WD-40 Co (WDFC) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Good day, and welcome to the WD-40 company second- quarter fiscal year 2025 earnings conference call. Today's call is being recorded. (Operator instructions).

女士們、先生們，感謝你們的支持。大家好，歡迎參加 WD-40 公司 2025 財年第二季財報電話會議。今天的通話正在錄音。（操作員指令）。

I would now like to turn the presentation over to the host for today's call, Wendy Kelley, Vice President, Stakeholder and Investor Engagement. Please proceed.

現在，我想將演講交給今天電話會議的主持人、利益相關者和投資者參與副總裁溫迪凱利 (Wendy Kelley)。請繼續。

Thank you. Good afternoon, and thanks to everyone for joining us today. On our call today are WD-40 Company's President and Chief Executive Officer, Steve Brass; and Vice President and Chief Financial Officer, Sara Hyzer.

謝謝。下午好，感謝大家今天的參加。今天參加我們電話會議的有 WD-40 公司總裁兼執行長 Steve Brass；以及副總裁兼財務長 Sara Hyzer。

In addition to the financial information presented on today's call, we encourage investors to review our earnings presentation, earnings press release and Form 10-Q for the period ending February 28, 2025. These documents will be made available on our Investor Relations website at investor.wd40company.com. A replay and transcript of today's call will also be made available shortly after this call.

除了今天電話會議上提供的財務資訊外，我們還鼓勵投資者查看截至 2025 年 2 月 28 日的收益報告、收益新聞稿和 10-Q 表。這些文件將在我們的投資者關係網站 investor.wd40company.com 上發布。今天電話會議的重播和記錄也將在會議結束後不久提供。

On today's call, we will discuss certain non-GAAP measures. The descriptions and reconciliations of these non-GAAP measures are available in our SEC filings as well as the earnings documents posted on our Investor Relations website.

在今天的電話會議上，我們將討論某些非公認會計準則指標。這些非公認會計準則指標的描述和對帳可以在我們提交給美國證券交易委員會的文件以及我們投資者關係網站上發布的收益文件中找到。

As a reminder, today's call includes forward-looking statements about our expectations for the company's future performance. Actual results could differ materially. The company's expectations, beliefs and projections are expressed in good faith, but there can be no assurance that they will be achieved or accomplished. Please refer to the risk factors detailed in our SEC filings for further discussion.

提醒一下，今天的電話會議包括我們對公司未來業績的預期的前瞻性陳述。實際結果可能存在重大差異。本公司的期望、信念和預測均真誠表達，但不能保證一定會實現或完成。請參閱我們提交給美國證券交易委員會的文件中詳述的風險因素以進行進一步討論。

Finally, for anyone listening to a webcast replay or reviewing a written transcript of this call, please note that all information presented is current only as of today's date, April 8, 2025. The company disclaims any duty or obligation to update any forward-looking information as a result of new information, future events or otherwise.

最後，對於收聽網路直播重播或查看本次通話書面記錄的任何人，請注意，所提供的所有資訊僅截至今天（2025 年 4 月 8 日）的最新資訊。本公司不承擔因新資訊、未來事件或其他原因而更新任何前瞻性資訊的責任或義務。

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

說完這些，我現在想把電話轉給史蒂夫。

Thanks, Wendy, and thank you all for joining us today. Today, I'll start with an overview of our sales results for the second fiscal quarter of 2025. I'll also provide updates on our Must-Win Battles and key strategic enablers. After that, Sara will go over our second quarter results in more detail, provide a brief update on the anticipated divestiture of our home care and cleaning business review our 55/30/25 business model and share an updated outlook for fiscal year 2025. We'll then open the floor for your questions.

謝謝，溫迪，也謝謝大家今天加入我們。今天，我先概述我們 2025 財年第二季的銷售業績。我還將提供有關我們必須贏的戰鬥和關鍵戰略推動因素的最新消息。之後，Sara 將更詳細地介紹我們第二季的業績，簡要介紹我們預期剝離的家庭護理和清潔業務，回顧我們的 55/30/25 業務模式，並分享 2025 財年的最新展望。然後我們將開始回答大家的提問。

Today, we reported net sales of $146.1 million for the second quarter, which was an increase of 5% from the second quarter of last fiscal year. Changes in foreign currency exchange rates have been a bit of a headwind for us this quarter. Adjusting for estimated translation impact of foreign currency, net sales would have been $150.9 million, reflecting an increase of 9% compared to the prior year fiscal quarter.

今天，我們報告第二季淨銷售額為 1.461 億美元，比上一財年第二季成長 5%。本季度，外匯匯率的變化給我們帶來了一些不利影響。經估計外幣折算影響後，淨銷售額將達到 1.509 億美元，較去年同期成長 9%。

Our target sales growth for core maintenance products remains in the mid- to high single digits. In the second quarter, we achieved $139.3 million in net sales for these products, a 6% increase despite currency headwinds.

我們核心維護產品的目標銷售成長仍維持在中高個位數。在第二季度，我們實現了這些產品的淨銷售額 1.393 億美元，儘管面臨貨幣逆風，但仍成長了 6%。

This performance aligns with our long-term growth targets. Much of this growth was driven by strong volume performance. We experienced double-digit volume growth both in the second quarter and year-to-date, with particularly strong volume growth in EIMEA.

這一業績符合我們的長期成長目標。這一成長很大程度上是由強勁的銷售表現所推動的。我們在第二季和年初至今都經歷了兩位數的銷售成長，其中 EIMEA 地區的銷量成長尤為強勁。

Now let's talk about second quarter sales results in dollars by segment, starting with the Americas. Total sales in the Americas, which includes the United States, Latin America and Canada, increased 3% in the second quarter to $65.5 million compared to the same period last year. Adjusting for estimated translation impact of foreign currency, net sales in the Americas would have increased by 5% compared to the prior year fiscal quarter.

現在讓我們來談談第二季各部門的銷售業績（以美元計算），首先是美洲地區。美洲地區（包括美國、拉丁美洲和加拿大）第二季總銷售額與去年同期相比成長 3%，達到 6,550 萬美元。經估計的外幣折算影響調整後，美洲地區的淨銷售額將比去年同期成長 5%。

Sales and maintenance products increased 4% in the second quarter to $62.4 million compared to the same period last year. The bulk of this growth was driven by higher sales volume of WD-40 multi-use product in Latin America, which increased 47% compared to prior year quarter.

第二季銷售及維護產品銷售額與去年同期相比成長 4%，達到 6,240 萬美元。這一增長主要得益於拉丁美洲 WD-40 多用途產品銷量的增加，與去年同期相比增長了 47%。

Sales of WD-40 Multi-Use Product in Latin America was favorably impacted by our transition to a direct market model in Brazil. This distribution model shift favorably impacted net sales in Brazil by approximately $3.4 million in the second quarter.

由於我們在巴西轉向直接市場模式，WD-40 多用途產品在拉丁美洲的銷售受到了積極影響。這種分銷模式的轉變對巴西第二季的淨銷售額產生了約 340 萬美元的正面影響。

Our newest direct market is celebrating its one year anniversary this quarter, and it continues to perform fully in line with our expectations. In addition, sales in other Latin American markets increased $1.3 million due to improved economic conditions in certain regions as well as higher level of brand building activity and expanded distribution.

我們最新的直接市場本季迎來了一周年紀念日，其表現繼續完全符合我們的預期。此外，由於某些地區經濟狀況的改善以及品牌建立活動的水平提高和分銷範圍的擴大，其他拉丁美洲市場的銷售額增加了 130 萬美元。

Higher sales in Latin America were partially offset by lower sales of WD-40 multi-use products in the United States which decreased by $2.7 million compared to the prior year quarter due to the timing of customer orders.

拉丁美洲銷售額的成長被美國 WD-40 多用途產品銷售額的下降部分抵消，由於客戶訂單時間原因，美國 WD-40 多用途產品銷售額與去年同期相比下降了 270 萬美元。

I'm happy to share that many of those customer orders have already shifted into March contributing to a strong start we're seeing in the US for our third fiscal quarter. In the Americas, sales of WD-40 Specialist increased 9% compared to the prior year, primarily due to expanded distribution in the United States.

我很高興地告訴大家，許多客戶的訂單已經轉移到三月份，這為我們在美國第三財季的強勁開局做出了貢獻。在美洲，WD-40 Specialist 的銷量比上年增長了 9%，這主要歸功於美國境內分銷範圍的擴大。

Growth in maintenance products was partially offset by a 6% decline in home care and cleaning products. This drop was primarily due to reduced distribution for these brands as we shift our focus to our more profitable maintenance products in line with our Four-by-Four strategic framework. In total, our Americas segment made up 45% of our global business in the second quarter.

維護產品的成長部分被家庭護理和清潔產品 6% 的下降所抵消。下降的主要原因是這些品牌的分銷量減少，因為我們根據 Four-by-Four 策略框架將重點轉向利潤更高的維護產品。總體而言，美洲分部在第二季占我們全球業務的 45%。

Now let's take a look at our sales in EIMEA, which includes Europe, India, the Middle East and Africa. Total sales in EIMEA increased 10% in the second quarter to $59.6 million compared to the same period last year. Adjusting for estimated translation impact of foreign currency, net sales in EIMEA would have increased by 15% compared to the prior year fiscal quarter.

現在讓我們來看看我們在EIMEA（包括歐洲、印度、中東和非洲）的銷售情況。EIMEA 地區第二季總銷售額與去年同期相比成長 10%，達到 5,960 萬美元。經估計的外幣折算影響調整後，EIMEA 的淨銷售額將比去年同期增加 15%。

Sales and maintenance products increased 11% in the second quarter to $58.1 million compared to the same period last year. The strong growth in EIMEA was driven most significantly by higher sales volumes at WD-40 multi-use product in our direct markets. Sales increased most significantly in Italy, France and the Benelux regions, which were up 28%, 13% and 27%, respectively.

第二季銷售及維護產品銷售額較去年同期成長 11%，達到 5,810 萬美元。EIMEA 的強勁成長主要得益於我們直接市場上 WD-40 多用途產品的銷售成長。義大利、法國和比荷盧三國地區的銷售額增幅最為顯著，分別成長了 28%、13% 和 27%。

In EIMEA, most regions have seen continued volume growth momentum following a temporary decline in volumes associated with price increases we implemented over two years ago. While much of this volume recovery occurred in fiscal year '24, momentum in sales volumes has continued into fiscal year '25, leading to higher sales.

在 EIMEA，在經歷了兩年多前我們實施的價格上調導致的銷量暫時下降之後，大多數地區的銷量都持續增長勢頭。雖然銷量復甦主要發生在 24 財年，但銷量的動能一直延續到 25 財年，導致銷售額增加。

Sales of WD-40 Specialist increased 12% compared to the prior year fiscal quarter primarily due to higher sales volume due to increased distribution and stronger levels of demand in various direct markets, most significantly in the DACH, Benelux and Iberia regions.

WD-40 Specialist 的銷售額與去年同期相比增長了 12%，這主要是由於分銷增加導致的銷售量增加以及各個直接市場的需求水平增強，其中最顯著的是德國、瑞士、比荷盧三國和伊比利亞地區。

Growth in maintenance products was partially offset by a 32% or $715,000 decline in home care and cleaning products. This is primarily due to reduced promotional efforts for these brands as we shifted our focus to our more profitable maintenance products, in line with our Four-by-Four strategic framework. In total, EIMEA segment over 41% of our global business in the second quarter.

維護產品的成長部分被家庭護理和清潔產品 32% 或 715,000 美元的下降所抵消。這主要是因為我們將重點轉移到利潤更高的維護產品上，從而減少了對這些品牌的促銷力度，這符合我們的四乘四策略框架。總體而言，第二季 EIMEA 占我們全球業務的 41% 以上。

Now on to Asia Pacific. Sales in Asia Pacific, which includes Australia, China and other countries in the Asia region, decreased 1% in the second quarter to $21 million compared to the same period last year. Adjusting for estimated translation impact of foreign currency, net sales in Asia Pacific would have increased by 1% compared to prior year fiscal quarter.

現在談談亞太地區。亞太地區（包括澳洲、中國和亞洲其他國家）的銷售額第二季與去年同期相比下降了 1%，至 2,100 萬美元。經估計的外幣折算影響調整後，亞太地區的淨銷售額將比去年同期成長 1%。

Sales and maintenance products decreased 1% in the second quarter to $18.9 million compared to the same period last year. This decline was driven primarily by lower sales of WD-40 Multi-Use product in our Asia distributor markets, where sales decreased 8% compared to the prior year quarter due to the timing of customer orders.

第二季銷售及維護產品銷售額與去年同期相比下降 1% 至 1,890 萬美元。造成這一下降的主要原因是亞洲分銷商市場 WD-40 多用途產品銷量下降，由於客戶訂單時間原因，該市場銷量與去年同期相比下降了 8%。

Sales volume in our Asia distributor markets declined due to in-market knock-on effects associated with changes in foreign currency exchange rates. Since we sell to these distributors in the US dollar, a stronger dollar makes our products more expensive to buy in market.

由於外匯匯率變化帶來的市場連鎖反應，我們在亞洲分銷商市場的銷售量有所下降。由於我們以美元向這些分銷商銷售產品，因此美元走強會使我們的產品在市場上更加昂貴。

As a result, our marketing distributor partners may raise prices in the market, leading to temporary market disruption. In March, we began to see recovery in our Asia Pacific distributor markets and anticipate a strong second half of fiscal year '25.

因此，我們的行銷經銷商合作夥伴可能會提高市場價格，從而導致暫時的市場混亂。3 月份，我們開始看到亞太分銷商市場復甦，並預計 2025 財年下半年將表現強勁。

Lower sales in our Asia distributor markets were partially offset by higher sales of WD-40 Multi-Use product in China, which increased 5% due to increased sales volume from successful brand building and marketing activities as well as expanded distribution. In Australia, sales were down 5% in the second quarter, primarily due to lower sales of home care and cleaning products in the region, which decreased 7% due to the timing of customer promotions.

我們亞洲分銷商市場的銷售額下降被中國 WD-40 多用途產品銷售額的成長部分抵消，該產品在中國的銷售額增長了 5%，這得益於成功的品牌建設和營銷活動以及分銷範圍的擴大導致的銷售量增加。在澳大利亞，第二季銷售額下降了 5%，主要原因是該地區家庭護理和清潔產品的銷售額下降，由於客戶促銷時間原因，銷售額下降了 7%。

In Asia Pacific, sales of WD-40 Specialist were up 10% in the second quarter due to higher sales volume from successful promotions and marketing efforts in our Asia distributor markets, along with expanded distribution in China. In total, our Asia Pacific segment made up 14% of our global business in the second quarter.

在亞太地區，WD-40 Specialist 的銷售額在第二季度增長了 10%，這得益於我們在亞洲分銷商市場的成功促銷和營銷努力以及在中國的分銷範圍擴大帶來的銷售量增長。總體而言，我們第二季的亞太業務佔全球業務的 14%。

Now let's take a look at our Must-Win Battles. Our Must-Win Battles focused on maintenance product revenue growth and improved profitability. Starting with Must-Win Battle number one, lead geographic expansion, year-to-date, global sales of WD-40 Multi-Use Product were $232 million, representing growth of 8% compared to the same period last year. We experienced 16% growth of our Signature brand in EIMEA and 7% growth in the Americas. This growth was partially offset by a 4% sales decline in Asia Pacific.

現在讓我們來看看我們必須贏的戰鬥。我們的必勝之戰重點是維護產品收入成長和獲利能力提高。從第一場必贏之戰開始，引領地域擴張，年初至今，WD-40 多用途產品的全球銷售額為 2.32 億美元，與去年同期相比增長了 8%。我們的 Signature 品牌在 EIMEA 地區成長了 16%，在美洲地區成長了 7%。亞太地區 4% 的銷售額下降部分抵消了這一增長。

Every day, we continue to uncover new opportunities to build our flagship brand with end users around the world. The geopolitical fragmentation increases for exploring new go-to-market strategies in specific regions.

每天，我們都在不斷發現新的機會，與世界各地的最終用戶一起打造我們的旗艦品牌。地緣政治分化加劇，需要探索特定區域的新市場進入策略。

Over the past five years, we've successfully transitioned to markets, Mexico and Brazil to a direct model, gaining valuable insights and driving strong growth. However, going direct is not the only way to accelerate top line growth. We are also exploring alternative go-to-market strategies to improve efficiency.

在過去的五年裡，我們成功地將墨西哥和巴西市場轉變為直接模式，獲得了寶貴的見解並推動了強勁的成長。然而，直接經營並不是加速收入成長的唯一途徑。我們也正在探索替代的市場進入策略來提高效率。

We've started grouping our EIMEA markets into strategic regional hubs with centralized operations and business functions. These homes managed sales, distribution and marketing from multiple nearby markets, helping us reduce costs, accelerate rate of execution and better adapt to regional needs.

我們已經開始將 EIMEA 市場劃分為具有集中營運和業務功能的策略區域中心。這些總部管理著來自多個附近市場的銷售、分銷和行銷，幫助我們降低成本、加快執行速度並更好地適應區域需求。

In the Asia Pacific region, we're adopting hybrid models in some markets to accelerate learning and growth. We've identified Indonesia, Vietnam and Japan was tough market opportunities within our Asia distributor network. Experience has shown having boots on the ground, benefits both our company and our distributor partners.

在亞太地區，我們正在一些市場採用混合模式來加速學習和成長。我們發現印尼、越南和日本是我們亞洲經銷商網路中的艱難市場機會。經驗表明，擁有實地經驗對我們公司和我們的經銷商合作夥伴都有好處。

Currently, we have dedicated WD-40 Company personnel looking alongside our Indonesian and Vietnamese distributors and we're excited to announce the hiring of our first dedicated personnel in Japan, who will work closely with our Japanese distributor. We're confident that the focus and expertise these personnel will bring to their respective markets, will create a significant unlock and contribute further to our success.

目前，我們有專門的 WD-40 公司人員與我們的印尼和越南經銷商一起尋找客戶，我們很高興地宣布我們在日本招募了第一批專門人員，他們將與我們的日本經銷商密切合作。我們相信，這些人員將為各自的市場帶來專注和專業知識，創造重大突破，並進一步促進我們的成功。

Next is Must-Win Battle number two, accelerating premiumization. Our second Must-Win Battle is to accelerate sales of premium formats and WD-40 multi-use product. For us, premiumization is a major contributor to even more profitable growth, and our premiumized products continue to leave our end users of positive lasting memories.

接下來是第二場必勝之戰，加速高端化。我們的第二場必勝之戰是加速優質格式和 WD-40 多用途產品的銷售。對我們來說，高端化是實現更大利潤成長的主要因素，而我們的高端產品將繼續為最終用戶留下積極而持久的回憶。

Year-to-date sales of WD-40 Smart Straw and EZ Reach when combined were up 11% compared to the prior year period. On a go-forward basis, we'll be targeting a compound annual growth rate for net sales of premiumized products of greater than 10%.

今年迄今為止，WD-40 Smart Straw 和 EZ Reach 的銷量與去年同期相比成長了 11%。展望未來，我們的目標是高端產品淨銷售額的複合年增長率達到 10% 以上。

Our third Must-Win Battle is to drive WD-40 Specialist growth. Year-to-date, sales of WD-40 Specialist products were $38 million, up 12% compared to the same period last year. We continue to see growth of WD-40 Specialist product across all three trade blocks and particularly strong growth in EIMEA and the Americas and where sales grew 14% and 12%, respectively.

我們的第三場必勝之戰是推動 WD-40 Specialist 的成長。今年迄今為止，WD-40 Specialist 產品的銷售額為 3,800 萬美元，比去年同期成長 12%。我們繼續看到 WD-40 Specialist 產品在三大貿易區內持續成長，其中 EIMEA 和美洲的成長尤為強勁，銷售額分別成長了 14% 和 12%。

As we continue to embrace our new mantra, few things, many places, bigger impact, we will review our portfolio to ensure we focus our resources on the products with the greatest growth potential as well as those new or existing that support our sustainability end. On a go-forward basis, we'll be targeting a compound annual growth rate for net sales of the WD-40 Specialist of greater than 15% in reported currency.

隨著我們繼續秉持新的理念“少量產品、多地點、更大影響”，我們將審查我們的產品組合，以確保我們將資源集中在具有最大增長潛力的產品以及支持我們可持續發展的新產品或現有產品上。展望未來，我們的目標是 WD-40 Specialist 淨銷售額的年複合成長率達到 15% 以上（以報告貨幣計算）。

A final Must-Win Battle number four is the turbocharge digital commerce, review digital commerce as an accelerator for all our other Must-Win Battles. E-commerce sales were up 9% year-to-date. The digital channel is so much more than just a sales platform. It's a powerful tool for building brand awareness and educating end users about our products. One example is our Training the Trades program, which offers technical training and skill development to aspiring technicians and trades people worldwide.

最後一個必須贏的戰役是渦輪增壓數位商務，將數位商務視為我們所有其他必須贏的戰役的加速器。今年迄今，電子商務銷售額成長了 9%。數位管道不僅僅是一個銷售平台。它是建立品牌知名度和向最終用戶介紹我們產品的強大工具。其中一個例子就是我們的「行業培訓」計劃，該計劃為世界各地有抱負的技術人員和行業人士提供技術培訓和技能發展。

Over the past seven years, have expanded from training approximately 6,000 trades people in one country, the facilitating 200,000 completed trainings each year across more than 20 countries with pro-focused educational content reaching millions more.

在過去的七年裡，我們的培訓範圍從在一個國家培訓約 6,000 名技術人員，發展到每年在 20 多個國家完成 200,000 次培訓，以專業為中心的教育內容惠及數百萬人。

In fiscal year '25, we aim to create more than 15 million online impressions and distribute more than 175,000 product samples for skilled trade professionals, effectively putting many can in and around the world. The digital channel has provided us with a tremendous opportunity to train more future trades people globally, faster.

在 2025 財年，我們的目標是創造超過 1500 萬次線上展示，並向熟練的貿易專業人士分發超過 175,000 個產品樣品，從而有效地在世界各地投放大量產品。數位管道為我們提供了巨大的機會，讓我們能夠在全球範圍內更快地培訓更多未來的技術人才。

Now let's move to the second element of our Four-by-Four strategic framework, our strategic enablers, which emphasize operational excellence. Today, I'll provide an update on strategic enablers, 1 and 3. At WD-40 Company, we believe our greatest assets cannot be found on a balance sheet, but rather it resides within our talented global team.

現在讓我們討論「四乘四」策略框架的第二個要素，即我們的策略推動因素，它強調卓越營運。今天，我將提供有關策略推動因素 1 和 3 的最新資訊。在 WD-40 公司，我們相信我們最大的資產不是在資產負債表上，而是在我們才華橫溢的全球團隊中。

Therefore, it makes sense that our first strategic initiative is to ensure a people first mindset. For over 20 years, we've measured employee engagement every two years, not just to track progress but to drive improvements.

因此，我們的首要策略舉措就是確保以人為本，這是有道理的。20 多年來，我們每兩年都會對員工敬業度進行一次衡量，不僅是為了追蹤進度，也是為了推動改善。

However, in today's volatile certain complex ambiguous times, we recognize the need to develop more frequent and effective ways to listen to our employees. This allows us to get a real-time feedback, enhance our culture and shift from employee engagement to true employee inspiration.

然而，在當今這個動盪、複雜、模糊的時代，我們意識到需要開發更頻繁、更有效的方式來傾聽員工的意見。這使我們能夠獲得即時回饋，增強我們的文化，並從員工參與轉變為真正的員工激勵。

Once again, we measure employee engagement, and I'm extremely proud that we've been able to increase our employee engagement index score to 94%. In addition, 94% of our employees agree that they understand the strategy for achieving WD-40 Company's future goals and ambition.

我們再次衡量員工敬業度，我非常自豪我們能夠將員工敬業度指數得分提高到 94%。此外，94% 的員工同意他們了解實現 WD-40 公司未來目標和抱負的策略。

This is important because when employees are highly engaged and understand the organization strategy, it creates a more cohesive, motivated and productive workforce to drive the organization towards its goals. I want to take a moment to say thank you to all of our employees for their dedication, hard work and passion, it's the because of you that our company can achieve great things.

這很重要，因為當員工高度參與並了解組織策略時，就會形成一支更有凝聚力、更有動力、更有效率的勞動力隊伍，推動組織實現其目標。我想花點時間感謝我們所有的員工，感謝他們的奉獻、努力和熱情，正是因為你們，我們的公司才能取得偉大的成就。

Moving on to strategic enabler number 3, achieve operational excellence and supply chain. Through this strategic enabler, we're advancing our global supply chain strategy to both drive economic value and support our sustainability agenda.

接下來是策略推動因素 3，實現卓越營運和供應鏈。透過這項策略推動因素，我們正在推動我們的全球供應鏈策略，以推動經濟價值並支持我們的永續發展議程。

This fiscal year, we strengthened global partnerships with key suppliers leading to improved efficiencies, supply chain optimization and tangible cost savings. Based on what we know today, we believe these cost savings will largely offset the financial impact of any potential tariffs for the remainder of this fiscal year.

在本財年，我們加強了與主要供應商的全球合作夥伴關係，從而提高了效率、優化了供應鏈並實現了切實的成本節約。根據我們今天所了解的情況，我們相信這些成本節省將在很大程度上抵消本財年剩餘時間內任何潛在關稅帶來的財務影響。

Generally speaking, we expect any potential tariffs from what we know today to have a minimal global impact in our business, thanks to our highly diversified supply chain. By sourcing raw materials and manufacturing products close to our customers and end users, again both economic and environmental advantages while also naturally mitigating most of the impact of tariffs.

總體而言，由於我們高度多樣化的供應鏈，我們預計任何潛在的關稅對我們的全球業務的影響都將微乎其微。透過在靠近客戶和最終用戶的地方採購原材料和製造產品，我們再次獲得了經濟和環境優勢，同時也自然減輕了關稅的大部分影響。

However, given the dynamic nature of the environment, predicting exact outcomes is challenging, and we do have markets within the Americas, especially in Mexico and Canada, representing around 6% of our global business that may be impacted more significantly.

然而，鑑於環境的動態性質，預測確切的結果具有挑戰性，而且我們在美洲確實有市場，特別是墨西哥和加拿大，約占我們全球業務的 6%，這些市場可能會受到更大的影響。

As a precaution, we've taken steps to build inventory in certain markets to mitigate potential tariff impact in the short term. Beyond FY25, we do expect to see higher inflation like most businesses, and we will likely need to modestly adjust prices in certain markets to offset that impact.

作為預防措施，我們已採取措施在某些市場建立庫存，以減輕短期內潛在的關稅影響。在 25 財年之後，我們確實預期會像大多數企業一樣出現更高的通膨，我們可能需要適度調整某些市場的價格以抵消這種影響。

With that, I'll now turn the call over to Sara.

說完這些，我現在將電話轉給 Sara。

Thanks, Steve. Today, I will share a brief update on the anticipated divestiture of our home care and cleaning business in the Americas and the UK, provide insight into our business model, and review some highlights from our second quarter results. I will also share an updated outlook for fiscal year 2025.

謝謝，史蒂夫。今天，我將簡要介紹我們預期在美洲和英國剝離的家庭護理和清潔業務的最新情況，深入了解我們的商業模式，並回顧我們第二季度業績的一些亮點。我也會分享 2025 財年的最新展望。

Last quarter, we met all the criteria to classify the assets we intend to sell as held for sale on our balance sheet, indicating progress on this journey. While we do not have a detailed update for you today on the anticipated divestiture, I can share with you that the Investment Bank we have engaged continues to have discussions with multiple potential suitors on our behalf.

上個季度，我們滿足了將我們打算出售的資產歸類為資產負債表上的持有待售資產的所有標準，這表明這一進程取得了進展。雖然我們今天沒有向您提供有關預期資產剝離的詳細更新信息，但我可以告訴您，我們聘請的投資銀行將繼續代表我們與多個潛在買家進行討論。

While there are no certainties on closing a deal with potential buyers and going to the market, our expectation is that we will likely complete the divestiture of these brands over the coming months. We will provide further updates on the divestiture process as appropriate.

雖然目前還不確定是否能與潛在買家達成交易並進入市場，但我們預計未來幾個月內我們可能會完成這些品牌的剝離。我們將根據需要提供有關剝離過程的進一步更新。

Our 55/30/25 business model continues to be a long-term beacon that we will move toward and align with over time. In the short to midterm, we continue to think about each critical component of the model in a range.

我們的 55/30/25 商業模式將繼續成為我們長期的燈塔，我們將隨著時間的推移不斷朝著這個模式邁進並與之保持一致。在短期到中期，我們將繼續思考模型中每個關鍵組成部分的範圍。

Let's start with a look at our second quarter gross margin performance. We target a range of 50% to 55% for gross margin, and we have made significant progress improving our gross margin over the last several quarters. In the second quarter, our gross margin was 54.6%, up from 52.4% last year. This represents an improvement of 220 basis points compared to the second quarter of last year.

讓我們先來看看我們第二季的毛利率表現。我們的目標是將毛利率控制在 50% 至 55% 之間，過去幾季我們在提高毛利率方面取得了顯著進展。第二季度，我們的毛利率為54.6%，高於去年的52.4%。與去年第二季相比，這一數字提高了 220 個基點。

Gross margin benefited 110 basis points from lower cost of our cans and 90 basis points from lower costs associated with specialty chemicals used in the formulation of our products. We are also happy to share with you that gross margin improved in both EIMEA and the Americas this quarter compared to the second quarter of last year.

由於罐頭成本降低，毛利率提高了 110 個基點，而由於產品配方中使用的特種化學品相關成本降低，毛利率提高了 90 個基點。我們也很高興地與大家分享，與去年第二季相比，本季 EIMEA 和美洲的毛利率均有所提高。

Within EIMEA, gross margin improved 440 basis points to 58.1%. The Americas improved their gross margin by 70 basis points to 50.1%. In Asia Pacific, gross margins remained steady at 58.4%, which was a slight decline of 10 basis points.

在 EIMEA 地區，毛利率提高了 440 個基點，達到 58.1%。美洲地區的毛利率提高了 70 個基點，達到 50.1%。亞太地區毛利率維持穩定在58.4%，略降10個基點。

As a reminder, gross margin recovery has been a central focus for senior leadership, who are incentivized to recover gross margin to 55% and beyond. Year-to-date, our gross margin was 54.7%, up from 53.1% last year. Excluding the impact of the home care and cleaning businesses we plan to divest, our gross margin is 55.2%, positioning us to exceed 55% by the end of fiscal year 2025.

提醒一下，毛利率的恢復一直是高層領導的重點，他們有動力將毛利率恢復到 55% 甚至更高。年初至今，我們的毛利率為 54.7%，高於去年的 53.1%。不計入我們計劃剝離的家庭護理和清潔業務的影響，我們的毛利率為 55.2%，到 2025 財年末將超過 55%。

In fact, we currently believe we will achieve gross margin of between 55% and 56% in fiscal year 2025, one year earlier than previously projected. There are things that could knock us off course, and we continue to carefully observe the cost landscape, impact of tariffs, timing of execution of our supply chain cost initiatives and our success in divesting of our assets held for sale. However, we are very happy with the significant improvements we have seen to gross margin over the last several quarters and we believe we will be above our target of 55% for the fiscal year.

事實上，我們目前認為，2025財年的毛利率將達到55%至56%之間，比先前預測的提前一年。有些事情可能會讓我們偏離軌道，我們將繼續仔細觀察成本狀況、關稅的影響、供應鏈成本計劃的執行時間以及我們剝離待售資產的成功情況。然而，我們對過去幾季毛利率的顯著提高感到非常高興，我們相信本財年的毛利率將超過 55% 的目標。

Now turning to our cost of doing business, which we define as total operating expenses less adjustments for certain noncash expenses. Cost of doing business is primarily comprised of three areas, investments in our employees, investments in building our brand globally and freight expense to get our products to our customers.

現在談談我們的營運成本，我們將其定義為總營運費用減去某些非現金費用的調整。經營成本主要包括三個面向：對員工的投資、對全球品牌建立的投資、將產品運送給客戶的運費。

Cost of doing business as a percentage of net sales is how we measure how efficient we are at operating our business. We target a range of 30% to 35% as a percentage of net sales for our cost of doing business. This quarter, our cost of doing business as a percentage of net sales was 38% compared to 36% in the same period last year.

經營成本佔淨銷售額的百分比是我們衡量經營業務效率的標準。我們的目標是將淨銷售額的 30% 至 35% 作為營運成本。本季度，我們的經營成本佔淨銷售額的百分比為 38%，而去年同期為 36%。

In dollar terms, our cost of doing business increased $4.7 million or 9%, primarily due to higher employee-related expenses including higher accrued incentive compensation and stock-based compensation expense.

以美元計算，我們的營運成本增加了 470 萬美元，即 9%，主要是由於員工相關費用增加，包括應計激勵薪酬和股票薪酬費用增加。

In addition, investments made in brand building activities increased period-over-period. As a percentage of sales, our A&P investment was 5.1% compared to 4.8% in the second quarter of the prior year. Our A&P investment is currently tracking below our full year guidance of 6% due to the timing of promotional programs.

此外，品牌建立活動的投資也逐年增加。我們的廣告與宣傳投資佔銷售額的百分比為 5.1%，而去年第二季為 4.8%。由於促銷計劃的時間安排，我們的廣告和宣傳投資目前低於全年預期的 6%。

However, we have several brand building activities planned for the second half of this fiscal year, which we estimate will bring our A&P investment in line with our projected guidance of approximately 6% of net sales. We expect to see improvements in our cost of doing business metric over time as sales grow, which is the most important factor in managing our cost of doing business towards our long-term target of 30% to 35%.

然而，我們計劃在本財年下半年開展幾項品牌建立活動，我們估計這將使我們的廣告和宣傳投資與我們預計的約佔淨銷售額 6% 的指導方針相一致。隨著銷售額的成長，我們預期我們的營運成本指標會逐漸改善，這是我們管理營運成本以實現 30% 至 35% 的長期目標的最重要因素。

Turning now to adjusted EBITDA. We believe looking at adjusted EBITDA as a percentage of sales is beneficial to measure our profitability and to assess operational efficiency. Our 25% target for adjusted EBITDA margin is a long-term aspiration. However, we continue to believe we can move adjusted EBITDA margin back to our midterm target range of 20% to 22%.

現在來談談調整後的 EBITDA。我們認為，將調整後的 EBITDA 視為銷售額的百分比有利於衡量我們的獲利能力和評估營運效率。我們的調整後 EBITDA 利潤率 25% 的目標是長期願望。不過，我們仍然相信，我們可以將調整後的 EBITDA 利潤率恢復到 20% 至 22% 的中期目標範圍。

In second quarter, our adjusted EBITDA margin improved slightly to 18% compared to 17% in the same period of last year. We believe looking at adjusted EBITDA in dollar terms can also be useful for assessing absolute performance.

第二季度，我們的調整後 EBITDA 利潤率略有提高，為 18%，去年同期為 17%。我們認為，以美元計算的調整後 EBITDA 也有助於評估絕對業績。

In the second quarter, our adjusted EBITDA was $25.8 million, up 10% from prior year. As we've mentioned previously, as we successfully divest the brands are held for sale, we will need some time to digest the impacts.

第二季度，我們的調整後 EBITDA 為 2,580 萬美元，比上年增長 10%。正如我們之前提到的，由於我們成功剝離了待售品牌，我們需要一些時間來消化其影響。

Although these home care and cleaning brands produce a lower gross margin than our maintenance products, there is a lower level of operating expenses associated with these brands, primarily because no employees or resources are fully dedicated to them.

雖然這些家居護理和清潔品牌的毛利率低於我們的維護產品，但這些品牌的營運費用也較低，主要是因為沒有員工或資源完全致力於這些品牌。

If we successfully divest these brands, we will lose approximately $23 million in annual revenue, but with little associated operating expenses. As a result, our cost of doing business and adjusted EBITDA metrics, we'll see a temporary setback on a percentage basis.

如果我們成功剝離這些品牌，我們每年將損失約 2,300 萬美元的收入，但相關的營運費用卻很少。因此，我們的營運成本和調整後的 EBITDA 指標將會出現百分比的暫時下降。

However, selling these brands will position us as a higher growth, higher gross margin company while also freeing up capacity for employees to focus on higher priority projects that align with our strategic framework.

然而，出售這些品牌將使我們成為一家成長更快、毛利率更高的公司，同時也能釋放員工的生產力，使他們能夠專注於符合我們策略框架的更高優先事項的專案。

Now let's discuss operating income and EPS as well as a noncash tax event that impacted our reported results. Operating income improved to $23.3 million in the second quarter, an increase of 11% over the prior quarter.

現在讓我們討論一下營業收入和每股盈餘以及影響我們報告結果的非現金稅收事件。第二季營業收入增至 2,330 萬美元，較上一季成長 11%。

Diluted earnings per common share for the quarter were $2.19 compared to $1.14 for the second quarter last year. This quarter, we recorded a noncash event that materially impacted our net income and EPS. In fiscal year 2019, we took an uncertain tax position related to the Tax Cuts and Jobs Act specifically for calculating the onetime toll tax on unremitted foreign earnings. This resulted in a reduction in earnings in 2019.

本季每股普通股攤薄收益為 2.19 美元，去年第二季為 1.14 美元。本季度，我們記錄了一項非現金事件，該事件對我們的淨收入和每股盈餘產生了重大影響。在 2019 財年，我們採取了與《減稅與就業法案》相關的不確定稅務立場，特別是針對未匯出海外收入的一次性通行稅進行計算。這導致2019年收益減少。

With the recent expiration of the federal statute in December, the company released the unrecognized tax benefit associated with this mandatory onetime toll tax. The release of this tax benefit resulted in a favorable income tax adjustment of $11.9 million this quarter.

隨著聯邦法規於 12 月到期，該公司解除了與此項強制性一次性通行費稅相關的未確認稅收優惠。此項稅收優惠的發布導致本季所得稅調整有利金額為 1,190 萬美元。

Given the significance of this tax benefit, which resulted in a favorable impact of $0.87 for the quarter, we have backed this noncash event out of EPS as a non-GAAP adjustment. Diluted earnings per common share on a non-GAAP adjusted basis were $1.32 in the second quarter compared to $1.14 last year, reflecting an increase of 16%. Our diluted EPS reflects 13.6 million weighted average shares outstanding.

鑑於此項稅收優惠的重要性，其為本季度帶來了 0.87 美元的有利影響，我們已將此非現金事件作為非 GAAP 調整從 EPS 中剔除。第二季非公認會計準則調整後每股普通股攤薄收益為 1.32 美元，去年同期為 1.14 美元，成長 16%。我們的稀釋每股盈餘反映了 1,360 萬股加權平均流通股。

Now let's look at our capital allocation strategy, maintaining a disciplined and balanced capital allocation approach remains a priority for us. For the foreseeable future, we expect maintenance CapEx of between 1% and 2% of sales for fiscal year which is in line with our asset-light strategy. We continue to return capital to our stockholders through regular dividends and buybacks. Annual dividends will continue to be our priority and are targeted at greater than 50% of earnings.

現在讓我們來看看我們的資本配置策略，保持嚴謹、均衡的資本配置方式仍然是我們的首要任務。在可預見的未來，我們預期維護資本支出將佔本財年銷售額的 1% 至 2%，符合我們的輕資產策略。我們繼續透過定期股利和回購向股東返還資本。年度股利將繼續是我們的重點，目標是達到收益的 50% 以上。

On March 18, our Board of Directors approved a quarterly cash dividend of $0.94 per share. During the second quarter, we repurchased approximately 12,500 shares of our stock at a total cost of approximately $3.1 million under our current share repurchase plan. We will continue to be active in the market and expect to repurchase at least in our shares to offset those issued for equity compensation. Our objective is to return cash to investors in the most accretive manner.

3 月 18 日，我們的董事會批准了每股 0.94 美元的季度現金股利。在第二季度，我們根據目前的股票回購計畫回購了約 12,500 股股票，總成本約為 310 萬美元。我們將繼續活躍於市場，並期望至少回購股票以抵消為股權補償而發行的股票。我們的目標是以最具增值性的方式向投資者返還現金。

So let's turn to FY25 guidance, which we have made revisions to reflect our current view of the business. As a reminder, we issued this year's guidance on a pro forma basis, excluding the financial impact of the home care and cleaning brands we have classified as assets held for sale. While the exact timing of the transaction remains uncertain, we believe this approach will provide investors with clarity on the direction of the core business and help minimize the noise surrounding the transaction.

因此，讓我們轉向 FY25 指導，我們對其進行了修改以反映我們當前對業務的看法。提醒一下，我們以備考方式發布了今年的指引，其中不包括我們歸類為持有待售資產的家庭護理和清潔品牌的財務影響。雖然交易的具體時間仍不確定，但我們相信這種方式將為投資者提供核心業務方向的明確性，並有助於最大限度地減少圍繞交易的噪音。

In addition, this guidance excludes the release of a noncash onetime uncertain tax position that generated a favorable income tax adjustment. I encourage investors to review our second quarter fiscal year 2025 earnings presentation, which includes a pro forma view.

此外，本指南不包括產生有利所得稅調整的非現金一次性不確定稅務狀況的釋放。我鼓勵投資人查看我們 2025 財年第二季的財報，其中包括一份備考觀點。

Our updated guidance for fiscal year 2025 is as follows. Net sales growth from the pro forma 2024 results continues to be projected to be between 6% and 11%, with net sales between $600 million and $630 million, after adjusting for translation impacts of foreign currency.

我們對 2025 財年的最新指引如下。預計 2024 年預測業績的淨銷售額成長率仍將在 6% 至 11% 之間，調整外幣折算影響後，淨銷售額將在 6 億美元至 6.3 億美元之間。

Gross margin for the full fiscal year has been increased and is now expected to be between 55% to 56%. Advertising and promotion investment continues to be projected to be around 6% of net sales. Operating income continues to be projected to be between $95 million and $100 million, representing growth of between 6% to 12% over the pro forma 2024 results.

整個財年的毛利率已經提高，目前預計在55%至56%之間。預計廣告和促銷投資仍將佔淨銷售額的 6% 左右。預計營業收入仍將在 9,500 萬美元至 1 億美元之間，比 2024 年預測結果成長 6% 至 12%。

While we are raising our guidance from gross margin, our guidance for operating income remains unchanged due to the impacts of foreign currency exchange headwinds. The provision for income tax is now expected to be around 22.5% which is driving an increase to non-GAAP diluted earnings per share, which is now expected to be between $5.25 and $5.55.

雖然我們提高了毛利率預期，但由於外匯逆風的影響，我們的營業收入預期保持不變。目前預計所得稅撥備約為 22.5%，這將推動非 GAAP 稀釋每股收益增加，目前預計在 5.25 美元至 5.55 美元之間。

Non-GAAP EPS is based on an estimated 13.5 million weighted average shares outstanding. This range represents growth of between 11% and 17% over the pro forma 2024 results. This guidance assumes no major changes to the current economic environment, unanticipated inflationary headwinds, foreign currency exchange fluctuations, changes in trade tariffs and other unforeseen events may further affect the company's financial results.

非公認會計準則每股收益是基於預計的 1,350 萬股加權平均流通股。這一範圍代表 2024 年預測結果將成長 11% 至 17%。本指引假設當前經濟環境沒有重大變化，意外的通膨逆風、外匯波動、貿易關稅變化和其他不可預見的事件可能會進一步影響公司的財務表現。

In the event, we are unsuccessful in divesting the assets currently held for sale. Our guidance would be positively impacted by approximately $23 million in net sales, $6 million in operating income and $0.33 in diluted EPS on a full year basis.

事實上，我們未能成功剝離目前持有待售的資產。全年淨銷售額約 2,300 萬美元、營業收入 600 萬美元和稀釋每股收益 0.33 美元將對我們的預期產生正面影響。

That completes the financial overview. Now I would like to turn the call back to Steve.

財務概覽到此結束。現在我想把電話轉回給史蒂夫。

Thank you, Sara. In summary, what did you hear from us on this call? You heard that we experienced double-digit volume growth both in the second quarter and year-to-date, with particularly strong volume growth in EIMEA.

謝謝你，薩拉。總而言之，您在這次通話中聽到了我們的什麼訊息？您聽說我們在第二季和年初至今都經歷了兩位數的銷售成長，其中 EIMEA 的銷售成長尤為強勁。

You heard that after adjusting for estimated translation impact of foreign currency, net sales would have increased 9% compared to the prior year fiscal quarter. You heard the sales of our maintenance products were up 6% in the second quarter despite currency headwinds and at this performance aligns with our long-term growth target.

您聽說，在調整了預期的外幣折算影響後，淨銷售額將比去年同期成長 9%。您聽說了，儘管面臨貨幣逆風，我們維護產品的銷售額在第二季仍成長了 6%，這一表現符合我們的長期成長目標。

You heard that sales of WD-40 multi-use product were up 8% year-to-date. You heard that sales of WD-40 Specialist were up 12% year-to-date. You heard that we've been able to increase our employee engagement score to 94%.

您聽說 WD-40 多用途產品的銷售量今年迄今已成長了 8%。您聽說 WD-40 Specialist 的銷量今年迄今已成長了 12%。您聽說我們已經能夠將員工敬業度得分提高到 94%。

You heard that we've strengthened global partnerships with key suppliers, leading to improved efficiencies, supply chain optimization. And based on what we know today, we believe these cost savings will largely offset the financial impact of any potential tariffs for the remainder of this fiscal year.

您聽說我們加強了與主要供應商的全球合作夥伴關係，從而提高了效率並優化了供應鏈。根據我們目前掌握的情況，我們相信這些成本節省將在很大程度上抵消本財年剩餘時間內任何潛在關稅帶來的財務影響。

You heard that we've made improvements to gross margin over the last several quarters and that we believe will be above our target of 55% by the end of fiscal year 2025. And you heard that we made an upward revision to our full fiscal year '25 gross margin and EPS guidance.

您聽說我們在過去幾季中提高了毛利率，我們相信到 2025 財年末毛利率將超過 55% 的目標。您已經聽說了，我們對 25 財年全年毛利率和每股盈餘預期進行了上調。

Thank you for joining our call today. We'd now be pleased to answer your questions.

感謝您今天參加我們的電話會議。我們現在很高興回答您的問題。

(Operator instructions)

（操作員指示）

Daniel Rizzo, Jefferies.

傑富瑞的丹尼爾·里佐 (Daniel Rizzo)。

Good morning everyone. Thank you for taking my questions. If we can start with just with tariffs, I understand you're making some adjustments, but I was wondering how much you ship across borders, if you produce or produce and sell locally or how much tariffs will have an impact, both the tariffs that's being proposed by the US and I guess the retaliatory tariffs from China. Just any color you can provide on the ongoing volatile environment.

大家早安。感謝您回答我的問題。如果我們可以從關稅開始，我知道你正在做一些調整，但我想知道你有多少跨境運輸，如果你在當地生產或在當地生產和銷售，或者關稅會產生多大的影響，包括美國提出的關稅和我猜想的來自中國的報復性關稅。您可以在持續波動的環境中提供任何顏色。

Sure. Hi, Dan, it's Steve. So we are centralized supply chain. And so the tariff risk is somewhat mitigated by that. Of course, we're not fully immune. So in the United States, as you perhaps know, we manufacture for the US mostly in the US, there are small elements of components that are brought in.

當然。嗨，丹，我是史蒂夫。所以我們是集中的供應鏈。因此，關稅風險在一定程度上得到緩解。當然，我們並沒有完全免疫。因此，在美國，正如您可能知道的，我們主要在美國為美國製造產品，只有少量零件是從美國進口的。

But the vast kind of element of the supply chain in the US is reasonably tariff immune. Of course, there are costs such as steel tariffs that will work their way through as we go through, but they're being offset also by other costs.

但美國供應鏈中的大部分環節基本上都不受關稅影響。當然，鋼鐵關稅等成本會隨著我們的進程逐漸顯現，但它們也會被其他成本所抵銷。

And so this decentralized nature of our supply chain helps a lot. We've got a lot of supply chain optimization measures happening this fiscal year, and we currently believe as of today, what we see today and what we know today, that our supply chain optimization and cost-saving measures will largely offset any impact of tariffs for the remainder of this fiscal year. Beyond this fiscal year, we will kind of look at our forward cost base, and we kind of indicated that we will look at small to moderate inflationary plus type increases as we experience potential inflation going forward.

因此，我們的供應鏈的這種分散性有很大幫助。我們在本財年採取了許多供應鏈優化措施，目前我們認為，就今天所看到的和所了解的情況而言，我們的供應鏈優化和成本節約措施將在很大程度上抵消本財年剩餘時間關稅的影響。除了本財政年度之外，我們還將關注我們的遠期成本基礎，並且我們表示，隨著未來經歷潛在的通貨膨脹，我們將關注小幅到中度的通貨膨脹加類型增長。

Okay. So China announced retaliatory tariffs. It's very early, but you also announced or alluded to maybe restricting sales within the country and just doing other things that are kind of as a retaliation against US. I was wondering if that affects you guys at all that the restricting your product, the restricting what you can do? Or is there any signs of any potential emerging headwinds from that?

好的。因此中國宣布徵收報復性關稅。現在還為時過早，但您也宣布或暗示可能限制國內銷售，並採取其他措施來報復美國。我想知道這是否會對你們造成影響，限制你們的產品，限制你們能做的事情？或者是否有任何跡象表明這可能會帶來不利影響？

So as of today, we see no risk there. So we manufacture in China for China. And as you perhaps know, we export from China to the Asian markets as well as manufacturing in Australia, and we're ramping up manufacturing also in other Asian markets.

因此截至今天，我們認為那裡沒有風險。因此我們在中國為中國製造。您可能知道，我們從中國向亞洲市場出口產品，並在澳洲進行生產，我們也在增加其他亞洲市場的生產力度。

And so within China at the moment, we are kind of seen as a local brand in many places we operate around the world. And so as of today, we don't see any material risk to our operations in China because of our localized supply chain. And the fact that we have Chinese nationals fully operating our Chinese business we are seeing very much as kind of a local business in many places around the world.

因此，目前在中國，我們在世界各地經營的許多地方都被視為本地品牌。因此，截至今天，由於我們的本地化供應鏈，我們認為我們在中國的業務不會面臨任何重大風險。事實上，我們完全由中國公民經營中國業務，這在世界許多地方都被視為一種本地業務。

Okay, and thank you for that. And then you mentioned optimizing your supply chain. I was wondering if that means you're going from dual sourcing to sole sourcing or vice versa or just a little bit of color on that, if it means you're going to more sources to make it less -- more cost-effective maybe, but -- and a little more stable or if you're going to do one source to make it more optimized or how we should think about it?

好的，謝謝你。然後您提到優化您的供應鏈。我想知道這是否意味著您要從雙重來源轉向單一來源或反之亦然，或者只是對此進行一點說明，這是否意味著您要採用更多來源以使其更少 - 可能更具成本效益，但是 - 更穩定一些，或者您是否要採用單一來源以使其更加優化，或者我們應該如何考慮它？

So it's a combination of all those things. So the net result is that we have a a better, more diversified geographic footprint to our supply chain, which is serving the major areas of growth in the business whilst also extracting.

所以它是所有這些因素的結合。因此，最終結果是，我們的供應鏈擁有了更好、更多樣化的地理覆蓋範圍，既服務於業務的主要成長領域，又實現了提取。

So you may be aware that we -- we did invest in a global supply chain leadership position a couple of years ago, and we're starting to bear the fruit in terms of the high-quality analysis that's led to global cost savings and leveraging kind of our global partnerships. And so it's a combination of lots of things. It's leading to a much more kind of derisked localized supply chain, but also driving cost savings stores.

所以您可能知道，幾年前我們確實投資了全球供應鏈領導地位，並且我們開始在高品質分析方面取得成果，這帶來了全球成本節約並利用了我們的全球合作夥伴關係。所以它是多種因素的結合。這不僅會形成一種風險較低的本地化供應鏈，還會推動商店節省成本。

Does it take a while to kind of qualify a supplier? I mean is it a multiyear process? Is it a multi-month process? Or how does it work? And how easy is it to shift?

確定供應商的資格是否需要一段時間？我的意思是這是一個多年的過程嗎？這是一個持續數月的過程嗎？或者它是如何工作的？轉變有多容易？

Yes, there's a time lag, right? So bringing on, for example, a new aerosol fill that takes more than a year, you're looking at 18 months to 2 years to fully see that through. But we're well in the process. We have multiple moves around the world where that's already happening, and we're diversifying -- further diversifying our supply chain, whilst also optimizing for the global nature of our business in many areas.

是的，有時間差，對嗎？因此，例如，推出一種新的氣霧劑填充需要一年以上的時間，而你需要 18 個月到 2 年的時間才能完全完成。但我們進展順利。我們已經在世界各地採取了多項舉措，並且正在實現多元化——進一步使我們的供應鏈多樣化，同時也在許多領域優化我們業務的全球化性質。

Okay. And just two more questions. One, so your gross margins are going -- are expected to be a little bit better than expected, but the operating income is the same. So I assume that's from SG&A or it appears to be from SG&A. And I guess I just want to make sure if that's just coming from higher expected compensation expenses for the rest of the year or for something else that's keeping those SG&A expenses elevated through the end of the year?

好的。還有兩個問題。首先，預期你們的毛利率會比預期好一點，但營業收入是一樣的。因此我認為這是來自銷售、一般和行政費用，或看起來是來自銷售、一般和行政費用。我想我只是想確認一下，這是否只是因為今年剩餘時間預期薪資費用增加，還是因為其他原因導致銷售、一般和行政費用在年底前居高不下？

Hi Daniel, I can take that one. So the guidance -- the SG&A costs for the year are substantially as expected when we look out both in the first half and the back half of the year. The reason the operating income is not shifting with the increase in our margin is strictly from the impact of the foreign currency. So when you look at -- the air conditioner just went on in here. So the impact of foreign currency for the first half of the year has been a headwind.

嗨，丹尼爾，我可以接受這個。因此，從上半年和下半年來看，今年的銷售、一般及行政費用 (SG&A) 成本基本上符合預期。營業收入沒有隨著利潤率的提高而變化的原因完全是外幣的影響。所以當你看到——這裡的空調剛剛打開。因此，上半年外匯的影響是不利的。

And when we look at that for the full year, depending on which market you're looking at, the impact of that is now masking. The gross margin is masking the headwind of the foreign currency. So our operating income is expected to be in line with the initial expectations that we had at the beginning of the year.

當我們從全年角度看時，根據您所關注的市場，其影響現在正在被掩蓋。毛利率掩蓋了外匯的不利因素。因此我們的營業收入預計將與年初的初步預期一致。

But FX has fallen recently though. So could that provide some upside that's not currently being expected?

但外匯最近卻下跌了。那麼這是否能帶來一些目前未曾預料到的好處呢？

Potentially. When we look at the couple of the -- the biggest market that for us is the euro, and I would agree that the euro has trended up in the last month. When we put guidance together, we obviously are looking at more recent rates. And so that could be a tailwind for us if it holds in the back half of the year.

有可能。當我們觀察這兩個市場時——對我們來說最大的市場是歐元，我同意歐元在上個月呈現上升趨勢。當我們制定指導意見時，我們顯然會考慮更新的利率。因此，如果這種情況在下半年持續下去，對我們來說可能是一個順風。

Okay. And then last question just on FX. Is there a rule of thumb you guys have like a $0.01 move in the euro translates into excellent number of millions of dollars? Or is it not really that easy?

好的。最後一個問題是關於 FX 的。你們是否有一個經驗法則，例如歐元 0.01 美元的變動會轉化為數百萬美元的損失？或者說事情其實沒有那麼簡單？

It's not really that easy just because of the dynamics of the costs over in Europe. So we don't necessarily have a rule of thumb that we guide to on that.

由於歐洲成本的動態變化，這實際上並不是那麼容易。因此，我們沒有必要製定一個可以指導這個問題的經驗法則。

Alright. Thank you very much.

好吧。非常感謝。

Ladies and gentlemen, that does conclude our allotted time for questions. We thank you for your participation on today's conference call and ask that you please disconnect your lines.

女士們、先生們，我們的提問時間到此結束。感謝您參加今天的電話會議，並請您斷開線路。