Goldman Sachs Global Staples Forum 2020

May 18, 2020

Slides

Good morning, everyone, and thank you for joining us for this year's Goldman Sachs Global Staples Forum. However, this year, we're doing it virtual rather than live on stage in New York. But nonetheless, I think the event's gonna go off without a hitch. Kicking us off this morning is Perrigo. I'm excited to hear the presentation, to hear how their their story's evolving. But before we get into all the fun and excitement, I've got a few disclosures that I need to get out of the way. First and foremost, this conversation is not intended for the media. It was off the record. This call webcast is not for the purpose of sharing or receiving nonpublic or otherwise confidential information. Attendees are public side market participants who may not receive and should not request nonpublic or otherwise confidential information about issuers or securities or about the markets for securities. And bear with me. I'm not quite done just yet. We're required to make certain disclosures and public appearances about Goldman Sachs relationship with companies that we discussed. The disclosures relate to investment bank relationships, compensation received, 1% or more ownership. We're prepared to read a lot of disclosures for any issuer upon request. However, these disclosures are available in our most recent reports available to you as clients on our firm portals. Okay. With that out of the way, and it's also detailed on slide two, if you wanna go back and and catch all the language, I'm I'm happy to now pivot. We're gonna pivot to webcast format. For all of you who are tuned into the webcast, you would and should see on the bottom a q and a submission option. So as we go through, if questions pop in your mind, feel free to post them there. I'll be able to read them, and I'm gonna be happy more than happy to post them, assuming they're appropriate, up to management as the, as the webcast evolves. Okay. So kicking us off this year, as I mentioned, is Perrigo. Perrigo is an interesting company. It's embarked on a transformation from a health care business to what what it calls a consumer self care company as a pure play, over the counter consumer packaged goods business. Joining me on this virtual stage to tell the story is Murray Kessler, Perrigo's president and CEO. Many of you may know Murray from his time leading the Lorillard tobacco company before this or UST and Altria before that. Joining mister Kessler is mister Raymond Silcock, Perrigo's CFO. Mister Silcock has a long track record of public and private company CFOs, including CPI Foods, Diamond Foods, and UST. So with that, let me turn the stage over to Murray to give us a little bit of an overview before we jump into q and a. Murray, the stage is yours. Thank you, Jason. I'm gonna move to our forward looking statements. I'm not gonna go through them in as much detail as you. Just encourage everybody to to read and understand our forward looking statement. So we'll start on the slide that says Perrigo is a $5,100,000,000 global self care leader. For those of you who don't know us, we are focused on transforming to a great consumer self care strategy. 80% of our net sales, in fact, are consumer packaged goods business. We are the leading self care provider over the counter in The US as well as in store brands as well as infant formula and oral care. And internationally, we are branded products Primarily, we have a store brand business there, and we tend to have a string of pearls. Regional jewels throughout Western Europe is primarily our where we do 95% of our international business. And then, again, those are focused consumer brands, tend to be number one, number two in each of their individual markets. And then we have a a 20% of our net sales as an Rx generic pharmaceutical business, which we are the leader in generic extended topical products, which eventually will be divesting. But as I've said in the past, now is not the right time. Going to the next slide. We adopted a new vision at Consumer Focus a year ago. And for anybody who knows me, I'm I'm all about leading with with vision in every company I've run. We have a vision that every single person in the company can see themselves somewhere in it to make sure we're all heading in the same direction. And the the vision we put in place a year ago is to make lives better by bringing quality, affordable self care products that consumers trust everywhere they are sold. A year ago, that said health care, and it didn't have the rest of it just quality affordable health care, which was all about treating sickness. The difference between health care and self care is we want the entire spectrum of not just treating sickness, but preventing it and and improving wellness. So, and the design of that opened up a myriad of categories and growth opportunities for the company as opposed to being strictly treating disease. The next slide talks about the progress we made, and we slated this as a three year transformation journey. We'll have to see how COVID nineteen, if it slows us down a little bit, but so far, so good. But we had a number of steps of reconfiguring We've done a number of acquisitions and divestitures already, achieving our base plans and and, which meant getting building market share and improving customer service levels, etcetera, ramping up our our internal new product innovation portfolio, which we put a half a billion dollars of new products in our pipeline, strengthening our organization. We've changed 40% of the leadership team externally as well as promotions internally and building out some of our technology. We need to pay for it all, so we launched a program called Project Momentum, which identified a $100,000,000 cost savings initiative all on track As a company, then we have we turn a lot of cash. We we tend to convert more than a 100 per percent of our profits into cash, and we're sitting with about a half a billion dollars on our balance sheet right now. We and we have committed about a $150,000,000 to capacity investments. All of that now with us in the last six quarters, since my team, and the existing team got together, we've had six consecutive quarters of meeting or beating expectations, which was a change prior than the prior four or five years. And we've also changed up a lot of our ownership base. 30 of Perrigo is now owned by consumer investors as we've restored revenue growth. Going on to the next slide. Year one of the transformation was indeed all about returning the company to revenue growth, and I think the the graph speaks for itself. We we began the process of launching in q one nineteen. We announced it at our investor conference in May. That's the difference between the orange line and the blue line. Blue line is organic growth. So we we did a a good size acquisition of Ranir, July, the leading private label oral health care oral care brand in the world from a private label standpoint. And so that gave us some beautiful nonorganic revenue growth, but you can see what's happened to the organic growth line too. So we'll talk in a second about the impact of COVID, but this is not the revenue growth of Perrigo is not something that just started in the last six weeks. It it started over a year ago. Going to the next slide. Having said that, the 2020 was remarkably strong, and we all know why. Perrigo consolidated net sales grew 18% with our worldwide consumer business, up 21% versus a year ago. Going to the next slide. But as I said, organic growth was strong before the COVID nineteen demand and then off the charts starting March. So all I did here is just break out so you can see how we were trending in January, February. And you can see our our biz our revenues were up 8% for or, cumulatively January and February, and that's against what we had established as a a 3% organic revenue target. So just to be clear, that doesn't include any of the bolt on acquisitions. That's pure organic growth in our core business in The USA, which everybody who follows us and knows us is our our our profitability engine, was up 8%. And then in March, with COVID, it was up 28%. You know, the the the amazing thing, and you you're seeing the economy starting to to start again and manufacturing come up. We we've been able to keep 38 facilities running all shifts all through the crisis as these were essential products that society needed, and it's due to the amazing efforts and heroic efforts of our employees when they were doing it during the worst and scariest times. Not that we're through this yet. There's a lot more to go, but I'm proud of what they were able to accomplish. And from us, you need to know that we focus through this crisis on employee safety, business continuity, appreciating our frontline bonuses, doubling their bonuses in the first quarter, making sure all kinds of safety precautions were in place, and also supporting the communities where we work. We provided and prioritized the products that society needed most. So you may if you were out looking for a a Tylenol or or we make the Tylenol equivalent with acetaminophen, we're over half The US supply of acetaminophen and make tons of other essential products that you needed in your household, and you have it thanks to, our amazing employees. The other thing that, was remarkable during the course of it, it was kind of three phases that we saw. There was an initial sort of pantry load of of consumers, and I'm on the next slide now that says global investment over the past two years in ecommerce are paying off. There was the first phase of it where people went in, mass march all that, loaded their houses. Then we saw a big period of time when they sort of consolidated. There were some channel shifting within brick and mortar to to what we saw to sort of one stop shopping. And then as the third phase of it, a real dramatic ramp up in ecommerce. And when I talk ecommerce, I'm not just talking Amazon. I'm talking businesses that like Walmart and Target that were building their their ecommerce all of a sudden went off off the charts, and and that's continued to go that direction. So in q one, we saw a significant bump. We were up 72% in our ecommerce business worldwide. And as I said on our earnings call, that's continued on. So that was year one. Year one was revenue. We got revenues going. Now we're in year two and year three because we don't just wanna deliver that 3% revenue target. We want three five seven as our mantra, three percent revenue, 5% OI growth, and 7% EPS growth. In order to do that, we are focused on these four priorities, stabilizing and growing margins. And the the big issue there is we've had to make some significant investments from my perspective to make this company able to sustain its performance over the long term, which included things like finishing that technology upgrade or centralizing fan finance upgrading, rollout, giving ourselves a higher level of business intelligence and data analytic capabilities that should have been done years ago, expanding capacity and strengthening our supply chain. Again, we run twenty four hours a day, seven days a week, and and don't have huge surge capacity, and that's been tested here reasonably. Meaning, we weren't able to to supply nearly all of the the orders that we've been getting over the past couple months. And then finally, if you follow the Perrigo story, we need to reduce uncertainty around the the Irish tax judicial or the Irish tax, which is starting with a judicial review that got delayed. So let me go to now to the summary, which is when you look at everything that's going on in in the world, we think Perrigo is very well positioned. I didn't know this was gonna come about a year and a half ago when we laid down the vision. But, clearly, in a new normal world, a company that is focused on self care, less reliance on hospitals and doctors, and staying well is gonna be more critical than ever before. A company that sells value products as a primary source of its revenues and profit is clearly and historically performs well during recessionary period and a company that has invested dramatically in ecommerce over the past two years in a world that's has shifting channels towards ecommerce, Perrigo's got all three, and we we think that makes us darn attractive. We'll continue to make investments in bolt on acquisitions and ecommerce and innovation as they're paying off, and you've you've heard the rest of it. And we generate a lot of cash. We're shareholder friendly, and we're working as hard as we can to to deal with the tax uncertainty. And with that, Jason, I tried to be quick. Let's go to q and a. Back to you. Awesome. Cool. That was a good summary. As a reminder to everyone on the audience, feel free to submit some questions through the webcast. I'm I'm happy to, as soon as they're appropriate, vocalize them to management. We had a couple in there now. But before I jump into those, I I just wanna take a quick step back on on some of the stuff you just presented, Maria. I I get I hear you loud and clear on the shift towards self care and and and why it's resonant. Can you drill a little bit more in terms of portfolio strategy? I think you've highlighted five key global growth platforms. Can you quickly bullet point what they are and why they are the five in focus? Yeah. The the the process we went the process we went through was to to to identify the areas within our portfolio and the added or or areas of growth that would that you could actually quantitatively say would make gave us significant opportunity. You've gotta remember that when I joined the company, we were flat or slightly declining or up just about 1%, and nobody believed Perrigo would could grow again. So then we got the core business growing, and we focused on the areas. But the the areas are the, you know, the ones you would expect, our core OTC business, our nutrition business, our oral care business, science based, Naturals are the the other business, and just remembering the the fifth one as we're just starting on here now. Give me a second, and I'll I'll get that back to you. But there each one of those rep and nicotine replacement is the the fifth one. Each one of those, as an example, if you look at nicotine replacement, when I was on the cigarette side, I used to laugh at the nicotine replacement business because it was so tiny and wasn't growing. We've gotten it growing again. But when you look at the nicotine replacements business in the world, it's like a a half a share point. Yet, you know, in a multitrillion dollar category that is is the smallest increments could double or triple that business. And the problem as an example is you're not delivering the product in forms. Smokers who wanna stop smoking, which almost all of them wanna do it and attempt to do, we don't have those solutions. So that that's a good example. And we didn't have oral care as when we went to self care. That allowed us to expand into that category, and and we bought that company. Science based naturals, Most of our branded portfolio or a good portion of our branded portfolio in Europe is those products. So instead of a Lipitor, we have a a natural based way of of reducing cholesterol with a product called Ardurin, and it's and bringing some of those products to The US and synergizing these companies more. We have weight loss products, an entire line of of science based natural products with clinical studies, another growth opportunity. So, I mean, you can just go through each one of them. Oral care, we're only a, you know, a 14% penetration of of store brand versus national brand, but our average in OTC is 30%. So each one of those, we've diagnosed which is the strategy, what is the opportunity, and it's literally billions of dollars of opportunities. And we've gone after the faster ones, but I'll tell you what. It's there is no lack of opportunity for growth within this company. And I think one of the terms you've been going to throw out in effort to get that growth in terms of how you manage that portfolio has been consumer two point o. Can you elaborate on what that means and and how it's coming to fruition in terms of how your your tactics are changing to go after that growth? Yeah. Well, the consumer two point o really is the intersection between national brands and and store brands. And I believe that most of the major consumer packaged goods companies are also gonna approach this. Right? So people ask me, Marie, are you gonna go head to head with, you know, the Procter and Gamble's in the world and all that with national brands? And the answer is no. Because they're, you know, they're better at what they do, and we can't beat them at that game, and they can't beat us at our game. But what's this consumer two point o space is is a realization that our customers' store brands have gotten so big, and they've gotten good at marketing their brands that they're now evolving themselves. Right? So it was sort of white label in the beginning, and then it was pride considered private label. And then and then the customer started calling it store brand, and now they call it own brand. But when you look at a brand like Equate, it's the largest OTC brand by, like, threefold or fourfold versus any national brand. They're they're so big. They're now looking these major customers are now looking at branded products that they could have exclusively, and exclusively is the keyword, at their store only to be bought at Target. Target is probably a leader in this area, only to be bought at Walmart, only to be bought at at other major customers. So now then the debate comes, who is best suited to go after that volume? Is it the national brand, or is it a brand like or is it a company like Perrigo who customizes all the time? So, again, we have to raise our skill in in branded products, and that's why I just put Rich Sarota in after Jeff retired as as head of our consumer America's business, a guy with a branded career and store brand. And then and then, you know, have all the the the capabilities with it. But that's versus those big national brand companies having to be able to customize at the level that we do, which they're just not built for. So we will and are developing custom brands, and we will do that with a a an obsession for meeting our customer needs and just as as Perrigo can do. Let's dwell on that point for a minute with the custom brands because I I think there's crap we could probably carry an entire hour just on that topic alone. But many of us in CPG world are familiar with companies who participate on on private brands. Some of them have done so with good success, others have not. Where we've seen companies get into trouble, it's been where there's been a plethora of other suppliers in the market, so an abundance of other retail other manufacturers where retailers turn against and where those manufacturers are focused on trying to drive margins. Often, that's been where they've gotten tripped up. There are some exceptions. Like, I'll I'll I'll highlight Edgewell, which has sort of an IP stack, which gives them gives them a bit more of a mow or McCormick with a complexity and scale supply chain that gives them a bit more moat. Is there a moat in your industry, or is there a pathway that allows you to have healthy or maybe even growing margins on that business while still participating on the revenue growth side of it? On the consumer two point o or in in private label and store brand in general? I mean, there's huge moats around our business. Latter. Store private label store brand in general. Yeah. I mean, we are listen. We're we're probably 17% operating income margin business when we're operating correctly, and I'm not investing, like, crazy. But there's huge moats around the business in terms of supply supply side, the the, you know, the types of products we make, the breadth of product. We make 14,000 products. We have a huge advantage that I think is becoming a new moat that in The US, we have 24 manufacturing facilities in The US when congress is screaming for products to be made in The US. The, you know, the only area we get on pressure on margins is price competition when foreign Indian companies, etcetera, try to come in and and cherry pick the you know, a particular item or two and and compete purely on price. I I hope this period of time has let us show what the Perrigo advantage is because we've been able to keep running. We've been able to we've got the API supply. We have the the wherewithal and the manufacturing scale like no other to keep our products going and, you know, the regulatory capacity. But, yeah, we have regulatory capacity. We have, you know, our ability to file first. We have manufacturing scale. We, you know, I we sell more ibuprofen than ibuprofen. We sell more Tylenol type acetaminophen than than So the big issue is with our our customers, and we need and why I'm so passionate right now about getting our service levels at a higher level than they've been over the last year, couple years, actually, and differentiating. So we want to combat price with National Brand Better, we call it. We used to be a national brand equivalent company. Now we wanna be National Brand Better, part of the consumer focus, differentiated, a provider of consumer two point o, customer obsession, perfect customer service. When all those things happen, the the moats are are giant. But, yeah, we're we're we're a strong margin business. We expect those margins to grow. We have good cost savings initiatives, but it's we're you know, right now, keep the revenues going, keep the margins going, get the cost out with Project Momentum. And I think that, you know, we're certainly in the right place at the right time with our business model. Okay. I wanna I wanna go to the audience for one question and kinda merge it with something else you said earlier. So the question coming from the audience harkens back to what you initially had said about margin expectations for 2020, which earlier last year, think you were expecting continued growth. But in 4Q, you ratcheted that back, and you touched on it in the slides earlier in terms of the investment that you're making to ensure that the transformation has its durability and success. Is that the primary reason for the slightly more protracted trend bend in margins? Is it the investment? And if so, where do you see yourself on that investment spectrum? Do you think that after the investment this year, you're gonna be at sort of a steady a solid steady state run rate, or would you expect you're gonna have to layer on investment upon investment as we go throughout 2021 as well? Well, two parts of the question. Don't agree that we're far behind where we expected to be in margin. So, I mean, the you have you've got a lot of mixed things at at play. We have put pressure on to grow and focus. Pressure is probably not the word we're at. Focus to to grow our US store brand business. That's at a lower gross margin than international. Our store brand business in The UK is growing like a a weed. It's growing very rapidly. It's a lower margin business, and we bought a huge business for us in Ranir that is a store brand business. So you added all of that in at lower gross margin. So each one of those sort of have a lower gross margin. But they all have the same or equal operating margin, so we have stabilized operating margins after I made that initial round of investment. So it's kinda right on track. There were some investments. There was a little more technology investments and capacity investments that was my probably my biggest surprise joining the company that to get it where it needs to do to to grow and sustain, but they're not crazy. It was about $50,000,000, about 30,000,000 last year, and about $50,000,000 in total this year. I expect, though, as we go forward, that once we get in, you know, SAP, we're not repeating that investment. Centralizing finance that are we call our CFIN project, we're not repeating that investment. Our business intelligence and the investment to get that in, we're not repeating the investment. So the only level of investments that should sustain are the ones on, long term innovation. Now the good news is as we get into next year, we start launching some of those bigger products. So the revenues go with it. So it shouldn't ever have to go incremental to this year. I mean, I shouldn't ever say never, but in general, the the amount of money that we have there should be sufficient that going forward, you just get the leverage through the p and l. And that's what you that combined with our our cost savings initiatives. But if you look at the first quarter when you had a surge in volume, you really saw the leverage in the p and l and the increase in operating income margins. The bottom line, we're gonna grow. We we will stabilize and grow margins, but we we are most focused on I'm not saying we're not focused on gross margin. We are, especially once we lap for an ear. But in the end of the day, it's operating income margins. It's 3% revenue, 5% operating income, 7% EPS against whatever's a normal year because this is kind of an interesting one in the middle here. Yeah. Let's let's jump to that what's so interesting, this sort of anomaly. But before I do, I just wanna close the momentum you had before we hit into COVID nineteen because 8% organic sales growth in February is, is exceptional. What were the drivers of that strength? Well and it wasn't so let's call it October to February because the three months, the fourth quarter, if you recall, were similar levels. I think the organic growth might have even been 11% in the fourth quarter, so it was a sustained period. There were just a number of things that all came together, and I can just start flipping through them. Strategically, it was the investment in ecommerce. Our ecommerce business started accelerating and becoming a a bigger piece of the business. Amazon became a bigger piece of of the the business. So that was, one piece. Market share and new products hand in hand. I I don't like giving, the new product number the way Perrigo used to because it's all about incrementality and new products. But we had segments and new products that came in in areas that we were weak, and we were able to gain significant market share during the fourth quarter, which is then become sustainable in the business and filling those white space opportunity. In Europe, we launched a a, you know, a myriad of new products and freshened up and synergized across the line. In nicotine, you had a surge. One, we had some national brand better products, better flavors. We won a big big distribution in a product that we had lost a year ago on a big customer that the business fell off once they switched away from us because we have a product that's preferred two to one. They switched back. That got going. Then you had the entire issue that was around vaping and death and increasing quitting, which is actually accelerated, through the the COVID crisis. It's not a good time to be smoking. And all of that has benefited the nicotine business. In infant formula, we had launched a a major, product at a major new customer, which is helping to to to supplement that growth. And then on top of that, you had a strong cough, cold season. So it was a a number of factors. The cough, cold season, you know, we'll have to go up against these numbers and COVID numbers next year. But as a broad group, all of the the increases in structure on ecommerce and market share and white space and then add the benefit of, value products in a recession, I I feel real real good about it. And it's not just a couple months. It's, you know, six months of strong organic growth, but I'm I'm still promising the 3%, Jason. 33% over longer duration or 3% this year? Three percent. We are trying to benchmark against, our consumer packaged goods peers if we're gonna justify a multiple like, those companies, which means it has to be long term and sustainable. I I guess if the whole CPG industry changed their numbers, we might modify, but we benchmark three five seven as sort of the the higher performing CPG peers, and that's our long term sustainable target. So, you know, we did better than that last year, but that was benefited from bolt ons, and we'll continue to do bolt ons. But it's you know, three five seven is is the goal each year. Yeah. Yeah. Well, that is that is generally a good reflection of sort of the median of CPG targets. Unfortunately, the reality is less than half of them achieved it over the last decade. So for you to actually get there, even though it may be the median of where the targets are, just getting there puts you well above average. But coming back to the near term, I asked the question of 3% this year, kind of a bit, a bit to just back into where we are right now. I mean, you've come out of the gate swinging on strong COVID nineteen, demand. I think last time you reported earnings, it was a bit unclear how much this was pantry load, how much of this was elevated consumption. We're a few weeks further in, a few weeks of a bit more data. Any other indications? How are you seeing demand trend now that we we we we leg a little bit further into this? Yeah. I mean, I I I gave a little more transparency than I normally do on the earnings call on looking forward based on my interpretation of SEC guidance. But, you know, the first quarter, you certainly had that surge during March. I said on the call that and remember, I did the call in the last couple days of April, so I had the benefit of knowing our our our numbers. April was a, yeah, you know, a a continuation of very strong sales. Now, remember, I'm prioritizing products that society needs, not necessarily prioritizing, well, I'm not prioritizing profitability. I wasn't gonna ask my my folks, to come and what they perceived as risking their lives to come to work to make minoxidil. We were making acetaminophen and cough medicines and albuterol inhalers and, you know, the the and electrolytes and oral electrolyte solutions, etcetera, that that people needed most. But in general, demand for us remains strong, especially ecommerce. We're still behind in manufacturing. The the IRI numbers that you guys see and are published show that categories have have come back to normal, but on a cumulative basis, they're still up there. There's a couple SKUs that are still in high demand. Acetametaphene is still in extremely high demand. Vimetidine now, you know, based on some stories on CNN, etcetera. It But in We thought help the plan. Yeah. We What about running? Hey, Mark. Can you hear me? I think your line started to fade a bit there. And I gotta check with some other folks. Look looks like it wasn't just mine, which is okay. You're back. You're back. I gotcha. Yeah. Are you back? So can you hear me? I can hear you now. Yeah. Okay. Well, I'm not sure where where I cut off or not. So does he ask, like, next question or or Well, think you you you I I think we got the message. The question is what have you seen since then? And your answer was, hey. Demand's still strong, and we're still having a hard time keeping up with that demand, in part because we prioritized, real essential goods. Is that a fair summation if I distill it down into a into a couple cent a couple seconds? Yeah. And and that's on our our major products, and it's you know, and I just said, you know, we do have some products that are that are softer, and so we'll play through all the mix. But in general, I think we're in much better shape than, you know, a a good deal of companies in in America right now, and, you know, we're ahead of our plan by a pretty good margin. And despite being ahead of your plan, I think you you chose not to raise guidance. I appreciate it's early in the year. But what are some of the risk factors you're watching that kinda keeps you from from from pushing guidance a little bit higher right now? Well, I I think the the big unknown for everybody, and we have gotten a lot more experience at this, Jason, but the big unknown for everybody is as the country reopens, our challenge multiplies. In the first two months, I had to keep people I had to you know, people went. They they sheltered at home. If they were following the rules, and our team, I believe, all followed the rules, then they would come to the plant where we could do all the proper social distancing and temperature checks they kept in the plant, restrictions and disinfecting and sanitizing, and then they went home again. And then they came back to the plant. And even with that, we had a number of not huge numbers, but we had a number of cases. And because we were doing all the proper steps, we could isolate and keep everything running. Now you got a whole new complexity when the people aren't just going to the plant and sheltering a place that they're starting to go to restaurants and to the beach and to retail stores. And if this thing spikes again, that that's the part that makes me nervous. Now, again, each day that goes by, I'm less nervous because our team is very experienced, and our systems are are very strong. But, you know, I I need to keep our team needs to keep these major facilities running, and and and that's the part that keeps me up at night. So an API supply and everything else. So knock on wood. Everything's been good so far, but, you know, it's all about business right now. Awesome. We are we are almost out of time. We're, like, literally into the last sixty seconds now. So just wanna close with two sort of rapid questions for you. Flash forward twelve months from now, you know, in the categories you compete in, our store brands do share store brands share a lot higher than it is today. And secondly, as we come out of COVID nineteen, nobody has a crystal ball, but would love your best guess at how you think consumer behavior has changed in the wake of all this. Well, they, you know, they always say in for consumers, it takes thirty days to to form a a habit. So I think big habits are are being formed on ecommerce. I I just I I and I think big habits are being formed with teleductors, self care. So, you know, value, we'll see. The through a recessionary period that has its its cycles, that that's not permanent. But I think the trend in acceleration, I think we advanced years on on ecommerce, and I think we advanced years on our our plans on self care and wellness, which was already the number one Google search term. So, you know, bottom line, those are the big ones and more online shopping, etcetera. That's just that's just here to stay. I think people over the next year or so will get back to restaurants and things, but they'll be they'll be careful. Our business and we'll operate different as a business. There'll be more work from home. There'll be less flying. So, you know, our business model won't change a lot, but it'll it'll evolve. Fortunately, we it didn't force a strategy change, and and I think Perrigo's a good investment. And if you're listening, buy Perrigo stuff. And and and private label share higher in in twelve months, lower in twelve months? Yeah. I mean, we it depends on the the category. In some areas, our private label share in nicotine is, like, over 60, and that's when revenues. And in other places, like, oral care is 14. I think, you know, it's all about gaining share for us and and penetration. So, yes, it'll I believe it'll continue to grow because that is the focus of all of our our our efforts. And, you know, in our biggest core business, we're about 30 share, which is which is high. So we, you know, we I think we demonstrate when we focus on it, we we can grow market share. Good stuff. This has been great. I really appreciate your time. We could we could probably keep this conversation going for another two hours because it's it's really has the potential to be that engaging. But alas, we have to cut it off now. Thank you so much for being gracious with your time and participating, and I hope the rest of your day goes great. Thank you, Jason. Everyone, be safe. Be vigilant. It's not over yet. Bye.