Javier Escalante

Luc framed the gross-margin bridge qualitatively -- productivity primary offset plus strategic pricing -- without quantifying each lever.

Linda declined specifics. Saw opportunity to move faster with full control vs JV structure. Getting innovation to market faster, making changes faster, seeing inflection in Glad as result. Board evaluates multiple factors: buyer interest, strategic fit, organizational capacity. Ending JV was right decision.

Luc: ~1pt price/mix headwind at company level, consistent with full-year plan. Quarterly noise from club promo timing not fully reflected in same P&L period. Don't expect big Q4 shift, tracking as expected on price/mix for remainder of year.

Luc: ~8¢ Q3 adjustment remaining, then done with one-time digital investment spend. Ongoing tech investment normal course OpEx offset by automation savings. Household: consumption/share loss is volume-driven, price/mix headwind from size shift to larger packs and channel shifting. NRM plans offsetting at total portfolio level.

Linda confirmed both CLX and competitors promoting more in litter. CLX intentionally increased promo to rebuild share. Scoop Away Costco promotions disproportionately impact Circana readings due to large event size and consumer shift to club. Overall competitive category, nothing different than expected.

Luc said -4% price/mix in Q4 includes one-time trade accrual adjustment. Excluding that, -2% (consistent with full-year average). Household -6% driven by lapping significant merchandising events from prior year. Expect -1% going forward in FY26.

Linda rejected price realignment. Cat Litter: superiority gap is the issue, not pricing. Plans for innovation and execution improvement. Glad: value creation through innovation (stronger bags, better experiences) remains the strategy. Bahama Bliss doing well. Consumers willing to pay premium for better experience.

Luc confirmed math: full-year organic 4-5%, Q4 organic 4-8% (including ERP 7-11%), ex-ERP Q4 about -3%. Driven by consumption slowdown persisting plus retailer inventory headwinds.

Linda differentiated: Glad facing deep discounting from branded competitor (below private label in some cases, viewed as unsustainable). Innovation (Bahama Bliss) doing well. Litter competitive but innovation-driven category with many unmet needs. New strongest odor control product doing well.

Linda said this is a full greenfield S/4HANA implementation replacing 20+ year old system, plus global finance, innovation capabilities, AI, and data lake. Not just an ERP upgrade. Kevin added admin should go from 15-16% to 13% of sales as productivity is realized.

Linda confirmed 0-1% category growth assumption. Dismissed hurricane impact as immaterial. Strong demand plans and advertising are the real drivers of outperformance.

Rick confirmed Henkel raised promotion 1,100 basis points and said tariff refunds are fueling elevated promotion rather than the usual commodity-driven pullback.

$25-30M is full-year incremental inflation from oil derivatives. Company enters each year ~60% hedged. Offsetting with productivity. CFO: original 160bps inflation now ~200bps but covered by additional offsets.

CEO deflected competitor-specific question. Emphasized CHD's advantaged position: promoting less yet gaining share. ARM & HAMMER at half the price of leading detergent with great efficacy.

CEO called VMS exit one of the biggest strategic pivot points in company history. Private label exposure dropped 12% to 5%. Every minute on Vitamins was a minute not spent growing ARM & HAMMER and core brands.

CEO attributed premium growth to: problem-solution efficacy, fresh branding vs tired legacy competition, social media presence, and low household penetration with large runway.

CEO detailed laundry dynamics: one competitor catching up on concentration, one raising prices at top end/spending in lower tiers, one retailer launching premium private label.

CEO noted drug stores have flat traffic and heavy vitamin promotions. Online is half of all vitamins, requiring specific innovation strategy for that channel.

Dierker acknowledged online channel is critical for vitamin recovery. On laundry, expressed extreme satisfaction with Deep Clean incrementality beating all metrics and confirmed ARM & HAMMER has no brand confusion issues unlike the failed OXICLEAN premium detergent launch.

Mike said the Arbex JV creates a world-class tissue competitor while sharpening the company's focus and execution in international personal care.

Hsu assessed Kenvue challenges as executional (NA skincare, NA oral care, China) not structural. Leadership team ~50-50 from both companies. Torres highlighted over 40 integration teams with good synergy line of sight.

Hsu noted Chinese imports competing with private label at same tier. Torres expressed confidence in global product quality, citing testing data and market response.

Torres detailed promotional shift from Q3 to Q4 for trial driving, emphasized promotion below 2019 levels. Chinese diaper competition interacting more with private label than brands.

Hsu emphasized PNOC discipline with focus on product quality improvement rather than pricing or promotion. Promotion viewed as trial vehicle for innovation, not growth driver.

CFO noted SG&A includes advertising expenses and confirmed Our Vue Forward program is on track for $350M savings by 2026. J&J separation enabling lower cost base.