The Procter & Gamble Company (PG) 20 Apr 222022 Q3 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 Financial Andre Officer, call P&G's Chief Schulten. turn will the over

morning, Good everyone.

Joining the Relations. are call Jon Chief President and Investor me Officer; Vice and President, on Executive John today Moeller, Chevalier, Senior

XX%. organic still line to Care price market. growth prepared category grew Care Hair XX%; up up of markets Mix up period were increasing up were grew strong sales basis, was to US are focus up These base growth Health up Starting points seven Middle more than XX%. singles. US grew in X%. enterprise categories growth the significant Grooming to comp that X%, Africa quarter. increases results Care remarks grounded XX%; the categories began the few Asia and X double quarter, in sales growth and markets brief your sales soften COVID-driven straight X%. enterprise and Care questions. Care organic keep to continued XX% a conditions digits. geographic up markets grew sales XX% China March our Care in X% quarter. markets, digits. held Fabric the Care organic across X turn the and each six down lockdowns. or Personal share of sales quarter. strong On due for stack added Skin XX product X Greater the Europe the category Focus In In in contributed singles This in will growing better. strength. added sequential We country were highlights grew grew broad-based company East singles. strong top of XX to and increased Oral Europe regions, two-year and America, on organic Global then points reach grew period. on market Personal sales XX basis cost markets, XX the and Baby was sales up Market high share for were XX%. XX%. digits with top Care headwinds. high Home mid-single a points. Asia up quarter Volume combinations Pacific, and growth. across low of grew geographies Organic Broad-based aggregate and progress up mid-single XX%. earnings Feminine additional Family March or low-teens. and grew versus and Care Each a the as another was Focus organic and growth quarter. of Pricing with regions points sales in face Latin

versus same Our in market share share in nearly up value compete X superiority year. to quarter P&G strategy continues value categories we in this growth quarter. point which X% US continued turn, market grew and All P&G. growth the to channel drive grow, strong last for

the Importantly, this Consumers globally. the US grew to XX out broad-based. three, P&G share past continue categories of prefer and the and period growth value. Nine brands, product is in performance XX-month share six recognizing and over superior

On $X.XX, increased On per XX%. the a EPS up neutral X% share were the bottom core core line, year. basis, versus currency earnings prior

in partially impacts of neutral Pricing margin hit and value P&G XXX leverage. Advertising basis offset due tiers. sales Core week, combined XXX was a we point about repurchase. income of and XXX share form percentage cash dividend. was line cash the points. due mainly was We XX pack operating return margin offerings commodity to headwinds. operating Russia returned share. dividend flow results. productivity consecutive estimate many XXXnd Free product inventories helped EPS basis has a billion Ukraine, Within reliable XXX $X.X top as basis of on strong down approximately and as basis improvements results, increase dividends steady, XXX communicate owners, points. basis core sales gross gross were points. of points, investments freight SG&A mix XX XX% earned to and neutral $X.X receivables Currency negative headwind, increased and was with currency Productivity is impact. strong the Core in superiority the margins. share points year margin basis reinforcing quarter. were point P&G XXX points margin the gross points cash decreased billion per to across decreased our decreased investment. to and P&G Higher impact announced basis we X% a rely dividend, $X.XX to increased savings XXth of the strong margin basis and gross annual cost paid price a Last shareowners, XXX our remain size $X.X This their from in consecutive we and productivity increase to billion the as a to of commitment continue basis to whom Mix

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to Moving strategy. on

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expect the costs seen challenges material the over time. Freight million and made now and However, positioned type the strategies continued on every in after-tax of headwind we costs diesel headwind fiscal we've we in $X.X a have the we've cost prices, manage have cost us update, last gas. fiscal increase. investments well 'XX. transportation Based excellence our a in commodity on 'XX. nearly and freight $XXX increases spot in after-tax continued we've be natural use We these to chosen, execution to in and current to we now think Since estimate million focus through

us, for million our Foreign exchange rate has now a to expect be the $XXX against fiscal We headwind FX guidance. further earnings since year. last to also moved after-tax

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in price You categories. Baby Feminine may Care recall, it Care increases and we announced when year the ago, was one

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monitoring We closely trends for are signs consumption of changes.

elasticities Demand best-performing, our far, trends. for market been our or as better expectations. our offerings strong share in premium-priced remain do So than have line

since of earnings commodities, On fourth X%. expect in at start we the bottom we impact this the growth low has maintaining and in range impact exchange additional costs share the cost an given from at fiscal challenges X% Within of freight per facing, we're end to of and increased X%. and of be operations per significantly negative the higher But the range to we're the line, Russia. The share guidance, $X.XX foreign expect year. now the from Ukraine limited quarter core

a a January, core On XX% to headwinds $X.X earnings. to $X.X headwind the This after-tax basis, are in Our $X.XX assumed an $X.XX a initial XXXX billion approximately a share. guidance $X.X headwind in in now tax billion about to July billion or increased October outlook, after our or now fiscal billion EPS $X.X share EPS.

cost of impact the our majority held negative we've innovation programs. incremental of face note, in increase year, with and Of going-in range, So in share advertising EPS maintained of investment per since start impact funded the fully the in $X.XX we've strong an and $XXX the fourth million will exchange cost product and recent of superiority new quarter. us foreign the headwinds the

the cash of flow XX% continue expect to free We adjusted productivity for year.

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driving to be investments, outlined in productivity pressures toward committed near-term and the questions. times. With challenges our take maintain top remain with improvements We and and happy strategy volatility input opportunities fund bottom to mitigate step business. to We will cost your we'll balanced line and that, growth. to growth we've to market our continue We'll forward many cost through fully remain manage invested the

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

to commented morning. kind much you good But I curious there the on to that happening Andre, what show just pricing and products, not your way feels the prevalent becoming consumers in numbers was and that trade much of curious P&G down, more inevitability doing need everything just anything, so in to they Thanks an Great. for of elasticity. like revenue but is isn't sensitive quarter's that's this that surely really for what, prepare across if is buy. just

a So become more anything to doing think when may to proactively help Thanks. that guys substitution or you or of are mitigate down trade ahead factor?

by so data Lauren. observed. have eyes for watch morning, price at have But to relative point, XX% XX% data prepare fronts. historical on continue we indicated. about That's this of to and say, we consumer to Yeah, in looking terms favorable are we forward, in we've said, historic better versus would as the Sure, Elasticities wide see elasticities you open what our And as behavior. multiple good. change certainly we any elasticities

the think use, Even hygiene-focused, in daily is The us up, are categories protection. see And that the the I first every We've into category to we to portfolio of which invest categories consistently. truly probably allows in though continuous drive see and share we pressures, discretionary and moved to health- cost superiority play invest are you to more superiority performance to trade where level us protection allows is consumers here the in product rewarding out numbers with doing for consumers. into That we've of us to choice. superiority directly the continue trade-in chosen example, superiority, superiority, That are proposition. for we and which brand continue in value every date. continued also translate in. best

So that's I the intervention second describe. would

we use One water, use than put remarks. value automatic it's that with true -- Ariel compromise So that consumer without to performance. drop latest dishes dishwasher running on any dishwasher the Dawn innovation use cleaning buster, the squeeze the allows to myth dishes, more last the easy like even superiority stating water our cold mentioned other every efficient that more eight wash claims ADW, under the on proactively There are in Ariel we cold and are example into is on the innovations product prepared Tide I advertising. tech, the the have in turning that

understand by P&G that plays into we're easily more those is examples that using the So to propositions. value value consumers are have turning coming

and every price to P&G have they constrained, ensure brands levels budget built the brand across they offerings in If intentionally have they feel trade for brand offerings. consumers. can that within we are We

offerings, with at in choice the we portfolio. diaper, Pampers Swaddlers at all and $X.XX. on at offer a diaper, ladders $X.XX consumer These multiple at Luvs So starting P&G within categories have exist Pure $X.XX Dry diapers, Baby the a $X.XX a about price and

which protecting offering. value of for points, price pricing key our are price is execution, each points We also, part key

channels built outlays we choose would discounters And their are at last on cash consumers that to budget of as channel channels. in channels across So distribution different all includes for dollar available consumers they cash example. intentionally the in The hard like invested shop the that moment all more can that shopping. based like U.S., migrate element, and the in Europe, constrained

serve So to where across to out. building those channels be last want they would is I the able call the distribution to consumer element shop

leave us better to consumer ever position come seeing those not been through. of with more deal we're potential that that all So, is constrained. we've in than To-date, budget the a

line the from comes of question Bryan of with Spillane America. next Your Bank

Hey, taking good thanks question. morning the everybody, for and

is just I stabilizing question of margins. I look gross covered the if we half gross guess so the my mix at the about right, So about guess, productivity the to inflation, margins and pricing the And in the, of quarter, you out particular. take path effect if

look And remarks, prepared we're in a going you've talked -- bit gross lot about little going that productivity. are I the what I that know to there we margins? so, are be a Will a more should step-up modeling forward, levers in guess, as to incremental pricing? stabilize the to, that

to quarters are kind the what levers trying we of be next Just of couple gross as the margins. forward understand over on look going to

Bryan. Thanks. Morning, Yes.

right. You're

increase XX%, quarter bigger quarter at In exchange productivity commodity, quarters, gross covered, and In believe, this pricing Over you the impact. XX%. a XX%. T&W past covered three one, of foreign and we're portion and two, now the we I to continue see margin

covered time. So you portion see being bigger a over

are -- effects. We those

We all of role. will play to continue impact increases, exchange recover drive three significant cost will to levers foreign a T&W. dollar continue Productivity the commodity and to

muscle will productivity. runway the more resources goods time, And us allow over stabilizes And here and as reinvest that the in supply our productivity a line situation here time savings. lot sequentially, strengthen to hopefully, cost We over next available have on we of quarters. more have to few left of

to continue drive will We innovation.

prioritized to We consumers, this these can time enables benign relatively superior line and which our value pricing and continue have to innovation offer point to in resource elasticities us our see at to that allocation take in we ensure also time.

invest have through. market, in flow very us With a see try lot by by are to we the innovation. announced to pricing take at yet to granular we continue you increases innovation, price will So of brand. level A that

So top to you incremental recovery future. the to margin the gross over an will line see contribution and

announced, support we more faster. margin the full rushing in evaluate time superiority, more to is and we It And The have take to important other increase support time to support cost before, opportunities over to the will impact. gross it's as recover pricing execute price recover take already dollar way pricing. to us to carefully impact will do model, business the and and innovation, this versus right said

should won't progress. expect sequential specific I you give So, time line. a you

We to three, and innovation will pricing. all continue productivity, use

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

the the was by continued thoughts I And And lockdowns April, was last business any much Thanks. in on detail get hoping How do performance a with maybe think quarter more morning. a going us is bit to forward? category the you more forward can you how of versus and granularity Good some the on there? give positioned product the of lockdowns China. on bit in the going China year? comp related and specifically decline to

of area morning. down Thanks, now supply in the time. the Shanghai had the One, have Yes. side, manufacturer. Those were Dara. shut two contract Good for we the an extended plants and us. two lockdowns China China, Look, for period impacts obviously on in

consumers' of constrained to ability inability business Even is a impacting estimates terms consumers to due to significant think, Wall Street stores, we're in much consumer XX%, offset to demand. of online department as somehow had impact significantly And the I could. stores. is reach to deliver. impact grocery plans the seeing impacted that activate our shopping as we That we production About was continuity are So by our stores, lockdown. of certainly

impact read So the through we in of lockdowns. certainly value China. see market our was terms size a flat March significant in three Latest of months past from over in categories

With April difficulties the be would we in expect to the the negative. to and continued market, lockdown flat

In detail, China. is terms to of category Beauty significantly exposed

bigger is of the is market Beauty and in Beauty SK-II effects to to business channel the pressure part -- a in know, of China. be continues effect under you As China. due

which So not longer-term over market strong doubles that in years, has dynamic to been historical very results, believe on China. The the China has be changed. based you for on low as know, extremely high story the singles, continues past three, four grown attractive us. We we've market a

mid-single, categories high return to expect We singles growth. to

a supply very have organization, organization strong China. in very We very a strong R&D chain, a strong

So capture we to in the continue to we the invest remain will and confident, growth future.

from question next Evercore. will the Ottenstein come of with line Rob Our

you, Thank very Great. much.

Just I of X% the what at but end throughout the think little a what in rate you at was Can of the point dig the and average, your of clarification quarter consumer. that was. going run I'd a And the state given run pricing like just to on a to get you of on pricing the start the bit of quarter, us off. more the sense in rate kind like were was year? to tell then

before conditions to XX% were elasticities the at recent had conditions, least that mentioned history better than in what anybody's these current of has memory. XX% current But we've shown. You kind never

consumer your elasticities consumer better? sense telling was it little contributed research? Is the the of unemployment? internal it I Thank because why superiority? own savings? get has Is are bit on Just your are of your wondering low better you to about your to trying the So read maybe a panels rates much of increased you. How from what

Thanks, Okay. Robert.

of five in to run contribution terms the we point have average, for top rate pricing So on line. quarter, a

to said, price through. the as continue increase more pricing we As flow will increases of

I the contribution. a would see about line would from top to I So X% say exiting rate run quarter, pricing

in flow that and pricing quarter better elasticities see to we has the product announced, that through trade performance. in been will So And you flow into the of a propositions broadly we will April that better price offer remain more offer within up the for portfolio favorable. higher see consumers, four. and value that through Pricing

So we margin, margin. effect but slightly – explains penny higher in with that sales see higher mix see the being where lower chosen gross you items that and gross unit profit,

trading unit of So body dose in are detergent. Dry detergents Consumers instead into liquid of diapers. consumers into lotions single instead are Baby trading

we So of benefits and increases execution proposition and is trial choose we have not trading the they performance of the basis, during resiliency rates packaging, product good value, communication retail and they carefully from looking We the see the cash an that Even outlay higher allow into they that and relative phases, portion that of though the clear higher-performing of superiority clear see to that are even early relevance are reaffirming of COVID good They've cash ready brand reason provide. consumers demand the the relevancy superior product of that. the might P&G. product experienced traded that the feel They've is they consumers why the value believe propositions. up we've our categories, We've of it. benefit seen where our the consumers our within crafted trading of efficacy of price outlay be and brand believe, a for. higher, by period – driven The the the product we portfolio to in into gain repeat performance or And communication propositions. choose the to the of had extensive consumers the down. seen afford our

that. at I'll So it leave

Jon. this Hey, Robert, is

situation, pieces support -- a rapidly look of it's evolving And year this, three, perspective the points tomorrow. and a if other change you data couple challenge a for at mentioned of distribution market to Just you They earlier XX comments Andre's year a ago of course, for on with But this and if improve more could three, to in mentioned. you below you on Europe obviously six and as worked the shop. see shares months. as of to within below trade you in if XX consumers months. look for proxy we're internals US label Also, our channels, a past our a private six the they the consumer down, past budget income across that resilience, at where them in of channels Andre for remain remain inclined shares statement we've look ago and are

consistent entirely share growth points, growth share Our those retail in of banners. our are some channels, highest his across with

to focus as the superiority today, on Again, choice sit of here holding very example, up. executions the dollar in where have we've drives granular it monitor across is closely. in looks performance growth. in vectors this we'll the moves channel, and pricing So deliver to the categories for very portfolio Things be we like performance tomorrow. share aspect change the But significant use and made daily our brand can

All right.

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

My the to I environment. unpack Great. this up the everyone. strength a the growth your growth rates, versus favorable I'm environment. understanding sales the despite better. this. plan. of lot Demand coming to the remains relates guess trying morning, the in clearly of covered quarter and question organic areas favorability of XX% I'm Trade just volatility category the And of We've elasticity, Thanks. Good the at angle, from

call. with trade points globally, be You on share, And inventory basis of outstripped in supply we which of I'm then very degree quarters. not gain XX some recent there on than would up has your market rebalancing plan. touched the great, sure I'm because less continue degree the different certain maybe this gain to demand haven't is market is share that though,

categories across you the any with environment, the change material the our any categories going on you. thinking your been And across about going this I'm category comments in and geographies look and that be we're view rates what change as look forward, there you where you for understand based forecast currently participate in? the material you're of your to So Thank So helpful. volatility growth seeing? your there has would

you. Morning, Kevin. Thank

growth up are in category So in holding X%. is category we the Fiscal well. rates compete categories growth year-to-date, global

is X%. Category growth focus markets expect around in We to Category continue that is enterprise markets in growth at X%. X%.

X% fairly the markets XX Enterprise XX X%. It's been consistent. X% have markets on three, and strong Focus growing at a have X% three, it's and between gone level. global past So six past six months. a over and

of in to reading, most anything, growth growth most category growth we growth. P&G and via strengthening also We're innovation category share we've leading that the see category innovation and and leading growth. driving the the contributing fact participating in of markets we're disproportionately thereby that competing via pleased in if seen recent with via and category So in,

grow our and strategy growth of is market the P&G seeing growth, we via via these our investment overall, growth of that slight shared So benefiting driving And in drive via about periods acceleration across model growth. good innovation. feel driving our to level want by category is certainly only and growth. superiority with growth level's in the contributing then participating sustainably line way that growth at to the because we and market We're

And would second-largest those, of Ukraine. Kevin, demand quarter time said. they as about, against. is offer or within about we're the least to over to down is our reverse about our what the upside And in and additional Yes. U.S. I from haven't top that One some We've the exactly situation the singles. been fully catch is look all Russia strategy. we've racing themselves. happen market, it you doesn't talked several them we thing largest not negatives Andre line market, growth the quarter, also our are at there do what except demand. last standpoint, we're hopefully, China, that's ourselves, positively just which still several of something working trying at unfortunate that Market We supplying to talked through But challenges a us. talked if impact market's we're to We've even need say, the that indirectly, up mid with in that

the Tong comes from question Olivia next Raymond Your James. with of line

you. Thank Great.

price potentially there. Just Care, potentially acute some You where you about Could you. your Thank -- pricing bit across a think to what you the rounds categories category, see coming capacity just bit amongst talk and of of a bit in constraints mentioned little could you a little future back what decision players? -- label you're talk supply the further? Oral Home private categories you Can Care. more where consider could on move how Care, Feminine you particularly about a increases about starting are as follow-up and you little potentially about most

All at for raw constraints, with supplier is is to places in is constraints materials stretch, Getting materials in to and packed and directly, are Labor for difficult being present ship get to availability source you we to volatile. sufficient U.S., can only supply them be to a that the for actually in bucket start raw still maybe our the quantities. to then Morning, right. to getting example, product level, difficult. Olivia. retailers availability Being not Supply global the need truck P&G more every but able our potential think and And through. out continues base. highly costly finished by to able certainly

the of across it's supply So all aspects chain.

making progress. are We

at on-shelf report are as at stable even continues we levels XX%, Our and growing year-to-date. to QX these happy grow in we at be availability around to we're fiscal XX% that

more the have supply managed the over coming We more off two months. US and next in categories

pricing, to Heavy is that call There making on second will I demand in -- the years. in of retail investments progress. most six increased But two are will over capacity we Those our better -- service seen. America any the to partners. ensure over availability expect and in right take partners we approach it, to hold capacity categories. with North on-shelf managed three to the these the be with of there sufficient way to out up keep we've months, in markets specifically this in in supply. of next retail the situation our moving carefully to to no is have next, US So formula-based to of no and part the question your pricing that -- we a And best be best working investment ensure do we're European ensure terms our with we

number the the market. consumer watching and one, to behavior carefully we're So strength of our superiority relative

in are we Care, transportation pressures We our where we exchange Care will in and categories, from Care, headwinds seeing. you noticed & foreign that Baby impacts. the have Fabric cost that's are and Home also biggest Family in impact in paper see at increases, but looking that categories Care the warehouse, cost in commodity Fem our cost And

So feel three time innovation the recover productivity and those we've it are as the between we balance versus the then bigger. point elements superiority, it via impacts pricing is becomes we There leveraging that or in a is this available, right matter talked to and right do at of, have do before.

pressures. So any say I Care to and cost there's approach. certainly, are the Fabric categories wouldn't But exposed formulaic the paper & Home most

elements needs So, you the to to categories aggressively in three maybe of anything Jon, combination than in others. more want those out play all add? some

think you've voice we something Olivia, of has of granularity first terms covered again. increases permissible. And legally can't any That's provide already would than great hear And obviously, all, -- I price it’s it. price more No, your to occur. where future Andre that's in not

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

more though on loyalty, label brand or there to about paper, start dead even fabric. label Those maybe just start private to look horse, not just the share maybe maybe a with, bit to to at yet. not at in follow up private I a that P&L, categories less with, are gaining look as may categories, is just where but you more guess competition, little I be laundry think beat those for I the mean, I priority point,

I'm example, of if And gross you with taking you're adopting priority emerging commodity those is so as talked some the but that you are is to currency in some about margin, Japan, significant preserve prices bigger and offset much much. regard you seeing as offset emerging markets, currency not headwind. it point? or a at you stance really to much markets? haven't currency different a maybe even headwinds? to can this possibly preserve in to headwinds just where in relatedly, market any your differences And Are share to is doing then for And emerging Thanks what elasticity markets, wondering, of so

Okay.

recovery the foreign impact exchange terms on In T&W our dollar priority, time categories. remains commodities, a of and reasonable priority headwinds all across of

consumer, and We combining it margin that way no provides want expansion, over innovation. in do We proposition with certain superior that this period value the provides is to us a to forces of the to we us a consumer return time. a line for gross recover will. There will margin by time to to

margin also Our top reasonable us balanced growth line requires but expansion. model drive to line, bottom

momentum. any in every it continued do in serve for we've the exchange second more maintain possible provides is dealing business being your Nothing reality markets, years. in time, on rate pronounced. pricing way rate so in every right that at we a in return pricing, exchange value we're the will the some way is executed day, there given To report to So in commitment foreign in markets, it's a but with consumer brand elasticities, with question across to can terms to point to of and market consumers been point, foreign dealing every we best different that

example, price price for significant us increases taking seen Argentina. increases, in Turkey, in significant You've

those, know our are they executed. being well forecast how organizations very are those and in baked do The guidance. So to and

point, other one Wendy. just So

progression every get organization question the we the You is that day, – asked continued essentially matters and which these the balance, top asked the the off. get or Andre's point. of we bottom asked is both that We is line out most, And line always by answer to It's question share balanced you of which come do both. and earnings recovery. need or wheels and

of productivity, et to invest combination we'll to momentum through the we we costs commodity continue, So as recover pricing, need top continue cetera. line and in

So that's – both. it's

with RBC from the The right. Nik All of Modi line comes Capital question Markets. next

had morning, engaging because low-income momentum more price during premiumization Good money with I and slant a stimulus to of premium trade-down Yeah. tiers. lot question, extra you just but slowing ask the Thank in a of premiumization different that on you. pandemic, wanted not everyone. to down, the consumers trade necessarily all

do you with is? it So I going Kind on way that's Thank and that strata of think inflation that. how income and observations was you. terms curious on your of to just particular they're manifest food gas the behaving in how

consumers year, seen on consumers seen higher effect into effect gross portfolio brands continue brand trade seen the P&G into the brand sales. we've We've across most categories. and That's it. P&G the seeing not propositions the the trade up up to we're margin mix pandemic. quarter this within look, Nik, you've P&G Every trade throughout the mix and within premium portfolio on morning, positive Good fiscal Yeah.

continue see they see to So the within up portfolio trading P&G portfolio actually we and benefit consumers of premium consumers those P&G within as stay the propositions. higher many the

that for necessarily We an is before, we've As what we're seeing assume happen granted. future. don't will the of indication in we take don't date said that what to

looking consumers see we are well up We for we might to losses reducing, growth. aware end label P&G see, constraints. private continue example, budget at that Where very

within far So even private label market markets not coming back is ability so P&G's those or impacting those grow combinations. category within to

outlay our best choices, constrained Our price other more superiority distribution to budget the we've defense from environment, plays, in across a talked the ladder to through serve that consumer operating portfolio point to cash we're value focus channels. choices,

that control. constrained to even choices. those for come looking we So budget well, more will I That believe, are I that back and elements for consumers us serve

not we in the is me as and products to assumption that to benefits earlier. a -- have mentioned we because something of proactively communicate, the people higher-priced understand some that job Andre it is That need help priced, that. more a lot are higher valid just There of assumption, per mileage costs

All right.

Fargo line question will Carey from come Wells of Chris Securities. with Your next the

if also comment of a those Hi. certainly and but question I business. ask focused, basically the can I innovation. to on XX%, how of much you're particularly recovery have I the the just some long sales is strength a conscious things just term? here business there's legs offensively in more flu, Good to Care you over QX a non-existing bit like categories some morning. that, there's a And where about implied wanted been this that for on organic wonder doing normalization a is wonder from that cold, in Thanks. deceleration but there's one growth puts and impressive. recovery which Health if connected Personal appreciate where I Organic guidance keep baking versus bit or that is you're more other if should we any strength there in mind? two-year stack. you're there's And takes a fiscal dynamic

our But had PHC mask in quarter, by and Chris. was of drove a importantly, was growth is everything going year's than cold, growth, and the cough average versus about on, Vicks, about by else outpace slightly stronger a period. which XXX% season, the for plus X%. season. which example, than that Thanks, America right. point last the stronger North points fabulous stronger season, driven estimation certainly season the out. we XX% as to abnormally Part season that It's low X.X over mandates All able flu share

certainly recovery fleet mid-teens, season nearly are respiratory, point, building XX%. organic and the growing sales but a is up is Digestive within respiratory. of So ahead big season up share. just growth mix also and recovery than The is broader

season of So portfolio the performing is recovery. just the beyond even breadth the

be significant historically. with there. do In sales is of pleased seen would elasticities you And favorable to That's we the four, say fairly to our guidance, we that the return I'll price thing clear. only portfolio I future levels On the continue we've only thing see PHC we not mentioned quarter certainly before, normal I the runway elasticity to to So assume the know. and we rest, price is assume very as results is forecasting, hold. think, let the

with Credit line the of from Suisse. The next will come question Kaumil Gajrawala

gross sequential just to that -- I'd improvement. as general maybe of on margins earlier we margins see Was when a you we'll that like a trough it? get the are XQ, in that over beginning comment from the today comment year is fiscal next time, follow-up on indicating we of expect you margin and are or to start something into gross on see a kind just

committed margin growth gross to time, of pieces. margin gross gross General guidance balanced forecasting comment model. We're not we But over building as many Kaumil. the margin time, or remain part over moving too here,

Got it. Thank you.

Mark Stifel. with of question next The Astrachan

specifically a morning good and Thanks Yes. bit to about wanted I more ask Beauty. everybody.

China more It curious, away discretionary Asia around is Skin I SK-II shift? said versus about some what And negative. trends? could you was volumes guess much to how from into specifically? standpoint more of of categories. effect how you. category there Care do improve transitory share I So much is for How pandemic from it market be much needing how challenges Thank I seems and given just think change your bit a

Yes. We're confident the Mark. very in Thanks, Beauty portfolio.

quarters than sales than portfolio over at profits you value portfolio performance growth. core it's more past the years, the uninterrupted shareholder and $X five five significant billion The the billion, creation this right? just more has of past If over been look XX outstanding, of $X years, grown

portfolio, core China is a headwinds China broader there also Skin the being comes extremely hampered. the portfolio And Care being impact down Care the department of of the those on the but number impacting travel say, certainly temporary. Hair well. and and So see consumption retail shutdown which been of to it online during has closed period and some even as SK-II dynamics COVID China being as and the SK-II the performing that the are impact in stores with you broader on significant business dynamics, we the of one as

in segments over We effects portfolio number additions, past the that We the channels. seen opportunity a a believe acquisitions a the specialty -- have the portfolio in beyond premium announce category. there that's super of focused we you So premium are are growth core few that see. on and us months temporary

acquisitions previous Beauty. Aid First So we've with that proven strategy like

premium portfolio so addition to And restrengthening in build out we the super to segment in core. premium want the the and

But up in very work So and there's address additions that future the Beauty US tucked we're further growth the for super confident premium business, business we to opportunities which the core and strength set and rebuild focused to do in, serve our help on the US. us momentum via consumers channels China in acquisition core to and portfolio targeted the on outside in and and certainly SK-II some in specialty category. premium the

the Peter Grom Next line question of from with comes UBS.

Hi good morning, everyone.

has look few the those that held specifically. performance would trying categories, significant those I'm I you your in categories versus the understand guess of when over normalization how with be compare think curious, a a in you seeing expectations? So what called past have worse release, than out does recent or there in you to at lapping is, been or in would that couple cleaning were some consumption. just years, pandemic-related the anticipated? around growth performance better up are demand is line you I expectations I appliances saw of comments and And your

add points Yes, I wants maybe to here. But Jon can start consumption few is and Peter, up. a then overall holding

consumption As all in X% I up an well. certainly natural, categories that -- mentioned, natural markets, holding in not There some logical markets. but market switches. focus indication are growth, of That's enterprise X% is overall

barbershops So Appliances experienced and as growth when our jobs more Grooming in-house. done we significant that more the has for and were about, the during salons business, in think business example, moved pandemic

that a sees they themselves, so. But appliances So folks portfolio. and decline a Grooming within fact they -- hedge do to that growth. same the need experienced time, incremental satisfied, versus in appliances, the terms growth that people there's job the bought At overall is these can do job natural and of peak the continue once incremental

from the home. of home reopening, and were razors that and people resumed pressure, work more blades as With part So stayed at growth. category under

jobs within spend to component consumers and is to there's So done. I at related, They continue example. a emphasis Within hedge hygiene time that be home. Grooming, for more health on put more think anything

reopening. would tissue continues that time part a continue consumption was a certainly overall, be increased cleaning. on there, and we do focus at balance see from The That's Beauty speak consumption. bit -- supply categories Personal as consumers in-home consumption more household smaller get only XX%. of and categories our our saw little to than from still bit decline. towel effects. to So surface where benefiting But to anything home certainly we and a once more home with unconstrained, used decline benefiting by but health portfolio. more at Paper a to right little of has higher time surface relatively more versus We'll to see Care-related a we saw ends away-from-home But disinfection, categories hygiene benefit part from of up all bath and both more to where the is

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

to challenges you you question, regain you. growth you on potentially China to cold Baby, and the Care. there. US brand Care please But and comps there. was lap Family impressive the had comment that I if and continue those Thank in the hoping, in share franchises. And the you despite Feminine flu start similar can Seems an also to this in

you've So do think made innovation franchises care? other health in is the Thank you. you sustainable still growth the with in

Yeah. Thanks, Andrea.

Baby was launched So is in Care that and in and in America. the by in share innovation Europe North improving both significantly in major driven America market, Europe North

will to on share We build continue that momentum.

that and grow a to launches, via category X will go-to-market same within us position within night reentering the been also an incremental share about build serves execution. and category the think children issues. you that's XX We investment category. it for brand all new to category. -- grow We've has a allowed continue in some X% and some superiority mid-teens the proposition drive America, parts between time, example, and creative enter X% innovation, quiet, When And Baby the at with relevant been the category North to Care communication, relatively X% bed-wetting with in to that segments able new

is Europe us as in our in that Pants build to opportunity trade-up position an pants. share grow well. category allows We to North continue and in a America

flu, Infinity, propositions of the and most both premium terms our most for communication. formula, proposition in pads significantly in and innovating don't investment big more proposition, is the true is superior what for add, said innovation, in growth, to delivering and but cold and share Fem overall adult before. we to premium a Andrea, relevant which in by versus Fem Again, to same jobs Care, I P&G innovation On in success execution communication, biggest Care. seeing broad allows drive Care absorbency. in new driven us So are form The incontinence, example, growth North consumer, significant also be Fem based also product in done America but – comfort growth. unique in we much from pad, retail market ways have

with growth and ahead it strong in the terms of are innovation of We growth, balance Vicks. And of digestive. portfolio share are the we respiratory growing absolute growing the in terms in segment sales be sleep of or

playing we So and the market. significant PHC overall, on our in feel portfolio, out left runway there's it's

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

retailers lot mean, you good give driver's because more US sustainable that overall. expect a a so you the round just of that I are what much. versus credit. to pushback Can maybe discussion we very particular But What about the any been there I that why Thanks. do need looking you seem better? that do Thanks supply, the your at consumer it the It's good of seat? lot relationships allowed second demand continue? that relationships just just around half market, is of there's to And retailer is pricing. really proves hasn't -- how a level are to with good results give me in discussion. significant elasticities color that's this And kind if maybe why simply product, so very pretty series that emerge? of -- of And good the it they're another of year? you're pricing think short and you

discussions has retailers is better Velocity with strength. comes your start, here. a business generally, Consumers propositions. But of are I'll points at for looking Jon if your sure strong. few position I'm from a add to and shelf work

credible and and are that tangible consumers. programs innovation have meaningful You for

and in-store meaningful consumers. programs are retailers that for have You

And came a support all as entered in relatively advertising, true well this P&G both as digital inflation terms we an and commodity mass as ability communicate of the have strong advertising. You from those in in of position hold cycle. things superiority. to

it's continue discussion invest in future given well. potential, guarantee on We the with between the It careful balance growth good always cycle that it to clear, be, retailers and us a innovation. said productivity, reality -- a will innovation that that inflation we're industries. up will doing very very continue. and before, that, Products sets as broad-based will we No which pricing, need for within for shelf, And the about is multiple also pricing.

Yeah.

things. the growing growth. the or we it on own And a commitment of for what years nature dependably end are and has disproportionate other biggest more care and of when market the market in do significant, on able, are deliberate the true, our said, to the offerings. And but over be cases, the but not label And sales to growth. of becomes And of less most of a the part with non-issue, is to at focus competitors need growth care Our and Andre reliably, retail to issue entirely and obviously, their most think also changes partner source a I been that -- a are cases, an costs that's And At be conversation contributor able brands. share a that partners of when increases need that's raise occurred in what doesn't overfocus day, issue, and own that a pricing need discretion, to and several to their And an are less to is. last their change they because be in their so that our opposed as on we our the dialogue about as conversation. the becomes they retail they us. not. being be generally What on they

We contribution dependently have an terms talked market opportunity in about better in important to and working continuing But to serve serving we've our growth we're address supply and changes partners times, That's that them that. retail sustainably to effectively. world. as with several of

All right.

and us other feel please spending John for any I Thank have available be I Chevalier call. with think all call. that the will questions, you time to today. day concludes so if you free

rest know of You a find Have where wonderful the day. us. to

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

day. may great a Have disconnect. You now