Edgewell Personal Care Company (NYSE:EPC) Q2 2024 Earnings Call Transcript

Operator: [Operator Instructions] Our next question comes from Peter Grom with UBS.

Peter Grom : I just wanted to follow-up on the margin question. You kind of just touched on productivity promotion already, but can you maybe just unpack what you really expect from the different buckets and kind of how that builds to the 40 basis point increase in the guide? You mentioned no change in the back half. I think FX is a little bit better. Is the remainder of the 40 basis point increase really just the function of stronger productivity in the first half? And then just building on that, can you maybe just comment on what you’re seeing from a commodity perspective? You’ve started to see some costs tick higher here sequentially, so just would love to get some color on what you’re seeing across your core cost basket.

Rod Little : Yes, we think for the year productivity efforts will deliver about 40 basis points upside to what we had originally forecast. We think price and revenue management will be right around 30 basis points higher than what we had initially forecast. There’s a full year tailwinds. We think core inflation will continue to ease a bit helping as well. And then we anticipate mix and other items and that’s where I get into the capacity utilization challenges, et cetera, and promotional items working as headwinds. And so if you put all of that together, you would get to about a 40 basis point increase in our full year margin versus what we had contemplated. The question on the commodity basket’s a good one. And look, it’s choppy, right, and I would say overall, nothing has changed here versus our thinking a quarter ago.

You are right, there are always going to be movements within the basket. I think you see oil lately is moving to the low end. You see things like paper and pulp moving to the higher end. I think the team’s doing an excellent job of balancing that, but we don’t sit here today with any change in our risk profile to total commodity basket for the year.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Rod Little for any closing remarks.

Rod Little : Thank you everybody. We appreciate your continued interest and investment, if you are an investor in the company. We’ll work hard over the summer and we’ll reconnect with you again in August for an update. Thank you.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.