Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you clarify the impact of the negative factors from Q4 on Q1 2025, particularly regarding cold and flu and Essential Health? Are you expecting restocking of pediatric cold and flu medicine? A: We are not expecting an uptick in Q1 for pediatric cold and flu due to erratic patterns in the US and inventory destocking in China. The lingering impact of distribution disruptions in China will also take time to resolve. These factors will create a 3 to 4 point drag on Q1 results. (Thibaut Mongon, CEO; Paul Ruh, CFO)
Q: What are your category growth assumptions for 2025, and how do you see this playing out in the US versus internationally? A: We expect category growth to slow from 3%-4% to 2%-3% in 2025, primarily due to a lower impact of pricing. Consumers remain focused on health and are not compromising on quality, as seen by flat or declining private label penetration. (Thibaut Mongon, CEO)
Q: Can you provide more insight into the innovation pipeline for Skin Health and Beauty and potential shelf space gains in 2025? A: We are rolling out a stronger innovation pipeline in 2025, supported by influencer-led campaigns and increased healthcare professional engagement. We expect to regain leadership in key markets and expand distribution, particularly in Sun Care. (Thibaut Mongon, CEO)
Q: Can you elaborate on the temporary trade investments in your guidance and the expected impact on pricing and margins? A: We are making strategic pricing adjustments in the US to enhance competitiveness, focusing on select brands and codes. This will result in negative value realization in the US in the first half of 2025, but we expect positive value realization globally in the second half. (Thibaut Mongon, CEO; Paul Ruh, CFO)
Q: How do you plan to address the distribution challenges in China, and what changes are you implementing? A: We are replacing underperforming distributors and reclaiming responsibility for brand activation with key local retailers. This will improve brand activation and execution visibility in lower-tier markets. (Thibaut Mongon, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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