PBH
#Sure.
One of our other big international brands is Chloraseptic which actually has fairly broad distribution.
We think about the international part of the business pretty simply which is we look to have strong growth and actually growth above what we are realizing in North America over the long-term.
We deal with it market by market and we look for places that we can make the right balance of investment and get a return on it through sales growth in those markets.
Again, each quarter we like to call out and give some further insight into our brands and the activities we have going on and this quarter we wanted to call out the international part of the business.
It has been performing very well for us and we wanted to give some insight into the brands behind that success.
That is why we called out international.
In terms of revenue growth and the split between the first half and the second half of the year, in the second half specifically in the fourth quarter we are going to start comping against DenTek which will impact organic growth rates in the second half of the year.
And then the second part of it is we do have some impact on the cough cold season in the second half of the year that can impact growth rates in the second half compared to the first half.
You know, we actually have fairly strong distribution with Boots in the UK right now with Chloraseptic, Murine and DenTek which the business is actually growing quite nicely for us over there.
So we have already got well-established distribution with Boots.
The other comment I will have on really any of the retailers that have an international footprint is that buying decisions are really made locally so you have to make the connections and win the distribution on a local basis.
We are in the very early innings of the Monistat healthcare professional detailing program.
We kicked it off in the quarter ended December last year so we haven't even been at it a whole year yet.
It is going to be a very long-term investment and proposition for us.
You have to get out there and win doctor by doctor and it takes a lot more than just one call to educate the doctor on the benefits of Monistat versus the prescription that they have been used to providing to their patients.
So it is going to be a long-term process and we are very early on in that initiative, <UNK>.
Sure.
If you look at our consumption trends for the Invest for Growth portfolio you would see that during the quarter we were at roughly 3.5%.
Last year we were at 8% or something like that.
The big driver was the incident level of yeast infections was actually minus 3% during the quarter.
There is seasonality in yeast infections so it was down 3%.
The prescription market was down 5% during the quarter.
The good news is Monistat was flat during that period.
So we continue to feel very good about the initiatives in our approach to brand building for Monistat where we can be flat in a market that is down 3% to 5%.
So that is the driver there, so Monistat from a shipment standpoint was down slightly during the quarter as well versus last year but again in a category that was down minus 3% to minus 5%.
Yes, we grew share and again it validates we feel what we have got going on for initiatives in that space.
Yes, I was commenting for fiscal year 2015 and fiscal year 2016.
So both of those years consumption was ahead of our shipments in.
So my comment is we have had a long period of consumption outpacing shipments.
We have had headwinds of retailers reducing inventory for a long time.
One quarter of shipments a point ahead of consumption hasn't affected the level of inventory at retail is what my comment was all about, <UNK>.
No, we think consumption will be in line or maybe even slightly ahead of shipments for fiscal 2017 because we expect some retailer consolidation and some other activities to put further pressure on reducing inventory at retail.
Again, we have included the impact of that in our expected outlook for the year.
No, we continue to feel that organic growth will be in that range for the year.
Yes, <UNK>, this is <UNK>.
I think that is fair.
I think if you look at the contribution on this business and then you factor in the amortization which <UNK> said is about $3 million on an annual basis and then reduce interest expense, it is pretty much a wash.
On average for our non-core that is true but for this specific group of brands, the contribution margin was well below the average for the company for these brands.
Especially for PediaCare and Fiber Choice where we had been investing heavy both in trade and some A&P activity to try to get them back on growth trajectories.
Yes, we haven't thought about setting another target outside of the 85% at this point.
We haven't updated the estimate from the original amount of $7 million to $8 million.
So household gross margins will fluctuate quarter to quarter based on the merchandising and promotional activity that we have got going on in any given quarter.
For the household business, it is all about winning at shelf and it is a price value proposition so programs will fluctuate which will impact gross margin.
But in terms of the Company's overall gross margin, we were very pleased with it at 58%.
It is in line with the outlook that we have for the year which we said would be between 57.5% and 58%.
The DenTek addition was slightly dilutive to gross margin which is really one of the big drivers in gross margin change year-over-year from the 58.4% last year to the 58% this year.
But in general we feel good about gross margin in the first quarter.
We haven't seen any new entrants into the categories that we compete and with DenTek.
There are a number of smaller brands that we compete against in and I would say the dynamics in the category during the last two quarters that we have owned it have been fairly consistent with the long-term trends that we reviewed during our diligence for the business.
So no real changes in the dynamics there and we continue to feel good about high single-digit growth for that category over time and DenTek's position within that space.
Thanks everyone for joining and have a good day.
