Guidance and Outlook
Q: Why did you raise bottom-line guidance but keep top-line guidance the same?
A: After a strong Q1, especially in gross margin, we felt it necessary to reflect that in our earnings outlook, hence we raised the bottom-line guidance. However, it's still early in the year, and we typically don't adjust our top-line guidance after Q1. We'll discuss the outlook more in July. -

Gross Margin Progression
Q: What's your outlook on gross margins, and what factors will affect them?
A: The strong gross margin in Q1 was driven by higher volumes and favorable mix. Going forward, gross margin growth may not be as fast due to lapping the carryover pricing and adding fixed costs for capacity expansion, like new distribution centers. The impact of lapping HERO distribution gains on gross margin is not significant. - -

Laundry Volume Outlook
Q: What are your expectations for laundry volumes in the coming quarters?
A: We expect continued improvement in laundry volumes as we normalize trade spend and increase couponing and trade support for new products like Deep Clean, launched nationally. We're well-positioned due to success in unit dose (grew 34% in the quarter) and scent boosters (grew 7%), benefiting from consumer trade-down. -

Vitamin Category Performance
Q: What's affecting the vitamin category, and what are your expectations?
A: The vitamin category has been down around 5% in both Q4 and Q1. Factors include post-COVID effects, reduced discretionary spending, and a shift from gummies to other forms like powders and chewables. We're launching a chewable this year, increasing marketing spend, and seeing retailer support. We aim to stabilize and see growth inflection in the second half. -

Innovation Contribution
Q: What's the expected contribution from innovation, and how are new products performing?
A: We anticipate about 2% of our organic sales growth to come from new product launches, making this one of our biggest years for innovation. Early indications show products like Deep Clean in laundry and THERABREATH antiseptic are meeting or exceeding expectations, with high velocities and retailer support. -

Acquisition of GRAPHICO
Q: Why did you acquire GRAPHICO in Japan, and are you considering similar deals?
A: GRAPHICO has been our distributor for 25 years, making OXICLEAN the number one prewash additive in Japan. Acquiring them gives us a capable team and a base in Japan to introduce other products and expand in Southeast Asia. We're always on the hunt for acquisitions, but that's all we can share now. -

International Sales Growth
Q: Was international growth due to distribution expansion or existing market strength?
A: The growth was broad-based, with all six subsidiaries and the Global Markets Group contributing. It's due to being selective with brands and retailers, leveraging revenue growth management, and launching new brands like HERO and THERABREATH internationally. Responses in many countries have been great. -

Managing Share and Profitability in Laundry
Q: How are you balancing share and profitability as you increase trade spend in laundry?
A: We're balancing trade spending and growth effectively. After cutting ineffective promotions last year, we're normalizing trade spend to support new products without exceeding category levels. Our trade spend remains below category average, maintaining profitability while driving share. -

HERO Business Performance
Q: What trends are you seeing in the HERO brand's demand and user growth?
A: HERO volumes continue to grow, driven by increasing awareness and household penetration. The brand has significant potential ahead, and we're expanding into adjacent areas like skincare pre- and post-acne treatments. We're also launching HERO in 40 countries this year. -