Hillenbrand, Inc. (NYSE:HI) Q1 2023 Earnings Call Transcript

John Franzreb: Perfect. And what are those margin profile drivers, is the increase of aftermarket sales, bringing it from the low-20s to the 30s. Could you talk about the steps that you need to do to get to the 30% threshold and a reasonable timeline to get there?

Kim Ryan: Yes. So, it’s €“ if you were to pull the playbook out on this and the steps that we have taken in our other businesses, it’s really around a couple of key steps. I mean we isolate that aftermarket business. And instead of kind of mixing it in with the capital business, we isolate it. We truly understand the profitability of that business. We named a leader that’s going to be focused on aftermarket. We put in process some disciplines around pricing, around proactive selling, around making sure that we have a clear vision of the installed base and that we understand where we are winning and where we have opportunities to improve share of wallet. And then it’s really just an execution of a very specific playbook that has been determined by really analyzing the information, identifying the opportunities and deploying dedicated resources that go €“ turn those opportunities into reality.

I know it sounds very simple. It’s €“ when you are running a business, as I have done many times in my career, it’s easy to kind of lose sight of sometimes stepping back and seeing just a very specific playbook on how to go after that, can actually be really effective rather than trying to go after everything at once. And that has been successful in each of our businesses as we brought them into our operating model.

John Franzreb: Great. Thanks for all the color. Appreciate it. I will get back into the queue.

Kim Ryan: Thank you.

Operator: Thank you. We reached the end of our question-and-answer session. I would like to turn the floor back over for any further or closing comments.

Kim Ryan: Alright. Well, thank you everyone for joining us on the call today. We appreciate your ownership and your interest in Hillenbrand, and we look forward to talking to you again in May when we will report our fiscal second quarter results. We wish all of you a great day. Thank you.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.