Edgewell Personal Care Company (NYSE:EPC) Q1 2026 Earnings call February 09, 2026 08:00 AM ET Company ParticipantsChris Gough - VP of Investor RelationsFran Weissman - CFOOlivia Tong - Managing DirectorRod Little - President and CEOConference Call ParticipantsChris Carey - Equity Analyst and Head of Consumer Staples ResearchNik Modi - Consumer Staples Equity Research AnalystPeter Grom - Equity Research AnalystSusan Anderson - Managing Director and Senior AnalystOperatorPlease note, this event is being recor ...

Reynolds Consumer Products (NasdaqGS:REYN) Q4 2025 Earnings call February 04, 2026 08:00 AM ET Company ParticipantsAndrea Teixeira - Managing DirectorJill Koval - Director of Investor RelationsKaumil Gajrawala - Managing DirectorNathan Lowe - CFORob Ottenstein - Senior Managing DirectorScott Huckins - President and CEOConference Call ParticipantsBrian McNamara - Managing Director and Senior AnalystLauren Lieberman - Managing Director and Senior U.S. Equity Research AnalystPeter Grom - Senior Equity Research ...

Financial Data and Key Metrics Changes - The company reported core income of $2.5 billion for Q4 2025, or $11.13 per diluted share, with a core return on equity of 29.6% [4] - Full-year core income increased by 26% to $6.3 billion, with a core return on equity of 19.4% [15] - Underwriting income for Q4 was $2.2 billion pre-tax, up 21% year-over-year, with an underlying combined ratio improving to 82.2% [4][17] Business Line Data and Key Metrics Changes - Business Insurance net written premiums reached $5.5 billion, with a renewal premium change of 6.1% [5][26] - Bond and Specialty Insurance grew net written premiums to $1.1 billion, with retention at 87% [7] - Personal Insurance reported net written premiums of $4.2 billion, reflecting strong renewal premium change in homeowners and higher new business in auto [8][37] Market Data and Key Metrics Changes - The company grew net written premiums to $10.9 billion in Q4 2025, driven by disciplined execution across all segments [5] - The investment portfolio grew by approximately $7.5 billion to $106 billion, with after-tax net investment income of $867 million, up 10% year-over-year [19][20] Company Strategy and Development Direction - The company is transitioning to Innovation 2.0, leveraging AI and technology to enhance underwriting, claims processing, and overall operational efficiency [10][11] - The focus remains on maintaining strong underwriting income and improving operational leverage through strategic investments in technology [14][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate substantial shareholder value, citing strong underlying business performance as a foundation for future results [16] - The outlook for fixed income net investment income for 2026 is projected at approximately $3.3 billion after-tax, indicating significant growth compared to previous years [20] Other Important Information - The company returned $1.9 billion of capital to shareholders in Q4, including $1.7 billion in share repurchases [5][23] - Adjusted book value per share increased by 14% year-over-year to $158.01 [22] Q&A Session Summary Question: Insights on technology investments and expense ratio - Management indicated that while the expense ratio is expected to remain flat at 28.5% for 2026, the company is focused on optimizing operating leverage and managing efficiencies [44][46] Question: Regulatory considerations on profitability - Management acknowledged the importance of addressing affordability issues and emphasized that the profitability of the Personal Insurance business should be viewed over a longer period [48][49] Question: Changes in renewal premium change in Business Insurance - Management noted that the deceleration in renewal premium change is attributed to both rate and exposure factors [50][51] Question: Capital return strategy and future buybacks - Management confirmed no change in capital management strategy and indicated that buybacks will depend on various factors, including catastrophe losses and overall profitability [52][54] Question: Catastrophe losses and their impact on premium growth - Management clarified that the expected impact of ceded premium on premium growth in 2026 is not anticipated to be significant [56]

Core Insights - The Coca-Cola Company (KO) is focusing on innovation to adapt to changing consumer preferences and maintain its leadership in the global beverage market [1][2][10] - The company is diversifying its product offerings beyond traditional soft drinks into rapidly growing categories such as flavored sparkling water, energy drinks, and ready-to-drink coffees [1][4][10] Innovation and Market Strategy - KO utilizes its global scale, strong brand equity, and a disciplined innovation pipeline to quickly bring relevant products to market [2][10] - The company employs an agile innovation framework that allows for rapid prototyping and market testing, enabling it to scale successful concepts while discontinuing underperforming products [3][4] - Coca-Cola is prioritizing packaging innovation, focusing on recyclable materials and lightweight bottles, alongside developing new marketing capabilities [4] Health-Conscious Offerings - The company is expanding its low and no-sugar product lines, particularly Coca-Cola Zero Sugar, to align with health-conscious consumer trends [5][10] - By introducing innovative flavors and product variants, Coca-Cola aims to capture the health-conscious market while retaining brand loyalty [5] Competitive Landscape - Key competitors include PepsiCo, which emphasizes value leadership and innovation in its portfolio, and Celsius Holdings, which is diversifying its offerings and tapping into lifestyle trends [6][7][8] Financial Performance - Coca-Cola shares have increased by 12.5% year-to-date, outperforming the industry average growth of 7.4% [9] - The company trades at a forward price-to-earnings ratio of 21.84X, higher than the industry average of 18X [11] - Earnings per share (EPS) estimates for 2025 and 2026 indicate year-over-year growth of 3.5% and 8%, respectively, with stable estimates over the past 30 days [12]

Financial Data and Key Metrics Changes - Net sales for the third quarter were $114.6 million, a decrease of 3.8% year-over-year, but better than expectations due to earlier shipment timing [5][23]. - Adjusted EBITDA was $30.8 million, representing a margin of 26.9%, which exceeded internal expectations [5][26]. - Year-to-date adjusted EBITDA is $81.0 million, with a margin of 25.5%, down from 34.8% in the prior year [26]. Performance by Business Line - Professional sales increased by 5.3% year-over-year to $44.5 million, driven by strong promotional management [23]. - Specialty retail sales declined by 13.5% year-over-year to $36.9 million, with a year-to-date decrease of 6.8% [24]. - Direct-to-consumer sales decreased by 2.9% year-over-year to $33.3 million, with a year-to-date increase of 1.6% [24]. Market Data and Key Metrics Changes - U.S. net sales were down approximately 4% year-to-date, while international sales increased by approximately 2% [25]. - The adjusted gross profit margin for the quarter was 71.5%, up 70 basis points year-over-year [26]. Company Strategy and Development Direction - The company has three strategic priorities for 2025: generate brand demand, harness innovation, and execute with excellence [8][18]. - The successful launch of new hair masks is seen as a critical part of the strategy to create new scientific products [15][17]. - The acquisition of Provalus Bioscience is expected to enhance the company's innovation capabilities in the health and beauty industries [17]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the execution of their strategy and the positive early indicators from marketing campaigns [30]. - There are concerns about consumer sentiment as the holiday season approaches, which may impact sales [34]. - The company reaffirmed its annual guidance, expecting net sales to range from -3% to +2% compared to fiscal year 2024 [29]. Other Important Information - The company generated positive operating cash flow, ending the quarter with cash and cash equivalents of $286.4 million and debt of $352.1 million [28]. - Inventory levels were reported at $73.3 million, down from $85.9 million in the same quarter of the previous year [28]. Q&A Session Summary Question: Were orders pulled into the third quarter across both specialty retail and professional? - Management confirmed that orders were indeed pulled into the third quarter, impacting expectations for the fourth quarter [32][33]. Question: Can you elaborate on the Provalus acquisition and its integration with Olaplex? - Management indicated that the focus is on delivering science-backed breakthrough products, with plans to integrate Provalus's technologies into future innovations [36][37]. Question: What are the expectations for holiday marketing and sell-through? - Management stated that the marketing organization is prepared for the holiday season, emphasizing the importance of giftability and desirability of the brand during this period [39][40]. Question: How is the overall promotional environment affecting pricing strategy? - Management is monitoring the promotional environment closely, preparing to adapt to market conditions as they unfold [41]. Question: What are the dynamics between U.S. and international sales? - Management noted that international sales outperformed expectations due to strong execution, while U.S. sales are improving but not yet positive [54][55].

Financial Data and Key Metrics Changes - Third-quarter net sales decreased by 7.2%, and core sales declined by 7.4%, primarily due to unfavorable macroeconomic conditions [17] - Normalized gross margin was 34.5%, down 90 basis points year over year, impacted by tariff costs and inflation [17][18] - Normalized operating margin was 8.9%, a decrease of 60 basis points compared to the previous year [18] - Year-to-date operating cash flow was $103 million, significantly lower than $346 million in the previous year [19] Business Line Data and Key Metrics Changes - The Writing segment performed well during the back-to-school season, remaining flat overall, but expected stronger results were not realized due to competitor pricing delays [8][9] - The Baby segment gained market share despite price increases, with three rounds of pricing taken to offset inflation and tariffs [10] - The Home and Commercial segment faced challenges, particularly in the Kitchen category, which was affected by macroeconomic softness in key markets [11][12] - The Outdoor and Recreation business showed signs of improvement, with third-quarter sales flat compared to the previous year [12] Market Data and Key Metrics Changes - International sales, which account for approximately 40% of total sales, are expected to return to growth in the fourth quarter after a slowdown in Brazil and Argentina [6] - Brazil's sales declined by 25% in the third quarter, a significant drop from previous growth rates [33] - Retailer inventory adjustments were largely one-time events, with expectations for stabilization moving forward [6][65] Company Strategy and Development Direction - The company is focused on productivity and overhead cost savings, with plans to increase promotional activities to restore price competitiveness [4][10] - A strong innovation pipeline for 2026 is anticipated, with over 20 new product launches planned [48] - The company aims to broaden distribution and enhance product innovation while navigating the challenges posed by tariffs and macroeconomic conditions [27][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment, including trade disruptions and tariff costs, but expressed confidence in the company's turnaround strategy [4][16] - The company expects sequential improvement in normalized profitability and cash flow as tariff-related costs subside [15][26] - A more conservative view of consumer demand for the fourth quarter has been adopted, with expectations for a 3% decline in aggregate categories [14][15] Other Important Information - The balance sheet remains solid, with net debt at $4.5 billion, down from the prior year [14] - Advertising and promotion spending reached its highest rate as a percentage of sales in nearly a decade, reflecting a commitment to brand building [13] Q&A Session Questions and Answers Question: Can you discuss the organic sales standpoint and the visibility into trends? - Management noted that retailer inventory reductions were more significant than expected, particularly in September, impacting sales [32][34] Question: What is the impact of aggressive pricing actions across categories? - Management indicated that while pricing in the Baby category was successful, the Kitchen segment faced challenges due to competitors not following pricing increases [36][37] Question: How does the company view the inventory destocking and pricing in international markets? - Management expressed confidence that the inventory destocking impact is behind them and noted that pricing adjustments have been made in Brazil and Argentina following recent elections [66][67] Question: What are the expectations for category growth and sales growth looking into 2026? - Management remains optimistic about 2026, citing a strong innovation pipeline and improved distribution as key factors for growth [57][58]

Group 1: Coca-Cola's Innovation Strategy - Coca-Cola's innovation strategy is central to its growth narrative, focusing on new flavor profiles, packaging formats, and digital marketing models [1][8] - The company is blending heritage with novelty, responding to health-conscious and experience-driven consumers through initiatives like Sprite + Tea and Coca-Cola with U.S. cane sugar [1][3] - Coca-Cola's approach of "test small, learn fast" helps manage risks associated with new product development while maintaining financial discipline [2][8] Group 2: Competitive Landscape - In a competitive beverage market, PepsiCo and Keurig Dr Pepper are also pursuing growth through innovation and consumer-focused strategies [4] - PepsiCo emphasizes flavor innovation, sustainability, and digital engagement, launching energy-infused beverages and healthier snack options [5] - Keurig Dr Pepper leverages its coffee and beverage platforms for convenience and customization, expanding in ready-to-drink categories [6] Group 3: Financial Performance and Valuation - Coca-Cola's shares have increased by 7.7% year to date, outperforming the industry's growth of 3.2% [7] - The company trades at a forward price-to-earnings ratio of 21.21X, higher than the industry's 17.73X [9] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 3.1% for 2025 and 8.2% for 2026, with estimates remaining unchanged recently [10]

Core Insights - Boston Beer Company is navigating a challenging operating environment characterized by macroeconomic uncertainty, pressured consumer spending, and weak category demand, yet it has achieved strong margin gains and earnings growth [1][4] - The company's innovation strategy, particularly with products like Sun Cruiser and Twisted Tea Light, is driving consumer engagement and brand relevance, helping to offset declines in more mature categories [2][7] - Boston Beer is focusing on long-term brand building, reinforcing core brands like Twisted Tea and Samuel Adams while expanding newer offerings, which illustrates a disciplined strategy in a competitive beverage landscape [3][4] Financial Performance - Despite weak demand and soft retail traffic, Boston Beer posted margin gains and earnings growth, indicating resilience in its financial performance [7] - The company's shares have gained 18% over the past three months, outperforming the industry and broader Consumer Staples sector, which declined by 6.6% and 1.8%, respectively [5] Valuation Metrics - Boston Beer currently trades at a forward 12-month P/E ratio of 20.43X, which is higher than the industry average of 13.82X and the sector average of 25.51X, suggesting that investors may be pricing in stronger growth prospects [9]

Core Strategy - Colgate-Palmolive Company's innovation strategy for 2025 aims to boost market share amid macroeconomic challenges by focusing on impactful innovation, data analytics, AI, and omni-channel demand generation to support its 2030 strategic plan [1][4] - The company is introducing core and premium products across regions to enhance brand health and household penetration, with notable launches in oral care such as Colgate Max White Clinical in the U.K. and Miracle Repair serum-infused toothpaste in China [1][2] Product Innovation - The innovation drive extends beyond oral care to personal and home care, as well as Hill's Pet Nutrition, with products like Sanex Skin Therapy in Europe and relaunches of Protex bar soap and Suavitel Superior Care in Latin America [2] - In the Hill's Pet Nutrition segment, innovations like ActivBiome+ Multi-Benefit in Science Diet target niche therapeutic needs, appealing to veterinarians and pet owners [2] Premiumization Strategy - Colgate's approach includes premiumization to capture higher-margin sales and differentiate from value-tier competitors, with brands like Colgate Total and elmex leading premium growth in markets like Latin America and Europe [3] - The company maintains robust advertising investment over 13% of net sales to reinforce consumer awareness and trust amid intense competition [3] Future Outlook - The 2025 guidance acknowledges weaker category growth in the first half and potential raw material inflation headwinds, but management expects innovation-led volume gains and targeted pricing strategies to offset these pressures [4] - If executed effectively, Colgate's innovation pipeline across various segments could serve as a primary catalyst for market share gains in 2025, enhancing its competitive positioning in both mature and emerging markets [4] Competitive Landscape - Key competitors in the global market include Church & Dwight, Procter & Gamble, and Clorox, each driving growth through their own innovation strategies [5][6][7][8] - Church & Dwight focuses on both premium and value segments, while Procter & Gamble leverages a "superiority" strategy with digital-first marketing [6][7] - Clorox emphasizes value-driven offerings and sustainability across its portfolio, aiming to strengthen brand relevance and capture new users [8][9]

Financial Data and Key Metrics Changes - The company is experiencing a transition due to a challenging economic environment and shifting consumer trends, which have pressured end markets and hampered recent results [6][7] - Management expects benefits from executing their portfolio strategy and developing a pipeline of innovation, indicating confidence in long-term growth [7] Business Line Data and Key Metrics Changes - The competitive environment has intensified, particularly in the traditional loaf area, with lower-priced entrants affecting results [12][13] - The company is addressing the value shopper segment with new product lines and has seen good performance in premium differentiated products [12][13] - The foodservice business has been refilled with higher-margin products, significantly improving profitability [58] Market Data and Key Metrics Changes - The market remains bifurcated, with strong performance in both premium differentiated products and value offerings, particularly in mass and club channels [12][13] - The company has noted continued weakness in the away-from-home foodservice business [14] Company Strategy and Development Direction - The company is committed to innovation to navigate the transition in consumer preferences, particularly moving away from traditional loaf products [30][31] - Management emphasizes the importance of maintaining brand strength and innovation as key strategies to address competitive pressures [36][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the transition will take time and requires patience, viewing it as a generational shift in the category [51][53] - There is optimism that the category will eventually stabilize, although the timeline is uncertain [52][53] Other Important Information - The company is focused on debt paydown and is cautious about M&A activities in the near term, although it remains a strategic priority [61] - The company has plans to address the weakness in large brands like Nature's Own while continuing to invest in its leading brands [55] Q&A Session Summary Question: Competitive intensity and pricing pressures - Management noted that the promotional environment is elevated but stable, with a focus on differentiated products to drive trial and awareness [12][13] Question: Tariff outlook and capital allocation - Management expects tariffs to decrease significantly and will continue to evaluate capital allocation based on performance and cash flow [18][19] Question: Nature's Own brand performance - Management confirmed that they are committed to investing in Nature's Own and other mainstream loaf products, using a mix of promotional support and marketing [65][66] Question: Innovation and Simple Mills - Management indicated that Simple Mills will continue to innovate aggressively and is performing well despite challenges [43][48] Question: Transition timeline and gross margin management - Management stated that the transition will take time, but there are levers to maintain gross margins despite volume pressures [57] Question: M&A appetite - Management indicated a cautious approach to M&A in the near term, focusing on debt reduction while monitoring market opportunities [61] Question: Retailer changes and shelf space allocation - Management observed that retailers are increasingly focusing on organic products and small loaf segments, reflecting changing consumer trends [73][74]