Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What are the biggest changes required by the new program in terms of culture and accountability? A: Scott Huckins, President and CEO, explained that the new approach focuses on prioritization and targeted growth across the retail landscape. The company is adopting a more holistic and top-down approach to innovation and cost management, rather than focusing on individual projects.
Q: How should we think about inflationary expectations and input costs for this year? A: Nathan Lowe, CFO, noted that commodities are expected to be a significant headwind, with prices up compared to last year. The company plans to use productivity improvements and other tools to offset these costs, although tariffs have not been factored into the current outlook.
Q: Can you comment on the competitive environment in the waste bags category? A: Scott Huckins stated that the promotional environment in waste bags has returned to pre-pandemic levels. Despite this, the pricing in the Waste & Storage segment remained flat, indicating a stable competitive landscape.
Q: What is the impact of tariffs on your business, particularly concerning aluminum? A: Nathan Lowe mentioned that purchases from impacted geographies represent a small percentage of overall costs. The company is primarily US-centric, which could provide a competitive advantage if tariffs impact competitors more significantly.
Q: How are you approaching distribution and innovation opportunities? A: Scott Huckins highlighted that the company is focusing on innovation-led distribution opportunities, such as Hefty Presto close and Reynolds Cooking & Baking products. The company plans to leverage its brands to enter adjacent categories both organically and through potential bolt-on acquisitions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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