KMB
#I will take the first one, and I will throw <UNK> the second one on Halyard.
So on adult care trends, we have ---+ we would probably say we have successfully defended and Procter will probably say later this week they have successfully launched.
And so we have lost less than our fair share.
If you look sequentially, I think we were down about 0.5 points overall.
I think if you looked year-over-year, <UNK>, we are down what.
We are down about 4 points.
A little bit more on the Poise side, less on the Depends side.
We're launching more innovation this year, and are aggressively competing and promoting, as is our primary competitor.
So I think private label and the other small branded player have lost more than their fair share.
And in the meantime, the category growth has picked up.
So we saw solid high single-digit category growth, which may be a little overstated because of the amount of couponing that's out there in the marketplace, but it is still a strong performance.
<UNK>, on Halyard, that 3% impact which we reported as mix and other in KCP is less than half of their organic growth for this quarter.
So it was an important component, but it wasn't really the underlying driver.
And the agreement will run for two years.
And I'm sure there is a small markup on that.
I'm sure the Halyard team is looking for alternative supplies as quickly as they can, but the agreement commitment is two years.
All right.
We'll see you at Powers Lake.
Are you talking about any market in particular.
North America is essentially a club ---+ is the biggest non-scan channel, and are probably underweight historically in club on tissue products.
And so that has been an area that we have been trying to crack into with Cottonelle, and Viva, and Scott tissue and things like that.
So we had some success in the first quarter, and that enabled some of that growth.
If you looked more broadly, particularly in Asia, e-commerce is probably by far the biggest non-track channel that I would say outperforming in relative to the track channels.
So Korea and China, in particular, would be places where we would see better growth than the track channel.
It is a tough competitive marketplace out there, <UNK>, as you have noted.
Pretty much everybody wants to eat our lunch somewhere, so we have got strong global competitors, we've got some strong local competitors.
And so we have got to have good innovation, and be competitive on price, and execute well every day to keep it going.
So we see that with some of the things that Procter is doing on diaper pants, but we'd also would say Unicharm and Kao in many ways have some of the best performing products that we benchmark against.
And so we're up against those guys in lots of different places.
And I am really proud of the way the teams have executed and got better performing products with good execution in market.
I would say, <UNK>, that our categories are largely local.
Our stuff doesn't ship long distances.
So you might get some currency change like on commodity inputs and things, but largely the battle is fought locally.
I think with our motto, we're set up to do that as well as anybody.
It is tough.
I think if you look sequentially, I think our city comp didn't change much.
If you looked versus first quarter last year, we were at [105%] versus [90%] last year.
But I would also tell you, e-comm probably was the bigger growth factor than the city comp change.
So some of that is category penetration or channel growth that is helping those consumers get products in a different way.
But, <UNK> was just in China about a month ago, so he's probably got a more relevant snapshot of what you saw when you were over there.
So maybe you can give us some local color.
I would say, <UNK>, too, that the market is still growing at very healthy rates.
It is down from where it was, but our team still is very excited and executing well in bricks and mortar.
But e-comm is a place where we have invested a lot and we are over indexed.
And as <UNK> said, that is probably the place where we have driven more of the relative share gains.
I think the category is still growing at high single to low double-digit.
And double digits this year.
So we are growing at a multiple of that.
And city expansion is a piece of it, but I would say e-comm and channel expansion is the bigger component.
Yes.
Our China team is working with our big e-comm customers to figure out ways to take costs out of the whole supply chain.
So we have done some of that in larger cities as well.
I will let <UNK> get into the SG&A overall.
The top line, on an advertising spend standpoint we were down 10 basis points as a percent of sales versus prior year.
But we were basically 10 basis points higher than the average of advertising spend for the full year of last year.
So it was in the ballpark of what we would expect normally around 4% of sales.
On the SG&A, you probably had a little bit of currency benefit that would affect it.
But maybe <UNK> has got some additional color on that.
<UNK>, I think currency ---+ when you look at the absolute dollars, currency is a big shift.
We have obviously ---+ if you'll look at the difference between gross margin and operating margin, we have got some between the lines efficiencies that the businesses are driving.
But currency is probably the biggest impact.
Like I said, we have been getting the distribution which started in mid-March, and we should be in about 80% of the channels by late April.
And that is really when you will start to turn on more of the marketing effort at that point in time.
We're probably seeing a little bit better consumption data than I would say you're quoting from the data you are saying.
But it is still early days on the relaunch at this point.
Two factors.
I would say probably two-thirds of it was or 25% of it was volume, and balance of 30% of it was price.
So some big price increases.
Some of the volume was buy-in ahead of an April 1 price increase.
But I think if you talk to that team, they'd double-digit volume growth in Eastern Europe is the right way to think about what they are aiming at for the year.
And then, they are attempting to get as much price as they can to offset the currency impact.
Eastern Europe you would see less volume growth, but we'll get the benefit of the price increase that went in.
So I wouldn't necessarily assume that you will see a big deceleration.
55% is probably higher than you would typically expect to see going forward.
So you'll see some deceleration in Eastern Europe overall, but I think emerging markets should still have another strong quarter.
Let me take the cost savings one first.
<UNK>, I think it's just how the math works and a little bit of programming.
So typically, we will work out an annual budget cycle and the teams are focused on annual incremental programs.
And you are exactly right.
The programs that we had in place last year don't stop.
They are delivering.
But we also launch and think creatively about new programs to help us hit our near-term target.
And so I think it is just a matter of the phasing as we go.
The underlying programs roll into your base, and then you are looking to build on top of that as we go.
So you look at cumulative cost savings over time, it is a pretty big number.
But they build on each other over time.
It is just the way the planning process goes and how the businesses behave.
Switching to adult care, we have known for a long time that a lot of women that have light bladder leakage issues.
And one in three women at some point in their life experience light bladder leakage, that they've used fem care as a solution.
And so given that we have a much larger share with our Poise brand in that space than we do in fem care, we would love to shift them into that space.
It is a better solution, and it's a place where we are going to get more than our fair share of those new consumers.
So you are seeing a little bit of that of the growth in Poise has been a bit of a decline in the fem care category.
And overall, we should benefit from that and consumers will get a better solution for the issues that they are trying to treat.
We thank everyone for their questions, and I will turn the call back to <UNK>.
Well usually I give the last word on these calls, but since this is <UNK>'s last call, I am going to throw it to <UNK> and let <UNK> have the last word today.
I'm just grateful to work for Kimberly-Clark.
I have a cold today, so I have the world's softest facial tissue right at hand, and also have antivirals so I don't transmit my germs to my fellow conference call mates.
I have had the good fortune to build a career at a great company like Kimberly-Clark, and work with great leaders like <UNK> who always got the best out of me.
Work with great people like our investors and our Board of Directors, the leadership team that <UNK> has, my leadership team.
And it is it has been a very good run.
I'm really proud of what we have accomplished.
But I'm also optimistic about the future.
<UNK> has made a great selection for my successor.
Maria is fantastic.
And she is going to see opportunities that, quite frankly, being around for a long time I just didn't see.
So I am optimistic about the future, and committed to helping Maria and the new GSLT get started up.
So thanks for your support, and thanks as always for your support of Kimberly-Clark.
Thank you very much.
