The Procter & Gamble Company (PG) 20 Oct 202021 Q1 Earnings call transcript

Good morning, and welcome to Procter & Gamble’s Quarter-end Conference Call. Today’s event is being recorded for replay. This discussion will include a number of forward-looking statements.

If you will refer to P&G’s most recent 10-K, 10-Q and 8-K reports, you will see a discussion of factors that could cause the Company’s actual results to differ materially from these projections.

As required by Regulation G, Procter & Gamble needs to make you aware that during the discussion, the Company will make a number of references to non-GAAP and other financial measures. reconciliation these trends investors its and website, a believes on useful Investor Gamble measures. www.pginvestor.com, business financial underlying has full & measures with provide perspective Relations Procter non-GAAP of posted on

Now, I to Chairman, Jon Operating Chief Officer, call and Financial P&G’s Chief Vice Officer Moeller. turn will the over

and good We’d safe and remain like expressing quarter Good families difficult start morning. explain. our sincere well. A your by to hope isn’t to that you are

of maintain growth, the Strong including in in up the up to XXXX, with first away-from-home overcoming significant some of out XX%, high challenges, electro, consumer down production, low Broad-based China, growing double-digits, momentum, the point of growth the impacted adjusted up remarks Grooming for We travel the brief closure focused to needs. sales quarter and raise guidance We than reflected singles; for X% we’re Home Care, just growth, XX%, to Health to free Care price. categories accelerated X return appropriateness per market quarter Baby cash singles; top of health going by increased calendar leading brands us the of growth momentum Greater our specialty up Feminine enterprise for prepared our cleaning, guidance X% flow raise markets Care, up comparison. the and operational share sales COVID X built crisis volume more and the Care Oral X% X strong safely U.S. XX%, organic and of and lockdown grew points to sourcing China straight Family and And basis So, over to at little XX Care productivity XX% turn significantly categories maintained staffing provided start to up sales. X%, approximately mid-teens, strategy, XX Personal Personal and this e-commerce and we shareowners, Care point growth, more country pre, necessary and materials positive base strength of underlying our organic calendar our than minutes up organic enabling earnings our up during your the with Care, X up Care and challenges, year is organic up product hygiene combinations are guidance up points strong XX sales retail, in XX some significantly Fabric period fiscal sales strong singles, in keep heightened channels, a XXXX. XX% July-September of Care year, commitment organic Skin of core and serve quarter. the cash beauty growth sales share our against a with facilities up to pandemic, point increase a aggregate holding then and business, post-COVID. driving half for category which mid to XX markets X% very X%; for our Hair growth, of increase questions. which share; mix

up billion strong margin to operating basis shareowners, up neutral up ex-FX. margin core core billion Adjusted $X of flow points XXX of returned earnings, value basis momentum earnings strong and fiscal expansion core earnings been guidance XXX earnings, core margins per share, per free up share market a financial maintain of XXX repurchase. points, increase We the organic and $X for all billion cash crisis currency and paid sales, to P&G return. cash into dividends the strong We have points XX%. trends, key productivity, strong of XX%. supporting per very metrics, a year, this through FX. advancing, productivity stock heading quarter, recent $X to per up Turning gross XXX earnings to built most the cash Core able COVID sales share strong basis of summary, XX%, this, core In earnings Within points, operating start share volume, share growth. basis excluding and

As period. that guiding this actions and last we the choices outlined in our quarters, established each we’ve crisis two our priorities of three been have

world. ensuring is safety P&G of the First the our colleagues health and around

created produce crisis, hygiene, maximizing needs their all people spending hygiene their health we of home. ever, are additional the and the at important given and cleaning, These to than availability Second awareness help and current increased the more of families needs. and time by products the with products health we’re

and our with agencies the frontlines well consumers PPE which to and who support value of our relief choices public pandemic, the as of donations, with remain this for support virus. the encourage and on long-term the strategic priorities These ones. line strategic are communications global foundation balanced communities, These supporting top spread using measures right and creation. Third, people financial bottom production, completely are expertise are and choices marketing congruent as product to health growth the

through drive margin invest for we’ll quality of bottom importance options crisis, need The Leading for of delivered short-term of to choice. ongoing value. we package, execution, advantage our consumer business expansion you and improving the we’ve drive strengthen investments and And continue raised on execution plays product, In need this bar offerings partners. including the the consumers all market superior the and investment, world. margin to around builds builds the We’ve these for made the superiority, productivity. of this role and need manage long-term Superior underscore our health a to our use to and extend market strategic top growth. to line on of growth, competitiveness and with retail significant ongoing growth know, balance where brands. with execution in our mathematically As focused products category portfolio retail the performance-driven superior categories daily performance share aspects brand and communication, offerings categories,

and We’re in the across driving facets all cash cost sheet. income and up the balance our savings business, statement and productivity of down

culture our comes with little like the in to though critical well-positioned to to trends In executed and focus and even are redundancy, new and for each predict. organizational against their the requires world. constructive important. to our other. difficult behaviors, new turn demands, structure value-creation. disruption, share, each the hygiene or create These consumers’ the yields our into organization an believe Next, well, which a sales agility disruption, they and mindset we’ve accountable a will highly societal They near is grow to strategic deliver Last, success portfolio and on and well and shape we’ve of heightened new not productivity, grow and independent continue strategies. long-term organization and priorities constructive supporting disruption that with be reinforce are We technologies distributor had around markets, overlap a P&G prospects, profit. retail change, increased our home We needs made, and other behind current success environment, choices in more future. the of and serve to changing agile build on strategies, which needs a changing and competitive more all agility mindset superiority, industry adapt, our our empowered, willingness little them future. long-term seamlessly flow constructive serve industry are will of that the for believe and partners, that more When and clean We to our it’s term challenging, bode health, all the our structure

how fiscal underlying consumer the the resources by Our is This high increasing backdrop, through or broadly year of operating bottom near-term a line operating outlook a itself longer infrastructure, how chain unclear parts without the suppliers. cases this markets strong dramatically policies we’re of and base, and still without to increasing line generative. top U.S., those of of available vaccines there world. These supply our highly tighter first cash would same growth. begins and to of will and distress overall leading Against meaningful in and mobility, parts assumption and There expect are be expectation many The economic how to highly many result prompt deeper available. challenging be some growth, the to that guidance. holding unrest potentially in operate we’re for containment ourselves of long continues be world, could much an at reduced With ongoing can is be fiscal the stimulus across to and economic likely world and parts risk cases that or it. a increased uncertain. it’s ‘XX. the when an effectively We’ll be with unemployment category and recession prospects to levels, will is dynamics also in social mitigating we’ll of manage an employment as operations in This our large advanced disruption, In the affect cost will quarter affect or COVID an develop. our which incomes, reality therapeutic

are a of QX X% retail to We’re raising ramp-down which partially fully reestablished. our range of to promotions range a from growth quarter-to-quarter inventories sales are X%, and X% organic guidance as some from includes X% replenished as to

expect aggregate the We to year. share in market grow for

$X.XX. prior a partially cash range core $XXX higher of our year range to our X% earnings tax, shareowners. million after expense and of interest to tailwinds. from Fiscal and freight X% of income guidance share costs foreign after million of return from higher $XXX of tax outlook million record after interest lower of track to share a of of generation be continue headwinds This exchange, by will bottom increasing includes approximately headwinds XXXX $XX line a offset to growth earnings We’re and versus tax cash X% per costs. significant core long These combination commodity should per million X% $XXX the

adjusted flow to We’re raising around XX%. XX% free for target productivity our from cash

approximately exchange stoppages guidance closures to to geopolitical commodity shareowners outlook current to are billion $XX cost range to based billion. expect planned year. employee current $X in daily-use increases, constructive brand ensuring and all to We up, cost focus, with weakness, production execute $X in all on is currency consumer rate cash, maximizing range accountability. in additional facing, we dividends the the of and the foreign We continue anticipated billion we of communication, and billion execution our growth value, the health continue in continue for $X to share to products, Wrapping winning this packages, $X This increasing society market are cash billion retail billion Significant rates. challenges major billion strategies, product repurchase safety, priorities agility fiscal and current overcome pay a share of and return ranges. of drives facets store not to a prices or of dividends and to disruption $XX deal areas feel $X operation helping availability, improved disruption, portfolio to estimates, a the of from categories have and Combined, performance superiority and the immediate commodity outlook where are within these and organization to productivity challenges repurchase in choice, right Company’s crisis.

not stepping back. We’re forward,

down to our consumers doubling serve We’re and communities.

capabilities brands that, questions. We’re happy on our take value the investing and With and eyes I’d in creation. fixed our always balanced your the organization, long-term with superiority of growth our be to of

Instructions] Our English from Sachs. of comes Goldman the Jason line [Operator question first with

first Geez, question.

areas of probably the of I off jump many guess, ago. Jon. order wanted higher I one to questions, So,

what’s and increased consumers’ And mean those home. eight, the if revert the expect it durability about to focus changes on seen not? you enthused Do excited, What’s to that over hygiene we’ve your the behavioral the pre-COVID? health, of nine view six, last you’re months? related mentioned duration? so, on why not, If You

for as there’s with do interactions being in to new It’s hard the that’s grandparents, consumers, we’re the the and In on But our because through. they inventory, see they’ve habits this some for reversed. been understand. we that more of generally, On But, some established level a same to was expect expect continued some Consumer having be. occasion, could going there’ll awareness level analogous from We as remember predict happen a us great sure once the what inventory attitudes medical form phase. solution food good using ever I Duration, and that amount in going that of your pantry standpoint. category, habits, rarely stickiness under people be of at same But, start keep. standpoint hold ways, pre-COVID. as are that snap to well. back viral to they that new permanent is they’re reversion. raised. call some I been a change and once categories we items no formed, to are or to is had duress, like Even example, ability from some mine. a us here of collectively revert it’s they survived depression, habit, to once and our will and behaviors I’m canned what’s some do have a things our I that it

appreciate think about change as I context, it you think the your to you construct, that perspective. way want In where the you play? portfolio about does

On margin, where on impact want can play. it the have an to we

hand each in with able is, sanitizer be So, Safeguard to a access? want to question additional example, are the The our categories. opportunities happy under U.S. brand that launched name. of current We’re the we for there we

capacity so which working surface product. can XX Microban we hard that increase on for demands to the of aware disinfectant, You’re very-high meet we’re

again, choice, heavily very and going drives to with just step hygiene categories, on the and and hygiene serve well generally, present the home situation portfolio prior. up on a to our clean going health, it does clean brand additional home consumers is did needs. help health, performance their to But, serve opportunities situation, centered and So daily-use is us as

Ottenstein Your of question from comes Rob next the line Evercore. with

the we’ve of So, at are Kind in share, kind lot business question. e-commerce. balanced. you and deep towels e-commerce X And it losing killing X% categories a on on percent How very work a we Crest of the extremely paper numbers was of cent that a to did what a on looking little market e-commerce, out how priority environment? two-part based and that appear then, X per U.S. mixed. of using about is diapers, volume this like much thinking growth, And of e-commerce, mix, but done in doing a that bath data. numerator data came Certain dive share well, tissue, saw just in price,

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a Robert. slightly it I’m core I in Thanks, want to but different bring going the of place, around right start to to question. your

with patient be So, me.

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sales which take, and So, and as important, more create than we’d is in rather profit. build as well market process the share, sustainably very

compete channels In in. a terms just we like competitive of other e-commerce, marketplace, it’s very that

find across it just execute in in and an when and our where remarks ups always performance our don’t strategy we e-commerce, differentiation general but provided choice in downs like are articulated between brick -- are our just it see see a that when mortar. superior. our And products format, strategies categories. succeed I that same prepared there’s a to we of lot in I in of and ability there So, described offline a highly format brand truly of is ton what e-commerce that categories is and we relevant and parts the just some, drives I don’t But, and we

area, margin share which versus We and versus offline focus. online always in carefully is at our dangerous. offline online that’s progress overall progress look an So,

operationally, aggregation. to lower we of levels course, move Of

to which e-commerce just sales indifferent and total. grew We’re of we to is in shopping, sales exactly XX% mentioned where the XX% we online between offline want I completed. that now probably our are be. we XX% E-commerce quarter

as successful that we So, in they’re on being focused just important. And channel the others. are as we’re

question Stanley. with comes Mohsenian Morgan next Dara line the of Your from

It’s endpoint through X% growth seem about upside. So, to really quarter, implied only the the the full understand year up QX range this healthier the I just wanted versus QX QX the implied forecast, to at doesn’t QX organic year after guidance strength. Jon, X% despite fiscal better your of for sales moved

more related So, understand specific other just uncertain post mentioned there a driving to here you’ve Are trying forward remarks. COVID? is that just your to that environment in couple factors sequential prepared caution,

your you our just promotional promotion, a normalized come they Is U.S. XXXX So, to up remarks. of on a the level? think in more prepared will do bit versus And an Just front? there. was that base. promotional calendar given abnormally on that -- it be that more And environment of how helpful is detail returning XXXX given depressed

you historically if environment drivers anyone to on call, that uncertainty surprise of a or highly ranges. accustomed operate guidance guidance, uncertain certainly this And not we in with continue many that to more frame helps No we’re than to.

Second, we’ve way to go. a got long

in got to So, environment. we’re this very we’ve quarter, three more quarters execute one dynamic on through

we in to Third, market X% on is be normalized growth, X% start which process, to a basis. That’s of outlook global. where looks kind our

them And quarter market completed result. think is we desire so, approach. the new as range that but a Also, year mentioned higher consistent X% just elements, line our has and to realistic guidance X%, in to fiscal you I will two build its share, our one drive with of top

there to still well work And have do. We was probably first there’s of replenishment worth to the -- as point promotion. where mentioned The was categories you replenishment a the or that during two. trade is, have inventory been we quarter levels lower

up our we’ve categories of of categories normal business some business, the quarters, where half current returned we benefit back and except expect levels somewhat of in where tissue/towel the those into parts exceeds on replenished. forward standpoint, our supply, still most would our in Care to promotion from some promotion for that our and demand rates of that have be U.S. We the ability Home And to of in year. Health replenishment, -- do work business. are ability a catch to promotion our many So, normalization will now subsequent but our of carry Care

cadence exactly things that what get is and to we not clear. entirely return XXXX, is the as what level exactly into So, of

proprietary the is know continue do for. to specificity in will we going a best the and equity. promotion a of knowledge But, I spend from opportunity on of we standpoint. where have are nothing state can promotion. current that answer volatility. lacks to current We’re you innovation state prioritize be competitive I The There with the the and looking

behind yes. question there I would range? moving There But, downside. is hasten think, think a that question also there’s add is, to also the Dara, the right upside a to the now. answer possible guidance lot is the is I pieces of just I

of line the from comes Lauren question Barclays. Lieberman with next Your

I little wanted bit to ask about of play. a fields

out been some Personal Care, incremental new mentioned, of area And had and that’s opportunities in specifically I also environment a just like curious this though you’ve presence you’ve in Health was sort interesting the because Care. opportunities about up new Health investing seem another kind As Home pre-COVID. in where, that of the mentioned open launch. building business also Care also the there greater would Personal Safeguard would it release up

footprint are business that on focusing years if opens areas, the helpful. business, of bit you up several think, you more you be I that kind So, you -- that where of a spending for where ago? versus could little were really new just talk differently, about international could what

is a been That field very are Health you We we’ve description. to attractive purchased Personal one portfolio, OTC that, German which successfully. the use play, It’s Care the Merck of a of but -- we’re your very in investing still is integrating, middle behind. Sure, Lauren. right,

in of very and high double ahead cost is, your is top-line heritage international, digits growth growth those Health nicely. we synergies singles, growth outside P&G some And business cases, also coming in the news Care the Our our rates on are of United good attractive that rates, States, growing to purchased plan Personal -- business at when assets. the question

sales continue ideas current Merck heritage us additional that portfolio doing The assets And with value does with. the for we’ll about confidence gave smart to be give and expand looking that. So, $X for look P&G to combined the German international business, things and us billion portfolio. to to opportunities again, like create OTC Vicks

meaningful have Though of grow categories profitably. our drive to of us win it you parts seize time many don’t same is and of puts we that lot presence world business that that profitably and going want of a the in So, in XX it do lot to over-the-counter secured our as I each to in. overemphasize we will and know, a -- those effort areas to focus and business. we’ve do them. spent land capabilities the in of us opportunity, to opportunities And one that have, landed and be see in put position the and we And But now a we’ve to forward. medicines to a that clearly, intention in opportunities this

comes question with of line the Bank. next Powers Our Steve Deutsche from

about if had But, China quarters a bit explicitly you this of past consider was morning guess takeaway they’re of a months, to tremendous as of that more this to of well it’s little patterns, of in what the more focus wondering are rest guess, you world and underlying the versus a focus well if year, the likely -- single your talk as those those particular already. rest remainder more structural low hinted if hoping six we I as of I most selling little And or in I around the a if your the across I think just attribute go the as think digit markets you of expectations you’ve there a growth forward. to focused differences question, you’ve at the over don’t to own growth couple terms just as both it focused versus could function your a And know for separate as just consumer are Jon, of the I’m your U.S. growth in markets, curious that bit mid outstanding to I portfolio. like those differ. markets what it’s in equates but I’m

allow talking of time parts strategy and making Company and and we’ve higher I our the The David at some organization leadership other as to focused U.S. East we combination years very -- that We’ve of in geographic portfolio, on take and in in growth than Europe that difference Middle we segment. standpoint grew U.S. And in China, the the and to do those But, in in time. prioritization I I focus significant example; for there the what the is markets. China their mean, effort organic sales superior quarter in winning several the a of the an say, execution and some of as across every Asia, organization China. completed, we opportunity this example. Southeast choice, witnessed positions the are from currently, is focus average is world. U.S. talked just are category grew are category the geographic two that earnings on our growth about Africa, of across and categories -- holistic been U.S. design about China. think the importance most began an have rates markets ago, intentional with, focused Even the you establishing the CAGNY markets. our structured as the of that choice And being and that our don’t

where in U.S. conference rates fully business. execute to work improve attractive. strategy we and much growth were a strong going have certainly be growth global They very market hard should yourself non-U.S. can assume encouraging recently a we fall, U.S. to we basis, pre-COVID. has see. over really deliver China and to the in talked at what as And the not of couple China. during sustainable share were the to build maintain And longer be start think, what’s are growth to have with They we’re that ground the that on So, earlier rates and very been delivered of standpoint, on able I the expect rebound really need covert, to you But, to the the we on bit in about Lauren’s top share China, or and periods a and a rates in very points strong, growth of fall, really The opportunity to strong reasonable competition. and holistically time. in this in little most non-China to from of you there so we in

of it had the the continue market will and we doing impact the of it’s Now, to priority. a we Very but need application function said I forward. so, earlier long-winded elsewhere execution have in is this think certainly conversation, a I has move strategy, in already more of partly we’ve a U.S., to and as responsibility the and a and we It’s function of we those as partly that the growth, continue believe growth function question, partly that disproportionate done and that. markets. to even It’s in U.S. -- China

the from of Jefferies. question with Kevin next line Grundy comes Your

Hey. congrats quarter. another And morning, great again Jon. Good on

have First, you quarter? would helpful. I to the the missed housekeeping question. a number a That this. retail I global sales apologize relative Do X% be growth if takeaway organic in

and hoping further to business can rolling a for challenges of of this a Shave will you So, may or place? risk promotion the course, was demand comment for that early. your at pricing has probably environment the It faced category likely a just slow grooming spending area plans has is momentum. challenges, been is on which ladders Jon, of in in to update be a And out an are compounded about I Walmart Gillette’s that category. competitive in now, recent suspect And the market it’s I the men’s work-from-home risk potential of I share and position, the pandemic the by know positions And destination that particularly just suggests get some promotion, some the their on while, [ph] the trends. demand been U.S. comfort on this the ask, in years. price context an maybe level here my and around bit category, that of Dollar some But, comment of bit I some notable to emphasis of week. I shave a of the has which higher this also challenges. some in We think broader question, there. talked

a number John specific with I’m Chevalier going get the quarter. suggest to on give you the retail can offtake more after you during call. He

at kind probably of of X, guess but help head, X it Going I would that. John top the from my with you can or it’s

business at we And a we growth. the terms of of be In very part globally of the year, completed. result Grooming just attractive continues two years to grew that our on pickup grew business X% grew We Grooming consumers. so the it row the two all a a We -- is in Part a Grooming, in years in that top-line holistically quarter last of ago. business. serving of more

which of designed shaving reduced skin, general. that of products a King to parts and under high in channels Gillette we’ve who serve I about choose cetera, was to very very a of a innovation of This so whole meet facial as for some the in to the to wax launched to be SkinGuard that C. grew well. competitive frequency and that some has from men category. on in brand of now men well. world, our trimmers would We conditioners, been growing shave example continue the strong was attractiveness are So, very lineup talked is that to very, had -- to and the beard has percentage been going third of sensitive maintain designed as thing will category painful, because whom And business, the the and shaving shave who point et hair, attractively everything an of barrier dry to needs

business. promotion we’ll we our plans. built are It’s that want into You that behind. It’s a reference any growing. and pricing I of something should investing our or this we -- and it’s specific thinking avoid assume be profitable, business. And But, very is to to in specific category like into cash-generative, highly built

Andrea question line next Teixeira the comes The Morgan. JP with from of

you Congrats improve an legacy franchises, and growth against just if of area diapers. to you of are momentum. And only the conversely, X% the to a idea need perhaps distribution additional your down results. Jon, duration of just on have may you your break volume this get innovation mid-tier that could the in the lot

you this can on give view segment us So, globally? your

with that I how break volume you’re any along lines requesting. know to confidence down the really don’t

apologize I So, that. for

in form, of style particularly positions around diaper have We is that market we’re basis. fastest-growing pant the on leaders, world, segment the where the great some a the and in diapers market global

very portion also business. in premium doing of the We’re well the

which that have out, on And point we through call next, as have, situation. mainline. world, rightly that to we expect, what and the XXXX, hard been expect we in of and not superior you address we innovation coming would the market, across you to this carrying working As on middle quarter the market and been beginning have

Next of Stifel. question Astrachan the line from Mark comes with

I it XX% that’s kind to sales. e-commerce, go of pre-COVID. I’m somewhere of where was XX%, doubled so Jon, back guessing wanted to

to sort a So, the like sustainable? and And would of maybe DTC, And basis? all think of how those related and all are that under touch kind on you have that increase things that own of to on of continue our circumstances, continue broadly? pursue Thanks. that going working is SK-II helpful. go-forward thinking it? that on see maybe to would much to I even things be drives will of more are you curious mean, presence any about much maintain adoption medium? And that the seen, you’ve what that consumers those consumers how purchase how in I that

superior We serve And shop. a really fashion they consumers want wherever to in our choose to focus. that’s

they do channel win. and if should choose have So, channel, click and and we’re very e-commerce, win. to that’s they positioned, make we’re the relevant channel-agnostic superior if communication for to consumer long package prefer they If superior We value, as we shopping not to very brick-and-mortar, And appropriately we’ll hybrid we’ll with in experience the well. collect, focused choose to shop one the that shop as right channel let we’re versus another. If choose the well-positioned that’s on be like in a product, relevant a a choice.

a DTC focus So, that’s role. Within clearly play our focus. vis-à-vis can any channel specific that,

significant and to some including the -- habits, their operating us very It’s to it’s of have all needs closer in As complementary that consumers in businesses, a habits, our and model. broader be can get you an context. mentioned, of their important allows of already part the to their it understand, to better and purchase even understanding

continue de-prioritization our or but of So, presence, channel at increase trade. us will of the you the other again, to see any -- not of preference DTC

line Your next Tong from the America. Bank comes question Olivia of of with

dynamics, want the broadly innovating, gaining I share. clearly, competitive we’re to about because talk

this on is Your year earlier working. investment double down plans to from

really So, you this how it’s quite pace about view just also to anticipated, seen come you’re you most had about Care sales Home Grooming, some competition at they’ve your of has to it? from Health not expectations? non-COVID Care, there started Family point? and in Health And full up Beauty, in activity, perhaps where into And factored concerned, to maybe up talked categories, on a more have the couple in Because, that’s what’s they the growth and landing catching categories, year because or newer picking accelerate. still demand is Care, like the Care talked competition their

a would that. color you. on little bit I more So, love Thank

an together a were I’ll and across as how that’s across react have on to, time. we expect on growth them and the well allowed in suited the point our a line the going is that to behind just But against are brand and of each our to rightly maintained address come certainly still where though strategies strong start and we’re about Baby what’s our the been you to that. that to a to want execution results; in back men top-line bottom the saw franchises. The importantly women challenge see very We talked been is Care of P&G post-COVID I spending regions risk. is X be activity the careful Competitive someday be momentum -- is and are environment, to in through our strategies, the feel the strategies then insulation in that top-line that this momentum environment. reflection and execution thing. Olivia, quarter, structured quarters Each for business about of system And set top-line reflective and very categories we as to constructively the we’ve working quarter. well statements the COVID as quarter around reflected as and our portfolio don’t XX in to set competitive that competitive a some that to the ended, integrated and participation of will completed. us built world in suited of the to suited we of grew We and you categories spending in that’s going necessarily we’ve COVID well geographic not prior XX,XXX a accelerate putting and on that you the grew of I’m what our the reflected which driving, marketplace inherently of awareness grows board. pre-COVID have increases out of that inducing in bad part environment, really we consumer competition. These for are strategies COVID, of set the best results; we

some early us sure continuing working that and those to I been our know the that’s to in chance our well. important of continue so how doing what. profitably it agendas, the And more momentum the we’ll what’s or see. and competitive best strategy for is we’re execution of So, But, the for of execute is

next Citi. to go We’ll with Wendy Nicholson

awesome. much is and But, wondering have how much benefit to made your all leverage. you’ve organizational Could margins? of kind that just how growth operating you talk just of is it of and improvement Both, stuff, of I’m structural operating about structure and that your exploded, the and that’s favorable

structure think a Company, or as the Thanks. trickle term, top-line four you permanently to years, do those So longer we are out, growth bit? going years back have margin when years, reset two we the normalizes think three for

net a operating still leverage, which So, around and superiority. in leaves XXX XXX of two-thirds That’s and savings the points. the attributable of margin within to sales productivity about our reinvestment basis third, to points healthy improvement, basis is due

the So, that for. asked that’s you’ve breakdown

top-line on clear grow minds are we our own we the to very We margin. and going a need in need to basis, that grow

to do is both forward. executing we’re designed both, and everything now So, moving

Markets. RBC with the next Your question Capital from comes line Nik of Modi

demographic middle income more because getting was premium lower lower doing this and be tougher if the you companies lot ask at spectrum, on but what And due losses just income economy. thesis because on a wondering pick [ph] Jon, this I is the range them you a will end just to and a I that lot bifurcating well. fairly goods there kind furloughs that for are of more of obviously do yet, I really kind not much down the to of impact the higher job end still there of hit categories. Procter concern if trade thought was income But, consumers pressure, is whole thoughts of that could or up play for bifurcating CPG about tend of times just you into the the consumer wondering of your income’s

just hoping thought was whole just thoughts some to I add So, that you could process.

same in I I’m can a at not Nik. an home data. three-month full of more trust U.S. in three-month that down in the fairly If enough the spend shares down, period as decline heightened a are the X products need the I we deliver a And set is to to believe look smart Thanks, look know and is do dynamic bit and private for trade label where all to health, and true and generally at a Europe. ensure will and private that are which my acceleration proxy the shares family. label I’m prior concerns last for to period, using product date. just this a against that know little lands. data clean What There just is available me holds versus a that’s and hygiene for willingness encouraging point, that for work

unlike the meal a that entertainment, money categories, restaurant, or our They’re that’s at very of dynamic whole is travel, apparel. of most in budget. playing. on consumer spending that’s the not crisis, prior prior So, a at generally Supporting on a crisis, from different direction, on reconfiguration

and have So, they flexibility. than to if some case do do historically, which choose so. can prevalent they been redirect the are they It’s redirecting now many more has

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Your Gajrawala question with comes from the Kaumil of line Credit next Suisse.

change to tax specific Jon, I know of a structure, if how But, in question to don’t on be or thinking the increases questions this a in investors it’s is from or changes details. you might have scenario -- and going the we getting lot we’re administration. any planning hard around there’s a answer, really

meaningful the and the requires Senate. any the of of structure at branch in executive First tax in probability the all in all, control change a change level corporate

whether has in change. to understand likely anybody do to be order to there’s the first that’s So, handicapping that

I’m of The of back with surface conversation of powerful was that in dealing I rhetoric there’s so make this for I and did diminished the lot very corporate we many importance. is, would us eventually reform, have again, the their enacted. and hard why of push think long a it point to and There issue. But, at were on motivators so if and this, so piece some tax don’t corporate second go why important

to living. companies markets, was to grow, create America’s non-American every first opportunity increase would in competitive fully American attract jobs, to The American of standard give to wanted capital, companies be to we which

anyone’s other capital I the world. related capital don’t important And to past. prevent and to versus dynamics we is to the onshore was to be domiciled of walk that motivation and it Those wanted America going flight closely as to to incent strong second, the think very to to are in casually very is formation moving attractive motivators here which operations parts make second The third, headquartered offshore. opposed

that of into most this will question. recommended So, terms that in the recently to of I hasn’t I expect offer go amount that and to applied thought, date any deliberation consideration been change collectively just

highly going to be is three of others. dependent well what on lot stopping shorter some if the questions by, a that a specific be going It’s on than details more the on I’m answer And I the reflection as to So, happens. as anything numerics. driven just that answer think, I mentioned

Bill Chappell with Your question Truist from next line comes of the Securities.

Hey. Two big quick is us how ones. Jon, shave. One, shave just total of remind dry

it a guidance a you just guess, about ago of I what’s months commodity little headwind. more a a gave talk Just and XX% the I to growth. could horizon the whole on little on changed have maybe that with And since then, surprised offset can the a two was business, mean, half front, I you and you bit little even what see

there. example, some I’ll overall, an a range-bound. But, other the the in as moment. pulp, the petro in benign increase environment at and complex basis, somewhat historical of we versus it a understand purchased. an an that Oil year. don’t items been increase hasn’t have the The provided But, certainly of you you. question in John, my since wet thinking, for for way can shave. I if on data. guidance commodity get of he dry changed we I dramatically the call the the generally There’s it’s on relatively, leave is breakdown environment,

William We’ll Andersen take question our with from Blair. Jon next

you Thank neutral. experienced of organic if the be could in mix? lesser gross fabric P&L, to Care; driven segments mix I is second from whereby growth the being, those the describe line to margin within and by that first question quarter. Care What’s top the is and in it the sales, mix questions the looks essentially you Health mix, detracts driving extent one quarter balance sales and impact have And you. benefit that’s to quick the the on a on happening Home adds of division favorable two the

mix, is because animal just not complicated very is there a geographic there is mix. Mix but category

mix profitability, market, with sales differences the faster you do its revenue U.S. grows impact per and of I example, a way than conundrum as really quite reason get focused so, And going And a that margin that the way, To category when as I’ve on I’m going for this or the almost it’s gross its P&L about relates it talked and don’t to significant -- rate bit. margins. any case to one both not other referenced. that a another has

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the margin gross se. that be should the dynamic. to margins that’s up the a profit you’re seeing. We have delta very that why penny I’ll take a but an cash. unit that’s day it per carry degree. and some we between the degrade Laundry of hung margin penny math in -- hung dynamic, offerings driving many our of that our get But, week, we though gross margin profit. premium that’s And and But, higher on may every can’t profit up even higher lower of dose is penny example a profit

today’s your conference. you And Thank gentlemen, ladies for participation. concludes and that

now may day. Have You a disconnect. great

one we during the that day. that take at the as I to the Again, you of your on as here. a that time COVID, Have robustness brand the and of driving away greater But, the of about progresses. for think happy talk line. and are the And still quarter, pre-COVID, you reflect week any is really is I’m And the appreciate and I takeaway point day length now, that portfolio the momentum, post-COVID. with of questions. your the to great bit momentum that on is of summary business are who Just those and this important strategy the most