Edgewell Personal Care Company (EPC) Earnings Call Transcript & Summary

Good morning, everyone, and thank you for rejoining us on our Goldman Sachs Global Staples Forum Webcast. I'm thrilled to welcome the Edgewell Personal Care Company up next to the virtual stage. EPC, in the categories it competes in, have been undergoing persistent change as the business was spun off of Energizer. Management has been leading the charge to evolve its portfolio, cost profile and culture. To walk us through this and tell us what to expect next, we have 2 members of the leadership team. Mr. Rod Little joins us on this virtual stage who recently entered his third year with the company and embarked on his second year as CEO. And joining him is Mr. Dan Sullivan, who's recently entered into his second year as CFO of the company. Gentlemen, thank you both for joining us here today. And Rod, why don't we start with you to get the ball rolling on questions. And a quick reminder or a quick notice to everyone in the audience. Those of you who are tuned into the webcast, there is a question submission box there. By all means, feel free to submit a question. And assuming it makes sense and is on point, I'll be more than happy to try to weave it into the conversation or to ask it near the end. So with that, Rod, a year ago, we were together on a real stage, not a virtual stage, discussing how the combination of Edgewell and Harry's would transform the company into a next-generation consumer products platform. Now you're moving forward without Harry's. How have you had to evolve your strategy as a result? And how do you intend to compensate from what you were hoping to gain from Harry's.

Yes. Thank you, Jason, and good morning, everyone. You're right. We were on the stage actually with Andy and Jeff from Harry's had joined us at the conference a year ago in hopes to close the deal with the FTC blocking the deal. What I'll tell you is we were not standing still as we were running the business and evolving to be more competitive and frankly, win and create lots of value in the future. We were very focused over this past year on the fundamentals and improving our base brands, our business in a very disciplined way. And I think you've seen the business trends perform better. We've stabilized the business. We've got the top line to flat and even up in the last quarter, netting out all the coronavirus impacts and we've greatly improved the trends around gross margin as well. So the business is much healthier than where we were a year ago. One of the things we were getting as part of the Harry's transaction was an infusion of talent, new thinking and new approaches around digital, direct-to-consumer. And so we have very much moved forward organically and built a very strong team. We're better at every leadership position than we were. The final piece of the leadership puzzle comes together here shortly. We announced a couple -- on our earnings call 1.5 weeks ago that we were a couple of weeks away from naming a new Head of North America. That's here now. You'll see that come out very shortly. And the individual that we will name, I think, contains a skill set and has an experience and background that's digital as well as having a track record of success of building brands in an omnichannel way. And so I'm very confident from a leadership standpoint that we've got that in a good place and we're making big investments in digital, a new digital platform we're going with. We've got incremental heads that we have been recruiting for. We've been adding to the team already, but we've got incremental heads we're putting in place to do that. And as much as it's driving sales on our own direct-to-consumer channels, it's communicating with consumers and having access to their data in a very different way than we've had in the past. And so that's been more of a build versus buy in that case on both the talent and the new platform. And as I said, we're well down the path on that. The other thing that that we've done that we learned from the Harry's transaction that we needed to be better at was to build brands that resonate with the modern consumers and be more consumer centric, not only in our innovation in the technology we bring to market, how we talk about it, better packaging, better design, cleaner graphics, everything that resonates with the modern consumer today. And so we've made a lot of progress there. Within our own portfolio, we've got a brand, Bulldog, that we think deserves to have a much bigger role within the portfolio in addition to the Schick and Hydro brands on the men's side. And as you would have seen strategically, we've clarified the role of the Fem Care business and we've put a private equity-like structure and model in place with the team directly running that business, highly incented on Fem Care only results. And we've seen in very short time period, that business performed better, pre COVID-19. The trends were improving while we were actually in growth in the first quarter of this year and we continue to see those trends improve. So I think that's the other piece of the strategy that we've clarified, it is how we think about that business and we're committed to that business and think we can win. And then in Sun Care, I won't go into great detail, but we're in a, let's say, disrupted Sun Care season, we're growing share in the start to the season here. And Wet Ones before coronavirus was up 25% across the first and second quarter before we had the impacts. And as you know, you can't get that on shelf or an allocation on that now. In all of this, as we've clarified the portfolio, we've built the team, we've improved the capabilities, we now also sit here with a very clean balance sheet with net debt-to-EBITDA ratio at 1.9x as of the last quarter. And so I think we're -- that gives us optionality as we move forward as well. So we're encouraged with where the business is and I think excited about where we can take it with the new strategy and a portfolio that we think is built to win in the environment coming out of coronavirus.

That's helpful. I want to follow-on real quick before throwing a question Dan's way. You led off the answer with digital. You spent a fair amount of time on digital. I guess you talked about it quickly, but I'd love to hear you get a little more specific and define when you say you want to become more digital, more digital savvy, more digital competent and capable, what does it mean? Are we talking the ability to communicate with the consumer more digitally? Do you really see DTC as a big platform for you down the road or e-commerce? Just a little more context. So when we think -- when we dream the dream of EPC as a more digital platform, what should we be dreaming of there?

Yes. I see 3 legs to it, Jason. The first is being really good at marketing in digital channels. So the way we market with the shift off of live TV into more social digital marketing, you just think where are the consumers' eyeballs, particularly that younger millennial cohort, how did they consume information and being in those channels with really interesting messages that resonate, there's a marketing end of that of being really, really good to that and having performance marketing and analytical capabilities to fast cycle and change the message that resonates with that consumer. So that's the first piece. And that's as much around people and skill sets and agencies as well that are really, really good at that. And so we have been changing the people, adding people that have those skill sets and changing our agency relationships to work with really talented people. And we have a lot of success in-house with some of our brands, Jack Black, for example, is one of the best digitally marketed brands out there, over 50% of that business transacts online with our own DTC channel as well as with partners. So digital marketing is the first piece that we've been working to address. The second piece then is online selling in general. So whether it be through Amazon, walmart.com, target.com, other pure-play retailers, being very fit for purpose and having capabilities to partner with those retailers, to not only show up on searches on their sites in the right place, but to be a great back-end fulfillment partner and again having messages that resonate through those channels and being highly capable through those channels. And then the final piece is our own platform, direct-to-consumer. I don't think we'll have it everywhere on every brand. That's not the intent. And I think we don't expect it to be a channel that's going to grow to a point where we replace brick-and-mortar, but it's a channel we have to have. And as much as anything, it's interaction with the consumer off of our own direct channels, talking to the consumer, getting access to their data, more of them and having a conversation that not only gives them an experience that delights them as they interact with our brand, but giving them a chance to talk to us about what's missing, what did they like, what would they like to see different, and then building that back into not only our brand messaging, but ultimately, our innovation pipeline, so the things we bring are more interesting. So it's a sales orientation for sure, but it's really around consumer data. And it's also having the right platform beyond people that are good at doing that and we had a front-row seat to what that looks like. We've been working on that in parallel to get the right people in place and we actually have a very talented team in place, but you've got to have the right platform as well and I don't want to get technical, but we were trying to do that in an SAP hybris environment that's just not fit for purpose and flexible enough to fast cycle with the consumer. And so we're also changing the platform. We're actually doing that this month to a more flexible platform that we think will set us up to have success on DTC.

And how long does it take to build a platform that's fit for purpose?

Yes, it's flip the switch. So over the next month or 2, we'll be on the new platform fully.

Well, that's exciting. I look forward to some updates on that. And thank you for the clarification on all that. Dan, a question for you. As we look at EPC's business model and performance over the last year that you've been in the role, what would you say have been the most significant changes over that period, both operationally and financially?

Yes. Thanks, Jason. Really important question, I think. If you look at Edgewell over the last 12 months or so, it's very different than what you saw in the 18 to 24 months that preceded it. And not only in result and outcome, but in the way the business is being run. And I probably point to 3 or 4 things. One, and Rod hit on it initially, it starts with just the importance of stability, especially with respect to the top line. Something that Rod and I and the management team are absolutely maniacally focused on, right? So just stability of top line brings predictability to the business, it allows action and less reaction and our performance last year starts with this characteristic. We've got the business on far firmer footing at the top. And as Rod said, a flattish top line picture is kind of where we are. And that's very different than where we've been for many of the reasons that Rod highlighted. I think secondly, we have worked extremely hard to strengthen our gross margin profile from a period of declines that we saw again in that 18-month period leading up to a year ago. We've talked about a flat to even slightly accretive margin picture. We saw that actually in 2Q. We were up 50 basis points year-over-year. And that's reflective of a lot of things. It's reflective of the Fuel program, which I think we'll hopefully touch on in a bit around cost transformation and real productivity in your COGS business, it's around refining our promotional cadence and intensity and effectiveness. It's around revenue management and thinking about categories and price opportunities differently. And then the third thing I'd probably mention in the business model is cash generation. We have strong brands, we have healthy positions in really attractive categories and the reality is this business throws off some really healthy cash flow, $150 million to $200 million a year. And as Rod said earlier, that gives us great optionality as a business. We'll certainly talk about that later, I think, in terms of capital allocation. So those are 3 elements. I think it all comes together in sort of how we're running the business differently. Greater operational focus at the top and certainly our style and approach is deeper into the business. So we've put in place increased measurement, deeper analytics, and as a result, we think that we're faster, we think we're more agile. We're starting to get to a place where we're appropriately delegating into the organization where the real knowledge and ownership lies and holding folks accountability for -- accountable for results. And so a lot of factors, both in the business model and in the results that we've seen. And we certainly don't kid ourselves. We have a lot of work to do here. We're early in the efforts, many of which you heard Rod talk about to reshape this business, but we certainly feel like the last 12 months or so have really been encouraging in terms of results and behavior, and we look forward with confidence.

It's been great to see the progress. And it's great to hear Rod talking about the different platforms for growth, not just Wet Shave as the ship that's either going to sink you or lead to success. But nonetheless, it is a big piece of your business still. And it's clearly been top of mind for a lot of investors, given some of the turbulence and transition in the market. So I was hoping we could maybe spend a little bit of time just going deeper there. I think most investors look at your business and they think, this is a U.S.-centric branded men's Wet Shave business, but I know that perception is a bit different than reality. So first, can we step back and can you contextualize your Wet Shave business overall? And then delve in a bit to how you're seeing the performance ebb and flow and evolve as time moves forward and the game plan for both you and some of your competitors evolve?

Yes. So, Thank you, Jason, and good question, and thank you for asking the question because you're right around -- we still have a big exposure to Wet Shave globally. It's our biggest business. But increasingly, certainly, if you look back where we were a few years ago versus where we are today, we have a Sun, Grooming and Skin Care portfolio with Jack Black, Bulldog, Wet Ones, Banana Boat, Hawaiian Tropic now that it's roughly $0.5 billion and all of those brands are healthy. We'll come to the Sun category piece, I'm sure, in a moment. And moving forward, most of them double digits actually on their growth. Fem Care, we've talked about, we've stabilized that business, which had been a mid-single-digit decline for the last 4 or 5 years. We've gotten that to a much better place. And so you're looking at just under $1 billion with that part of the portfolio that you've not asked the question about, but it's proportionately a bigger piece of the pie now. And so then when you look at Wet Shave, and you break that down, the bulk of the Wet Shave business for us is outside the U.S. in markets that have not been disrupted, that are more traditional markets around the -- let's call it, the legacy competition structure is still intact. The U.K. is the only market outside the U.S., where you've had some disruption with new entrants. And I think our prediction is that it gets tougher to expand that model out when you don't make money and it requires investment to grow the map geographically. And so bulk of our business outside the U.S. in Wet Shave, structurally, we think, still very attractive, very healthy. There's a shaving incident rate decline outside the U.S. that's been similar to the U.S., although not to the same level, not as bad. And so the category is a little better outside the U.S. on average. So if you then turn to the U.S. and you look at our Shave business, there's a really interesting stat that we talk about internally, we've not talked about it externally, but it's true. Wet Ones is a bigger business for us today based on its growth over the last couple of years than our U.S. men's branded Systems business. And so that's interesting in that, that U.S. Men's Systems business is less than 3% of our global sales, branded Men's Systems. And that gets all the headlines, that's what shows up in the scanner reports on Nielsen and IRI that people have visibility to. And so we -- what we have, interestingly enough, even in the U.S., and this is true globally, is we have a very diversified portfolio across branded Men's Systems, branded Women's Systems, and our women's business has been healthier than our men's business here in the U.S. and globally. We've got a nice Disposables business and we have the Private Label business, not only at -- that hits opening price point, but with the capability to co-create retailer by retailer and help them create an interesting own brand offering. We have roughly a 90 share of that Private Label business. And so when you play in all of those segments and tiers, not only do you play across all the forms, but we play across all the price points. Our biggest issue in the U.S. has been our inability to connect with the consumer in a way that's interesting and give them an offering, whether it be a brand message, a set of values that matches theirs, whether it be a clean package at shelf that's inviting and engaging that makes the consumer say, I want to try that. Harry's has done a very good job with that. When you unbox it and open it, having a razor that's got a really cool and interesting and modern design has been missing, those are the things that we need to address. And frankly, we are addressing around the marketing messaging, the pack design, the cleanliness of the packaging and at the core of it, a portfolio that has brands that play across all of the consumer segments with really interesting targeted messaging. That's what we have been working on. And I'll tell you, our U.S. Wet Shave business is right where we thought it would be in the plan. We built into the plan a fiscal year here where we were going to lose share in U.S. Wet Shave. We're growing share other places. We're growing other places, but we built this in because we knew we were going to be a distribution loss situation primarily on U.S. men's based on things that had happened in the past. And so our activity is focused on having a really good execution this year and in the '21 planogram sets as we start to talk to retailers and we have been talking to the biggest retailers about the innovation we will bring, the package design innovation we will bring, the product design innovation and the product messaging in a very different way as we start to hit the shelf in the '21 planogram sets. And I think that's the period of time where we touch bottom and then move forward into a different phase where the work around connecting with the consumer, architecting messages and products that resonate because we know we have the technology, right, us and Gillette have the best technology. We're the only ones who can grind sharp, durable blades consistently, and it's IP protected. That has not changed. And so as we fix the marketing messaging and the portfolio, and we build better partnerships with retailers where we have success with the consumer, the retailer naturally wants to partner with you more. So it's all that activity system that we're working laser-focused on around the U.S. Wet Shave business. That will obviously help us outside the U.S. as well. But that's the state of Wet Shave.

That's excellent context, particularly around U.S. branded Men's Systems being 3% or less of global sales. I don't think that statistic is appreciated by many investors out there. I want to dwell on Wet Shave just for a few more minutes because we're there and we started talking about it. So let's exhaust the topics here. You're talking with retailers in 2021 planograms already. You're talking to them in a time that we're in sort of unusual circumstances, both with COVID-19, shelter at home, and then, of course, what's rapidly evolved into a fairly recessionary backdrop. I'm curious, do you have these conversations? And as you think about the macro backdrop, how does it change, if at all, your thinking about the trajectory for your Private Label business? Do you expect that to grow? Are retailers looking to embrace it and support it more aggressively as we go throughout the back half of the year and into next year?

Yes. If you look back to the last recession, what, '08,'09 is a proxy, you did see Private Label grow, disposables were net winners of that around the consumer shift. I would expect to see the same, particularly if you start to get into recessionary environment that extends depression to follow some of the economic forecasts, take your own Goldman forecast of 25% unemployment. If we're in that space, then just you're going to have automatic trade down around price points and value. And so I would expect that to be true. What's different than last time is there is new competitors like Harry's and Dollar Shave Club, who are more in that value price point that weren't there before, right? So that's something we're looking at. But the interesting piece is the market was already so disrupted with so many people wearing facial hair. You're seeing that if you just do the eye test when you do run into people in this environment, that's certainly something category wise that we're also watching very closely is incident rates. I think as long as we're in more of this lockdown mode, which is starting to end and people are getting out more and opening up, there will be less shave incidents. Just naturally, that's the case. But I think both us and retailers are very bullish and optimistic on the category going forward because regardless of shave incident rates, you're having trends towards more hair removal across the full body, more trimming and precision, beard maintenance and shaping for those that are there. And so there's still very much an interesting opportunity as we go forward, partly because we've already had pretty much peak disruption in terms of facial hair and trends. And so I think as we look at it, we're -- we like our portfolio playing across all the price tiers and segments. And again, we think we've got an interesting opportunity to partner with retailers who are still very committed to this category in a very different way going forward.

Do you really think we're at peak disruption or past peak disruption? And I ask that because many of us are contemplating what the new work environment looks like. If we have some durability to work from home, either there on a permanent or maybe a rotational temporary basis, does it change both the frequency of shaving incidences for men, and also perhaps women now where I don't think we've seen the same type of disruption in the past?

It's a good question. It's open, Jason. I mean, I think our view is it was so disrupted already that the incremental impact -- my personal view is we're in a period of time with COVID-19 coming in on top, right? This is a new shock, if you will, to the category. And certainly, as we work through what reopening looks like, we're in a period where there's just less shaving. There's no way around that. That is a fact. I think we're bullish, though, that as -- as you look at where macro trends were. And shaving trends are cyclical. They always have been. If you go back to the beginning of time of beards and facial hair and how trends move. We were about as negative as you could get coming into COVID-19. And so I think there's a more macro shave trend, that's an open question. But certainly, if you get to a new normal, that is people not socially interacting, whether it's going to work or not, I don't know that, that so much drives it. I think it's being out around others, whether it be your social networks, you're going to show up, you're going to want to look your part around with your clean shave and you're going to be clean shaven. If you're not, you're going to shape a beard or some facial hair, you'll -- we think you're going to go back to where you were pre COVID and then there's this larger macro question that I think is still open. And it's more around social networks and interaction at that point than it is the work setting.

That's helpful. Let's switch gears. We've got about 11 minutes left. So I want to be sensitive to time and a reminder for those on the audience, if you have a question, feel free to submit it to the webcast platform. We've had one come through already and if they've been paying attention, they will have found that I have found ways to sort of weave that in, and I'll try to weave any other questions in as well. Let's switch gears to your Sun Care, your Skin Care, your Grooming business as you've begun to define it in some instances now. You've made some investments there, much of the inorganic investment has been there. What role is it playing? What role do you see it playing in the portfolio if we fast forward 2, 3, 5 years down the road?

Yes. It's an important business for us, the Sun/Skin Care business, again, from a branding perspective, that's Banana Boat, Hawaiian Tropic, Jack Black, Bulldog, and Wet Ones are the brands that fall within that category. All of the categories have, take coronavirus aside for a moment and just take that out of the equation, coming into pre coronavirus environment, all categories there had tailwinds, double-digit growth rates across the Grooming brands from a category perspective or on men's skincare. As I said earlier, we were up roughly 25% pre coronavirus on Wet Ones. It's a priority that has gone up in -- over the last 2 years, overall portfolio. And within the Sun Care business, while it's early in the season, and the Sun Care category is very disrupted right now, we had set up for a really strong season. We've taken pricing, got that through, led that actually and got that in. We have better display and distribution around end aisle displays in Island. The islanders out -- off aisle had a better outcome around the distribution this year and really set up for success. And despite the category being disrupted, it was very negative in April, we've seen it get better directionally in the last couple of weeks. We have grown share in every period since the turn on start of the season more around that mid- to end March. We are growing share every single period across the Sun business. So we have healthy categories. We think we have interesting brands with really interesting innovation in the pipeline. We're adding capacity for Wet Ones because we're tapped out on that and so -- and you think about moving forward, people will be outside this year. They're just going to be outside differently. It may not be the 1 week or 2-week beach vacation here or there. But it's going to be more of an even burn of just people being outside. And so I think the sun season will just play out differently this year in terms of how it has historically. And then from a grooming perspective, we expect all those trends to continue, we have really interesting innovation pipelines on both of those brands, Jack Black and Bulldog. And on Wet Ones, this is something that is going to be with us for a long time around personal hygiene. We have a 65 share of the hand hygiene segment with the #1 brand there. And people trust that brand. And so we see huge upside on Wet Ones over time. We got to get it, but we're making the investments to do that. So we're really excited about this part of the portfolio.

And as collectively these initiatives come together and start to turn the top line, it can obviously be powerful. But in the interim, one key enabler of the bottom line has been your productivity initiatives. Dan, maybe we can pull you back into the conversation here. And you could talk about Project Fuel program, your approach, what it's delivered for you looking back and how much fuel, if you will, is left in Fuel as we think about the forward?

Yes, absolutely. This -- as you rightly said, Jason, this program is foundational, not only for us in terms of the economics that it has spun off, and I'll say a bit about that and the lift it's given our business model, but also just the mindset that's been instilled in this organization around continuous improvement, around productivity, around efficiency and the like. So quick headlines on the program, $225 million to $240 million in gross savings over a 3-year period ending next fiscal, so 2021, roughly 2/3 of those savings are COGS enabled, about 1/3 are SG&A roughly, at this point, we're sort of at the halfway point in terms of the calendar anyway, we have realized about $170 million in gross savings. And perhaps even as importantly, we have a clear line of sight on the initiatives that have been developed to deliver the remainder of the program. So highly confident in continuing to deliver. We have not seen nor at this point, do we anticipate any disruption or any delay around COVID-19. So we have done -- and the teams have done a phenomenal job of keeping our operations running. We have not had any business disruption from the spread of the virus and keeping us focused on our Fuel execution. The drivers of the program pretty broad across the organization, I'll highlight a few. We've stood up a global procurement group. So we've now leveraged both scale, category expertise, intelligence to now establish global buy benefits. Certainly, productivity and efficiency in our manufacturing and distribution business we've invested capital. We've driven automation. We've optimized our footprint. And then in terms of the organization, we've taken some pretty bold steps to rightsize better fit for purpose around the organization. So leaner, we've delayered which has also helped not only on the cost side, it's helped in our efforts to drive greater agility and local decision-making. And then the last thing I'd say as we look forward because the program technically as it's currently scripted runs through next fiscal. But absolutely, when the program expires, the mindset and the way of running the business will not. We're committed to the elements of this program remaining as the essence of how we run the business. So this whole notion of continually revisiting and improving, driving better cost every day and just being relentless on our cost base, that mindset has served us well in this disruptive environment and we absolutely will continue to focus on that. We've actually already begun to bring some of the programs that were set for later this year into next year, we started to bring them forward. And we're going to continue to remain absolutely focused on this as a guiding principle going forward for the organization.

Good stuff. I want to segue there into probably what has to be sort of our closing line of questioning because we've got about 4 minutes left on the clock. And that's into cash flow and capital allocation, which conveniently, we have a question from the audience on as well. So earlier on, Dan, I think it was you Dan who mentioned free cash flow generation of somewhere in the $150 million to $200 million range. I know you've had some restructuring expenses that have impeded that a little bit. But as we look forward, what are the puts and takes that get you from the low end of that range to the high end of the range? And what's the pathway of maybe just getting there? And then as you generate this cash, and as you rightfully pointed out, you or Rod, your balance sheet is not overly stretched. How do we think about using that balance sheet? Do you either take out additional leverage room for buybacks, et cetera, as we come out of this unusual environment we're in right now?

Yes. Sure. Absolutely. Great question. I'll start with the sort of the liquidity and free cash flow profile for the business. This is a huge strength of ours is this free cash flow profile. And as I said, we generate somewhere between $150 million and $200 million per year in free cash flow. Now you're right. What we have seen over the last year, 1.5 years are some headwinds to that. Typically around onetime costs to deliver on Fuel, but also deal and transaction costs, both around Harry's and also around the infant divestiture. But having said that, if you sort of restate on a pro forma basis, this business spins off tremendous cash flow. As a result, the balance sheet is incredibly healthy. Liquidity is strong. We have over $300 million sitting on the balance sheet at the end of 2Q and another $425 million revolver that is untapped. And as Rod said, we're under 2x levered. So all of that in totality speaks to the healthy cash profile for the business. If I pivot that to sort of your next -- the second part of your question, Jason, around capital allocation. Our first priority has been and will continue to be investing in the continued development progression of this business, both organic and inorganic. We are in a far healthier place than we were 12 months ago, but we're also at a really important place for the organization. So we want to remain incredibly focused on that. As I segue for a minute around M&A, this is an important element of our go-forward strategy. It won't play out the way it did a year ago or the way we anticipated it would with a 6x levered transaction around Harry's. We don't see that as the path forward for M&A. What we do see are highly accretive sort of bolt-on, tuck-in opportunities, low beta, high degree of confidence in integration that can offer us profitable opportunities to deepen our existing penetration in categories and perhaps also provide a path into adjacent categories. So M&A, important lever for us, but on a far smaller scale in size and certainly in leverage. In the near term, we're going to continue to take a conservative approach on returning capital to shareholders, which we think is really prudent in light of our focus on liquidity right now. And then last thing I'll say just in terms of leverage profile for the business, I personally am very comfortable with this business being ultimately in the 3 to 3.5x levered position. I certainly believe our cash flow profile could easily support that. Sitting here today at under 2x though, we have optionality. We're going to be incredibly thoughtful. We're going to be diligent and we're going to be extremely disciplined in how we think about the go-forward for the business.

Excellent. Thank you. With that, I think we've -- we can keep this conversation going for quite some time. There's a lot of ground we have yet to cover. But unfortunately, we are fresh out of time. And we've got to keep this show moving on because we've got a pivot to the folks next up, which will be Nomad Foods for those who want to hang up and reconnect on the other side. But gentlemen, thank you so much. Rod, Dan, it's always a pleasure. I appreciate you carving out the time joining us here in sharing the insights and wisdom that you have. I think it's been value add for any investor who's been able to tune in. So thank you once again. Cheers.

Thanks, Jason.

Thanks, Jason.