Question · Q1 2026
Michael Joseph Harrison sought more details on the increased marketing spend within the Consumer Group, including specific advertising types and product lines, and asked about the quantifiable impact and trend of manufacturing inefficiencies from plant consolidations.
Answer
Frank Sullivan, Chairman and CEO, clarified that increased marketing spend was primarily higher advertising, disproportionately focused on social media and e-commerce, particularly for cleaners and The Pink Stuff. Russell Gordon, VP and CFO, quantified manufacturing inefficiencies at approximately $10 million in unfavorable year-over-year conversion costs and absorption in Q1, expecting this to continue in Q2, with Frank Sullivan providing the example of the Tremco Sealants Toronto plant transfer.