Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more color on the drivers of your updated organic sales growth guidance for Q4? A: Thibaut Mongon, CEO: We expect Q4 to be our strongest growth quarter due to the cumulative impact of our new playbook and easier year-over-year comparisons. Factors like last year's destocking and portfolio rationalization won't repeat, providing tailwinds. However, we are seeing a late start to the cold and flu season, which is a challenge.
Q: What are the recent trends in health and beauty, and how is China impacting your business? A: Thibaut Mongon, CEO: The external environment, including a slow sun season and deceleration in the skincare category, is challenging. We see continued softness in Asia. Internally, we are focusing on executing our playbook with precision and strengthening our team, including welcoming Andrew Stanleick to lead skin health and beauty in North America and Europe.
Q: Can you elaborate on the green shoots you're seeing and the impact of increased A&P investments? A: Thibaut Mongon, CEO: We are transforming our operations and increasing investments. In skin health and beauty, we see green shoots in areas like Neutrogena's face and sun platforms. Our marketing campaigns, especially on social media, are connecting well with younger audiences, evidenced by significant engagement metrics.
Q: How are you managing retailer inventory levels and the impact of store closures in the drug channel? A: Thibaut Mongon, CEO: In the U.S., inventory levels are low, and we don't expect further destocking. Globally, cautious ordering patterns persist in self-care categories. We work closely with retail partners to manage assortments amid store closures, ensuring consumers can access our trusted brands.
Q: What are your expectations for skin health and beauty in 2025? A: Thibaut Mongon, CEO: We aim to return the segment to growth in 2025 by expanding green shoots and countering U.S. category deceleration with better execution, innovation, and campaigns. We are focused on securing more distribution points and enhancing in-store prominence.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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