Simply Good Foods Co (SMPL) 2024 Q2 法說會逐字稿

Greetings. Welcome to The Simply Good Foods Company Fiscal Second Quarter 2024 conference call.(Operator Instructions)

問候。歡迎參加 Simply Good Foods Company 2024 年第二季財年電話會議。（操作員說明）

Please note this conference is being recorded. I will now turn the conference over to Mark Pogharian, Vice President of Investor Relations. Thank you. You may begin.

請注意，本次會議正在錄製中。我現在將會議交給投資者關係副總裁馬克‧波加里安 (Mark Pogharian)。謝謝。你可以開始了。

Thank you, operator. Good morning. I'm pleased to welcome you to Simply Good Foods Company earnings call for the fiscal second quarter ended February 24th, 2024. Jeff Kanter, President and CEO, and Shaun Mara, CFO, will provide you with an overview of results, which will then be followed by a Q&A session. The company issued an earnings release this morning at approximately 7 A.M. Eastern time.

謝謝你，接線生。早安.我很高興歡迎您參加 Simply Good Foods Company 截至 2024 年 2 月 24 日的第二財季財報電話會議。總裁兼執行長 Jeff Kanter 和財務長 Shaun Mara 將為您提供業績概述，然後隨後是問答環節。該公司今天早上 7 點左右發布了財報。東部時間。

A copy of the release and accompanying presentation are available in the Investors section of the Company's website at w. w. w. dot Simply Good Foods Company.com. This call is being webcast and an archive of today's remarks will also be available.

新聞稿和隨附簡報的副本可在公司網站的投資者部分獲取，網址為：w。 w。 w。點 Simply Good Foods Company.com。這次電話會議正在網路直播，今天的演講檔案也將提供。

During the course of today's call, management will make forward-looking statements that are subject to various risks and uncertainties that may cause actual results to differ materially. The Company undertakes no obligation to update these statements based on subsequent events.

在今天的電話會議期間，管理層將做出前瞻性聲明，這些聲明受到各種風險和不確定性的影響，可能導致實際結果出現重大差異。本公司不承擔根據後續事件更新這些聲明的義務。

A detailed listing of such risks and uncertainties can be found in today's press release and in the Company's SEC filings. Note that on today's call, we will refer to certain non-GAAP financial measures that we believe will provide useful information for investors due to the Company's asset-light, strong cash flow business model.

此類風險和不確定性的詳細清單可在今天的新聞稿和公司向 SEC 提交的文件中找到。請注意，在今天的電話會議上，我們將提及某些非公認會計準則財務指標，我們相信這些指標將為投資者提供有用的信息，因為該公司擁有輕資產、強勁的現金流業務模式。

We evaluate our performance on an adjusted basis as it relates to EBITDA and diluted EPS. We have included a detailed reconciliation from GAAP to adjusted items in today's press release. We believe these adjusted measures are a key indicator of the underlying performance of the business. The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.

我們在調整後的基礎上評估我們的業績，因為它與 EBITDA 和稀釋每股收益相關。我們在今天的新聞稿中包含了 GAAP 與調整項目的詳細調整。我們相信這些調整後的指標是業務基本績效的關鍵指標。此資訊的呈現不應被孤立地考慮或作為根據 GAAP 呈現的財務資訊的替代品。

Please refer to today's press release for a reconciliation of the non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP and I'll turn the call over to Geoff Tanner, President and CEO.

請參閱今天的新聞稿，以了解非 GAAP 財務指標與根據 GAAP 制定的最具可比性指標的調整表，我會將電話轉給總裁兼執行長 Geoff Tanner。

Thank you, Mike. Good morning. Thank you for joining us today. I'll recap Simply Good Foods financial results and the performance of our brands. Then Sean will discuss our financial results in more detail before we wrap it up with a discussion of our fiscal 2024 outlook and your question Simply Good Foods second quarter results were led by continued quest growth as well as strong gross margin improvements.

謝謝你，麥克。早安.感謝您今天加入我們。我將回顧 Simply Good Foods 的財務表現和我們品牌的表現。然後，肖恩將更詳細地討論我們的財務業績，然後我們以 2024 財年展望和您的問題的討論作為結束語。Simply Good Foods 第二季度的業績是由持續的追求增長以及強勁的毛利率改善帶動的。

Net sales increased 5.3%, driven by volume and due to the timing of shipments last quarter outpaced retail takeaway of about 3%. Retail takeaway in measured channels was less than our expectation. E-commerce POS growth for both Quest and Atkins continued to be solid.

受銷量推動以及上季度發貨時間超過零售外賣約 3% 的推動，淨銷售額增長 5.3%。實測通路的零售外送低於我們的預期。 Quest 和阿特金斯的電子商務 POS 成長持續穩健。

Quest's retail takeaway was on track with our plan, driven by strong salty snacks growth. While Atkins performance was off versus our estimates, Akins had solid plans in place that was ultimately disadvantaged on two fronts during the quarter.

在鹹味零食強勁增長的推動下，Quest 的零售外賣正按照我們的計劃進行。雖然阿金斯的業績低於我們的預期，但阿金斯制定了可靠的計劃，但最終在本季度的兩個方面都處於不利地位。

First, it lapped a onetime merchandising and promotional benefit that it had in the 2023 new year new you season due to the out-of-stock challenges of a category participant and second and the 2024 new year new year's season.

首先，由於品類參與者面臨缺貨挑戰，它在 2023 年新年新年季中獲得了一次性的商品和促銷效益，其次是 2024 年新年新年季。

This category participants had adequate supply to service its base business we have been layered in extensive merchandising programs and promotions during the season, which greatly reduce the overall in-store share of voice for the Atkins brand and others in March as we exited the new year new year's season and moved past the difficult lap Atkins trends improved more on that in a bit.

該類別參與者有足夠的供應來服務其基本業務，我們在本季進行了廣泛的銷售計劃和促銷活動，這大大降低了阿特金斯品牌和其他品牌在新年結束後三月份的整體店內份額。新的一年賽季，克服了困難的一圈，阿特金斯趨勢在這方面有了更多的改善。

We were very pleased with the Q2 gross margin of 37.4%. The 280 basis point increase versus the year-ago period was primarily due to lower ingredient and packaging costs. Higher gross profit enabled investments in our business and an increase in Q2 adjusted EBITDA of 13.6% to $57.8 million.

我們對第二季 37.4% 的毛利率感到非常滿意。與去年同期相比增加 280 個基點主要是因為原料和包裝成本下降。更高的毛利促進了我們業務的投資，第二季調整後 EBITDA 成長了 13.6%，達到 5,780 萬美元。

However, due to the softer than anticipated Q2 Atkins consumptions trends we have updated our full year fiscal 2024 outlook. We expect net sales to increase around the midpoint of the Company's long-term algorithm of 4% to 6%, including the benefit of a 53rd week.

然而，由於阿特金斯第二季消費趨勢低於預期，我們更新了 2024 財年全年展望。我們預計淨銷售額將在公司長期演算法的中點左右成長 4% 至 6%，其中包括第 53 週的收益。

We previously expected net sales to increase at the high end of the long-term algorithm. We continue to expect solid gross margin expansion and adjusted EBITDA is now anticipated to increase 6% to 8%, driven by solid gross margin expansion.

我們此前預計淨銷售額將在長期演算法的高端增加。我們繼續預期毛利率將穩健成長，在毛利率穩健成長的推動下，調整後的 EBITDA 目前預計將成長 6% 至 8%。

Let me now turn to Quest. In Q2. Retail takeaway in measured channels increased 13.1% growth was solid across the key product forms and retail channels, driven by an increase in both household penetration and buy rate. In Q2, we estimate total unmeasured channel retail takeaway increased about 10% as e-commerce strength was partially offset by softness in specialty channels.

現在讓我談談 Quest。在第二季。在家庭滲透率和購買率提高的推動下，受測通路的零售外送成長了 13.1%，主要產品形式和零售通路的成長均較為穩健。第二季度，我們估計未衡量的通路零售外送總額增加了約 10%，因為電子商務的強勢被專業通路的疲軟部分抵消。

Quest's Q2 e-commerce POS remained solid and increased about 14%. For perspective, total unmeasured channels in Q2 were nearly 24% of total Quest retail sales quoted by and snacks retail takeaway in measured channels increased 6% and 21%, respectively, were particularly pleased with our salty snacks POS growth of about 40%, which was a standout in the category and now represents about 25% of Quest's retail sales.

Quest 第二季電子商務 POS 保持穩健，成長約 14%。從角度來看，第二季的未計量通路總額佔Quest 零售總額的近24%，計量通路中的零食零售外送分別成長了6% 和21%，尤其令我們滿意的是鹹味零食POS 成長約40%，這是該類別的佼佼者，目前約佔 Quest 零售額的 25%。

Additionally, we continue to see new Quest consumers coming into the brand via chip and then trying our other products such as bars, cookies or confections.

此外，我們不斷看到新的 Quest 消費者透過晶片進入該品牌，然後嘗試我們的其他產品，如巧克力棒、餅乾或糖果。

The success of Quest chips continues to be a proof points of the brand's ability to extend beyond its core and disrupt other large snacking categories where we can offer high-protein low-sugar and great tasting options for consumers over the remainder of the year, we continue to expect low double digit POS growth and continued household penetration and buy rate gain driven by innovation, distribution and the new marketing campaign.

Quest 薯片的成功繼續證明該品牌有能力超越其核心並顛覆其他大型零食類別，我們可以在今年剩餘時間內為消費者提供高蛋白、低糖和美味的選擇，我們繼續預計POS 將保持兩位數的低成長，並在創新、分銷和新的行銷活動的推動下持續實現家庭滲透率和購買率的成長。

In March, we announced the launch of a new advertising campaign entitled. It's basically cheating campaign features Academy Award and Emmy nominated rider actor and comedian to mall. Now Johnny play fully and strategically delivers a core campaign idea that Quest products, I saw good tasting better for you that it basically feels like choosing Quest has been one of the most innovative brands in the category and is supported by a best-in-class R&D team.

三月份，我們宣布啟動一項名為「。」的新廣告活動。這基本上是欺騙奧斯卡獎和艾美獎提名的騎手演員和喜劇演員到商場的活動。現在，Johnny 充分發揮並策略性地傳達了一個核心活動理念：Quest 產品，我看到更好的味道，讓您感覺選擇Quest 是該類別中最具創新性的品牌之一，並獲得了一流品牌的支持。研發團隊。

Multiyear pipeline is strong, and we expect innovation to be a lever of growth for a long time. In March, we launched strawberry frosted cookies and one of my favorites iced coffee. This 10 gram protein Pack 10 ounce drink at minimal sugar, only 90 calories and 200 milligrams of caffeine today.

多年的管道很強大，我們預計創新將在很長一段時間內成為成長的槓桿。三月份，我們推出了草莓磨砂餅乾和我最喜歡的冰咖啡之一。這款 10 克蛋白質裝 10 盎司飲料含糖量極低，僅含 90 卡路里熱量和 200 毫克咖啡因。

I'm also excited to announce a new bike shop platform for the fall of 2024. As we've seen with Chip, this is an opportunity to disrupt a large snacking category, sweet baked goods with high protein, low sugar and great tasting muffins and a brownie like Quest chip.

我還很高興宣布將於 2024 年秋季推出一個新的自行車商店平台。正如我們在 Chip 上看到的那樣，這是一個顛覆大型零食類別、高蛋白、低糖甜烘焙食品和美味鬆餅的機會還有像Quest 薯條的布朗尼蛋糕。

We believe this new platform will bring new consumers to the active nutrition category and expand by rate through another usage occasion based on conversations with key retail customers, we expect very strong support for the launch that will also be underpinned by a comprehensive marketing plan as part of the it's basically cheating campaign.

我們相信這個新平台將把新的消費者帶入活性營養類別，並透過基於與主要零售客戶的對話的另一個使用場合來擴大價格，我們預計對這一發布的大力支持也將得到全面營銷計劃的支持這基本上是作弊活動。

Turning to action, Q2 retail takeaway in the IRI MULO plus C-store universe and the combined measured and unmeasured channels was off 11% and 8%, respectively. Strong e-commerce growth continued driven by Amazon with POS growth was 13% in Q1, e-commerce was nearly 17% of total actions.

轉向行動，第二季 IRI MULO 加上便利商店領域以及已測和未測通路的零售外賣量分別下降了 11% 和 8%。亞馬遜持續推動電子商務強勁成長，第一季 POS 成長 13%，電子商務佔總交易量的近 17%。

Retail sales up from 11% only three years ago, e-commerce retail sales are over $2 million to a week, driven by a mix of new consumers and some heavy users, but and migrating to this channel from brick and mortar and performance in brick and mortar channels was softer than expected.

零售額僅從三年前的 11% 上升，在新消費者和一些重度用戶的共同推動下，電子商務每週零售額超過 200 萬美元，但從實體店和實體店的表現轉向這一渠道迫擊砲通道比預期的要軟。

This was primarily due to greater than anticipated in-store competitive merchandising and programming that also impacted several other brands. As I noted earlier last year, actions received incremental onetime merchandising and promotional support due to the supply challenges of a category participant, which is why the 2024 new year new year was a challenging headwind.

這主要是由於店內競爭性推銷和節目超出預期，這也影響了其他幾個品牌。正如我去年早些時候指出的那樣，由於類別參與者的供應挑戰，行動獲得了增量一次性銷售和促銷支持，這就是為什麼 2024 年新年是一個具有挑戰性的逆風。

However, as you'll note in the chart in the middle of the slide, as we exited the new year new you season retail takeaway trends have improved over the remainder of the year, we expect a more normalized level of competitive in-store merchandising and programming.

然而，正如您在幻燈片中間的圖表中註意到的那樣，隨著我們退出新年新季，零售外賣趨勢在今年剩餘時間內有所改善，我們預計競爭性店內銷售將達到更加正常化的水平和程式設計.

We also have a strong advertising plan in place and are excited about the quality of the new products we will soon bring to market. Therefore, we anticipate full year fiscal year 2024 combined measured and unmeasured channel POS to be off around 7% versus our previous estimate of 3% to 4%.

我們還制定了強有力的廣告計劃，並對我們即將推向市場的新產品的品質感到興奮。因此，我們預計 2024 財年全年的已測和未測通路 POS 總量將下降 7% 左右，而我們先前的估計為 3% 至 4%。

We continue to have tremendous faith in the long-term potential of the brand, especially given the increased cultural relevance and conversation about weight wellness. We continue to make progress against the five point revitalization plan we've talked about on previous calls.

我們仍然對該品牌的長期潛力充滿信心，特別是考慮到文化相關性和關於體重健康的討論不斷增加。我們繼續在先前的電話會議中討論的五點振興計劃方面取得進展。

However, as you may recall, is going to take time before all the elements of the plan are collectively in the marketplace. I'm particularly pleased with the progress we're making in accelerating innovation, which is a critical driver of business performance.

然而，您可能還記得，該計劃的所有要素都需要時間才能集中在市場上。我對我們在加速創新方面取得的進展感到特別滿意，這是業務績效的關鍵驅動力。

As previously stated, a lack of quality innovation has been a headwind to Atkins performance, but getting this back on track has been a focus area for us. Significant improvements we've made should enable us to have 15 new product launches in calendar year 2024 across all product forms.

如前所述，缺乏品質創新一直是阿特金斯績效的一個阻力，但讓其重回正軌一直是我們的重點領域。我們所做的重大改進將使我們能夠在 2024 年推出 15 款涵蓋所有產品形式的新產品。

At the bottom of this slide, I'd like to point out at strong high protein shake developed specifically for consumers on a weight loss drug off the shelf is just seeking higher levels of protein for consumers experience, rapid weight loss either through medications, surgery or dieting.

在這張幻燈片的底部，我想指出的是，專門為消費者開發的現成減肥藥的強效高蛋白奶昔只是為了讓消費者體驗更高水平的蛋白質，透過藥物、手術快速減肥或節食。

I protein levels are important to help maintain muscle mass and strong protein shakes delivered 30 grams of protein with one gram of sugar and have also been formulated with seven grams of prebiotic fiber to support gut health.

I 蛋白質含量對於幫助維持肌肉質量非常重要，強效蛋白質奶昔提供 30 克蛋白質和 1 克糖，還含有 7 克益生元纖維，以支持腸道健康。

This beneficial level of fiber is lacking in many RTD shakes in the market today and is a highly relevant nutrient for many folks on the new medication primary research continues to suggest that the Atkins approach can be an effective off-ramp for those who choose to transition off the medication. And we're working to optimize our communications to ensure the brand is seen as a way to maintain weight loss benefits after taking the drug.

當今市場上的許多即飲奶昔中都缺乏這種有益的纖維含量，並且對於許多新藥物的人來說，這是一種高度相關的營養素。初步研究繼續表明，阿特金斯方法可以成為那些選擇過渡的人的有效出路停藥。我們正在努力優化我們的溝通，以確保品牌被視為服用藥物後保持減肥效果的一種方式。

To summarize, Simply Good Foods is uniquely positioned as a U.S. leader in nutritional snacking. The nutritional snacking category is more relevant today than any other time as the conversation of health and wellness continues to increase. Furthermore, our category continues to be a standout versus many other center of store categories.

總而言之，Simply Good Foods 擁有獨特的定位，是美國營養零食的領導者。隨著健康和保健話題的不斷增加，營養零食類別在今天比以往任何時候都更加重要。此外，與許多其他中心商店類別相比，我們的類別仍然脫穎而出。

As such, we're leveraging our role as category advisor at most retailers and continue to work with our customers to develop and support initiatives in the IPO to further accelerate category growth with a particular focus on gaining more space, consumers trust our brands to help them achieve their wellness goals.

因此，我們正在利用我們在大多數零售商中作為品類顧問的角色，並繼續與我們的客戶合作，制定和支持IPO 中的舉措，以進一步加速品類增長，特別關注獲得更多空間，消費者相信我們的品牌可以幫助他們實現了自己的健康目標。

And we are accelerating our innovation and marketing plans to provide consumers with products to help them in their wellness journey. We will continue to execute our strategic priorities, focusing on doing the right thing for our customers and consumers that will enable us to deliver on our long-term growth objectives that ultimately drive increased shareholder value.

我們正在加快我們的創新和行銷計劃，為消費者提供幫助他們健康之旅的產品。我們將繼續執行我們的策略重點，專注於為我們的客戶和消費者做正確的事情，這將使我們能夠實現長期成長目標，最終提高股東價值。

Now I will turn the call over to Sean, who will provide you with some greater financial details.

現在我將把電話轉給肖恩，他將為您提供一些更詳細的財務細節。

Thank you, Jeff, and good morning, everyone. Total Simply Good Foods second quarter net sales of $312.2 million increased $15.6 million, or 5.3% versus the year-ago period and was driven by Quest volume growth. North America and international net sales increased 5.1% and 12.3%, respectively.

謝謝你，傑夫，大家早安。 Simply Good Foods 第二季淨銷售額為 3.122 億美元，與去年同期相比增加了 1,560 萬美元，即 5.3%，這主要得益於 Quest 銷售成長。北美和國際淨銷售額分別成長 5.1% 和 12.3%。

As Jeff stated earlier, as expected, net sales growth was greater than retail takeaway of about 3%, primarily due to the timing of shipments last quarter. Recall in Q1, POS growth of about 8% outpaced the net sales increase of nearly 3%.

正如 Jeff 之前所說，正如預期的那樣，淨銷售額增長高於零售額約 3%，這主要是由於上季度的發貨時間。回顧第一季，POS 成長約 8%，超過淨銷售額近 3% 的成長。

Moving on to other P&L items for the quarter, gross profit was $116.9 million, an increase of $14.1 million from the year-ago period, resulting in gross margin of 37.4%, the 280 basis point increase versus the year-ago period was primarily due to lower ingredient and packaging costs.

轉向本季其他損益項目，毛利為 1.169 億美元，較去年同期增加 1,410 萬美元，毛利率為 37.4%，較去年同期增加 280 個基點主要是由於以降低成分和包裝成本。

Adjusted EBITDA was $57.8 million, an increase of $6.9 million from the year-ago period. Selling and marketing expenses were $34.6 million versus $29.9 million, an increase of 15.7%, largely due to higher marketing investments in growth initiatives.

調整後 EBITDA 為 5,780 萬美元，比去年同期增加 690 萬美元。銷售和行銷費用為 3,460 萬美元，比 2,990 萬美元增長 15.7%，這主要是由於成長計劃的營銷投資增加。

Gaap G&A expenses were $29.9 million, an increase of $4 million versus last year, primarily due to higher employee related costs, stock-based compensation and corporate expenses. Excluding stock-based compensation, G&A increased $2.5 billion to $25.4 million.

Gaap G&A 費用為 2,990 萬美元，比去年增加 400 萬美元，主要是由於員工相關成本、股票薪酬和公司費用增加。不包括股票薪酬，G&A 增加了 25 億美元，達到 2,540 萬美元。

Finally, net interest income and interest expense were $4.7 million, a decline of $3.6 million versus Q2 last year. The decline was due to lower debt balances versus the year-ago period. Our Q2 tax rate was about 24% versus 25% in the year-ago period. As a result, net income was $33.1 million versus $25.6 million last year.

最後，淨利息收入和利息支出為 470 萬美元，比去年第二季減少 360 萬美元。下降的原因是債務餘額較上年同期減少。我們第二季的稅率約為 24%，而去年同期為 25%。結果，淨利潤為 3,310 萬美元，而去年為 2,560 萬美元。

Moving on to year-to-date results, net sales were $620.9 million, increasing about 4% versus last year. This is slightly below year-to-date retail takeaway in the combined measured and unmeasured channels, which has grown approximately 5.5%.

來看今年迄今的業績，淨銷售額為 6.209 億美元，比去年增長約 4%。這略低於年初至今在已衡量和未衡量通路中的零售額成長約 5.5%。

The difference is principally due to some incremental trade investment made in the first half of fiscal '24. That said, we expect POS growth and net sales growth to be largely in line for the full year, gross profit was $232 million, resulting in a gross margin of 37.4%, a 160 basis point increase versus the year ago period.

差異主要是由於 24 財年上半年的一些增量貿易投資所造成的。儘管如此，我們預計全年 POS 成長和淨銷售額成長將基本保持一致，毛利為 2.32 億美元，毛利率為 37.4%，較去年同期成長 160 個基點。

We have good visibility into supply chain cost over the remainder of the year and anticipate gross margin will continue to improve and could approach 39% in the second half of the year. Adjusted EBITDA was $119.8 million, an increase of 7.3% from the year ago period.

我們對今年剩餘時間的供應鏈成本有很好的了解，預計毛利率將繼續改善，下半年可能接近 39%。調整後 EBITDA 為 1.198 億美元，較去年同期成長 7.3%。

Net interest income and interest expense was $9.6 million, a decline of $5.7 million versus last year. Year-to-date tax rate was 24.1% versus 22.7% last year. We continue to anticipate the full year effective tax rate to be around 25%. As a result, net income was $68.7 million versus $61.5 million last year.

淨利息收入和利息支出為 960 萬美元，比去年減少 570 萬美元。年初至今稅率為 24.1%，去年為 22.7%。我們繼續預計全年有效稅率為 25% 左右。結果，淨利潤為 6,870 萬美元，而去年為 6,150 萬美元。

The next slide provides you with a reconciliation of reported and adjusted diluted EPS. Second quarter reported EPS was $0.33 per share diluted compared to $0.25 per share diluted for the comparable period of 2023.

下一張投影片為您提供了報告和調整後的稀釋每股盈餘的調節表。第二季攤薄後每股收益為 0.33 美元，而 2023 年同期攤薄後每股收益為 0.25 美元。

Adjusted diluted EPS was $0.4 compared to $0.32 in the year-ago period. Note that we calculate adjusted diluted EPS as adjusted EBITDA, less interest income, interest expense and income taxes. Please refer to today's press release for an explanation and reconciliation of non-GAAP financial measures.

調整後攤薄每股收益為 0.4 美元，去年同期為 0.32 美元。請注意，我們將調整後稀釋每股盈餘計算為調整後 EBITDA 減去利息收入、利息支出和所得稅。請參閱今天的新聞稿，以了解非公認會計原則財務指標的解釋和調節。

Moving to the balance sheet and cash flow. As of February 24, 2024, the company had cash of $135.9 million year to date, cash flow from operations was about $94 million, an increase of 76% or $40.6 million, principally due to adjusted EBITDA growth and improvements in working capital.

轉向資產負債表和現金流量。截至2024年2月24日，該公司年初至今擁有現金1.359億美元，營運現金流約9,400萬美元，成長76%或4,060萬美元，主要是由於調整後的EBITDA成長和營運資本的改善。

During the quarter, the company repaid $35 million of its term loan debt. And at the end of the second quarter, the outstanding principal balance was $240 million. Capital expenditures in Q2 and year-to-date period were $300,000 and $1.1 million, respectively, in fiscal 2024.

本季度，該公司償還了 3,500 萬美元的定期貸款債務。截至第二季末，未償本金餘額為2.4億美元。 2024 財年第二季和年初至今的資本支出分別為 30 萬美元和 110 萬美元。

We continue to expect CapEx to be in the $8 million to $10 million range in fiscal 2024. We anticipate net interest expense to be around $17 million to $19 million, including non-cash amortization expense related to the deferred financing fees.

我們仍預計2024 財年的資本支出將在800 萬美元至1,000 萬美元之間。我們預計淨利息支出將在1,700 萬美元至1,900 萬美元左右，包括與遞延融資費用相關的非現金攤提費用。

Not a wrap up, as Jeff stated earlier, due to softer than anticipated consumption trends in Q2, we updated our full year outlook. We continue to expect that ingredient and packaging costs will be lower in fiscal 2024 compared to last year and drive solid gross margin expansion.

正如傑夫之前所說，這並不是一個總結，由於第二季度的消費趨勢低於預期，我們更新了全年展望。我們仍預期 2024 財年的原料和包裝成本將低於去年，並推動毛利率穩健成長。

This provides for the flexibility to invest in marketing initiatives that we expect will drive near and long-term growth and generate solid earnings growth.

這為投資行銷舉措提供了靈活性，我們預計這些舉措將推動近期和長期成長並產生穩健的獲利成長。

Therefore, for full year fiscal 2024, we anticipate net sales growth driven by volume to increase around the midpoint of the Company's long-term algorithm of 46%, including the benefit of the 53rd week, adjusted EBITDA is now anticipated to increase 6% to 8% versus last year. We appreciate everybody's interest in our company, and we're now available to take your calls.

因此，對於 2024 財年全年，我們預期銷售驅動的淨銷售額成長將在公司長期演算法 46% 的中點附近成長，包括第 53 週的收益，調整後 EBITDA 目前預計將成長 6%，至與去年相比成長8%。我們感謝大家對我們公司的興趣，我們現在可以接聽您的電話。

Thank you. We will now be conducting a question and answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。 （操作員說明）

Matthew Smith, Stifel. Please proceed with your question.

馬修史密斯，斯蒂菲爾。請繼續你的問題。

Hi, good morning, Jeff and John. My morning. The overall active nutrition category growth slowed in the first calendar quarter of the year, and that's during the key diet season. You talked about the competitive dynamic impacting Quest and Atkins, but from a high level was the performance of the overall category in line with your expectations? And are you seeing any signs of a pickup in growth in the categories we move past March.

嗨，早上好，傑夫和約翰。我的早晨。今年第一季度，即關鍵飲食季節，活性營養品類的整體成長放緩。您談到了影響 Quest 和阿特金斯的競爭動態，但從高水準來看，整個類別的表現符合您的預期嗎？您是否看到我們三月之後的類別有任何成長回升的跡象？

And yes, now that the category continues to show strong growth certainly has slowed versus the past couple of years. If you look backwards, you see a bump coming out of COVID. And then you've had a lot of inflation driven growth.

是的，既然該類別繼續表現出強勁的成長，那麼與過去幾年相比肯定已經放緩。如果你回顧過去，你會發現新冠疫情帶來了衝擊。然後出現了很多通膨驅動的成長。

We're now back to around six or 7%, which is where the category was pre pre COVID. And additionally, it continues to be a standout category versus most of the same store, right? Where as you know, the volumes are flat and that reflects some underlying drivers of health and wellness trends, snacking and convenience. It's got low household penetration that we've talked about before and it over-indexes with younger consumers.

我們現在回到了大約 6% 或 7% 左右，這是該類別在新冠疫情之前的水平。此外，與同一家商店的大多數產品相比，它仍然是一個突出的類別，對吧？如您所知，銷量持平，這反映了健康和保健趨勢、零食和便利性的一些潛在驅動因素。我們之前談過，它的家庭滲透率較低，而且對年輕消費者的吸引力過高。

So we continue to be excited where the category is performing. It's right where we expected to be and retailers see that, too. That's why we're working with Thermo, how to how to even further accelerate that growth.

因此，我們對該類別的表現繼續感到興奮。這正是我們所期望的，零售商也看到了這一點。這就是我們與 Thermo 合作的原因，以及如何進一步加速這種成長。

Thank you, Jeff. And as a follow-up, the lowered revenue guidance includes a 7% reduction in POS for Atkins for the year. Does that outlook consider improving dollar consumption from here?

謝謝你，傑夫。作為後續措施，降低的收入指引包括阿特金斯今年的 POS 減少 7%。這種前景是否考慮從這裡改善美元消費？

Are you looking at dollar consumption for the Atkins brand and believing you can hold that level and then you benefit from easier comparisons in the second half of the year from a POS perspective that yes, that's what it is that obviously were disappointed how Atkins performed in January, February and obviously we will turn to some tough competitive merchandising comp.

您是否正在考慮阿特金斯品牌的美元消費，並相信您可以保持這一水平，然後從POS 的角度來看，您可以從今年下半年更容易的比較中受益，是的，這就是明顯對阿特金斯的表現感到失望的原因一月、二月，顯然我們將轉向一些具有競爭力的銷售競賽。

Yes, we still remain confident in the long-term vitality of the business. And as we look forward, we certainly have seen trends improve, have come out of January and February and certainly for the balance of the year, we did have easier comps and and that's why we expect the business to return more to that mid digit decline.

是的，我們仍然對業務的長期活力充滿信心。正如我們展望的那樣，我們當然已經看到趨勢有所改善，從一月和二月開始，當然在今年的剩餘時間裡，我們確實有更容易的比較，這就是為什麼我們預計業務將更多地恢復到中位數下降。

And that if you look at it by for Q3 and Q4 than Q3 is relatively in line with what we saw in Q2, slightly better in Q4 because we get some easier laps, as you said, overall. So we're not expecting drastic changes in the trajectory in the next X period of time.

如果你看一下第三季度和第四季度，那麼第三季度與我們在第二季度看到的情況相對一致，第四季度稍好一些，因為正如您所說，總體而言，我們獲得了一些更容易的圈數。因此，我們預計未來 X 段時間軌跡不會發生巨大變化。

Thank you over there.

謝謝你那邊。

Thank you.

謝謝。

Alexia Howard, Bernstein. Please proceed with your questions.

亞歷克西婭·霍華德，伯恩斯坦。請繼續回答您的問題。

Good morning, everyone. Morning and again, just a couple of quick questions here. You've got innovation stepping up and it feels as though we've been through a few cycles of innovation over the last few years, some of which probably work some of which has and what metrics do you use to make sure innovation is successful and sustainable in the marketplace and how do you track that overtime to make sure that you're calling things that aren't going to work and obviously supporting things that are?

大家，早安。早安，這裡只是幾個簡單的問題。創新不斷加強，感覺好像我們在過去幾年中經歷了幾個創新周期，其中一些可能有效，其中一些已經有效，以及您使用哪些指標來確保創新成功，以及市場上的可持續​​發展以及您如何跟踪加班以確保您調用那些不起作用的東西並明顯支持那些起作用的東西？

Yes, Alexia, I'd probably point to the innovation on Quest, which has been a standout and a major driver of growth and very successful on. If you look at chips, for example, we see 40% growth on that business and it continues to be highly incremental, and we are excited about the bike shop platform that we have coming up.

是的，Alexia，我可能會提到 Quest 的創新，它是一項出色的創新，是成長的主要推動力，而且非常成功。例如，如果你看一下晶片，我們會看到該業務成長了 40%，並且繼續保持高度增量，我們對即將推出的自行車商店平台感到興奮。

On Quest, I'd say the innovation on Quest has been incredibly successful and certainly retailers view it that way and continue to reward us with more space.

對於 Quest，我想說 Quest 的創新非常成功，當然零售商也這麼認為，並繼續為我們提供更多空間。

If you look at Atkins and I've been quite transparent about this on previous calls, we were very disappointed with the quality and level of innovation on actions over the past couple of years, which has contributed to the slowdown in the brand.

如果你看看阿特金斯，我在之前的電話會議上對此非常透明，我們對過去幾年行動創新的品質和水平感到非常失望，這導致了該品牌的放緩。

And it's why we have jumpstarted innovation on Atkins was certainly one of my priorities coming into the role. And I think the quality of the innovation we're bringing to market on Atkins over the Nick, it will come starting in the fall and thereafter is much stronger.

這就是為什麼我們在阿特金斯上啟動創新無疑是我上任時的首要任務之一。我認為我們在阿特金斯而不是尼克上推向市場的創新品質將從秋季開始，此後會更加強大。

And where we've tried to push is innovation, that's more incremental. So the business more platform focused on that, but we do know that on Atkins, what we're trying to do is hold onto to shelf space and replaced underperforming items with that with the innovation.

我們試圖推動的是創新，這是漸進式的。因此，商業更多平台專注於這一點，但我們確實知道，在阿特金斯，我們想做的是保留貨架空間，並用創新替換表現不佳的商品。

So the jobs, the different on innovation for both businesses right now on Atkins is replacing underperforming items with better items on Quest. It is about innovation that is incremental to the business and incremental to the category.

因此，阿特金斯目前在創新方面的不同之處在於，用 Quest 上更好的產品取代表現不佳的產品。這是關於對業務和品類增量的創新。

I'm just going to touch on Europe process question, I think a little bit there when we kind of launch any new innovation, we go through a process internally, what the metric we kind of look at as we go out there, our ACV build then turns per week and then related to that kind of repeat purchase.

我只想談談歐洲流程問題，我認為當我們推出任何新創新時，我們會在內部經歷一個流程，當我們走出去時我們會考慮什麼指標，我們的 ACV然後每週進行構建，然後與這種重複購買相關。

So those are the metrics we kind of model out before we launch anything and then we evaluate that performance if you want to call it that over the first six months or so of the launch to see how successful it would be.

因此，這些是我們在推出任何產品之前模擬出來的指標，然後我們會評估該性能（如果您想在發布後的前六個月左右稱之為性能），看看它會取得多大成功。

Really appreciate the detail from both of you. I'll pass it on. Thank you for your.

非常感謝你們兩位的細節。我會把它傳遞下去。謝謝你的。

Thank you.

謝謝。

Steve Powers, Deutsche Bank. Please proceed with your question.

史蒂夫鮑爾斯，德意志銀行。請繼續你的問題。

Thanks, guys. Sorry, I was on mute there hung up. First question on on Atkins and weight management category dynamics in general you talked about we expectation that the competitive environment, if the competitive dynamics would normalize as we go through the calendar year, I guess a little bit more perspective on where your confidence comes from in that. And yes, we'll take it from there.

多謝你們。抱歉，我當時處於靜音狀態，就掛斷了。關於阿特金斯和體重管理類別動態的第一個問題，您談到了我們期望競爭環境，如果競爭動態在我們歷年中正常化，我想對您的信心來自何處有更多的看法。是的，我們將從那裡開始。

Yes. Now the reality is that this time last year, as we talked about in the prepared remarks, one of our major competitors had supply challenges, and that was particularly acute over the January and February period. And as a result, Atkins benefited significantly, particularly in a few customers from outsized merchandising and promotional support, which we obviously didn't get this year.

是的。現在的現實是，去年的這個時候，正如我們在準備好的發言中談到的那樣，我們的一個主要競爭對手面臨著供應挑戰，這一問題在 1 月和 2 月期間尤為嚴重。結果，阿特金斯受益匪淺，特別是在一些客戶中，他們受益於大規模的推銷和促銷支持，而我們今年顯然沒有得到這些支持。

So that was going to be a difficult lap and that competitor is now back and able to service the business. So it was an inevitable difficult New Year you season, but we will lap that. And as we've come out of January, February trends have improved. And I'd say by around the summer we should be largely lap. That effect should be largely lapped, which is why our comps should get easier.

因此，這將是一個艱難的一圈，而競爭對手現在又回來了，並且能夠為業務提供服務。所以這是一個不可避免的艱難的新年賽季，但我們會克服它。隨著一月份的結束，二月的趨勢有所改善。我想說，到了夏天，我們基本上應該已經完成了。這種效果應該在很大程度上被重疊，這就是為什麼我們的比賽應該變得更容易。

Okay. Yes, look, it makes sense. And then pivoting over to Quest, you have you highlighted just the ready-to-drink coffee innovation, which is that which is interesting to me. I guess as you think about the pipeline of requests and from an innovation perspective.

好的。是的，你看，很有道理。然後轉向 Quest，你強調了即飲咖啡的創新，這對我來說很有趣。我想當你從創新的角度思考請求的管道。

I'm wondering how big a role do you think percentages will play versus are there further endeavors in food and beverages are envisioned as a kind of a material driver of the franchise going forward, how you think about prioritizing future consumption occasions versus immediate consumption occasions and you see the complexities of reaching different channels, especially on the immediate consumption side?

我想知道您認為百分比將發揮多大作用，以及食品和飲料方面是否有進一步的努力被設想為特許經營權未來的物質驅動力，您如何考慮優先考慮未來消費場合與即時消費場合您是否看到了進入不同通路的複雜性，尤其是在直接消費方面？

Yes. I mean, the thing. This has driven the success of Quest innovation as the brands are flipping, we can flipping the macros on large snacking categories, start flipping the macros from high sugar and high cap, high protein and low sugar, which is what we've done with our iced coffee launch.

是的。我的意思是，事情。這推動了 Quest 創新的成功，因為品牌正在翻轉，我們可以翻轉大型零食類別的宏，開始從高糖和高上限、高蛋白和低糖翻轉宏，這就是我們在我們的產品中所做的。冰咖啡推出。

And I'm excited to see how that performs. It's certainly early days and we monitor it closely. And if we continue to do well, we'll continue to double down there.

我很高興看到它的表現。當然現在還為時過早，我們會密切關注。如果我們繼續表現出色，我們將繼續加倍努力。

The question on beverage, so rest assured, we're looking at it.

關於飲料的問題，所以請放心，我們正在研究它。

It's obviously it's a large category and if we can find a way to go in and disrupt that category in a way, similar to how we plan to disrupt sweet baked goods, we would certainly look at that and even during a broader sample where we see those opportunities to give Quest consumers the same quality and taste that they desire of large snacking categories, we're looking at it Okay. Thank you.

顯然，這是一個很大的類別，如果我們能找到一種方法進入並以某種方式顛覆該類別，類似於我們計劃顛覆甜烘焙食品的方式，我們肯定會考慮這一點，甚至在我們看到的更廣泛的樣本中那些為 Quest 消費者提供與他們所期望的大型零食類別相同的品質和口味的機會，我們正在考慮。謝謝。

Thank you very, very much.

非常非常感謝你。

Thank you.

謝謝。

Pam Kaufman, Morgan Stanley. Please proceed with your question.

潘姆‧考夫曼，摩根士丹利。請繼續你的問題。

Hi, good morning. Sir, how are you thinking about your revenue progression over the back half of the year? And what gives you confidence that you can deliver on the updated revenue guidance? I guess where do you see potential for upside or downside to your new outlook?

早安.先生，您如何看待下半年的收入進度？是什麼讓您有信心實現更新後的收入指引？我想您認為您的新觀點有哪些優點或缺點？

I'll start and I'll turn it over to Sean. I'd say the upside as we are moving into easier what we believe will be easier comps on Atkins, and we do remain confident in that revitalization plan. The new advertising, we're confident in the new innovation that's launching, albeit towards the end of our fiscal, and we're ready to walk into easier comps.

我先開始，然後把它交給肖恩。我想說的是積極的一面，因為我們正在進入更容易的階段，我們相信阿特金斯的比賽會更容易，而且我們確實對這一振興計劃充滿信心。新的廣告，我們對即將推出的新創新充滿信心，儘管是在我們的財政即將結束時，我們已經準備好進入更容易的競爭。

So there could be some upside there. And OnQuest the momentum that we've seen just looking at March and mid double digit is very encouraging. And we've just launched new advertising that launch in beginning of March. And so that gives us a lot of confidence.

所以那裡可能有一些好處。僅從三月和中旬的情況來看，OnQuest 的勢頭就非常令人鼓舞。我們剛推出了三月初推出的新廣告。這給了我們很大的信心。

And then Quest two is bringing some pretty exciting innovation to market. So there could be some upside there. But I'll turn it over to Sean.

然後，Quest 2 正在將一些非常令人興奮的創新推向市場。所以那裡可能有一些好處。但我會把它交給肖恩。

I mean, I think if you take a look at the brands I mean, Quest, we're assuming from a consumption standpoint, low double digits. And as Jeff said, through March, so only four weeks and were 13% a little bit higher than that so feel like we're trending a little above where we thought we'll see what happens. So I feel pretty good with that.

我的意思是，我想如果你看看我的意思是，Quest，我們從消費的角度假設，低兩位數的品牌。正如傑夫所說，整個 3 月份，只有 4 週時間，成長率比這要高一點點，所以感覺我們的趨勢略高於我們認為會發生什麼的情況。所以我對此感覺很好。

We also have the advertising we've turned on, which I think is going to help overall from a consumer awareness and household penetration standpoint. So I feel very comfortable with where we are with Quest on Atkins, I think we put ourselves in a position where we have a, I'll say, realistic target to chase in the second half of the year.

我們也開啟了廣告，我認為從消費者意識和家庭滲透率的角度來看，這將總體上有所幫助。因此，我對 Quest on Atkins 的現狀感到非常滿意，我認為我們將自己置於一個位置，我想說的是，我們在下半年有一個現實的目標要追逐。

As I mentioned, items is basically consistent with the decline we saw in Q2 for q three slightly better as a rig in Q4.

正如我所提到的，項目與我們在第二季度看到的下降基本一致，第三季度作為第四季度的鑽機略好一些。

I'm sorry. And then as it relates to the 1st month of the quarter were trending down about 6% as I think you saw on the slides, which is better than we thought from a standpoint of the quarter. So again, early one month in, but feel like we're tracking ahead of where we thought we were going to be.

對不起。然後，與本季第一個月相關的趨勢下降了約 6%，正如我認為您在投影片上看到的那樣，從本季的角度來看，這比我們想像的要好。再說一遍，一個月前，但感覺我們正在領先我們預期的目標。

All right. That's helpful. And then can you talk about any adjustments that you're making to your strategy this year, given the performance and competitive dynamics you saw during the second quarter, you mentioned that you're accelerating some innovation like the protein shakes. Can you expand on any other changes in your innovation timing or changes to advertising or promotional plan for the year?

好的。這很有幫助。然後，考慮到您在第二季度看到的業績和競爭動態，您能否談談您今年對策略所做的任何調整，您提到您正在加速一些創新，例如蛋白質奶昔。您能否詳細介紹今年的創新時間或廣告或促銷計劃的任何其他變化？

Yes.

是的。

I mean, it's at a high level We're not really changing our strategy. The impact that we felt on Atkins in January February was a one-time, difficult lap as we talked about in the prepared remarks, but we remain confident in the future vitality of the brand.

我的意思是，這是一個很高的水平，我們並沒有真正改變我們的策略。正如我們在準備好的發言中談到的那樣，我們在一月二月對阿特金斯的影響是一次性的、艱難的一圈，但我們對該品牌的未來活力仍然充滿信心。

We remain confident in the revitalization plan we've talked about the innovation we're bringing to market, the new packaging graphic work that's underway, product upgrade work that's underway, the new advertising, and we're certainly going to stay the course there, but we'll make adjustments if we need to, but certainly wouldn't overreact to and merchandising and difficult merchandising lap in January February.

我們對振興計劃仍然充滿信心，我們已經談到了我們正在為市場帶來的創新，正在進行的新包裝圖形工作，正在進行的產品升級工作，新的廣告，我們肯定會堅持下去，但如果需要，我們會做出調整，但肯定不會對1 月2 月的商品銷售和困難的商品銷售反應過度。

Thank you. I'll pass it on.

謝謝。我會把它傳遞下去。

Thank you.

謝謝。

Thank you.

謝謝。

James Salera, Stephens. Please proceed with your questions.

詹姆斯·薩萊拉，史蒂芬斯。請繼續回答您的問題。

Hey, guys, good morning. Thanks for taking our question. And I think I wanted to drill down a little bit on Atkins, strong offering, some exciting to see you guys expand the RTD shake offering. Obviously, it's been a really hot category and at the same time. It's also a category that has pretty well known capacity constraints.

嘿，夥計們，早安。感謝您提出我們的問題。我想我想深入了解阿特金斯的強大產品，看到你們擴展 RTD 奶昔產品，我感到很興奮。顯然，這是一個非常熱門的類別。這也是一個眾所周知的容量限制的類別。

So if you could offer any color on co-manufacturing partners, how much capacity you guys think you will have when that product kind of comes to market and if we should expect it to be maybe just in club or just in mass or kind of how the channel rollout will be as you expand that 30 gram offering?

因此，如果您可以提供有關聯合製造合作夥伴的任何信息，那麼當該產品進入市場時，你們認為你們將擁有多少產能，以及我們是否應該期望它可能只是在俱樂部或只是大規模或如何當您擴展30 克產品時，通路將會推出嗎？

And we're also really excited about this launch. And it was designed as we've as we've seen, these weight-loss drugs emerge and adoption increase. And we've learned that consumers on those drugs as taking higher levels of protein to maintain muscle mass when they're losing weight.

我們對這次發布也感到非常興奮。它的設計正如我們所見，這些減肥藥物的出現和採用率的增加。我們了解到，服用這些藥物的消費者在減重時會服用更高水平的蛋白質來維持肌肉質量。

And we've also heard that when they're on the drugs, many experienced got health issues. So we developed this product, the primary consumer work with those on a weight loss trial. We know that there's consumers out there who are seeking high levels of protein.

我們也聽說，當他們服用藥物時，許多人都出現了健康問題。所以我們開發了這個產品，主要消費者與那些正在進行減肥試驗的人一起工作。我們知道有些消費者正在尋求高水平的蛋白質。

And so we're excited to bring that to market. We're going to put a lot of support behind that. Some retailers have been on, candidly, very impressed with how quickly we moved to develop a product for consumers on these drugs.

因此，我們很高興將其推向市場。我們將為此提供大量支援。坦白說，一些零售商對我們為消費者開發這些藥物產品的速度印象深刻。

To your question on capacity, and yet we feel like we're in a good spot is not a limited launch. We will launch it nationally and we've had extremely strong support.

對於你關於容量的問題，但我們覺得我們處於一個好的位置，這並不是有限的發射。我們將在全國範圍內推出它，並且我們得到了非常強大的支持。

Yes, I think on the capacity side, just to take a step back. When I go back about a year, year and a half ago, we had some capacity constraints basically got a another comment on board in terms of additional capacity that we have expanded the capacity that we have for REITs in general overall, and we're actually I think we have enough to support both that business as well as the continuing business we have overall. So we feel like we're pretty good shape there.

是的，我認為在容量方面，只是退一步。當我回到大約一年、一年半前時，我們有一些產能限制，基本上在額外產能方面得到了另一個評論，即我們總體上擴大了房地產投資信託基金的產能，我們正在事實上，我認為我們有足夠的能力來支持該業務以及我們整體的持續業務。所以我們覺得我們的狀態非常好。

Okay, great. And then maybe if I could ask a broader question, just on the consumer. As we've heard from other companies, there's kind of this bifurcation of the higher income consumers still powering forward and lower income consumer, maybe feeling a little bit more ''' since your products tend to skew towards the middle to higher income consumer.

好的，太好了。然後也許我可以問一個更廣泛的問題，只是關於消費者。正如我們從其他公司聽到的那樣，高收入消費者仍在奮力前進，而低收入消費者可能會感覺更“”，因為你的產品往往偏向中高收入消費者。

Do you have what's your confidence level as the year progresses and that the higher-income consumer will continue to be resilient relative to the overall kind of economic uncertainty.

隨著時間的推移，您對高收入消費者相對於整體經濟不確定性將繼續保持彈性的信心程度如何？

And yes, I mean, we we continue to seec the category perform the category performance year after year after year.

是的，我的意思是，我們繼續看到該類別年復一年地表現出色。

And I think in part it is for the reason that you cite is that we do over-index with higher income consumers. And so I think we're a little more insulated. I would point to a relative lack of private label in the category. I would point to the relative lack of heavily heavy promotional activity in the category.

我認為部分原因是您引用的原因是我們對高收入消費者進行了過度索引。所以我認為我們更加隔離了。我想指出的是該類別中相對缺乏自有品牌。我想指出的是該類別相對缺乏大量的促銷活動。

And I think it shows the underlying consumer demand, which to your point, I think is reflective that we over-index with kids with higher-income educated consumers.

我認為它顯示了潛在的消費者需求，就你的觀點而言，我認為這反映了我們過度關注高收入受教育消費者的孩子。

Great. Appreciate the color, guys. So I'll hop back in the queue. Thank you.

偉大的。欣賞一下這個顏色，夥計們。所以我會跳回到隊列中。謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

John Baumgartner, Mizuho Group. Please proceed with your questions.

約翰·鮑姆加特納，瑞穗集團。請繼續回答您的問題。

Good morning.

早安.

Thanks for the question for joining Orangina. Philippe, first off, Jack, you mentioned the heightened category competition around New Year new you I think you called out one specific competitor but I'm curious, can you expand a bit on competition more broadly?

感謝您提出加入 Orangina 的問題。菲利普，首先，傑克，你提到了新年前後品類競爭加劇，我想你提到了一個特定的競爭對手，但我很好奇，你能更廣泛地擴展一下競爭嗎？

Are you seeing competition based solely on pass-through of lower input costs and that moderates throughout the year as those tailwinds also moderate? Or are there also any heightened activity from new innovation hitting the shelves for a larger intensity also mapping feature and display activity?

您是否認為競爭僅基於較低投入成本的傳遞，並且隨著這些有利因素的減弱，這種競爭在全年中會有所緩和？或者，新的創新是否會帶來更強烈的活動，以更大的強度繪製功能和展示活動？

I mean, I would probably take a step back and say the level of activity in this category I think is what you would expect, right? Innovation can play a role. And you've certainly seen what we've been able to do with Quest chips with which was essentially to create a category or segment that didn't exist.

我的意思是，我可能會退一步說，我認為這一類別的活動水平正是您所期望的，對嗎？創新可以發揮作用。您肯定已經看到了我們使用 Quest 晶片所做的事情，本質上是創建一個不存在的類別或細分市場。

The heightened level of competitive activity that we've talked about in the prepared remarks really does relate to have out-of-stock challenges on shakes and <unk>.

我們在準備好話中談到的競爭活動的提高確實與在搖晃和上面臨庫存的挑戰有關。

Yes, the industry with constraints had been constrained for a couple of years. And obviously with that being turned back on, you've seen demand being able to be supplied. But I wouldn't Connacher I wouldn't say that this is a new level of competitive activity.

是的，這個受到限制的行業已經受到了幾年的限制。顯然，隨著這一點的恢復，您已經看到需求能夠得到滿足。但我不會康納赫，我不會說這是競爭活動的新境界。

I think it was an inevitable lap and one that we were always going to be on the wrong side of it and in the new year New Year period. But now with us supply back, I'd say we're going to return to normal levels.

我認為這是不可避免的一圈，在新年期間我們總是會站在錯誤的一邊。但現在隨著我們的供應恢復，我想說我們將恢復到正常水平。

Yes, I think, John, if you take a step back and look at last year with, you know, one of the key competitors in this marketplace for RTD.s, having less availability or capacity, the shelf space they had was less. So now they got that back and they've actually added not so much innovation.

是的，我想，約翰，如果你退後一步看看去年，你知道，RTD.s 市場的主要競爭對手之一，可用性或容量較少，他們擁有的貨架空間也較少。所以現在他們又回來了，而且他們實際上並沒有添加太多創新。

But if you want to call it pack size configurations. So four packs, a packs, 12 packs as well as maybe more space devoted to that competitor for display. So you're really seeing I think two years of growth in one quarter versus what we usually see out there.

但如果你想稱之為包裝尺寸配置。因此，四包、一包、十二包以及可能更多的空間專門用於展示該競爭對手。所以你確實看到了我認為一個季度兩年的成長與我們通常看到的情況相比。

So we stepped up our merchandising activity and programming it just the share of voice was less than what it was comparatively to everybody else. Does that help?

因此，我們加強了我們的行銷活動並對其進行了編程，只是聲音所佔的份額比其他人要少。這樣有幫助嗎？

Yes, definitely. And I guess sticking with that theme, I guess last quarter it sounded like your initial perceptions on new marketing coming out of auto was was pretty encouraging in the early days. I guess building on your on your point that Sean made, you get the sense that the ROI on that marketing, does it does it require further increases in spending from here? Just sort of maintain share of voice? How do we think about that?

當然是。我想堅持這個主題，我想上個季度聽起來你對汽車新行銷的最初看法在早期是相當令人鼓舞的。我想根據肖恩提出的觀點，您會感覺到行銷的投資報酬率是否需要進一步增加支出？只是維持話語權嗎？我們對此有何看法？

And then for the Atkins brand milestones going forward? I guess how impactful Are you expecting the autumn shelf resets to be in terms of jump-starting sales? So those should those autumn resets really give used material catalyst or disappoint?

那麼阿特金斯品牌未來的里程碑是什麼？我想您預計秋季貨架重置對快速啟動銷售有何影響？那麼那些秋季重置真的該為舊材料帶來催化劑還是令人失望呢？

Yes, the advertising, we're really pleased with the new advertising we debuted in October. We saw the business respond. Certainly it's probably too early to draw a hard line on that, but just given the magnitude of the merchandising lap that I talked about in the prepared remarks, it's very difficult, if not impossible to judge the effectiveness of that advertising in January and February, and it's a first pass of that would come out of the New Year New Year period.

是的，廣告，我們對 10 月推出的新廣告非常滿意。我們看到企業做出了回應。當然，現在對此劃定強硬界限可能還為時過早，但考慮到我在準備好的評論中談到的商品銷售週期的嚴重程度，要判斷一月和二月廣告的有效性，即使不是不可能，也是非常困難的，這是新年期間的第一次。

And trends on the business have improved, as I said, the ad tested very well. They tested well with both current buyers and potential new buyers. But with that being said, we'll continue to monitor performance over the coming months.

正如我所說，業務趨勢有所改善，廣告測試得非常好。他們對當前買家和潛在新買家進行了良好的測試。但話雖如此，我們將繼續監控未來幾個月的表現。

And if we've got to make changes in the advertising. We will try to your question on distribution cannot recall were category advisor to the majority of our key retailers. And as such, we have a lot of dialogue with them about the category and brand dynamics.

如果我們必須對廣告進行更改。我們將嘗試回答您關於分銷的問題，我們無法回憶起我們大多數主要零售商的品類顧問。因此，我們與他們就品類和品牌動態進行了大量對話。

And we recently wrapped up a roadshow visiting all those customers talking about the brands and in particular, Atkins and I a an emphasis of those conversations was the new conversation and renewed cultural relevance, I would say, of of weight because of these weight loss drives them what consumers on those drugs looking for and how they want an off-ramp and the retailers get it.

我們最近結束了一次路演，拜訪了所有談論品牌的客戶，特別是阿特金斯和我，這些對話的重點是新的對話和新的文化相關性，我想說的是，由於這些減肥動力，體重的新對話和新的文化相關性他們了解這些藥物的消費者在尋找什麼，以及他們想要如何獲得出口，零售商也能得到它。

They appreciate our transparency. They're supportive of the revitalization plan on and we're currently in conversations with them about them Inlog modulars, and they will play out over the coming two to four months.

他們欣賞我們的透明度。他們支持振興計劃，我們目前正在與他們就 Inlog 模組進行對話，它們將在未來兩到四個月內實施。

John, just one more color here. I think as you think about the rest of the year and the guidance we gave on EBITDA. One thing should be clear on that. I hope overall the gross margin should meaningfully improve in the next couple of quarters, approaching 39%, both Q3 and Q4, a little better in Q4 than Q3.

約翰，這裡還有一種顏色。我想，當你思考今年剩餘時間以及我們對 EBITDA 給予的指導。有一件事應該要明確。我希望整體毛利率在接下來的幾季中能夠顯著改善，第三季和第四季都接近 39%，第四季比第三季好一點。

With that, we're continuing to invest in the brand. So we did not reduce marketing spend to get to that number. That wasn't what we did. We basically took the benefit that we had for gross margin in Q2 and what we're seeing in Q3 and Q4 that allowed us to new invest and you're going to see meaningful increases, particularly on Quest with new advertising in Q3 and Q4.

因此，我們將繼續投資該品牌。因此，我們並沒有為了達到這個數字而減少行銷支出。那不是我們所做的。我們基本上利用了第二季的毛利率優勢以及第三季和第四季的毛利率，這使我們能夠進行新的投資，並且您將看到有意義的成長，特別是在第三季和第四季推出新廣告的Quest 上。

Okay. Thanks, Sean.

好的。謝謝，肖恩。

Thanks.

謝謝。

Okay, thank you.

好的謝謝。

Thank you.

謝謝。

Kaumil Gajrawala, Jefferies. Please proceed with your question.

考米爾·加吉拉瓦拉，傑弗里斯。請繼續你的問題。

And for the follow-up on the comment on ad spend, can you maybe just talk a little bit more about what's the right percentage of sales for ad spend, particularly in the context of so many new innovations this year? Does it need to be at some higher level for a temporary period of time.

對於廣告支出評論的後續行動，您能否多談談廣告支出佔銷售額的正確百分比是多少，特別是在今年有如此多新創新的背景下？是否需要暫時處於較高水準？

And then and then sort of taper off or is where you're going linked to what you mentioned before, some of the GM benefit that you're about to field.

然後，然後逐漸減少，或者是您將與之前提到的內容聯繫起來的地方，您即將獲得的一些通用汽車福利。

So we would historically target spending 9% to 10% on marketing. What I will say is that is and a high level of spend in the food beverage category in general and certainly and a very high level of spend within our category and that that's the role that we play as category leaders.

因此，我們歷來的目標是將 9% 到 10% 的支出用於行銷。我要說的是，總體而言，食品飲料類別的支出水平很高，當然，我們類別中的支出水平非常高，這就是我們作為類別領導者所扮演的角色。

As to your question on data support innovation as well as the core business. And what you'll see in both campaigns is that they have been developed to enable us to do that.

關於你提到的數據支撐創新以及核心業務的問題。您將在這兩個活動中看到，它們的開發是為了讓我們能夠做到這一點。

So I don't know if you've seen the new ads on Quest, but there have been constructed to enable us to support the multitude of different products on the brands while also driving the overall brand awareness and at delivering the positioning of the brand.

所以我不知道您是否看過 Quest 上的新廣告，但這些廣告的建立使我們能夠支持品牌上的多種不同產品，同時提高整體品牌知名度並傳達品牌定位。

So what we don't like having to make a choice between support the core business or innovation. What I like to do is have advertising that you can in play innovation into that ad and it still works.

所以我們不喜歡在支持核心業務和創新之間做出選擇。我喜歡做的就是投放廣告，你可以在廣告中發揮創新作用，而且它仍然有效。

A couple of data points for you. Just as you take a step back and look at this, I mean, I think our model has been since the beginning in terms of the P&L profile, trying to get to gross margins around 40%, the trying to get to advertising or marketing spend in the nine 10% range and EBITDA margins around 20. And I think we're getting back to that after some issues we had last couple of years for some commodity inflation.

為您提供幾個數據點。正如你退一步看這個，我的意思是，我認為我們的模式從一開始就在損益表方面，試圖達到 40% 左右的毛利率，試圖達到廣告或營銷支出在9% 的範圍內，EBITDA 利潤率在20 左右。我認為，在過去幾年因商品通膨而遇到一些問題之後，我們正在回到這一點。

As it relates to the total marketing spend, you probably saw the results were up 100 plus basis points for the quarter and the first half of the year that will continue in the second half of the year. So you'll see marketing spend closer to nine ish percent for the rest of the year.

由於與總行銷支出相關，您可能會看到本季度和上半年的業績增長了 100 多個基點，並且這種情況將在下半年繼續下去。因此，您會看到今年剩餘時間的行銷支出接近百分之九。

Useful. Thank you. And I'm just a quick follow-up boring question 53rd week on any context on contribution, do we just take it out of next year? Are you actually thinking about next year?

有用。謝謝。我只是在第 53 週提出一個關於貢獻的任何背景的快速後續無聊問題，我們是否將其從明年中刪除？你真的在考慮明年嗎？

Yes, you get to that first.

是的，你首先要做到這一點。

So then the 53rd week, I mean, I think historically, we've said it's a little bit more a point of growth. You just can't take 50 to about or wonder about what to do. And I'd say here's how much the work because with the way our fall resets work, we generally speaking, ship those sort of early August mid August. So we don't get the replenishment of that probably till mid-September. So it's just a little more than one point of growth overall, we don't have the specifics of at this point in time, we'll have better clarity on that. I hope in Q three.

那麼第 53 週，我的意思是，我認為從歷史上看，我們已經說過它更像是一個增長點。你不能花 50 個小時左右或想知道要做什麼。我想說的是，工作量是這樣的，因為按照我們秋季重置工作的方式，我們一般來說，在八月初八月中旬發貨。所以我們可能要到九月中旬才能得到補充。因此，整體成長只是略多於一個點，我們目前還沒有具體細節，我們會對此有更清晰的了解。我希望在第三個問題。

Yes.

是的。

Thank you.

謝謝。

Thank you.

謝謝。

Brian Holland, D.A. Davidson. Please proceed with your questions.

布萊恩·霍蘭德，D.A.戴維森。請繼續回答您的問題。

Yes, thanks. Good morning. I wanted to go back to the competitive dynamic component because we're seeing a pretty clear divergence between bars and shakes the entire bars category has been softer of late. And then within shakes, there's sort of a bifurcation between the weight management and some of the other heavier protein products.

對了謝謝。早安.我想回到競爭動態部分，因為我們看到金條之間存在相當明顯的差異，整個金條類別最近變得更加疲軟。然後，在奶昔中，體重管理和其他一些較重的蛋白質產品之間存在某種分歧。

So maybe maybe a two-part question here. One, I guess I'm a little bit surprised to hear the attribution for the weakness. Well, when it's coming from the I guess the growth is coming from shakes that you're talking about, that's where the supply is improving.

所以這裡可能有一個由兩個部分組成的問題。第一，我想我對這個弱點的歸因感到有點驚訝。好吧，當它來自我猜增長來自於你所談論的震動時，這就是供應正在改善的地方。

So the impact that's having on bars and everything else. So maybe a little bit more color around just understanding why do you think that is particularly impacting Atkins? Because I get them, I'm surprised, but we would see that level of shopping cross-shopping between those brands.

這對酒吧和其他一切都產生了影響。因此，也許需要更多的色彩來了解為什麼您認為這對阿特金斯影響特別大？因為我得到了它們，我很驚訝，但我們會看到這些品牌之間的購物交叉購物水平。

And then the second one is not necessarily a new dynamic. We knew that supply was coming. It's something that had been communicated something that's been ongoing. So maybe so I guess to the extent that it's hitting your business at a level or at a magnitude greater than expected.

第二個不一定是新的動態。我們知道供應即將到來。這是已經傳達過的事情，也是一直在進行的事情。所以我想也許是這樣，它對你的業務的打擊程度或程度超出了預期。

So it was the impact of that supply coming back online just greater than what you thought. And the consumer response to a greater than you thought of because it doesn't seem like something that we didn't know was coming.

因此，供應恢復上線的影響比您想像的要大。消費者的反應比你想像的還要大，因為這似乎不是我們不知道的事情即將發生。

Yes.

是的。

No, that's fair. I'll just address your first question, which is the observation on on Buyz. I guess the first thing I would comment is while buys growth had slowed request, if it's proven to be an exception to that Quest, Pfizer up mid single digits, and we're very pleased with that level of growth.

不，這很公平。我只回答你的第一個問題，這是對Buyz 的觀察。我想我要評論的第一件事是，雖然購買成長放緩了需求，但如果事實證明它是Quest 的例外，輝瑞的成長將達到中個位數，我們對這種成長水準感到非常滿意。

But certainly you have seen shapes have growth outstrips about growth. And honestly, as we've talked about, that's not really a supply as no surprise because supply was constrained for two years. So I think as Sean said, in response to an earlier question from what you're seeing with Shape is essentially two years of growth in one.

但你肯定已經看到形狀的增長超過了增長。老實說，正如我們所討論的，這並不是真正的供應，這並不奇怪，因為供應在兩年內受到限制。因此，我認為正如肖恩所說，在回答先前的問題時，您所看到的 Shape 本質上是兩年的增長。

And that dynamic has played out January, February and will until we've finished with that lap, which is more towards the summer. And then to your to your question on why I think your question was should you have knowing more than we did about the dynamic that we were going to walk into in January and February. And I'd say the answer is yes.

這種動態已經在一月、二月持續，直到我們完成那一圈，這更接近夏天。然後回答你的問題，為什麼我認為你的問題是你是否應該比我們更了解我們將在一月和二月面臨的動態。我想說答案是肯定的。

And looking forward going forward, you should expect us to perhaps be more a challenge too competitive dynamics and to think about merchandising as a share of voice versus just looking at our own plans. So you should expect that change moving forward.

展望未來，您應該期望我們可能會更具競爭動力，並將商品推銷視為一種聲音，而不是只專注於我們自己的計劃。因此，您應該期待這種變化的繼續發展。

So appreciate all the color. And then just back to Atkins, you know, to carry your messaging has been fairly consistent up the patent unit since you talked about the revitalization plan and you know the potential opportunity over time with the GLP-1 complement Just curious if you've picked up anything anecdotal to increase your conviction to that end?

所以欣賞所有的顏色。然後回到阿特金斯，您知道，自從您談到振興計劃以來，在專利部門傳達您的信息一直相當一致，並且您知道隨著時間的推移，GLP-1 補充的潛在機會只是好奇您是否選擇了有什麼軼事可以增強你實現這一目標的信念嗎？

Because I do think that seems to be a point of contention with investors who, you know, I hear a lot of inbound, you know, kind of inquiries about, hey, they feel like this is a head that this would be a headwind to the business because of the overlap of the consumer and maybe that they may be changing their routines away from an Atkins just using the GLP-1.

因為我確實認為這似乎是投資者爭論的一個焦點，你知道，我聽到了很多入境投資者的詢問，嘿，他們覺得這是一個頭，這將是一個逆風由於消費者的重疊，他們可能會改變他們的日常習慣，不再使用僅使用GLP-1 的阿特金斯。

So clearly, the innovation seems to be, you know, the 30 grams of protein, and that seems to be resolving some of this.

很明顯，創新似乎是 30 克蛋白質，這似乎解決了部分問題。

But just curious what you've picked up anecdotal that gives you increased confidence that Atkins indeed will be a complement and GLP-1 will be a tailwind for that business?

但只是好奇您所發現的哪些軼事讓您更有信心阿特金斯確實會成為該業務的補充，而 GLP-1 將成為該業務的推動力？

Yes, I would say that by saying we are in the early innings of GLP-1 and we're still learning. We're doing our own studies we're talking to consumers, we're talking to customers. We do believe that GLP-1, it does represent a tailwind for Atkins and a tailwind for the category. And we know that when consumers are on these drugs.

是的，我想說的是，我們正處於 GLP-1 的早期階段，我們仍在學習。我們正在做我們自己的研究，我們正在與消費者交談，我們正在與客戶交談。我們確實相信 GLP-1 確實代表了阿特金斯和該類別的順風車。我們知道當消費者服用這些藥物時。

As I answered earlier, they have a need for higher protein products and they have got health issues, which is why we accelerated the launch of that and strong to market, and we're excited about the launch of that platform. And retail has given us a lot of credit for moving quickly and coming to market with something that specifically addresses that need.

正如我之前回答的那樣，他們需要更高的蛋白質產品，並且有健康問題，這就是為什麼我們加速推出該產品並大力推向市場，我們對該平台的推出感到興奮。零售業因快速行動並推出專門滿足這一需求的產品而獲得了許多讚譽。

I would say I'm equally, if not more excited about it, Atkins as a off-ramp as an off-ramp for consumers who want to get off the drugs, the battle going on with insurers, as you know, from our own research suggests that most people once they've hit their weight-loss goal once you get off those drugs, they know there's a good chance of put the weight back on and they're desperate to find some sustainable program or sustainable way of eating to keep that weight off.

我想說，我對此同樣感到興奮，如果不是更興奮的話，阿特金斯作為一個出口匝道，作為想要擺脫毒品的消費者的出口匝道，與保險公司的戰鬥正在進行，如你所知，來自我們自己的保險公司研究表明，大多數人一旦達到減肥目標，一旦戒掉這些藥物，他們就會知道體重很有可能重新增加，他們迫切希望找到一些可持續的計劃或可持續的飲食方式來減輕體重。保持體重減輕。

And I think that's where Atkins can shine. And moving forward, you should expect us to more clearly position the brand as that off-ramp as the sustainable way to keep that weight off. So I continue to believe that these GLP-1 drugs are a tailwind. But I would reiterate we are still in the early innings.

我認為這就是阿特金斯的閃光點。展望未來，您應該期望我們更明確地將品牌定位為出口匝道，作為減輕體重的可持續方式。所以我仍然相信這些 GLP-1 藥物是一種順風車。但我要重申，我們仍處於早期階段。

I've got to forgive me if I could just sneak a really quick one in if you stated this earlier, I apologize of was Quest in line with expectations in the quarter?

我必須原諒我，如果我可以快速地加入一個，如果你之前說過這一點，我很抱歉，Quest 是否符合本季度的預期？

Yes.

是的。

Okay, great. Thank you.

好的，太好了。謝謝。

Thank you.

謝謝。

Jon Andersen, William Blair. Please proceed with your questions.

喬恩·安德森，威廉·布萊爾。請繼續回答您的問題。

Thank you very much for squeezing me in a question about household penetration. You talked about the category of Active Nutrition being relatively low relative to other center-of-store categories.

非常感謝您向我提出有關家庭滲透率的問題。您談到活性營養品類相對於其他商店中心品類而言相對較低。

Where are you today with Quest?

今天您在哪裡與 Quest 一起？

And where is Atkins with respect to household penetration? And then as you look forward, so what the bold or opportunity around each of the brands. So as you're innovating as you're marketing, are you looking to drive household penetration and buy rate across both brands? Is there a greater opportunity within one of those areas. I'm thinking that that may I had opportunity may differ by brand, but a little color on that would be helpful. Thanks.

阿特金斯在家庭普及率方面處於什麼位置？然後，當你展望未來時，每個品牌都有哪些大膽的機會或機會。因此，當您在行銷時進行創新時，您是否希望提高兩個品牌的家庭滲透率和購買率？在這些領域之一是否存在更大的機會？我想我的機會可能會因品牌而異，但稍微加一點顏色會有所幫助。謝謝。

Yes, I'll start with the categories, household penetration of the categories and mid 50s. And that compares with high 80s, low 90s with most center-store categories, which is why we continue to see a long-term runway and if you look at where the category over-indexes and it is with younger consumers, millennials and Gen Gen Z, so we continue to believe that penetration of the category is only going to increase and certainly retailers see that, which is why they're excited to work with us on initiative to accelerate category penetration.

是的，我將從類別、類別的家庭滲透率和 50 年代中期開始。與大多數中心店品類中的80 後、90 後品類相比，這就是為什麼我們繼續看到長期趨勢，如果你看看該品類過度指數的地方，就會發現年輕消費者、千禧一代和一代消費者Z，所以我們仍然相信該類別的滲透率只會增加，當然零售商也看到了這一點，這就是為什麼他們很高興與我們合作主動加速類別滲透。

As you look at the respective brands and Quest is around 16% or 17% household penetration. But as we've talked about for a brand of its size and awareness is significantly below most of its competitors, which is why we're excited about our new advertising.

從各個品牌來看，Quest 的家庭滲透率約為 16% 或 17%。但正如我們所討論的，一個品牌的規模和知名度明顯低於大多數競爭對手，這就是我們對新廣告感到興奮的原因。

And as it energy click one level lower with Quest, we believe there's an opportunity to drive increased household penetration and buy rate. And in particular, the new innovation platforms are helping to drive buy rates, right? Because we're offering consumers additional snacking occasions and that just increases by rate.

隨著 Quest 的能量降低一級，我們相信有機會提高家庭滲透率和購買率。特別是，新的創新平台正在幫助提高購買率，對吧？因為我們為消費者提供了更多的零食的機會，而且這種機會只會增加。

So I think on our if you look on Quest, there's an opportunity to drive household penetration up as we focus on increasing awareness. Advertising is a big driver there. Is there opportunity to drive FireEye up and in particular, I would point to the new innovation platform, SLT and the new bike shop platform, which is offering a completely new usage occasion, right, disrupting a sweet baked goods on Atkins, the awareness levels are quite high.

因此，我認為，如果您關注 Quest，您會發現，當我們專注於提高意識時，就有機會提高家庭滲透率。廣告是那裡的一個重要驅動力。是否有機會推動FireEye 的發展，特別是，我會指出新的創新平台、SLT 和新的自行車商店平台，它提供了一個全新的使用場合，對吧，顛覆了阿特金斯的甜烘焙食品，認知水平都相當高。

And so that is less of an opportunity on that brand. The opportunity on Atkins, I think, is to continue to ensure that consumers see the brand as a sustainable way to maintain weight. And I continue to believe innovation, better innovation than we have launched in the past as an opportunity with that brand.

因此，該品牌的機會就更少了。我認為阿特金斯的機會在於繼續確保消費者將品牌視為維持體重的可持續方式。我仍然相信創新，比我們過去推出的更好的創新，作為該品牌的機會。

Just real quick on the penetration you some reference point for you worked at almost 17 points for Quest right now for household penetration. If you go back a couple years, we're actually a little below 14 right. So I think we've made tremendous part of our growth that that brand has been distribution, but also household penetration and awareness. And I think we see that for future as we look at Quest as well as an opportunity. Yes, one housekeeping.

快速了解滲透率，為您提供一些參考點，因為您現在為 Quest 的家庭滲透率工作了近 17 個點。如果你回到幾年前，我們實際上略低於 14 歲，對吧。因此，我認為我們在品牌的分銷、家庭滲透率和認知度方面取得了巨大的成長。我認為，當我們看待 Quest 時，我們看到了未來的前景，同時也是一個機會。是的，一項家事服務。

So the balance sheet's in good shape. Your leverage ratio, I think is below half a turn at this point you've paid down more debt in the quarter. What is that how are you prioritizing use of excess free cash flow going forward in the business?

所以資產負債表狀況良好。我認為你的槓桿率低於半轉，此時你已經在本季償還了更多債務。您在未來的業務中如何優先使用多餘的自由現金流？

We had a great quarter, obviously, for cash generation and cash from operations. And we continue to see that as a competitive advantage for us. And we'll continue to see that the second half of the year we spent a fair amount of time evaluating the best return of cash for our shareholders, debt paydown, share repurchases, potential M&A opportunities. We'll continue to evaluate that for the second half of the year and do we think is best for return to our shareholders.

顯然，我們在現金生成和運營現金方面度過了一個出色的季度。我們仍然認為這是我們的競爭優勢。我們將繼續看到，今年下半年我們花了相當多的時間來評估股東的最佳現金回報、債務償還、股票回購、潛在的併購機會。我們將在下半年繼續評估這一點，我們認為這對股東回報是否最好。

Thank you.

謝謝。

Thank you. We have reached the end of our question-and-answer session, and I would now like to turn the floor back over to Jeff Tanner for closing remarks.

謝謝。我們的問答環節已經結束，現在我想把發言權交回傑夫·坦納（Jeff Tanner）做總結發言。

I just want to thank everyone for their participation on today's call, and we look forward to updating you on our third quarter results in late June. Have a great day.

我只想感謝大家參與今天的電話會議，我們期待在六月下旬向您通報我們第三季業績的最新情況。祝你有美好的一天。

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect at this time and enjoy the rest of your day.

謝謝。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開連接並享受剩下的一天。