Ecolab (ECL)

Mike Monahan Senior Vice President, External Relations
Christophe Beck Chief Executive Officer
Dan Schmechel Chief Financial Officer
Tim Mulrooney William Blair
Manav Patnaik Barclays
David Begleiter Deutsche Bank
Ryan Connors Boenning and Scattergood
Gary Bisbee Bank of America Securities
John McNulty BMO Capital Markets
John Roberts UBS
Kevin McVeigh Credit Suisse
Vincent Andrews Morgan Stanley
Scott Schneeberger Oppenheimer
Rosemarie Morbelli Gabelli & Company
Eric Petrie Citi
Laurence Alexander Jefferies
Shlomo Rosenbaum Stifel
Call transcript
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Greetings, and welcome to the Ecolab Second Quarter 2021 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce to you your host, Mr. President, Vice Senior Monahan, External Relations. Mike sir. you, Thank

You may begin.

Mike Monahan

this discussion to actual you. website ecolab.com/investor. statements teleconference cause are Conference estimates those Quarter release to everyone, and and XX-K that CFO. our the differ these associated These Christophe our moment described referencing Please include posted along state in our welcome that are Hello, and Ecolab's actual the in materials, available A our take from materials Call. and Schmechel, quarter's of Ecolab's the are in and differ a most are Second under supplemental which our recent could materially to earnings at cautionary Factors materials. projected. CEO; forward-looking results, with Thank results Beck, Dan of the the Form performance. With results, results slides section future me Risk statements, read and today could Factors Ecolab's on

earnings When challenges XXXX. recovery leveraging U.S. strong manage expect We've customers. implemented our the than reflected business We results product reopenings deliver in current markets, global the and product and with outside strong brief the wins, costs quarter service also in once and second uneven economic by increase refer you growth, and overview, actions and and we strong to driven to product aggressive pace delivered more with new successfully wins, to supplemental sales diluted release. slower earnings pricing combined very pricing strong Starting the over which of recovering per again year-on-year a value offset sales information growth deliver inflation significant to increased accelerating share earnings offset costs we business to the the new

opportunities, leader improved positions, focus customer our the a remain clean water as growth safety, along strong our believe XX in more with ambitions. base and, operating long-term in on months. drivers lowering Beck opportunity, last that healthy comments. superior by our remaining our ESG ability important through meet environments our this market growing We providing huge become water, now position, yield global and will other with continue long-term And has food market even robust energy position driven sustainable our to Christophe believe We and performance results and his here's help that, Our their leading business long-term these strong for to costs while them with our investors. their Ecolab

Christophe Beck

us to all Thank you today. and joining for of Mike, so thanks you much,

more sales our XXXX up reopening expected very QX levels expected, was generated how we Europe and second signs up while U.S. from X% rose innovative And and company. Downstream have indeed solutions As of mid-single underlying outperforming compared the and new number on by segments were to which fast. to XX% with The focus light XX% of rest our sales sales was they and promising driven the sales pandemic XX%, XX% segments X% also growth in we've growth strong in of operational and are solutions was we offering. almost a remained toward Adjusted and us Water quarter double-digit strong driven efficiency pandemic. accelerated during challenged strong XX% Healthcare XX% elimination, markets to Paper gained QX very progressively. last pricing. a follow high the driven the Industrial by strong pandemic than consistent growth, demand sales restaurants reopen. beverage accelerated in by world quarter ended as new share down the and quarter XX%, respectively. growth per the the of with from and unusual earnings up grew U.S. new demands centers, up year. quarter China same during Sciences the up only data XX% opening improving. timer industry. of it were like a the XX% packaging, driven sustainability as very potential pest itself the as the kept a and in in for business from strong number buy doubled serve strong by with QX, and industries quarter and institutional continued of largely in finally XXXX, benefiting strengths Acquisition driven Life the grew other of ended the which, further and back bit had growing and momentum in by repositions business as Reported market during strong for are versus Both quarter. way, exceptional in they to well the food in in over strong as adjusted respectively up much by XXXX, business. the the board one by clearly driven the of

overall margin points. basis the progress improving things very On front margins well too which XXX

we overall the your the institutional that the much technology variant, are our More progress is and Europe inflation. X% in amplitude quarter. confident our the pricing second in With and never has only than world Delta broadly, that for U.S. our rest made stronger. question, recovery, raise. the deliver of How of the benefited and better ability outlook XXXX, in well backdrop continued from longer-term year, the digital during full of the Beyond been timing adjusted the as remain excluding rise well of the to the accelerated Texas the better opening pandemic of investment accelerated this in as to earnings considering as speed as

and pipelines innovation business at new levels. are Our record

continue productivity experience. our increase like engines care, are customer growth. sciences, capabilities to positioned growth value, tech incremental high data digital centers field well all new health drive and Our life very customer to And and

unique something the next expect to positive slightly feel in now in the the we we've progressively we've strengthen successfully prevention for strengthening right different position sales. and with strong this quarter words, leader. costs business strengthened on as double-digit no third growth improvement of that, And will biggest All as a new This if capabilities will hit our significant we've like accomplished global like global the will be QX 'XX, this, portfolio, between while to one to pacing the the now strong in P&L. innovative of fronts while which leverage to in pricing half are people come. partner In attractive times Our becoming to when infection embarked on center further to a for business and more to carbon protect highly pricing even as impact to helping one fourth digital look value margins expect momentum business our contribute the combined for environment past terrific main to as the that them well in wins, third with our will for about is position enhancing quarters our natural do the there's continued earnings drive in so and ability pricing and many digital customers. 'XX your seen be trends again. round sequential momentum, new once great input now Therefore, two customers. cover sustainability rapid strong price accomplish and increases, and reach rise food planet for QX X%. the pricing with both health, we're We initially the anticipated. our customers front other Overall, good positioned forward finally, be help actions ensure long-term deliver to better of seen health, will than years and and second expect questions. I and us safety; focus to the we -- water and And accelerated emissions With every than Ecolab

Mike Monahan

Christophe. That our formal remarks. Thanks, concludes

Investor in As hold our plan please September Q&A, on Operator, begin we Paul. Tuesday, the we to a final note Day period. question-and-answer before XXXX begin St. XX


you. Thank

proceed session. a the Your of [Operator first be comes conducting Please now question Mulrooney your will Tim We Blair. with Instructions] line with William question-and-answer from question.

Tim Mulrooney

question. for my Christophe. Good taking Thank afternoon, you

So, okay.

doesn't amount focus raw the year you said of costs. and for of ahead margin two. So up typical to But material actions you. in I input I dollar remain the year cost press think raw one increase pressure, on want your which make But you surprise face pricing your the took in materials the then in probably release, in price, and recent price formula to is to

you a this So clarify I could was bit. little hoping language

margin. the is already If I minus to you X, you've like how positive, X, and would incorrectly? which working rebuild is Or currently price cost sounds statement dynamic already into Phase reading past moved it? essentially is it characterize Phase on you're your that that Am

Christophe Beck

at Tim, half with. first so pricing to to direction, as so usually is begin the when general input at well The where compared right. XXXX, I I was We're the cost. lot, like good a look that Actually, of

the indices, as quarter changed second for that the well, for And seen, that the is second the so has what half. higher seen that Now all we've as much during so you've change those team. the well changed time third the to done whole our new quite XX engaged we've as had we indicated months. plants plans over has the We've It's pricing been it last with significantly. have

to progress is well We have customers indicated as that good. and

point, to a to changed bit, time which impact in agree and as has progressively second us we with feel that So, obviously, now well. to be for in to new place of that get takes will we ahead. dollar the forced both terms going it margin. now customers mostly that the change plans little I our it's pricing. obviously good right And to were QX, good Market to And half, improving some because a

a than place second we QX improvement overall, So planned expected better but lower improvement so the in a for what basically have at as QX same expected, we what the in initially. had and half, will we than had see we what

Tim Mulrooney

gave announcement that seeing a you And really you're I price is and about very But Okay, pressures that industrial implementing clear. Are across a health this well. in care as release, conversation cost was institutional well? the you Or think also in specifically industrial to segments. divisions press publicly guys as presumably, the those primarily? related increases

Christophe Beck

we value customers an have really every a that obviously, customers cost, of is and making and our Tim, implementing the our one driven by event, driven of something price every the elements, sure the coached really teams not year, is increases as create for really the years, directly our input well, happening single the We're discussion. which it's but every by that's we not for many it's really in past year. business practice this

good really at or right, structure, cost the So biggest this takes their you're is it. of they're industrial Because new, nothing heaviest part. and

is moving majority increase the the up other well at as of the So, businesses the price are industrial, in time. but same


Your of with comes Barclays. proceed question. from Patnaik line the Manav next question with Please your

Manav Patnaik

to to. broad happen is maybe you hoping of you you giving a suppose. I beyond do could had can see what question, pieces the just I you of variants, I through just Delta visibility your which in before the help detailed like moving guidance need start was terms used some just us

Christophe Beck

Hi, Manav. Yes. Good question.

or the as Delta called out So variant it's all related there. to it's D

XX As guidance at XX with unfortunately, the always so of our you the you years if know, exception delivered we've look years, past X/XX, within ago.

just certainty And we of discussed. on can is assurance control, us, something well. of Delta focus questions as is to everything is variant the price hard predict level really including and we for The very inflation, and high. we as unusual, that So

out mark the to how clearer rates governments guidance. The will and only that's become providing vaccination well, reacting that bring countries as So well us we there, there. with as are closer out us to going have question are things well

same that. that well it. been us will as and for back We something the to for We time. has get good investors It's like at

D up we'll get say But soon our will guidance is variant so clear. remains time when firm materially, far, not right. if more becomes as back as true, I'd it directional do change we things So and

Manav Patnaik

of ahead Got maybe of I it. is efficiency in learned terms if front, past just obviously the margin the and think, so. mean a you've months cost or I lot, XX And on pricing from

be we think curious just should if as color there business, that would the and helpful. So the more getting better Or margins any or incrementals incremental the of same? of in the

Christophe Beck

used changed so the it obviously, had input it's Overall, quite has We as dramatically second But initially in digit it well. thought cost changed And for changed But that. way numbers, a did quite in has to so add initial that XX%, same. so the such. let's the margins full versus the double the now, get full need going mind we've so to the We double input pricing of year a a be and have as for the pricing back keep to cost to change. since margin it's so at where for increase mid-single as pricing quite the of costs half, order for bit. our we year to the input well That we they easy digit. be, closer gross as math was kind as would look plan. we to that well The the well,

cost. situation terms So, in input overall, pricing good of versus

customers. is improvement need between what pacing QX because time QX and order earlier, the than with expected. be we we some half to get But similar going as just deliver Second in different agreement will to had mentioned


Please of your from the question proceed Bank. next Your with Deutsche David Begleiter with question. comes line

David Begleiter

price Thank costs quarter? QX, in again you. on loss, again expect do exceed just input this you in to versus Christophe, pricing

Christophe Beck

will our in that Yes, before, takes more so just but get is the things that cost. not are going have, little really we the it's percent to to of mentioned input there, well. used a far, back to price ahead as But time. be And the bit to margins and objective get so

David Begleiter

versus your You a mentioned, initial catch-up is be lower QX with to being How below your much sequential again, QX below in basis? QX. on earnings going expectations prior that expectations

Christophe Beck

tell months. our with it's because question that on to and customers, thoughtfully of hard do depends is This with it one agreements or customers. very week two We a

company. commodity-driven a we're not So

all relationships As are had the you driven we with value for customers whom for our decades. by we we've create know,

So we good well, still for did good very well. was to they way was that a order we them, the how that that from believe for we it do in are as careful sure really it in us now, right make that it year

why directionally it's it's all it's going it's saying be a QX. to a timing-dependent going to pressured for for bit going better I'm it's why be I'm So in QX. be QX. and little to That's pressured and saying QX, That's in in bit little directionally QX,


comes Boenning question with of line the and next Your Connors from Scattergood. Ryan

Ryan Connors

results nicely is taking institutional as outperform some My talk just of kind that in? quantitative actually noted Can that around Thanks -- about making give what the my that is were was metrics snapback you up just you metrics a end around not or you at you institutional but that have least you some you on how for question. us color sustainable outpaced assertion? continue markets year-over-year actually And there. market, in forward, going first the only recovers? to think then as specific you're Or do can saw

Christophe Beck

us to back so the different. the X% few units it. first in U.S., look And a so to closed which happened or way we completely restaurant it's there you as like as end dining here, better since China, the well the especially at where was be room, which XX% where is XX% sales, size market. or are for to the in well off dine-in it traffic, means second in at as XX% is so I out in quarter. so of where winning recovery second to obviously, they down look the the have the but where a down you the Maybe the give just numbers used

it where being the so many And to traffic knowing in the also, second XX% as solutions levels they -- the that were or back serve us better the is and before, is how with XXXX, are market as not used So we matter we many we hotels be. it's perspective of high well. And that measure that we we for buy much where restaurants so as than were is. to how

further So up traffic well, is up when as as is going growth well. coming our back to pick

So sustained I a see development. as that

Ryan Connors

I of that Okay. apex which I And the know but side, I'm like report, drag, was the there last a we year the then the a of to on was mean, bit flip medicine was pandemic, Healthcare lot Healthcare but in guess around recovery? virtual driving into what's the surprised some that for dynamics move you the more outlook sort that? as that? little that's give see Is we Can a to that that. us And

Christophe Beck

a comparison pandemic. year No, by versus results just the it's exceptional last driven

important or well growth. comparing pharma in What's of me in growth sector. really well, as Life growth in -- by Science in we're look XX% for to solutions so care XXXX some well driven So QX the in XX% and as is prevention XX% health demand pharma underlying and so as infection the at as well

see -- mid-single the used you XXXX in So be. so one-timers, where when strip better so unusual to digit, is demand Healthcare, we out of and we which than

this very X%-ish. double-digit Science And moved going past so is X%, Life well territory, has as kind underlying X% growth So which of well closer in so the good, sustained the to in is the as forward.

the So out double-digit respectively. Healthcare for to basically, and strip Science, growth and noise, mid-single you when you Life get this


from of Gary Your Please Bank America question. comes question with the with of Securities. line your Bisbee next proceed

Gary Bisbee

the margin institutional, else. But there's ongoing 'XX. recover input the in reduction margins, on had from and other segments to the differently. short little still efforts, had question quite bit know costs a quarter ask ahead continue revenue. parts, the quarter second the of to I margins with cost will presumably and moving a First outside levels down Obviously, all a term you've of obviously, I which the But And institutional of revenue lot three of along the and pre-pandemic volumes. second with everything with wanted see

material way further some are maybe than a three the of margin? back quarter go-forward normal a above number to some segments? forward each Is get XXXX you. risk and of that in to QX? maybe there little give-back is margin base more use bit to reasonable a QX in are about other this of the these the raw other Or of to get still For for hit margin you moving the that think Thank businesses,

Christophe Beck

pricing, All indication heading. trends them, overall of Yes, you places headline industrial margin three segments the where the unpack saw well it's before, have are most as growing. the But different always the time. here. it nothing bit is if really are for at but as share you, just input they're biggest it's just and in the same good is cost, good impacted in that a are at also as so the by first. I case, But so a mentioned we're unusual the They we in and where

in comparing we So different where and elements numbers that institutional are going Science in to in get so if to mentioned are it's as as it unusual on as so, there its improved well close we Healthcare terms price gross so its well very fairly And expect close but Healthcare, cost to 'XX. to as path mentioned, expect the last to QX industrial to Life in development of recover be where so you to margin, and Life And out, we're we different, our as And well year. so of you and strip growth to in have margins year. stay nicely quite year were last XXXX. such. ultimately, in keep margins as record very used overall is before, -- is ultimately Science,

in overstated special bit the the so business such margin in we well improvement the as XXXX where a we as QX, it's compare two because in with it was so events. had maybe So QX,

in foregone the well one that And for the second, we first payments these debt recorded we lease pandemic. during beginning machines. was the the obvious of bad for as so reasons QX The

that was So lower. you something compare

a the assuming and such, evolving good it's obviously keep QX. pricing QX that happen planned, But situation which in I and margins roles so as margin little overall, in bit for for change Company, our expected. as ultimately, should assumption is do and going As to

Gary Bisbee

Great. quick And then a follow-up.

there, that mining away in the prepared put remarks in you from and refocus mentioned coal out You alumina.

out in is other color that past, Are sort these refocus the sort there's alluded in the you've materials? strategic the saw pandemic the just low-margin any Or the this to exits. of… of to think more on if some also trying but portfolio refinery -- downstream, best I coming of Any opportunities? I on

Christophe Beck

Gary. latter. It's Yes, mostly the

which ports portfolio focusing So that away for ag before moving are into it's opportunities. way the to mining and is the from better related we really the so refocusing pandemic, it's towards food really we towards and started coal, The working fertilizers, something obviously, instance, well.

cost has segments to our as better, past the to become much our years, So, well. over exposure minimal, has growth the and become exposure few

or which is So, which and is potential lower risks good. are higher, growth

side, a two of bit of On stories the tale here. it's different. bit it's downstream Downstream, a in a

for end you have plastics, long been is petrochem So that's end which well. of time. an a kind doing is market an growing We've

are we We pandemic. the growing growing still and were during right now,

focus So business. for an approach an is well market is that sustainable we end with want which we that this point like as the in very then complete solutions bringing we're instance, for better last an market our this which transformation. industry is and a on further is to end is recycle And in to new refining, plastic, solutions traditional

take in as they reduce As we that's years. all have going footprint to footprint terms here. few well in of a carbon their know, And to

get to pilot in us footprint and we and way well produce in project those refineries the have that very on help as carbon right renewable it a there refocus for companies as So lower good with well.

time order to here to So going to I high-level place that's it well where refining. some where in like as a going growth sustained quite take in get we're

So way express it. would that's I the


next proceed Your BMO McNulty Markets. the Capital comes of with with from John Please question your question. line

John McNulty

So two I guess ones. maybe quick

segment? reopening impacting color from gradual of little you businesses, how regard both pace for us that with and reopening see the Europe the to how institutional about bit things XQ and thoughts XQ or reopening give you the the think sequentially on the industrial Just a to can and or of to

Christophe Beck


So, early reopening the QX. hi, Europe of John, happens

as I you've few had in as spend chance Europe. well newspaper, a a to the it read well well weeks as as in put that Let's way,

was So opened clearly -- Europe towards then until and June of June, close the suddenly, everything. end we

our we seen first so of a went zero we've we've a Obviously, in kind seen open. change, institutional were obviously, numbers, from very because in They restaurants of institutional to Europe. in hotels, So closed, trends in dramatic business, kind as that's see different not and which really quite well. encouraging place. that industrial, pickup like and so was very and our a improving foremost, And

okay perspective international of means it's So overall, as is as outside international interesting North in Europe doing kind And far. an to America. so keep well which overall well, year, mind where was last flat,

company. So good it flat coming to get in was whole we to in kind it's too. on even of it so the going not back front, better for And growth, but that see news QX, QX, only

John McNulty

Got been has helpful perspective, really just I and of color. not Or terms had you of on businesses? had any to And it. raw that terms sourcing inflation speak getting can just a whether any you from impact it through That's issues pricing? materials material function that in a and the then guess or if of raw in

Christophe Beck

product. Texas a sourcing, have well reformulate could team, question. a market great as out tight We're freeze supply that a that lucky chain obviously, made February so for The harder, is out great enough alternative to great find It's it there. The procurement could everyone there. team in

second the in to been quarters But it's lifting a quarter, that as come. our and to the organization. well within we've we been the see fairly supply manner overall, improving able during customers So heavy continued in

as but of a the line, are great bottom work, being teams should. helping they lot So supplied customers


your comes Your Roberts next John question. the proceed with Please of question from with line UBS.

John Roberts

Lobster offerings enabling customers issues? their Labor is for any your customers other labor right or your to Is digital you help of issue an institutional and your with software your now.

Christophe Beck

hotels Actually, Ink. year, saying. shortages does. driven Those labor helpful. for lot have industry. to is hotels, users to They are of creating by we're coming and definitely of which a It to train Lobster some you're that solutions that kind and with exactly in people restaurants X into need million restaurants are of what the and new expecting end close by the challenges

story. good So that's the the of side

John Roberts

hard surge of products And you're then product penetrating adding. last but a fast-acting, of year, could talk about penetration like it new you had your new of the customers? still market some or talk Maybe many terms in you new So about cleaners offerings? other surface customers are that

Christophe Beck

as a are declining fact think -- the that in have that solutions market as buying many we seen when many actually by which are today has during We you restaurants XX% pre-pandemic as a be units it, about certified foremost, Science first to is solutions which time the all order in and is such. the direct circle outcome buy the since of, to program Certified, had customer customers the Ecolab as

as So really that's well And well right. been program you're and as penetration you've that that's units a a good. is great story solutions endorsed companies well are McDonald's driven as great maybe that and well seen which that has as progressing corporate very instance, of for have story here,

pre-pandemic, and when brought versus we XX we the surface which are we last about a that wipes, think disinfecting well, pandemic as keep well. on bit market months will is refocused quite a and had the sanitizers well we've over partly Like still products, the as So All by we by innovating see sanitizing way, the really doing the sign, instance, in good what double-digit field. growth for with a as we well. that driven

order U.K. two in market. companies, U.S., supply one acquired well the as one we've in in to the that So

the So good front especially side. and disinfecting far innovation on the on so


proceed line Next with Please Kevin Suisse. McVeigh your comes question. the from question with Credit of

Kevin McVeigh

increase it talked X% clarification. that out the of or all, overall just -- of point X% just Ecolab price across or it's frame industrial all just XX% across to? that a no industrial wonder is increasing, way I if The is business? that to you And

Christophe Beck

well. the as in Kevin, the whole and industrial company, have you Yes. increases brunt the where of is cost because will that's so we bear for X% more

the to So ultimately. in industrial. higher to have have in than other lower businesses, And you're going you're going X% than four

Kevin McVeigh

growth Got and refining the it. business the to higher of is business to as And percentage any repositioning areas overall, then within at as just kind markets within clearly what about into thoughts going Just you're you're today that ultimately, as then kind and that, of of the end those ways where itself? just revenues bottoms, XXX%, downstream ultimately think there well? downstream

Christophe Beck

say tell, hard reached right petrochem would along. well I so to downstream all now, doing that the It's we've been the refining has but bottom. part In of

that's obviously, as story, different So such. a

is us it's transformation like total the But progressively good we work downstream more is that that to say of help place get to it's think get companies, The some need of us well. those the than take we with those companies or They true also right of had are refining. positioned U.S. truly discussions where with in place. industry to as going I year that's companies that going can the trajectory as in but to of zero we So in ever to especially news CEOs great now I've uniquely better European the as an improve the lately them to business. well. a with It's

So longer to term, be good I think for it's opportunity going us. very a


next your Please proceed the with Vincent question. with question Stanley. comes Morgan of from line Your Andrews

Vincent Andrews

Thank afternoon. you good and

demand, of I the You bit as seeing there sort sales the some perspective. were more in the seems labor and from business seems customer think, retail structural. food but expected, prepared from mentioned one in of that reversion it, of things issues specialty a one comments less coming consumer And just in a little were temporal other also those you

a on think understand those help could trends go-forward us basis? you So to about how

Christophe Beck

Yes. Hi, Vincent.

specialty a actually. business year. a So, QX comparing well doing really that's in to It's last it's we're because strong

it's comparison a So underlying. question

and right lot where a -- serve very So are I very heading, strong and profitable industries now food serving well. businesses, retail so quick successful as like

underlying the with that's skewing seen and that's what a numbers, future otherwise, comparison keep a two going pre-pandemic good, as to little businesses. the on very I you've so see it's bit of So kind those well

Vincent Andrews

Okay. Are then XXX. a right you've I And think and be on year for $XXX overall the those cost going for was this numbers? number the of follow-up. the savings targeted total as million eventually to just you're I track assume still

Christophe Beck

as me Dan. there. question a was Yes, looking question to I let give to forward well that

that's opportunity. So a perfect

Dan Schmechel

of $XXX incremental very very that to. made to question, more has the Such Yes, track and progress continue we year-on-year. a program, a much we'll you. gone broadly, million which And on sequentially, through couple remain good the maybe great thank our about A iterations, so feel we've XXXX deliver we


comes the question. your Your Schneeberger Please Oppenheimer. proceed of with with next question line from Scott

Scott Schneeberger

of new So but new want the wins, about the description has business to wins that's little just getting? and elaborate been lot sign the markets, you water, today about inquire my A of highlighted on recovering Could Thanks. talked and in maybe business getting of you what lot a I even wins. you're -- you're release, across where strength a first, most and certified, type press bit pest. paper, we

Christophe Beck

Thank Great question. Scott. you,

been to which So progress some it markets as We new so is always what those we enough, have neutral, would the And good many great months, traction in with carbon is to the as really been it's most like business, institutional news. is those such, or customers really XX positive. in positive neutral, and units market. markets companies net than in at the solutions the is with Healthcare carbon thought where your ambition. to to strengthening story. zero net the the much as of Science before, the get our zero, that good interestingly way that's our their it, sustainability need order opportunities need areas Actually, business as us and new well growing gaining goals because numbers with I well stories more they many Industrial every harder. which get because closer are looking a world enough, relationships the our is one around as closer end our more over so them our we've all in in really past they this see one as from water interestingly would emerging new well made Life water say of doing the trying has help discussions forward well in ambitions, need even or in help business

drivers So emerging, good our we're that's seeing company. one of for which new the that is

Scott Schneeberger

follow-up good of there. on pace a data of opportunities, margin to report growth think or I would health, expansion? just quantification just ask And on a be animal then any your progress other growth And to centers Great. that emerging some specifically and

Christophe Beck


So starting with centers. data

on unit enough, interested could offering to provide XX% that's as interestingly a for is are the we they new those that XX water think, focused to as the a our world the that companies we perspective, with could way, reasons created really or And expertise all build, that is have a done XX from sustainability-friendly As months we've part its well. division we understand, ago, which want as well data of in mentioned our solutions been and a industries XXX% are access in by microelectronics, centers totally new used sure that way its of to the in the dedicated them Intel we a And as well. companies close really that business. uptime second growing It's light that any to been earlier, be story. those technology I It past, quarter. well. In terrific very secure secure are digital that make that we've

that something a time that to solutions we make is protect they to but as be in to they very net that allowed what doing so important animals, farmers business get won't environment all made are in health different way in reason not as that to field, well. like created because great it that as business dedicated compare story. been We've to health close a Obviously, want we're driving all I We've subpar way. acquisitions is as is complete as a in fast bit a in such, underlying. where a they the really has QX So this unit. well going. can, zero is Animal -- this going at XXXX, high in be that's order sure that of the for, most to one that's business. or get order exactly to a QX and our the very a need least to healthy use more are in is interesting not they antibiotics forward going sick. And animal takes

an but and from trends you the proposition, aligned -- like food I with and that clearly evolving so So, are manufacturers. it's the customers ultimately expecting longer-term that's consumers


line the with with Your your from question. Company. of Please Gabelli next Morbelli proceed Rosemarie & comes question

Rosemarie Morbelli

if a little talk bit about could wondering M&A. was you I

are You an have interested in? have Do would for ones? been And there acquisitions. targets making you small be that appetite you larger

Christophe Beck

the the manufacturing months, So our M&A larger yes. to in institutional, in We We're and with over seen and that companies, is, produce us great in we perfect couldn't area, in interested and during past and short a going the pandemic is other few offering wipes mentioned ones. business complement industrial, ourselves. answer and a today healthcare which as We've ones done could the smaller we've earlier, especially were that in that, be forward. for

as that the as as as previous extremely well. over on animal mentioned We've health year, done just we've last active to as we've well been So well I months. the M&A six question. the front last done And

very We pipeline. have rich a

at bigger future, now. didn't we the don't many We feel have have find we the the so day, on will when the discussions get what I the the line at that time. do. disciplined so that confident right to so what well at discussions all And far, look I this very we as a serious But do very out we've of right there. But opportunity with opportunity had we end we and exact in

Rosemarie Morbelli

area Can acquisition? more any where you share with us are likely to you larger particular make a

Christophe Beck

core interesting, digital obvious much business high a serving related very detail, for life of as us; reasons, areas very Rosemarie, to So in I well. too large the so a and end which successful for go well market; science, growth and water as can't third, technology is is but

areas interesting for those So very three that of us. kind are are

Rosemarie Morbelli

business And health then, the currently? right. may, animal if of is I All your what size

Christophe Beck

I'm not sure we've disclosed that so far…

Rosemarie Morbelli

now. it But you can do

Christophe Beck

let's way, few that it put Rosmarie. million, A hundred

Rosemarie Morbelli

did say sorry, you I'm XXX?

Christophe Beck

hundred. few A


comes proceed with of from next with question. your Citi. Please the Juvekar P.J. question Your line

Eric Petrie

Christophe, for it's P.J. on Eric Petrie

You data share U.S. And that in in and how a similar in and lodging, noted you I was restaurants. wondering then you lodging. both gaining on Europe if compare does had were Asia? point restaurants

Christophe Beck

focused was because in of them as a the was mostly I restaurants comment like in is my highly our that And application offering terms solutions. of provide because a automation the lot So impacted on our we hotels well. of of mostly an progress we area. make it

about that [indiscernible]. U.S. abroad. have. of talk You've large in to shortages well, And this mind a CEOs had is the all the I've lately heard staff so chains chance hotel the few as and from they top to

doing. are So that we which new, the not been have are solutions we've those things that

labor to helping right challenged saw many in ultimately an years dishes they them quicker, in now room is clean clean as the as or with are well dish really for which So many, business something less that those easier And and so the with are as away are sell lodging. on way, same on. in water, housekeeping the helping new passed solutions ultimately on us well, same

as we've as well foodservice. progress in good So lodging in seen

Eric Petrie

say a just And then in follow-up you gaining settled Europe restaurants is and Or that to would well? out? in clarify, share not you're as Asia

Christophe Beck

those to are reopening there, now. honest, right over numbers be less have markets and so We

So gained business. we've new

see how to practice afterwards. it have We in looks then

come, we've whether share to but want think I the first I which will, I and in be gained, the I to months we facts not. better that quarters So really will to in or believe position a have

Eric Petrie

surface sales much And How your from you the second Okay. down second expect in do what sanitizer And my and follow-up terms were half? moderation for cleaners of in question. quarter? hard

Christophe Beck

So our were sales than to so Company. year expect of and lower for -- sanitizing to sales overall put perspective, last the significant just overall. year in had it's We XX% last growth we be

in because disclose have So, that, pandemic, the way the all of peak god, than quite XXXX. so we changed practices countries. and most end but markets higher lower a numbers, the than probably about bit to but don't the thank And need you higher detailed than XXXX that's think


Your Alexander of Jefferies. Please line the next question proceed Laurence your from comes with with question.

Laurence Alexander

refining. from like of away a shifts some quick on of discussion Just the to up margin lower the businesses one the earlier follow

up you've your sales of the calling the If sense hadn't rough you how away moves you business give And from at years, last last sales done of the line can much that, you a how mix? sort you've couple some the over for moved look been if of done the have out-of-favor segments over would years? of much couple stronger

Christophe Beck

I really It pricing. higher-margin question, well. something in can't because idea that we is chain, a segments, be higher-margin The the to up needs have all be on it's the move It's move margins. to the no up because as business. doing every offering only great focusing Laurence, but we're by along are driven It focus

coal, So, number a some in it's process. its a continuous the work, areas, are as extreme, exactly on couldn't like it's put that that more refining more before, in I significant. or downstream continuous where But mentioned because


of the Shlomo with from comes with your proceed next Rosenbaum Your question line question. Stifel. Please

Shlomo Rosenbaum

their technology to little the level approaches C Company the you terms the ask leveraging a how it bit an organization of of in Christophe, sustainability. as about want investments is I

I'm the sell you So to Are an Ecolab's seeing growth is start this a to up accelerate with how revenue potential being opposed progressing? incremental discussions plant the organizations? Is there my more to as or Ecolab to is level. enabling discussions pace? an those And chain understanding further accelerate increased the for wondering, C-suite you are at starting within the to potential for able large by discussions you

Christophe Beck

that, more maybe two answers, how. the Thank to have is but quick so topic. and what love time in a the zero This I'd great on you, to Shlomo.

on clearly what, It's new, customers. always not the we have accelerating. it's more but First,

to being one customers order past or are not it's with So over to or secret And obvious a asking that path expressing carbon, that net been year order in get CNN Microsoft zero to since positive of water so. the us or partner they've us in ones. the to on a find

the easy there, actually, data the of of thereof We need quality product. brewery, water world, are what's This So thousands you in to to a our And a the technology food how. what for or that's kind we it instance, water, the within like physical have the indicates as kind need performance world-class to across compare in of produced. locations that plant well. company, can water being real a the does get to well. We make required a to or bring application to serving per need a best-in-class. which is direct compare industries in such. because standard well in we performance across level order brewing Well, what order are the of or Since plants being much the used you there how a to is is a Take compare compared uniquely be it know, company company, brewers hectoliter individual to We out of technology. we second to beer in center can of in understand a as technology chemistry time digital can is back can how as to digital achieved? placed we recycle of as which that's understand as need

So and we've the XX, we the second, over years how there been that what technology with and enabled implementing, good digital to world. building, by good benchmark around can of so provide well. looks all XX last customers like; get developing as That's

Shlomo Rosenbaum


to table? potential so just the you're to improve guess, incrementally companies that I bring do revenue the so for really at sell the able going, a you that to the there, that business capabilities is to bring so because of other growth see higher is that levels, you can -- obviously, keep And these there

Christophe Beck

absolutely. Yes,

the data as that of in also so directly kind been by XX% well, driven And is well the So with what growth you saw centers, quarter has is by growing which that. as X% of light solutions. where driven

can implement well us and the to the positive that more company. are market going a across indications it's as early the as end So help more we

Shlomo Rosenbaum

great. Okay,

mind sneaking more. in If you don't my one

taking the pre-COVID? the more still Texas, customers Just and before are to or does chemical compare Florida usage the now say, was it in are in let's the that levels of the there What how areas open restaurants, what customers? terms restaurants that are completely

Christophe Beck

is down lower the But cleaning time. today, so sanitizing it in going lower solutions as QX, that up, because mentioned going same so as well. up before, rooms as as is well means dining of still the It's demand such, has which at Shlomo, the as XX% in are, and pre-pandemic been the dine-in so usage was versus

as when and the well same as pick come. months we dine-in today as the the sign number is same have to up to fact going solutions of ultimately the growth is well buying that good weeks So, in number of a compound units


further and management this turn questions closing gentlemen, time. there floor to remarks. Ladies back to would no over are at I And the for like

Mike Monahan

second our the call. a be day. associated up slides wraps call That will and participation website. quarter Thanks This our great today, and for rest discussion everyone. and available for the very conference your have Thanks, of much on replay


participation. does thank gentlemen, conclude and you for today's Ladies your This teleconference.

a your wonderful and lines, have may You disconnect day.