Richard Dearnley

Richard Dearnley of Longport Partners sought Walter Johnsen's opinion on whether the administration's high tariffs on China were a negotiating tactic. He also questioned if the strong 14% growth in the first aid segment was primarily due to easy year-over-year comparisons after a flat performance in 2024.

Answer

Executive Walter Johnsen declined to speculate on the administration's strategy, reiterating China's integral role in the global economy. Regarding first aid growth, Johnsen stated that while 14% was strong, the long-term organic growth rate remains in the 8-12% range. He emphasized that future reported growth will be significantly influenced by pricing actions related to tariffs, in addition to the underlying organic growth.

Richard Dearnley questioned the reporting of European sales figures and asked for clarification on segment performance, noting that Westcott's growth seemed to mathematically imply a decline in the First Aid business. He also questioned the reported $30 million figure for first aid refills.

Answer

Paul Driscoll, an executive, confirmed that European sales were in the press release and clarified the sales calculation. He explained that the prior year's results included $9 million from the divested Camillus and Cuda businesses; after adjusting for this, both First Aid and Westcott showed growth. Walter Johnsen, an executive, added that the $30 million refill figure is a net number after rebates, which may differ from previously discussed gross sales figures.