Prestige Consumer Healthcare Inc (PBH) 2025 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Prestige Consumer Healthcare's second-quarter 2025 Earnings Call.

女士們、先生們，美好的一天，歡迎參加 Prestige Consumer Healthcare 的 2025 年第二季財報電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員指示）請注意，今天的會議正在錄製中。

I would now like to introduce your host for today's conference call, Phil Terpolilli, Vice President, Investor Relations.

現在我想介紹一下今天電話會議的主持人，投資者關係副總裁 Phil Terpolilli。

Please go ahead.

請繼續。

Thanks, operator, and thank you to everyone who has joined today.

謝謝運營商，也謝謝今天加入的所有人。

On the call with me are Ron Lombardi, our Chairman, President and CEO; and Christine Sacco, our CFO.

與我通話的有我們的董事長、總裁兼執行長 Ron Lombardi；以及我們的財務長克里斯汀·薩科 (Christine Sacco)。

On today's call, we'll review the second quarter fiscal 2025 results, discuss our full year outlook and then take questions from analysts.

在今天的電話會議上，我們將回顧 2025 財年第二季業績，討論全年展望，然後回答分析師的問題。

A slide presentation that accompanies today's call can be accessed by visiting prestigeconsumerhealthcare.com, clicking on the Investors link and then on today's webcast and presentation.

您可以訪問 prestigeconsumerhealthcare.com，單擊“投資者”鏈接，然後單擊今天的網絡廣播和演示文稿，訪問今天電話會議附帶的幻燈片演示文稿。

Remember, some of the information contained in the presentation today includes non-GAAP financial measures.

請記住，今天的簡報中包含的一些資訊包括非公認會計準則財務指標。

Reconciliations to the nearest GAAP financial measure are included in our earnings release and slide presentation.

我們的收益發布和幻燈片簡報中包含了與最接近的 GAAP 財務指標的對帳。

On today's call, management will make forward-looking statements around risks and uncertainties, which are detailed in a complete safe harbor disclosure on page 2 of the slide presentation that accompanies the call.

在今天的電話會議上，管理層將就風險和不確定性做出前瞻性聲明，電話會議隨附的幻燈片簡報第 2 頁的完整安全港披露中詳細介紹了這些聲明。

These are important to review and contemplate.

這些對於回顧和思考很重要。

Business environment uncertainty remains heightened due to supply chain constraints and inflation, which have numerous potential impacts.

由於供應鏈限制和通貨膨脹，商業環境的不確定性仍然加劇，這具有許多潛在的影響。

This means results could change at any time, and the forecasted impact of risk considerations is the best estimate based on the information available as of today.

這意味著結果可能隨時發生變化，而風險考慮因素的預測影響是基於當今可用資訊的最佳估計。

Additional information concerning risk factors and cautionary statements are available in our most recent SEC filings and our most recent company 10-K.

有關風險因素和警示性聲明的更多信息，請參閱我們最新的 SEC 文件和我們最新的公司 10-K。

I'll now hand it over to our CEO, Ron Lombardi.

現在我將把它交給我們的執行長 Ron Lombardi。

Ron?

羅恩？

Thanks, Phil.

謝謝，菲爾。

Let's begin on slide 5.

讓我們從幻燈片 5 開始。

Our Q2 results exceeded the expectations we communicated back in August and improved on Q1.

我們第二季的業績超出了我們在八月傳達的預期，並且比第一季有所改善。

Sales of $284 million declined slightly versus the prior year, largely due to Clear Eyes supply chain limitations and Q1 timing.

銷售額為 2.84 億美元，較上年略有下降，這主要是由於 Clear Eyes 供應鏈的限制和第一季的時間表。

I'll provide an update on Clear Eyes in our wrap-up.

我將在總結中提供有關 Clear Eyes 的最新資訊。

Thanks to our diverse portfolio, we offset most of this decline in other business areas, led by strong and broad-based growth in our International segment and its Hydralyte brand, as well as our Canadian portfolio, which I'll touch on shortly.

由於我們多樣化的產品組合，我們抵消了其他業務領域的大部分下滑，這主要得益於我們的國際部門及其Hydralyte 品牌以及我們的加拿大產品組合（我將很快談到）的強勁和廣泛增長。

Resulting earnings and cash flow were stable in Q2 thanks to our business strategy and disciplined capital deployment.

由於我們的業務策略和嚴格的資本部署，第二季的收益和現金流保持穩定。

Gross margin improved sequentially and was approximately stable to the prior year.

毛利率較上年改善，與上年基本持平。

And we generated EPS of $1.09, up slightly to the prior year.

我們的每股收益為 1.09 美元，略高於上一年。

Strong free cash flow of $68 million grew double digits versus the prior year and continues to enable capital deployment that is used to enhance shareholder value.

強勁的自由現金流達到 6800 萬美元，與前一年相比增長了兩位數，並繼續支持用於提高股東價值的資本部署。

In Q2, we reduced debt by $40 million that resulted in a leverage decline to 2.7x while still repurchasing shares opportunistically.

第二季度，我們減少了 4,000 萬美元的債務，導致槓桿率下降至 2.7 倍，同時仍機會性地回購股票。

Now let's turn to page 6 for a review of our Canadian business.

現在讓我們翻到第 6 頁來回顧我們的加拿大業務。

In addition to a fast-growing international business, we also have a well-positioned portfolio in Canada that represents about 5% of our annual sales.

除了快速成長的國際業務外，我們還在加拿大擁有定位良好的產品組合，約占我們年銷售額的 5%。

Our Canadian business is comprised of many leading number one brands in niche categories, the highlights of which are shown on the left side of the page.

我們的加拿大業務由許多利基類別的領先品牌組成，其亮點顯示在頁面左側。

Many of these are similar brands to the US with the addition of Gaviscon, Sleep-eze and newly added Hydralyte, which we acquired the rights to in early October.

其中許多品牌與美國品牌相似，包括 Gaviscon、Sleep-eze 和新添加的 Hydralyte（我們在 10 月初獲得了這些品牌的權利）。

On the right side of the page, you'll see that, in total, our portfolio grew at a sales CAGR of approximately 4% since fiscal '20 with even stronger high single-digit growth year-to-date.

在頁面右側，您會看到，自 20 財年以來，我們的產品組合總體銷售複合年增長率約為 4%，今年迄今的單位數增長甚至更為強勁。

This solid performance is driven by execution of our proven brand-building tactics, just like our US business.

這種穩健的業績得益於我們行之有效的品牌建立策略的執行，就像我們的美國業務一樣。

One example driving this performance is Gaviscon, which is our largest brand in the country and growing in excess of the overall Canadian growth rate.

推動這一業績的一個例子是 Gaviscon，它是我們在加拿大最大的品牌，其成長速度超過了加拿大的整體成長率。

Our marketing for Gaviscon is targeted around the benefits of having one product to both treat and protect against heartburn.

我們對 Gaviscon 的行銷目標是利用一種產品來治療和預防胃灼熱的好處。

The communications are wide-ranging across video, social media, search and targeted partnerships.

溝通範圍廣泛，涵蓋影片、社群媒體、搜尋和有針對性的合作夥伴關係。

We then support these efforts with targeted shopper programs like the display shown on the page as well as consistent, long-term innovation.

然後，我們透過有針對性的購物者計畫（例如頁面上顯示的展示）以及一致的長期創新來支持這些努力。

Most recently, Gaviscon introduced Flavor Blend, which is gaining momentum and now one of the top-selling SKUs in the category.

最近，Gaviscon 推出了 Flavor Blend，該產品勢頭強勁，現已成為該類別中最暢銷的 SKU 之一。

Launched in late 2023, Gaviscon Flavor Blend is a great-tasting, lower-sugar version of our top-selling chewable tablet designed to relieve heartburn due to acid reflux.

Gaviscon Flavor Blend 於 2023 年底推出，是我們最暢銷咀嚼片的美味、低糖版本，旨在緩解胃酸倒流引起的胃灼熱。

In aggregate, these brand-building efforts continue to drive growth for our largest Canadian brand over the long term.

總的來說，這些品牌建立工作將繼續推動我們最大的加拿大品牌的長期成長。

In summary, our Canadian portfolio shares similar growth strategies to our US business and is further enhanced by long-term growth of Gaviscon.

總之，我們的加拿大投資組合與我們的美國業務具有相似的成長策略，並且透過 Gaviscon 的長期成長進一步增強。

These tactics and portfolio positioning have us set up well for continued success.

這些策略和投資組合定位為我們的持續成功奠定了良好的基礎。

With that, I'll turn it over to Chris to discuss the financials.

這樣，我會交給克里斯討論財務問題。

Thanks, Ron.

謝謝，羅恩。

Good morning, everyone.

大家早安。

Let's turn to slide 8 and review our second quarter fiscal '25 financial results.

讓我們轉向投影片 8 回顧我們 25 財年第二季的財務表現。

As a reminder, the information in today's presentation includes certain non-GAAP information that is reconciled to the closest GAAP measure in our earnings release.

提醒一下，今天演示文稿中的信息包括某些非 GAAP 信息，這些信息已與我們收益發布中最接近的 GAAP 衡量標準進行了調整。

Q2 revenue of $283.8 million declined 90 basis points from $286.3 million in the prior year.

第二季營收為 2.838 億美元，較上年同期的 2.863 億美元下降 90 個基點。

We experienced broad-based growth in the GI category, including strong performance across brands such as Fleet, Dramamine and Gaviscon.

我們在地理標誌類別中經歷了廣泛的成長，包括 Fleet、Dramamine 和 Gaviscon 等品牌的強勁表現。

We also experienced growth in our International segment, headlined by Hydralyte.

我們的國際業務也取得了成長，以 Hydralyte 為首。

As we expected, this growth was offset by declines in our eye and ear care category, owing to Clear Eye supply constraints as well as the timing of cough and cold ordering patterns.

正如我們預期的那樣，這種增長被我們的眼耳護理類別的下降所抵消，原因是 Clear Eye 供應限制以及咳嗽和感冒訂購模式的時間安排。

EBITDA margin was consistent, in the low-30s, but down slightly to prior year, owing to the timing of marketing spend.

EBITDA 利潤率始終保持在 30 左右，但由於行銷支出的時機而略低於上年。

EPS increased 1.7% versus prior year thanks to the benefits of our capital allocation strategy and improvement in interest expense and share count.

由於我們的資本配置策略以及利息支出和股票數量的改善，每股收益比上年增長了 1.7%。

Let's turn to slide 9 for detail around consolidated results for the first half.

讓我們轉向幻燈片 9，了解上半年綜合結果的詳細資訊。

For the first slide months of fiscal '25, revenues decreased 2.5% organically versus the prior year.

在 25 財年的前幾個月，營收與前一年相比有機下降了 2.5%。

By segment, excluding FX, North America segment revenues decreased 3.7% and international segment revenues increased 4.8% versus prior year.

按部門劃分，不包括外匯，北美部門營收較上年下降 3.7%，國際部門營收較上年成長 4.8%。

The first six months sales declines were due to anticipated impacts of the Clear Eyes supply chain constraints previously discussed, the planned impact of retail ordering in the cough and cold category and pressure in women's health, largely in the first quarter.

前六個月的銷售額下降是由於前面討論的 Clear Eyes 供應鏈限制的預期影響、咳嗽和感冒類別零售訂單的計劃影響以及女性健康壓力（主要是在第一季度）。

As targeted, we are experiencing sequential improvements in Summer's Eve with the second quarter sales flat with prior year.

按照目標，我們在夏季前夕經歷了連續的改善，第二季的銷售額與去年同期持平。

As discussed on recent calls, our brand positioning, new products and marketing campaigns are improving consumption trends, and we continue to feel good about further improvements moving forward.

正如最近電話會議所討論的那樣，我們的品牌定位、新產品和行銷活動正在改善消費趨勢，我們繼續對未來的進一步改進感到滿意。

We also continued to experience nice growth in the International OTC segment in the first six months, led by Hydralyte, along with impressive double-digit year-over-year growth in the e-commerce business, continuing the long-term trend of higher online purchases.

前六個月，在 Hydralyte 的帶領下，我們的國際 OTC 業務繼續取得良好增長，電子商務業務也實現了令人印象深刻的兩位數同比增長，延續了線上增長的長期趨勢。

Total company gross margin of 55.1% in the first six months was down slightly versus the prior year, as we expected, owing to the expense associated with the continued expedited freight of Clear Eyes.

正如我們預期的那樣，由於 Clear Eyes 持續加急貨運的相關費用，該公司前 6 個月的總毛利率為 55.1%，較上年略有下降。

For the full fiscal year, we still anticipate a gross margin of approximately 56%.

對於整個財年，我們仍預期毛利率約為 56%。

We still expect the increase from the prior year to be driven by pricing actions and cost savings that more than offset inflationary cost headwinds.

我們仍然預計，與前一年相比的成長將由定價行動和成本節約推動，這將足以抵消通膨成本的不利影響。

Q3 gross margin is estimated to be approximately 55%.

第三季毛利率預計約55%。

Advertising and marketing was up in dollars and as a percentage of sales, coming in at 14.7% of sales for the first six months.

廣告和行銷以美元計算，佔銷售額的百分比有所上升，前六個月佔銷售額的 14.7%。

For fiscal '25, we still anticipate A&M up in dollars versus prior year, while we expect Q3 A&M to approximate 13% of sales.

對於 25 財年，我們仍然預期 A&M 的美元銷售額將比上一年有所成長，同時我們預計第三季 A&M 將佔銷售額的約 13%。

G&A expenses were 10% of sales in the first six months due to the timing of certain expenses.

由於某些費用的時間安排，一般管理費用占前六個月銷售額的 10%。

We still anticipate full year G&A of approximately 9.5% as a percent of sales.

我們仍預期全年總管理費用佔銷售額的比例約為 9.5%。

Finally, adjusted EPS of $1.98 compared to $2.13 in the prior year, down from the impact of lower Q1 revenues, air freight costs as well as the timing of A&M and G&A spend, partially offset by more favorable interest expense.

最後，調整後每股收益為1.98 美元，而上年為2.13 美元，這是由於第一季收入下降、空運成本以及A&M 和G&A 支出時間的影響而下降，但部分被更有利的利息支出所抵消。

We expect more favorable interest trends to continue thanks to our long-term debt reduction efforts and now anticipate full year interest expense of less than $50 million.

由於我們長期的債務削減努力，我們預計更有利的利息趨勢將持續下去，目前預計全年利息支出將低於 5,000 萬美元。

Our Q2 tax rate was 24.1%, resulting in a first half tax rate of 23.6%, and we still anticipate a tax rate of approximately 24% for the remaining quarters of fiscal '25.

我們第二季的稅率為 24.1%，上半年稅率為 23.6%，我們仍預期 25 財年剩餘季度的稅率約為 24%。

Now let's turn to slide 10 and discuss cash flow.

現在讓我們翻到幻燈片 10 來討論現金流。

For the first half, we generated $121.4 million in free cash flow, up double digits versus the prior year.

上半年，我們產生了 1.214 億美元的自由現金流，比上年增長了兩位數。

We continue to maintain industry-leading free cash flow and are maintaining our outlook for the full year of $240 million or more.

我們繼續保持業界領先的自由現金流，並維持全年 2.4 億美元或更多的預期。

At September 30, our net debt was approximately $1 billion, and we achieved a covenant-defined leverage ratio of 2.7x.

截至 9 月 30 日，我們的淨債務約為 10 億美元，我們實現了契約定義的槓桿率為 2.7 倍。

For the first six months, we've now repurchased 566,000 shares for approximately $38 million.

前六個月，我們已以約 3,800 萬美元的價格回購了 566,000 股股票。

These repurchases were enabled by our low leverage and consistent business performance, which gives us strategic flexibility with our capital.

這些回購是由於我們的低槓桿率和穩定的業務表現而實現的，這使我們的資本具有戰略靈活性。

We will continue to evaluate further opportunistic repurchases as well as M&A as part of a disciplined capital deployment strategy.

我們將繼續評估進一步的機會性回購以及併購，作為嚴格資本部署策略的一部分。

With that, I turn it back to Ron.

說完，我又把話轉回給榮恩。

Thanks, Chris.

謝謝，克里斯。

Let's turn to slide 12 to wrap up.

讓我們轉到投影片 12 來總結一下。

As expected, halfway through the year, we are realizing accelerating business momentum thanks to our proven business strategy and diversified brand portfolio.

正如預期的那樣，由於我們行之有效的業務策略和多元化的品牌組合，今年過半，我們的業務勢頭正在加速。

For fiscal '25, we continue to anticipate revenues of $1.125 billion to $1.140 billion and organic revenue growth of approximately 1% versus fiscal '24.

對於 25 財年，我們繼續預計營收為 11.25 億美元至 11.40 億美元，有機收入較 24 財年增長約 1%。

We're expecting [Q2] revenue of approximately $286 million, returning to year-over-year growth.

我們預計 [Q2] 營收約為 2.86 億美元，恢復年成長。

In Q3, we expect momentum in multiple brands and categories to offset pressure from Clear Eyes supply constraints.

在第三季度，我們預計多個品牌和類別的動能將抵消 Clear Eyes 供應限制的壓力。

We continue to work with our partners as they execute upgrades that will support high-quality products, long-term supply chain reliability and inventory recovery.

我們將繼續與合作夥伴合作，幫助他們執行升級，以支援高品質的產品、長期的供應鏈可靠性和庫存回收。

For our third quarter, we expect revenue for Clear Eyes to improve sequentially versus the second quarter.

對於第三季度，我們預計 Clear Eyes 的營收將比第二季度連續改善。

For EPS, we continue to anticipate adjusted EPS of $4.40 to $4.46 for the full year, but anticipate the higher end of the range thanks to our debt reduction efforts.

對於每股收益，我們繼續預計全年調整後每股收益為 4.40 美元至 4.46 美元，但由於我們的債務削減努力，預計該範圍的較高端。

For Q3, we'd anticipate EPS of $1.16.

對於第三季度，我們預計每股收益為 1.16 美元。

Lastly, we continue to anticipate free cash flow of $240 million or more.

最後，我們繼續預期自由現金流將達到 2.4 億美元或更多。

We have ample capital deployment optionality that has a history of maximizing value for our shareholders.

我們擁有充足的資本部署選擇權，歷來為股東實現價值最大化。

With that, I'll open it up for questions.

有了這個，我將打開它來提問。

Operator?

操作員？

(Operator Instructions) Rupesh Parikh, Oppenheimer & Company.

（操作員說明）Rupesh Parikh，Oppenheimer & Company。

So I had 2 questions, starting with Clear Eyes and Summer's Eve.

所以我有兩個問題，首先是《Clear Eyes》和《Summer's Eve》。

So on Clear Eyes, I would love to get the latest update in terms of how you guys are thinking in the back half of the year?

那麼在《Clear Eyes》上，我很想了解你們下半年的想法的最新消息？

And then when do you think you'll be past all the supply chain headwinds?

那麼您認為什麼時候您才能克服所有供應鏈阻力？

And then for Summer's Eve, upbeat commentary and improvement you're seeing sequentially.

然後在夏夜，你會依序看到樂觀的評論和進步。

I just wanted to get a sense of how you're thinking about the back half of the year there.

我只是想了解您對下半年的看法。

So let's start with the Clear Eyes question.

那麼讓我們從「清晰的眼睛」問題開始。

So in terms of Clear Eyes' supply chain, we finished really right where we expected for the first half in terms of sales.

因此，就 Clear Eyes 的供應鏈而言，我們上半年的銷售額確實達到了預期。

As we communicated back in August, higher Q1 sales benefited from some shipment timing at the end of the quarter and balanced out in Q2 to our original forecast for the first half.

正如我們在 8 月所傳達的那樣，第一季銷售額的成長得益於季度末的一些發貨時間，並在第二季度與我們對上半年的原始預測相平衡。

As I mentioned in my prepared remarks today, we're starting to see sequential improvement in Clear Eyes and expect sales improvements in Q3 versus Q2.

正如我在今天準備好的演講中提到的，我們開始看到 Clear Eyes 的連續改善，並預計第三季的銷售量將比第二季有所改善。

We believe inventory levels at retail are hitting their low point now, based on the sales outlook, and we expect to see stabilization of trends during the remainder of Q3.

根據銷售前景，我們認為零售庫存水準目前已觸及低點，並且預計第三季剩餘時間趨勢將趨於穩定。

More importantly, we're still taking decisive action to strengthen the brand's supply chain through 2 key initiatives, first, implementing strategic improvements with current partners, including upgrades and expanding capacity, while executing a long-term strategy to further diversify and expand our supply base.

更重要的是，我們仍然採取果斷行動，透過兩項關鍵措施來加強品牌的供應鏈，首先，與現有合作夥伴實施策略改進，包括升級和擴大產能，同時執行長期策略，進一步多元化和擴大我們的供應根據。

We think these are the right long-term steps that will enhance the brand long term.

我們認為這些是正確的長期步驟，可以長期提升品牌。

Clear Eyes is still the largest OTC brand in the category in units at retail.

以零售量計算，Clear Eyes 仍然是該類別中最大的非處方藥品牌。

And given its iconic nature, we think it's well set up for a return to growth as supply improves.

鑑於其標誌性的性質，我們認為隨著供應的改善，它已經做好了恢復成長的準備。

So for Summer's Eve, we've talked previously in last quarter about some of the new products introduced as well as new digital messaging that's out there, and it's largely taking hold, right, and starting to move the brand forward.

因此，對於夏夜，我們在上個季度之前已經討論過推出的一些新產品以及新的數位訊息，它在很大程度上佔據了主導地位，並開始推動品牌向前發展。

So in Q2, Summer's Eve was flat in North America, and we're making good progress towards returning the brand to growth.

因此，在第二季度，北美市場的夏季銷售表現平穩，我們在恢復品牌成長方面取得了良好進展。

It is still the clear market leader in this segment, and we think there's a number of ways the brand can continue the momentum we've started in Q2 through the end of the year.

它仍然是這一領域明顯的市場領導者，我們認為該品牌可以透過多種方式將我們在第二季開始的勢頭延續到今年年底。

And I think, just as importantly, or more importantly, we actually began to see a share gain at the end of the second quarter for the first time in about three years.

我認為，同樣重要的是，或者更重要的是，我們實際上在第二季末開始看到大約三年來的首次股價上漲。

So we continue to feel really good about our execution against these long-term brand-building strategies and the new products and the momentum we're beginning to see in Summer's Eve.

因此，我們對這些長期品牌建立策略、新產品以及我們在夏夜開始看到的勢頭的執行情況仍然感到非常滿意。

Great.

偉大的。

And then maybe one follow-up question.

也許還有一個後續問題。

A lot of concerns out there on the drugstore channel.

藥局通路存在著許多擔憂。

And I know we've seen closures within that channel in recent quarters.

我知道最近幾季我們已經看到該頻道關閉。

So historically, what have you seen from drug -- some of these drugstore players closing stores?

那麼從歷史上看，你從毒品中看到了什麼——一些藥局經營者關閉了商店？

And it seems like a lot going forward from a closure perspective.

從關閉的角度來看，這似乎有很多進展。

So how do you guys think about that for impacting your business?

那麼你們如何看待這對你們的業務的影響？

Sure.

當然。

Actually, over the last month or so, we actually have seen some clarity on what to expect out of the drug chain.

事實上，在過去一個月左右的時間裡，我們實際上已經清楚地了解了藥品鏈的前景。

And the clarity and what we're hearing is that the expected store closures are going to be fairly consistent with what's been going over -- going on over the last couple of years, Rupesh.

我們清楚地聽到的是，預期的商店關閉將與過去幾年發生的情況相當一致，魯佩什。

So the level of store closures that's anticipated is kind of in the base business already.

因此，預計商店關閉的程度已經在基礎業務中反映出來了。

And for us, we really don't care where the consumer buys the product.

對我們來說，我們真的不在乎消費者在哪裡購買產品。

Our product is broadly available.

我們的產品廣泛可用。

Our gross margin is consistent around -- across channels.

我們的毛利率在各個通路上都是一致的。

So we just look to win with the consumer wherever they choose to shop and then continue to work with the retailers to help them be successful in their objectives.

因此，無論消費者選擇在哪裡購物，我們都希望贏得他們的青睞，然後繼續與零售商合作，幫助他們成功實現目標。

So I'd really say it's more of the same in terms of what we expect from the drug channel.

所以我真的想說，就我們對藥物管道的期望而言，這更多是相同的。

Susan Anderson, Canaccord Genuity.

蘇珊安德森，Canaccord Genuity。

Nice job on the quarter.

本季工作做得很好。

I was wondering if you could maybe talk about the international business, particularly Hydralyte.

我想知道您是否可以談論國際業務，特別是 Hydralyte。

It obviously continues to do very well over there.

顯然，它在那裡繼續表現得很好。

I'm just curious what you're seeing in that market.

我只是好奇你在那個市場上看到了什麼。

It feels like, in the US, we're definitely seeing a number of new hydration companies jump into the category, and then you have the old brands such as Gatorade and POWERADE.

感覺就像在美國，我們肯定會看到許多新的水袋公司進入這個類別，然後還有佳得樂和POWERADE等老品牌。

So it seems to be getting more competitive.

因此，它似乎變得更具競爭力。

Just curious if you're seeing that same dynamic over in Australia and how that competitive landscape has changed.

只是好奇您是否在澳洲看到相同的動態以及競爭格局發生了怎樣的變化。

Susan, it's Chris.

蘇珊，是克里斯。

So International had another strong segment performance for the quarter, right, up about 5%, which is consistent with our long-term algorithm.

因此，國際業務本季的細分市場表現再次強勁，成長了約 5%，這與我們的長期演算法一致。

Hydralyte, as you noted, had nice growth.

正如您所指出的，Hydralyte 生長良好。

Consumption was up double digits.

消費成長了兩位數。

We're seeing new entrants in the category over in Australia.

我們在澳洲看到該類別的新進入者。

But remember, different than the US maybe, Hydralyte has a very long-standing history and connection with consumers, starting at over a 90% share.

但請記住，也許與美國不同，Hydralyte 擁有非常悠久的歷史並與消費者建立了聯繫，起始份額超過 90%。

So Hydralyte is still growing very nicely.

所以 Hydralyte 的成長仍然非常好。

We've made investments there with -- behind the brand, and it seems to be paying off.

我們在品牌背後進行了投資，而且似乎正在獲得回報。

It's worth noting, for this quarter, international, it wasn't just Hydralyte or Australia.

值得注意的是，本季的國際市場不僅僅是 Hydralyte 或澳洲。

We had a few other brands and geographies doing well.

我們還有一些其他品牌和地區表現良好。

Latin America, for example, had a pretty strong quarter.

例如，拉丁美洲的季度表現相當強勁。

So diversified a bit over there, just as it is here in North America.

那裡有點多元化，就像北美一樣。

Okay.

好的。

Great.

偉大的。

And then maybe just on cash flow, it was pretty strong in the quarter, I guess.

然後，也許就現金流而言，我想本季的現金流相當強勁。

Is there any change to how you're thinking about capital allocation between balancing share repurchases and then M&A?

您對平衡股票回購和併購之間的資本配置的看法是否有任何變化？

And then just in terms of the M&A landscape, I guess, are you seeing anything -- any brands becoming more attractive out there, any more opportunities?

然後就併購格局而言，我想，您是否看到任何東西 - 有任何品牌變得更具吸引力，有更多機會嗎？

Yes.

是的。

Great.

偉大的。

So yes, our quarter was strong from a cash flow perspective, obviously enables our ability to do multiple things at once to drive value where -- with our leverage at 2.7x. So we're still anticipating reducing leverage in fiscal '25.

所以，是的，從現金流的角度來看，我們的季度表現強勁，這顯然使我們能夠同時做多項事情來推動價值——我們的槓桿率為 2.7 倍。因此，我們仍預期 25 財年會降低槓桿。

As we sit here today, we're still looking to buy back shares opportunistically.

當我們今天坐在這裡時，我們仍然尋求機會回購股票。

In the first quarter, we offset share grant dilution, and we did some more opportunistic share buybacks in Q2, now almost $40 million year-to-date.

在第一季度，我們抵消了股票授予的稀釋，並在第二季度進行了一些機會主義的股票回購，今年迄今已接近 4000 萬美元。

So we think there'll be further buybacks in the back half balanced against the M&A landscape, right, which is our preference, and likely to pay off our remaining variable debt, which stands at $60 million at the end of September, likely heading to $0 by the end of the fiscal.

因此，我們認為下半年將會有進一步的回購，與併購情勢相平衡，這是我們的偏好，並且可能會償還我們剩餘的可變債務，截至 9 月底為 6000 萬美元，可能會到本財年結束時為0 美元。

So we have ample remaining authorization under our repurchase program.

因此，我們的回購計劃有充足的剩餘授權。

Remember, it was [about] $300 million.

請記住，這大約是 3 億美元。

And thus far, we've completed about $38 million of that, so really a testament to the long-term consistent robust cash flow.

到目前為止，我們已經完成了大約 3800 萬美元，這確實證明了長期持續強勁的現金流。

And we would expect those trends to continue.

我們預計這些趨勢將持續下去。

From an M&A perspective, I guess I would say more of the same, as we usually say.

從併購的角度來看，我想我會說更多與我們通常所說的相同的內容。

We're looking at multiple things.

我們正在考慮多種事情。

We'll continue to do that.

我們將繼續這樣做。

We think there'll be further opportunity as you continue to hear from some large players around spinouts and such, and so definitely a preference -- first use of cash flow after investing in the business now that leverage is standing where it is.

我們認為，當你繼續聽到一些大型企業關於分拆等問題的消息時，將會有更多的機會，因此絕對是一種偏好——既然槓桿率保持在現有水平，那麼在投資業務後首先使用現金流。

Okay.

好的。

Great.

偉大的。

If I could ask maybe one more just on, I guess, the promotional or competitive environment in the US, Walmart, and Target have talked about lowering prices.

如果我可以再問一個問題的話，我想，美國的促銷或競爭環境，沃爾瑪和塔吉特已經談到了降價。

We've definitely seen some of that across the personal care category.

我們確實在個人護理類別中看到了其中的一些情況。

I mean, maybe it's a little bit different for you guys since your products are so niche-based.

我的意思是，也許這對你們來說有點不同，因為你們的產品是如此小眾。

But I guess maybe just any thoughts on that front in terms of are you seeing the environment get any more competitive from promotions or any type of lowering of prices?

但我想也許只是在這方面有任何想法，您是否看到環境因促銷或任何類型的降價而變得更具競爭力？

Susan, it's Ron here.

蘇珊，我是羅恩。

So for our categories, right, which are quite a bit different than personal care and other aisles in the store, right, if -- our products are used for incident-based, largely.

因此，對於我們的類別，對，與商店中的個人護理和其他過道有很大不同，對，如果 - 我們的產品主要用於基於事件的產品。

You wake up, someone in your household is sick, you need the product.

您醒來，家裡有人生病了，您需要該產品。

So it's a different usage occasion.

所以使用場合不同。

In addition to that, during the high inflationary period, we didn't have the kind of cost and selling price increases that other categories had.

除此之外，在高通膨時期，我們沒有像其他類別那樣出現成本和售價上漲。

I think, at the peak, our pricing -- selling price increase is about $25 million in a given year.

我認為，在高峰時期，我們的定價——銷售價格在某一年的增幅約為 2,500 萬美元。

So we're not facing the same kind of inflation in our categories that others are facing, so we're not seeing that.

因此，我們在我們的類別中沒有面臨與其他類別相同的通貨膨脹，所以我們沒有看到這種情況。

Good luck for the rest of the year.

祝今年剩下的時間一切順利。

(Operator Instructions) Anthony Lebiedzinski, Sidoti & Company.

（操作員說明）Anthony Lebiedzinski，Sidoti & Company。

So just in terms of your exposure to e-commerce, can you speak to that as far as what percentage of your revenue is coming through e-commerce now?

那麼，就您對電子商務的接觸程度而言，您能談談目前您的收入中有多少比例來自電子商務嗎？

And maybe if you could separate that for North American versus international?

也許您可以將北美地區與國際地區分開？

How do you see that trending going forward?

您如何看待未來的趨勢？

Anthony, it's Chris.

安東尼，是克里斯。

So right now, e-com is at about 15% of our business overall, and it's largely based in North America.

目前，電子商務約占我們整體業務的 15%，而且主要集中在北美。

So as we continue to see the e-com platform roll out internationally, certainly, we've got the playbook, and we'll utilize it.

因此，隨著我們繼續看到電子商務平台在國際上推廣，我們當然已經有了劇本，我們將利用它。

But for right now, it is very largely driven by North America.

但就目前而言，它很大程度上是由北美推動的。

Got you.

明白你了。

And then in terms of your organic growth, so for this year, you're guiding to roughly 1%, excluding FX.

然後就有機成長而言，今年的目標是大約 1%（不包括外匯）。

Obviously, the performance has been affected by the Clear Eyes situation.

顯然，性能已經受到了Clear Eyes情況的影響。

And that being said, do you guys think that you can get back to that 2% to 3% growth algorithm, whether it's next year or sometime after that?

話雖這麼說，你們認為你們可以回到 2% 到 3% 的成長演算法嗎，無論是明年還是之後的某個時候？

How do you think about the business longer term?

您如何看待業務的長期發展？

Yes.

是的。

So we talked about this year's guide at about 1% and Clear Eyes supply impacting that by about 1%.

因此，我們討論了今年的指南約為 1%，而 Clear Eyes 的供應量對此影響約為 1%。

So certainly, we just talked on the call about expecting sales for Clear Eyes in the third quarter to improve sequentially over Q2.

當然，我們剛剛在電話會議上談到，預計 Clear Eyes 第三季的銷售額將比第二季連續改善。

And Ron talked about some of the strategic investments that are being made along the supply chain front around our eye care products.

羅恩談到了圍繞我們的眼部護理產品在供應鏈前沿進行的一些策略性投資。

So as we sit here today, obviously, nothing fundamentally happening that gives us pause on our long-term algorithm.

因此，當我們今天坐在這裡時，顯然沒有任何根本性的事情發生讓我們暫停我們的長期演算法。

Great.

偉大的。

Okay.

好的。

And then my last question, as far as gross margin, there was some impact from higher air freight costs in the second quarter.

然後我的最後一個問題，就毛利率而言，第二季航空貨運成本上升產生了一些影響。

Do you still expect that to be an issue in the back half of fiscal '25?

您仍然認為這會成為 25 財年後半段的問題嗎？

And just overall, how do you guys think about gross margins longer term?

總的來說，你們如何看待長期毛利率？

Yes.

是的。

So you're right.

所以你是對的。

We are expecting some continued air freight to support customer service levels.

我們預計會有一些持續的空運來支援客戶服務水準。

Our guide anticipates that.

我們的導遊預計到了這一點。

We are expecting to incur less airfreight as the year progresses.

隨著時間的推移，我們預計空運量將會減少。

But just generally speaking, if you think about the guide for the year at approximately 56% gross margin, we'll continue to apply continuous cost improvements, and we believe that pricing actions and cost improvements can offset future inflation.

但一般來說，如果考慮到今年的毛利率約為 56%，我們將繼續應用持續的成本改進，並且我們相信定價行動和成本改進可以抵消未來的通膨。

So the march back -- again, nothing fundamental to our business that would prevent us from marching back to a historical gross margin level.

因此，再次強調，對於我們的業務來說，沒有任何根本因素會阻止我們回到歷史毛利率水準。

Best of luck.

祝你好運。

Thank you very much.

非常感謝。

At this time, I am showing no further questions.

目前，我沒有再提出任何問題。

I would now like to turn it back to Ron Lombardi for closing remarks.

現在我想請 Ron Lombardi 發表結束語。

Thank you, operator, and thanks for -- to everyone for joining us today, and we look forward to providing another update at the end of Q3.

感謝營運商，感謝大家今天加入我們，我們期待在第三季末提供另一次更新。

Have a great day.

祝你有美好的一天。

Thank you for your participation in today's conference.

感謝您參加今天的會議。

This does conclude the program, and you may now disconnect.

這確實結束了程序，您現在可以斷開連接。