Edgewell Personal Care Co (EPC) 2023 Q1 法說會逐字稿

Good morning, everyone, and welcome to Edgewell's First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please also note, today's event is being recorded.

大家早上好，歡迎來到 Edgewell 的 2023 年第一季度收益電話會議。 （操作員說明）另請注意，今天的活動正在錄製中。

At this time, I'd like to turn the floor over to Chris Gough, Vice President of Investor Relations. Sir, you may begin.

現在，我想請投資者關係副總裁 Chris Gough 發言。先生，您可以開始了。

Good morning, everyone, and thank you for joining us this morning for Edgewell's First Quarter Fiscal Year 2023 Earnings Call.

大家早上好，感謝您今天早上加入我們，參加 Edgewell 的 2023 財年第一季度收益電話會議。

With me this morning are Rod Little, our President and Chief Executive Officer; and Dan Sullivan, our Chief Financial Officer. Rod will kick off the call, then hand it over to Dan to discuss our results and update to the full-year '23 outlook before we transition to Q&A. This call is being recorded, and will be available for replay via our website, www.edgewell.com.

今天早上和我在一起的是我們的總裁兼首席執行官 Rod Little；和我們的首席財務官 Dan Sullivan。 Rod 將開始電話會議，然後將其交給 Dan 討論我們的結果並在我們過渡到問答環節之前更新 23 年全年展望。此通話正在錄音中，可通過我們的網站 www.edgewell.com 重播。

During the call, we may make statements about our expectations for future plans and performance. This might include future sales, earnings, advertising and promotional spending, product launches, savings and costs related to restructurings, changes to our working capital metrics, currency fluctuations, commodity costs, category value, future plans for return of capital to shareholders and more.

在電話會議期間，我們可能會就我們對未來計劃和績效的期望發表聲明。這可能包括未來的銷售、收益、廣告和促銷支出、產品發布、與重組相關的儲蓄和成本、我們營運資本指標的變化、貨幣波動、商品成本、類別價值、未來向股東返還資本的計劃等等。

Any such statements are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, which reflect our current views with respect to future events, plans or prospects. These statements are based on assumptions that are subject to various risks and uncertainties, including those described under the caption Risk Factors in our Annual Report on Form 10-K for the year ended September 30, 2022, as may be amended in our Quarterly Reports on Form 10-Q, which is on file with the SEC. These risks may cause our actual results to be materially different from those expressed or implied by our forward-looking statements. We do not assume any obligation to update or revise any of these forward-looking statements to reflect new events or circumstances, except as required by law.

根據 1995 年《私人證券訴訟改革法案》的安全港條款，任何此類陳述都是前瞻性陳述，反映了我們目前對未來事件、計劃或前景的看法。這些陳述基於假設，這些假設受到各種風險和不確定性的影響，包括我們截至 2022 年 9 月 30 日的 10-K 表格年度報告中風險因素標題下描述的假設，這些假設可能會在我們的季度報告中進行修訂SEC 存檔的 10-Q 表格。這些風險可能導致我們的實際結果與我們的前瞻性陳述中明示或暗示的結果存在重大差異。除非法律要求，否則我們不承擔任何更新或修改任何這些前瞻性陳述以反映新事件或情況的義務。

During this call, we will refer to certain non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is shown in our press release issued earlier today, which is available at the Investor Relations section of our website. Management believes these non-GAAP measures provide investors with valuable information on the underlying trends of our business.

在本次電話會議中，我們將參考某些非 GAAP 財務指標。這些非 GAAP 措施不是根據公認的會計原則編制的。我們今天早些時候發布的新聞稿顯示了非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬，可在我們網站的投資者關係部分獲取。管理層認為，這些非 GAAP 指標為投資者提供了有關我們業務基本趨勢的寶貴信息。

With that, I'd like to turn the call over to Rod.

有了這個，我想把電話轉給羅德。

Thanks, Chris, and good morning, everyone, and thank you for joining us on our first quarter earnings call.

謝謝，克里斯，大家早上好，感謝您加入我們的第一季度財報電話會議。

This was a good start to the fiscal year with organic growth in line with our expectations and marking our seventh consecutive quarter of year-over-year organic growth. And despite significant currency headwinds and persistent cost inflation, we delivered strong bottom line results that reflected good commercial execution and highlights the underlying structural improvements we've made across our business.

這是本財年的良好開端，有機增長符合我們的預期，標誌著我們連續第七個季度實現同比有機增長。儘管存在重大的貨幣逆風和持續的成本通脹，但我們實現了強勁的利潤結果，反映了良好的商業執行，並突出了我們在整個業務中所做的潛在結構性改進。

As we discussed last quarter, there are 4 key components for success in fiscal 2023. First, delivering continued organic sales growth, enabled by better brand resonance and stronger presence on shelf. Second, strengthening our gross margins, leading to rate accretion for the full year. Third, making meaningful investments behind our brands; and finally, continuing to execute on our productivity and efficiency initiatives.

正如我們上個季度所討論的那樣，2023 財年的成功有 4 個關鍵組成部分。首先，通過更好的品牌共鳴和更強大的貨架影響力實現持續的有機銷售增長。其次，加強我們的毛利率，導致全年利率上升。第三，對我們的品牌進行有意義的投資；最後，繼續執行我們的生產力和效率計劃。

We made good progress against each of these elements this quarter, a testament to the hard work and dedication of our teams, all of which reinforces the confidence we have in our business going forward. Organic net sales growth was broad-based and in line with our expectations. Price execution has been solid across our business, and we continue to see elasticities in line with our modeling and below historic levels.

本季度我們在所有這些方面都取得了良好進展，這證明了我們團隊的辛勤工作和奉獻精神，所有這些都增強了我們對未來業務的信心。有機淨銷售額增長基礎廣泛，符合我們的預期。我們業務的價格執行一直很穩固，我們繼續看到彈性符合我們的模型並低於歷史水平。

Our international market growth was strong and delivered through both volume and price gains, reflecting a strong start to the sun season and continued strength in Women's Shave. And the Billie brand continues to outperform with clear momentum for its national retail launch that is just now beginning. In fact, with 3 strong brands, including Intuition and Hydro Silk, Edgewell is now the market leader in Women's Systems at Walmart.

我們的國際市場增長強勁，並通過銷量和價格的上漲實現，反映了陽光季節的強勁開局和女性剃須的持續強勁。而 Billie 品牌繼續以其剛剛開始的全國零售發布的明顯勢頭表現出色。事實上，Edgewell 擁有 3 個強大的品牌，包括 Intuition 和 Hydro Silk，現在是沃爾瑪女性系統的市場領導者。

Feminine Care grew 12% with both price and volume gains, benefiting from continued heightened demand in the category and our improved in-stock position. These results led to further progress in market shares across our business. In North America, we broadly held share in aggregate across our portfolio. And in key international markets like Germany, we saw noticeable market share gains, both of which included strong performance in our leading Women's Shave business. This broad-based organic growth across categories and geographies, along with stabilized market share results in key markets is further evidence of our healthy top line and offers clear proof points of our ability to deliver sustainable growth for this business.

得益於該類別需求的持續增加以及我們庫存狀況的改善，女性護理產品的價格和銷量均增長了 12%。這些結果導致我們整個業務的市場份額進一步提高。在北美，我們在我們的投資組合中廣泛持有總體份額。在德國等主要國際市場，我們看到了顯著的市場份額增長，其中包括我們領先的女性剃須業務的強勁表現。這種跨類別和地域的廣泛有機增長，以及主要市場穩定的市場份額結果，進一步證明了我們健康的收入，並明確證明我們有能力為該業務實現可持續增長。

Dan will take you through the details, but I'd like to call out the progress we made on gross margin in the quarter, essentially fully offsetting inflationary headwinds due to the realization of price actions and the ongoing execution of our productivity initiatives. So while the operating environment remains highly challenging, we are on track to deliver margin accretion in the second half and for the full fiscal year.

Dan 將向您詳細介紹，但我想指出我們本季度在毛利率方面取得的進展，基本上完全抵消了由於價格行動的實現和我們生產力計劃的持續執行而導致的通貨膨脹逆風。因此，儘管經營環境仍然充滿挑戰，但我們有望在下半年和整個財政年度實現利潤增長。

Importantly, we also remained in investment mode with A&P spend of over 11% of net sales, excluding our custom brands private label Shave business. Our focus was on early season sun execution internationally, strengthening our digital activation and e-commerce presence and supporting innovation and new products, including our Barber's Style launch across Europe and grooming product expansion in the United States for the Edge and Cremo brands. The growing top line, strengthening gross margin profile and a demonstrated focus on cost reduction, all enable a sustainability to invest in our brands, and we are seeing the return from our investments.

重要的是，我們還保持投資模式，A&P 支出占淨銷售額的 11% 以上，不包括我們的定製品牌自有品牌 Shave 業務。我們的重點是在國際上實施早季防曬，加強我們的數字激活和電子商務業務，並支持創新和新產品，包括我們在歐洲推出的 Barber's Style 以及在美國擴展 Edge 和 Cremo 品牌的美容產品。不斷增長的收入、不斷增強的毛利率狀況以及對降低成本的明顯關注，所有這些都使我們能夠可持續地投資於我們的品牌，我們正在看到我們的投資回報。

Lastly, we continue to simplify our business and deliver meaningful gross cost reduction across, both cost of goods sold and G&A. And we expect this will continue as we move through the year. We are operating in a challenging, volatile and uncertain marketplace. Inflationary and foreign exchange pressures remain significant headwinds to our business. The labor market remains tight with the potential to, again, complicate manufacturing and distribution efforts. And perhaps most importantly, there are some initial signs of weakening consumer sentiment in the face of likely economic challenges ahead. We, therefore, need to be cautious as we consider the balance of the year, act with urgency and continue to focus on controlling the controllables.

最後，我們繼續簡化我們的業務，並在銷售成本和 G&A 方面實現有意義的總成本降低。我們預計這一年將持續下去。我們在充滿挑戰、動盪和不確定的市場中運營。通貨膨脹和外匯壓力仍然是我們業務的重大阻力。勞動力市場仍然緊張，有可能再次使製造和分銷工作複雜化。也許最重要的是，面對未來可能的經濟挑戰，有一些初步跡象表明消費者信心減弱。因此，我們需要在考慮今年的餘額時保持謹慎，緊急行動並繼續專注於控制可控因素。

Our brands are healthier and better represented on shelf than at any point since we began as an independent company. And the early read on distribution outcomes for 2023 is very encouraging. Supply chain service levels improved in the quarter, and we've taken the necessary steps to ensure good execution, particularly related to the upcoming US sun season. And consumer-centric innovation and new product development is playing an increasingly important role in our portfolio, with the acquired brand-building capabilities of the Cremo and Billie teams now benefiting our broader portfolio.

自從我們作為一家獨立公司成立以來，我們的品牌比以往任何時候都更健康，在貨架上的表現也更好。對 2023 年分配結果的早期解讀非常令人鼓舞。本季度供應鏈服務水平有所提高，我們已採取必要措施確保良好執行，尤其是與即將到來的美國陽光季節相關的措施。以消費者為中心的創新和新產品開發在我們的產品組合中發揮著越來越重要的作用，Cremo 和 Billie 團隊獲得的品牌建設能力現在使我們更廣泛的產品組合受益。

With the progress we made this quarter, we are confident that we are taking the right actions to deliver sustained value creation over the long term, and we are well positioned to deliver our previous outlook for the fiscal year.

隨著我們在本季度取得的進展，我們相信我們正在採取正確的行動來實現長期持續的價值創造，並且我們有能力實現我們之前對本財年的展望。

And now, I'd like to ask Dan to take you through our first quarter results and to also provide additional details on our outlook for fiscal 2023. Dan?

現在，我想請 Dan 向您介紹我們第一季度的業績，並提供有關我們 2023 財年展望的更多詳細信息。Dan？

Thanks, Rod. Good morning, everyone.

謝謝，羅德。大家，早安。

As Rod mentioned, operational and commercial execution in the quarter was strong. We delivered organic growth as expected, and the quarter provided a solid foundation for fiscal 2023, giving us confidence in our ability to deliver full-year results in line with our previous outlook.

正如 Rod 所提到的，本季度的運營和商業執行力很強。我們實現了預期的有機增長，該季度為 2023 財年奠定了堅實的基礎，使我們相信我們有能力實現與之前預期一致的全年業績。

For the quarter, organic net sales grew 3%, with broad-based growth across categories and geographies. International market growth was noteworthy, driven by both price and volume gains and reflective of strong early season Sun Care performance. In this challenging operating environment, we remain focused on execution. Commercially, we've now mostly finalized our price and shelf set discussions with our retail partners, with strong outcomes on both fronts. In the quarter, price gains contributed approximately 4.5% to organic growth and price elasticities were in line with our expectations.

本季度，有機淨銷售額增長 3%，跨類別和地區的基礎廣泛增長。受價格和銷量雙雙增長的推動，並反映了早季防曬產品的強勁表現，國際市場增長引人注目。在這個充滿挑戰的經營環境中，我們仍然專注於執行。在商業上，我們現在已經基本完成了與零售合作夥伴的價格和貨架設置討論，在這兩個方面都取得了很好的成果。本季度，價格上漲對有機增長貢獻了約 4.5%，價格彈性符合我們的預期。

As Rod alluded to earlier, we're also very pleased with the initial shelf set outcomes across not only the U.S., but key international markets as well, with solid results both in the level and quality of distribution for our brands. Operationally, supply chain performance strengthened as well, delivering both improved service levels and strong productivity savings. In fact, the combination of both our pricing and productivity efforts underpin the structural strengthening of our gross margin profile, delivering about 500 basis points of tailwinds in the quarter and essentially fully mitigating year-over-year inflationary pressures.

正如 Rod 之前提到的那樣，我們也對不僅在美國而且在主要國際市場的初步貨架設置結果感到非常滿意，我們品牌的分銷水平和質量都取得了穩固的成果。在運營方面，供應鏈績效也得到加強，既提高了服務水平，又大大節省了生產力。事實上，我們的定價和生產力努力的結合支撐了我們毛利率狀況的結構性加強，在本季度提供了約 500 個基點的順風，並基本上完全緩解了同比通脹壓力。

And finally, we saw lower G&A costs in the quarter, in part due to our accelerated efforts to simplify ways of working, reduce complexity and drive productivity across the business. As we'll discuss shortly, we anticipate that these heightened savings will help strengthen our operating profit margin and help serve as an important offset to higher-than-expected below-the-line costs, enabling us to maintain our constant currency outlook for the year. Despite the significant inflation and currency headwinds, we delivered adjusted EPS of $0.31 and adjusted EBITDA of $64 million in the quarter, both above expectations.

最後，我們在本季度看到了較低的 G&A 成本，部分原因是我們加快了簡化工作方式、降低複雜性和提高整個企業生產力的努力。正如我們稍後將討論的那樣，我們預計這些節省的增加將有助於提高我們的營業利潤率，並有助於抵消高於預期的線下成本，使我們能夠維持我們對年。儘管存在嚴重的通貨膨脹和貨幣逆風，我們在本季度實現了 0.31 美元的調整後每股收益和 6400 萬美元的調整後 EBITDA，均高於預期。

Now let me give you some insight into what we saw across our business in the quarter. In North America, the consumer remained resilient, and we continue to see underlying category growth in Wet Shave, Grooming, Sun Care and Fem Care. Pricing drove organic growth and elasticities were healthy and below historical norms. Promotional levels remained fairly consistent to last quarter and still below a year ago. So overall, we were pleased with the revenue dynamics across categories, and we will be vigilant in evaluating this environment as we progress through the year.

現在讓我向您介紹一下本季度我們在整個業務中看到的情況。在北美，消費者保持彈性，我們繼續看到濕剃、美容、防曬和女性護理的潛在類別增長。定價推動有機增長，彈性健康且低於歷史標準。促銷水平與上一季度保持相當一致，但仍低於一年前。因此，總的來說，我們對各個類別的收入動態感到滿意，我們將在今年取得進展時保持警惕，評估這種環境。

In international markets, we are seeing improving category health in many markets, especially in key Sun Care markets within Oceana and Latin America as travel and leisure continue to return to pre-pandemic levels. However, in Japan and China, Wet Shave consumption trends remain negative, reflecting COVID-related closures. Finally, while the dollar softened in the quarter, providing an immediate boost to our full-year net sales outlook due to translational currency gains, the in-year benefit from easing currency headwinds related to transactional FX is less pronounced as these benefits are trapped in inventory until released.

在國際市場上，隨著旅遊和休閒活動繼續恢復到大流行前的水平，我們看到許多市場的品類健康狀況正在改善，尤其是在大洋洲和拉丁美洲的主要防曬市場。然而，在日本和中國，濕剃消費趨勢仍然消極，反映出與 COVID 相關的關閉。最後，雖然美元在本季度走軟，由於貨幣換算收益立即提振了我們的全年淨銷售額前景，但與交易外匯相關的貨幣逆風緩解帶來的年內收益並不明顯，因為這些收益被困在庫存直至發布。

Now let me turn to the detailed results for the quarter. As mentioned, organic net sales increased 3%, as 4.5% price gains were offset by volume declines of approximately 1.5%. International organic net sales increased nearly 6%, with price and volume gains. While in North America, organic net sales increased 1.2%, as almost 5% growth from increased pricing was partially offset by lower volumes.

現在讓我談談本季度的詳細結果。如前所述，有機淨銷售額增長了 3%，因為 4.5% 的價格上漲被約 1.5% 的銷量下降所抵消。國際有機淨銷售額增長近 6%，價格和銷量均有所增長。而在北美，有機淨銷售額增長了 1.2%，因為價格上漲帶來的近 5% 的增長被銷量下降部分抵消了。

Wet Shave organic net sales decreased 1.9%, inclusive of an estimated 210 basis point headwind from cycling last year's men's Hydro relaunch in Japan. Wet Shave organic sales in North America declined mid-single digits, driven by volume declines, in part, a reflection of heightened inventory management across certain US retailers. Wet Shave organic net sales in international markets were essentially flat despite cycling the aforementioned Hydro relaunch in Japan.

濕剃有機淨銷售額下降 1.9%，其中包括去年在日本重新推出的男子 Hydro 騎行帶來的估計 210 個基點的逆風。受銷量下降的推動，北美的 Wet Shave 有機銷售額下降了中個位數，部分原因是某些美國零售商加強了庫存管理。儘管上述 Hydro 在日本重新推出，但國際市場的 Wet Shave 有機淨銷售額基本持平。

We saw a notable performance in Germany, with healthy organic growth and market share gains, largely as a result of our strong women's portfolio in drug. And our branded shave and dispo businesses across LatAm performed well. In US, razors and blades consumption increased 2% in the quarter, while our market share in aggregate declined 60 basis points, which was in line with 52-week trends.

我們在德國看到了顯著的表現，實現了健康的有機增長和市場份額的增長，這主要是由於我們強大的女性藥物組合。我們在拉美的品牌剃須和處置業務表現良好。在美國，剃須刀和刀片的消費量在本季度增長了 2%，而我們的市場份額總體下降了 60 個基點，這與 52 週的趨勢一致。

The Billie brand continued to deliver strong results at Walmart, and served as the catalyst for our broad market share gains across women's Wet Shave. As Rod mentioned, in the quarter, we began to execute the national retail launch for the brand, with product now in store in certain drug and grocery retailers, and the rollout is scaling in the current quarter. Sun and Skin Care organic net sales increased 10%, driven by strong global Sun Care results. International Sun Care sales increased over 68%, as the return to travel and leisure activity drove demand recovery, led by key markets in Latin America and Oceana.

Billie 品牌繼續在沃爾瑪取得強勁業績，並成為我們在女性濕剃產品市場份額擴大的催化劑。正如 Rod 所提到的，在本季度，我們開始為該品牌執行全國零售發布，產品現已在某些藥品和雜貨零售商的商店中銷售，並且在本季度推出的規模正在擴大。受強勁的全球防曬產品業績推動，防曬和護膚有機淨銷售額增長 10%。國際防曬產品銷售額增長超過 68%，這是因為旅遊和休閒活動的回歸推動了需求復蘇，其中主要市場是拉丁美洲和大洋洲。

December marked our strongest Sun Care month in Australia since pre-COVID, and the sun category continued to grow at over 30% in Mexico. In the US, the Sun Care category grew nearly 11% for the quarter. As competitive products returned to shelf following last year's recalls, our Sun Care brands predictably lost share in the quarter. Men's Grooming organic net sales increased just over 4%, led by strong Cremo growth.

12 月是澳大利亞自 COVID 爆發以來最強勁的防曬月份，墨西哥的防曬類別繼續以超過 30% 的速度增長。在美國，防曬品類本季度增長了近 11%。由於競爭產品在去年召回後重新上架，我們的 Sun Care 品牌預計在本季度失去份額。在 Cremo 強勁增長的帶動下，男士美容有機淨銷售額增長略高於 4%。

Fem Care organic net sales increased 12%, driven by higher pricing and improved product availability on shelf. Growth was delivered across Playtex Sport, Carefree and Stayfree brands. Our portfolio saw over 8% consumption growth, and our share was effectively flat in both the quarter and latest 52-week period.

Fem Care 有機淨銷售額增長了 12%，這得益於更高的定價和貨架上產品可用性的提高。 Playtex Sport、Carefree 和 Stayfree 品牌實現了增長。我們的投資組合消費增長超過 8%，我們的份額在本季度和最近 52 週期間實際上持平。

Now moving down the P&L. Gross margin on an adjusted basis decreased 150 basis points or 20 basis points at constant currency, as strong price gains and productivity savings essentially offset a 500 basis point headwind from higher commodity, labor and transportation-related costs. A&P expense was 9.8% of net sales. Excluding the favorable impact of currency, A&P would have increased almost $2 million and about 20 basis points in rate of sales compared to the prior year.

現在向下移動損益表。調整後的毛利率下降了 150 個基點或固定匯率下的 20 個基點，因為強勁的價格上漲和生產力節約基本上抵消了商品、勞動力和運輸相關成本上漲帶來的 500 個基點的逆風。 A&P 費用占淨銷售額的 9.8%。排除貨幣的有利影響，與上一年相比，A&P 的銷售額將增加近 200 萬美元和約 20 個基點。

Adjusted SG&A increased 90 basis points versus last year as the benefits of operational efficiency programs, good cost discipline, favorable currency and operational leverage were more than offset by higher compensation expense and the impact of the Billie acquisition, including amortization costs.

調整後的 SG&A 比去年增加了 90 個基點，因為運營效率計劃、良好的成本控制、有利的貨幣和運營槓桿的好處被更高的補償費用和 Billie 收購的影響（包括攤銷成本）所抵消。

Adjusted operating income was $36.7 million compared to $46.7 million last year, a decline of 21% or 2% at constant currency. GAAP diluted net earnings per share were $0.23 compared to $0.20 in the first quarter of fiscal '22, and adjusted earnings per share were $0.31 compared to $0.42 in the prior year period, including an estimated $0.05 negative impact from currency and $0.02 favorable impact from share repurchases.

調整後的營業收入為 3670 萬美元，而去年為 4670 萬美元，按固定匯率計算下降 21% 或 2%。 GAAP 稀釋後每股淨收益為 0.23 美元，而 22 財年第一季度為 0.20 美元，調整後每股收益為 0.31 美元，而上年同期為 0.42 美元，其中包括估計 0.05 美元的貨幣負面影響和 0.02 美元的股票有利影響回購。

Adjusted EBITDA was $63.9 million compared to $69.7 million in the prior year, inclusive of an estimated $3.6 million unfavorable impact from currency. Net cash used in operating activities for the quarter was $86 million compared to $79 million in the same period last year. We ended the quarter with $184 million in cash on hand, access to the $164 million undrawn portion of our credit facility and a net debt leverage ratio of about 4x. In the quarter, our share repurchases totaled over $15 million. In addition, we continued our quarterly dividend payout and declared another cash dividend of $0.15 per share for the first quarter. In total, we returned over $23 million to shareholders during the quarter.

調整後的 EBITDA 為 6,390 萬美元，而去年同期為 6,970 萬美元，其中包括估計 360 萬美元的貨幣不利影響。本季度用於經營活動的淨現金為 8600 萬美元，而去年同期為 7900 萬美元。本季度結束時，我們手頭有 1.84 億美元現金，可以使用我們信貸額度的 1.64 億美元未提取部分，淨債務槓桿率約為 4 倍。本季度，我們的股票回購總額超過 1500 萬美元。此外，我們繼續派發季度股息，並宣布第一季度再次派發每股 0.15 美元的現金股息。本季度，我們總共向股東返還了超過 2300 萬美元。

Now turning to our outlook for fiscal 2023. As Rod mentioned earlier, the operational fundamentals of our business are strong, and we are confident that the strategic choices and actions taken over the past several years have put us in a better position to drive sustained growth. Additionally, we are executing well on the levers that we can control, driving increased productivity and efficiency across the business, thoughtfully executing price increases across the globe, incrementally investing in our brands, and importantly, improving supply chain service levels and on-shelf product availability for our customers.

現在轉向我們對 2023 財年的展望。正如羅德之前提到的，我們業務的運營基礎強勁，我們相信過去幾年的戰略選擇和行動使我們能夠更好地推動持續增長.此外，我們在我們可以控制的槓桿上執行得很好，推動提高整個企業的生產力和效率，在全球範圍內深思熟慮地執行價格上漲，增加對我們品牌的投資，重要的是，提高供應鏈服務水平和貨架產品為我們的客戶提供可用性。

Before speaking to the specific elements of our outlook, I'd like to offer 2 broad comments. First, we are operating in a challenging volatile environment. inflationary and currency pressures remain elevated. The labor market continues to be highly constrained. COVID reopening in APAC remains choppy, and there are meaningful unknowns with respect to the future state and overall sentiment of the consumer.

在談到我們前景的具體要素之前，我想發表 2 條廣泛的評論。首先，我們在充滿挑戰的多變環境中運營。通貨膨脹和貨幣壓力仍然很高。勞動力市場繼續受到高度限制。 COVID 在亞太地區的重新開放仍然起伏不定，關於消費者的未來狀態和整體情緒，存在有意義的未知數。

Second, in the face of this environment, our constant currency outlook for the year is unchanged despite higher-than-expected below-the-line costs, most notably interest and pension costs. Good cost control across all aspects of overheads will offset these expected increases, and serve as a catalyst for slightly better operating margins than previously contemplated.

其次，面對這種環境，儘管線下成本高於預期，尤其是利息和養老金成本，但我們今年不變的貨幣前景不變。管理費用各個方面的良好成本控制將抵消這些預期的增長，並成為比先前預期略高的營業利潤率的催化劑。

For the fiscal year, net sales are now expected to increase between 2% and 4%, with the change versus our previous outlook due entirely to lower foreign currency translation headwinds than originally contemplated. We still anticipate organic net sales growth to be 3% to 5%. Our outlook for gross margin is also unchanged, as we continue to anticipate about 30 basis points of year-over-year rate accretion, with declines in the first half of the year driven by continued inflation and negative currency, partly mitigated by price realization and productivity savings. There is also no change to our view on inflationary headwinds and pricing and productivity offset for the year. And we expect the Q2 gross margin profile to be similar to Q1.

對於本財年，淨銷售額現在預計將增長 2% 至 4%，與我們之前的預期相比發生變化完全是因為外幣換算的不利因素比最初預期的要少。我們仍然預計有機淨銷售額增長 3% 至 5%。我們對毛利率的展望也保持不變，因為我們繼續預計同比增長率約為 30 個基點，上半年的下降受到持續通貨膨脹和負貨幣的推動，部分原因是價格實現和生產力節約。我們對今年通脹逆風、定價和生產力抵消的看法也沒有改變。我們預計第二季度的毛利率狀況將與第一季度相似。

Adjusted operating profit margin is now expected to increase slightly on a full-year basis, mostly a result of increased realized cost savings across the business. The impact of currency on operating profit is now expected to be an approximate $26 million headwind, an $8 million improvement over our prior outlook. Below OP, interest expense is now anticipated to be approximately $79 million, an increase of $5 million over our previous outlook. And other income is now expected to show a combined income of approximately $1 million as compared to $11 million income in our prior outlook, reflecting higher pension costs and lower hedge gains.

調整後的營業利潤率預計全年將略有增長，這主要是由於整個企業實現的成本節約有所增加。貨幣對營業利潤的影響現在預計約為 2600 萬美元，比我們之前的預期提高了 800 萬美元。低於 OP，現在預計利息支出約為 7900 萬美元，比我們之前的預期增加 500 萬美元。現在預計其他收入的總收入約為 100 萬美元，而我們之前的展望為 1100 萬美元，反映出更高的養老金成本和更低的對沖收益。

Adjusted EBITDA is still expected to be in the range of $320 million to $335 million. On a constant currency basis, adjusted EBITDA growth at the mid part of the range would still be approximately 8%. Adjusted EPS is still anticipated to be in the range of $2.30 to $2.50, inclusive of approximately $0.45 per share of currency headwinds. Constant currency adjusted EPS growth at the midpoint of the range would still be approximately 12%.

調整後的 EBITDA 預計仍將在 3.2 億美元至 3.35 億美元之間。在固定匯率的基礎上，調整後的 EBITDA 增長率在範圍的中間部分仍將約為 8%。預計調整後的每股收益仍將在 2.30 美元至 2.50 美元之間，包括每股約 0.45 美元的貨幣逆風。固定匯率調整後的每股收益增長在範圍的中點仍將約為 12%。

In terms of phasing, we now expect the organic sales rate in half one to be slightly higher than half two, as we expect a shift in Sun Care shipments into 2Q. And we now expect to generate just over 1/4 of our full-year EPS in half one. For more information related to our fiscal 2023 outlook, I would refer you to the press release that we issued earlier this morning.

就階段性而言，我們現在預計第一季度的有機銷售率將略高於第二季度，因為我們預計 Sun Care 出貨量將轉移到第二季度。我們現在預計在上半年產生超過 1/4 的全年每股收益。有關我們 2023 財年展望的更多信息，請參閱我們今天上午早些時候發布的新聞稿。

And now, I'd like to return the call to the operator for the Q&A session.

現在，我想將電話轉回問答環節的接線員。

(Operator Instructions) Our first question today comes from Chris Carey from Wells Fargo Securities.

（操作員說明）我們今天的第一個問題來自 Wells Fargo Securities 的 Chris Carey。

So a lot of moving parts between bottom line getting worse and some areas perhaps a bit better top line margins. But do you have a sense perhaps of where you think you're going to be landing within this earnings outlook range for the year?

因此，底線之間的許多移動部分變得更糟，而某些地區的頂線利潤率可能會好一些。但是，您是否知道您認為您將在今年的盈利前景範圍內達到什麼水平？

Yes. Chris, it's Dan. Look, I think you're right, there are some moving parts. OP will get better versus our original outlook, and that will help offset some of the below-the-line challenges that we see around less hedge benefit, higher interest expense, higher pension. So if you pull all of that together, not all of those below-the-line headwinds affect EBITDA, right?

是的。克里斯，是丹。看，我認為你是對的，有一些活動部件。與我們最初的展望相比，OP 將變得更好，這將有助於抵消我們看到的圍繞對沖收益減少、利息支出增加、養老金增加的一些線下挑戰。所以，如果你把所有這些放在一起，並不是所有的線下逆風都會影響 EBITDA，對吧？

So, I think, mathematically, you can certainly say that the OP flow-through is helpful and mathematically points you towards the higher end of the EBITDA range. I think that's just math. I think, look, we're 1 quarter in. Very good quarter, lined up the way we thought it would and so we'll stick to the range right now. But to acknowledge the point, I think mathematically, you would point to the high end. And then on EPS, I think you don't have some of that mathematical challenge. I think you can stick at the midpoint.

所以，我認為，從數學上講，你當然可以說 OP 流通是有幫助的，並且在數學上將你指向 EBITDA 範圍的高端。我認為那隻是數學。我想，看，我們進入了 1 個季度。非常好的季度，按照我們預期的方式排列，所以我們現在會堅持這個範圍。但要承認這一點，我認為從數學上講，你會指向高端。然後在 EPS 上，我認為你沒有一些數學挑戰。我認為你可以堅持中點。

Okay. All right. Sounds good. And just from a phasing standpoint, you talked about some shifts of sun into the front half of the year. Obviously, international seems to be delivering on recovery. So how much of that shift is occurring in your international versus your US business? And then can you perhaps just comment on your market share in the US? We're seeing a lot of noise just with some players recovering, and we're hearing headlines around some recalls. Just maybe contextualize how you feel about US share in addition to talking about where the shift seems to be occurring.

好的。好的。聽起來不錯。只是從階段性的角度來看，你談到了今年上半年太陽的一些變化。顯然，國際似乎正在實現復甦。那麼這種轉變有多少發生在您的國際業務和美國業務中？然後你能不能評論一下你在美國的市場份額？我們看到很多關於一些球員正在康復的消息，我們也聽到了一些關於召回的頭條新聞。除了談論似乎發生轉變的地方之外，也許還可以結合您對美國份額的看法。

Sure. I'll take the first part. I'll hand it to Rod on the share point. In terms of the shift, that's specifically a US comment. We're just seeing order flow on initial Sun Care phasing more into 2Q than we had originally thought. And sort of you're challenged with that every year in terms of when that phasing will happen. What I would say, though, in your point, I think underpins this, we saw tremendously strong sun performance across our international business. We've seen Mexico now growing 30%, 35% as a category. We've seen Oceana now open up, and we had our biggest month since pre-COVID in December. So, we're quite bullish on sun outside of the US. It's about 25% of our sun business, but that's not what drove our anticipated shift in Q2. It's purely a US comment.

當然。我先講第一部分。我會在共享點上將其交給 Rod。就轉變而言，這是美國的特別評論。我們只是看到最初 Sun Care 的訂單流進入第二季度比我們原先想像的要多。就分階段何時發生而言，你每年都會遇到這樣的挑戰。不過，我想說的是，在你的觀點中，我認為支持這一點，我們在國際業務中看到了非常強勁的太陽能表現。我們看到墨西哥現在增長了 30%，作為一個類別增長了 35%。我們已經看到 Oceana 現在開放了，我們度過了自 12 月 COVID 之前以來最大的一個月。因此，我們非常看好美國以外的太陽。它約占我們太陽能業務的 25%，但這並不是推動我們在第二季度實現預期轉變的原因。這純粹是美國的評論。

Rod?

桿？

Yes. And, Chris, on the second piece, on the US sun question, we're feeling really good about the upcoming season and what we have line of sight to. As you know, we built share in the last couple of years. We've gone to the leadership position with Banana Boat last year as the #1 brand in the US. And off of that, retailers have rewarded us with better distribution outcomes, more distribution, higher quality across the board. And so we feel really good about the season that's set up and to come. And in terms of recall and safety, what you're calling out, we took another lot, one final lot of Hair & Scalp as a recall. It was actually part of an action last summer in benzene. And the good news is there's nothing to recall. There's no product there.

是的。而且，克里斯，在第二篇文章中，關於美國太陽問題，我們對即將到來的賽季以及我們的視線感到非常滿意。如您所知，我們在過去幾年中建立了份額。去年我們憑藉 Banana Boat 成為美國排名第一的品牌，位居領導地位。除此之外，零售商還以更好的分銷結果、更多的分銷和更高的質量來回報我們。因此，我們對即將到來的賽季感到非常滿意。在召回和安全方面，你所說的，我們採取了另一批，最後一批 Hair & Scalp 作為召回。這實際上是去年夏天對苯採取的行動的一部分。好消息是沒有什麼可回憶的。那裡沒有產品。

Our products are safe. We're always going to lean in on safety and make sure that people can have confidence when they pick Banana Boat and Hawaiian Tropic. And on the early season share read that you're seeing, it's more around everyday sun. If you think about the time of the year we're in, those everyday Sun Care brands are the ones that win and grow share in this period of the year. You'll start to see that moderate as we get into the balance of the year. And the other thing to just keep in mind because it is a little complicated. As competitors come back on shelf to a certain extent from supply chain issues of their own that we didn't have in past periods, you'll just naturally see [math] show that share move a little differently than it has in the past couple of years. But I think we're confident in our business and that we have a good year in front of us.

我們的產品是安全的。我們將始終以安全為重，確保人們在選擇 Banana Boat 和 Hawaiian Tropic 時有信心。在早季分享閱讀你看到的，它更多地圍繞著每天的陽光。如果你想想我們所處的一年中的時間，那些日常防曬品牌就是在一年中的這個時期贏得併增加份額的品牌。當我們進入今年的餘額時，你會開始看到溫和的。另一件事要記住，因為它有點複雜。由於競爭對手在一定程度上因供應鏈問題而重新上架，而我們過去沒有遇到過，你自然會看到 [math] 表明份額變動與過去幾個時期略有不同年。但我認為我們對我們的業務充滿信心，我們將迎來美好的一年。

Our next question comes from Susan Anderson from Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Susan Anderson。

I want to ask about Billie. I'm just curious if there's any early color on the sell-through and the new retail partners. And then I'm curious, how much of that already occurred in first quarter and expectations of how much will benefit second quarter? And then last, if you guys have talked about the margin profile of Billie versus the rest of Wet Shave before in the past, or if you could give any color on that?

我想問問比利。我只是好奇銷售和新的零售合作夥伴是否有任何早期的顏色。然後我很好奇，第一季度已經發生了多少，第二季度將有多少受益？最後，如果你們過去曾討論過 Billie 與其他 Wet Shave 的利潤率概況，或者您是否可以給出任何顏色？

Susan, welcome to coverage. Great to have you on board. I'll just -- yes, I'll just say a couple of things about Billie, bigger picture and then let Dan give a little more detail. We're very, very happy with where, Billie, the brand is, the team that's built the brand, the way it's been built is resonating with consumers. And we're off to a very good start with Walmart year one. As you know, when you grow share and you grow the category, that becomes a very portable story.

蘇珊，歡迎報導。很高興你加入。我只是 - 是的，我只是說一些關於 Billie 的事情，大局觀，然後讓 Dan 提供更多細節。我們非常非常高興，Billie，品牌在哪裡，建立品牌的團隊，建立品牌的方式與消費者產生共鳴。我們在沃爾瑪的第一年有了一個很好的開端。如您所知，當您增加份額並擴大類別時，這將成為一個非常可移植的故事。

And so the expansion is underway now. I think we did better than I think we expected in terms of retailers wanting the brand and wanting the brand quickly. So that's happening as we speak. The DTC portion of Billie performed very well in the first quarter, actually outperformed what we were expecting. And so we continue to believe we've got a very healthy omnichannel brand in front of us that has lots of legs to go many, many more places.

因此，擴張正在進行中。我認為我們在零售商想要品牌和快速想要品牌方面做得比我想像的要好。所以，就在我們說話的時候，這正在發生。 Billie 的 DTC 部分在第一季度表現非常好，實際上超出了我們的預期。因此，我們仍然相信我們面前有一個非常健康的全渠道品牌，它有很多腿可以去很多很多地方。

And Dan, I'll let you talk quarter 1, quarter 2.

丹，我會讓你談談第 1 季度、第 2 季度。

Yes. So in terms of the phasing of the national retail launch, there was a bit in Q1, but it was quite limited to drug and grocery and even in grocery small amounts. I think the lion's share of the launch and therefore, the pipeline is Q2 and beyond. And you'll see that now as we roll out in broader grocery, broader drug and, of course, mass. So that's to come. And then to the question, Susan, on margin profile. I think I'm comfortable saying largely at Edgewell family levels, but there's a lot beneath that comment, right, because it will depend on mix, DTC versus retail. And then within the Billie portfolio will largely depend on which category, which product is driving the growth. But in principle, pretty comparable to Edgewell family margins.

是的。因此，就全國零售啟動的階段性而言，第一季度有一些，但僅限於藥品和雜貨，甚至是少量的雜貨。我認為發布的最大份額，因此，管道是第二季度及以後。現在，當我們在更廣泛的雜貨店、更廣泛的藥品，當然還有大眾市場推出時，你會看到這一點。所以這就是未來。然後是關於保證金概況的問題，蘇珊。我想我主要是在 Edgewell 家族層面上說這句話很舒服，但這個評論下面有很多東西，對吧，因為這將取決於組合，DTC 與零售。然後在 Billie 的產品組合中，將在很大程度上取決於哪個類別、哪個產品正在推動增長。但原則上，與 Edgewell 家族的利潤率相當。

Great. Yes, the merchandising, let's get in the stores. I was wondering, too, just on the men's business. I know you rolled it out further, Edge and Cremo in the US. Curious how that's going and if there's any plans for further expansion in the US because it still looks pretty small out there? And then I'm just curious on the Men's Grooming, if it performed well, both in the US and then North America. I think you said Edge and Cremo did perform well.

偉大的。是的，商品銷售，讓我們進入商店。我也在想，只是關於男人的事。我知道你們在美國進一步推出了 Edge 和 Cremo。很好奇這是怎麼回事，是否有任何在美國進一步擴張的計劃，因為它看起來仍然很小？然後我只是好奇男士美容，如果它在美國和北美都表現良好。我想你說 Edge 和 Cremo 確實表現不錯。

Yes. On the Men's Shave piece of it, we were flat share in the quarter just finished, and that's primarily shipments and so we held share there in what was a growing category. I think we actually felt good about that outcome as there was some destocking that happened in the quarter as well that we think is more one-time in nature at a couple of retailers. The Cremo rollout, as you suggested, is just getting started. The product is fantastic. It's a natural extension category-wise to the Grooming line, and we think sets up to give us a better shave portfolio in men's for the future. And so it's early days there, but initial read is good. And then Grooming more generally continues to be just a fantastic category. Double-digit growth rates continue in the category. We've got big ambition for our own business in that category this year. And I would expect that will be one of our growth leaders as we get throughout the year.

是的。在男士剃須方面，我們在剛剛結束的那個季度持平，這主要是出貨量，因此我們在不斷增長的類別中佔據了份額。我認為我們實際上對這一結果感到滿意，因為本季度也發生了一些去庫存，我們認為這在幾個零售商中更像是一次性的。正如您所建議的，Cremo 的推出才剛剛開始。該產品很棒。這是 Grooming 系列產品類別的自然延伸，我們認為這將為我們在未來提供更好的男士剃須產品組合。所以現在還很早，但初步閱讀是好的。然後更普遍的修飾仍然只是一個很棒的類別。該類別繼續保持兩位數的增長率。今年我們在該類別中對自己的業務抱有很大的抱負。我希望這將成為我們全年獲得的增長領導者之一。

Our next question comes from Kevin Grundy from Jefferies.

我們的下一個問題來自 Jefferies 的 Kevin Grundy。

Great. Two questions, if I could. Just first kind of pulling on the organic growth guidance for the year in the 3% to 5%. I'm not asking you to be redundant, but it looks like Grooming perhaps a bit light, Sun Care off to a really good start, Fem Care was better by geography, international stronger than the US so far. I don't recall it broader. Dan, you mentioned you saw some signs of weaker consumer sentiment, but you sound quite good on the spring shelf space resets. Just kind of reading your tone, it sounds like you're probably a little bit more optimistic within that range versus when you started the year. But not to put words in your mouth, but as you kind of pull this all together, I'm just kind of curious how the shape of your organic sales growth guidance may or may not have changed since the initial guide? And maybe you could just comment on that and then I have a quick follow-up for Dan on FX.

偉大的。兩個問題，如果可以的話。只是第一種拉動了今年 3% 到 5% 的有機增長指導。我不是要你多餘，但看起來 Grooming 可能有點輕鬆，Sun Care 開了一個非常好的開始，Fem Care 在地理上更好，到目前為止國際上比美國強。我不記得它更廣泛。丹，你提到你看到了一些消費者信心減弱的跡象，但你對春季貨架空間重置的看法聽起來相當不錯。只是讀一下你的語氣，聽起來你在這個範圍內可能比年初時更樂觀一些。但不是把話放在嘴裡，而是當你把這一切放在一起時，我只是有點好奇你的有機銷售增長指導的形狀自最初的指南以來可能會或可能不會發生變化？也許你可以對此發表評論，然後我會在 FX 上快速跟進 Dan。

Yes. Kevin, it's Dan. So, look, we still feel confident with the range. We did acknowledge given some of the Sun Care pull that you'll probably flight a bit more into half one than we had originally contemplated, but that's really a half one, half two phase. As we think about the categories, look, they're structurally healthy. They're growing. There's price that's come into the categories, which we've obviously participated in as well. And I think this quarter certainly reinforces our confidence and our confidence to execute as well.

是的。凱文，是丹。所以，看，我們仍然對這個範圍充滿信心。我們確實承認，考慮到一些 Sun Care 的吸引力，您可能會比我們最初預期的更多地進入半個階段，但這實際上是一個半個階段，兩個階段的一半。當我們考慮這些類別時，看，它們在結構上是健康的。他們在成長。有價格進入類別，我們顯然也參與其中。我認為本季度肯定會增強我們的信心和執行的信心。

You heard Rod talk about distribution outcomes. He specifically mentioned sun. There's other really good news as well, particularly in women shave here in the US and shave more broadly in certain international markets. So, I don't know that I would try to quantify where we are in that range. We're confident. And as the categories remain healthy, we feel really good about where we are.

你聽 Rod 談論分配結果。他特別提到了太陽。還有其他真正的好消息，特別是在美國女性剃須方面，以及在某些國際市場上更廣泛的剃須。所以，我不知道我會嘗試量化我們在該範圍內的位置。我們有信心。由於類別保持健康，我們對自己所處的位置感覺非常好。

I do think, back to the point you made, though, there is quite a bit of price here hitting the consumer. And while we have not seen elasticities at historical levels, if and when the consumer comes under added pressure, I think you can also expect that to evolve. So, we're going to be thoughtful on that and react accordingly if that's the environment we're in. But as of right now, I think 3% to 5% based on the drivers, Rod and I have been talking about, feels like the right place to be and I think Q1 reinforces that.

不過，我確實認為，回到你提出的觀點，這裡有相當多的價格打擊了消費者。雖然我們還沒有看到歷史水平的彈性，但如果消費者承受更大的壓力，我認為你也可以期待這種情況會發生變化。所以，如果我們所處的環境是這樣，我們將對此深思熟慮並做出相應的反應。但截至目前，我認為 3% 到 5% 取決於驅動程序，Rod 和我一直在談論，感覺喜歡正確的地方，我認為 Q1 強化了這一點。

Got it. So, Dan, the follow-up is just on FX and the impact on operating profit relative to the top line. So sort of said differently, your initial guidance implied a certain FX multiplier, if you will, and with your updated guidance, one would expect more favorability on that flow-through to earnings than we saw in your update. I think in your prepared remarks, you mentioned some of this was sort of tied up in inventory. Can you just help us sort of understand the profit impact that you're guiding to now from FX relative to the top line update?

知道了。所以，丹，後續行動只是關於外匯以及相對於頂線對營業利潤的影響。換句話說，你的初始指導暗示了一定的外匯乘數，如果你願意的話，並且根據你更新的指導，人們會期望比我們在你的更新中看到的更有利的收益流動。我認為在您準備好的發言中，您提到其中一些與庫存有關。您能否幫助我們了解您現在從 FX 相對於頂線更新對利潤的影響？

Yes. Absolutely. And it's a good question, Kevin. It's a complicated topic, so happy to unpack it. I think, first of all, we have to remember there are multiple drivers to this FX equation, right? You have translational gains and losses. It's felt immediately. The best example of that you can see in our new net sales outlook for the year. I think that's pretty straightforward. Equally, you have hedge gains and losses, which sit below the line that are also felt immediately, but tend to work in opposite direction as the benefit of your hedge is somewhat diluted.

是的。絕對地。這是個好問題，凱文。這是一個複雜的話題，很高興解開它。我認為，首先，我們必須記住這個 FX 方程有多個驅動因素，對嗎？你有平移收益和損失。馬上就有感覺了。您可以在我們今年新的淨銷售額展望中看到最好的例子。我認為這很簡單。同樣，您有對沖收益和損失，它們位於也能立即感受到的線下方，但由於您的對沖收益在一定程度上被稀釋，因此往往會朝著相反的方向發展。

I think those are pretty straightforward. I think where it gets a bit more complicated is in the transactional FX, which is sort of capturing all things supply chain. All the moving parts on the cost side where, in fact, a weaker dollar is hurtful. And all the moving parts on inventory in our commercial businesses like Japan, where obviously it's helpful. But the challenge here though is timing, right? And the transactional FX doesn't get released until the product gets sold.

我認為這些非常簡單。我認為它變得有點複雜的地方是交易外匯，這是一種捕獲所有供應鏈的東西。成本方面的所有變動部分，事實上，美元走軟是有害的。在日本等我們的商業企業中，庫存中的所有移動部件顯然是有幫助的。但這裡的挑戰是時機，對吧？在產品售出之前，交易外匯不會被釋放。

And so if you take an average of 4 months to 5 months of inventory, I think it's reasonable to say that we hadn't yet felt all of the pressures of the rising dollar against the yen. And therefore, it's going to take time to realize the benefits as the currency has moved to now 8%, 9% since our guide. So, there's a lot of moving parts in there, with timing being the big piece. For us, honestly, we know it's difficult to model. We understand that. It's difficult on all aspects. But that's why we continue to point to constant currency, and that's why we give that outlook as a real clear benchmark of operational performance. And here, as we've mentioned, the constant currency outlook is unchanged.

因此，如果平均需要 4 到 5 個月的庫存，我認為可以合理地說，我們還沒有感受到美元兌日元升值的所有壓力。因此，隨著貨幣已升至現在的 8%，自我們的指南以來為 9%，實現收益需要時間。所以，那裡有很多活動部件，時間是最重要的部分。對我們來說，老實說，我們知道建模很難。我們明白這一點。各方面都很難。但這就是為什麼我們繼續指向不變的貨幣，這就是為什麼我們將這種前景作為運營績效的真正明確基準。在這裡，正如我們所提到的，不變的貨幣前景沒有改變。

Very good. I appreciate the comments, guys. Good luck.

非常好。我感謝評論，伙計們。祝你好運。

Our next question comes from Bill Chappell from Truist Securities.

我們的下一個問題來自 Truist Securities 的 Bill Chappell。

Just kind of follow-up on what's changed since initial guidance in November, primarily on that kind of that 500 basis point gross margin headwind from cost, supply chain, other things? Has that seen an ease? Or do you see some ease in some of those costs and supply chain as we move through the year? I understand you're not changing guidance for that. But just if you're seeing any thawing out there or room for optimism as we move into the spring?

只是跟進自 11 月初步指導以來發生的變化，主要是關於成本、供應鍊和其他方面的 500 個基點毛利率逆風？看到輕鬆了嗎？或者，隨著我們度過這一年，您是否看到其中一些成本和供應鏈有所緩解？我知道您不會為此更改指南。但是，當我們進入春天時，您是否看到那裡有任何解凍或樂觀的餘地？

Yes. Certainly, we're seeing easing, and I'll talk about it. I think it's important to know that's what was contemplated in our outlook, right? And so even if you just look at the math, we have 700 basis points of year-over-year inflationary headwinds in Q4, 500 basis points in Q1, and we're modeling 350 basis points for the year. So yes, there is easing, but that's not incremental to our outlook. That is essentially how we've modeled it. We've been pretty close to the pin now 3, 4 quarters in a row.

是的。當然，我們正在看到寬鬆政策，我會談論它。我認為重要的是要知道這是我們展望中所考慮的，對嗎？因此，即使你只看數學，我們在第四季度有 700 個基點的同比通脹逆風，在第一季度有 500 個基點，我們正在為這一年建模 350 個基點。所以是的，有寬鬆政策，但這並沒有增加我們的前景。這基本上就是我們對其建模的方式。我們現在已經連續 3、4 個季度非常接近旗桿了。

Where we're seeing it? I think is largely showing up in a couple of ways. One, you're certainly seeing easing in natural gas and oil, which has a downstream effect on many commodity baskets, including resin. And we've seen real stability across the baskets, which is helpful. I think, two, inland distribution has eased and we've seen that. Now diesel rates are still meaningfully above a year ago, but again, sequentially improving. So, I think what all of this tells us is the cost side of our equation is playing out largely as we modeled it so far and certainly for the last 2, 3 quarters, which gives us confidence to the full-year margin profile of accretion for the full year.

我們在哪裡看到它？我認為主要以兩種方式出現。第一，你肯定會看到天然氣和石油的寬鬆，這對包括樹脂在內的許多商品籃子產生下游影響。我們已經看到籃筐之間真正的穩定，這很有幫助。我認為，第二，內陸分銷已經放鬆，我們已經看到了。現在柴油費率仍明顯高於一年前，但再次連續改善。所以，我認為所有這些告訴我們的是，我們方程式的成本方面在很大程度上正在發揮作用，正如我們到目前為止所建模的那樣，當然還有過去 2、3 個季度，這讓我們對全年利潤率增長情況充滿信心全年。

Bill, I'd just build on that. We have a quarter in line of sight to the pricing and cost productivity plans that we had envisioned when we built the plan and put our guidance out there, and we're achieving all of that. And so by nature, I think it builds confidence when things you had projected you would do, you've now actually done. It makes the outcome more certain. And so I think we feel good on the pricing revenue line as well.

比爾，我只是以此為基礎。我們有四分之一的時間可以看到我們在製定計劃並發布指導時設想的定價和成本生產率計劃，我們正在實現所有這些。因此，從本質上講，我認為當您計劃要做的事情現在已經真正完成時，它會建立信心。它使結果更加確定。因此，我認為我們對定價收入線也感覺良好。

Got it. And kind of a follow-up to that. What's your anticipation of the kind of the promotional environment as we move, probably not this quarter but into the back half as cost for everyone starts to come down and retailers are looking for more promotions? I know it's a -- in a wide different for different categories, but any thoughts there? Are you expecting promos to come back in a big way or in a more normalized way as we move to the back half?

知道了。以及對此的後續行動。隨著每個人的成本開始下降並且零售商正在尋找更多促銷活動，您對我們移動時的促銷環境有何預期，可能不是本季度而是下半年？我知道這是一個 - 對於不同的類別有很大的不同，但是有什麼想法嗎？當我們進入後半部分時，您是否期望宣傳片以一種大的方式或以一種更正常的方式回歸？

Yes. It's obviously hard to predict that, Bill, based on where the consumer goes and the overall macro factors. But what we're seeing right now is the consumer has been resilient. The categories are operating very predictably. Promotion rates, for example, are lower in many areas than they were a year ago. There's rational behavior happening here. And again, I think it's just -- there's more certainty today despite it still being a very uncertain environment than there was a year ago. And so we don't expect it to become more promotional. If it does, we're ready for that, and we'll adjust accordingly. And I would say that's contemplated within the guide.

是的。顯然很難預測，比爾，根據消費者的去向和整體宏觀因素。但我們現在看到的是消費者一直很有彈性。這些類別的運作非常可預測。例如，許多地區的晉升率都低於一年前。這裡發生了理性行為。再一次，我認為這只是——儘管與一年前相比，今天的環境仍然非常不確定，但現在的確定性更高了。所以我們不希望它變得更具促銷性。如果是這樣，我們已經做好了準備，我們會相應地進行調整。我會說指南中考慮到了這一點。

Our next question comes from Olivia Tong from Raymond James.

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

This is Devin Weinstein on for Olivia. I wanted to ask a little bit more about Billie, if we could. First, I guess, another way to ask about the current quarter. The actual performance versus your outlook implies around additional $1 million or so in organic revenue versus what you guys were expecting. So, I was curious what specifically drove that surprise versus your initial outlook?

這是奧利維亞的德文溫斯坦。如果可以的話，我想多問一點關於 Billie 的事。首先，我想，另一種詢問當前季度的方式。實際表現與您的展望相比，有機收入比你們預期的多出大約 100 萬美元左右。所以，我很好奇是什麼讓你感到意外，而不是你最初的看法？

And then I also want to ask a little bit about your reporting or the shift in your reporting, now including Billie sales in sun and skin. Just wanted to ask, I mean, that would suggest that there's either an acceleration in ex-razor business or perhaps you guys are focusing more so there. So, I just want to ask about your plans around the business ex-razors. And then longer term, if you can give us an idea of how you're thinking about the organic sales algo for Billie? And what gives you confidence around that kind of number?

然後我還想問一些關於你的報告或你報告的轉變，現在包括 Billie 在防曬和皮膚方面的銷售。只是想問，我的意思是，這表明前剃須刀業務正在加速發展，或者你們可能更關注那裡。所以，我只想問問你關於商業前剃須刀的計劃。然後從長遠來看，如果你能告訴我們你是如何考慮 Billie 的有機銷售算法的？是什麼讓您對這種數字充滿信心？

Yes. It's Dan. On the first question around organics in the quarter versus inorganic, there's been no change in our thinking in what we built when we developed the outlook. Quite honestly, it's a bit clunky. You've got 2 months of inorganic and 1 month of organic. And depending what ship when, it's being recognized as one or the other. I wouldn't view that as any fundamental shift in the business. I think the broader point you're making, though, on Billie is exactly how we see the brand and what made it so attractive when we bought it a little over a year ago, which is, it's clear right to move into adjacent categories and that which started as a -- as a shave brand, absolutely, has the right and the runway to become a women's lifestyle brand. That's what we saw when we looked at buying it, and that's absolutely what the team is committed to building a $1 billion. So, you're starting to see that migration. Now it's not as pronounced in '23 because we're more focused on the pure retail expansion, but you will absolutely see a slightly broader assortment in '23, which lends your point on skin care like products and then much bigger gains, much broader offering as we look to '24 and beyond.

是的。是丹。關於本季度有機與無機的第一個問題，我們在製定前景時對構建內容的想法沒有改變。老實說，它有點笨拙。你有 2 個月的無機和 1 個月的有機。並且取決於什麼船在什麼時候，它被認為是一個或另一個。我不認為這是業務的任何根本性轉變。不過，我認為你在 Billie 上提出的更廣泛的觀點正是我們如何看待這個品牌以及一年多前我們購買它時它如此有吸引力的原因，也就是說，進入相鄰類別顯然是正確的，並且最初是一個剃須品牌，絕對有權利和跑道成為女性生活方式品牌。這就是我們在考慮購買時所看到的，這絕對是團隊致力於打造 10 億美元的目標。所以，你開始看到這種遷移。現在它不像 23 年那樣明顯，因為我們更專注於純零售擴張，但你絕對會在 23 年看到更廣泛的分類，這有助於你在護膚類產品上的觀點，然後獲得更大、更廣泛的收益在我們展望 24 世紀及以後時提供。

I appreciate that. And if I could just follow up with one more quick one. Just in regards to your guys' increased outlook on the operating margin, I just wanted to get an idea if you continue to recognize improved productivity versus outlook today or perhaps costs alleviate versus where you're seeing them today? How do you balance further investment into your brands versus more direct flow-through on EPS?

我很感激。如果我能再跟進一個快速的。關於你們對營業利潤率的增長前景，我只是想知道，如果你們繼續認識到生產力的提高與今天的前景相比，或者成本可能會降低，與你們今天看到的相比？您如何平衡對您的品牌的進一步投資與對 EPS 的更多直接流通？

Yes. Sure. Good question. Look, we saw overhead favorability in the quarter. And as we said in the prepared remarks, most of the A&P favorability was simply phasing and probably half of the G&A was phasing. The other half is structural. And I think what it points to is we've been pretty intentional in our focus around driving costs out of the business. Obviously, majority of it done in COGS, but G&A has always been a portion of that. And in fact, in our current outlook -- in our original outlook, we had estimated about $13 million of costs takeout in G&A. We're going to beat that.

是的。當然。好問題。看，我們在本季度看到了間接支持。正如我們在準備好的評論中所說，大部分 A&P 的青睞只是分階段，可能有一半的 G&A 是分階段的。另一半是結構性的。而且我認為它指出的是我們一直非常有意地關注將成本從業務中剔除。顯然，其中大部分是在 COGS 中完成的，但 G&A 一直是其中的一部分。事實上，在我們目前的展望中——在我們最初的展望中，我們估計 G&A 的成本約為 1300 萬美元。我們要打敗它。

And again, some of that came from Q1, but it also comes from line of sight to pulling forward a lot of the work the teams have been doing here around productivity and efficiency of spend. And I would say A&P falls under this as well. We're always going to look at the quality of the spend, at the efficiency of the execution, how's non-working dollars playing for us versus working. So nothing is off the table, but it's just really good cost hygiene that this business has done for quite some time and will continue to do. And you pull all that together, it gives us more confidence towards a bigger delivery in '23, which helps offset the below line noise.

同樣，其中一些來自第一季度，但它也來自於推動團隊在這裡圍繞生產力和支出效率所做的許多工作的視線。我想說 A&P 也屬於這一類。我們總是會關注支出的質量、執行的效率、非工作資金與工作資金相比如何為我們發揮作用。所以沒有什麼是不可能的，但這只是非常好的成本衛生，這項業務已經做了很長一段時間並將繼續這樣做。你把所有這些放在一起，它讓我們更有信心在 23 年實現更大的交付，這有助於抵消線下噪音。

(Operator Instructions) And at this time, I'm showing no additional questions. I'd like to turn the floor back over to Rod Little for any closing remarks.

（操作員說明）此時，我沒有顯示其他問題。我想將發言權轉回給 Rod Little，讓他發表任何結束語。

Thank you all for your time and interest. Good quarter. And we'll see you in 3 months.

謝謝大家的時間和興趣。好季度。我們將在 3 個月後見到你。

And ladies and gentlemen, with that, we'll end today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

女士們，先生們，我們將結束今天的電話會議和演講。我們非常感謝您的加入。您現在可以斷開線路。