Financial Data and Key Metrics Changes - The company reported a net sales decline of 10.2% in Q3, with organic sales decreasing by 11.1% when excluding foreign currency benefits [20][34] - Adjusted EBITDA was $76.6 million, a decrease of $29.7 million year-over-year, primarily due to lower sales volumes and reduced gross margins [35][36] - Gross margins contracted by 110 basis points to 37.8%, driven by unfavorable mix, tariffs, and inflation [21][35] Business Line Data and Key Metrics Changes - Global Pet Care reported a net sales decrease of 9.6%, with organic sales down 11.4%, primarily due to targeted stop shipments during tariff-related pricing negotiations [38][39] - Home and Garden net sales decreased by 10.3%, negatively impacted by a cold and wet start to the season [46] - Home and Personal Care saw a reported net sales decline of 10.8%, with organic sales also down 11.4%, driven by softness in personal care and home appliance categories [52][53] Market Data and Key Metrics Changes - The overall North American Companion Animal category declined in the low single digits, while European consumer sentiment weakened, impacting sales [40][45] - In Latin America, organic net sales grew in the low double digits, predominantly in the chews category [41] - The Home and Garden category experienced lower total sales, but Spectracide gained market share in pest control products [47] Company Strategy and Development Direction - The company is focused on protecting its balance sheet and maintaining a nimble stance during volatile times, with a target of approximately $160 million in free cash flow for the fiscal year [26][60] - There is an ongoing effort to diversify the supplier base and develop non-Chinese sourcing alternatives to mitigate tariff impacts [16][17] - The company is actively pursuing M&A opportunities to accelerate growth in its pet and home and garden businesses, while maintaining a disciplined approach to capital allocation [29][83] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming near-term tariff-related volatility and emphasized the importance of making difficult decisions for long-term health [19][66] - There are signs of improving macroeconomic conditions, with expectations for consumer confidence to stabilize as geopolitical tensions subside [65][66] - The company anticipates a strong start to Q4, with improved sales performance and positive momentum in the Home and Garden division [23][66] Other Important Information - The company executed cost reduction activities, expecting to reduce costs by over $50 million in fiscal 2025 [15] - Share repurchases totaled approximately 900,000 shares during Q3, with a total of about 4 million shares repurchased since the HHI transaction [31] - The company is streamlining its global business and reducing fixed costs while diversifying its sourcing footprint [59] Q&A Session Summary Question: How much sales were left on the table by stopping shipments in Q2, and what impact lingers into Q4? - The estimated sales left on the table in Q3 is around $30 million, with a significantly lower impact expected in Q4 [72] Question: Why is guidance still difficult despite improved clarity on tariffs? - The company emphasized the complexity of the situation, noting that Q3 results were distorted due to significant operational changes and tariff impacts, making it challenging to provide accurate guidance [75][76] Question: Can you discuss your capital allocation strategy in a soft consumer environment? - The company believes the market is undervalued and plans to continue share repurchases while pursuing M&A opportunities to grow its pet and home and garden businesses [82][83]

Fiscal 2025 Third Quarter Earnings Call August 7, 2025 Hex: #CAE8FA RGB: 202-232-250 Hex: #565656 RGB: 86-86-86 Hex: #192D53 RGB: 25-45-83 Hex: #67AE3E RGB: 103-174-62 Hex: #0066B3 RGB: 0-102-179 Hex: #BCBEC0 RGB: 188-190-192 Hex: #808285 RGB: 128-130-133 Hex: #333333 RGB: 51-51-51 Hex: #00C0F3 RGB: 0-192-243 RGB: 0-192-243 • Introduction – Joanne Chomiak Senior Vice President, Tax and Treasury • CEO Overview – David Maura Chairman and Chief Executive Officer Hex: #CAE8FA RGB: 202-232-250 Hex: #565656 RGB: ...

Financial Data and Key Metrics Changes - Net sales increased by 1.2%, with organic net sales up 1.9% excluding unfavorable foreign exchange impacts [9][27] - Adjusted EBITDA was $77.8 million, a decrease of 7.7% driven by prior year investment income and increased brand-focused investments [29] - Gross margins improved by 140 basis points to 36.8%, supported by cost improvements and operational efficiencies [28] Business Line Data and Key Metrics Changes - Global Pet Care reported a net sales decrease of 6.1%, with organic sales down 6.4% due to a strategic pull forward of sales from the previous quarter [31] - Home and Garden net sales increased by 27.9%, driven by seasonal inventory builds and a warm fall season [38] - Home and Personal Care saw reported net sales increase by 1.4%, with organic net sales up 3.1% [44] Market Data and Key Metrics Changes - E-commerce sales accounted for over 30% of Home and Personal Care's quarterly global sales, significantly outpacing brick-and-mortar sales [44] - In North America, consumer trade downs impacted premium brands in the pet category, leading to low double-digit sales declines [33] - EMEA markets experienced high single-digit growth in both personal care and home appliances, with strong e-commerce performance [45] Company Strategy and Development Direction - The company is focusing on brand-driven investments to drive long-term growth, particularly in advertising, marketing, and R&D [14] - Strategic investments are being made in inventory to support sales growth, especially in e-commerce [15] - The company is actively working to mitigate tariff impacts by moving production out of China and redesigning supply chains [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the start of fiscal 2025, highlighting strong operational performance and healthy inventory levels [55] - The company anticipates cautious consumer behavior due to the evolving international trade environment and potential price implications [53] - Future sales growth is expected to be low single digits, driven by brand-building investments despite geopolitical and economic pressures [49] Other Important Information - The company repurchased approximately 800,000 shares in the first quarter, with a total of $1.2 billion returned to shareholders since the close of the HHI transaction [22][23] - The company plans to launch new products in the pet care segment, including health and wellness products, to capture market growth [16][90] Q&A Session Summary Question: Retailer commitment to the Home and Garden category - Management noted that retailers appear committed to the category, with incremental off-shelf seasonal space being allocated [61][66] Question: Potential delay in HPC business - Management acknowledged the delay but emphasized the importance of improving the business fundamentals and the potential for higher valuations in the future [70][72] Question: E-commerce growth in Global Pet Care - Management reported double-digit growth in POS for e-commerce, despite some capacity issues with a major retailer impacting shipments [76][78] Question: M&A strategy and needs - Management has been evaluating numerous transactions but is cautious about price points, focusing on organic growth and maintaining discipline in M&A [87][90] Question: Tariff impacts and competitive dynamics - Management highlighted the limited tariff impact on Home and Garden and the ongoing efforts to reduce exposure in the HPC segment [95][98]