The Procter & Gamble Company (PG) 30 Jul 212021 Q4 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 of David Board, the Officer, call and Executive P&G's Chief Chairman President Taylor. turn will the over

I that and everyone as CEO. CEO retire and joining remain John Good the will was will you morning as us. Last Chair Board. November X Executive I for thank evening, Moeller elected we of announced as on incoming the

John CFO. leadership In my our an P&L including forward. responsibility Chief a he his We Officer choices partnering the markets. of behind for P&G, enterprise more years with and confidence than our guide Vice-Chairman Shailesh set also recently, global to integrate has throughout have provide XX-year and experienced well, announced Jejurikar and Officer these I that support These with strongly as record going XX with highly strategies Moeller. benefit ownership More nearly October has outstanding been then added Operating as John team John, years a transitioning CEO, truly been Chief XXXX, have with to you elected planed had track career know, and and P&G Operating I've full X, thoughtfully distinguished as changes. and comprehensive moves six effective responsibilities of priorities. capable John and leadership

go to initial part P&G’s work make back, productivity, led integral to in of the Now an business. John XXXX,

solve productivity built fashion and focus driven a this portfolio the our brand our This every part XXXX, five-year $XX completed disciplined CAGNY continues categories, largely strategy product category organization consumer The to refined test work where faster worked strategy more profitable the when in several to into managing this our to ongoing with XXXX. new the At to announced of we focus Analyst for billion were first on daily design. XXXX. and and approach in and design November of new brand categories We company's is in choice. announced down problems our plans divestiture strategy performance Day. part Conference an team growing, business. portfolio. and at doing XXXX second program model We years doubled together our in beauty our several discussed drives on team use market our on Our operating cost formalize savings is we enterprise of Today, guide market and the approach our the the we

the need organization, innovation Our to measuring retail value. more execution engaged, And is were any and objective of those disruption and for irresistible talked accountable April, a XXXX, dynamic and was about importance superiority, we've highly competitive lead we much first finally, results products, of there our put set constructive the in we brand consistently the and create If higher over few a done. bar discussed to have the what last execution across our years our which should bed. doubts agile In to work first about industry. in delivering to exactly our packaging, XXXX, success communication,

continuing responded years where in could strategy, in world all demonstrated our P&G this each consumers the of do the to integrated while in the needs our ministry impacts our during of and will deal The winning. from it more commitment and change of been take has to will only crisis. embraced range us evident our a with to team things to of innovation, and not proud citizenship and The that years. that supply our in organization makes fiscal results, way continue organization to strategies digitization, We confident transformation, are our challenges, building, is ensuring delight of Put the three leadership purpose, meet the results momentum are brilliantly this willing supporting that that be of must the efforts. to agility through team with next-generation drive the we and employees our the P&G year. outstanding it, later be the many disruption as our we has Through in everything simply several should years. is around working, needed especially chain past owners ESG in brand be idea to COVID delivering principles the communities building I crisis anything This we Over values, fully and evident change element in the safety of not win.

Now to XXXX over year quarter fiscal us let's turn Andre to it fourth Chief Financial yearend Schulten, the Officer, through earnings announcement. lead Andre? and

Thank everyone. morning, you, David. Good

call are fiscal and Vice Moeller, Chairman President, and add on Officer; for for an guidance We'll another today and our was Chevalier, XXXX Vice the Operating priorities perspective Chief questions. immediate quarter very Joining with start Senior Relations. and David fiscal And Investor XXXX. Fiscal fourth close XXXX I'll of and areas. John strong David year. on results company then Jon and take will strategic focus your with me overview

up We with was stack. sales. year. prior delivered Care, value sales XX Health each a market growing high strong and strong for market superiority each double up for up were digits, up sales annualizing XX% Family low more Oral drove the growth X% growing year grew fiscal business, most the line Skin Care, X% despite at and XX periods. savings total. grew singles, X% for Personal were Care more and Fabric XX% and creation. impacts XX.X% in significant in billion up value with Personal organic from funded up XX share of largest six the for the Care strong past XX share the in grew XX% sales sales year. the Care over business Global and Care, for share across $XX basis up country Care top and product representing it the up for Care fiscal Care to All the units of China balance digits, year and to were company earnings productivity leading months, U.S. Home markets improved focus share sales XX% mid-single results on base growth, XX% over through Organic digits, XX% organic held X%, our markets or markets in outlet pandemic. quarter. year or points, holding Growth combinations market cash Enterprise U.S. category broad-based sales year. cost turns improvements XX greater in and the high to single Grooming, fiscal year. growth Focus the than two two-year profitable E-commerce in Our Organic categories Baby in the on aggregate the Hair increased results our past and grew our teens, Feminine from strong investment strong than over the was past months, with

cashflow brands. impacts. results. earnings XX up Within per We highest strong basis more up reinvestment by – cash points, basis in XX% marketing up the expanded operating was are XXX points, choosing XX enabling than operating Advertising currency One helped points, strong top-line increase of and margin into margin excluding translated of XX%. last this currency XX XXX dividends impacts. XX core strong Core Consumers in our in XX% the a repurchase. grew points. basis for and earnings XX.X% Productivity basis value share years. points absolute gross P&G of $XX $X an improvements billion shares the margin programs. sales, increasingly was year. dividend share growth was value EPS free Adjusted excluding $XX We grew in XXX%. Currency of basis points productivity also increased billion and Core neutral core billion owners, share to XX by returned the

on quarter, shipments growth. base to and sales than pricing market June more X% mix, one down Organic contributed the by reflected volume, Moving the period. grew the the to X%, each organic U.S. and and point volatility in sales rates Growth topline were April,

share Focus value trends the up in period, with base points. markets XX%. a market points sales last global strong on the June All a stack, basis XXX track the China this above XX work two-year sales were in restock a depleted also greater China markets U.S. Greater share up the still up enterprise we aggregate stack. were X%, X% XX sales quarter April, Strong points growth channel Recall U.S. organic quarter. XX% XX.X%. the the as increased for quarter XX% However, up to on in trade XX% basis is to up share in comping Organic two-year year, up were that in inventories. were

Core also gross to down points, year, On impact a neutral just basis cost in bottom had higher margin were anticipated. down higher from commodity X% per currency as the mainly nearly This input earnings neutral XXX XXX prior core XXX share core $X.XX, freight due pressure margin we this margin and points down gross million versus basis decreased includes XXX gross on from line, points. quarter. currency X% costs, basis,

In the year’s improvements our point sharp free Organic and organic fourth chase was in cash Currency In XXX%. more Core the targets operating growth. impacts. neutral XXX free and basis core shareholders. mix XXX% Enterprise basis headwind that of margin from China XXX XXX exceeded last U.S. growth, points. growth Markets Recall for each We saw a core productivity, quarter summary, the year, for accounted to fourth quarter. EPS XXX of of operating growth. our returned points. helped lead basis cash also the geographic the growth, points, mix were we year. flow mainly to this in quarter margin decreased sales declined Adjusted than basis quarter Productivity sales

volatile Our excellent back David. that, pass and with has environment. it a challenging to team And discipline with operated I'll in

Andre. Thanks,

step crisis last our what team that's the outset, months we the said double challenges XX has work would of We challenge down process. some even April our business the earnings manage As back. stronger I make done. said in said the COVID the we consumers, COVID of has call outstanding through In to over we the exactly last done team our and at and would to into year, not serve forward our

have that guiding the priorities we and we will As choices. actions to crisis, continue on near-term the our been focused remain three manage

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

And people their performance the and communities, families bottom-line maximizing their The health superior to where availability of value. we've growth categories use of the in products offerings bar a communication, retail on choices many people these plays Second, needs. and health agencies and package, are products, outlined are hygiene in of on performance-driven the share daily pandemic. cleaning, and superiority, foundation cleaning product, just execution frontlines Superior our and raised In delivered of and examples. and this top global aspects with execution, categories, help choice. Portfolio creation. hygiene market long-term the balanced I significant that strategic who providing earlier third I'd drive supporting growth. like few priority the with role for benefits relief value brand brand a all

our market value to business, micro First U.S. whitening points P&G’s power is offering of great to the U.S. in whitening to the XX summer, whitening business This And also Crest the powerful consumers offers up of weak whitening share past When organic points is the more to of growth. beyond while concentrated than points basis NyQuil past innovation to item the irresistible share value XX global respiratory of over with is Honey IO very the than soft U.S. can Oral-B up category nearly breakthrough consumers no And our growth per times NyQuil XX% since brushing enabling category even contributing leading due Last in Vicks evident Vicks. Health a forms. price. the more a experience. the launched We Honey needed. tasting brushing premium despite to cough-cold Care, growth. X.X teeth segment shopping of Oral category, the the summer, in with the our or driving brush, two-thirds contributor category superior and brush is thin fiscal our be market Personal launched performance than an Emulsions innovation are which it's that next XXXX. power DayQuil the superior the four Care number over we up Whitening in they’re sales The months new across relief. in more rinsing half last used consumer in XX brush product iO delivering formula, offerings launched, driving the up increasingly launched a consumers, a is layer occasion-based growth choosing one this year. droplets, peroxide In create to tooth recently day and is season. market move the with

aspects importance increased our consumers, of offering in of superiority. their taking product assessment the environmental some For on are

educating are superior products a products with or switch of superior Care. benefits I’ll in more the offering consumers sustainable We those performing that product brand are on to Fabric communication.

Here, achieve Tide consumers impact we Fabric thing extend our ensure lower our environmental washing we superiority performance educate laundry. do of a Every Lowering consumer innovating In communication in vectors comes XX% Ariels’ single to we’re to all to laundry’s the Shave of to months. global Ariel and innovate contribute footprint in new to washing To points footprint. the has water their European the reduce to the business, to continue on performance sustainability temperatures. carbon campaign the across of the carbon to machine. advantages, This utilized past value Up temperature cleaning and heating the the innovation along share Degree five helped encouraging is improving fabric we basis important reduce Care’s way. growth the wash most and cleaning can XX XXX over water driving Care are their superior goals, superior cold Difference superior benefits. Makes while advocates from

year competitiveness market results and innovation one systems, improving point; the shelf lineup, on is made brands, simplifying and and continue a for world. business improving growth and builds consumers partners bottles to around sales important the This health This of to our margin health improving we’ll in builds innovation retail for The Grooming growth. and and crisis share for around strengthen packaging million for XXXX launched our fully need strategic the to the P&G. competitiveness execution brands for the to innovation our extend theme drives and the of to manage that the invest to razor More in business good long-term plastic-free top when equivalent to margin and will market including productivity. for one fundamentals with partners. and investments on strengthen need investment business mathematically short-term expansion growth mid-single-digit need share our the options ongoing our and of the through contribute European to long-term per contributed our Leading category it’s moving quality our organic good of retail the balanced importance environment. We’ve margin of advantage ongoing up XX superior our We’re drive to the save common world. water execution, market and bottom-line of growth, example packaging underscore fiscal of

of ingredients formulations no chain that goods, or cost consumer our allow for business. change to facets cost between In us We’re to productivity all delivering supply create our lower we’re ensuring can driving in flexibility, on cash while and cost savings preference of impact brands. flexible

plastic amount bottle We’re of plastics use, reduce lowering to we designs while the costs. also optimizing

granular area They in improving analytics the in-house achieve We’re for make waste media based to place of also the for greater effectiveness. balanced their for to that is cost bottom-line precision business business given and investments, opportunities our authority more some ads effectiveness on and and advertising left need bringing to untouched. other and deliver savings areas. are planning us of efficiency, the increase with enabling efficiency more to greater business in with work areas work while they some more We’ve reduce choices No to to to decide top need a balance accountability best units as to growth. the of how the resources the cost

adapt more are willingness environment, and our the also to with industry current Our will disruption agility In disruption; our the a for constructive that change, the of even trends important. agility industry shape that competitive future. mindset success in and and highly technologies requires new constructive comes create that mindset

served a our organizational delivering crisis. well They reinforce grow constructive and to build supporting have productivity, or strategic sales strong agile the Our demands, the turn crisis, they and markets, during organizational us structure profit. little new grows each choices they meet to on organization yields each deliver priorities other well on will the around other. serve portfolio, strategies When before us are seamlessly and with executed structure overlap end flowing were which of the well, against These These this crisis, culture disruption world. redundancy, strategies. accountable on more and other in empowered, share, and independent results superiority, not and

choices in they we right We’re environment. strong move We challenging a the the very remain confident results through beyond delivered XXXX in pandemic. fiscal as strategic and

local While the the product the external volatile we predict to sharply. and in and pandemic challenges to business, our are and unrest costs many supply open face. freight growth Increased are competitors. and to world and to we’re economic social have distress difficult categories putting on transport pleased parts overall continues many We with multinational and wide our retail create material GDP risen environment chains. and of local consumers, these partners the results for eyes be highly-capable risk Raw the pressure continues strength and in of against compete

opportunities from as in these challenges, emerge consumers’ the there likely With categories lives relevance remains our The elevated. pandemic. also we are of

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

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

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

New on our to another our driver and office are digital in productivity environment. tools brought labs floor, being forefront, factory in the providing the

of retail the business needs the We before Our consumers is believe post-crisis. P&G during position and well-positioned the crisis. new well our further exhibited momentum serve heightened to our partners strengthened crisis, behaviors and we strong and distributor and

right organizational structure. we right have we right portfolio, have We strategies, have the the the

have employees executing We consumers, fiscal and team value With I’ll hand outline of deliver XXXX. XXX,XXX back Andre a with to customers creation. delight on and to focused to our balanced for win that, Andre? growth guidance it

As more move crisis. David will undoubtedly said, as experience we we volatility the through

in on chemicals fiscal the will influenced Freight freight several for of year of sharply. transportation due pandemic. volatility calendar. Current half We and a cost along increased from spot so be affecting fiscal to the of prices affect to billion $X.X realities and fuel anywhere in such supply the material fiscal materials this expect headwind XXXX. calendar XXXX. will an versus and headwind costs in top-line ingredients results XX% first costs incremental XXX% results, of have with we million in cost costs continued the and quarterly the demand pressures cost after-tax and risen commodity are XXXX. factors diesel period year spot drivers the XX% also by far prices, for be Based currently April up drivers and and of Our trucks base estimate prices current after-tax substantially $XXX occurred in the current as effects heavily increases global have up Input embedded disproportionately to Most resins, are other XXXX.

but is rise is time We costs increases, will there to higher a between to implemented these begin offset. portion with a when pricing and when an price lag costs offset the of provide

Era Japan announced mid-September. we discussed price a our Baby our with Care effect that this In Earlier will liquid Fabric Swiffer a U.S. Feminine we’ve Incontinence year, significant increase. increases Care, product recently As U.S. Simply, detergents, announced go liquid in on the last executed effective across quarter, the in this businesses coupled increases we have double-digit all Home in mid-September. and price Care, upgrade Tide are Ariel brand. U.S. Adult that into product effective announced These on increase Cheer, In detergent, increases forms September. price and of XX% Care,

Central markets currency over In We America, months. recent a price cumulative we’ve across offset our portion Latin of XX Eastern to high-single-digit European have price business announced many increases in impacts. taken increase past a the

We in rough opportunities the strategy consumers adding We is impacts and exchange foreign new are other the moves. are business additional analyzing reduce temporary on this along allow, need before a value costs with been we of and not grow categories has will pricing and not price to well redesign we COVID couple a a input reason for way. innovations, and that When for bottom-line and the believe close rate markets reason assessing product a working crisis. during patch through, to investment the to increases

Our guidance fiscal dynamics. ranges incorporate for these XXXX

or to We end X%. range of global about X% The at in growth, expect fiscal and the also first continues to of of reflects this we P&G XXXX. end range P&G underlying or organic sales range with in range global or continue strong markets. assumes of above above to X% organic this delivered level. growing market assumes deterioration more so low This grow X% the high markets half growth X%, The growth that in markets lower sales at the than

organic in the be expect to front half this XXXX growth sales versus period we Given back of dynamic, base the fiscal stronger half.

towards freight, as expect Considering earlier, the half of and $X.XX is of a overall, year. is headwind X%. rate modest materials, offset, On or headwind XX%-point a from earnings of $XXX per million a exchange to FX front range approximately fiscal share – EPS costs outlook impact This XXXX. core foreign headwinds the to includes we in share of heavily I from combined after-tax to growth the weighted EPS in the benefits. freight challenge The growth $X.X commodity with of approximately mentioned after-tax X% billion per cost of from the bottom-line,

fiscal Our back expected earnings much stronger of be growth in is to half XXXX. the

adjusted the We productivity flow of year. cash are free targeting XX% starting

billion in year. return billion and and a $XX to $XX of to to shareowners expect to dividends combined, billion pay over $X billion based foreign commodity market range. commodity is rates. production currency guidance prices rate outlook growth within major current closures and cost not of exchange common plan geopolitical estimates, cash between billion are on This repurchase disruption, Significant fiscal or weakness, to additional We $X stock; this stoppages anticipated $X this store increases,

Now for closing back David to comments.

Andre. Thanks,

momentum Our we well-positioned position business P&G our exhibited COVID and crisis. crisis. and strong further well strengthened the before during to We crisis, beyond is through believe the grow the

our to our world. toward top to fully strategy We We’ll not to be will step bottom-line helping near a volatile immediate we’ve invest to to growth maximizing that likely the term. cleaning committed outlined the to and business. consistent driving availability the our remain opportunities, and forward many and exists society needs We priorities health of health investment improvements COVID serve products of over remain the and the productivity long hygiene times and and back. safety, continue strategies fund of parts term, against in overcome employee still our challenges manage is many ensuring We to committed maintain with balanced what and in

society’s in interest, our in shareowners. this doing interest and the in of long-term interest our We’re

happy Now, take we’d to your be questions.

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

both Good and necessary realizing the on about been several of Thank morning, terms over a to everyone. the process thought wanted you've efficiencies I marketing little of you. of going years forward. in bit of the Great. kind sort spending amount talk last

succession announced night. So, and plans the last also relevant to

this years, over And billion right? than way efficiencies expected. $X was had media spending marketing we delivered reinvestment you've So, stronger in five then quarter

I a think investment of last points on year. top XXX it was basis up XXX-basis point

left much much finally, So, everyone's you a CFO to that reinvestment, from CEO, incremental Two, go times marketers you. perspective. one, XXXX? so I've the few then the equation? a are love that you base the on has years. funding I'd of asked in How over past fiscal for as how just Thank And be two thinking efficiency email, been worried? should about about for side hear think there's to really becoming the

Okay.

start that worried. numbers. Let the Andre of hit all and me with should that know high Jon has investments spending is But well. consistency. should of marketing And first, very a you then a The degree leadership first. senior feel no, the marketer that maintaining last the some marketer not very, we've And can got part wonderful, be He these helping trial market and extent products about and grow share me team leadership not the and And element supported in and with to thing. and a media, creating good they That's very Jon or cost. one in of brands. the It's has awareness the grow superior drive of are these market value, reducing engaged been increasing decisions.

think enterprise This the hold to is growth the three we leader their structure, The the and sector made speaks much invest business the headquarters. how to results and top I businesses. themselves. we create in leave of decision decision we for a the make business. and one not decide about organization generation CEOs a the It's to cash them last leaders our other by each thing it at years accountable the And and to their bottom-line in

And so, spending and one the And the they Andre very comment actually good I, do comment. additional add leadership well. of feel should the very the on structures then working efficiency, that can organization some as company marketing

increased rate of innovation grows have meaningfully in we We marketing. the market. that meaningful also But the increased investment have the

evidenced awareness parts you help the trial. So, that. done top drive the of what and key well. And the to consumers and to you it, these recall It's one and understand have help is then product use again, growth, have in investments is, very line how

averaged continue four and we'll And our X%. back by the past about invest many years, the seen which we brands X%. on any got the we've that years, combination comments If years of share winning years to brand is are Past strategy moved you strongest people the in and sure to superiority X%. growth four In or growth was three execution five we've We the numbers? the years. go we've to average up last ago, make five And And Andre, tells working. get specific invest trial. our both me behind the really the

XXXX we've think our in $XXX return element spending And of a fiscal David diminishing ad reached XXXX the our is said, I we've of superior investments. point as superiority and versus framework core on million. Look, increased those by communication not year-over-year

percent So, that in invest we'll to level of sales. continue at around

When about improved our is there ability We our audiences also with and audiences believe you with targeting significant own the audiences party TV shift media capability think sharpen third-party that into data. or improvements do on productivity still digital even focus, to spend. within media first

leverage space, efficiencies that continues to quantity and create improve of to there of In costs reach. agency significant in striving media direct we quality continue So reach of production to we can indirect improve be the structures. a to terms spend also

So that superiority you'll communication. us to see and direction in to mostly work continue reinvest in superior

the Steve Your next come will Deutsche with line of Powers Bank. question from

this businesses congrats good It David. Great. off feels passed being with And momentum. the to you morning. morning and Jon Thanks. both And like great

very if was rate think probably mostly. the XXXX. half I year-ago congrats you I question a think, comparisons to those is said, you provided first the quarter. one difficult again, X% question the said in Andre for China question, continue quarter. have up in know had as Andre, And that in both. would businesses of growth a you But comps it's guess really that I'm difficult the don't you I I my So quarter. that, great. U.S. be if Those both in thinking you the

call the to in in call makeup Do growth of half stay is first So anything can anything the half? out the Thank growth context Does just terms there? of feel to U.S. of there of you you. first the second, like geographically half, terms via geography? in it positive

Yes, very good.

So, U.S. growth quarter minus a X%. four was

quarter consumption. XX look XX% year's basis, retail that's mainly strong you strong in If year's restocking about the inventories quarter growth the Last growth on and was stack after I points, two-year was by four last XX%. believe driven

return we'll believe in to minus The So, see at record on normal levels. in XX% think U.S. at in importantly, shares this point Most one the comparison, we our consumption time, levels I a we U.S. base.

categories. to continuing share strive. Our brands gaining We're are across

retail Our in and U.S. the innovation strong programs are we partnerships very have strong hitting

cautious So, first we base of especially period the you're I in but confident, terms rightfully half. remain in think effects,

side, market grow we to the mid China to singles. the On continue expect

same mantra good prudent strength about of told our to China And invest comment in and market. would considering you of supporting tell we go-to-market continue about for feel ahead Our good that. the environment. to and In China, to the is you grow I is the in U.S. feel be thing we'll We the brands. those focus going and markets entire our Same innovation period base for capabilities, the innovations I

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

guys. Hey

see you that tweaks books leadership. changes consumer those was post-COVID, again where the taking is the a to period us, leadership of P&G in environment a And back was here we've from the you could in that more the now you road, strategy the hoping and of sort and with think maybe just cycled either you've or consumer forward. positioned a step where I some in areas the a in COVID change change enduring regarding quarter just CEO or how then, So down just Thanks. got change increased emphasis of full with relative any post-COVID review changes. going that unfortunately perspective

brands a that brands will jump that work meaningful, cleaning certainly shift home, a role. but exposed hygiene that that some That and home performance. increased and superior believe what stock-up a know back of about our likely as good will toward the be, while will of X% comments an people believe the on saw people got the there in pre-pandemic. comments were estimated our number bodes Andre health household continue of to the there's significant consumer was trusted more don't to I people than brands then the as and a brands some we've post-pandemic they think last strength then pre-pandemic that from for statistics we actually changes XX. of I the some There's of increased number certainly us. play endearing, well and while penetration couple about had be will with I then are in do well. and Jon and A can We

lingering, a have will impact. that think positive I

So, you've occasions the home. people home, got especially, more at more U.S. both at not take

I the place the but biggest The are the role our brands of and of some the share that forward. trusted with going higher the of in for and toward lot they've focus comps, a family exception had and shift because me, anniversary strongest plan part Europe, the markets a a their got issue fourth that tough in having quarter. increased progress one brands hygiene were care health it to And the share categories. health absolute some of And supply is You've just will call supply momentum. they U.S. and couldn't confidence than and the share demand share growing gives the had of and those every it of me first pre-pandemic

that those consumers got we've trusted last. consumer for momentum, So, to vote performing And think I continue good will superior likely brands. changes habit

There say, portfolio and COVID maybe about whitening incontinence, coming our positions I'd portfolio. masks a see everyone think many in of from that tooth were think did do season our deodorants, well. with serves Personal and our cough-cold What you some that categories wearing business us low benefit well. very back, shave not care, tailwinds did When we certainly had that professional hotels adult Care restaurants not Health I the

COVID and impacted positive markets the the that did Geographically, So terms of consumption as we specifically of a we were see obviously. increases, by operate a retailers and consumers up pick from as businesses enterprise in going markets in those the benefit forward mobility crisis. many as never see

provide a through So standpoint. also markets will pandemic, geographic hopefully a tailwind these from as work the that

to strategic to forward, will the that to always time. responsive whose be as we question consumers And relative don't go I we on changes continue and foresee will evolve over needs customers executing to and customer and major leading attentive to be the in with that again, has responsive to strategies But consumer to change been excellence. continue will very team the we any needs.

Great. Thanks.

come The with next Wendy from Nicholson of the will question Citi. line

sort actually, of first question, My go. Hi. you David, before

in that say And lagging I is weak, One seems terms months to care. the has of share want last of kind but been global baby know market sort sustained the to be, of don't of improvements I persistently really categories funny. XX

share year, supply market last You've such actually a totality, just recovery, to competitive given issues, of had they but were Baby in because still sort some marketplace. be depressed Care looks just

think and more I more aggressive Kimberly share optimistic about their sounded positions. market

all category of to gain trying traction. sort You've organic, more of in players, the fragmentation obviously got lots natural with

give Thank in in us it's think So, of being on you state the would can you really of China? particular Baby Care be to in you Why you union business of of great. a terms progress, especially kind been Proctor for there sort is? where stubborn able That make think you. a

to. Happy Sure.

First, for several it several those years. changes the would been changes, to And as encouraged it superiority. very a challenging made. to deliver category progress has open the to need make years were continue by ago, actually we I'm take time we we product they've technical but very And make because

Care profits profits and line Baby made top progress. increased All-in grew year. last markets global focus Our

America, X%. share The We're the period, now Our in highest strong category more. up North a most has business especially point years. have growth. in America recent growth We it's was been actually or North six leading plus

really doing rising which to is unacceptable. is But to It's we'll the important, better. which to time again, and years years. XX% with delight consumers. six growth up metric, North first to several for it XX%, back continue superiority America in Our was returned investing Europe ago, be

challenging, structurally adjusting It's team margins, we supply returned his great addressed make profitable our and had business the to some You're need rate, did expanded growth, a been model job we Jon and birth be. we where the in had but working of right. and sure the there enterprise markets. systems to the both challenges businesses

across shift fast toward those. And this then look segments. you growth So,

Our wipes XX%. was up business

pants Ninjamas Our wetter We successful the business bed doubled segment XX%. our growth XX% up behind to was launched.

number So, getting but we've going each And had superiority trends positive. We Baby this We're is to fast-growing still we and years now year. there's six and playing better that. the take does things understand in of have in well. do. product a are best Care was the the year segments work time, much

more become Care I year. optimistic So, on Baby each

doing think really is to this make right their job a the to nice and investments. mid I the long-term game they're leader continuing team that and are recognizing a

Our ISI. next with Javier Escalante will question Evercore from come

you increases deserved. $X.X split understand plan geographically. pricing. And how pricing just savings, pricing material taking My raw the to good could well if much if and is happening to I of versus David in going hit. congratulations Hi, the you're what with everyone. question us much in And Jon has morning, to and from the terms you need and do offset not How billion Robert help your could is to

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the scaled it thing suppliers. more power and that many deal That systems and cost if very have brands local to And clear buying we one you P&G have with company is we hits quick Javier, turn comment give with supply tools to a Andre. many dash, everybody. ways severely that commodity I'll hits one work equally that increase. brands, like where in don't international our the collaboratively is

I've the which tools innovation, got years. in is we've think So, include strongest that seen the it I

We have a pricing, active very program. but certainly we have productivity

tools. So, we've got the

specific it's that you it, eyes it the Europe want Andre, I that we're our Andre and again, we If going you And specifics comments have well have of others, Europe? think some the about going any of But been to hit raw in be deal some most. the to and turn to meaningful. get positioned amounts to give to wide categories increased get especially have materials to into. open that into for with of I'm

the industry The productivity in have is say the heard that What the pressures continue be based mentioned, to therefore similar world. offsets in and will I going David same we to I you as we're of seeing what would to around pressures the commodity exist a broad is that core the driver market focus think on.

we've taken months. In the U.S., also have which Eastern Latin markets. European and over Central cumulatively we've and announced in high taken and we've pricing, digits the America announced of pricing pricing XX terms past We've referenced, pricing you single and mentioned that in in

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Our line will Kevin of Jefferies. question come from with the Grundy next

morning, Good of portfolio back to everyone. And thanks. Broader question, David and just pull Jon. Great, congratulations kind little a to bit.

around So priorities relates growth. and greatest profitable see really where you beyond strategic specifically accelerate opportunities XXXX, and it to fiscal the

has David, you So, there's to understanding investment talked of continuation community. a is strategies Jon general against comments respect that recognition indeed done of sort innovation. productivity This structure, about and the working. among with culture the the that. And sort company just And your to going be execution think, I what

clearly the is your to to strategy prioritize I as areas said, profitability. perspective categories would that's accelerate but geographies, where you. how like you to across you cost the your opportunity your the look greatest It get results. intend your and Jon, those? And being that a Thank on structure, You working, look market and and the at share maximize see growth momentum you

give now comment to I'll turn it Yes, and Jon. I'll

many but it our in here the It's largest are there First, right market. opportunities, starts U.S.

growth that market. we drives growth. I illustrated the have U.S. best create growth think U.S. And don't it's We job – the the declared have by It's markets. markets a that aren't to years is any the innovation several ago, We our

by and and the we've driven communication, and X% good two just to and the last innovation X% averaging health are to in high strategy certainly, moved been in way. singles. it to superiority we've has the mid And executed brought We very the being years, a singles

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the turn the starts we've and that's value the worked believe it I working. he's is to evaluate acquisitions And see beauty it as the growth thinking together have Again, creations these sector on acquisitions and and the an enterprise with most growth they is focus key or of market markets future. a leaders bolt-on business whether continuing aligned You've important, been then delivering helpful. right strategy. has comments seeing each I'll care interesting remains to that that core the in each bolt-on driving opportunity to But and the Jon The some about And markets, well. seen about in offer the the is responsibility though be would business. to any that how acquisitions core and core category. smart of

when occurring view decided those from Similarly, And that, people and standpoint, me believe that in, geographic focused we've before within would significant talk you've the strengthened And to like, all there's have that as mature that across we've described, that's exists to on progress businesses. value. results of really I I they a firmly broad our the you're them. have potential for what example, seeing Andre growth and as portfolio. that about to play grow very markets categories Kevin, create heard this opportunity each

the in results U.S. the seen You've

is look If U.S. at on levels. you U.S., the development outside of XX% average of category

continue probably that develop opportunity enterprise future progress these in the increasing of little significant to focus we a And for the kind those held what of team years us. But about profitability in last there businesses. couple made markets structural concerned dramatically the significant of the has the were historically, way we grow and felt while increased markets, to across markets geographies to for bit consumption. categories there's So,

one exited will accretive very So, they advantage We with over of and do in we country the in are last income XXX and losing any value enterprise profitable investment markets that population can on the markets countries so a way. well growth take year those grade, occur and money.

bottom the So, the majority are topline contributing and positively company's to line.

growth I in double the But our the value global stepping we to don't any forward, mentioned, backhand as want each we've continue really question. then we strategy creation and I broadly that opportunities for have all So, across times, geography. it in on the believe way and to back. And down categories of a executing becomes that Andre about and number not that of will do talked

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

three margin get ask of the roughly in for headwinds commodity EBIT about thoughts expansion of points is Wanted Thanks. about XXXX. years. comments math or we've And cost sustainability that if right recent the so I morning to everybody. input my seen on

broader like guess, saying you that's sounds picture I a So, are XXXX base.

household are can maybe you in just You guess, that. world. in And about thinking obviously a could talk maybe think as the time bit – looking et cetera. you over normalized strongest of of then rate where segments a a you or about from bit how it's I fabric little holistically expansion drilling well, expand come a the products, at baby, most whether has household care, a or

of, can that? you kind further about do is And sustainable margins? there broadly, how you. how to just, said, Thank I improve? So are thinking you What as

David we explained very explained think, are I with and we’re So, pleased the in. operating as categories Jon

opportunity. offer all growth continued they think I

about for premium into in of either trading have you profit penny the about mentioned propositions innovation growing think you David market us. will with if profitability the think that consumers If via terms examples superior earlier, up

use household enhancer every penetration XX% you, the load. If XX% fabric for is liquid only of with those U.S. fabric enhancers, in example, only households and

growth, all So, numbers focus even good provide we’ll key another propositions there's and that sheet for bottom and across Productivity are to all balance And those think portfolio, line. and accretive is P&L. you continue those. Those runway. lever the to beats they tons lower. the about future margins are accretive of enormous a When [ph], has source runway across to still top on both

in growth as continues as portfolio in we And go-to-market in chain logistics, and a continue source source to profitability, of about cost also synchronization. our add, go-to-market terms creates I next every would our then to cost reflected supply deliver, So, for terms so. spend to guidance even also, new We but innovation in to able future expansion, specifically usage up, significant opportunity do from. to a year. leavers and be a of that But can And believe go-to-market feel we to enough we ability trade of basically from significant that productivity. in media Our optimize the have S confident we is bring which with there's advertising spend headwinds, talked curve do

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continue the margin will that, focus So that to as issues with associated many the it. Having metric, emphasis. said be and a has

is owners. What matters most keep share to, and grow I sure to in on that Andre we make profitability. margin and And what put overall I to got we've bank, return referred profit firmly margin work we penny profit The first which eyes can't that as to being, topline. a the can't our is

Teixeira will line the of JPMorgan. question with Andrea come Next from

billion core launch transportation costs behind fall will for fiscal given money levels, that is follow-up you the ground Beauty David. have seems on here's clarification innovation are because you on embedding Good to And morning. congrats wide EPS Baby it And Chevalier. range you have at a was and but question that skincare to comments that particular, you stabilize, to putting a or now that and pressures headwind in Pure for are all and this and thanks improvement Care. Olay? baby, a of conservatively a understandably question gave? Jon Japan terms be assumed still for for these lagging? and And on in the you good What leadership. And congrats for will most commodities XXXX, And or I recently, fiscal your of you in XXXX both expecting recovering of more John SK-II David, China cost are decline, Pampers for Pampers linger $X.X your

are Let few couple with those. me questions a of There quite start a there.

to have you So, if each me don't we one. help answer

year, hard a retail, I because well was First, stopping I'm travel a specifically just if take But able you up XX%. business example, it digits last Asia. very amazingly And as business SK-II in was business actually channel. virtually would the the very, team SK-II. expected an Beauty you of mentioned and to very huge it's up pleased certainly to have pivoted hit the and double get grow

the consumption not then travel Heinemann SK-II that actually the that because making to in the province, is job, and a in duty-free area home healthy So, and win. happen happened in and communication they did available And sure really retail continues to had the run nice there brand both market. nicely the was innovation was did

travel anytime I that and the be resume, at a It the you business and we're up is strong business. beauty dependent year – year healthy, to is your it to I not it like be can on good help broadly Skin a Care it's going expect we're last SK-II will while. Personal news if take So, overall when know that. could the already, opens strong as a guess, But growth looks don't and soon. the had seeing retail when More

the So, that we've already feel mentioned. next good will year very business. the grows strong on How again again many it factors be of dependent about I

innovation about. While the launching that there's good Skin Personal launched will Care, very and I Hair has feel headwinds, and both meaningful cost be Care

helpful. comments strong else had be the would a Care, and will of years come. the earlier, and to what about top line, businesses good innovation both made those. The So, committed are Baby I'm coming, so sure number very bottom category. continue and I we I on Yes, feel to not

part it XX%. Certainly, We the percent superiority you that market XX% has improvement multi-year program. are in of the from on hit innovation to see and

And also the We allows that of some to consumers share, challenges recognize that this It's move markets, create a And on grow strong did growth year. for to many that in important significantly. to high premiumization birthright. value. these will critically value grow offset aware strong the still Baby up mini that And us is And Care work improvement. in the and the areas. of continue well you're and very the we year, category, create

has me And So, all is Baby meaningful especially the these momentum to and businesses very Care business accelerating. Beauty have good upside.

I So, both. feel good about

And Andrea, to answer are commodity a the exposure, we your forecasting question exposure spot. and freight on

the year. will sustain assume spot we throughout So, prices

that these pressures within given. of don't an commodity we've easing So, expect the we guidance

Okay.

with will question Chris Next from Carey Wells be Securities. Fargo

good Hi, morning.

it So keep just two specific questions. I'll brief.

late if on So, where conscious Have cyclical you well. fiscal on a corner just volume on we in recovery is I'm by the on sits volume. safe up be while release Grooming, recovery return to there the just it geography about of priced the or to but pricing here? much. I business talks think for on volume? that's helpful. Thanks this press as assume, year, be in Any would then office. the time first price driven some helpful? clarification curve, would business? perspective in also with a been and and could turned any Any by pricing one there So, more not it's just perspective so be SK-II, in follow-up premiumization, And quick Is noticed that the not

very and pricing. me actually the volume specific and It's give balanced But can we let one take then numbers.

strong on and mid-single First, They the double digit grew very the Grooming, a on year. had on Grooming bottom. digits top

these no with pulsed going and shave growth call Grooming me truly think in future, we're the like male give business. you longer as intense share what And whether shave, the of me, making contributed a team new business, I as dry outside across which wet all has think areas, growth. good which as for new I those very people confidence grew to in almost which is wet the the done, will of appliances. to return a benefit light they shaved, was very And category. it shave, those that well. the appliance, all many of working progress, rightfully segment and strong the growing We're area, We're home, important very every also shave, the strong Importantly, female segments we to said, IPL,

We innovation which Gillette, King helps have come C. hair. with on people facial

mid broader it's top singles bottom. So, to forms segments. different those double-digit portfolio, it's a And and leading and innovation across all

Grooming. the consumer-driven. innovation-driven, continue strongest should it's that's reason So year And we've had many, because in many strong, the in years is

David said mentioned And SK-II, pricing taken right. on mid-single. XX% very but certainly strong four. for what Growth David for is quarter is XX% as the The year, fiscal was

consumption by the to big volume as a non, the shifted a far it retail team reduction. offset component high is part of to So, there which is significant into travel

on growth driven. mix again, price is So volume SK-II both and

the Your next Peter with of question UBS. be will line from Grom

want offer John, I as and David And well. my everyone. morning, good Hey, to congratulations

the So, momentum I see mean And to growth guess is performance, from can I data about just we I quarterly ask impressive. business in and very the the what and here. wanted

expect just competitors I that. like Thanks. room out-performance So, because how do are when about similar side, you be lot share record mean mean, innovate the you level health continue? this with the really here comments to your But would any from of think the very playbook of helpful. on So I of relative peers, on brand on have congrats a And really share I in as more well? attempting the like your implementing much superiority of to a know the mentioned you do you magnitude out-performance is strong. versus growth

what are performance. said, the much competitor just strong best say out the and is the which superiority brands are our brand, country. the in too strength speculate the relative each won't I can you metrics really each I What on measures to are of think relative I we use, important, in

and it the extend have. to So, advantage us maintain try pushes to we

now and see year. strong three growth respect for for Europe full Latin North of years share what Europe, in America. you're America, both we and in our competitors. Now But those in we And happens in have growth been America has have And three markets years. we'll very for right this sustained next that if North

And as focus So, strong well. markets. have performing the the are markets very mentioned, John in we progress enterprise very

in growth We are a very, environment. mid difficult very digit with double singles

to day. me it least every real, at you other positioned. is thing well So very the We're earn that confidence. have But gives

competitors what lost those I've confidence the refocusing so, it. investments. it's And that and continue. go deliver. and understand their to based But come our And clear And it's will on our job got that's are that back teams three share years, they're innovations accountable to our last that we’ll with very earn

only many And our this is important How gained, talked And how just in intent share business discussion falls a driver that's of to that about how a time the our math taking share gain, we we're growth. morning and excuse this that reminder, Andre question. The create you times to But Dave the not that market a growth. very at as disproportionate notion we things. me. look answer from that be has share of and it's matter competitors, out is in of

expanding shouldn't do job expanding growth reason is that well, pie, no constantly number constantly the that be to if And sustainable. households we serve. be Our the that of there's we

All Securities. Chappell right, go next, Truist with we’ll to Bill

But these Good to David types I'm more Thanks. says deserved. retirement step morning. not one take of a just the typically congratulations on who want calls. I couldn't be

we and call, are, years that Looking on was, the you and integral plus kind where remarkable you investor back decade for sentiment mean, today. where been agree you've think of was, terms six the it's are people how been the And most knowing turnaround. would in I where Mr. in of especially company I ago P&G.

well-deserved. Board everyone so and for applaud And done. the changes, these just So, I I it's making because think well

of be kind goes if permanent or want as with actual investment if a terms levels, the back to as trade levels. promotion trade to dollars to what extent promotion marketing as pricing creep in would is look just shift and really back have pre-pandemic do really the it you So, kind you lead off, coming with never pre-pandemic back to of we if taking it you. appreciated. of into understand you. promotion, question, this to Thank on pandemics are was would and on think of kind it's starting not see dropped made and where thoughts back that of And expect innovation kind we've change, take kind kind where trade back to full there Any a you moving of of you

just So, couple offer thoughts. I a of

kind I and total the to very The credit for comments organization on you the deserves thank But of First, much agreeing John. on ton a comments words. me team. leadership and appreciate your

consumers shelf a brands the trade with said, that terms by partnered We that grows, market do helps market creates partners arranged them world. interest rewarded. programs best use. of I retail and to and innovation most success be that physical way we've promotion, but is that best they retail margin the and the the worked that In bring is sort shelf, making it, or find the we best the to And like with market, with it's play to things margin. a in that plans. you done virtual growing we business their apt growth certainly believe, can grow us build do our our and walls in ones around their as partners grows And they're and they of build there's get helped

I smart was continue with see that have create finding it very to I in it very retailers they base, expect as the go we interested we the the spending. way what do all ways an costs, in well are a that commodity value. So, will trade they find same back to many pressures wide before? Certainly, need think are certainly will to to open. ways as low we we believe increase I from Do with eyes our objective. and

I'm in some market. creating the hopeful we'll that is promotion value So, strategy for see thoughtful change that more

to in few around add saw three, but still statements a back XX%, on quarter four XX%. sold which line promotions, in to U.S. then it's And Yes. we below which was with pre-pandemic deals trade the levels, numbers David's quarter to volumes was

So, four. we're level quarter back certainly a getting normalized to more in

with Consumer right. come final will the Edge. Feeney line Jonathan And of from your All question

on of much. ForEx A gave weeks really one, us my very with benefits, maybe little more and a a discussions please. and then shipping, lot quick a And seeing the largely add mentality anticipated? with lot a of me have it takeaway, better The certain of other does unprecedented hedging follow-up a but of there one does that's two in current retailers U.S. is involved around. quick let not the about ways. both little And leaders matching more cuts And bit headwinds certain channels up traffic, it guidance think cost David, is that a only or U.S. we've that's and all inventory. had retailer over Thanks little point you one, Jon better. the congratulations, question, a inventory I of maybe known maybe second, seems Board, past And staples one are retailers, the taking in more include but consumer had stuck then volume the measured places. And state not in on bit the foot

say stand What that focused how a think guidance how but question, your XXXX? your I'd plays big have to is, appreciate markets your and for So, plays in? are say I where you into you. say you where that your retailer thoughts that to anything markets, inventories, that about know and that, there's lot you Thank could you it. about

about of focus focus an shoppers. desire a is and The it our to think very retailers’ lens hedging do the think are inventory don't a The that's much about second. shelf I'll on on supply. Andre. With space amount Andre part the can of comments as that maintain offer satisfaction those on I of I apply. our fertile So, it increased let their through a question that's dependability focus. the just small about and maintain often of place I so to way really think that to for with not bill, hedging inventory through the regard There's And approach business, but being rewarded us ensure increased really a And manufacturers to supply the retail partners. we how assurance

is to P&G. we've short $X.X communicated billion the net that answers that So, yes, impact the

Good, thank much. you very

and got continue strong we and call. for strong very today. that and got to We value support has a We've think for our concludes your aggressively P&G organization, team results the Thank you shareholders. momentum. I will work your strong comments much leadership, leadership your deliver engagement. appreciate to all and

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

now day. may Have a disconnect. You great