Edgewell Personal Care Company (NYSE:EPC) Q4 2023 Earnings Call Transcript

So as foreign exchange over time normalizes, as we catch up and get in balance with where inflation in pricing and product offerings are, that will normalize. I see there being kind of three big buckets of building blocks to the margin line. One is continued cost productivity work that we’ll have within our manufacturing logistics and distribution network. We still have lots of opportunity to optimize there. So, I think cost productivity will continue to be a driver. The second bucket would be priced in revenue management just good hygiene better capability around that and being accretive to margin every year as a building block as we go forward. And then the third one I would call out is healthier brands better innovation and better brand building showing up on shelf and online when consumers choose our brands.

And that’s a journey. We’re on it. We’ve made good progress around the desirability of our brand set with consumers. I think that will continue to improve. And with that, we’ll become incrementally more pricing, more margin power as we build that out for the future.

Dan Sullivan: Yes. Olivia just to your question on pricing in 2024, I would say to you the pure price lever is disproportionately being seen in international. You can think about markets where we have a leading position in segments so Japan Shave or Mexico Sun where we see further opportunities to take price, some of which has already been executed. I think you also see a piece though disproportionate in North America that Rod referred to around strategic revenue management. So, good promotional efficiency, improved trade terms, just good execution that drives benefit in unit, economics unit revenue. So you see both of those price more in international markets, good revenue management more in North America. That’s how we thought about 2024.

Olivia Tong: Thanks very much.

Dan Sullivan: Thanks, Olivia. Operator, next question please.

Operator: [Operator Instructions] With no further questions, this will conclude our question-and-answer session. I would like to turn the conference back over to Mr. Rod Little for any closing remarks.

Rod Little: Yes. Thank you everybody for your time. We look forward to the year ahead and delivering another year at or above algorithm growth rates. Thank you.

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