The Procter & Gamble Company (PG) 20 Jan 212021 Q2 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 I’d safe and remain like expressing Good families start morning. our sincere well. your by to hope that you are

responsibilities going on as call the are Schulten, forward. Chief today John’s John Financial Andre and take Senior responsibility Investor Officer to able March Joining President me on move let with overall into Chevalier, of who Andre Investor and to Xst, of will discussions Relations our have we leadership for Vice Relations. continue I’m as

quarter, the strong calendar closure increase organic April completed increase leading to staffing pre-COVID, sales struggled challenges, return organic earnings even XX%, and that core electro, at to year, growth, for our X momentum appropriateness quarter. strong by markets XX%. over as brief sales China, we strong Care XX%, nearly COVID many remarks continue with XX%, X% the market grew growth. product of guidance our We’ve going enterprise which plus are Family past We’re highest Care our which Care top-line on XX we Grooming the quarters the this categories focusing as sequentially Aggregate for sourcing serve half. for grew digits. of COVID share Home pricing, will XX%, now our our Personal and our per XX%, Past production Greater some XXX% share providing keep Skin double XX%, singles. which free the and to to Fabric gave plus year heightened the created during Oral points year sales Care, to XX%, years growth of singles this E-commerce which shareowners. materials as Care Care, is of mid hygiene channels, impacted COVID X%, Personal single of ‘XX, up and again just enable built to growth up up digits, of we broad-based strategy, up growth cleaning, straight us COVID operational new for up of travel safely up XX%. high XX%, sales Health pre-COVID per up productivity to XX XX% many in around years, lockdown away-from-home realities. cash markets, and and U.S for the bottom-line strength the In reflecting the XXXX, questions. for four it, and lockdown in earnings cash our quarters to delivered up specialty organic significantly growth, we’ve the confidence quarter, our health X This before the sales significant and given necessary to your momentum mix, business. plus driving most X and dividend XX%. in the Past organic and low points nearly maintain Feminine continued December up underlying consumer Hair and XX%. of time overcoming in plus fiscal results, significantly Baby Care, in and sales. beauty forward calendar and COVID basis Care, Focus October, we further number plus of rate crisis. of top-line, plus commitment eliminated Each adjusted the Care momentum example, strong needs, strong morning, pandemic last China X%, points flow X%. share The prepared and including retail, year increase cash XXXX, challenges, now Organic and organic Building accelerated during first facilities plus us year and up brands productivity. of core categories up on momentum XX%, momentum, guidance four volume calendar point minus up

XX%. the Past share earnings past quarter. share up $X.XX, up up XX%, currency-neutral core core per share of earnings. per a XX%, Core per up four XX% and earnings Turning XX%, currency-neutral earnings this quarters, XX% up up

basis XXX basis of repurchase. currency. of $X gross excluding basis billion operating $X quarter points points to XXX the Returning up dividends currency Second XXX cash billion flow expansion stock Adjusted productivity impacts. of core cash of shareowners, Core free and points, points, basis billion XXX up XXX%. of grew $X margin margin paid excluding

XX%. through year, halfway earnings. fiscal XX%, $X cash return flow XXX%. billion shareowners, of over up up XXX% core the So, earnings Adjusted up cash all-in free sales to year-to-date ex-currency X%, per productivity share of organic

actions As guiding in we’ve have and that established our priorities shared this crisis choices previously, our period. three been we’ve

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

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

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

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

across that We’re the savings cost our all business, sheet. driving down up statements to adapt industry more our in facets and industry the competitive and a mindset new highly and are constructive cash requires income shape in mindset that technologies will constructive of the create willingness that Success for important. future. In the balance even agility comes disruption and of change, a trends productivity and disruption, our with current environment, and agility

bit choices serve superiority, build they our new not which flowing culture to disruption reinforce on portfolio, strategies overlap believe supporting turn organization empowered, the other and deliver independent profit. results about seamlessly strategies. strategic and we served and share, priorities accountable against the new times, more other. around structure were post-crisis as redundancy and each post-crisis. little productivity, These a to agile want Our are during these organizational yields constructive us strong executed to in and crisis, continue on markets, each world. delivering will When I They grow more well, demands, or structure before dynamics. sales grow with has volatile to well These little recent well organization a talk and

of generally undoubtedly straight While will hand. our our move to move we we quarterly experience some will new we’re and reality, line, post-crisis prospects and a a as like not in volatility, results optimistic

As time family, at SK-II, out incontinence. home categories. impacts our the at due to across negatively dynamics It home different adult care More differently deodorants, consumers benefits and we’ve fabric spend time pandemic, play grooming, more seen businesses. home

some are are different impacts some positive categories. and COVID across regions. across negative different, So, also Impacts

is example. offices. region our and While North closures consultants, away-from-home increased, across which channels, beauty, multiple true America business. our growth Middle lack department stores the impacts an specialty premium In disruptions Africa reverse Japan, dental channels, suffered East in electro, market as beauty We’ve across SK-II has Asia, still

simplify As the The chain and I number and source some professional we our SKUs. hotel by higher materials, away-from-home goods. finished P&G mentioned, business been safety, low has of seen restaurant increased We’ve to as maximize importantly throughput transport from to have costs benefits impacted occupancy. supply

or the will very disappear. tailwinds relevance dissipate, mid accelerators of COVID, categories we consumers expect strong may to crisis, increases. lives and should of then, also be headwinds impacts and abate when growth. our of out are our as to there the which some and of bottom-line long-term potentially but business the So, we’re And current of top The some

may superior We on daily alternatives, at products impacts. times forever and home consumers of shift potential solve a established newly e-commerce, etailers or lasting a for with day. potentially multiple importance preference likely problems hygiene experimentation, will both more our continued home, become there’s for better at serve potentially brands a noticeably altered less consumption for focus meals reputable health use than time cleaning, will increased be performance, who what increased and The framed each home, focus gross, that There omni-channel. related for potential to more

environment. makes Our well-positioned are believe this us generally we in experience to-date

inventions We’re necessity working Today’s to lower the productivity tomorrow. discovering resources. fewer of giving with cost ways rise of

forefront, very digital continue challenging prospects, driver near-term predict. on are the productivity like the the though more the long-term our labs to and floor, being our We environment. New office providing be factory to and tools another will brought to much difficult in

outlook develop. itself consumer uncertain. with of assumption markets begins near-term an is will how This underlying highly Our by

those likely generative. that world of parts the of highly and or economic category of and a expect disruption challenging ourselves expectation an can operate. also is this be backdrop, There continues cash growth. to as bottom-line infrastructure likely vaccines, of same deployed, for continued at it's to affect other social of prospects be holding unclear There increased supply of be Channel These cost many the Despite been to unemployment high an operations result and and the in high in nine stimulus been rounds much first fiscal the of be world, U.S. through we to vaccines will how much have the for be have In how parts economic past available. the COVID the levels operating mitigating without operating 'XX in or of remain we'll actually and manage long it. While months. cases risk the many disruptions will growth, distress chain markets, number top-line our our we'll suppliers. Against resources to launch of we're continue. dynamics effectively the unrest

million year, With consumption adjusted of first the of per the new bottom-line second into the trends These the inventories of half lower XX%, This X% share to includes of higher a previously quarter, are $XXX fiscal X% after cash outlook and in the a deceleration to year. to We after first sequential core shareowners. further year tax and raising million X% the levels higher earnings to our to costs. January. we're from $XXX foreign income consumption categories of X%. to combination now and X% X%, cash are guidance range sales X.X outlook quarter-to-quarter replenished a share a guidance X% of our of tax X% range range. interest The to midpoint We're on guidance core in the point guidance range incorporated $XXX per expense X% as growth going We're to to a the saw and retail X%, U.S. in strong X% fully a interest sales Commodities in assumes to freight half to earnings growth of free fiscal range. into from of a currently at are of increasing as flow our now category headwinds increase forecast growth, higher return million productivity approximately moderate. earnings the for base, range step-down organic to the organic growth, from exchange, our and December neutral be increasing after

about cash of shareowners. the for generation free return adjusted We will QX, cash and now to XX% of record to XX% track to range a productivity long from going flow our XX% cash raising our continue target after We're year XXX%. into significant to

earnings. We've increases, billion exchange strengthened a We of around range to on $X billion. up, or to commodity we weakness, over continue we currency to serve believe well-positioned within a heightened crisis, to market anticipated to production before not and momentum of this XXX% to up stoppages guidance additional current and all-in billion from position approximately year, rates. and billion Significant is rate prices growth consumers new during needs geopolitical crisis. to increasing major dividends the behaviors are of the expect and cost retail are billion additional pay to range. based COVID cash the foreign fiscal commodity strong Combined, on post our in $X repurchase $X closures outlook our and $XX share partners created distributor disruptions, crisis. well Wrapping store our further estimates, is further and P&G outlook plan return This of shareowners $XX the

overcome consistent strategy many health and of crisis. of the of this in serve health and not challenges interest be our shareholders. what manage availability and to society's the safety, happy products midterm, the We're with maximizing long-term We're and questions. hygiene take We're our will our employee society We of helping times, the consumers immediate We're against to doubling and communities. in priorities volatile outlined now to short and to interest our we've down needs, ensuring this interest, back. doing a serve forward, in your stepping cleaning, could

first Lieberman from with line Your question Instructions] [Operator of comes Barclays. Lauren the

Good actually growth. cleaning, I to hygiene, Thanks. wanted talk long-term Great. bit and your a category reference Jon, to little and about health morning.

there's the was go a ability purchase, had you markets, view you this a I and curious regions, to is to is gotten U.S. still that retailer there inventory, conversation. and pantry that's So, if just and shelf knowing household some obviously on closer, been better first shortages, in into product In particularly was pandemic. other on limited and

thinking one? in there surface how just packaging? pantry Is that two, term you've P&G cleaning forward? interest occasions? So, referred a that? things is can change, think for to consumer much thinking longer like to on it sense company to Is to to address now you you ability mean, interest. I chemistry? you're And I about of and are of get terms product curious right the kind future Is What sort it going that was of consumer inventory Thanks. how was particularly a cleaning, best this as of it capitalize of reference your then, the consumer prepare heightened do heightened

U.S. air cleaning In insights at are frequency in-home pantries. paper Thanks, freshening many these usage, rightly We're example, obviously sanitizing and of world, you at very higher, XX%, towel XX%, importantly, to seeing in Lauren. an dishwashing homes there accommodate also We is as in pantry XX%. don't increased XX%; up have frequency no in they're pointed though build pantry time meals consumption the more higher there large frequency that aren't perfect categories, home, the home, consumption. into inventories. significant very, up enough and is as you We know inventory U.S., primarily more up as the out that up And indicated, are parts

not we and growth an at things following. there that behavior term to increased outside X understandable be rates some accompanied or So, reduction And generally the habit are in post tend We've result this by through. at not remarks to to then, consumption to while heightened forward remember less it's have to could occur some many we mid to to provide been that habits, the are and there And step themselves has occur that pantry are and their the normalized a home, protection? better, consumption a our what consumers particularly on it, in we're should of higher serve God-willing how tendency U.S. top-line levels. their X inventory this unfortunately, the health, for therefore, those your prepared for levels in is we've Heightened markets, where with dynamics obviously. up new Yes, or from in even been to And way gets can for period as of which of with -- doing? all those continue crisis. cases managing a need Could that think pre-crisis trips categories the of weeks interest channel this habit a The in is U.S. family offset about these not weeks protect an some level in year. with build for many I'm might And situation more minimize strengthening. and in back And formation as where the of on and hygiene I same part my clean in long time might better there means needs. while step suffered global like but consumption home, does consumers, while been to the should if the I question, snap basis, environment, some form same opening. again, consumer

that the mentioned. -- it's things all and that of Some you

a We We're year-to-year oral on helpful an power relative an clearer hygiene, Safeguard so those health in usage educating, our health Microban are to We're is better and to occasions new point both meet whether increase that the for the to XX% which home needs, benefits innovating sales. offer. as clean our new modifying that's home. example, to IO your around and sanitizer; better bringing whether brush XX it's packaging, that market offering, that's products tips the as that example; products has whether driven

care communication good period. difficult serve again essentially reflective broad that advertising our the consumers is many brand of to kinds format, of highlights benefit are Claims messaging shifted categories particularly these a which job our up educational has back home a is this laboratory with during needs. that developing communication claims an products that opportunities. and fair And, of of research those to our generally that's in which designed on our can done One category, we to amount categories is support, serve of

a For I we've be of in rate out won't top-line organization execution just a laundry from a growth some brand of question. that result that point again example, from standpoint, accompanies to impacts answer, strategy hygiene, I our the shape has it in? -- categories offerings. but this. use long standpoint, you great that be momentum I a as or benefit think good continue and shape question behind reiterate from suspect the predict to the that, come a And that bottom-line a want The both was of I mentioned, of but the channels, to across we out well-positioned think, and I a And today in this COVID to the as all the we're coming and standpoint, from of rate feel going portfolio, developed. geographies this variety of question of you that's are kind what going will an portfolio very growth we had of are

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

what, considered in on there be Jon, I morning, Great. today. Congrats underlying price And valuation-related you that a might is to relative few way times mentioned movements curious the I the of I'm impact Andre. in Thanks. a the if the the quarter. guess, guess, to Jon. quantify pricing Good role, release new

make And I'm cost-justified pricing go promotional forward? guess reported as price you and the guess the cost to you. likely as you are realization and clearly pressures building. XXXX, COVID the to think return the are setup As ahead, up competition of about Thank that of reverse is net whether the offset lapping question to on I additional inflationary forward curious be the prospects the sizing we that how calendar with in set we as at those are think I difficult? incremental can normalized go more of focused year Investors real pressures in promotional pullbacks or patterns will FX we some a 'XX and moment by

Steve. Thanks,

the that point As are top-line. together you growth there you the a top-line though, pieces lot X rightly price it of put to of a within point in From when -- out, quarter. contributed moving X all points

a happening, of you've the about line the that's reverses was which extent lowest So, itself. returned about promotion, have products up that mentioned, has complex it top point, to growth. everything be, X XX% point about to about That which may from sold on Promotion impact on as levels, XX%.

that post gives And math. of net where crisis the promotion of, already So, percent, know we're to range out you I call compares averagely a to that significant pre-crisis it, don't going in a XX%. that necessarily that is amount return on that but numbers.

some points, point impact The normal. Superiority other innovation-based terms and just look not out point performance. in of modest in business inherent the in pretty that would is if thing sales but is And model. I of superiority in you we X that's pricing at superiority-based terms our completed, quarter price the

look neutral look quarters, if at XX been top-line, the -- of has last XX out on out pricing you we years. at slight the positive impact So, last of a the XX to the XX

to category, I drivers representative So, and think by generally a extent, now. if look expectation future be based seeing of lot what the market. future. and you're we're on define vary what of it different some by But, history may of representative doesn't to our you're than normalization, is The the seeing different an going

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

potential usage in a range far to of continuation the upside about seems terms downside. Jon, lot commentary lot last be so current you of trends for patterns, can quarter also And talked a positive. continue suggest but pricing to your the of to

your do half dynamic. the just pretty any But, outlook bit? there the period. upside-downside it in a through sounds like that about sound little can Because second is post-COVID talk expecting same Because to you're So, of you terms the point? when Thanks. range, that marry with you optimistic implied relative shift you at outlook the this

there, is within half. the different One the back period, occurs don't we in questions half; our two post-COVID back which potentially Olivia. the second assume -- two The is

Let our half. me of When talking about for come brands, our one a environment, long and home a what us, hygiene and the versus the cover health, our post-COVID I'm to consumer of a I'm clean period I'm for that's talking and about second in back likely and some term. consumption strategies well-positioned many base being then the been with pre-COVID closer strength of first be in life-altering organization, will the coupled mid very to difficult frankly of increase about talking time. through

view As we of come back operating not in the balance would of and the -- how is fact, have the when look I the I at relatively the how situation the we similar and I year. suspect And to we downsides view we'll would in we in back them, said, them least half fiscal viewed I we upsides changes. back the mentioned viewed the symmetric. them at as And I very spoke. last half, I've are that for as balance be assuming much

in second the changed. in unclear student the first books, simple hasn't rents, very to guidance on base things and it's were We like some many is for our two happen employment, fiscal that still and now as reflected to certainly example, and there those we us, items U.S. half, stimulus as of of the risk somewhat of our many But, year periods What's the that as a So, so linearity issues exactly quarters of in in which in the half. removes obviously in those start degree changed about strong and presses. offset are higher like to basis half into well. get in like assume in loans, to of is around but lives the back regulation, going going Think difficult. just what's things world on by getting any all repayment

something amount will some of that plays how off some period closer We'll time. out. have move over closer to XX%, of to see promotion XX% like that And

during us again, they steps that back will have in up we've So But, there. the well ton to the well in serve the pre-COVID set volatility very a and build well our and COVID, served think here long half, continue I of taken us business all between they there's momentum term. for to us

Now had certainty to the this conversation one were it this were None idea. for me the the what at less are of any time, way next been six months as to year than and just we as level as -- has next And year opportunities last think that would having anything, was or trying if look prognosticate have frame about well we But like. today then. within would of is risks. there us is that,

bit. that long-winded hope for Sorry I helped answer. the little a

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

Hey, Jon. Congrats, Andre.

So, I question. up to just follow on wanted Steve's

on higher historical the appear in sustainable economic the take to more But time pricing. both highlighted your commodities. spike this your prices with freight also, You magnitude fairly ability around here, looks I'd argue as terms guidance pronounced with rebound. of the and But commodity we saw post-COVID your rates for

it of just gross your lead then the relative on atypical just couple and to second, outlook. environment? the a the commodity this just it, retailer for on to to probably significant seem pricing the maybe front. So, there side margin other have shortening years, sort an posted like sense consumer in like I or the uncertain Obviously, of willingness over And companies take wanted of in or expansion mindset take what's is yourselves enthusiasm time does magnitude U.S. an more little for because last level it's past pricing, in of of either of the to terms understand your situation pricing

you of around. do you this more time Can pricing if you've just increases see typically sort with need materialize been pressure is discuss different be proactive? mindset price here to trying when that understand retailers? really And So, take to before past the to again, around potentially in gross able and margins you anything I'm the

The by situation, Dara, category, market. is different by

on difficult, I of delivering you and more brand is cost performance modest categories at the and in on superiority is superiority what perception I pass because they're apologize strategy would ability in innovation But generalize is time. where to tell have same value based for consumer So, to that. while improving your more drives when choice, increases you general,

end isolation of that's not in bit pricing customers at the the works. how about retail that's how think ourselves in at because when So, we a consumer look not the we not trouble get the day, either. That's our world little things works and how

a profitable So, with conversation does so we a that isn't focus customer to we of fundamental plan and materially dissect do we that grows our retail the on all bottom-line in the that top-line single way. said deliver in today past? involve a a and the variable. the host would topics know retailers a I different That is together No. interest. a whole of changes have to conversation either have do ability fundamentally being, that of question there in anything really that -- with Very should our the kind Having business rarely that,

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

everyone. broadly staple. this a of really north false to or ago now brands, there on topic on to haven't give unfavorable Great. on big at a term business, as that we you well, I'll Congrats your least And two narrative commodities strong probably seemed that. XX% Thanks. there pricing, was hear Jon, away in again a and congrats from pivot morning, online shift seen, Longer just Andre, a the be year on well. to which you’ll exceedingly out the of continues Good break do quarter. that to sales. you question channel for which

returns? this then intermediate without would Company online channel. maybe XX% if risk margins share, do Thanks. to likely for sales to as broadly will in respect reasonable what be you which and market closer stretching you much label on sales, to private using an assumptions, just in And comment will, term, of this with moves mean think So,

Thanks, Kevin.

and globally. So, referenced, as we mentioned earlier did outcome the a quarter. strong we have strong now as you above another had year-to-date growing e-commerce of XX%, within XX% We've business

to friendly, closing big growth all the this not those it's this that of of and XX% channel of in situation all in in So, rates. there’s viewed far conducive Without development just know and you're on But, right, I've outcome traditional adverse do that no this it channel attractive as against expect level, when a as some an isn't the channel not as growth. that superiority retail kind established for the we brand we always details, reason or the more of vectors than to through particularly being but others. perform situation that, channels. with We going the in from the preferred is you do need

defined, at higher, you reflective omni and market much pure-play on market think than it of online different anything by our else. by an that's category If the not our And question today, by on in look more shares. basis, margin, e-commerce country, aggregate I aggregate basis than an brick-and-mortar is share the market is so of your slightly shopper broadly share and about but demographics

similar also, the margins across on aggregate, Our two are channels.

rightly do point were in a in, that, as serve that way be that's to wherever we aim to you in and share is they to accretive channel-agnostic, be So, we to want shoppers be and margin neutral out, to very to return. nice shop able choose a place we which

space. we keep well-positioned, Again, day, where I think should We superior consumer the drives volatile continue to choice, eye on we're brand very and serving our with performance work offerings. categories do well. requires very them in every

next of comes English question Goldman with Jason from line Sachs. Your the

congrats very -- execution. solid the important, want Thank Good sliding strong a that's most me topic and you to quarter pricing Hey. morning, and on folks. I back come and commodity. for to do I in guess and

a but substantial. that pricing about outlook, you back of including the the I X.X% not freight, envelope, the of I implies commodity modest think inflation, because about relatively we guidance your COGS back have think talked Jon, a lot half outlook. lot not

hold a the management is hedges going factor it's on inflation to about of somewhat deal, early is and talking when they to off, contracts is haven't just significantly, or all there that we're up the -- that So,, step or sensationalized?

Jason. Thanks,

our fiscal neutral. line in commodity remarks, said is we prepared to a on impact basis, total the As the year bottom

a were actually in you I'm time commodity degree to also a recent spending that what relative So, of and at as modest if spikes But, a evaluation some through offset of decade. the a could some overly things one increase been significant our lot to ago to spot on currently it's one and on it the has some be, we've focused the not that other annualize by take of that things. exposures. -- you look even There the of if It's FX. to of impact versus compared been year rates last

other operating in The reflected that operating And the environment some the abate. the these we've within return results for cost is broadly on total in we've the incurring that growth thing and if would to normality vaccinations that pool, put accelerate in in. are therefore and been pressure and costs markets, would there and current I increases significant margin that current commodity expect of occur been other economies we more

a COVID markets, are So, at we which total the impact could have a as huge the again, pricing we this look offsets But point, we there at different to we be that concern. when but we I at look mean, very about will categories And quarter having think going consider or need forward, conversation a do. much from now, on picture commodities. we like not to

Your of line next Wendy comes from with Citi. the Nicholson question

challenged shift to those the we those bit? pressures pressures wasn't Can months. are some Because nine or of things markets on and category I know the markets of your pressures talk But, shares. about business little that you through enterprise your the clear walked lot whether last over to I in have a totally the gears market a

of So, given more region of in the longer-term new it's Thanks going of on that that I'm that with on historically, say more you been now markets those markets. -- positioned spending those to time think what's role, can us your be you're competitively update where going And you focused I outlook? about your kind kind know I Jon, of XX% if presume of you're in be your much. so running sure to to or smaller focused But sales year kind as what's markets. it's approach this you business them, seen that lump stuff. of get kind on those in regions. you've headwinds

back, objective was for strategic our Wendy. Thanks, enterprises a different in establishing markets approach Stepping twofold.

and that step to if the surprisingly, enable accomplished, focused we of primary that's first of there would objective most a not And has broad all The our be profitable largest to accelerated focus call, markets. and markets markets leadership resources Company, the the on Company what forward. the and major And we pretty was dramatically. progress

in both So, to there's the indicate I digits just It certainly mentioned markets the XX% But, no in U.S. quarter, and careless. growing both that That growing want increased us. hurt would certainly I has to year-to-date. be to nothing double assert us. helped causality. way those focus have appears in China

be of So, by that was to was ensure objective markets customers. top-line with well. a generally closer bottom-line ideally activity source and to of continue of two in consumers Company was And to moving one. source dependable -- competitors to Objective as a market for has growth closer growth the actually more the market, to out for management that well played the these and consumers,

did within or we're a had grew countries So, step we forward year historically. where we point And grew losing XXX markets while market to they We at huge share. of we've been a got year. the which importantly, -- bottom-line the enterprise is two holding last end top-line; where markets grew we building that from fiscal the money, that enterprise

be win you resources cost, the the to way environment, we would accretive are from of of want to will, topic. markets But, creating In of the being And markets a pretty in the general, the future. source question for how spend obviously development enabling in that's on in option if represent we answer continue to again, the market. So, lines that financial top-line I'd And and that. that in possible. I the the Company to do to strong an along on Company, an enable we're a set both very from manage Company emphasis support world, enterprise selective accretive about while maintaining be to post-COVID It's a to think growth standpoint do a to out a resource to normalized, standpoint full the your focus we're choose more progressing major to that to in where this do. markets time. we've choose that in relative a these to wasn't of ideal growth markets we focus happy and But future, bottom-line. and a we top-line, and

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

supply chain it's cleaner comment be a of I bit consumer displayed. behavior was the helpful, starting would very assortment becoming that. thought position P&G on can prime what We've hearing little generally the that to in the are context to seriously would shelf you hoping retailers retailer is been but I from how rationalizing a just Jon, on and around behavior. in really I was take -- And assortment benefit terms across suspect

of can international to seeing degree what have year we and the of on visibility. So, expect context this you the some get would to you just provide markets and the kind what maybe on like U.S. that I unwinds? you're And as should perspective

for that of, supply. we've of In supporting Our retail where exposed within are position example, COVID retail general, to been supply that upside, some those ecosystem retail we're supply. that source build of we are dependable partners. growth of exceptions the been XX%, are obviously, strengthen. partners general, infrastructure general, some has a quickly. plus There pretty But relative accelerated have for kind don't catching our reputable continues themselves. And exist plus up source in dependable been here has our our and with known consumer-centric shifting the weaknesses XX%, chain But clear a In consumers manufacturing to brands. we've partners so. very

in at any in general talking same not data in significant one look example, categories is are U.S. base a data months. our -- their if private Europe. the last for that support dynamic you market the private-label which as point the down up time that look the period XX you conclusion, on relatively at a of significant shares and number, we're to in And of label small of One declines

again, looking But obviously over with and time. we are within and there we're well-positioned. inventory retailers their by decision their that we changing -- be of Retailers at cons serve do set to The looking relatively some needs So, that levels. more occur that market, their looking assortment. differ And regard. at are the are well-positioned in challenged They're that markets are will dynamics consumers, our working also supply again, early demand us working days. supply. been the And exclusively up a from I the still ours sets serve as standpoint, COVID than result they, to and focused think retailers. chain are as well strengthened on. our we've supply We're those all even position through It's the experience But really of almost that on pretty a dynamics. and has response pros been

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

Hey. very quarter. much and terrific congratulations you another Thank on

really share the and if where can team. the you will new And then, Company, hasn't at two that of performance that, performance near on you seems given about was and stock it wondering to you, over over up talk But, perhaps more buybacks? shifting see and impressive. you trading any XX-year sense looking you cheap sort of the what priorities. is, versus you investors. responsibilities, can XX the is have really months, of and may your role whether based the a analysis, that I terrific I to bit, be the on and/or the an you -- your related perhaps last performance performance despite be the at your it related of lows your And personally extremely kind aggressive a of market of questions, disconnect us. much months, our the give it's know stepped looking with more goals make too to and listening on perhaps kind and to X sense between over you looks time, of So, we your the next outlook to disconnect stock, when XX to done which be focused

on problems the had Billie. have side with M&A You

of So, allocation maybe long capital term, terms buybacks. in more

Just that as get your love on to thoughts well. issue

delivered P, the I'm focusing job being strong E, you sorry, holistic sustainable fairly over a We know. I'm in way. our earnings as a as on as with on Thanks, Rob. strong We focusing view E P, and market's job simplistic. view time,

now fiscal our repurchase go of share return up general, to this capital $X was of back to billion you we're if in billion. beginning and and estimated $X share the terms year, repurchase to In $XX of billion, range

if the if And our midpoint XX, billion, So, increase that's the of look repurchase share repurchase, the year. dividend range, that's all-in to a look at the expectation you almost at of in and fiscal X combination XX% $XX share XXX% you current of of for earnings.

repurchase. dividend it's including has simple. with timing Board not both Directors, earnings We in of journey. ours; share to shareowners than But on or yours dividends our historically the of normally allocation and form of and have it will Excess all-in returned that in and continue Rob, cash more I is review XXX% both historically belief we share the us our here, expect repurchase, is April is very would been would to be, capital as which next the returned them.

and don't, looking referenced, and in of M&A as things been we've This what we've on an Is as small a market. portfolio fill been chosen much at shave themselves, L, size things like in, we part and at you looked capital our of Billie in capital know that care that Native Those the you like categories deodorant, their things by compete of to terms relatively our acquisitions allocation, and have executing typically make impact the and within of as choices. then allocation In

I we as course we've tomorrow to on, today, any see those can well. been run that again we're committed today, don't and change here should to see I So, sit don't the tracks. anything as reason this pretty cause that off us But

how time. I on spend question Your my

sales focus transition, the committed are continue forward leader; have he's to more responsibilities little bit have for our the engineering he'll a our two, CFO the gives function supply Relations function, the Investor in on set mentioned as March standpoint. to you for earlier, have for responsibility, me responsibilities over responsibility manufacturing -- point procurement, continue, that the around rightly I'll including -- Andre will of for of global enterprise have that, around and energetic have we'll the incredibly one, and you as I'll business and so XXX from of to circumstances transitioning operations continue we're in and market or know, to And I as out, services, take to middle volatile world. P&L IT distribution. a markets. world. I capacity for very I responsibility responsibility product So, because look function, and talented, middle our Xst. our

to additional little got forward plenty look capacity And focus as I mentioned, each I've bit So, a those on items. of we to, to do. of

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

Andre. congrats, and Jon you, Thank

is a my marketing and So, follow-up on on promotions. question

A&P, had sales promotion you and billion to on $XX So, billion 'XX. about $XX in spend billion remember, $XX disclosed Jon, back base advertising the in back fiscal

of you're seems a spending not similar higher scale, billion, but it top-line, $XX efficiency a right digital perspective. also but from only Now in because a amount obviously probably around

you think passing would the label? seeing label those lead inflation long gap that on you will efficiencies increase term? So on are -- you topic, probably linger to lower a are resin, And seeing private private potentially between you that transportation pulp, and in

the our brands as of part model part for will model our support of strong A and be going to forward. continue

just marketing you the in year-on-year. we at If completed the side we marketing just equation, the increased about of X% quarter look

on versus future part or efficiencies some our part to I conjecture they'll our by to private those support would expect potentially both not by I by any and witnessed their really want developments, progress dial I price sales levels But, with appropriate. in share much our means. available label, of And with as our back move of progress line regulation. pricing think are pretty us. can't top-line about I either

for So, I'm going to leave that now. question alone

line Astrachan Your the question Mark from comes of next with Stifel.

both of margins, ask a seen of cost the level. relief. There guess, commodity wanted I high term, you've I puts your lot is to to risk expansion about But margin Jon, I partly guess I due of risk do and think they view very of sounding where time think there. guess, you mean, takes. constant, about kind there's remained kind benefiting sustaining quarter-to-quarter sales, longer relatively you in as I not years, of takes lots percentage leverage. obviously at same of about also partly and sales recent as SG&A model be productivity from that forward but biggest productivity and a have puts we those should here? trying to the thinking thinking expenses longer about be in obviously and term in would the are today going how what

maintain top-line we reasonable growth. to of a a that be continue margin growth, extent level the To maintain to can we reasonable of able should level

profitability of very So, continues which to those categories it's endeavor, our be to the contributes has in and improve prepared at and enterprise superiority two I a it. mentioned strategic That margin, focused and I within is productivity legs leg performance-driven to strategy, third margin to on of mentioned remarks, our are related. the growth. the facilitates kind efforts markets. important which times

in a will in is meeting, top which I return with team the highlights our delivering chart shareholder there group of leadership in total the So, share that importance almost peer terms every the drivers -- be on it's different The get of growth continue time without That will line top depending difficult illustrates both period. and both. the be and to margin to how mindset. our home

talking that grow huge are margin line. in with We're We ability in about not about to modest correlated increases top talking are increases margin. our the

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

to believe in you've segments, volumes for the how and strong. Oral row And emerging Oral like -- then it on disproportionally you quite the Obviously that take a shifts being there? Grooming, thinking is starting benefited this business I growth something's are Care is two -- this on and that which time meaningful to Can one of about I is down think model first are now drill of it that you on as you're kind degree of digits. trends a home means of off in returns still it of Care, reason course segments is I in on long double way. quarters a kind So, folks But, discuss know the up the at maybe such. been two this in secondarily, mean, from looks to the really

and all. categories So, gains? what maybe just That's talk can there Thanks. you you're as just share seeing about

done There's side business. benefiting clearly the Both Grooming which the the benefit benefit innovation categories from home, a category related But the that segment to and the within jobs more is of in appliance in are profile that's that innovation. overall, strong. power strong results. -- are and introduction driving our Care iO a are to the what top be year-to-date very the continues mentioned witnessed Oral of as category introduction, we brush, XX% line in of result I Oral-B which at growth

up, side of under Grooming our those better beard On whether you sensitive new step our the enabling with and in it's serve that's reflected it's to business, C. whether the the name, the are all of all of their Gillette line results in step consumers for offerings forward, care that needs us skin, see. top-line that King category,

your final Carey comes question Chris of line And the Fargo. with from Wells

in on that stock November Jon, that on the January? and in the can data or a did some that on suggest saw comment I noted deceleration expand mean scare. you categories just your -- another December COVID up you're the you bit seeing

this look get the step which stock up, this forward? in I reflects going the deceleration a like months? does December past you're but And some which seeing it, trend several think more in or specifically sustainable regions You in from missed maybe of then, that change back

remember in a employment was and to call quickly, December measurably hopefully, situation can situation, Also from standpoint. of absolutely some reference situations of That primarily fairly that lockdown Europe. standpoint some that though similar terms amount October was reference, both stimulus dynamic from the And of different on there available, remember November being reverse impact terms the up. -- of changed of drivers, the there's health which then stock it policy you're in January themselves world, consumer the has from from, all human in parts and the a right so a through in U.S.

not a quarter at or to the But, particularly a any the our happening. what's rest it's as either is, as foregone it for important, of in I'm that looking holistic of as So, conclusion future. we when be the year strong have of explanation for

balance know Thanks on very John course is what answer additional So, questions well time busy thanks any be to the his for thanks as available everybody, And I and you of again. the I a will that of have. day your team day. on

and your participation. Thank that concludes for Ladies gentlemen, you conference. today's

great You may now disconnect. Have day. a