bucket out how much you're expecting from volume, price? Like what's the FX headwind assumed in there?

這是文森特的史蒂夫。我只是想問有關更新指南的問題。你能——也許只是在營收上，高個位數的銷售增長，你能從銷量和價格中算出你的預期嗎？就像其中假設的外匯逆風是什麼？

And then when we think about the fourth quarter versus the third quarter, can you kind of just provide like an EBITDA bridge on some of the items that you called out that would just help us size them relative to one another?

然後，當我們考慮第四季度與第三季度的情況時，您能否提供一些您提到的項目的 EBITDA 橋樑，以幫助我們確定它們之間的相對大小？

Yes, Steve, I can certainly do that for you. So yes, looking at the full year, I think we said over 10% pricing we're going to get. I think we could certainly assume 6% to 7% on volume. You'll remember against that, we had a normalization of infection prevention that's worth about 3%. That was all in Q1, but 3% would be the full year equivalent.

是的，史蒂夫，我當然可以為你做到這一點。所以，是的，縱觀全年，我認為我們說過我們將獲得超過 10% 的定價。我認為我們當然可以假設銷量為 6% 到 7%。您會記得，我們​​的感染預防標準化程度約為 3%。這都是第一季度的數據，但全年的增長率為 3%。

I think there's probably about 3% coming from M&A. Those are transactions that we did in December and January of this year.

我認為大概有 3% 左右來自併購。這些是我們在今年 12 月和 1 月進行的交易。

And then the currency could behoove in the 8% o 9% range. So hopefully, that gives you a reasonable sense of how we're looking at the full year on top line.

然後貨幣可能會在 8% 到 9% 的範圍內波動。希望這能讓您對我們如何看待全年的營收有一個合理的認識。

If we then think about -- I think the second part of your question was on Q3 to Q4. I mean the biggest two impacts are pricing and the warehouse opening. But on pricing, maybe it's helpful just to explain the chronology of what we've done this year.

如果我們然後考慮一下——我認為你問題的第二部分是關於第三季度到第四季度的。我的意思是最大的兩個影響是定價和倉庫開放。但在定價方面，也許解釋一下我們今年所做工作的時間順序會有所幫助。

So we had some significant price increases in Q1. We then had some further increases once we knew about the war that came in relatively early in the second quarter.

因此，我們在第一季度出現了一些顯著的價格上漲。一旦我們知道第二季度相對較早發生的戰爭，我們就進一步增加了價格。

Our next significant price drivers, we expect to be at the start of the fourth quarter. And therefore, the pricing increase from Q2 to Q3 will be relatively modest. The price increase from Q3 to Q4, I think, will be much bigger.

我們預計下一個重要的價格驅動因素將出現在第四季度初。因此，從第二季度到第三季度的價格上漲將相對溫和。我認為從第三季度到第四季度的價格漲幅會更大。

And then the other point we're talking about is the warehouse opening. We're right -- we're getting into that at the moment. It's obviously a huge project. It's very significant in terms of the number of people and the volumes involved. It's also enormously important in terms of the businesses' performance and margin improvement going forward.

然後我們談論的另一點是倉庫的開放。我們是對的——我們現在正在討論這個問題。這顯然是一個巨大的工程。就涉及的人數和數量而言，這是非常重要的。這對於企業未來的業績和利潤率的提高也非常重要。

We think there could be $20 million to $30 million of potential revenue that moves from Q3 into Q4 as a result of that. It could be a lower number, okay? But I just want to make sure that people are aware that, that's happening and that, that is a potential impact, so no one is surprised if that impact has been seen when we report our Q3 numbers. I hope that helps.

我們認為，由此可能有 2000 萬至 3000 萬美元的潛在收入從第三季度轉移到第四季度。這個數字可能會更低，好嗎？但我只是想確保人們意識到這種情況正在發生，並且這是一種潛在的影響，因此，如果在我們報告第三季度數據時看到這種影響，沒有人會感到驚訝。我希望這有幫助。

Our next question comes from the line of Andy Wittmann with Baird.

我們的下一個問題來自安迪·魏特曼和貝爾德的對話。

Yes. Todd, it looks like there was a comment here that you unwound a swap in the quarter. Was that in this quarter's free cash flow? Or is that a contributor to the reason why the second half cash flow was supposed to be more positive?

是的。托德，這裡似乎有一條評論說您在本季度取消了掉期。這是本季度的自由現金流嗎？或者這是否是下半年現金流應該更加積極的原因之一？

It would be a part of cash flow. It's not actually technically part of free cash flow. So depending on the definitions we're talking about, just to be clear, we did unwind the swap in the second quarter. It had the effect of more than $60 million in the quarter of a benefit to cash in the second quarter and, of course, will contribute for the year to cash flow in general.

它將成為現金流的一部分。從技術上講，它實際上並不是自由現金流的一部分。因此，根據我們正在討論的定義，需要明確的是，我們確實在第二季度取消了互換。它在本季度為第二季度的現金帶來了超過 6,000 萬美元的收益，當然，也將為全年的總體現金流做出貢獻。

Got it. Okay. That's helpful. And then just on the F&B segment, I was wondering if you could just address -- I mean, obviously, the raw material impacts are different between the segments, but it looks like it was a lot more significant in F&B.

知道了。好的。這很有幫助。然後就餐飲領域而言，我想知道您是否可以解決——我的意思是，顯然，原材料的影響在各個領域之間是不同的，但看起來在餐飲領域更為重要。

Maybe you could -- and why don't you guys talk a little bit about why that's the case? And help us understand the magnitude of the difference between the two segments and what's happening with raw materials.

也許你們可以——你們為什麼不談談為什麼會這樣呢？並幫助我們了解這兩個細分市場之間的差異程度以及原材料的情況。

Yes. Look, I can certainly do that. I mean overall, our Q2 raw material inflation was about 34%. But that breaks out quite differently across the two divisions. It's more like 25% in Institutional, and it's north of 50% for Food and Beverage. The reason for that is just the different constitution of the materials used in the business. So Food and Beverage is very heavy on caustic, which you'll know is trading at multiples of the cost that it was doing if you go back 12 or 18 months. So whilst we're seeing ethylene and propylene actually starting to move back a little bit, caustic continues to increase. So that's really the biggest driver of why the margin profile in Food and Beverage looks tougher than the one in Institutional.

是的。看，我當然能做到。我的意思是，總體而言，我們第二季度的原材料通脹約為 34%。但這兩個部門的情況卻截然不同。機構行業的這一比例接近 25%，食品和飲料行業的比例則高於 50%。其原因只是業務中使用的材料成分不同。因此，食品和飲料行業的腐蝕性物質含量很高，如果您回顧 12 或 18 個月，您就會知道其交易成本是其成本的數倍。因此，雖然我們看到乙烯和丙烯實際上開始略有回落，但腐蝕性仍在繼續增加。因此，這確實是為什麼食品和飲料行業的利潤狀況看起來比機構行業的利潤狀況更艱難的最大驅動因素。

And maybe you could just build on that by commenting on how the price discussions are going by segment, recognizing that many of your Institutional customers can be smaller. And while your typical F&B customers are larger customer, maybe considered more sophisticated from that. Is it harder to push price, in other words, in F&B than it is in Institutional? Maybe you could talk about that.

也許您可以在此基礎上按細分市場評論價格討論的進展情況，並認識到您的許多機構客戶可能規模較小。雖然典型的餐飲客戶是大客戶，但可能被認為更成熟。換句話說，餐飲業比機構業更難推動價格嗎？也許你可以談談這個。

Yes, sure. Actually, I would say we've had really good success in both. So you're right, there's maybe a slightly different mix of small versus large in the two businesses. But the Food and Beverage team has done a fantastic job of pricing. And just as the -- currently, what you see with inflation is different. I think by the time we get to the end of the year, we'll see that the pricing in Food and Beverage business is significantly ahead of the Institutional business.

是的，當然。事實上，我想說我們在這兩方面都取得了非常好的成功。所以你是對的，這兩家企業的小型與大型的組合可能略有不同。但食品和飲料團隊在定價方面做得非常出色。正如目前，你所看到的通脹情況有所不同。我認為到今年年底，我們將看到食品和飲料業務的定價明顯領先於機構業務。

In general, customers are understanding and accepting the current landscape. In fact, I can only think of one customer right across the business where they've really struggled on the pricing side. So in general, I think we're making really good progress, and I wouldn't draw any distinction between the two businesses.

總體而言，客戶正在理解並接受當前的形勢。事實上，我只能想到整個企業中的一位客戶，他們在定價方面確實遇到了困難。因此，總的來說，我認為我們正在取得非常好的進展，我不會在這兩項業務之間做出任何區分。

Our next question comes from the line of John Roberts with Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的約翰·羅伯茨。

Our next question comes from the line of Joshua Spector with UBS.

我們的下一個問題來自瑞銀集團 (UBS) 的約書亞·斯佩克特 (Joshua Spector)。

This is Lucas Beaumont on for Josh. So I just want to go back to pricing. So in the quarter, you're basically running now at a 12% 2-year stack. And based on your second half guide, I think you're going to get to probably like a 16% to 17% exit rate in the fourth quarter on a 2-year basis. So how much of that on a 2-year stack should sort of flow into 2023? And could you just sort of split that 16% to 17% for us between what's base pricing versus the surcharge so we can think about how much of that is sustainable?

我是盧卡斯·博蒙特（Lucas Beaumont）為喬什（Josh）代言。所以我只想回到定價。因此，在本季度，您現在基本上以 12% 的 2 年堆棧運行。根據你的下半年指南，我認為你可能會喜歡第四季度 2 年基礎上 16% 到 17% 的退出率。那麼，在 2 年的堆棧中，有多少應該流入 2023 年呢？您能否將 16% 到 17% 的價格分成基本價格和附加費，以便我們考慮其中有多少是可持續的？

Yes, sure. So look, I think your numbers on the 2-year stack are about in line. About 20% of the increase that we've taken this year, so I guess that makes it probably more like about 15% of the 2-year stack, is in respect of surcharges. The balance would be the more structural pricing.

是的，當然。所以看，我認為你在 2 年堆棧上的數字大約是一致的。今年我們增加的費用中大約有 20%，所以我想這可能更像是 2 年堆棧的 15% 左右，是附加費。平衡點將是更具結構性的定價。

So look, as we go into next year, obviously we're going to get a full year effect of the pricing that we've taken partway through the year. So if we had 6% went through in Q1 this year, and that's going to be in the low teens as we get into Q4, you obviously -- you can calculate the full year effect of that as we go into '23.

因此，看起來，當我們進入明年時，顯然我們將獲得我們在今年中期採取的定價的全年影響。因此，如果今年第一季度我們經歷了 6%，當我們進入第四季度時，這個數字將達到十幾歲，顯然，當我們進入 23 年時，您可以計算出全年的影響。

Right. And then just sort of going back to the performance in F&B for the quarter. So that was probably a fair bit better versus expectations in terms of the volumes. So if we just sort of -- assuming similar to like group pricing, your volumes seem like they're probably up about 12%. So could you just kind of discuss the drivers there and sort of what you're thinking in terms of volumes in the second half for us, please?

正確的。然後回到本季度餐飲業的表現。因此，就數量而言，這可能比預期要好一些。因此，如果我們假設與團體定價類似，那麼您的銷量可能會增長約 12%。那麼您能否討論一下那裡的驅動因素以及您對我們下半年銷量的看法？

Yes, sure. So look, I think we've been talking for a while about the performance of Food and Beverage and the fact that on volume, they've been doing really well. If you go back to '20 and '21, it was the traditional cleaning and hygiene business that was doing really well. We were taking really good share. We've seen some more of that this year, albeit I think it's fair to say that with the massive focus on pricing, maybe at a slightly lower level.

是的，當然。所以，我想我們已經討論食品和飲料的表現一段時間了，事實上，在數量上，他們做得非常好。如果你回到 20 世紀和 21 世紀，就會發現傳統的清潔和衛生業務做得非常好。我們獲得了非常好的份額。今年我們已經看到了更多這樣的情況，儘管我認為可以公平地說，由於對定價的大力關注，價格水平可能略低。

What we have had, though, coming to the party this year is the water treatment more significantly. We're running at a kind of double-digit millions growth in water treatment for this year, which is helpful. A bit ahead of plan, but that's ramping up nicely.

不過，今年我們參加聚會的重點是水處理。今年我們的水處理業務增長了兩位數，這很有幫助。比計劃提前了一點，但進展順利。

So I think if you go into the second quarter, I'm really hoping to see that water treatment growth continue to add. I also think, as I referenced just a minute ago, I think probably, the pricing in the second half of the year will be slightly more skewed towards Food and Beverage versus Institutional.

因此，我認為，如果進入第二季度，我真的希望看到水處理業務的增長繼續增加。我還認為，正如我一分鐘前提到的那樣，我認為今年下半年的定價可能會稍微偏向食品和飲料而不是機構。

Our next question comes from the line of Edlain Rodriguez with Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的埃德蘭·羅德里格斯 (Edlain Rodriguez)。

So quick question on pricing and surcharges. Like how successful are you in implementing the surcharges? And when you think about pricing for the year, what does the composition look like in terms of fundamental price and -- versus surcharges?

關於定價和附加費的快速問題。比如你們在實施附加費方面有多成功？當您考慮今年的定價時，基本價格和附加費的構成是什麼樣的？

Yes. So I think on the surcharges, we've been pretty successful. We've applied surcharges versus structural price depending on the particular dynamics of the market. So let me give you an example.

是的。所以我認為在附加費方面，我們非常成功。我們根據市場的具體動態，採用了附加費和結構性價格。讓我舉個例子。

In emerging markets, where there is traditionally volatile inflation and our teams and, just as importantly, our customers are used to that environment, we've continued to take structural price.

在新興市場，傳統上通脹波動較大，我們的團隊以及同樣重要的是我們的客戶已經習慣了這種環境，我們繼續採取結構性價格。

If you take somewhere like Europe, where traditionally inflation is much lower and very steady and the current inflation because of the war is particularly acute, there we have taken some structural price but also some surcharge. And that allows us to ensure that if costs go up again, we can react to that, but also customers to understand they have some real transparency over the drivers of the cost increase.

如果你拿歐洲這樣的地方來說，傳統上通貨膨脹要低得多並且非常穩定，而且目前由於戰爭而導致的通貨膨脹特別嚴重，我們在那裡採取了一些結構性價格，但也採取了一些附加費。這使我們能夠確保，如果成本再次上漲，我們可以對此做出反應，同時也讓客戶了解他們對成本增加的驅動因素有一定的透明度。

So I think it's been a successful strategy. It's something that we've put together this year. But it seems to work well, and customers, I think, have appreciated the transparency that it's given.

所以我認為這是一個成功的策略。這是我們今年整合的東西。但它似乎運作良好，我認為客戶已經欣賞它所提供的透明度。

In terms of the overall mix, about 20% of this year's pricing relates to surcharges with the rest being the more traditional structural price.

從整體結構來看，今年的定價大約有20%與附加費有關，其餘的是更傳統的結構性價格。

Okay. Makes sense. And one last one on the EBITDA margin. So you've guided for this year about like 13% to 14%, but I think you've talked about the 20% target you have out there. But when do you think you can get there? Do you get there by 2024? 2025? Like when do you get there and under what conditions?

好的。說得通。最後一項是 EBITDA 利潤率。因此，您今年的目標是 13% 到 14%，但我認為您已經談到了 20% 的目標。但你認為你什麼時候可以到達那裡？ 2024 年你能到達那裡嗎？ 2025 年？比如你什麼時候到達那里以及在什麼條件下到達那裡？

Yes. So I don't think it's going to be 2024. I think we're going to see two phases to this, okay? One phase is going to be the correction of the price-cost gap that results from the current issues or maybe you might call exceptional inflation on raw materials, labor and freight. I think we're going to see that correcting, as we did in Q2. That's going to continue to correct in the balance of this year and also through next year.

是的。所以我認為不會是 2024 年。我認為我們會看到這兩個階段，好嗎？其中一個階段是糾正當前問題造成的價格成本差距，或者你可能稱之為原材料、勞動力和貨運的異常通貨膨脹。我認為我們將會看到這種糾正，就像我們在第二季度所做的那樣。這種情況將在今年和明年繼續得到糾正。

The second section is going to be those things that we were doing and working on way before the current crisis. And those things are ongoing, and they're going to continue. And we've said before that those things will account for a 50 to 100 basis points of margin accretion per annum.

第二部分將是我們在當前危機之前正在做和正在努力的事情。這些事情正在進行中，而且還將繼續下去。我們之前說過，這些因素每年將帶來 50 到 100 個基點的利潤增長。

So you should think of it as the next several quarters, we need to get back to where we were. We reported 15.7% margins back last year, and then we need to get up back on to the 50 to 100 basis points train as we go back to focusing on our supply chain initiatives, our procurement and more pricing and the SG&A savings.

因此，你應該將其視為接下來的幾個季度，我們需要回到原來的狀態。去年我們報告的利潤率為 15.7%，然後我們需要重新回到 50 到 100 個基點的訓練，因為我們重新專注於我們的供應鏈計劃、我們的採購以及更多定價和 SG&A 節省。

The other point just to mention in the realm of supply chain, of course we've got the new Kentucky factory. That's going to add 100 basis points, and that's going to start next year.

另一點是在供應鏈領域，我們當然有新的肯塔基工廠。這將增加 100 個基點，並且將從明年開始。

Our next question comes from the line of Christopher Parkinson with Mizuho.

我們的下一個問題來自克里斯托弗·帕金森和瑞穗的對話。

This is Kieran on for Chris. I was just wondering if you can just briefly touch on the M&A pipeline and how you're seeing those potential for deals. I guess at this point, with multiples having come down a little bit in the current environment, are you seeing more of these deals potentially come to fruition and more opportunity on that front? I'm just curious to hear your thoughts on that portion of the business.

這是克里斯的基蘭。我只是想知道您是否可以簡單談談併購渠道以及您如何看待這些交易的潛力。我想在這一點上，在當前環境下市盈率略有下降，您是否看到更多此類交易可能會取得成果，並且在這方面有更多機會？我只是想听聽您對這部分業務的想法。

Yes, I'll take that one. Thanks for the question. I would say that our view to M&A has not changed in the past 12 months. We are currently in an active funnel. We have active discussions with 8 to 10 players, most of which are bilateral. The reason why that's a good thing is that we can actually control, to some degree, the timing at which we would choose to execute some of that M&A.

是的，我會接受那個。謝謝你的提問。我想說的是，我們對併購的看法在過去 12 個月裡沒有改變。我們目前處於活躍漏斗中。我們與 8 到 10 名參與者進行了積極的討論，其中大部分是雙邊的。這是一件好事的原因是，我們實際上可以在某種程度上控制我們選擇執行部分併購的時機。

We're cognizant of our current leverage ratio. While our -- we have, I think, exceptional liquidity at close to $700 million, we're also conscious that we want to get our leverage down. So we'll manage the timing and also, because of the -- a full funnel, allows us to prioritize the best of what's in our funnel as well. And so we're excited about it, but we're also managing that in the context of how we want to also delever the business in the short to midterm.

我們了解當前的槓桿率。我認為，雖然我們擁有接近 7 億美元的非凡流動性，但我們也意​​識到我們希望降低杠桿率。因此，我們將管理時間安排，而且由於完整的漏斗，我們可以優先考慮漏斗中最好的內容。因此，我們對此感到興奮，但我們也在考慮如何在短期到中期去槓桿化業務的背景下進行管理。

Ladies and gentlemen, we have reached the end of today's question-and-answer session. I would like to turn this call back over to Mr. Grant Graver for closing remarks.

女士們、先生們，今天的問答環節到此結束。我想將這次電話轉回給格蘭特·格雷弗先生做總結髮言。

Thank you. That wraps up our second quarter conference call. A replay of this call and related slides will be available on our IR website. Thank you for your time and participation, and I hope everyone has a great rest of the day.

謝謝。我們的第二季度電話會議到此結束。本次電話會議的重播和相關幻燈片將在我們的 IR 網站上提供。感謝您的時間和參與，希望大家度過愉快的一天。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Enjoy the rest of your day.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。享受你一天剩下的時間。