Energizer Holdings Inc (ENR) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Energizer Holdings, Inc. Second Quarter 2025 Results Conference Call. (Operator Instructions) This call is being recorded on Tuesday, May 6, 2025. I would now like to turn the conference call over to Mr. Mark LaVigne. Please go ahead.

女士們、先生們，早安，歡迎參加 Energizer Holdings, Inc. 2025 年第二季業績電話會議。（操作員指示）此通話於 2025 年 5 月 6 日星期二錄製。現在我想將電話會議交給馬克·拉維尼先生。請繼續。

Good morning, and welcome to Energizer's Second Quarter Fiscal 2025 Conference Call. Joining me today are Mark LaVigne, President and Chief Executive Officer; and John Drabik, Executive Vice President and Chief Financial Officer. A replay of this call will be available on the Investor Relations section of our website, energizerholdings.com. In addition, a slide deck providing detailed financial results for the quarter is also posted on our website. During the call, we will make forward-looking statements about the company's future business and financial performance, among other matters. These statements are based on management's current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these statements.

早安，歡迎參加 Energizer 2025 財年第二季電話會議。今天與我一起出席的還有總裁兼執行長馬克拉維尼 (Mark LaVigne)；以及執行副總裁兼財務長 John Drabik。本次電話會議的重播將在我們網站 energizerholdings.com 的投資者關係部分提供。此外，我們的網站上也發布了提供本季詳細財務表現的幻燈片。在電話會議中，我們將對公司未來業務和財務表現等做出前瞻性陳述。這些聲明是基於管理層目前的預期，並受風險和不確定性的影響，可能導致實際結果與這些聲明有重大差異。

We do not undertake to update these forward-looking statements. Other factors that could cause actual results to differ materially from these statements are included in reports we file with the SEC. We also refer in our presentation to non-GAAP financial measures. A reconciliation of non-GAAP financial measures to comparable GAAP measures is shown in our press release issued earlier today, which is available on our website. Information concerning our categories and estimated market share discussed on this call relates to the categories where we compete and is based on Energizer's internal data, data from industry analysis and estimates we believe to be reasonable.

我們不承諾更新這些前瞻性陳述。我們向美國證券交易委員會提交的報告中也包含了可能導致實際結果與這些聲明有重大差異的其他因素。我們在介紹中也提到了非公認會計準則財務指標。我們今天稍早發布的新聞稿中顯示了非 GAAP 財務指標與可比較 GAAP 指標的對帳情況，該新聞稿可在我們的網站上查閱。本次電話會議討論的有關我們的產品類別和預計市場份額的資訊涉及我們競爭的類別，並基於 Energizer 的內部數據、行業分析數據和我們認為合理的估計。

The battery and category information includes both brick-and-mortar and e-commerce retail sales. Unless otherwise noted, all comments regarding the quarter and year pertain to Energizer's fiscal year and all comparisons to prior year relate to the same period in fiscal 2024.

電池和類別資訊包括實體店和電子商務零售銷售。除非另有說明，有關季度和年度的所有評論均與 Energizer 的財政年度有關，並且與去年的所有比較均與 2024 財年的同一時期有關。

With that, I would like to turn the call over to Mark.

說完這些，我想把電話轉給馬克。

Good morning, everyone, and thank you for joining us for our second quarter earnings call. John and I are going to first talk through the details of our Q2, and then we will spend the bulk of the time on the impact of the changing macro environment and how we are responding to it. Q2 was a solid quarter for us and largely consistent with our expectations. We saw growth continue for the fourth consecutive quarter with organic sales up nearly 1.5%. We also expanded gross margins and delivered adjusted earnings per share of $0.67 at the upper end of our guided range. We are proud of our performance in the quarter, which was bolstered by many of the investments we have made in the past several years. Those decisions have not only contributed to our year-over-year results, but they are playing a critical role in helping us to navigate the current volatility. More on that in a moment.

大家早安，感謝大家參加我們的第二季財報電話會議。約翰和我將首先討論第二季的細節，然後我們將花大量時間討論不斷變化的宏觀環境的影響以及我們如何應對它。對我們來說，第二季表現穩健，基本上符合我們的預期。我們看到連續第四個季度持續成長，有機銷售額成長近 1.5%。我們還擴大了毛利率，實現了每股調整後收益 0.67 美元，處於指導範圍的上限。我們對本季的業績感到自豪，這得益於我們過去幾年所做的許多投資。這些決策不僅對我們的同比業績做出了貢獻，而且在幫助我們應對當前的波動方面發揮了關鍵作用。稍後將對此進行詳細介紹。

As we take a closer look at each of our businesses, recall the areas we have highlighted previously: distribution, innovation, digital commerce, pricing and revenue management and market expansion. Each of these areas has contributed and will continue to contribute to our fiscal 2025 results. These focus areas come together on shelf or online as we strive to meet consumers where they are.

當我們仔細審視我們的每一項業務時，回想一下我們之前強調的領域：分銷、創新、數位商務、定價和收入管理以及市場擴張。上述每個領域都已經並將繼續為我們的 2025 財年業績做出貢獻。我們致力於在貨架或網路上滿足消費者的需求，這些重點領域也匯聚在一起。

Our battery business had a particularly strong performance, growing 3% organically in the quarter. Our distribution footprint in the U.S. and international markets continues to grow across both brick-and-mortar retail and digital commerce. In Auto Care, we saw strong growth within our appearance and air freshener businesses behind innovation, distribution gains and market expansion. Our appearance business delivered 5.5% organic growth, largely driven by the launch of our new Podium Series product line, which is now on the shelf in over 15,000 stores in both the U.S. and internationally.

我們的電池業務表現尤為強勁，本季有機成長 3%。我們在美國和國際市場的分銷足跡在實體零售和數位商務領域持續成長。在汽車護理方面，由於創新、分銷收益和市場擴張，我們的外觀和空氣清新劑業務實現了強勁增長。我們的外觀業務實現了 5.5% 的有機成長，這主要得益於我們推出的新款 Podium 系列產品線，該產品線目前已在美國和國際上超過 15,000 家商店上架。

Overall, our Auto business declined roughly 2.5% organically in the quarter, with the decline entirely driven by a shift in the timing of our refrigerant shipments from the second quarter into April. Those are just the highlights of a solid second quarter.

總體而言，我們的汽車業務本季有機下降約 2.5%，下降完全是由於我們的冷媒發貨時間從第二季度轉移到 4 月。這些只是第二季表現強勁的亮點。

Now let me hand it to John to provide more details on Q2 before we then turn to an update on the impact of tariffs and how we are leveraging our world-class supply chain to manage the changing landscape. We will then finish with a view on the remainder of fiscal '25. John?

現在，讓我把話題交給約翰，讓他提供有關第二季度的更多細節，然後我們再討論關稅的影響以及我們如何利用世界一流的供應鏈來應對不斷變化的情況。最後，我們將對 25 財年剩餘時間進行展望。約翰？

Thanks, Mark, and good morning, everyone. Second quarter reported net sales were flat, while organic revenue increased 1.4%. Our fourth consecutive quarter of organic growth was driven by a strong performance in batteries, partially offset by a decline in Auto Care. Batteries continues to benefit from significant distribution wins in the U.S., as well as strong international results, which combined to deliver organic growth globally.

謝謝，馬克，大家早安。第二季報告淨銷售額持平，而有機收入成長 1.4%。我們連續第四個季度實現有機成長，這得益於電池業務的強勁表現，但汽車護理業務的下滑部分抵消了這一增長。電池業務繼續受益於美國市場分銷管道的顯著增長以及強勁的國際業績，兩者共同推動了全球範圍內的有機增長。

The launch of our Podium Series is also progressing nicely and in position for a strong performance during the summer season. However, in the current quarter, Auto results were weighed down by a shift in timing of shipments within our refrigerants business, which have now largely shifted into April. Adjusted gross margin increased 30 basis points to 40.8%, primarily driven by an incremental $16 million of Project Momentum savings in the quarter.

我們的 Podium 系列的推出也進展順利，並有望在夏季表現出色。然而，本季度，汽車業務的業績受到冷媒業務出貨時間變化的影響，目前出貨時間已基本轉移到 4 月份。調整後的毛利率增加了 30 個基點，達到 40.8%，這主要得益於本季專案動量計畫節省的 1,600 萬美元。

Adjusted SG&A was 18.8% of net sales, an increase of $10.6 million in the quarter. The year-over-year dollar increase was primarily driven by planned spending in our digital transformation and growth initiatives, as well as increased legal fees, partially offset by Project Momentum savings of approximately $4 million. A&P as a percent of sales was 3.1%, roughly flat versus the prior year. Interest expense was $38 million, an improvement from the prior year due to lower average debt outstanding.

調整後的銷售、一般及行政費用佔淨銷售額的 18.8%，本季增加了 1,060 萬美元。美元金額年增率主要得益於我們在數位轉型和成長計劃中的計劃支出以及法律費用的增加，但專案動量節省的約 400 萬美元部分抵消了這一增長。 A&P佔銷售額的百分比為 3.1%，與去年基本持平。利息支出為 3,800 萬美元，由於平均未償還債務減少，較上年有所改善。

We delivered adjusted EBITDA and adjusted earning per share of $140.3 million and $0.67 per share, with adjusted earnings per share at the upper end of our previously provided outlook. During the quarter, we also refinanced our $500 million revolving credit facility, now maturing in March 2030 and opportunistically extended the maturity of our Term Loan B, now maturing in March 2032.

我們實現的調整後 EBITDA 和調整後每股盈餘分別為 1.403 億美元和 0.67 美元，調整後每股盈餘處於我們先前預期的上限。在本季度，我們還對 5 億美元的循環信貸額度進行了再融資，該額度將於 2030 年 3 月到期，並適時延長了定期貸款 B 的到期日，該額度將於 2032 年 3 月到期。

Importantly, we refinanced these facilities at roughly the same rates, while extending the maturities of both facilities by more than 4 years and the weighted average maturity of our total debt portfolio by more than 1 year. Our nearest maturity is now $300 million of notes maturing at the end of 2027. Our free cash flow declined $44.1 million year-over-year, primarily driven by investments in incremental inventory to support our plastic-free packaging launch in the U.S. and incremental inventory to mitigate tariff exposures, as well as capital expenditures to support our plastic-free packaging and digital transformation initiatives.

重要的是，我們以大致相同的利率為這些工具進行了再融資，同時將這兩項工具的期限延長了 4 年以上，並將我們總債務組合的加權平均期限延長了 1 年以上。我們最接近到期​​的票據是價值 3 億美元的票據，將於 2027 年底到期。我們的自由現金流年減 4,410 萬美元，主要原因是投資增量庫存以支持我們在美國推出無塑膠包裝和減少關稅風險，以及投資資本支出以支持我們的無塑膠包裝和數位轉型計劃。

Now, I'll turn it back over to Mark to take us through what we're seeing in the macro environment and the impact on our categories and consumers.

現在，我將把話題轉回給馬克，讓他帶我們了解宏觀環境以及對我們的類別和消費者的影響。

Thanks, John. Again, a performance we are very proud of despite ending the quarter in a more challenging environment relative to where we began. As we look ahead, the uncertainty around tariffs and the impact on the consumer create challenges for the balance of the year. Let's first talk about tariffs.

謝謝，約翰。儘管本季末的環境比開始時更具挑戰性，但我們仍然對這一表現感到非常自豪。展望未來，關稅的不確定性及其對消費者的影響將對今年的平衡帶來挑戰。我們先來談談關稅。

Work we have done over the last 2.5 years to transform our supply chain positions us well to mitigate the impact from tariffs much more quickly than we would have been able to previously. As a baseline, imports from China to the U.S. typically represent less than 5% of our consolidated cost of goods. And as John and I will cover, we have a clear path to further reduce our exposure during the next 12 months.

過去兩年半來，我們為轉變供應鏈所做的努力使我們能夠比以前更快地減輕關稅的影響。作為基準，從中國進口到美國的商品通常占我們綜合商品成本的不到 5%。正如約翰和我將要談到的，我們有明確的途徑在未來 12 個月內進一步減少我們的風險敞口。

Let's take a step back and revisit the changes we've made to provide more context on why we are confident in our ability to withstand the volatility that has become more and more common. You will recall that as we exited the COVID pandemic, we identified a substantial pipeline of initiatives to rebuild gross margins, improve working capital efficiency and invest for long-term growth.

讓我們回顧一下，重新審視我們所做的改變，以便更清楚地說明為什麼我們對自己抵禦日益普遍的波動的能力充滿信心。您會記得，當我們擺脫新冠疫情時，我們確定了一系列重大舉措，以重建毛利率、提高營運資金效率並投資於長期成長。

As part of that undertaking, we identified areas where we could improve cost, resiliency and agility. Many of these initiatives were captured within Project Momentum, which you have heard a lot about since we announced it in November 2022. The intent of the program was clearly designed to improve earnings growth and enhance free cash flow. But we were mindful that the changes to our network needed to also enhance our ability to absorb future shock to the global supply chain.

作為這項工作的一部分，我們確定了可以改善成本、彈性和敏捷性的領域。其中許多舉措都包含在「動力計畫」中，自我們在 2022 年 11 月宣布該計畫以來，您已經聽說過很多關於它的消息。該計劃的目的顯然是為了提高獲利成長和增強自由現金流。但我們意識到，我們網路的改變也需要增強我們吸收未來全球供應鏈衝擊的能力。

As Project Momentum got started, we took a clean sheet approach to our manufacturing and distribution network, with an emphasis on in-region, for-region production, ultimately to drive improved cost, agility and resiliency. In addition to the work on our existing network, we made several strategic acquisitions over the last few years, which included manufacturing locations in Indonesia, Belgium and our latest plant acquisition in Poland last week.

隨著「動量計畫」的啟動，我們對製造和分銷網路採取了全新的方法，重點放在區域內、針對區域的生產，最終目的是提高成本、靈活性和彈性。除了現有網路的工作之外，我們在過去幾年中還進行了幾次策略性收購，其中包括在印尼、比利時的製造基地以及上週在波蘭的最新工廠收購。

The results have transformed how we bring products to market and are particularly relevant today. For markets outside of the U.S., we currently source approximately 97% of our cost of goods from either in-region or non-U.S. production facilities. In the U.S., products sourced from China for U.S. consumption represents less than 5% of consolidated cost of goods. The remaining 95% are sourced mostly within the U.S. with the remainder from low-tariff countries.

研究結果改變了我們將產品推向市場的方式，並且在今天尤其重要。對於美國以外的市場，我們目前約有 97% 的商品成本來自地區內或美國以外的生產設施。在美國，從中國採購並供美國消費的產品佔商品綜合成本的不到5%。其餘 95% 主要來自美國境內，其餘則來自低關稅國家。

The significant investments behind our digital transformations have also been a key enabler. In addition to greatly improved data visibility and analytics, it has allowed us to streamline processes and overall workflow and has resulted in a more efficient and responsive organization, which is so critical in this environment. Progress we have made over the last several years has been tremendous. Even with that, we are not immune to the impact from the proposed tariffs. We remain focused on managing those items that are directly within our control. A critical area is ensuring that we stay close to the consumer and understand how they are reacting against this backdrop.

我們數位轉型背後的大量投資也是一個關鍵推動因素。除了大幅提高資料可見性和分析能力之外，它還使我們能夠簡化流程和整體工作流程，並使得組織更有效率、更容易回應，這在這種環境下至關重要。過去幾年我們取得了巨大的進步。即便如此，我們也無法免於擬議關稅的影響。我們仍然專注於管理那些我們直接可以控制的項目。一個關鍵領域是確保我們貼近消費者並了解他們對此背景的反應。

Recently, there has been a notable shift in consumer sentiment, which has driven increased emphasis on value and heightened caution in their spending. In terms of the impact on our categories, let's start with battery. On a global basis, we expect the battery category to deliver low single-digit growth over the long-term. However, weakened consumer confidence and persistent inflation across the store may pressure volumes in the short-term.

最近，消費者情緒發生了明顯轉變，更加重視價值，消費更加謹慎。就對我們類別的影響而言，讓我們從電池開始。從全球範圍來看，我們預計電池類別長期內將實現低個位數成長。然而，消費者信心減弱和持續的通貨膨脹可能會在短期內對銷售造成壓力。

In Auto Care, we expect consumer caution to have a mix impact in the short term as some consumers move into our categories and away from do-it-for-me, while others prioritize their spend in other categories, which may be less discretionary for them. When we pull all of this together, tariffs, consumer confidence and overall demand, we have tempered our outlook over the remainder of the year, which John will cover now.

在汽車保養方面，我們預計消費者的謹慎態度將在短期內產生混合影響，因為一些消費者轉向我們的類別並遠離「幫我做」的商品，而其他消費者則優先考慮其他類別的支出，這對他們來說可能不那麼隨意。當我們將關稅、消費者信心和整體需求等所有因素綜合起來時，我們已經調整了對今年剩餘時間的展望，約翰現在將對此進行介紹。

Thanks, Mark. Let me start with some details around tariff impacts. In an admittedly very fluid environment, we did want to share some directional impacts these tariffs would have on our business and how we are working to address them. But let me first address fiscal year 2025. We have already taken a number of steps, including sourcing shifts and pricing and do not expect tariffs to have a direct impact on our P&L this year.

謝謝，馬克。讓我先介紹一下關稅影響的一些細節。在非常不穩定的環境中，我們確實想分享這些關稅對我們的業務產生的一些方向性影響以及我們如何努力解決這些影響。但我首先要談 2025 財年。我們已經採取了一系列措施，包括採購轉變和定價，預計關稅不會對我們今年的損益產生直接影響。

Now moving to our exposures over a longer period of time. Assuming tariffs announced this year remain in their current form, let me walk through our gross unmitigated exposures. Roughly 5% of our cost of goods are exposed to tariffs left behind China at an incremental 145% rate. And approximately 10% to 15% of our cost of goods are exposed to the rest of the world reciprocal tariffs. We have some exposure to the steel and aluminum tariffs announced this year as well.

現在轉向我們較長時期的曝光。假設今年宣布的關稅保持目前的形式，讓我來介紹一下我們未緩解的總風險敞口。我們的商品成本中約有 5% 受到中國留下的關稅影響，稅率遞增至 145%。我們的商品成本中約有 10% 到 15% 受到世界其他地區互惠關稅的影響。我們也對今年宣布的鋼鐵和鋁關稅有所了解。

All in, this represents an incremental total headwind of roughly $150 million, of which 85% is attributable to the China tariffs. It's important to remember this is unmitigated. We are already working on solutions to minimize the ongoing impact and believe over the next 12 months, we can reduce the amount of our China-sourced product by close to half through alternative sourcing partners and mix of our own internal supply. And based on the flexibility of our redesigned supply chain, we have the ability to rebalance our network and minimize the impact of tariffs related to all other countries.

總體而言，這意味著總逆風增加約 1.5 億美元，其中 85% 歸因於中國關稅。重要的是要記住，這是毫無緩解的。我們已經在努力尋找解決方案，以盡量減少持續的影響，並相信在未來 12 個月內，我們可以透過替代採購合作夥伴和我們自己的內部供應組合，將來自中國的產品數量減少近一半。基於我們重新設計的供應鏈的靈活性，我們有能力重新平衡我們的網路並最大限度地減少與所有其他國家相關的關稅的影響。

We've also already taken a round of pricing related to the initial round of tariffs, including for steel and aluminum. And as we gain more insights and certainty, we will assess additional commercial actions, including product offerings and additional pricing. By minimizing our China exposure, rebalancing our internal supply network and targeted commercial actions, we have line of sight to offset the impacts of tariffs over the next 12 months.

我們也已經對第一輪關稅進行了定價，包括對鋼鐵和鋁的定價。隨著我們獲得更多見解和確定性，我們將評估其他商業行動，包括產品供應和額外定價。透過盡量減少在中國的業務往來、重新平衡內部供應網絡和有針對性的商業行動，我們預計在未來 12 個月內抵消關稅的影響。

Looking to the balance of this year, while we are very encouraged with our year-to-date results, we know the recent volatility is negatively impacting consumer sentiment. Based on the most recent economic indicators, consumers are beginning to pull back on spending and becoming more value conscious with their dollars. Based on the demand environment, we now expect the following results in the back half of fiscal '25.

展望今年的平衡，雖然我們對年初至今的業績感到非常鼓舞，但我們知道最近的波動正在對消費者情緒產生負面影響。根據最新的經濟指標，消費者開始減少支出，並且更重視金錢的價值。根據需求環境，我們目前預計 25 財年下半年將取得以下結果。

For the third quarter, we expect reported and organic net sales in the range of flat to down 2%. Gross margin roughly flat versus prior year, despite the expected slowdown in consumer spending and the related impact on our revenue, we intend to continue to invest in A&P behind our Podium launch during the quarter, resulting in adjusted EPS in the range of $0.55 to $0.65 per share.

對於第三季度，我們預計報告的有機淨銷售額將在持平至下降 2% 之間。毛利率與去年基本持平，儘管預計消費者支出將放緩並對我們的收入產生相關影響，但我們打算在本季度繼續投資於 Podium 推出後的 A&P，調整後的每股收益將在 0.55 美元至 0.65 美元之間。

For the full year, we expect reported and organic net sales in the range of flat to up 2%. Gross margin to be up 50 basis points and in line with prior guidance. Adjusted EBITDA and adjusted EPS in the range of $610 million to $630 million and $3.30 to $3.50 per share, both reflecting positive growth at the mid-point versus prior year results. Our current outlook for earnings excludes any impacts from the recently acquired APS business in Europe.

我們預計全年報告淨銷售額和有機淨銷售額將在持平至成長 2% 之間。毛利率將上漲 50 個基點，與先前的預期一致。調整後的 EBITDA 和調整後的 EPS 介於 6.1 億美元至 6.3 億美元和每股 3.30 美元至 3.50 美元之間，均反映出與去年同期業績相比的中期正增長。我們目前的獲利展望不包括最近收購的歐洲 APS 業務的任何影響。

For the remainder of 2025, we expect the results of this business to have a modestly dilutive impact to our consolidated gross margins and neutral to earnings per share. We have also made incremental investments in inventory this year as we work on various tariff mitigation strategies, as well as planned additional investments in working capital related to our recently announced European battery acquisition. Based on these additional uses of cash, we now expect free cash flow in the range of 6% to 8% of net sales and debt paydown of roughly $100 million for the full year.

對於 2025 年剩餘時間，我們預期該業務的業績將對我們的合併毛利率產生適度稀釋影響，對每股盈餘產生中性影響。今年，我們也在製定各種關稅減免策略的過程中對庫存進行了增量投資，並計劃對與我們最近宣布的歐洲電池收購相關的營運資金進行額外投資。基於這些額外的現金用途，我們現在預計全年自由現金流將達到淨銷售額的 6% 至 8%，債務償還約為 1 億美元。

In closing, we delivered a strong second quarter, but we entered the third quarter facing an uncertain macro environment and consumer. The organization has rallied around these macro challenges, and we have built a strategic advantage through our investments in our network, which will enable us to perform at a high level in a dynamic environment. I am highly confident we are executing the right strategies to deliver on our long-term financial algorithm.

最後，我們第二季表現強勁，但進入第三季後，我們面臨不確定的宏觀環境和消費者。該組織已經團結起來應對這些宏觀挑戰，我們透過對網路的投資建立了戰略優勢，這將使我們能夠在動態環境中發揮高水準的表現。我非常有信心，我們正在執行正確的策略來實現我們的長期財務演算法。

With that, let's open the call for questions.

現在，讓我們開始提問。

Thank you.

謝謝。

Ladies and gentlemen, we'll now begin the question and answer session. (Operator Instructions)

女士們、先生們，我們現在開始問答環節。（操作員指示）

Peter Grom from UBS.

瑞銀的 Peter Grom。

Thanks operator. Good morning everyone. So I just wanted to follow-up on the tariff commentary. I know you just ran through that and all that color was incredibly helpful. But just given the many moving pieces, can you maybe just run through the mitigation impacts again? And then I guess what I'm really trying to understand, and I recognize the situation is fluid, it's really early to be talking about fiscal '26. But I was hoping to get some color in terms of how we should be thinking about or how we should be modeling this $150 million gross number versus the expectation that you anticipate to mitigate that headwind over the next 12 months?

謝謝接線生。大家早安。所以我只是想跟進關稅評論。我知道你剛剛經歷了這一切，所有這些顏色都非常有用。但考慮到許多活動因素，您能否再次回顧緩解影響？然後我想我真正想了解的是，我認識到情況是不斷變化的，現在談論 26 財年還為時過早。但我希望了解我們應該如何考慮或如何模擬這個 1.5 億美元的總額，以及您預計在未來 12 個月內緩解這一不利因素的預期？

I just apologize for the late start today. We had some technological issues, I just want to make sure we're coming through clearly to you, Peter, and the call. Are you hearing us okay?

我為今天的遲到深感抱歉。我們遇到了一些技術問題，我只是想確保我們能夠清楚地向您、彼得和電話傳達訊息。你聽見我們說話了嗎？

You sound great, guys.

你們聽起來很棒，夥計們。

Well, great question, Peter. It's obviously probably the most timely question given the environment. We want to provide as much clarity as we can. I think what we want to do is, it's important to separate and understand the impact of the different tranches of tariffs and the impact that they may have. I think from a headline standpoint, Peter, I'm going to turn it over to John to kind of walk through the details. But from a '25 standpoint, we have mitigated the impact of tariffs on '25. So we've solved the impact there. I think as we look ahead to '26, we are in the process of mitigating that exposure. It will take time, but we have line of sight over the next 12 months to mitigate all impact from tariffs over that period of time.

嗯，彼得，這個問題問得好。考慮到當前的環境，這顯然是最及時的問題。我們希望提供盡可能清晰的解釋。我認為我們要做的是，區分和理解不同等級關稅的影響以及它們可能產生的影響非常重要。彼得，我認為從標題的角度來看，我將把它交給約翰來詳細介紹。但從『25』的角度來看，我們已經減輕了關稅對『25』的影響。所以我們已經解決了那裡的影響。我認為，展望 26 年，我們正在減輕這種風險。這需要時間，但我們有希望在未來 12 個月內減輕關稅在這段時間內的所有影響。

And John can walk through some of the details about how we're thinking about it.

約翰可以詳細介紹一下我們對此的看法。

Yes. Thanks, Mark. So I gave a gross tariff number of $150 million in the prepared remarks, and I want to kind of break that down into a couple of buckets. The first one are tariffs in place already. And then the second group are tariffs that are announced but not yet active. So the tariffs that are already in place include the steel and aluminum tariffs that we talk about and then the China IHEPA. And as Mark said, we've effectively neutralized the direct impacts of these tariffs. That was through sourcing shifts, pricing and then inventory that we have on hand, which is offsetting any impact that we would have to '25, and that's going to carry forward for us as well.

是的。謝謝，馬克。因此，我在準備好的演講中給出了 1.5 億美元的總關稅數字，我想將其分解成幾個部分。第一個是已經實施的關稅。第二組是已經宣布但尚未生效的關稅。因此，已經實施的關稅包括我們談論的鋼鐵和鋁關稅，以及中國 IHEPA。正如馬克所說，我們已經有效地消除了這些關稅的直接影響。這是透過購買班次、定價以及我們手頭上的庫存來實現的，這抵消了我們對 25 年產生的任何影響，而且這也將延續到我們未來。

Now we'll turn to the tariffs that have been announced but aren't yet in place, which are really the reciprocal tariffs. So you've got China, which is the 125% incremental tariff and then rest of world tariffs, which are currently 10%. So starting with China, I think Mark mentioned that this represents only about 5% of our consolidated COGS. That really is the overwhelming majority of the absolute tariff exposure. So whether or not those incremental 125 rates for China go into effect, we already have plans in place to reduce the underlying China exposure through sourcing from something like 5% to 2% to 3%. So we'll cut that in half relatively quickly over the next 12 months. And then the rest of the world tariffs are, which are about 10% to 15% of our consolidated cost of goods, these are exposed to the 10% reciprocal rest of world tariff, and we're actively working to minimize those by sourcing changes, rerouting our network and then commercial actions that we will continue to take.

現在讓我們來談談已經宣布但尚未實施的關稅，這些關稅實際上是互惠關稅。因此，中國徵收 125% 的增量關稅，而世界其他國家的關稅目前為 10%。因此，從中國開始，我認為馬克提到這只占我們合併銷貨成本的 5% 左右。這確實佔絕對關稅風險的絕大部分。因此，無論針對中國的增量 125 稅率是否生效，我們都已製定計劃，透過採購將中國的潛在風險敞口從 5% 降至 2% 至 3%。因此，我們將在未來 12 個月內相對快速地將這一數字減半。然後，世界其他地區的關稅約占我們綜合商品成本的 10% 至 15%，這些關稅都受到 10% 的世界其他地區互惠關稅的影響，我們正在積極努力透過採購變更、重新規劃我們的網路以及我們將繼續採取的商業行動來盡量減少這些關稅。

So we've addressed and offset the tariffs already in place. And then we have concrete plans today to address about 60% to 70% of the tariffs announced, but not yet implemented. And that's going to happen over the next 12 months. So we're confident for the remainder of the 30% to 40% that we'll continue to look at additional supply chain actions and commercial actions to get -- take care of those. And so we think that over the course of the next year, ultimately, we'll be able to offset the entire exposure.

因此，我們已經解決並抵消了已經實施的關稅。今天我們制定了具體計劃，以解決已宣布但尚未實施的約 60% 至 70% 的關稅。這將在未來 12 個月內實現。因此，我們有信心，對於剩下的 30% 到 40% 的問題，我們將繼續研究額外的供應鏈行動和商業行動來解決這些問題。因此我們認為，在明年，我們最終將能夠抵銷全部風險敞口。

Now to your point about '26, we're continuing to work through how that will look, and we'll give guidance in a couple of quarters, but it will be a transitional year where we start incurring some of these larger tariffs in the next month, and those will go into inventory and then they'll start coming back out into our P&L. So we'll give a better color what the total impact of '26 will be in a couple of quarters, but we think we can minimize the gross number by at least half, if not more.

現在回到您對 26 年的觀點，我們正在繼續研究具體情況，並將在未來幾個季度給出指導，但這將是一個過渡年，我們將在下個月開始產生一些較大的關稅，這些關稅將進入庫存，然後它們將開始回到我們的損益表中。因此，我們將在未來幾季更好地說明 26 年的整體影響，但我們認為我們可以將總數減少至少一半，甚至更多。

Great thanks so much that was super helpful. I'll pass it on.

非常感謝，這非常有幫助。我會傳達的。

Thanks Peter.

謝謝彼得。

Bill Chappell from Truist Securities.

Truist Securities 的 Bill Chappell。

I know there's -- the tariffs it's murky in kind of the outlook and I appreciate the mitigation done kind of for your specifically. But what are you hearing or kind of what's your evaluation of, I guess, the devices out there that use batteries? I mean I'm trying to think of -- I mean, clearly, like a lot of washing machines are made in China, and they're going to see a big tariff coming over to the U.S. and so -- but washing machines don't use batteries to my knowledge. Have you looked at kind of the device market, how that's going to be impacted and then -- and kind of put that into your forecast? Because I understand consumers are cautious now, but what happens when those devices go up 30%, 50% in price? Just trying to understand how that goes into your algebra for the back half of the year.

我知道關稅的前景並不明朗，我很感謝你們採取的緩解措施。但是您聽到了什麼，或者您對使用電池的設備有何評價？我的意思是，我試著想想——我的意思是，很明顯，很多洗衣機都是中國製造的，它們將會看到對美國徵收高額關稅等等——但據我所知，洗衣機並不使用電池。您是否研究過設備市場，了解它將受到怎樣的影響，並將其納入您的預測中？因為我知道消費者現在很謹慎，但是當這些設備的價格上漲 30% 或 50% 時會發生什麼？只是想了解這對你下半年的代數學習有何影響。

So we take all of those factors into account as we kind of look forward. And we certainly are mindful devices are going to likely become more expensive. Those devices that previously used our batteries will continue to use our batteries. And -- but you are going to see consumers react to higher prices. You have seen -- we have recent experience with this, which in COVID, you had a lot of that device pull forward where consumers bought a lot of devices, then they didn't for a couple of years, and they were just getting back into a replenishment cycle on devices. So we're in contact with our OEM partners. We understand the way they're thinking about it. As John said, some of these tariffs are in place, some of them aren't yet. We'll have to wait and see what happens with that.

因此，我們在展望未來時會考慮所有這些因素。我們當然知道這些設備可能會變得更昂貴。那些以前使用我們電池的設備將繼續使用我們的電池。而且——但你會看到消費者對更高的價格做出反應。你已經看到了——我們最近有這方面的經驗，在 COVID 期間，有很多設備提前購買的情況，消費者購買了很多設備，但幾年後就不再購買了，他們又回到了設備的補貨週期。因此我們與我們的 OEM 合作夥伴保持聯繫。我們了解他們的想法。正如約翰所說，其中一些關稅已經實施，有些尚未實施。我們將拭目以待，看看會發生什麼。

But we -- I think this is in part of the logic behind taking the prudent approach to call down our top line outlook because it is an uncertain consumer environment. We do expect consumers to pull back. That will include device ownership, and that would impact our replenishment if possible.

但是，我認為這是我們採取審慎態度下調營業收入預期的部分邏輯，因為消費環境不確定。我們確實預期消費者將會減少。這將包括設備所有權，如果可能的話，這將影響我們的補貨。

And so just to clarify, you're assuming that it gets worse just as price -- higher prices coming in and that's factored into the back half. Is that the right way to look at it?

因此，需要澄清的是，您假設情況會隨著價格上漲而變得更糟——價格上漲已計入後半部分。這是正確的看待方式嗎？

Yes.

是的。

Okay. And then just on Auto Care, I mean, historically, when there's been a slowdown in kind of new car sales, it helps the Auto Care because people are taking care of spending more time on their existing used. Is that kind of how you're looking at this summer? Or is it too early to tell?

好的。然後就汽車保養而言，我的意思是，從歷史上看，當新車銷售放緩時，它會對汽車保養有所幫助，因為人們會花更多的時間在現有的二手車上。這就是你對這個夏天的看法嗎？還是現在說還太早？

Well, what I would say is, there's headwinds and tailwinds that emerge in difficult economic times with consumers on Auto Care. I mean, first, it's slightly -- some of our categories are more discretionary for consumers, and so they will opt out of those purchases in favor of other categories, which are less discretionary for those consumers. However, to your point, people are going to hold on to their cars longer and cars -- the age of the fleet is going to continue to increase in age. They will also migrate from do-it-for-me to do-it-yourself, which helps create a tailwind within the Auto Care category. So there's puts and takes on balance, we do expect some impact to consumers as they pull back and become more cautious. But there's some natural offsets, which occur as well. And again, all of that has been taken into account as we provided our forward look.

嗯，我想說的是，在經濟困難時期，汽車保養消費者會遇到逆風和順風。我的意思是，首先，我們的某些類別對消費者來說更具自由裁量權，因此他們會選擇放棄這些類別的購買，而選擇其他對消費者來說自由裁量權較少的類別。然而，正如您所說，人們會保留他們的汽車更長時間，而且汽車的年齡會繼續增加。他們也將從“幫我做”轉變為“自己做”，這有助於在汽車護理類別中創造順風。因此，總的來說，我們確實預期消費者會因為退縮和變得更加謹慎而受到一些影響。但也存在一些自然的抵消現象。再次強調，我們在展望未來時已經將所有這些都考慮在內。

Yes. Maybe just to add for that for some more color. Bill, we're expecting low single-digit increases in Auto in the third quarter. So we're still relatively bullish on our Auto business going into the busy season. And that's behind Podium and you saw the shift to the other refrigerants from Q2 to Q3. So that should boost the quarter a little bit.

是的。也許只是為了增加一些顏色。比爾，我們預計第三季汽車銷售將出現低個位數成長。因此，我們對進入旺季的汽車業務仍然相對看好。這就是 Podium 背後的情況，您看到了從第二季到第三季向其他冷媒的轉變。因此這應該會對本季產生一定推動作用。

And Bill, as a reminder, the Podium series is a super premium offering, which, again, those consumers tend to be more immune to the pricing impact than others. And we've launched that product in a timely place right now from a consumer standpoint as they may migrate into the do-it-yourself as opposed to do-it-for-me.

比爾，提醒一下，Podium 系列是一款超高階產品，這些消費者往往比其他消費者更不容易受到定價的影響。從消費者的角度來看，我們現在推出該產品正是時候，因為他們可能會轉向「自己動手做」而不是「幫我做」。

So again, just to clarify, your lowered top line guidance is Auto and battery? Or is it primarily battery and just a slight modification to Auto?

所以，再次澄清一下，您降低的頂線指導是汽車和電池嗎？或者它主要是電池，只是對汽車進行了輕微的修改？

Yeah, it's more battery, auto, I mean, they're both down a little bit, but auto is still positive in the 3rd quarter.

是的，更多的電池、汽車，我的意思是，它們都下降了一點，但汽車在第三季仍然是正數。

Got it.

知道了。

Lauren Lieberman from Barclays

巴克萊銀行的勞倫·利伯曼

Great, thanks. Good morning. I was curious if you could talk a little bit about any retailer destocking that you have seen, you haven't mentioned it yet, but I would think that, that's something that could well be a headwind for 3Q. So can you talk about what you think destocking wise?.

太好了，謝謝。早安.我很好奇，您是否可以談談您所看到的任何零售商去庫存的情況，您還沒有提到這一點，但我認為這很可能會對第三季度造成不利影響。那麼您能談談您認為去庫存的明智之舉嗎？

Sure, Lauren. I think as you've seen some of the recent scanner trends that have come out and you've seen some softening in the consumer, including in the battery category. Naturally, that will cause a slight uptick in inventory on hand with retailers. I wouldn't say it's significant or meaningful. It's just a natural effect of some softer POS sales. We think that will mitigate over time as retailers moderate the replenishment orders, and we have taken that into account in sort of our 3Q and 4Q forecast.

當然，勞倫。我想，正如您所看到的，最近出現了一些掃描器趨勢，並且您已經看到了消費者（包括電池類別）的一些疲軟趨勢。自然，這將導致零售商庫存略有增加。我不會說它很重要或有意義。這只是 POS 銷售疲軟的自然結果。我們認為，隨著零售商減少補貨訂單，這種情況會隨著時間的推移而緩解，我們在第三季和第四季的預測中已經考慮到了這一點。

And then curious if you can tell us a little bit more about the APS acquisition. Just is this primarily the manufacturing asset or I know that APS manufactured Panasonic in Europe. So is that also going to be part of your portfolio going forward? And if so, just anything you can share with us strategically on how Panasonic would fit in?

我很好奇您是否可以告訴我們一些有關 APS 收購的資訊。這主要是製造資產嗎？或者我知道 APS 在歐洲製造松下。那麼這也將成為您未來投資組合的一部分嗎？如果是的話，您能否從戰略角度與我們分享一下松下將如何融入其中？

Sure. We are really excited to be able to get that one closed. We just closed on this past Friday. It really has a number of attributes to it. One is greater scale in our European business, notably in Germany, U.K., Poland, Spain as key market. It is another asset, to your point, in our network, and it provides a manufacturing facility in Poland, which, again, will help us continue to lean into the in-region, for-region manufacturing. We were just -- we just closed on Friday. The integration teams are meeting actually this week to get together and understand how do we want to push these 2 businesses together and create the most value. There is a brand transition from Panasonic to the Energizer brand. So that will take place over the balance of this calendar year. So we'll be transitioning from Panasonic into the Energizer family of brands over the next 8 months and so, and that will be part of the process that the teams are discussing this week as well.

當然。我們非常高興能夠完成這件事。我們剛在上週五結束營業。它確實具有許多屬性。一是歐洲業務規模擴大，特別以德國、英國、波蘭、西班牙為重點市場。正如您所說，這是我們網路中的另一項資產，它在波蘭提供了一個製造工廠，這將再次幫助我們繼續傾向於在區域內、為區域進行製造。我們剛剛——我們週五就關門了。整合團隊本週實際上正在開會，共同了解如何推動這兩項業務的整合並創造最大的價值。品牌從Panasonic 過渡至勁量 (Energizer) 品牌。因此這將在今年餘下時間內完成。因此，我們將在未來 8 個月左右的時間內從松下品牌過渡到勁量品牌系列，這也是本週團隊討論的流程的一部分。

Okay, great. Thanks so much.

好的，太好了。非常感謝。

Robert Oddenstein from Energizer.

來自 Energizer 的羅伯特奧登斯坦。

Great. I've got 2 questions, but let me start off with one and then we'll go to the next. So first, when we go out and kind of do our trade visits and you look at batteries and you look at the back, what we find is Duracell batteries made in China, a lot of private label made in Vietnam, private label made in China. And so this is a multi-dimensional situation, right? And can you help us think through how you're looking at the impact on competitors, what competitors may do with their supply chains and what that overall impact will be on competitive dynamics on one level and the other, just how retailers may start to change how they think about competitors and private label, right? Because if you think this is all going to continue for some time, you may decide to switch which suppliers you want to work with based on your perceptions of the suppliers' supply chains. So love to kind of get that dimension of the whole tariff situation, if you can.

偉大的。我有兩個問題，但我先回答一個，然後再討論下一個。首先，當我們出去進行貿易訪問時，你會看到電池，然後看看背面，我們發現金霸王電池是中國製造的，很多自有品牌是越南製造的，自有品牌是中國製造的。所以這是一個多維的情況，對嗎？您能否幫助我們思考一下，您如何看待對競爭對手的影響，競爭對手可能會對其供應鏈採取什麼措施，以及這種影響將對競爭動態產生怎樣的整體影響，零售商可能會如何開始改變他們對競爭對手和自有品牌的看法，對嗎？因為如果您認為這一切將持續一段時間，您可能會根據對供應商供應鏈的看法來決定更換您想要合作的供應商。所以如果可以的話，我很想了解整個關稅狀況。

Robert, let me start with on the competitive set. I think the way to think about this is, our main competitor is a great competitor. I don't think -- we may have different input headwinds or production headwinds. I would say, based on the way we think about it, we think we're largely in the same place as our main competitor, and there's not necessarily a discernible advantage for us in that space. I think if you put private label, the way to provide some dimension to this is if you think about the private label portion of the category in the U.S., call it, roughly 20% of the category, about 50% of that is manufactured in U.S. or in sort of I'll call them low tariff countries, including Vietnam. The other 50% of that 20% is manufactured in China.

羅伯特，讓我先從競爭方面說起。我認為思考這個問題的方式是，我們的主要競爭對手是一個強大的競爭對手。我不認為——我們可能面臨不同的投入阻力或生產阻力。我想說，根據我們的想法，我們認為我們與主要競爭對手處於大致相同的位置，並且我們在該領域不一定具有明顯的優勢。我認為，如果你把自有品牌放在一起，那麼提供一些維度的方法是，如果你考慮美國自有品牌類別的部分，稱之為大約 20% 的類別，其中約 50% 是在美國製造的，或者在某種我稱之為低關稅的國家，包括越南。這20%中的另外50%在中國製造。

So to your point, is there an opportunity? There could be, certainly one that our teams are chasing. We don't want to necessarily get into the private label business. We said our philosophy on private label is we're going to engage in private label to the extent it can advantage our brands. And certainly, we have a stable of value brands that can help add to the offerings that any retailer may have and may be able to provide an augment to the private label in the form of value brand in their store.

那麼就你的觀點而言，還有機會嗎？可能有，當然有我們的團隊正在追逐的。我們不一定想涉足自有品牌業務。我們說過，我們對自有品牌的理念是，只要自有品牌能為我們的品牌帶來優勢，我們就會積極參與自有品牌的推廣。當然，我們擁有一系列穩定的價值品牌，可以幫助增加任何零售商可能擁有的產品，並能夠以價值品牌的形式在其商店中增強自有品牌。

Right. So wouldn't it make commercial sense to redouble those efforts with Rayovac and saying, look, let us come in with the Rayovac and phase out your private label, and we'll give you that value tier or develop some other strategy, whether it's kind of a joint sort of Rayovac private brand or some kind of twist with the retailers, but kind of use this situation as an opportunity to deepen your relationship with retailers and gain incremental shelf space?

正確的。那麼，加倍努力與 Rayovac 合作並說，看，讓我們推出 Rayovac 並逐步淘汰您的自有品牌，我們將為您提供那個價值層或製定其他策略，無論是某種聯合的 Rayovac 自有品牌還是與零售商進行某種轉變，但利用這種情況作為加深與零售商的關係並獲得增量貨架空間的機會，這難道不具有商業意義嗎？

Love the way you're thinking. I can assure you we're having the same conversations internally as well.

喜歡你的思考方式。我可以向你保證，我們內部也在進行同樣的對話。

All right. Well, I could -- I don't want to monopolize the call. I got a bunch of other questions, so I'll pass it on and we can follow up later.

好的。好吧，我可以──我不想獨佔電話。我還有很多其他問題，所以我會將其轉發給您，我們稍後再跟進。

Andrea from JPMorgan.

摩根大通的安德里亞。

So I wanted to just see if you can comment on the -- on the exit rate of the quarter on the underlying consumption rate vis-a-vis what we're seeing in the category, perhaps step back and talk about the category in the U.S. and then as you see the exit rate. And then related to what you just discussed about private label and Rayovac, I was wondering because your price mix was down about 50 bps in the second quarter, and that includes trade promotions. So if you can talk about how the consumer has been behaving in terms of your higher price tiers against Rayovac and against like even entry level or even packs like as we think about it? And you have obviously one customer on club and think about like how you've been able to move channels as the consumers and meet the consumers where they are.

因此，我只是想看看您是否可以評論一下——關於本季度的退出率、基礎消費率與我們在該類別中看到的情況，也許可以退一步談談美國的類別，然後再看看退出率。然後與您剛才討論的自有品牌和 Rayovac 相關的問題，我很好奇，因為你們的價格組合在第二季度下降了約 50 個基點，其中包括貿易促銷。那麼，您能否談談消費者對貴公司較高價格系列產品的表現，與 Rayovac 相比，甚至與入門級系列產品，甚至與套裝系列產品相比，表現如何？顯然，您在俱樂部中有一個客戶，並且思考如何能夠隨著消費者轉移管道並在消費者所在的地方與他們見面。

Thanks, Andrea. A lot of questions in there. Let me see if I can hit them and then you can follow-up on anyone that I may have missed. I mean let's just talk category from a battery standpoint. Globally, what we saw through February was the category volume was roughly was -- it grew about 1%, 1.5% through February. In the U.S. through the end of March, volume was flat. But what you've seen in the latest 13-week data end of April is that you've seen some volume declines over that time period. So you've seen some sequential softening in the category from a volume standpoint.

謝謝，安德里亞。這裡面有很多問題。讓我看看是否能夠擊中它們，然後你可以跟進我可能遺漏的任何人。我的意思是讓我們從電池的角度來談論類別。從全球來看，截至 2 月份，我們看到類別數量大致增加了約 1% 至 1.5%。截至三月底，美國的貿易量持平。但從 4 月底的最新 13 週數據可以看出，該時間段內的交易量有所下降。因此，從數量的角度來看，您已經看到該類別出現了一些連續的疲軟。

Overall promotion levels, to your point, I mean, you're seeing stable promotions. In fact, it's down year-over-year in terms of the percentage with the price reduction. It's above -- a little bit above historical levels, but nothing concerning from an overly promotional environment. You are seeing depth really flat year-over-year, but below historical averages. So there's a little -- there's a few puts and takes there, but I would say relatively benign and healthy promotional environment.

整體晉升水平，就您的觀點而言，我的意思是，您看到的是穩定的晉升。事實上，從降價百分比來看，去年去年有所下降。它略高於歷史水平，但從過度促銷的環境下來看，並沒有什麼值得擔心的。您會看到深度與去年同期相比確實持平，但低於歷史平均。因此，雖然存在一些問題，但我認為這是一個相對良性和健康的促銷環境。

We do have the broad offering, I mean the benefit of our business is we are in distribution in every channel. So as consumers migrate in search of value, we are there to meet them. We have different pack sizes. We have different brands. We have different offerings that we can meet them in terms of whatever value orientation that they may have. In terms of the value and volume mix, John, can probably give you the way we're looking at it from a Q3 and Q4 split.

我們確實有廣泛的產品，我的意思是我們業務的好處是我們在每個通路都有分銷。因此，當消費者為了尋求價值而遷移時，我們會滿足他們的要求。我們有不同尺寸的包裝。我們有不同的品牌。我們提供不同的產品，以滿足他們的任何價值取向。就價值和數量組合而言，約翰可能可以從第三季和第四季的劃分角度向您介紹我們對此的看法。

I can, let me just wrap up on Q2, though, just to give a little bit more. So the actual pricing on battery was relatively flat of the 50 basis points down, it was more investments and promotions that we did on auto as we came into the season. So that was more of the driver of the down 50. So battery was actually to Mark's point, relatively flat. Looking forward, as we think about maybe just to map out Q3 and Q4 and give a little more color, we expect to be flat to down 2% in the third quarter. That's really low single-digit declines in battery. We're going to offset those partially with low single-digit increases in auto, which is going to continue to benefit from the Podium launch and those shifting refrigerant sales. So also on a reported basis, currency has -- the dollar has weakened as we know. So that should leave our full year reported currency impact relatively neutral. We've kind of gone up and down and we're back to neutral for the full year.

我可以，不過，讓我總結一下第二季度，再多說一點。因此，電池的實際價格相對平穩，下降了 50 個基點，這是進入旺季後我們在汽車方面進行的更多投資和促銷。所以這才是導致 50 跌幅更大的原因。因此，電池實際上正如馬克所說，相對來說電量不足。展望未來，當我們考慮可能只是規劃第三季和第四季並提供更多細節時，我們預計第三季將持平或下降 2%。這確實是電池電量下降的低個位數。我們將透過汽車產業的低個位數成長來部分抵消這些影響，汽車產業將繼續受益於 Podium 的推出和冷媒銷售的變化。因此，據報道，美元已經貶值。因此，我們全年報告的貨幣影響應該會相對中性。我們經歷了一些起伏，但全年又回到了中性水平。

We expect gross margin to be roughly flat. And then we're calling for EPS of $0.55 to $0.65 and that's really the expectation that we're going to continue investing in A&P in the third quarter behind our Podium launch, and that's in spite of some of the expected consumer headwinds that we're seeing in the near term. As we go, maybe just to give a little bit of color on the fourth quarter since we're kind of changing our outlook a bit here. We expect strong performance as the full impact of pricing. So we talked about the pricing that we're going to take to offset tariffs. That's going to hit in full in the fourth quarter, and we should see that. We also took some pricing for innovation, and that's also going to be realized in the fourth quarter. That's going to benefit margins. And then we don't expect to spend nearly as much upon Podium in the fourth quarter as we did in the third quarter. So we'll see kind of a lift from that. And that really should result in some nice earnings for us as we finish out the year.

我們預計毛利率將大致持平。然後，我們預計每股收益為 0.55 美元至 0.65 美元，這實際上是我們在 Podium 推出後的第三季度繼續投資 A&P 的預期，儘管我們預計短期內會出現一些消費逆風。隨著我們的進展，也許只是為了給第四季度帶來一點色彩，因為我們在這裡稍微改變了我們的展望。我們預計，定價將帶來強勁的表現。因此，我們討論了將採取哪些定價來抵消關稅。這將在第四季度全面實現，我們應該會看到這一點。我們也對創新進行了一些定價，這也將在第四季度實現。這將有利於提高利潤率。我們預計第四季在 Podium 上的支出不會像第三季那麼多。因此我們會看到某種程度的提升。當我們結束今年的工作時，這確實會為我們帶來一些不錯的收益。

Anything we missed, Andrea?

安德里亞，我們遺漏了什麼嗎？

No.

不。

William Reuter from Bank of America.

美國銀行的威廉·路透（William Reuter）。

Just a couple for me and I know maybe I just got myself very confused. But in your first question when you were asked about fiscal year '26, I thought you said that you would be able to offset all of it by the end or by the time that happens. But then your last statement, you said, well, we can offset the gross impact by half, if not more. So can you help clarify that?

對我來說只有幾個，我知道也許我只是讓自己很困惑。但是，當您被問及 26 財年的第一個問題時，我以為您說過，您將能夠在年底或到那時抵消所有損失。但是您在最後聲明中說，我們可以將整體影響抵消一半，甚至更多。那你能幫忙澄清一下嗎？

Yes. We will have taken the actions necessary to offset the tariffs. We will start incurring those tariffs at the end of May, the incremental, the new ones that have been announced, but haven't started -- haven't been put in place. So we're going to see those dollar being spent throughout the summer and into the fall. We're taking actions currently to get out of these tariffs and we think in the next 12 months, we will be able to offset most of them, if not all. And so there will be a P&L impact through the course of '26, it's going to be dependent on rates and volumes and a lot of other things. So it's hard to give an exact number. What I would say is that gross $150 million number will be cut by half as we look at '26. We just don't know exactly where we're going to fall. And then we can take commercial actions and other things to offset in addition.

是的。我們將採取必要措施來抵消關稅。我們將在五月底開始徵收這些關稅，包括增量關稅和已經宣布但尚未開始徵收但尚未實施的新關稅。因此，我們將看到這些資金在整個夏季和秋季被花掉。我們目前正在採取行動擺脫這些關稅，我們認為在未來 12 個月內，我們將能夠抵消大部分（如果不是全部）關稅。因此，在 26 年期間，損益將受到一定影響，這將取決於利率、交易量以及許多其他因素。因此很難給出一個確切的數字。我想說的是，到 2026 年，1.5 億美元的總票房數字將會減少一半。我們只是不知道我們到底會跌落到哪裡。然後我們可以採取商業行動和其他措施來抵消。

I get it. Sorry for being dense. The second question, your free cash flow guidance is down a little bit for the year. Do you still expect to repay $150 million to $200 million of debt? Or is that expectation lowering?

我得到它。抱歉，我的思維很遲鈍。第二個問題，您今年的自由現金流預測略有下降。您還預計償還 1.5 億至 2 億美元的債務嗎？還是說這種期望正在降低？

Yes. We're going to shoot for $100 million. So we think we invested around $100 million in inventory for a couple of reasons. We knew we were going to invest in incremental inventory for plastic-free packaging because we're making that transition in North America this year. We've also invested in some additional inventory to try to mitigate some of the tariff exposure. So we expect some of these to start coming out in the third quarter. They should bolster us in the back half of the year, but it's still incremental to what we had planned coming in. So we're shooting for 6% to 8% free cash flow. And I think we're going to go for $100 million of debt paydown, which will happen in the third and fourth quarters.

是的。我們將爭取達到 1 億美元。因此，我們認為我們在庫存上投資了約 1 億美元，原因有幾個。我們知道我們將投資增加無塑膠包裝的庫存，因為我們今年將在北美進行這項轉變。我們也投資了一些額外的庫存，試圖減輕一些關稅風險。因此我們預計其中一些產品將在第三季開始推出。他們應該會在下半年加強我們，但這與我們計劃的相比仍然是漸進的。因此，我們的目標是實現 6% 至 8% 的自由現金流。我認為我們將償還 1 億美元的債務，這將在第三季和第四季完成。

Got it. And then just lastly for me, from a competitive perspective, the de minimis exemption that's being repealed or likely being repealed, do you think that this will have any positive impact on the company? Do you believe that there have been batteries that have been being shipped to the U.S. and sold through Temu or other retailers that haven't been subject to tariffs?

知道了。最後，從競爭的角度來看，正在廢除或可能被廢除的最低限度豁免，您認為這會對公司產生正面影響嗎？您是否相信有些電池已經運往美國並透過 Temu 或其他零售商銷售，而這些零售商尚未徵收關稅？

Yes. Bill, I think the best way to think about this is from an overall standpoint, we think our production network, we think our sourcing optionality and our distribution footprint provides us an advantage in this environment. It takes time to work through some of the sourcing changes, as well as the distribution changes that may come as a result of these tariffs. But I think we need to work through that and see where we land before we sort of call any benefit or detriment going forward.

是的。比爾，我認為思考這個問題的最佳方式是從整體的角度，我們認為我們的生產網絡、我們的採購可選性和我們的分銷足跡為我們在這種環境中提供了優勢。解決這些關稅可能帶來的一些採購變化以及分銷變化需要時間。但我認為，我們需要先解決這個問題，看看結果會如何，然後才能判斷未來會帶來什麼好處或壞處。

Okay, that's all for me. I'll pass to others. Thank you.

好的，我就講到這裡。我會傳給其他人。謝謝。

Thank you, Bill.

謝謝你，比爾。

Carla Casella from JPMorgan.

摩根大通的卡拉·卡塞拉。

Hi, one follow-up on Bill's question about the debt paydown. Do you have a long-term leverage target?

你好，我想跟進一下比爾關於債務償還的問題。有長期槓桿目標嗎？

Not that we -- what I would say is we're trying to get to 4x and below. And that debt paydown continues to be one of our -- it is our top priority. So we'll continue to focus on paying down. I think we'd like to get to 4 and below. Obviously, we got to get to 4.5 first, and we're just going to keep paying down and working our way towards that.

並不是說我們——我想說的是，我們正試圖達到 4 倍及以下。償還債務仍然是我們的首要任務之一。因此，我們將繼續專注於償還債務。我認為我們希望達到 4 及以下。顯然，我們必須先達到 4.5，然後我們將繼續付出努力並朝著這個目標努力。

Okay. Great. And then on the -- your raw material, does your basket of raw materials change dramatically with your move to the plastic-free packaging?

好的。偉大的。然後關於原料，隨著您轉向無塑膠包裝，您的原料籃子是否發生了巨大變化？

No, not dramatically. I mean the majority of our materials are still the same on the battery side, where it'd be steel, zinc, manganese, all those things. The packaging, it will just be a different mix of it. There might be a little bit more cardboard, but not a huge change. The bulk of the cost is in the battery, yes, the bulk of the cost is in the battery. So it's not that big a change.

不，不是很劇烈。我的意思是，在電池方面，我們的大部分材料仍然是一樣的，包括鋼、鋅、錳等等。包裝，只是不同的混合。可能會有稍微多一點的紙板，但變化不大。大部分成本都在電池上，是的，大部分成本都在電池上。所以這並不是什麼大的改變。

Okay. Great. And then just when you talked about bringing some of your sourcing in-house as you derisk from China, is that bringing into your own facilities worldwide? Or is it into other some third-party facilities sourcing?

好的。偉大的。那麼，當您談到將部分採購業務轉移到公司內部以降低來自中國的風險時，這是否意味著將其轉移到您位於世界各地的工廠？還是進入其他一些第三方設施採購？

We look at everything. So we'll look at bringing it in-house. We'll look at other partnerships that we could have in different parts of the world. This just -- it's just a big sourcing exercise to make sure that as we forecast demand around the world, what's the way we can fulfill that demand in the most cost-efficient way. And so we will mix and match our sourcing partners, internal, external to make sure we come up with optimized costs for our retailers.

我們觀察一切。因此，我們會考慮將其引入公司內部。我們將研究在世界不同地區建立其他合作夥伴關係。這只是一項大型採購活動，以確保我們能夠預測全球需求，並以最具成本效益的方式滿足該需求。因此，我們將混合搭配我們的內部和外部採購合作夥伴，以確保為我們的零售商提供最佳化的成本。

Okay great thanks so much.

好的，非常感謝。

And there are no further questions at this time. Mr. LaVigne, you may continue.

目前沒有其他問題。拉維尼先生，您可以繼續。

Thanks for everyone joining us today. Everyone, have a great rest of the day. Thanks for your interest in Energizer.

感謝大家今天加入我們。祝大家今天剩餘的時間過得愉快。感謝您對 Energizer 的關注。

Ladies and gentlemen, this concludes your conference call for today. We thank you very much for participating and ask that you may disconnect. Have a great day.

女士們、先生們，今天的電話會議到此結束。非常感謝您的參與，並請您斷開連線。祝你有美好的一天。