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

Good morning, everyone, and thank you for joining us for our 2020 Virtual Investor Day. My name is Chris Gough, Vice President of Investor Relations for Edgewell. Before we officially kick things off, I'd like to provide you with a few details for today's event. First, we'll be making several forward-looking statements and referring to non-GAAP financial measures. These statements are not based on historical facts, but instead reflect the company's expectations, estimates or projections concerning future results or events, including, without limitation, the future earnings and performance of the company or any of its businesses. Many factors outside of our control, including the ongoing COVID-19 outbreak, could affect the realization of these estimates. So we have a full and exciting agenda for you today, an agenda focused on our strategy and our road map to drive sustainable growth and value creation. I'll hand over to our President and CEO, Rod Little, in just a moment. But first, let me walk you through a few logistical points for the day. Following the prepared remarks, we will take a 5-minute break. Then transition to a Q&A session with the executive team. If you have a question, please submit it through the chat function. Please also include your full name and company. We'll try to get through as many questions as we can while still aiming to wrap up today's event before noon Eastern Time. Shortly after the conclusion of our event, you'll be able to find the content and graphics from today's presentations as well as video replays of today's segments. So with that, if everybody is ready to go, let's get started. [Presentation]

Thanks, Chris, and good morning, everyone. As CEO of Edgewell Personal Care, it's great to be with you today to share an update on our strategy and our plans to create value. Last week, as part of our earnings call, we shared our results for fiscal '20 and our outlook for further improvement in fiscal '21. I'm very excited about the future of the company. We're proud of the choices we've made, the work we've been doing and the team we have in place to position us for success moving forward. Over the next 2 hours, you'll hear from me and members of my team, then we will have time at the end to address your questions. We're a pure-play personal care company with a strong set of brands across 4 categories. The company has been built via a series of acquisitions. It's anchored in a strong legacy with durable brands that go back over 100 years with Schick and Wilkinson Sword. And we've added strong brands along the way, most recently, with the additions of Bulldog, Jack Black and Cremo. These brands have broadened our portfolio and given us greater exposure to underlying consumer and category growth trends. Today, I'm excited to introduce my team. My leadership team is outstanding. My colleagues all have strong track records of success. They bring complementary capabilities with fresh perspectives and new ways of thinking. But as important as the individual strengths, this team has been built around cultural fit. We like each other, and we work well together as a team. Let me take a minute to give you some background on several members of my team who are with us here today. First, Dan Sullivan, our CFO. He joined Edgewell in March of 2019. He replaced me as the previous CFO. Dan has a long track record of success. He held senior financial leadership positions at Heineken, Ahold and Party City. Dan brings public company CFO experience as well as international experience. He lived and worked in Holland earlier in his career when he was with Heineken. Next, Anne-Sophie Gaget is our Chief Growth and Innovation Officer, and she's joining us from her home base in Paris. Anne-Sophie has been with Edgewell and Energizer for the past 18 years. A marketer and brand builder at heart, Anne-Sophie has led our Bulldog and Jack Black businesses since each brand was acquired. Anne-Sophie also has commercial leadership experience. Recently, she was our commercial leader for France, Italy and the Iberian Peninsula. This gives her a unique understanding of what local markets need to be successful. Eric O'Toole, our President of North America, is the newest member of the executive team. He joined us at the end of May. Like Anne-Sophie, Eric is a marketer and brand builder at heart. He comes with experience at Nabisco and Kraft earlier in his career. And at Danone, he held marketing and sales leadership positions, where he was eventually the President of their North American Waters business. Eric also has international experience, having lived and worked in Poland while with Danone. Most recently, Eric help build Jet.com, including seeing it through to the acquisition by Walmart. Eric spent another 3 years at Walmart, giving him unique insights and experience on what it takes to win at retail and in the online environment. Finally, our Head of International, Nick Powell is joining us today from his home base in London. Nick has been with Edgewell for the past 16 years and has a strong track record of success. Nick has led our European business since 2017, and he also took on Latin America in 2018. Nick was appointed President of International this past summer, picking up ownership of Asia. And he now leads all of our global business outside of the U.S. and Canada. In addition to hearing from our executive team, we'll also be showing you a series of videos through the event today. These videos will take you on the journey of the hummingbird, which is core to our corporate identity and highlights where we are going as a company. I hope you enjoy them. I want you to take 4 things away from today. First, we have a strong core with great brands and a clean balance sheet. Second, we have stabilized the business and built a solid foundation. Third, we have a winning strategy that enables sustainable, profitable top line growth. And finally, we have the right team in place to deliver on our plans. I'm confident in where we are going as a business and our ability to deliver on our financial objectives as we move forward. Now I'll start out by spending some time talking about our story and where we are today. Then, Dan and I will share details about our exciting new growth strategy. Next, Anne-Sophie, Eric and Nick will share details on our commercial growth plans for the future. Finally, Dan will summarize how all of this translates into what we believe will be a compelling new value creation opportunity. And then we'll end with plenty of time for Q&A. [Presentation]

So let me take a moment to refresh you on how we got here today. We were separated from Energizer just over 5 years ago. So we are a relatively young company, younger than even some of our competitors. We have been on a journey to build a standalone company with its own identity and the strength to compete and win across categories. Thanks to our progress over the past 18 months, we are now poised to return to growth and sustainable value creation. We have faced significant challenges since the separation from Energizer in 2015. We've seen unprecedented changes in consumer habits and practices, channel shifts, competitive actions and market trends. On top of the market challenges, we lack the right leadership model and capabilities needed to win in personal care. We've also been too focused on technology as opposed to the consumer, and we were slow to react to the shift to digital and e-commerce. This combination of challenges put pressure on our performance and financial results. Looking back, it's no surprise that our performance post separation has suffered. So looking beyond these challenges, there's still an awful lot to like with this business. We've maintained our strong #2 market position in the highly profitable U.S. razors and blades category. We've increased our presence in the U.S. sun care category, and we just finished a year where we grew share in a highly disrupted environment. And importantly, we have held on to #1 positions in key international markets, all while delivering $270 million of cost savings. And we continue to convert over 100% of our earnings to cash. In summary, I believe we have unique strengths that are required for success in our categories. I joined Edgewell as CFO in March of 2018. I was then appointed CEO 1 year later. This gave me a full year to assess what was working and what was not. When I took over as CEO, it was clear that a reset was required. We had unique strengths that were not being fully leveraged, and we also had capability gaps that urgently needed to be addressed. So let's take a look at our strengths. We have the people, the technology and processes to get high-quality products into the hands of consumers very efficiently. We have a flexible, highly coordinated, regionally focused supply chain network that enables us to source and produce more locally. For the Americas, most of our production is in the United States. And we have local manufacturing hubs in both Europe and Asia. You simply can't build this overnight. Our capability here is the result of years of focus and diligent work. In my view, this is a significant asset and point of differentiation for Edgewell. We have a strong global presence across the major categories we play in. And you can see, we have broad strength across geographies. We have the #1 or #2 position in our men's and women's shaving business in all key markets around the world. And we have sizable and growing positions across grooming, sun care and hygiene. Our brands are a staple in many personal care routines across the world. And in light of the global pandemic, our brands are trusted to deliver on the promises we make. We're a U.S.-based company operating in 4 primary segments. We have a meaningful North American presence. We also have scaled international operations that give us exposure to the right parts of the world for our products. Now let's turn to the things we've been doing differently over the past 18 months. Winning and delivering great results starts with people. As I said earlier, I believe we have the right leaders in place to deliver on our ambition and create significant value. My executive team is built with a balance of continuity. I've elevated the best and brightest from inside Edgewell to broader leadership positions, and complemented those leaders with executives from outside the organization who bring new and different perspectives. Coming out of the spin-off from Energizer, we recognize that our cost base was inefficient, both in absolute dollars but also effectiveness. I began this reshaping when I joined as the CFO with the initiation of Project Fuel, a program poised to deliver $270 million in gross savings. We'll continue to focus on productivity to ensure we have the funds to reinvest in the right places to grow our business. Project Fuel has helped provide a platform to support a sustainable save-to-invest culture. We have elevated the importance of building strong and lasting retail partnerships. This is underpinned by our ability to partner with retailers to grow and co-create value. I've been personally involved in rebuilding confidence across our biggest retail partners. And as we bring better innovation and brand building capabilities, all rooted in deeper consumer understanding, we're seeing the benefits from this renewed focus. We have stabilized our distribution overall with some interesting incremental gains in skin and sun, distribution outcomes that we simply weren't achieving over the past few years. And we strengthened our portfolio to better align with growing categories. Our acquisitions in men's grooming, Bulldog, Jack Black, and most recently, Cremo, have given us a strong portfolio of complementary and surgent brands. In parallel, we have also divested several noncore assets, including infant care, gloves and industrial blades. This is all in an effort to reshape our portfolio as a catalyst for sustainable growth. Beyond getting the portfolio right, we're focused on building the capabilities we believe are required for success. We put the consumer at the center of everything we do. And we've made significant investments in building our digital innovation and brand building capabilities. We've also embraced sustainability as a capability required to win. We want to be a leader in helping to create a more sustainable future. Not only is it good business, it's just the right thing to do. Our sustainability focus goes across 3 key pillars, people, product and planet. We've set ambitious goals that we are committed to delivering over the next decade, as we have already publicly disclosed earlier this year in our sustainability 2030 goals, and we're already making significant progress across all 3 pillars. Anne-Sophie leads our sustainability efforts along with our Chief Supply Chain Officer, Paul Hibbert. She'll share more on her efforts here in a few minutes. And we're attracting some of the best, most diverse talent in the industry. You'll see some of our new senior leaders featured on this slide. Their expertise spans brand building, digital marketing, e-commerce, finance and sustainability. We've also built out entirely new teams in some of these areas. And while we have worked to improve the portfolio and building our capabilities, we've also made significant improvements in our culture. The words you see here are how we describe ourselves, people first and purpose driven. People first is our leading value. We're serious about making Edgewell a great place to work. Our employee engagement scores show we are doing well here with significant year-over-year increases in overall positivity in each of the past 2 years. The actions we've taken over the past 18 months have begun to impact our results. After low- to mid-single-digit sales declines and declining gross margins over the past few years, we have stabilized both. We remain a profitable, highly cash-generative business. We now enter a new phase where we will build on this strong and stable foundation with a compelling new strategic direction focused on growth and value creation. Our purpose, why we exist is to make useful things joyful. We spent more than a year developing this new purpose, these 4 words. We make things that are useful, but the big idea here is joy. Joy is a differentiating factor in how we will bring our strategy to life. What you see here is our strategy on a single page. We are transforming into a growing, sustainable consumer-centric personal care company that will deliver stable and predictable growth in cash flow. Executed well, I believe our 5 strategic priorities will deliver sustainable and meaningful value creation. Our priorities are: One, expand our presence in attractive categories; two, build brands that consumers love with consumer-centric innovation; three, be a trusted strategic partner to retailers; four, simplify everything; and five, be a company people love to work for. This strategy focuses on repositioning our portfolio to accelerate growth in categories where we have a right to win and it secures our profit pool where we have a right to play. You've seen us already begin to activate the strategy in certain areas over the past few months. I'll keep you updated on our progress against these 5 priorities over the coming quarters. Now let me introduce Dan to get into more detail on the strategy and our choices. [Presentation]

Thank you, Rod, and good morning, everyone. As the CFO for Edgewell, I'm really excited to be here today to share with you the core elements of our growth strategy. Over the next hour, you'll gain a clear appreciation for the top line growth strategies for our business and how we will execute on these strategies to win in the marketplace. It begins with understanding our portfolio of great brands through 2 important views. The first view is in growing categories where we have an absolute right to win with consumers and a clear line of sight to accelerated growth and strong share gains. Here, it starts with our unmatched portfolio of grooming brands, made even stronger with the recent acquisition of Cremo. It also includes our Sun and Skin portfolio with the combination of our leading brands, and the opportunity to expand our presence in the highly attractive premium sun category positions us extremely well. And of course, it includes the skin hygiene space, where our Wet Ones brand owns a unique place with consumers and is poised to continue the fantastic growth we saw in 2020. We'll then move to the parts of our portfolio where we have a clear right to play based on our global scale and category presence. This includes our portfolio of Wet Shave and Fem Care products. As these categories return to healthier positions, we're confident in our ability to do the same, providing underlying top line and profit stability for the business. So the framework for our strategy is crystal clear, delivering sustainable top line growth through a combination of accelerating growth where we have a clear right to win and stabilizing the business where we have a clear right to play. Let's explore each of these in more detail, and we'll start with the components of our portfolio, where we have a clear right to win, men's grooming, skin hygiene and sun and skin care. All 3 segments are characterized by 2 important factors: first, they each have compelling growth profiles; and second, our brands are recognized leaders with consumers today. So let's look at each of these exciting growth segments of our business. Men's grooming is a category we know very well, where we already have a strong presence, thanks to the Bulldog and Jack Black brands, and where our position further strengthened with the recent acquisition of Cremo in September. The grooming category has seen and is expected to continue to see mid-single-digit growth, and growth has disproportionately been driven by insurgent brands, a dynamic we've seen in our own business with Bulldog and Jack Black, whose collective growth has been 2x to 3x the category in recent years. Strategically, we now bring to market a compelling portfolio of insurgent brands that allows us to reach consumers across all price tiers, from mainstream to masstige to prestige. We've proven that we know how to scale grooming brand successfully, and we're about to do that again with Cremo, the fastest growing U.S. niche grooming brand according to Nielsen. So in men's grooming, our expectation is for about 15% annual top line growth, continuing on our trend of outperforming the category as we take full advantage of clear channel and geographic whitespace while driving increased penetration in adjacent grooming categories. The men's grooming segment represents a clear right to win for Edgewell. The skin hygiene segment is another category that has incredibly attractive characteristics. And in fact, this is a category that is really defined by a single brand, Wet Ones. Wet Ones is the clear market leader with unmatched brand awareness. It's a trusted brand for consumers at a time and trust has never been more valued. In 2020, despite constrained supply, we grew this brand by over 60%, achieving $100 million in sales for the year, and we've only just begun to tap into the full potential of the brand. Our growth opportunity is enabled first by increasing supply, and we enter 2021 having doubled in-house production capacity from pre-COVID levels, with the opportunity to further increase our supply base going forward. And that's only the beginning of our growth story. Wet Ones will leverage its position as the market leader in skin hygiene with a full suite of product innovation, geared to meet the changing needs of consumers even in a post-COVID environment. While we may not know when our lives will get back to normal, we can anticipate that our personal skin hygiene needs will likely remain heightened. And the Wet Ones brand will be there, as usage occasions grow and consumer need states further evolve. This consumer opportunity is, of course, not limited to the U.S., and our plans for the brand include meaningful geographic expansion as well. Our international Wet Ones business doubled in 2020. And at only $12 million, its relatively small size speaks to the significant white space opportunity. All of this adds up to a Wet Ones business that is on its way to doubling in size over the next 3 years. Skin hygiene in the Wet Ones brand represents a clear right to win for Edgewell. With Banana Boat and Hawaiian Tropic, we have 2 strong complementary global brands. Our strong brand equity, formulation expertise and innovation capabilities have helped us develop leading market share positions in the U.S., Mexico and Australia and strong market share positions in many other markets. And while it's certainly a category that was heavily disrupted in 2020, as a result of COVID, the strength of our brands was clear as we gained 100 basis points of market share in the U.S. Expectations so that the global sun care category is likely to grow in the low- to mid-single digits, and of course, this does not contemplate a full recovery in year 1 post-COVID, so our path to growth in sun care is clear. We will continue to leverage our existing compelling brands, deploy our world-class formulation capabilities and create interesting innovation for consumers, all in a regulatory environment that will be increasingly challenging. sun Health and skin health are also closely aligned, and we believe this puts us in a unique position to expand our presence in the skin care category, leveraging our recent successes with interesting innovation. In addition, we will capitalize on the opportunity to gain access to the fastest-growing subsegment of the sun category, the premium segment. And finally, we will expand on our reach, further strengthening our existing presence in the category outside of the U.S., namely in Mexico, Australia and Latin America, markets where we enjoy strong share positions and have the opportunity to realize accelerated growth. In total, we have a clear right to win in sun care. The second lens to view our portfolio, we call the right to play, which is made up of our Wet Shave and Fem Care brands. Unlike the previous categories, these are defined quite differently with recent category headwinds, competitive disruption, at least in Wet Shave, and where our own performance in both segments has lagged the category and resulted in market share declines. We have to stare very clearly into the reality that we have underperformed in recent years in the U.S. for a number of reasons, which you'll hear more about from Eric shortly, and apply these clear insights and learnings moving forward. Equally though, we maintain some clear and leverageable strengths in both categories, compelling brands that maintain solid market positions and unique IP technology and manufacturing capabilities. And amid a challenging COVID environment in 2020, we saw signs of stabilization in both categories, reinforcing that the path we're on is the right one. It's now time for us to strengthen our performance. We know that our U.S. branded Wet Shave business has been challenged over the last few years as insurgents entered the category and competitive pressures intensified. Our innovation platform was too often technology-driven rather than being consumer-driven, and our digital capabilities lagged. However, we maintain a clear #2 position in the U.S. market with a significant technology advantage over just about everyone else in the space. And the team is excited to share with you the way that we're re-architecting our brands, developing a more robust innovation pipeline and constructing a winning digital platform for the category. And while we are extremely clear about the challenges we've seen in our U.S. Wet Shave business, particularly in our men's systems, we have to also avoid painting our global Wet Shave business with a single broad brush based just on what the last 2 years have brought the U.S. men's branded segment, which, by the way, represents less than 3% of our total business because our Wet Shave portfolio is so much more than that. We're a leading manufacturer of private brands in the world with over a 70% market share. The category constitutes about 25% of our global Wet Shave business and provides attractive margins. So we have a significant opportunity to leverage our capabilities and partner with retailers on interesting offerings that bring value and uniqueness to the category. Our global women's branded business, which represents about 20% of total Wet Shave, maintains over a 30% share in the U.S. with strong brand awareness and unsurpassed shave quality. And geographically, we are a diverse business with over 55% of our Wet Shave business outside of the U.S. and defined by market-leading positions in Japan for both men's and women's shave and strong #2 positions across most of the key Western European markets. There is no question that in Wet Shave, our work remains. And you'll hear more about this as we discuss both our North America and international businesses. Our outlook for performance in Wet Shave is defined by stability, holding share in a global category that is expected to be flat to down slightly over the coming years. In 2020, we estimate that our Wet Shave business was down about 1% to 2% on an underlying basis, and our path forward is defined by 4 core strategic objectives: First, full rearchitecting the Hydro and Wilkinson Sword brands in the men's category and leveraging the new positioning and campaign for Skintimate in the women's category; second, driving meaningful consumer-centric innovation at the core of our brands; third, further executing on our robust omnichannel strategy, fueled by enhanced digital capabilities and insights; and fourth, continuing to enhance relationships and partnerships with the trade and leveraging our private brand capabilities as a point of differentiation. In summary, we will further stabilize our branded business in the U.S., continue to grow our PBG and Disposables business and leverage our market-leading positions internationally. Turning to our Fem Care portfolio. At the macro level, Fem Care is an attractive category with consumers that are largely loyal to legacy brands, it offers attractive economics and for the most part stable growth. Our portfolio of trusted brands comprise a healthy double-digit share position in the U.S., essentially a #2 or #3 position in the category. But in recent years, we've underperformed, largely based on 2 factors. We've not kept pace with the innovation and newness in the category, and we have under-invested in our brands in recent years, creating the predictable trend of sluggish performance and declining real estate on shelf. Recently, we made the important step in redefining our operating model, creating a more autonomous and accountable business unit with end-to-end responsibilities for the category. We added needed talent to the team, focusing on brand building and digital capabilities. And after experiencing a 6% organic top line decline in 2019, we saw a modest improvement in 2020 with a 3% organic decline. Foundational efforts are delivering improved results, albeit slowly. And as we look forward in this category, we are focused on accelerating our efforts to deliver results that mirror expected category performance. Moving forward, we will be focused on reinvesting in our portfolio of trusted brands, strengthening our innovation pipeline, expanding our presence into better-for-you organic space and driving better execution across the business, both in-store and online. We have clear plans to achieve this, and our initial results tell us that we're on the right path. We have a bold and achievable ambition, a strategy that delivers sustainable top line growth with organic net sales growth of 2% to 3% per year, a clear right to win across what will eventually grow to be about 1/3 of our business by 2023, driving accelerated double-digit organic growth and meaningful share gains, and across the remainder of the business where we have a clear right to play, healthier categories and improved internal performance bring stability to areas of our business that have recently struggled, with performance largely in line with the categories in which we compete and, therefore, a stabilization in both organic sales growth and market share results. We are really excited about our strategy and the new path forward for Edgewell. And most importantly, we are confident in our ability to deliver. We've developed the right plans and have the right team in place to execute against this strategy. So let me hand it over to Anne-Sophie, Eric and Nick to tell you more about exactly how we will deliver on our growth objectives. [Presentation]

Thank you, Dan. And good morning, everyone. I am Anne-Sophie joining this conference from Paris. We have been undergoing a significant transformation in our approach to innovation and execution. Together with Eric and Nick, I will explain how we build up our right to win in reinventing our consumer and omnichannel solutions, but also in sharpening our market deployment strategies. The focus is to move Edgewell from a technology-led company to a consumer-centric one. We are unlocking growth by bringing innovations to our core categories, but also by identifying new whitespace. As Rod said, my career at Edgewell has been on the commercial side. So I know the agency that CPG business requires. They need to be pragmatic, to be an agile, fast-mover and to stay close to local consumers. This is a complete redesign that impacts organization and processes. It also requires reallocating resources and adding new capabilities and tools with expanded innovation beyond R&D work, questioning everything from insights to our brands and creatives. In that generally, we are very energized by a sustainability first mindset. This is so true to our new company mission, making useful things joyful. Let me explain the 6 pillars of this transformation. We have changed our approach to insight, moving our efforts from triple checking predefined IDs with consumer to focusing on deeper immersions. We have renewed our understanding of the emotional dimensions and the values that define our consumer behaviors in terms of beauty and grooming. So for example, we've explored what beauty means for men in 2020 in various geographies. We've also made them speak about their relationship with their team, fascinating. We have engaged an enhanced ethnography approach to reset what grooming and skin health mean for women in the U.S. in COVID and post-COVID environment. And we've broadened our insight to innovation process on the consumer trends, which help expand our view beyond the categories we are in, and we'll have innovation in products and in services. The 6 trends call our attention. You see them on the slide, and they speak for themselves. Let me just highlight a couple of facts that unlock further consumer engagement for EPC. Let's start with trust. In current uncertain time, consumer look for brands that are experienced and science expertise with evidence-based product. They also want simpler messages, more transparency. EPC has the right to play here as we own years of expertise and data to serve and educate. Next one is identity. The new EPC is committed to diversity. Rod spoke about it. The consumer wants brands to recognize, who they are in terms of gender neutrality or gender empowerment. We will serve them and we're increasing the use of personalized messages in our media approach. In terms of value, consumers are adopting sadly shopping behaviors when it comes to price. Our owned shave and sun care manufacturing footprint are key assets to serve low and mid-priced tiers. Men Grooming is democratizing. We are leveraging our prestige experience with Jack Black to grow the masstige segment. EPC has the right to win in this space with our portfolio of brands. Next, experience. Consumers want to feel alive, they are hungry for experiences that ignite their senses. These trends speak of certainly the appetite of consumer for product demo and beauty routine advice. EPC is building new capabilities in this area. On health and well being, we are very optimistic about future consumer engagement. Consumers not only one product that protect them, they also desire product that are beneficial to their physical and mental health. 70% of U.S. men are interested in products with antibac and the disinfectant properties. We will bring hygiene to the forefront with messages and touchless format. This is informing us on care and sanitizing and shared road maps. We've seen currently lockdown consumption shift towards skincare products with a feel good factor. About 15% of men and women have added a new step to their facial skin care routine. And we will see an increase in skin sensitivity. Again, EPC is well positioned to offer these feel good formulations. With the quarantine experience, more and more men want to groom every day, as part of their fight to restore a normal life. Hopefully, they will once again shave at a normal rate in coming weeks. What is certain is that men are increasingly embracing beauty as a masculine injunction and that opens many opportunities. For women, data suggest that demand for at-home solutions will endure or even be preferred. 30% to 40% of consumers in western geographies continue to report discomfort in going to salon. In keeping with this trend, we expect more hair removal and more shaving to happen. And new needs are rising with the mandatory use of mask. Eyes are the new lips and that makes eyebrow maintenance a bigger focus for women and possibly for men as well. As for sustainability, the crisis is leading consumers to purchase more ecofriendly and key beauty products. We have explored and built a strong consumer segmentation, defining the level of commitments for 6 eco groups. We've learned how those eco attitude impact consumer perspective in grooming and that has helped us to rightly set innovation for product and for packaging in the years to come. This serves to reset our brand strategies. We have translated those insights into quantified demand space in grooming and skin care. This approach, based on need states, value and behaviors, equips our team with a better definition of consumers' communities and reveal a more genuine and satisfactory points. This has also helped us to quantify new whitespace in grooming and skin categories on which we are actively working to bring new disruptions in 2021 onwards. Second, we are a small company. We need to be selective, to be nimble, to be simple. This starts by simplifying our legacy portfolio, killing brands, grouping others that will bring incredible efficiency to our activities. A good example of this is our disposable and shave prep business for women, where we've grouped 3 brands into 1 mega one, Skintimate, which brings good vibes to young women. Last, we spent a lot of time last year talking about creating brands that people love, which means elevating our key brands to purpose-led positioning. That brings more emotion, more humanity and helps immerse our brands more automatically into communities. We have experienced this first benefit of this rework with the brand Banana Boat. Our community is the nonstop loving moms. And we changed the consumer approach from protecting the skin in certain conditions to protecting the fun in the sun, protecting the fun on hers. We support our community in bringing help drive activity, joy and care to their kids. This repositioning has contributed to market share gain in the U.S. this year. I am happy to report that this job is now completed for 12 brands. You will see this reinvention impacting fiscal year '21 plans inclusive of men's one and Eric will speak to it. Third, we recognize as part of our transformation the need to develop more and better content. We aim to lead with increased social responsiveness, be more decorative and be more disruptive. In the past 6 months, we have built a new internal creative team, 10 designers and creative copywriters with strong experience in agencies and in digital branding. This team is bringing a new life to our legacy brands by adding content and also complements our 3 existing creative teams already working for insurgent portfolio, Cremo, Bulldog and Jack Black. We've also built our social media marketing capabilities using resources from within. We want our local marketing team to evolve from brand managers to community stewards moving from transactional relationships to building trust with consumers. And it's also quite critical to us to increase our disruption capabilities and focus on building an incremental project pipeline. For that, we set up an internal team to develop new brands, hiring people with an indulgent brand mindset. This group works with our R&D and insight teams and engage very early on with key retailers. It is set independently from daily business consideration that brings focus, speed and new thinking. We've also set up development partnership with 2 start-up groups, both in the U.K. and in Asia. Our objective is to leverage their disruptive mindset to bring more innovation to new personal care categories. Let's talk about the online consumer experience. Our e-commerce business grew 89% last year. We also expect e-commerce to play a bigger role on men's grooming. It represents nearly 60% of our Jack Black prestige business, inclusive of a very profitable direct-to-consumer and nearly 25% on Bulldog in well-established geographies. We absolutely needed to expand our digital capabilities, and we are accelerating the development of a head-to-hand consumer platform. Our increased digital team will platform about 30 sites by the end of '21. This will help with better brand discovery online and sometimes with direct-to-consumer functionality. And the COVID crisis makes us to be more daring. We are equipping some platforms with skin advisers, a service supported by AI that is connected to a skin science database. By improving our tech stack, we also aim to support our retailers in improving customer experience, creating better brand stores on their platforms, optimizing our digital presence and easing the content integration for them. And we challenge ourselves for continuous improvement. We're also getting ready to make about 15% more from our invested media dollar. We entrust our media team in the U.S. at the end of last year and we are now capable of optimizing our media planning through proper UML and new capabilities like DCO, dynamic commercial optimization. We feel very confident about brand reset and of our new engagement engine. Moving to product innovation. At Edgewell, we are super-proud of our research and development capabilities, which are unique assets. Our reinvention approach has been to enable faster innovation and serve consumers and customers in their search for customization and differentiation. We are convinced that science and expertise matter more every day, given the uncertain world we are in. EPC has a strong right to win here, thanks to our unique expertise in shave technology, in skin microbiome and in sun effect understanding. With 4 R&D centers and 25 internalized, mainly in western geographies, we've also recently positioned a skin expert team in Asia to faster integrate the Asian beauty progress. And we keep on investing in science, staying on the leading edge of technologies on hair and skin. We own thousands of patents and IPs and have more than 150 pending. But that did not stop us from challenging our development processes, cutting time to development by about 25% over the past 3 years. Second, we are attuned to evolving needs for more commercial innovations in key geography. We've enabled local market to directly access to our R&D platform and designers network in line with our new business model where the global organization serves local needs. A great example of it is the Bulldog Glass Razor, the first ever mass market razor made out of glass that is detachable and recyclable. We brought it to market in only 7 months, and it has already won a key beauty editor award. Lastly, we've also expanded our capabilities to innovate closer to market by signing up 15% additional partners across the globe for product co-development approach. This network helps us to be first or very early to market. For example, we demonstrated this success with the CBD+HA product on the Jack Black brand. Altogether, we believe these reinventions help us to add 30% more innovation while controlling costs. I am sharing on this page some examples that bring unique solutions to the consumer insights. Men embrace beauty and skin health more than ever. Our Bulldog brand is delighting consumers in 3 new categories beyond Skin Care, shave, shower gel and deodorants, and we'll enter another category next year. My colleague, Nick will tell you more. Jack Black sales will increase need for skin health with a unique acne line led by natural ingredients. Our Sun Care business is embracing clean beauty trends with an amazing new mineral sand mist that we concise for the first time mineral foundation with an amazing skin fill at a mass market price, you will love it. And we are protecting fun in the sun on Banana Boat with a unique mineral foam products for kids that are fun, colored and food centered. We now have more than 15 new live projects in the hygiene category, some coming to life in 2021, like biodegradable wipes in some regions. In the shave category, I'd like to highlight our Xtreme Eco Green product. EPC has been and is still the first-mover in proposing a handle that is made of 95% post-consumer recycled material. And we've also been extremely proactive in expanding on alternate hair removal, introducing a new line of derma cleaning product to reflect new female habits. And those are just examples. I like this innovation example because their designs are beautiful. They are true to consumer needs, behaviors and values, and they are also profit accretive and incremental to the core business line. Finally, I would like to say an additional word about sustainability, a value that is guiding our reinventions around a clear mission. We seek to inspire world where the joy of caring for yourself is balanced with caring for a shared planet and society. We know this is a journey, a mindset with every day little steps. And we're focused on strong control of costs plus consumer engagement. Our approach is unique here. We are a big, yet a small company. We opened up a sustainability practice 18 months ago, and we made a clear choice to embed it into the operational organization. Sustainability is part of every business agenda, and the team is in daily contact with the manufacturing, the R&D, the marketing and sales organizations. Creating more sustainable packaging is a core aspect of our sustainable care 2030 strategy. We also want to stay ahead of possible regulation changes related to virgin plastic use. One of our short-term goals is to ensure that 100% of plastic packaging is recyclable, compostable or reusable by 2025 in our razor and blade segment. We seek to achieve this in all remaining segments by 2030. Our Bulldog brand was the first men's skin care to use plastic from sustainable raw sugarcane into packaging. And in a couple of weeks, we are introducing plastic free packaging in a few global markets on most of our razor and blades pack. We're also playing our role in educating consumers about packaging. In late 2019, Edgewell joined the Sustainable Packaging Coalition, and we are now including the How2Recycle label on our packaging in North America to help consumer identify recycling this option. We care for the consumer. We are accelerating reformulation, removing ingredients that could be of concerns for them ahead of any regulations, such as titanium dioxide shave or octocrylene in sun care. We want to provide maximum transparency to consumer. And we also care for the planet and animals. By 2021, 90% of our sun care lines will be reef friendly and 100% by '22. We also have obtained a cruelty-free designation on Hawaiian Tropic lines and we are up to be vegan certified. While we are small, I'm sure that you get a sense that we are moving extremely fast here. And of course, sustainability has an even broader landscape. And I encourage you to read our corporate report released in June. We are committed to supporting the shift to a low-carbon economy and expanding our focus to ethical and responsible sourcing. We even have a first product line that is carbon neutral certified in the U.K. and France and Germany. This is Bulldog Original Moisturizer, the brand's Euro product. All in all, we're very encouraged by the recognition that we received from our consumers and partners. This is a true source of competitiveness for EPC across the line. With that, thank you so much for your active listening. I hope you are as excited as I am about our new capabilities and solutions. And let me hand over now to Eric, who will take you through our omnichannel capabilities and North American plans.

Thanks, Anne-Sophie. Hello, everyone. I'm Eric O'Toole, President of North America. I'll spend a few minutes sharing key thoughts on how we are positioned for success in our channels and then shift gears to take you through highlights of our North America plan for fiscal '21. We've been generating really good momentum in terms of how we execute in the trade channels, especially as our partners evolve to drive in e-commerce. With our brick-and-mortar customers, we lean in on what we do well versus our competition. In the digital area, we have been building our team to execute flawlessly with pure-play partners, like Amazon, and to support our traditional partners as they build to refine their omnichannel selling and service models. In the background, our sales and marketing teams are working closely to build assortment and pricing strategies that are coherent across the channels. Our category management organization is extremely well connected to our partners, bringing an objective lens to category topics as well as insight from syndicated sources and custom research. We work to help our partners find exploitable trends in the categories. As a validator and sometimes as category captain, we're relied on for our judgment in helping the largest customers make their assortment and plan grand decisions. At Walmart and Target, for example, we have one dedicated category management expert for each of our business lines. Our sales team is engaged in collaborative annual planning conversations with all key customers. Sometimes, this leads to exclusive items like those pictured to address opportunities identified in the given segment. Our private brands team, a unique asset to Edgewell, works closely with dozens of retailers to bring them technological expertise and excellent product and margin to their business model. Finally, Cremo and Jack Black, our disruptor brands, bring fresh authoritative perspectives on trends in personal care. We also believe that our own success is going to be heavily dependent on our ability to perform in digital commerce. We have a very specific way of thinking about wining in this space. And as an organization, we are committed. Our sales and marketing team is aligned on a multichannel strategy, determine how the brand portfolios play across the channel spectrum, and then define assortment, pack type and pricing accordingly. To do this, we have built an extremely strong team, both by attracting highly experienced digital professionals and by cross-training talented colleagues who have an interest in this space. We have teams specialize in each area from content management to performance marketing to create a design. And finally, we believe each of our brands should be able to serve a relevant shopper need on its own native platform. And what I mean by that is for brands with wide portfolios like Jack Black and Cremo, you will have state-of-the-art transactional sites, while for others, we will maintain a content-based experience that gives shoppers the information they seek to make an informed purchase decision with their favorite retailer. Every platform will give us a number of ways to cultivate communities and influencers and to learn more about our users' interests and needs. Now I'd like to jump into the brand side of our North American business to tell you about the exciting evolution of our portfolio and how we're marketing it. I came to Edgewell just 5 months ago. And this slide does a great job illustrating exactly why I joined. We have a remarkable stable of brands, each of them with leading or challenger positions in their category. Many are iconic, known intimately by American households, some like Schick are historic, introduced 100 years ago in 1921; others like Jack Black, Cremo and Bulldog are new to the scene and have amazing connections with their loyal consumers. And then there is Wet Ones, a gem that has found itself as a must-have product in our new world of germ awareness and protection. The portfolio creates considerable balance for the company, and each brand is at a different stage of development and opportunity. As Rod and Dan have discussed, we segment brands into 2 strategic groups, stabilize and accelerate. In North America, stabilize set are those brands where we are working to develop traction or to lock-in sustainable growth. Let's talk about some areas of that portfolio. Six months ago, as I assessed Edgewell and its portfolio before joining the company, I had a personal view of the opportunities and challenges facing the shave brands. And that alone had been really interested in joining Rod and the team. Let me tell you why. Simply put, we have an impressive set of assets in shave, a women's portfolio that is diversified and holds a strong second position, the largest private brand shave business in North America, built on exclusive relationships with key retailers, Walmart, Amazon and Target, just to name a few, a consumer-loved disposables business from our equities in both women's and men's. And on the branded men's systems side, a smaller business, but one I thought and now know has loads of potential. Why so much potential? Well, a shelf presence that was a bit chaotic and not well branded, a Schick master brand endorsement that was present but not fully leveraged and more opportunity for storytelling to numerous consumers connections to the brand. So I saw these opportunities and thought it would be really fun to help capitalize on them. The scale of bar chart on the left illustrates the relative size of our shave businesses. Our men's branded systems has a modest share of the category, which means one thing, we have a significant upside opportunity. And we never write to win in shave. Let's look at how we activate in each segment to do just that. In a couple of minutes, I'll come back to men's. Let me first summarize plans in the rest of the shave portfolio. In women's, we have a well segmented portfolio that brings a variety of performance, style and value for the shopper. The range enjoyed nice share performance last fiscal year, and we expect to replicate that in '21 with a series of marketing activations that will keep the brands fresh and vibrant for our consumers. A beautiful package redesign on Skintimate makes it chill and relevant and that coincides with the brand's extension into shave systems, which we think will make a really nice impact in the value area of the spectrum. We also have new attention-grabbing advertising campaigns designed for digital. In fact, we were just acknowledged by Wavemaker global media for bringing disruption through hydro sales newest ad execution, brows are the new lips, which actually celebrates the heightened role of a body part as a consequence of our new mask wearing era. [Presentation]

In disposables, we're proud of our company's sustainability initiative, and we really love the commitment by Xtreme to launch the new Eco blade razor. In private brand, we continue to advise our retail partners on product evolutions that will meet their business objectives. In this area, we also are active in the DTC space, collaborating in a highly selective way with brand partners in niche spaces. In fact, we will be announcing a new partnership in the weeks ahead. Now let's return to men's branded shave. We have a huge right to play here. Edgewell has leading R&D capability and technology, and we have incomparable authentic brand equity. We have tools to play with, and we're putting them to use in 2021. I spoke a few minutes ago about the broad assessment I had of the portfolio before I came aboard. Drilling in a bit more deeply, our men's brands have faced a number of headwinds in recent years, and our portfolio strategy wasn't fully up to the task of managing those forces. The competitive landscape has ranged from large brands benefiting from their manufacturers trade power to new brands that have disrupted with personality, value and/or convenience. Retailers has been dynamic in shave, allocating shelf space to innovative products they're betting will stimulate category growth. They've also become demanding on gross margin as new entrants have margined up their brands to create retailer appeal. Consumer trends have softened the category overall as men have become both more facial hair style oriented and casual in their increasingly stay at home and start-up style work environments. The traditional routine of the daily clean shave has been under pressure. How had Edgewell navigated these various pressures? Well, in the past, our portfolio strategy had been to create a unique brand for each of our distinctive product technologies. This resulted in a dispersed portfolio, requiring us to invest to build several brands, while our competitors used single brand umbrellas to consolidate their firepower for the battlefield. And while we did this, we were technology oriented, internally focused and less focused on shaping our messaging to evolving consumer trends and needs. So to recapture share in this segment of the market, we have turned the page to new ways of marketing. I'll take you through 4 key shifts that illustrate how we will change the way we approach the male shaver. The fiscal '21 plan begins to execute against the road map you see here. It represents a marketing pivot that is more consumer-driven and, quite frankly, simpler for the shopper to understand. First, we have done a lot to pare down the brand portfolio through consolidation. Quattro is the latest brand to be retired as we relocated our product technologies and items under the Schick Hydro brand in systems and under the Schick Xtreme brand in disposables. Schick itself is a wonderful equity that we will use this year for retailer exclusives. Second, this consolidation gives us more spend critical mass and more freedom to reach the consumer. A significant investment swing to digital adds to that agility, allowing us to perfect both our media targeting and dynamic ad content development around the variety of shave practices explored by today's men. Third, in the fast-evolving omnichannel consumer shopping journey, we are committed to presenting the brands and their stories and benefits in all the ways and places a shopper may choose to discover that. Finally, we are discriminating on innovation in shave, so we will bring only special products that truly meet new consumer needs or new levels of product performance. That also will help us realize the benefit of the spend focus, allowing great product news to be the herald for strengthening base brand awareness and equity. Retail partnership and execution also is key to our brand plans. Features at Walmart will have increased from 0 in fiscal '19 to more than 4 in fiscal '21, generating significantly more exposure for Schick at the moment of truth. We also believe exclusive products can be valuable to our brand's aspirations. For example, we have exclusive items planned with both Sam's and Walmart. The Walmart items are Schick original razor and in Xtreme sport razor. Cremo infused sports net exclusive items, and will be looking for smart ways to continue to execute with our retailer partners using our manufacturing and R&D agility. The big men's shave news for 2021. We are giving Schick Hydro, our systems platform, a complete overhaul. This is the ultimate manifestation of our work to consolidate our men's systems business under a clean, coherent, easy-to-understand product range. While Schick Hydro's positioning has been hydration focused in recent years, we'll strengthen the brand's emphasis on skin as men's interest in skin care has increased substantially in recent years. The brand gets a simpler, more modern package with clearer communication. We love the contemporary pillar scheme and just necessary information on the front panel. New advertising will support the relaunch. After retailers who were keen on adding some fuel to their men's grooming fire, hydro also offers a new small range of shave prep and after-shave product. Equally exciting and supporting the skin concept is our newest innovation in the Schick Hydro line, the Stubble Eraser. It introduces a brand new technology, purpose-built for the insight that men have become much more casual with their shave regimens, experimenting with growth and then reverting straight back to clean shaving. So this system is designed to straighten long double before the blade catches then cuts the long-ish hairs. This reduces tugging and pitching with the result being a 1 stroke close shave for up to 7 days of hair growth. To market Stubble Eraser, we're deploying insurgent marketing techniques. We'll use a variety of unique sampling pathways to get product into consumers' hands and will launch a disruptive PR campaign to bring attention to the brand's news. Altogether, we're really excited about the Schick Hydro plan for '21. And we're already underway on what comes next for fiscal '22. Shifting gears to another of the segments in our stabilized brand grouping, I'll touch on Feminine Care. We're really proud of our Fem Care brand lineup. In fiscal '20, we started turning the corner, moderating the portfolios decline. We have been super-focused on the fundamentals of this business, working to reset its marketing and NPD shape for performance in 2021 and beyond. So to complete the stabilization and return to growth, we have a number of key elements planned for this year. There's a lot on this slide, which will tell you that we've been looking at a one. I'll point out a couple of things, I think, are most central to our success. We have landed on a very well segmented portfolio strategy with each of the brands targeting women at various stages of adult life. We are converting the segmentation and all the lifestyle and emotional insights to fuel it into digital advertising campaigns that reach the right woman at the right moment with the right message. We have just completed the development of 2 new digital spots for Playtex Sport that crushed it in copy testing. Let me give you a peek. [Presentation]

These sport are the beginning of a strong campaign and we'll continue to iterate to ensure the campaign remains fresh, topical and delivering results deep into the future. Speaking of digital, when a consumer sees our ads, we'd like to get them to click-through to place an item in a shopping cart. So between shoppable ad units and search strategies, we're designing our media to increase conversion on an expanding impressions base. Also exciting is the continuation of our launch of Carefree Breathe, a lighter line of pads and liners that is softer and more odor mitigating. It's a great innovation for the young adult women and early results from our initial launch in 2020 are very promising. We'll accelerate our spending against awareness of the trial and expand item count in our top 10 retailers. Now let's shift gears over to the area of our portfolio that is enjoying strong momentum and take a look at some highlights from this period. On the Sun care and growing portfolios, we have both segment leadership and share growth momentum. And on Wet Ones, we have a market tailwind, giving us an opportunity to build a really compelling brand franchise. These are the brands that are North America's central source for growth in '21. In a really challenging social and economic climate, our Sun Care brands has been generating a lot of excitement in the company. And more importantly, they have been growing share in the market. While the category has softened due to sharp reduction in travel and vacationing, our brand teams have been pivoting messaging, especially on Banana Boat, to encourage families to continue to protect their skin from the sun when enjoying life together much closer to home in their backyards. We even enjoyed the stay-at-home dialogue offering tips on how families can enjoy their time together at home. Hawaiian Tropic continues to distinguish itself through a more firmly adult brand positioning and by projecting earth focused and personal well-being values. In one activation, the brand has taken a proactive social environmental stance, selling Hawaiian Tropic scented indoor handles to raise money for local beach communities. Both brands will add new marketing layers this year, including through innovation that features more mineral based and natural ingredients. Our portfolio will continue to lead in this consideration of the environment with re-friendly formulations. Banana Boat will introduce a colored-foam mineral sunscreen in fiscal '21. It is super fun and designed to increase kids' interest in the ritual of skin protection. And for Hawaiian Tropic, the brand will expand into the sunless category, which is trending right now as a safer alternative for those who like to sport a tan. Wet Ones has been a really fun business for Edgewell. While this has been a rather small market, its current and future size will be really significant, already growing nicely before the pandemic struck, COVID driven demand sparked big growth for Wet Ones, up more than 50% this year. Given elevated here-to-stay levels of consumer interest in Personal Hygiene, we plan to expand the franchise to build, let's say, a little mega brand in the hygiene space. The hand sanitizer market also has grown substantially. There are virtually 0 barriers to entry. So the market has been flooded with dozens and dozens of new brands. We see opportunity as our goal is to help retailers bring order and product dependability to the category through our trusted brand equity. To seize the opportunity, our first priority is to increase production capacity. We are doing that in ways during the year. Part of the expansion includes a line extension, Wet Ones Plus, into an alcohol-based formula. This is an opportunistic play and one that resonates with the segment of consumers. And the combination of wipes capacity expansion and the addition of hand sanitizer will continue through fiscal '22, giving us the opportunity to deepen our investment in equity building for this terrific household name. Shaping the brand's image and utility, adding dimension outside of its historical baby and toddler routes will be the core part of our work here. Rod, Dan and Anne-Sophie each mentioned our strategic enthusiasm for the grooming market. This is a space in which we've developed strong DNA over the past several years, topped off this year with the acquisition of the Cremo grooming and personal care brand family. Even during the pandemic, the grooming market has grown 26%, declaring its new presence as a significant lifestyle category for men. We believe grooming can sustain 15% annual growth for Edgewell in the years to come. With category-leading brands like Jack Black, Cremo and Bulldog, Edgewell now covers the full range on the price value continuum, from mainstream through masstige and into prestige. The brands have highly loyal consumers. Once introduced to these brand families, repeat is high and a long-term relationship is formed between brand and consumer. This year, our focus will be to expand trial and awareness to bring new consumers into the franchises. A couple of highlights from this group. Bulldog gets a shop-in-shop shelf set in a group of Walmart stores and a refreshed advertising campaign. Cremo gets heavy digital and event marketing emphasis, a restage of several items that were launched during the pandemic peak and a handful of great new lineups. We also will remap that brand's site experience so that we can fully meet its consumers' desire for experimentation and exploration within the brand. On a separate note, we also value the new perspective in connection the Cremo team itself brings to our retail partners. They are a great addition to the footprint and style of Edgewell's sales organization. Building on Anne-Sophie's summary, much of Edgewell's innovation is happening right here in North America in 2021. We're really pumped as each new product is a thoughtful consumer or environment inspired idea that we believe is unique and will resonate with consumers. So that was a fast trip to the brand plans. We are very intentional about how to manage our portfolio for balanced top and bottom line growth. And so the year's road map, build on our momentum in women's shave, extend our leadership in sun care, capitalize on market tailwinds and our leading share position in skin hygiene, stabilize the men's shave and feminine care businesses and turbocharge our young portfolio in men's grooming. The teams are working hard to execute these plans. They're also ready to pivot as they did this year as the dynamic macro environment continues to shape shopper behavior. North America is ready to go and excited for the year. Let's now shift gears and take a look at our international business. For that, I will turn it over to my teammate, Nick.

Thank you, Eric. Good morning, everyone. I'm Nick Powell, President of Edgewell International. And I'm excited to give you a brief overview of our international markets. International accounts for about 40% of Edgewell sales globally, with direct operations in 20 markets, called out in this chart in green. These are the markets where we have significant scale in at least one product category and where we're clear, there is a sustainable advantage to having Edgewell teams working directly with customers to evolve and grow the business. The country's colored blue are those where we work mainly through local distributor partnerships. This is either because of market scale or because we're confident that the distributor partner is the best way to resource the market long term. The third category, called out in orange, is markets such as Russia and India, where we're developing local partnerships to explore the longer-term potential for Edgewell without having to establish our own infrastructure. Let me show you how we see our international business evolving over time, both at a market level and then with the split by product category. Firstly, when we look at the markets, there is a clear segmentation based on market size, with our top 6 markets made up of Japan, Germany, U.K., France, Mexico and Australia. These are the markets where we have robust market positions in at least 1 segment or more often several of our product segments. In all cases, there's still further potential to build on the strong business base to roll out more of the Edgewell portfolio. In the group of the Next 11, we include the other scale markets in Europe and Latin America and also China and Taiwan. For many of these markets, we tend to be focused on shave and have even greater potential to leverage our strong customer relationships and consumer knowledge by expanding the portfolio to sun, skin and beyond, which is why we highlight the stronger growth trend here. The last category are the smaller markets, and these are managed to optimize scale and profit delivery. In the right-hand side of the chart, you can see our product split as it stands today and our projection over the next 3 years. Given our demonstrated growth trends, we're confident that our strategy to expand and strengthen our sales behind brands, such as Hawaiian Tropic, Banana Boat, Bulldog and Wet Ones, will transform the profile of our international business. Whilst broadly maintaining the scale of our shave business, we will grow our sun and skin sales from 16% to 25% in the next 3 years. Earlier, I talked about the importance of our largest markets. And the largest of all of them within international is Japan. Schick launched in Japan in the early '60s. Since then, by paying very close attention to the distinct need states of the Japanese consumer, we've built a strong market-leading position with 49% market share. Through this consumer-centric mindset, the Schick brand has developed outstanding levels of consumer loyalty and brand equity. Until recently, our business has been focused on shave. However, in the last few months, we've rolled out the Bulldog launch nationally. And the deep customer relationships that we have built over time have enabled us to secure very strong presence for the Bulldog brand in over 18,000 stores across Japan. I'm pleased to confirm that the initial sellout data validates our advanced research with strong sales out, demonstrating the positive impact this new brand will have for the category and Edgewell Japan. Japan serves as a great example of why we are confident in the growth potential of our scale markets. And the focus we put on the levers for growth in Japan are also relevant for France, U.K., Germany, Mexico and Australia. First, ensure we strengthen the core that provides our scale today, and then add to this strong foundation with the skincare brands that have most potential in the market. In Japan's case, this means Bulldog and Jack Black right now. Beyond this, we will leverage those assets that we are confident can build a long-term position of strength. We haven't finalized that longer-term road map yet for Japan, but there is a high chance it will include new categories like hand hygiene with Wet Ones, new brands such as Cremo and strengthening global capabilities such as e-commerce. Bulldog is a great example of Edgewell's M&A strategy. Our strategy centers around identifying a strong core business with clear points of differentiation, which often would be associated with insurgent brands and clear potential for expansion through both innovation and geographic rollout. These characteristics combine well with Edgewell's capabilities to make sure we add value to the acquisitions we make. Bulldog was founded by 2 English guys, Simon and Rhodri, who whilst living in the U.S. identified a gap in the market for high-quality, mainstream, ethically sourced grooming products with an unapologetic male focus called out by the Bulldog Understands Men tagline. Bulldog launched in 2006, and over the next 10 years, built a solid base and very strong user loyalty in the U.K. and the Nordics. In 2016, our colleagues in the U.K. drew the attention of our M&A team to the brand, who agreed that with Edgewell's capabilities and global reach Bulldog had tremendous potential for geographic and range expansion. In less than 4 years since acquisition, we have transformed the distribution footprint and step-changed the innovation funnel, expanding into deodorants, shaving and body wash. The combination of these has delivered almost fivefold growth so far. Dan mentioned earlier, we're confident of a strong growth rate of about 15% a year for grooming and skin care. And Bulldog demonstrates our basis for that confidence. The even better news is that we continue to grow at pace. We've achieved this by embracing the entrepreneurial mindset the Bulldog team brought with them into Edgewell, which partly explains the great relationship we still have with the founders. We've stayed true to the brand principles of ethically sourced packaging and leveraging natural ingredients. And right now, we're launching a truly differentiated product range into the shampoo category, which will further fuel the growth curve. For our sun care business within Edgewell, we have 3 key strengths that set us up for growth across international. Firstly, we have scale through strong share in key markets like the U.S., Mexico and Australia. In turn, this scale underpins the outstanding innovation pipeline that Anne-Sophie called out earlier. And finally, our international distribution capability enables us to build on our existing footprint while still having some major markets with tremendous potential for incremental sun care sales. So final chart from me. And that reference to the international distribution capability is a great link to the enablers for our road map to growth. It is the local insight combined with the deep consumer and customer understanding that the international team have built that will ensure our success in growing the scale of our grooming business, strengthening the Schick and Wilkinson Sword Master brands, building the Wet Ones brand across all scale markets and expanding the portfolio and business scale in Japan, whilst also increasing Sun Care's geographic reach and share. I hope that's given you a good flavor of our successes to date in international and, most importantly, the clear potential for continued growth in these exciting global markets. And with that, I'll hand you on to Dan. Thank you. [Presentation]

You've now heard about our compelling strategy for sustainable top line growth and the plans we have to deliver against these objectives. We are very confident that we can and will execute this strategy successfully. And this brings us to the final section of our discussion today, how we will manage our business to deliver sustainable, long-term growth and drive strong returns for our shareholders. We've developed a clear framework for sustainable value creation, reflective of 4 core priorities: First, generating consistent organic top line growth; second, continuing to put efficiency and continuous improvement at the center of how we run our business and as a catalyst for reinvestment in our growth objectives; third, strengthening our gross margin profile with focus on both cost and revenue management; and fourth, directing our strong cash generation in a disciplined way to improve shareholder returns. Now before we discuss these in more detail, let's take stock of our business and the progress we've made in strengthening our underlying performance. As you heard Rod mention earlier, the last 15 months have marked an important evolution for us to a more predictable, stable business model, the short-term implications of COVID-19, notwithstanding. This has always been an important first step for us, and we're pleased with the progress we've made. After a prolonged period of disruption, declines and headwinds across our business, we now have a more stable underlying business, top and bottom line, and have generated almost $350 million in free cash flow over the last 2 fiscal years alone. And with improved underlying performance, 2021 is an important foundational year. We are expecting low single-digit organic net sales growth, fueled by disciplined reinvestment in our brands, markets and people, and mid-single-digit EBITDA growth underpinned by another year of meaningful cost reductions as Project Fuel is poised to deliver about $60 million in gross savings. So with a business that is positioned to organically grow the top and bottom line, and one that is stronger and more stable than at any time in recent years, we are on the right track, and we're excited about our path forward. So let's discuss each of our 4 core priorities for sustainable value creation. Our first priority is to deliver consistent organic top line growth. As you've heard throughout the morning, our Grooming, Sun Care and personal hygiene categories are primed for accelerated growth based on our strong brand offerings, compelling share positions in growing categories, and bold commercial plans. We're excited about the opportunities here and expect to deliver double-digit growth on a sustainable consistent basis with meaningful market share gains. Eric and Nick also shared our commercial strategies to improve our performance in both our Wet Shave and Fem Care businesses, leveraging our scale, solid brand equity and global manufacturing capabilities with improved brand offerings and consumer-centric innovation. We expect that both of these categories will stabilize, with an aggregate flat to slightly declining sales profile, and we fully expect to hold market share in both. As you can see, we have clear and compelling plans to deliver sustainable top line growth across the entire business. Our second priority is an operating principle that is core to our DNA as an organization, continuing to drive costs out of the business and strategically reinvest in our growth. In fact, structurally reducing our cost base is a demonstrated capability for Edgewell. In fiscal 2021, we will enter the third and final year of our current Fuel program, an effort that is on track to deliver about $270 million in gross savings, a solid 16% over-delivery from our expectations at the start of the program. We are an organization that is intensely focused on eliminating waste, simplifying operations and structurally and fundamentally addressing our cost base. And this mindset will continue to serve us well long after the Fuel program concludes, which is why we are announcing a new, bold, continuous improvement initiative across our business that will begin to provide savings in fiscal '22 and will deliver an incremental $125 million in gross savings by the end of fiscal '23. Across our supply chain, we will further automate within our manufacturing operations, accelerate procurement savings with a focus on design-to-value opportunities, further optimize our footprint and drive out waste and inefficiency. Within our overheads, we will continue the journey that Fuel began by leveraging technology, simplifying operations and ensuring an organization that is fit for purpose. We have already begun developing our plans and have a solid line of sight to the savings opportunities. We anticipate that onetime costs in support of our efforts will be well below the cost realized as part of Project Fuel. And these savings efforts are only half the story. Our strategic plan carries an investment stance as we recognize that our brands, innovation platform and capabilities require further investment. We remain committed to investing in the organic growth of our business and doing so with focused discipline and prioritization, with the consumer at the center of all that we do. We've made clear strategic choices and set specific growth, investment and return objectives across our entire portfolio. With continued emphasis on driving greater productivity from our working dollars, we will prioritize our investments behind strategic brands and markets where we can and need to win. And we will incrementally invest in 2 overarching objectives: developing an agile consumer-centric innovation platform; and enhancing our digital capabilities across the organization. In recent years, a challenged top line has forced us to make difficult, often defensive, choices that robbed our brands of needed commercial investments. Our formula is clearly different now. Stability in our top and bottom line, continued cost reduction efforts, all leading to a disciplined consumer-centric investment stance for our business, which brings us to our third strategic priority, delivering consistent strong gross margin performance. As you all know, we operate in very compelling categories with attractive gross margin profiles. And as we discussed earlier, over the last 2 years, we have greatly stabilized our gross margins and provided much needed underlying support to our business model. From here, we expect to generate consistently strong gross margins, driven by 3 main focus areas: first, as I shared earlier, remaining critically focused on costs; second, enhancing our strategic revenue management capabilities and focus to ensure better productivity of promotions; and third, delivering a more consumer-centric innovation pipeline that is margin accretive to the portfolio. In total, it's a comprehensive approach to strengthening our gross margin profile. Our fourth and final strategic priority is a disciplined, balanced approach to capital allocation. A critical advantage of our business model is our strong free cash flow generation. Over the last 3 years, we've averaged over $180 million in annual free cash flow, including nearly $190 million in fiscal 2020. This attribute of our business creates balance sheet strength and provides optionality, the ability to invest at the appropriate levels in our top line growth profile organically and through M&A, with the remaining cash flow to maintain a balanced return of capital strategy. It's a multipronged strategy made possible by the inherent strength of our cash flow generation and defined by discipline and balance. Our first priority remains investing behind growth and continuous improvement across our business. We remain focused on investing in both the organic and inorganic growth opportunities discussed today to further shape our portfolio and support top line growth. Our second priority is to provide strong return of capital to our shareholders, through a combination of the initiation of a dividend and an opportunistic approach to share repurchases. And lastly, we remain very disciplined in our debt management, with a net debt leverage profile expected to be in the range of 2 to 3x. And we'll also look to flex within this range to take advantage of opportunities as they present themselves. Let's explore each of these in a bit more detail. As you've heard throughout the morning, we are committed to delivering sustainable organic sales growth for the business and ensuring adequate investment in our brands, markets and people to enable this growth is our top priority. And I shared earlier how we'll do this across our brands and markets, while prioritizing our investments in innovation and enhanced digital capabilities. Strategic acquisitions will also be an important element of our long-term business model, and we will continue to pursue those acquisitions that align with our key strategies and provide further opportunities to shift our portfolio where we believe we can win, and we will do so while maintaining consistent price discipline. Cremo is a great example of this M&A strategy. The strategic rationale was clear. We gained a deeper presence in the highly attractive men's grooming category with a brand largely recognized as a leader in this space, and a portfolio that is broad and diverse. It's profitable. It's growing at 3 to 4x the category average, and it's well positioned for continued growth with further channel and geographic expansion opportunities. And as a result, we now operate a collection of insurgent brands that extends across price tiers and a variety of consumer needs. We are also committed to providing a strong return of capital to our shareholders. And our robust cash generation truly allows us multiple vehicles to deliver this return. First, we are excited to announce the initiation of a $0.15 per share dividend delivering a strong payout ratio of around 20%. This action is a clear reflection of both our commitment to deliver strong returns to our shareholders and the confidence that we maintain in our ability to deliver against our financial objectives. We also consider share repurchases as an additional option to deliver sustainable value to our shareholders, and we continue to explore this as part of our balanced approach to capital allocation. We currently have a $10 million repurchase authorization from our Board in place, and we anticipate that share buybacks will provide an efficient use of excess cash to further strengthen capital returns. These 4 strategic priorities come together to deliver an attractive long-term financial profile for Edgewell, characterized by 3 elements: first, sustainable organic net sales growth of between 2% and 3%, fueled by a disciplined approach to investing in our brands and markets; second, adjusted EBITDA growth of between 4% and 6%, with further cost transformation and strengthening gross margins; and third, adjusted earnings per share growth of between 6% and 7%, with a disciplined approach to both capital allocation and leverage. This is truly a new chapter for Edgewell with a sustainable top line growth profile that provides a quality and sustainability of profit, driven by a clear and compelling strategy. We're extremely excited by the opportunities we see for this business and committed to meeting our financial objectives. Thanks to all of you for your attention this morning, especially given the virtual format. We hope you've gotten a strong sense of where we are and what we have in store. Now for the procedural part. We're going to take a brief 5-minute break and then move into Q&A. We look forward to your questions. So please submit them through the chat function and be sure to identify yourself by name and company. [Break]

So, welcome back, everyone. I want to go to where we started today when I opened it up, with the 4 key takeaways that I want you to remember as the simple way to summarize everything you've heard over the last 2 hours, and then we'll get into the Q&A. But hopefully, as you've seen the last couple hours, the takeaways are really clear. And hopefully, you see what's behind them and why we're confident in the future of the business. The first is we have a strong core of great brands in this company. Second, we stabilized the business and not only stabilize the business, but built a very solid foundation for the future. Third, we have a winning strategy that we think will create a lot of value. And finally, and probably most importantly, we have the team in place to actually deliver on our objectives. So with that, I'll flip it over to Chris to go to Q&A and get started with that portion of the day.

Thank you, Rod. Welcome back, everyone. Just as a reminder, if you wish to ask a question, please submit your questions via the chat box. And please make sure you include your name and company, so we can ask the question. With that, I will move on to the first question. It's a 2 parter from Jason English of Goldman Sachs. You've given 25% of sales as the size of your growth portfolio in aggregate. What percent of profit is it? And can you give us the sales profit split between grooming, sun and skin care? And then I'll go to question 2 after this one.

Yes. Jason, the sizing is right at the top, and so that's right. There's not a meaningful difference in our portfolio between profit contribution from category to category. What holds true is that Wet Shave, blades and razors is our highest margin business. Everything else is a bit dilutive to that, but all in the same zone. And as we map out the business moving forward, and in fact, as you even look at '21 as a proxy versus '20, as you look at the incremental growth we're getting in Wet Ones, for example, it's not a material driver in terms of the margin shift within the company.

Thank you. The second part of the question was, Eric mentioned that insurgent brands grew 26% through COVID. I believe your Bulldog and Jack Black brands grew substantially below that level. Is that correct? Why are they losing share? And if so, why should we have confidence in your 15% growth target in that context?

Yes. So Jason, the couple of facts here to ground us. First, we remain very confident in our growth ability to put 15% annual on the board. That's no different than where we are today with that brand set, which is growing very nicely. But a couple of facts. That growth rate you saw from insurgent brands that you referenced is true, and part of our desire to acquire Cremo is it was the fastest-growing within that set. And so Cremo is not in the numbers, it is in the category number you quote. That's also a U.S.-based number. And U.S. is the market where Bulldog actually has the biggest opportunity. We're not well penetrated yet. In fact, we're effectively relaunching that brand now. And you heard Eric talk about us taking that into Walmart, and starting to amplify that in a bigger and different way. And then the final piece on Jack Black, which I think is worth noting. It grew again this year, double digits, as did Bulldog. In a grueling environment where prestige brick-and-mortar distribution was effectively shut down throughout the spring and early summer period, and despite that, we still grew through that period. How? Because now 60% of that brand transacts online.

Thank you, Rod. The next question comes from Olivia Tong with Bank of America. You discussed the growth versus stabilized brands. Can you talk about the underlying category growth? Do your targets assume additional M&A, either divesting slower growth or acquiring faster growth brands? And how fast do you think you can get to that point?

Yes. Olivia, I'm going to throw it straight over to Dan to answer your question directly on that one.

The way we thought about the categories, obviously, is different, whether we're talking about our right to win subsegment or right to play. And right to win, we are dealing with categories that we anticipate through our Euromonitor analysis will grow. So they have a clear growth profile to them. We will grow at a faster rate. Now that will be different, whether we're talking about grooming or sun and skin or Wet Ones. But in all 3, we will grow at a faster rate than the categories, and we'll gain share. On the other side, where we think we have a clear right to play, we're seeing categories Wet Shave and Fem Care, which are essentially going to be flat to slightly down in the aggregate. And we think that's a good proxy for our performance, which will allow us to hold share. In terms of the question on M&A, there is no M&A activity contemplated within our model, within our outlook. Now that shouldn't be seen that we're not doing our diligence. We actually have a robust pipeline of M&A opportunities. But we also have to acknowledge the bar for M&A is quite high right now. We're committed to investing behind the organic growth of this business as a priority. We are doing a lot of work, obviously, on M&A. We will stay relevant and active, but the bar is high for us at this point.

Thank you, Dan. The second parter from Olivia. Ad margin is down 350 basis points from its height. Why is this the appropriate level given many initiatives, particularly in skin care? Can you discuss mix of A&P versus promotion and digital versus traditional spend?

Yes. I'm going to go back to Dan, again, for the second part of this, Olivia.

I think the really important thing to take away from today is that our plan has an investment stance to it. Now before we focus too much on how much, we have to address how. Quality of spend is super important for us. And you've heard today how we're going to be disciplined in activating against our strategies in a focused and clear way, where we believe that the campaigns can work, we can spend behind the campaigns effectively, we can activate them successfully. Having said that, what we are contemplating is a step-up in investment in both A&P and likely in certain promotional cadences, but that's going to be on a category-by-category basis. Within A&P, you asked about market mix and media mix. I think you can look actually at Q4 where you saw working dollars delivering better value for us. You saw digital up 25%. That's probably a good proxy for how we will shift. But again, it's going to play out very differently as you look at categories and brands.

Yes. And Olivia, if I may, I want to go back to the first part of your question, with a little bit of extra context around the category growth question that you have in those right to play categories. Pre-COVID, if you look at growth rates for Fem Care, it was up roughly 1%. Shaving was essentially flat going into COVID. And as Dan said, that's kind of where we expect to be coming out the other side of COVID. And I think we've got pretty good line of sight to that based on what we're seeing. But I do want to take everyone back to a period of separation up through, let's call it, 18 months ago. And in our main category that we played in historically in Wet Shave, that category in the U.S. was down almost double digits. In fact, it was down over double digits through some of those periods, the worst category performance period we've seen on record. And that explains, frankly, some of our historical performance, given our exposure to that category. It's very, very different today, where we're at a flattish category range, actually a good outcome versus down mid- to high single digits throughout that period.

And then the last thing that I would add is to sort of look at the last couple of years and look at it through the lens of the Fuel program, which did a phenomenal job of taking costs out of the business. So it will be about $270 million by the time the program is done at the end of this fiscal year. What it didn't do as much of, though, is provide the cadence to reinvest in the business. And that's because the top line was faced with headwinds. Inflationary pressures were high, COVID ultimately this year, all sort of came together. This plan is very different than that. This plan calls for equally aggressive cost takeout over a 2-year period, but now you're doing it within a much more stable business with a portfolio of brands ready to grow. So now you're getting top line growth. You're not protecting profit with the cost reduction efforts. You're actually providing the fuel to invest, and that's what we're really excited about.

Thank you, Dan. The next question comes from Gary Merwitz with Investment Counselors of Maryland. Please address the competitive environment in Wet Shave and sun, both in the U.S. and internationally. How do you expect the competitive environment to evolve over time? And why do you think you'll be able to grow and maintain margins given this competitive intensity?

Gary, I'm going to start, and then I'm going to flip it over to Eric first and then Nick to give you their perspective on the markets, both here in the U.S. and internationally. In shave, let's start there with just an overview from me. It's as competitive, frankly, as I've ever seen it. And I go back to a time where, in a former life, I was with Proctor and as we were acquiring Gillette, it was the old 2-player setup. So from there to today, where you have some new entrants into the category, you have a level of competitiveness that frankly is fundamentally different. However, that's not any different than what we've seen over the last 3 or 4 years. What is different on our side is our capabilities that I think as you saw laid out today from a lens, if you haven't followed us through that time period, just fundamentally different and better capabilities as we address the market and build our brands and connect with consumers to offer very interesting propositions to them that, A, they like to try. And then when they try it, it's a great experience, and so they come back and stick with it. We have lost part of that model in Wet Shave. So while it's more competitively intense, we're also significantly better positioned to be successful in that environment in Wet Shave generally. Frankly, it applies to Fem Care as well. You didn't ask about Fem, but Fem is very similar in my mind there. In Sun Care, it's fundamentally different. You've got new entrants there with Sun Bum, and then you have the, let's call it, usual list of suspects that we compete against. And so I don't view sun any differently, frankly, than the past. And in fact, we're growing share in sun. We've been successful over this past year. Our brands are resonating with consumers. The innovation pipeline is super interesting and to be really good consistently at Sun Care, unique great upstream formulation and regulatory capability, and we have it. And you heard Anne-Sophie about what's next. It's going heavy into minerals but in a way that it goes on the skin, and it feels good, which is typically the hurdle around mineral sunscreens. So again, we're confident in Sun Care with our positioning today, and I think our capabilities only get better. But let me throw it first to Eric to give his perspective on what he is seeing in the U.S., and then we'll go to Nick.

Sure. Thanks, Rod. Yes. I'll just build on that a bit. I'll start with Sun Care first. On Sun Care, Sun Bum, as Rod mentioned, is doing well as a disruptor. We, however, really have established a leadership presence in the U.S. And I think that's giving us a lot of leverage in the marketplace and with the trade to start to define what the future looks like in Sun Care. In COVID, we had some weeks where we were up to plus 300, 400 basis points of share growth. And in fact, for the fourth quarter, we grew share in the business. We see that continuing into 2021 fiscal. A few things going on there. We've done a really smart job, I think, with segmenting the portfolio. Banana Boat is really squarely against families. And Hawaiian Tropic is moving really nicely into adult territory with a kind of a spa tone and manner. So feeling really good about where those businesses are kind of owning distinct market segments, giving us the ability to gain share in that category. In Wet Shave, echoing Rod's comments, very similar. We're really focused now on a couple of core brands in this space on both Hydro as well as Xtreme. We like the segmentation there and much more purposeful with our positioning. As I mentioned earlier in the comments, we have a full restage happening on Hydro. We're really excited about that. And we're going to put our focused effort in advertising and promotion on that brand in order to really generate some performance. We that focus and consolidation is really stronger than we've had in the past several years. Nick, over to you.

Thank you very much, Eric. I'll start with Sun Care as well. And in fact, I'll focus on that. But I called out Sun Care within international earlier on and explained that for us, we're able to leverage the global scale in creating a really strong innovation funnel. And that's a key to competing and being able to compete globally. So whilst we've got a different set of competitors in many of our markets, it tends to vary from market to market. The solutions actually are often the same. So the trends that we're seeing globally, we're able to develop good solutions through the innovation pipeline for that and then we can leverage that. So if we take our strong markets like Australia and Mexico, just as examples, we're not just holding share. We're actually strengthening share. And actually, we're able to use the innovation to hold that position long term. But also, even as we're entering new markets, we find that, that formula or that playbook for Sun Care worked really well for us as well. Three years ago, we had no sales in Germany at all, a very strong competitive market for Sun Care. So wind forward 3 years, we've already got 6% market share, and we're the number 3 brand. So I think it demonstrates the power of the range of products we've got, the excitement we can generate through the innovation, but then also the ability and the knowledge of how to execute within Sun Care. So it's very competitive. It's going to stay very competitive. And in a way, that can be a good thing because it can play to our strengths and we know how to compete. As for shave, I'd actually echo some of the same comments that Eric has said as well. It's the combination there of not only having the right consumer-centric innovations moving forward. And I think they're stronger than we've had in recent years, but also their ability to connect and communicate. We've really looked at that hard and some of the solutions that we've now got to roll out into market, including Master band solutions, that's something which we feel very confident we can take forward as well. So yes, it's very competitive. The good news is, I think we also have been able to demonstrate we know how to compete. Rod, back to you.

Thank you, Nick. The next question comes from Faiza Alwy with Deutsche Bank. Can you discuss the private label strategy in a bit more detail? You've talked about this business being profitable, but can you provide more color on the gross and operating margin characteristics versus branded? How diversified is the retailer base across channels and geography? How do you avoid losing branded business to private label going forward? Or are you agnostic?

Faiza, so on private label business, what we call Private Brands Group or PBG, I'll use PBG from here on out. It's a strategic asset for us as a company. And I think you heard Dan reference, it's roughly 25% of our Shave portfolio, and it's that portfolio average margins. And so it's a profitable business for us. Partly because the players and the manufacturing capability in IP all still remains very tight with only a few players that actually have that capability. Our business is very diversified not only within the U.S., but also geographically. And the interesting part of the PBG business for us moving forward is it's more important now than ever to retailers to differentiate themselves uniquely versus their competition in a set PBG part of the business that allows us to help them do that. For example, helping Target develop a brand, a master brand they have, Goodfellow. We've co-created and launched a razor with them under the Goodfellow name. Amazon, we're the global partner for Amazon for their Solimo razor. Solimo is the Amazon Personal Care brand. And so we work with them to create their own razor as part of their personal care portfolio. So it's more than just opening price point. Opening price point is obviously a big part of the business, but it's also that, that connection to retailers that we think is important and valuable. Now the other part of it, and you asked the question is, does it hurt our branded business to be successful in private label. We don't think so. There's a consumer and a shopper there who's always gone for a private label, low-cost type of product, and there's a consumer there that will try a new brand that's out there, good fellow, as I mentioned, as an example. And retailers are looking for the branded portfolio to play along with a private label or an own brand portfolio in a way that meets all the consumer needs, and the bulk of the consumer needs are still very much on the branded side. So we don't see it being a trade-off when we win in private label, typically, we're also winning on the branded side, we -- again, we don't see the trade-off there. So strategic asset, critically important, and we now haven't wired more than ever into the commercial teams as 1 go-to-market proposition, if you will.

Thanks, Rob. Just as a reminder, if you wish to ask a question, please put your name and your company in the question. Otherwise, it shows up as anonymous. The next question comes from Kevin Dreyer at GAMCO. What will drive the decision behind share repurchase, given the stock's persistent low valuation compared to other HPC peers, why not prioritize that as a use of capital more aggressively in the near term?