Perrigo Company PLC (PRGO) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Perrigo Second Quarter 2024 Financial Results Conference Call. (Operator Instructions) This call is being recorded on Friday, August 2, 2024.

早安，女士們、先生們，歡迎參加 Perrigo 2024 年第二季財務業績電話會議。（操作員說明）此通話錄音時間為 2024 年 8 月 2 日星期五。

I would now like to turn the conference over to Bradley Joseph, Vice President of Global Investor Relations. Please go ahead.

現在我想將會議交給全球投資者關係副總裁 Bradley Joseph。請繼續。

Good morning and good afternoon, everyone. Welcome to Perrigo's Second Quarter 2024 Earnings Conference Call. I hope you all had a chance to review our press release issued today. A copy of the release and presentation for today's discussion are available within the Investors section of the perrigo.com website. Joining today's call are President and CEO, Patrick Lockwood-Taylor; and CFO, Eduardo Bezerra.

大家早安，下午好。歡迎參加 Perrigo 2024 年第二季財報電話會議。我希望大家有機會閱讀我們今天發布的新聞稿。今天討論的新聞稿和簡報的副本可在 perrigo.com 網站的投資者部分取得。總裁兼執行長 Patrick Lockwood-Taylor 參加了今天的電話會議；財務長愛德華多·貝澤拉 (Eduardo Bezerra)。

I would like to remind everyone that during this call, participants will make certain forward-looking statements. Please refer to the important information for shareholders and investors and safe harbor language regarding these statements in our release issued earlier today.

我想提醒大家，在這次電話會議中，參與者將做出某些前瞻性陳述。請參閱我們今天早些時候發布的新聞稿中有關股東和投資者的重要資訊以及有關這些聲明的安全港語言。

A few items before we start. First, unless otherwise stated, all financial results discussed and presented are on a continuing operations basis. Continuing operations include the HRA Rare Diseases business, which is classified as held for sale after the first quarter-end and does not include any contributions from the divested Rx business, which was accounted for as discontinued operations prior to its sale. Second, organic growth excludes acquisitions, divestitures, exited product lines and currency in both comparable periods. All comments related to constant currency remove the impact of currency translation versus the prior year by applying the exchange rates used in the comparable measurement in the prior year's financial statements. And third, Patrick's discussion will focus solely on non-GAAP results, except as otherwise noted. See the appendix for additional details and reconciliations of all non-GAAP financial measures presented.

在我們開始之前先介紹一些項目。首先，除非另有說明，所有討論和提出的財務業績都是在持續經營的基礎上進行的。持續經營業務包括 HRA 罕見疾病業務，該業務在第一季末後被歸類為持有待售業務，但不包括剝離的 Rx 業務的任何貢獻，該業務在出售前被視為已終止業務。其次，有機成長不包括兩個可比較時期的收購、剝離、退出的產品線和貨幣。所有與固定貨幣相關的評論都透過應用上一年財務報表中可比計量中使用的匯率，消除了與前一年相比貨幣換算的影響。第三，除非另有說明，派崔克的討論將只關注非公認會計原則的結果。有關所有非公認會計準則財務指標的更多詳細資訊和調節表，請參閱附錄。

And with that, I'm pleased to turn the call over to Patrick.

至此，我很高興將電話轉給派崔克。

Thank you, Brad. Good morning, good afternoon, everyone. So to begin today's call, I'd like to briefly reflect on my first 12 months as CEO and the significant strides our team has made to advance our One Perrigo vision. As we are building out critical capabilities needed to win in self-care, we have also faced challenges, notably in the infant formula regulatory environment in the US, as we work together to ensure the supply of this critical product for caregivers and babies. I've been especially proud to work alongside my team as we have addressed these issues head on and with a spirit of resiliency. We're emerging as a stronger company as a result of these efforts.

謝謝你，布拉德。大家早安，下午好。因此，在今天的電話會議開始之前，我想簡要回顧一下我擔任執行長的頭 12 個月，以及我們的團隊在推進 One Perrigo 願景方面所取得的重大進展。在我們建立贏得自我照顧所需的關鍵能力的同時，我們也面臨著挑戰​​，特別是在美國的嬰兒配方奶粉監管環境中，因為我們共同努力確保為照護者和嬰兒提供這項關鍵產品。我特別自豪能夠與我的團隊一起工作，因為我們以堅韌的精神直面解決了這些問題。由於這些努力，我們正在成為一家更強大的公司。

I spent considerable time assessing our organization, portfolio and the competitive landscape. This body of work has only reinforced my original thesis that Perrigo has a strong foundation with a robust asset base. I believe we are poised for greater scale across multiple fronts and have the capacity to drive value-accretive growth through consumer-led innovation. This work has also identified the highest potential growth opportunities within our company today and will inform our strategic go-forward portfolio, which we look forward to discussing early next year.

我花了相當多的時間評估我們的組織、產品組合和競爭格局。這些工作進一步強化了我最初的論點，即 Perrigo 擁有堅實的基礎和強大的資產基礎。我相信，我們已準備好在多個領域實現更大規模，並有能力透過消費者主導的創新來推動增值成長。這項工作還確定了我們公司目前最具潛力的成長機會，並將為我們的策略性未來投資組合提供信息，我們期待明年初進行討論。

We have also executed key cost savings and efficiency initiatives with excellence. Some of these savings will be reinvested to fund both near- and long-term priorities, including brand building capabilities in the US and provide greater scale for our identified growth opportunities. Additionally, we have made significant progress in strengthening infant formula and are working through long-term sustainable growth plans for our US store brand business.

我們也出色地執行了關鍵的成本節約和效率措施。其中一些節省的資金將用於再投資，以資助近期和長期的優先事項，包括在美國的品牌建立能力，並為我們確定的成長機會提供更大的規模。此外，我們在加強嬰兒配方奶粉方面取得了重大進展，並正在為我們的美國商店品牌業務制定長期可持續成長計劃。

Finally, when I started at Perrigo, I was excited to encounter an organization comprised of dedicated and talented individuals who are committed to excellence and achieving top-tier performance. Over the past 12 months, we have further built on this foundation, welcoming additional world-class talent to the company in such areas as quality, brand building and other leadership, which has strengthened our consumer focus and overall capabilities.

最後，當我開始在 Perrigo 工作時，我很高興遇到一個由敬業且才華橫溢的個人組成的組織，他們致力於卓越並實現頂級績效。在過去的12個月裡，我們在此基礎上進一步發展，在品質、品牌建立和其他領導力等領域迎來了更多世界級人才加入公司，這增強了我們對消費者的關注和整體能力。

In summary, we have completed a great deal of strategic work, all while driving execution across our business. I'm energized by the passion and commitment of my colleagues and remain enthusiastic about the opportunities Perrigo has to create value. Year-to-date, we have delivered on our commitments while managing certain challenges. We discussed at the start of the year that efforts to enhance our quality assured infant formula network would have a meaningful impact from first half results, and they did, impacting organic net sales by 5.3 percentage points and earnings per share by $0.43 versus the prior year. After committing intense energy and resources to strengthening infant formula, this business is now poised to deliver ahead of our original expectations for the year. More on this in a few moments.

總之，我們已經完成了大量的策略工作，同時也推動了整個業務的執行。同事們的熱情和承諾讓我充滿活力，並對 Perrigo 創造價值的機會保持熱情。今年迄今為止，我們在應對某些挑戰的同時兌現了我們的承諾。我們在今年年初討論過，加強我們有品質保證的嬰兒配方奶粉網絡的努力將對上半年業績產生有意義的影響，結果確實如此，與上一年相比，有機淨銷售額下降了5.3 個百分點，每股收益下降了0.43 美元。在投入大量精力和資源來強化嬰兒配方奶粉後，該業務現已準備好提前超出我們今年的最初預期。稍後會詳細介紹這一點。

We also said that we expect to deliver '24 gross margin of approximately 40%, excluding the infant formula impact. And in the first half of the year, we did just that. This performance reflects the positive impact of product mix driven by growth in our branded portfolio and our supply chain and Project Energize efficiency programs.

我們也表示，預計 24 年毛利率約為 40%，不包括嬰兒配方奶粉的影響。今年上半年，我們就是這樣做的。這項業績反映了我們品牌產品組合、供應鏈和 Project Energize 效率計畫成長所推動的產品組合的正面影響。

Finally, we delivered on our first half EPS and continue to expect sizable earnings uplift in the second half. While there were headwinds to our top line, a diversified portfolio, accretive initiatives and relentless execution enabled us to deliver on our bottom-line expectations. Overall, I'm pleased with our first half performance and particularly in how we have addressed challenges in infant formula.

最後，我們實現了上半年的每股盈餘，並繼續預計下半年的獲利將大幅成長。儘管我們的營收面臨阻力，但多元化的投資組合、增值計劃和不懈的執行使我們能夠實現我們的獲利預期。總的來說，我對我們上半年的表現感到滿意，特別是我們如何應對嬰兒配方奶粉的挑戰。

At the same time, however, there are business dynamics that have changed during the quarter, and these merit discussion. First, we are confident in the recovery of our infant formula business and expect profitability to recover faster than originally expected for the year.

但同時，本季的業務動態也發生了變化，這些都值得討論。首先，我們對嬰幼兒配方奶粉業務的復甦充滿信心，預計今年獲利能力恢復速度將快於最初預期。

Second, Perrigo's global diversified business insulates us from major seasonal impacts. During the second quarter, cough/cold and allergy volume consumption in geographies where we compete declined mid- to high-single digits, stemming from much lower seasonal incidences and net changes in inventory levels at US retail customers. These factors led to lower net sales of our cough/cold and allergy products in the second quarter. The result of these dynamics is an unfavorable impact to our '24 net sales outlook of approximately 2.5 percentage points. Our diversified business model, however, helps us to absorb these sales impacts further down our P&L.

其次，Perrigo 的全球多元化業務使我們免受重大季節性影響。第二季度，由於季節性發病率大幅下降以及美國零售客戶庫存水準的淨變化，我們競爭地區的咳嗽/感冒和過敏消費量出現中高個位數下降。這些因素導致我們第二季度咳嗽/感冒和過敏產品的淨銷售額下降。這些動態的結果是對我們 24 年淨銷售前景產生約 2.5 個百分點的不利影響。然而，我們多元化的業務模式有助於我們進一步吸收這些銷售影響到我們的損益表中。

Third, turning to our US store brand. Perrigo has a rich history as a market leader in this space. And we are confident in the value we bring to customers and consumers. At the same time, we continue to focus on improving margins to deliver value to shareholders. This can lead to certain instances where we make the strategic and economic decision to walk away from business. And in the second quarter, we did just that. During negotiations with one customer, we tactically walked away from a portion of our business that was becoming too dilutive to our margins. This loss distribution is resulting in a 1.5 percentage point headwind to our '24 net sales outlook. However, as the current net value of contracts awarded and lost in '24 is positive, we expect this net sales headwind to be fully offset in 2025.

第三，轉向我們的美國商店品牌。Perrigo 作為該領域的市場領導者有著豐富的歷史。我們對為客戶和消費者帶來的價值充滿信心。同時，我們繼續專注於提高利潤率，為股東創造價值。在某些情況下，這可能會導致我們做出放棄業務的策略和經濟決策。在第二季度，我們就是這麼做的。在與一位客戶的談判中，我們策略性地放棄了對我們的利潤造成太大影響的部分業務。這種損失分佈導致我們 24 年淨銷售前景下降 1.5 個百分點。然而，由於目前 24 年授予和損失的合約淨值為正，我們預計這種淨銷售逆風將在 2025 年完全抵消。

The culmination of these three business updates is anticipated to enhance our full year gross margin, now expected to approach 40%. Previously, we had expected full year gross margin of approximately 40%, but excluding the impact from infant formula. Summing this up, our lower net sales outlook for '24 is expected to be offset by improved gross margin expansion due to faster-than-expected recovery of infant formula profitability and improved mix in the rest of the business, as well as lower variable expenses this year. This gives us the confidence to reaffirm our full year EPS outlook.

這三項業務更新的最終結果預計將提高我們的全年毛利率，目前預計將接近 40%。先前，我們預計全年毛利率約為40%，但不包括嬰兒配方奶粉的影響。總而言之，我們對 24 年較低的淨銷售前景預計將被毛利率擴張的改善所抵消，這是由於嬰兒配方奶粉盈利能力的恢復快於預期、其他業務的組合改善以及可變費用的降低今年。這讓我們有信心重申全年每股收益預期。

Now let's dig into our second quarter results. Organic net sales declined 9.1%, which included an expected impact of minus almost 7 percentage points from infant formula and an impact of 4 percentage points from lower sales in the upper respiratory and painless sleep aid categories, partially offset by a growth of 1.7 percentage points from the rest of the business. Gross and operating margins expanded meaningfully year-over-year, plus 190 basis points and 160 basis points, respectively. Sequentially, the expansion was even more pronounced as both gross and operating margins expanded more than 400 basis points compared to quarter 1, 2024.

現在讓我們深入了解第二季的業績。有機淨銷售額下降 9.1%，其中包括嬰兒配方奶粉預期下降近 7 個百分點的預期影響以及上呼吸道和無痛助眠類別銷售額下降 4 個百分點的影響，但部分被 1.7 個百分點的增長所抵消來自其他業務。毛利率和營業利益率較去年同期大幅成長，分別增加 190 個基點和 160 個基點。隨後，擴張更加明顯，毛利率和營業利潤率與 2024 年第一季相比增長了 400 個基點以上。

Operating income in the quarter was up 1.5% or 16.7%, excluding the year-over-year impact from infant formula. Second quarter EPS was $0.53, which whilst down $0.10 from a year ago, this is due primarily to a $0.09 per share discrete tax benefit in the prior year and the year-over-year impact from infant formula of $0.14, which was mostly offset by performance across the rest of the business.

剔除嬰兒配方奶粉的年比影響，該季度營業收入成長 1.5% 或 16.7%。第二季每股收益為 0.53 美元，雖然比去年同期下降 0.10 美元，但這主要是由於上一年每股 0.09 美元的離散稅收優惠以及嬰兒配方奶粉 0.14 美元的同比影響，這大部分被其餘業務的績效。

Looking at the component of organic net sales now in further detail. As just discussed, the nutrition category was the largest headwind, stemming from actions we are taking to strengthen our quality assured infant formula network. The net sales impact of minus 4 percentage points from the upper respiratory and pain and sleep aids category was due to: one, lower seasonal demand in the current year; two, net change in inventory levels at US retail customers where we experienced restocking of inventory in the prior -- and destocking in the second quarter of 2024. These inventory dynamics and the lower seasonal demand I just mentioned accounted for approximately 3 points of the 4-point decline. And lastly, SKU prioritization actions to enhance margin accounted for the remaining 1 point.

現在更詳細地研究有機淨銷售額的組成部分。正如剛才所討論的，營養類別是最大的阻力，源自於我們為加強有品質保證的嬰兒配方奶粉網路而採取的行動。上呼吸道、止痛和睡眠輔助品類對淨銷售額的影響為-4個百分點，原因是：一是本年度季節性需求下降；第二，美國零售客戶庫存水準的淨變化，我們在之前經歷了庫存補貨，並在 2024 年第二季度經歷了去庫存。這些庫存動態和我剛才提到的季節性需求下降約佔 4 點下降中的 3 點。最後，提高利潤率的 SKU 優先行動佔剩餘的 1 個百分點。

As a side note, this now completes the Americas SKU prioritization actions under our Supply Chain Reinvention Program. These impacts more than offset the positive 1.7 percentage points of growth across the rest of the business, driven primarily by our global branded portfolio. This branded growth included the recent launch of Opill, which along with elllaOne, drove growth in the women's health category. Additionally, share gains in Compeed and Jungle formula led growth in skin care.

順便說一句，這現在已經完成了我們供應鏈重塑計劃下的美洲 SKU 優先行動。這些影響遠遠抵消了主要由我們的全球品牌組合推動的其他業務 1.7 個百分點的正成長。這個品牌成長包括最近推出的 Opill，它與 elllaOne 一起推動了女性健康類別的成長。此外，Compeed 和 Jungle 配方的份額成長帶動了護膚品的成長。

Looking at our '24 operational priorities, I'm pleased to say we remain well on track. We've made significant progress augmenting and strengthening our infant formula business and are increasingly confident in our second half recovery as production volumes return. Opill sales continue to grow in the US, and our team is actively monitoring and analyzing consumer awareness trial, conversion and repeat usage through our real-time technology stacks. This analysis allows us to make swift and informed decisions, leveraging instantaneous insights to optimize our strategy. We are learning what sticks with consumers, and we'll continue working with customers to enhance consumer interest for the product. We are confident that Opill will be an important reproductive health product for women in the US for many years to come.

縱觀我們 24 年的營運重點，我很高興地說我們仍然順利步入正軌。我們在擴大和加強嬰兒配方奶粉業務方面取得了重大進展，隨著產量的恢復，我們對下半年的復甦越來越有信心。Opil 在美國的銷售額持續成長，我們的團隊正在透過我們的即時技術堆疊積極監控和分析消費者意識試驗、轉換和重複使用。這種分析使我們能夠做出快速、明智的決策，利用即時洞察來優化我們的策略。我們正在了解什麼能吸引消費者，並將繼續與客戶合作，以提高消費者對產品的興趣。我們相信，Opil 將在未來許多年成為美國女性重要的生殖健康產品。

We also continue to benefit from our accretive initiatives. First, we're on track to deliver a total of $25 million in incremental HRA synergies this year. Second, our Supply Chain Reinvention Program achieved gross savings of $23 million and a gross margin expansion of 40 basis points from the SKU prioritization actions year-to-date. And finally, Project Energize achieved $53 million of gross savings in the first half of the year, and we remain well on target to deliver $140 million to $170 million in pretax annualized gross savings by 2026.

我們也繼續從我們的增值措施中受益。首先，今年我們有望實現總計 2,500 萬美元的增量 HRA 綜效。其次，我們的供應鏈重塑計畫今年迄今透過 SKU 優先行動實現了 2,300 萬美元的總節省，毛利率提高了 40 個基點。最後，Project Energize 在今年上半年實現了 5,300 萬美元的總節省，我們仍然很好地實現了到 2026 年實現 1.4 億至 1.7 億美元稅前年化總節省的目標。

Now to infant formula. All sites are up and running, producing reliable, quality assured infant formula. Our focus now lies on rebuilding customer service levels and swiftly getting these critical products back on the shelves to serve consumers to need high-quality, affordable infant formula.

現在來談談嬰兒配方奶粉。所有工廠均已投入運行，生產可靠、有品質保證的嬰兒配方奶粉。我們現在的重點是重建客戶服務水平，並迅速讓這些關鍵產品重新上架，以滿足需要高品質、實惠的嬰兒配方奶粉的消費者。

We are currently making significant progress in quality control, production, packaging and release attainment. On a weekly basis, production volumes through the first four months of this year were approximately half of 2023's average weekly levels. During May-June, as we ramped up production following the remediation efforts with our new protocols in place, we immediately achieved production volumes of 90% of the prior year levels. And our latest data available for July reveals that production is on a path to return fully to prior year levels. Furthermore, manufacturing efficiencies and are recovering faster than expected, stemming from reductions in production stoppages and product scrapping, giving us confidence in the recovery of our second half profitability.

目前，我們在品質控制、生產、包裝和放行方面取得了重大進展。以週計算，今年前四個月的產量約為 2023 年平均週水準的一半。5 月至 6 月期間，隨著我們根據新協議進行修復工作並提高產量，我們的產量立即達到了去年水準的 90%。我們 7 月的最新數據顯示，產量正在完全恢復到去年的水平。此外，由於生產停工和產品報廢的減少，製造效率的恢復速度快於預期，這使我們對下半年獲利能力的恢復充滿信心。

I want to relay my thanks to the entire team on achieving this outstanding progress and their dedication to getting this business back on track. Progress made against our self-imposed remediation plans have been impactful both to our financial results, but also to the health of our business. But this business is not without other known challenges.

我想向整個團隊表示感謝，感謝他們取得瞭如此出色的進展，並感謝他們為使這項業務重回正軌而付出的努力。我們自行實施的補救計畫所取得的進展不僅對我們的財務表現產生了影響，而且對我們業務的健康發展也產生了影響。但這項業務並非沒有其他已知的挑戰。

As you may recall, the genesis behind Perrigo acquiring its Wisconsin facility from Nestle in 2022 was to bolster our network and eventually replace an aging facility through this cost-effective acquisition. Now that we are producing reliable, quality assured infant formula across the network, we will now start the work on optimizing our production footprint over time.

您可能還記得，Perrigo 於 2022 年從雀巢收購威斯康辛州工廠的初衷是為了加強我們的網絡，並最終透過這次經濟高效的收購來取代老化的工廠。現在我們正在透過網路生產可靠、有品質保證的嬰兒配方奶粉，我們現在將開始逐步優化我們的生產足跡。

So in summary, our business is strong. We remain on track to deliver our critical accretive initiatives, and margins are anticipated to continue to expand. We've made significant progress in infant formula and are very focused now on driving performance in US store brand. We are successfully consumerizing, simplifying and scaling One Perrigo. Our investments in brand building capabilities are starting to pay off, and we have tremendous growth opportunities ahead of us.

總而言之，我們的業務很強大。我們仍有望實現關鍵的增值計劃，預計利潤率將繼續擴大。我們在嬰兒配方奶粉方面取得了重大進展，現在非常注重提高美國商店品牌的表現。我們成功地消費、簡化並擴展了 One Perrigo。我們在品牌建立能力方面的投資開始獲得回報，我們面前有巨大的成長機會。

The strategic work on how to win continues, and we expect the outcome from this important initiative will pay dividends in '25, '26 and beyond. Critically, our team remains focused on delivering on our commitments and delivering the balance sheet. Perrigo plays a vital role in a sizable and growing self-care market by delivering value to consumers and society. I want to thank, of course, my 9,000-plus Perrigo colleagues for their commitment to increasing access to consumers around the world.

關於如何獲勝的策略工作仍在繼續，我們預計這項重要舉措的成果將在 25 年、26 年及以後帶來紅利。至關重要的是，我們的團隊仍然專注於兌現我們的承諾並交付資產負債表。Perrigo 透過為消費者和社會創造價值，在規模龐大且不斷增長的自我照護市場中發揮著至關重要的作用。當然，我要感謝我的 9,000 多名 Perrigo 同事致力於增加接觸世界各地消費者的機會。

And with that, I will now turn the call to our CFO, Eduardo Bezerra, to cover the financials. Eduardo?

現在，我將致電我們的財務長 Eduardo Bezerra，介紹財務狀況。愛德華多？

Thank you, Patrick. Good morning and good afternoon, everyone. Looking at the second quarter financials, starting with the GAAP to non-GAAP summary. Primary adjustments to our second quarter non-GAAP P&L were, first, amortization expenses of $58 million, restructuring charges of $37 million, primarily related to Project Energize and a $34 million impairment charge related to the divested HRA Pharma Rare Disease business.

謝謝你，派崔克。大家早安，下午好。看看第二季的財務數據，從 GAAP 到非 GAAP 的總結開始。我們第二季非GAAP 損益表的主要調整包括5,800 萬美元的攤銷費用、3,700 萬美元的重組費用（主要與Energize 計畫相關）以及與剝離的HRA Pharma 罕見疾病業務相關的3,400 萬美元的減損費用。

Full details can be found in the non-GAAP reconciliation tables attached to today's press release. From this point forward, all financial results discussed will be on an adjusted basis unless otherwise noted.

完整的詳細資訊可以在今天新聞稿所附的非公認會計原則調節表中找到。從現在起，除非另有說明，討論的所有財務結果都將在調整後的基礎上進行。

Patrick already discussed second quarter consolidated top line results. I will fast forward to operating results. Operating income of $139 million grew 1.5% versus a year ago as benefits from accretive initiatives, including our Supply Chain Reinvention and Project Energize programs more than offset the impact from lower net sales and actions in infant formula. Excluding the year-over-year impact from infant formula, operating income grew plus almost 17%. EPS was $0.53, down $0.10 from a year ago due primarily to a $0.09 per share discrete tax benefit in the prior year and a year-over-year impact from infant formula of $0.14, which was mostly offset by strong performance across the rest of our business.

帕特里克已經討論了第二季的綜合營收結果。我將快進到經營業績。營業收入為 1.39 億美元，較上年同期增長 1.5%，這得益於我們的供應鏈重塑和項目能源計劃等增值舉措的收益，足以抵消淨銷售額下降和嬰兒配方奶粉行動的影響。剔除嬰兒配方奶粉的年比影響，營業收入成長近 17%。每股收益為 0.53 美元，比去年同期下降 0.10 美元，主要是由於上一年每股 0.09 美元的離散稅收優惠以及嬰兒配方奶粉 0.14 美元的同比影響，這大部分被我們其他部門的強勁業績所抵消商業。

Year-to-date organic net sales declined 8.1%, including a known minus 5.3 percentage points impact from infant formula and minus 4.4 percentage points impact from the upper respiratory and pain and sleep aid categories that Patrick just mentioned. These impacts more than offset plus 1.6 percentage points of growth across the rest of the business. Year-to-date, adjusted operating income was down almost 10%. Excluding the year-over-year impact from infant formula, operating income grew almost 17%. Year-to-date, earnings per share declined $0.25, or 23%, including the impact from infant formula of $0.43 and the prior year discrete tax benefit of $0.09.

年初至今，有機淨銷售額下降了8.1%，其中包括嬰兒配方奶粉造成的已知負5.3 個百分點的影響，以及帕特里克剛剛提到的上呼吸道、止痛和睡眠輔助品類造成的負4.4 個百分點的影響。這些影響足以抵銷其他業務 1.6 個百分點的成長。今年迄今為止，調整後營業收入下降了近 10%。剔除嬰兒配方奶粉的年比影響，營業收入成長近 17%。年初至今，每股盈餘下降了 0.25 美元，即 23%，其中包括嬰兒配方奶粉 0.43 美元的影響和去年離散稅收優惠 0.09 美元的影響。

Looking at organic top-line performance by segment, starting with CSCI. Organic growth in the quarter was plus 1%. Lower seasonal demand and supply constraints in the upper respiratory and pain and sleep aid categories resulted in a 3.5 percentage point headwind versus the prior year. This was more than offset by strong growth of 4.5 percentage points across the rest of the segment, led by market share gains in key brands such as Compeed, ellaOne, and Paranix, in addition to high single-digit growth in our U.K. store brand business.

從 CSCI 開始，按細分市場查看有機營收表現。該季度的有機成長為+1%。上呼吸道、疼痛和睡眠輔助類別的季節性需求和供應限制減少，導致與前一年相比下降了 3.5 個百分點。這被其他細分市場 4.5 個百分點的強勁成長所抵消，主要品牌包括 Compeed、ellaOne 和 Paranix 等主要品牌的市佔率成長，以及我們英國商店品牌業務的高個位數成長。

In CSCA, organic net sales declined 15% due to minus 10.8 percentage points from infant formula and minus 4.4 percentage points from the upper respiratory and pain and sleep aids category. Organic net sales included a reduction of 1.8 percentage points from the final tranche of SKU prioritization actions to increase margins. Growth across the rest of this segment was flat. And importantly, our OTC brands grew more than 40%, driven by Opill, Nasonex, and Naderma.

在 CSCA 中，有機淨銷售額下降了 15%，因為嬰兒配方奶粉銷售額下降了 10.8 個百分點，上呼吸道、止痛和睡眠輔助品類下降了 4.4 個百分點。有機淨銷售額包括較最後一批 SKU 優先行動減少 1.8 個百分點，以提高利潤。該細分市場其餘部分的成長持平。重要的是，在 Opill、Nasonex 和 Naderma 的推動下，我們的 OTC 品牌成長了 40% 以上。

Margin expansion has been a tough focus for our team. As you can see on this slide, this focus has translated to meaningful margin improvement over the past couple of years, and we remain on track to achieve our operating margin target of 14% to 16% by the end of 2024. In Q2, gross and operating margin expanded 190 and 160 basis points, respectively. These were driven primarily by accretive benefits from our Supply Chain Reinvention Program, including the SKU prioritization action we just discussed and Project Energize.

利潤擴張一直是我們團隊關注的重點。正如您在這張幻燈片中看到的那樣，這種關注在過去幾年中已轉化為有意義的利潤率改善，並且我們仍然預計在2024 年底之前實現14% 至16% 的營業利潤率目標。第二季度，毛利率和營業利潤率分別擴大了 190 和 160 個基點。這些主要是由我們的供應鏈重塑計劃帶來的增值效益所推動的，包括我們剛剛討論的 SKU 優先行動和 Project Energize。

Also worth highlighting is the sequential progress of margins. Both gross and operating margins expanded more than 400 basis points quarter-over-quarter. As I just mentioned, second quarter earnings per share of $0.50 declined $0.10 versus prior year. This change included discrete tax benefits in the prior year quarter and the impact from infant formula.

另外值得強調的是利潤率的持續進展。毛利率和營業利潤率較上季成長超過 400 個基點。正如我剛才提到的，第二季每股收益為 0.50 美元，比去年同期下降了 0.10 美元。這項變更包括去年同期的離散稅收優惠以及嬰兒配方奶粉的影響。

Moving to cash. Our cash on the balance sheet at the end of the second quarter was $543 million, not including upfront proceeds of $205 million received from the divestiture of the Rare Disease business completed on July 10, 2024. Year-to-date operating cash flow was $8 million, as cash generated from the business was mostly offset by, first, $40 million of restructuring costs primarily related to Project Energize and second, from the shareholder lawsuit we settled last quarter. As a reminder, we expect a full recovery of these $97 million from insurance still during 2024.

轉向現金。截至第二季末，我們資產負債表上的現金為 5.43 億美元，不包括 2024 年 7 月 10 日完成的罕見疾病業務剝離所收到的 2.05 億美元預付款。年初至今的營運現金流為 800 萬美元，因為該業務產生的現金大部分被主要與 Energize 項目相關的 4,000 萬美元重組成本所抵消，其次是我們上季度和解的股東訴訟所抵消。提醒一下，我們預計 2024 年仍能從保險中全額收回這 9,700 萬美元。

During this quarter, we invested $29 million in capital expenditures and returned $38 million to shareholders through dividends. We continue to anticipate operating cash flow conversion for the full year of 90% to 100% as a percentage of adjusted net income. In total, our estimated ending cash balance for 2024 remains between $500 million to $550 million, including the expected recovery of the $97 million shareholder settlement. And as committed, we continue to expect a net leverage ratio of approximately 3.8 to 4 times at year-end.

本季度，我們投資了 2,900 萬美元的資本支出，並透過股息向股東返還 3,800 萬美元。我們繼續預期全年經營現金流量轉換佔調整後淨利的百分比為 90% 至 100%。總體而言，我們預計 2024 年期末現金餘額仍將維持在 5 億至 5.5 億美元之間，其中包括預計收回的 9,700 萬美元股東和解金。按照承諾，我們繼續預期年底淨槓桿率約為 3.8 至 4 倍。

Turning to our 2024 outlook. We're increasingly optimistic about our infant formula business. Our global branded portfolio continues to perform well, and we expect a normal sell-in for the upcoming '24-'25 cough and cold season. However, we updated our 2024 net sales growth outlook versus the prior year. While this does not impact our EPS outlook, we now expect organic net sales to decline in the range of 1% to 3% and all-in net sales to decline in the range of 3% to 5%.

轉向我們的 2024 年展望。我們對嬰兒配方奶粉業務越來越樂觀。我們的全球品牌組合繼續表現良好，我們預計即將到來的「24-25 年咳嗽和感冒季節」將出現正常銷售。不過，我們更新了 2024 年淨銷售額成長預期。雖然這不會影響我們的每股盈餘預期，但我們現在預計有機淨銷售額將下降 1% 至 3%，總淨銷售額將下降 3% 至 5%。

These updated net sales ranges imply a 4-percentage-point change in the midpoint to our previous net sales outlook. This is due to two primary factors. First, 2.5 percentage points from our second quarter results stemming from lower global seasonal demand and US retailer destocking. And second, 1.5 percentage points from US store brand due primarily to the business we walked away from, which Patrick discussed. As a reminder, we expect this 1.5-percentage-point net sales headwind to our 2024 outlook from US store brand to be offset with new business wins, leading to no impact to top line growth in 2025.

這些更新後的淨銷售額範圍意味著我們先前的淨銷售額預期中點發生了 4 個百分點的變化。這是由於兩個主要因素。首先，由於全球季節性需求下降和美國零售商去庫存，我們第二季的表現下降了 2.5 個百分點。其次，來自美國商店品牌的 1.5 個百分點主要是因為我們放棄了帕特里克討論過的業務。提醒一下，我們預計美國商店品牌對我們 2024 年前景的 1.5 個百分點的淨銷售阻力將被新業務的勝利所抵消，從而不會對 2025 年的營收成長產生影響。

Pulling this together, and as just noted, the P&L impact from the updated net sales outlook is expected to be offset by improved gross margin expansion and lower variable expenses this year. This gives us confidence to reaffirm our full year 2024 adjusted earnings per share outlook of $2.50 to $2.65. Interest expense, effective tax rate and operating cash flow conversion remain unchanged, and we now expect lower cash spend related to infant formula remediation. Our second half earnings per share is expected to be more than double our first half.

綜上所述，正如剛才所指出的，更新後的淨銷售前景對損益的影響預計將被今年毛利率擴張的改善和可變費用的降低所抵消。這讓我們有信心重申 2024 年全年調整後每股收益預期為 2.50 美元至 2.65 美元。利息支出、有效稅率和經營現金流量轉換保持不變，我們現在預計與嬰兒配方奶粉修復相關的現金支出將會減少。我們下半年的每股盈餘預計將是上半年的兩倍以上。

Let me provide some color here. There are three key drivers of this expected growth. First is the recovery of the infant formula business, starting with the absence of significant remediation costs, including extended client shutdowns that took place in this first half of the year. Next, the phasing of sales has always been weighted heavily to the back half, which you'll see drives a meaningful contribution for the balance of the year. Second, timing of Project Energize savings, of which we have already made significant from investments and have achieved the $53 million in gross savings year-to-date is expected to result in lower operating expenses in the second half. And finally, the contribution from the rest of the business, which is expected to increase slightly compared to the first half, driven by the seasonal cough and cold selling.

讓我在這裡提供一些顏色。這一預期成長有三個關鍵驅動因素。首先是嬰兒配方奶粉業務的復甦，首先是沒有重大補救成本，包括今年上半年發生的長期客戶關閉。接下來，分階段銷售始終在下半年佔據重要地位，您將看到這為今年剩餘時間帶來了有意義的貢獻。其次，Energize 計畫節省的時間安排，我們已經從投資中獲得了大量資金，今年迄今已實現了 5,300 萬美元的總節省，預計將導致下半年營運費用下降。最後，在季節性咳嗽和感冒銷售的推動下，其他業務的貢獻預計將比上半年略有增加。

In conclusion, I would like to extend my gratitude to the entire Perrigo team for their continued dedication. We remain confident in our ability to adapt, evolve and deliver long-term value for our stakeholders. Thank you for your time and continued trust in Perrigo.

最後，我要對整個 Perrigo 團隊的持續奉獻表示感謝。我們對自己適應、發展和為利害關係人提供長期價值的能力充滿信心。感謝您的寶貴時間以及對 Perrigo 的持續信任。

And now I will turn the call back to Brad. Brad?

現在我將把電話轉回給布拉德。布拉德？

Thank you, Eduardo. Operator, can we please open the call for questions?

謝謝你，愛德華多。接線員，我們可以打開電話提問嗎？

(Operator Instructions) Chris Schott, JPMorgan.

（操作員指示）Chris Schott，摩根大通。

Congrats on the progress here in nutritionals. I had a couple of questions on this lost customer. So maybe just can you elaborate a little bit more what happened here? It sounds like this wasn't a very profitable business you walked away from. But are there any particular segments within CSCA that we should be watching here?

祝賀營養學方面的進展。我對這位流失的客戶有幾個問題。那麼也許您可以詳細說明一下這裡發生的事情嗎？聽起來你放棄的這並不是一項非常有利可圖的業務。但是 CSCA 中是否有我們應該關注的特定部分？

And maybe the second part of the question there was, I just want to make sure I caught the comment regarding the impact on 2025. It sounds like wins elsewhere will offset the business you lost, but just maybe talk a little bit about the margin profile of that new business versus what you lost. So just a little bit more color on that front, and I just have one follow-up after that.

也許問題的第二部分是，我只是想確保我聽到了 2025 年影響的評論。聽起來其他地方的勝利會抵消你失去的業務，但也許只是談論新業務與你失去的業務的利潤狀況。因此，只需在前面多一點顏色，之後我就進行一個後續操作。

Chris, this is Patrick. I hope you're well. Thank you for the question. This was a margin-dilutive business. We looked at it very carefully. It was one customer. It was several molecules of subcategories. And we're reporting it because really it was a one-off. It was impactful in terms of revenue, but positive in terms of margin expansion.

克里斯，這是派崔克。我希望你一切都好。謝謝你的提問。這是一項會稀釋利潤的業務。我們非常仔細地觀察了它。這是一位顧客。它是幾個子類別的分子。我們之所以報道這起事件，是因為這確實是一次性事件。這對收入產生了影響，但對利潤率擴張也產生了積極影響。

And then you're right to pick up on the other points. Our net gain, we have a net gain in contract won this year in our store brand business. And we'll start to see that revenue flowing in late quarter 4, but more predominantly in '25. So net, we're not seeing any change in revenue outlook as a result of the loss of that more unprofitable customer. And you're correct again to say that the businesses won versus that business lost is more margin accretive, yes.

然後你就可以理解其他觀點了。我們的淨收益，我們今年在商店品牌業務中贏得的合約獲得了淨收益。我們將開始看到第四季末的收入流動，但更主要在 25 年。因此，我們沒有看到收入前景因失去更無利可圖的客戶而發生任何變化。你說得對，贏的企業比輸的企業更能增加利潤，是的。

Okay. Very helpful. And then just my last question was just on the nutritional business. It seems like you're making good progress here. But just at this stage, how confident are you that you're fully through this process and that there won't be any meaningful setbacks in terms of the recovery in nutritionals? I mean, at this point, are you confident to say that the remediation that was put forth was successful and that this business is kind of in a good place going forward?

好的。非常有幫助。我的最後一個問題是關於營養產業的。看起來你在這裡取得了很大的進步。但就在這個階段，您對自己已經完全完成這個過程並且在營養恢復方面不會出現任何有意義的挫折有多大信心？我的意思是，此時此刻，您是否有信心說所提出的補救措施是成功的，並且該業務的未來發展勢頭良好？

Yes. I've been very close to the remediation work. As you know, I chair the steering committee. The remediation work has been executed extremely well across the three sites. All the key performance indicators show that we are fully quality compliant. I've not seen any backslide in terms of those KPIs as we've been through the remediation effort, and we're on the other side of that. So really now, it is into normal manufacturing operations, but in a much more quality compliant way.

是的。我已經非常接近修復工作了。如您所知，我擔任指導委員會主席。三個地點的修復工作都執行得非常好。所有關鍵績效指標都顯示我們完全符合品質標準。我沒有看到這些 KPI 出現任何倒退，因為我們已經完成了補救工作，而且我們處於另一邊。所以現在，它已經進入正常的製造運營，但以更符合品質的方式進行。

And Chris, just to add a little bit color there. So the team now is 100% focused on recovering the share on our store brand business as well as growing the other pieces of the business that were impacted. So that's 100% now with the situation more under control from the production and release the payment side. It's the team, 100% now focused on the market side to regain the business and working closely with our customers to get products back on shelf.

克里斯，只是為了增加一點色彩。因此，團隊現在 100% 專注於恢復我們商店品牌業務的份額以及發展受到影響的其他業務。現在情況已經100%了，生產方面的情況得到了更多的控制，支付方面也得到了釋放。現在，我們的團隊 100% 專注於市場方面，以重新獲得業務，並與我們的客戶密切合作，使產品重新上架。

Perfect. And then just as a follow-up on that one. In terms of the share regain, and any pushback at all from customers? Or so far, is that product you're producing kind of finding a home, I guess, in terms of customers?

完美的。然後作為該事件的後續行動。就份額恢復而言，客戶是否有任何阻力？或者到目前為止，我猜你生產的產品是否在客戶方面找到了歸宿？

Yes. I mean, this continues to be a capacity-constrained industry, generally. And we're not having any problem repipelining our business.

是的。我的意思是，總的來說，這仍然是一個產能受限的行業。我們的業務重組沒有任何問題。

Korinne Wolfmeyer, Piper Sandler.

科琳·沃爾夫邁耶，派珀·桑德勒。

First, I'd like to touch on the guidance reduction. If I understand correctly, it looks like to be solely coming from that that SKU rationalization and then the upper respiratory. So can you confirm those are the main things driving that guidance reduction?

首先，我想談談指導意見的減少。如果我理解正確的話，它似乎完全來自於 SKU 合理化，然後是上呼吸道。那麼您能否確認這些是導致指導意見減少的主要因素？

And then on the SKU rationalization, can you comment on how quick of a decision that was? Because it obviously wasn't factored into expectations last quarter. And then what gives you confidence that we might not see another -- you might not have to have another guidance reduction for further SKU rationalization this year?

關於 SKU 合理化，您能否評論一下這個決定有多快？因為上季的預期顯然沒有考慮到這一點。那麼，是什麼讓您相信我們可能不會再看到另一個問題——今年您可能不必為進一步的 SKU 合理化而再次下調指導值？

Yes. Eduardo here. Let me clarify. So the change in guidance that we talked at that midpoint is about 4 percentage points. 2.5 are related to mainly the impact that we saw in the second quarter, and that's mainly related to the lower global seasonal demand for cough and cold and allergy and some impact related to the US retailer destocking. While 1.5 comes from lower distribution in the US store brand. So when we talk about the SKU rationalization, that was already considered as part of our plan. So the 4 percentage points reduction on our full year guidance are related to those two impacts, 2.5% and 1.5%, okay?

是的。愛德華多在這裡。讓我澄清一下。因此，我們在中點談到的指引變化約為 4 個百分點。 2.5主要與我們在第二季度看到的影響有關，這主要與全球咳嗽、感冒和過敏的季節性需求較低以及與美國零售商去庫存有關的一些影響有關。而1.5則來自於美國商店品牌的較低分銷。因此，當我們談論 SKU 合理化時，這已經被視為我們計劃的一部分。因此，我們全年指引的 4 個百分點的減少與這兩個影響有關，即 2.5% 和 1.5%，好嗎？

Got it. That's helpful. And then can you touch on expectations into 2025? I know you're not guiding that far out, but you have previously laid out some commentary on how to think about 2025. With the top-line impacts we're seeing, but offset in the P&L, is there any reason that 2025 expectations, would it still be intact with the number you delivered today?

知道了。這很有幫助。那麼您能談談對 2025 年的期望嗎？我知道您的指導並沒有那麼遠，但您之前已經就如何思考 2025 年提出了一些評論。鑑於我們看到的營收影響，但在損益表中被抵消，2025 年的預期是否仍能與您今天交付的數字保持一致？

Yes. So again, it's still early in the process, and we're seeing a lot of industry dynamics, mainly on consumer demand being significantly impacted. But at this stage, you remember, as we have positioned before, we expect, of course, the significant impact we had in the first half of infant formula to not repeat. So we expect a significant portion of that being recovered.

是的。再說一遍，現在還處於早期階段，我們看到了很多行業動態，主要是消費者需求受到了重大影響。但在這個階段，你記得，正如我們之前所定位的那樣，我們當然希望我們在嬰兒配方奶粉上半年所產生的重大影響不會重複。因此，我們預計其中很大一部分將得到恢復。

And at the same time, remember, we mentioned that we would recover that, but also we needed to build some finished goods safety stock. So I would say a significant portion of the impact that we mentioned that took place in the first half of 2024 should be recovered in 2025, which also implies that the product will benefit from the price increases that we had in 2023. That's number one.

同時，請記住，我們提到我們將恢復這一點，但我們也需要建立一些成品安全庫存。因此，我想說，我們提到的 2024 年上半年發生的影響的很大一部分應該會在 2025 年恢復，這也意味著該產品將受益於 2023 年的價格上漲。這是第一名。

It's going to be very important to understand how consumption and also the upcoming cough and cold selling season takes place, right? Because we saw a very significant impact to the whole industry in the first half. So that's going to be a very important item that we're going to be taking a look.

了解消費以及即將到來的咳嗽和感冒銷售季節的情況非常重要，對嗎？因為上半年我們看到對整個產業的影響非常大。所以這將是我們要研究的一個非常重要的項目。

And also, remember that we mentioned before, we continue to expect Opill to be dilutive for the next -- for the first -- since the launch until the next 18 months. So those are the three key factors that we're looking right now, but it's fair to assess right now that we mentioned in the previous quarter that would be $3 plus, and that's what we're looking right now.

另外，請記住我們之前提到過，我們仍然預計 Opil 自推出以來直到接下來的 18 個月將在下一次（第一次）中稀釋。這些是我們現在正在尋找的三個關鍵因素，但現在可以公平地評估我們在上一季提到的 3 美元以上，這就是我們現在正在尋找的。

Great. And then if I could squeeze in one more on Opill. Can you provide a little bit of color around the sell-in versus sell-out differential that you're seeing? We're able to get some scanner data, and it doesn't fully align with your previous comments on the sales you've been recognizing.

偉大的。然後我是否可以在 Opil 上再擠一張。您能否提供一些有關您所看到的賣出與賣出差異的資訊？我們能夠獲得一些掃描器數據，但它與您先前對您所認可的銷售的評論並不完全一致。

And I understand there's also a heavy DTC component that's not factored in the data we get. But any color you can provide on what you're seeing versus sell-in and sell-out?

據我了解，還有一個重要的 DTC 元件未計入我們獲得的資料中。但是你能提供你所看到的與賣出和賣出的顏色對比嗎？

Yes, this is Patrick. So very good sell-in, very good distribution. Obviously, a new consumer, a new category. We're learning and refining the model. I would say 30% to 40% of our sales are on e-commerce. Obviously, that channel lends itself to subscribe and save, and we're seeing that. Key learnings, probably shifting media more to awareness generation, how to operationalize the insurance support that we have with Caremark. We're working through that. That is significant additional volume opportunity for us.

是的，這是派崔克。所以銷售量非常好，分銷也非常好。顯然，這是一個新的消費者，一個新的類別。我們正在學習和完善該模型。我想說我們 30% 到 40% 的銷售額來自電子商務。顯然，該頻道適合訂閱和保存，我們也看到了這一點。重要的經驗教訓，可能會將媒體更多地轉向意識生成，如何運作我們與 Caremark 一起提供的保險支援。我們正在解決這個問題。這對我們來說是一個重要的額外銷售機會。

We're learning as well sort of back to the future that having retail distribution is not sufficient. Those retailers that are supporting the brand launch with incremental display clear signage are seeing a materially different sell-through rate. We want to get that executed across all retailers. It's very important for the category and the consumer.

回到未來，我們也意識到僅擁有零售分銷是不夠的。那些透過增量顯示清晰標牌來支持品牌發布的零售商看到了截然不同的銷售率。我們希望所有零售商都能執行這項措施。這對於該品類和消費者來說非常重要。

And lastly, continuing to develop our social influencing, our HCP network. The role of HCPs and the conversion to this is extremely important, given some of the broad considerations the consumer has in terms of safety, side effects, effectiveness, et cetera. And so we continue to see good awareness build. We continue to see sales growth. We've just gone through a critical milestone in terms of share. So we're learning and improving. This was never going to be optimized day 1, but I'm actually quite pleased with our ability now to read and react and enhance our marketing execution.

最後，繼續發展我們的社會影響力，即我們的 HCP 網絡。考慮到消費者在安全性、副作用、有效性等方面的一些廣泛考慮，HCP 的作用以及對此的轉變極為重要。因此，我們繼續看到良好的意識正在建立。我們繼續看到銷售成長。我們剛剛在份額方面經歷了一個重要的里程碑。所以我們正在學習和改進。這永遠不會在第一天得到優化，但我實際上對我們現在閱讀、反應和增強行銷執行的能力感到非常滿意。

Daniel Biolsi, Hedgeye.

丹尼爾‧比奧爾西，《樹籬》。

Thank you. So for the infant formula, my anecdotal evidences, your demand certainly exceeds your supply. Did you lose any shelf space? And when do you plan on being able to build safety stock? Can you do that without losing shelf space?

謝謝。因此，對於嬰兒配方奶粉，我的軼事證據表明，您的需求肯定超過了供應。您是否損失了任何貨架空間？您計劃什麼時候建立安全庫存？您能在不損失貨架空間的情況下做到這一點嗎？

Well, so we're looking to how much can we start doing in 2024, but I think that's going to be very difficult given that there's still a lot of demand for store brand products in the marketplace. So we're seeing that more to take place in the first half of 2025.

好吧，所以我們正在考慮在 2024 年我們可以開始做多少事情，但我認為這將非常困難，因為市場上對商店品牌產品的需求仍然很大。因此，我們預計 2025 年上半年將會發生更多事情。

Okay. And then one other question. Do you have any plans to reduce your inventories of phenylephrine ahead of a possible FDA decision, like a competitor announced?

好的。然後還有一個問題。在 FDA 可能做出決定之前，您是否有計劃減少去氧腎上腺素的庫存，就像競爭對手宣布的那樣？

Sorry, could you repeat? The inventories of what?

抱歉，您能再說一次嗎？庫存什麼的？

Phenylephrine.

去氧腎上腺素。

No. understood what the FDA said. It's not in force or legal requirements, and there still continues to be demand for those products. So we continue to supply it. And no, we've not made a tactical decision to reduce that inventory while we continue to see good demand.

不，明白 FDA 所說的內容。它尚未生效或沒有法律要求，但對這些產品的需求仍然存在。所以我們繼續供應。不，我們還沒有做出減少庫存的戰術決定，同時我們仍然看到良好的需求。

And I would say that phenylephrine-based products -- so irrespective of what happens here, the great majority of consumers, of course, will use alternative products. And there tends to be a less profitable category for us anyway. So no plans, and we see it as potentially positive as people move to different formulations.

我想說的是基於去氧腎上腺素的產品 - 因此無論這裡發生什麼，絕大多數消費者當然都會使用替代產品。無論如何，對我們來說往往有一個利潤較低的類別。所以沒有計劃，我們認為隨著人們轉向不同的配方，這可能是積極的。

Okay. And then for the retailer inventory levels for cough and cold, does that require you to carry more if they're carrying less? Or do you think this is just sort of a onetime little reduction they've had in the last quarter or 2?

好的。然後，對於咳嗽和感冒的零售商庫存水平，如果他們攜帶較少，是否需要您攜帶更多？或者您認為這只是他們在上一兩個季度的一次小幅減少？

Yes, we're seeing that as more of a onetime, right? So I think what we're seeing is after a COVID situation and now that the industry per se has been adjusting that, so that's getting more into a normalized levels across the whole industry. And so it's going to be interesting, which on the other side means that probably for the cough and cold season, depending on how these start to shape up, there will be a need to replenish stocks in the third and the fourth quarter of the year.

是的，我們認為這更像是一次性的，對嗎？所以我認為我們看到的是在新冠疫情之後，現在產業本身已經在調整，整個產業正在進入正常化程度。因此，這將會很有趣，另一方面，這意味著可能在咳嗽和感冒季節，取決於這些情況如何開始發展，今年第三和第四季將需要補充庫存。

And that is all the questions that we have at this time. I would like to turn it back to our President and CEO, Patrick Lockwood-Taylor, for closing remarks.

這就是我們目前面臨的所有問題。我想請我們的總裁兼執行長 Patrick Lockwood-Taylor 致閉幕詞。

Yes. Thank you very much. Thank you for joining us today. Thank you for those questions. I know we have a number of calls later with you, which we look forward to.

是的。非常感謝。感謝您今天加入我們。謝謝你提出這些問題。我知道稍後我們會與您通電話，我們對此充滿期待。

So really, from my vantage point, I think we're on track with our key reliability and our cost-saving initiatives. We are set for revenue recovery in the second half, accelerating particularly in quarter four. Our earnings per share adjusted for last year's tax benefit and infant formula are a healthy plus 24% versus quarter two a year ago. Our US store brand business is a key focus for us, and we are forecasting growth for that, driven by the volume share growth we're seeing in that category and net new contract wins that are realized, as I mentioned, in late '24 and '25.

因此，實際上，從我的角度來看，我認為我們在關鍵可靠性和成本節約計劃方面已步入正軌。我們預計下半年營收將恢復，尤其是第四季會加速。根據去年的稅收優惠和嬰兒配方奶粉調整後，我們的每股收益比一年前第二季健康成長了 24%。我們的美國商店品牌業務是我們的重點關注點，正如我所提到的，我們預計該業務將在24 年末實現增長，這是由我們在該類別中看到的銷量份額增長和淨新合約贏得所推動的和'25。

We are also accelerating the acquisition and development of world-class leadership and talent, which will also be a core driver for us going forward. So our business is stabilizing, and we can now turn more of our organizational capacity to accelerating more profitable growth being realized in '24 and of course, through to '25.

我們也正在加速收購和培養世界一流的領導力和人才，這也將成為我們前進的核心驅動力。因此，我們的業務正在穩定下來，我們現在可以將更多的組織能力用於加速在 24 年甚至到 25 年實現的利潤成長。

So net, it was a stabilizing six months for us, but now we're turned squarely back to growth. Thank you very much for joining us.

因此，淨而言，這對我們來說是穩定的六個月，但現在我們完全恢復了成長。非常感謝您加入我們。

Thank you. And ladies and gentlemen, this concludes today's conference call. Thank you all for participating. You may now disconnect.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。